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MX LOGIC FINDS NEARLY 100 PERCENT OF SPAM NOT COMPLIANT WITH NEW CAN-SPAM LAW

[January 08, 2004]

MX LOGIC FINDS NEARLY 100 PERCENT OF SPAM NOT COMPLIANT WITH NEW CAN-SPAM LAW

MX Logic, a provider of advanced email protection and security solutions including spam and virus filtering, today announced that more than 99 percent of a recent sample of unsolicited commercial email failed to comply with a new federal anti-spam law -- the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (CAN-SPAM). The law went into effect on Jan. 1, 2004.

MX Logic looked at a random sample of over 1,000 unsolicited commercial emails during the course of a seven day period beginning New Year’s Day and found only three of the messages complied with the CAN-SPAM Act.

“Calling this a high rate of non-compliance would be a gross understatement,” said Scott Chasin, MX Logic’s chief technology officer. "It is no surprise that rogue spammers would fail to comply, but the non-compliant messages we saw appeared to be from all types of companies.”

“There appears to be an unstated, unofficial grace period for companies to comply, but if this high level of illegal spam continues, I think it will be interesting to see how enforcement of the new legislation will unfold,” Chasin predicted. He noted that companies have had little time to digest the new law, signed by President Bush on Dec. 16, 2003, let alone bring their commercial email into line with the legislation.

MX Logic supports the federal law but acknowledges that it must be supplemented with robust technology, industry cooperation and consumer education.

The CAN-SPAM Act creates administrative, civil and criminal tools to help U.S. business and consumers combat spam. Specifically, the law:

? Prohibits sending commercial email containing sexually oriented material unless labeled as such.
? Allows for certain forms of unsolicited commercial email as long as it is clearly marked as an advertisement and allows consumers to unsubscribe from future unsolicited commercial email from the sender.
? Outlaws the use of false email headers or the use of a mail server or open relay to deceive recipients about the origin of a commercial email message.

? Bans the registration of five or more email accounts or two or more domain names with false information and the use of them to send commercial email.
? Allows, but does not require, the FTC to create a "Do-Not-SPAM" registry, much like the recently established and controversial “Do-Not-Call” list.
? Allows the FTC and state attorneys general the ability to vigorously enforce the laws contained in the anti-SPAM legislation.
? Enforces statutory damages of $2 million for violations, tripled to $6 million for intentional violations, and unlimited damages for fraud and abuse.
? Allows the FTC, state attorneys general and Internet providers to sue companies who violate the law.

More than fifty percent of Internet email is spam, viruses and other unwanted content. Last year, industry analysts at Ferris Research estimated that unsolicited email would cost U.S. companies $10 to $13 billion. Spam results in lost productivity, communication bandwidth consumption, increased storage costs, IT resource drain and increased corporate liability.

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