Software entrepreneur Hammad Akbar's high-profile court case sets technology industry ablaze

In the world of tech start-ups, navigating the complexities of a global marketplace can be a daunting task. This was particularly true for Hammad Akbar, a Danish citizen educated in the UK, who found himself in hot water with U.S. authorities after creating a suite of apps for device monitoring.

Akbar's prosecution was a test case for an app classified as 'useful for the surreptitious interception of wire, oral or electronic communication'. The apps, targeted at parents, businesses, and individuals, were intended to provide peace of mind and increased control. However, Akbar's arrest in the U.S. in September 2014 marked the beginning of a downward spiral for the entrepreneur.

Akbar was charged with distributing spyware, a year ago. The U.S. authorities prosecuted him for breaching security legislation, and his servers, all hosted in Virginia, were a significant factor in their decision to prosecute. Domain owner Verisign was told to block access to related domains and deny access to Akbar's team and himself. Amazon was ordered to take down all information and related accounts and remove all links to related domains related to Akbar's app.

The apps were a lucrative business for Akbar, who was on the verge of a multi-million dollar deal with a PLC in Australia when he was arrested. However, the conviction forced him to scrap his business. After months of litigation, Akbar pleaded guilty and was fined $500,000, causing his entire business to collapse.

Akbar left the U.S. feeling shocked, bewildered, and worried about his personal reputation and the state of his business. However, he has since turned over a new leaf. Akbar is concentrating on building a new company, TruConversion, an all-in-one analytics and feedback application for e-commerce owners. He is also working with UK tech start-ups, providing help and mentoring, particularly where growth is rapid.

The Akbar case serves as a stark reminder of the complex legal and compliance considerations that tech start-ups in the mobile device spyware industry selling across multiple territories must navigate. Key legal and compliance considerations revolve around stringent privacy laws, wiretapping and interception regulations, employee monitoring rules, and data protection frameworks, which vary greatly by jurisdiction.

For instance, under U.S. federal law, it is illegal to intercept or monitor electronic communications without proper authorization, typically requiring consent of at least one party involved in the communication. Several U.S. states enforce two-party or all-party consent laws, where all participants must consent before monitoring. Start-ups must identify and comply with varying state laws when operating in the U.S., ensuring clear consent mechanisms are implemented.

When selling internationally or across multiple U.S. states, compliance with data protection laws such as CCPA (California), GDPR (Europe), and other increasingly stringent state privacy laws is critical. These laws generally require transparent disclosure regarding data collection and usage, honoring user opt-outs, and safeguarding personal data against unauthorized access.

If spyware products involve monitoring employees, compliance with federal and state employee monitoring laws is essential. Employers must avoid unlawful interception of communications and respect employee privacy rights, requiring clear policies and notices.

Given the sensitive nature of spyware and the potential for misuse, firms must implement robust cybersecurity measures such as mobile device management, encryption, and incident response plans. Regulatory bodies increasingly enforce compliance with cybersecurity standards to prevent unauthorized surveillance or data breaches involving spyware.

Mobile spyware intersects with issues of unauthorized surveillance, raising potential legal ethical concerns especially if targeting non-consenting users or if spyware is employed beyond lawful investigative or authorized monitoring purposes. Start-ups should conduct thorough legal reviews and obtain clear customer/legal authority before deploying spyware technology to avoid criminal liability and reputational harm.

In summary, tech start-ups must navigate a complex patchwork of consent laws (which vary by state and country), employee and electronic monitoring regulations, data privacy statutes (like CCPA and GDPR), and cybersecurity requirements. Establishing clear consent processes, transparent privacy policies, robust security safeguards, and compliance monitoring mechanisms is crucial for lawful operation across multiple territories in the mobile spyware market.

[1] Electronic Communications Privacy Act (ECPA) - https://www.law.cornell.edu/uscode/text/18/2510 [2] Wiretap Act - https://www.law.cornell.edu/uscode/text/18/2511 [3] California Consumer Privacy Act (CCPA) - https://oag.ca.gov/privacy/ccpa [4] General Data Protection Regulation (GDPR) - https://gdpr-info.eu/ [5] Stored Communications Act (SCA) - https://www.law.cornell.edu/uscode/text/18/2701

Software entrepreneur Hammad Akbar's high-profile court case sets technology industry ablaze