'Spam King' agrees to $7 million settlement

02:38 PM CDT on Wednesday, August 10, 2005

By WALT ZWIRKO / WFAA-TV

Microsoft reached a legal settlement worth $7 million this week. That's really small change to the software giant.

But, as it turns out, it could have a big impact on your in box.

Chances are your e-mail folder is saturated with spam, the generic term for those unwanted solicitations that seek to separate you from the contents of your wallet.

So Microsoft sued a company that had been ranked as the world's third most prolific spammer— OptInRealBig.com.

"E-mail marketing with OptInRealBig allows companies to reach millions nationwide," proclaims a promotional video on the company's Web site. "The number of people who open your e-mail message is tracked by our system in real time."

OptInRealBig claims to send no unwanted e-mail. But after the $7 million "full settlement" with company owner Scott Richter (who was profiled in the book Spam Kings ), Microsoft's top lawyer Brad Smith told me this marks an important milestone in the company's campaign against spam.

"He was sending 38 billion unwanted e-mails a year," Smith said. "So by ensuring that he stops, we'll ensure that consumers see fewer unwanted e-mails in their in box, and—I think more broadly—we send a message that this type of activity really doesn't pay."

Smith said Microsoft worked in concert with law enforcement officials in Texas, New York and other states to crack down on Richter's company, which was allegedly sending messages that violated laws regulating the content of unsolicited e-mail.

Spamhaus—an organization that keeps track of unwanted e-mail—has seen a "massive" decrease in the total volume of spam since Richter came to terms with Microsoft, Smith said.

While denying Microsoft's allegations, Richter said his company has changed its e-mailing practices.

"I think it's too early to declare victory, but we do feel that we're starting to turn the tide against spam," Smith said. "We're confident that by expanding enforcement work further; by continuing to move technology forward; by educating consumers; we can make more progress.

Smith told me that all of the $7 million settlement (after legal costs are deducted, naturally) will be plowed back into the company's anti-spam campaign.

We're optimistic that over the next two years we'll see the volume of spam drop further," Smith said.

Legal actions can only go so far, in my view. The spammers seem to always be one step ahead of the law.

But smarter software can analyze the contents of an e-mail message before you even see it, so you don't have to deal with the consequences.

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