CompuServe - Technology and Law

Technology and Law

One popular use of CompuServe in the 1980s was file exchange, particularly pictures. Indeed, in 1985 it hosted perhaps the first online comic in the world, Witches and Stitches. CompuServe introduced a simple black-and-white image format known as RLE (run-length-encoding) to standardize the images so they could be shared among different microcomputer platforms. With the introduction of more powerful machines, universally supporting color, CompuServe introduced the much more capable GIF format, invented by Steve Wilhite. GIF went on to become the de facto standard for 8-bit images on the Internet in the early and mid 1990s.

CompuServe, and its outside telecommunications attorney, Randy May, led the appeals before the Federal Communications Commission (FCC) to exempt data networks from having to pay the Common Carrier Access Charge (CCAC) which was levied by the telephone Local Exchange Carriers (primarily the Baby Bell companies) on long distance carriers. The primary argument was that data networking was a brand new industry, and the country would be better served by not exposing this important new industry to the aberrations of the voice telephone economics (the CCAC is the mechanism used to subsidize the cost of local telephone service from long distance revenue). The FCC agreed with CompuServe's position, and the consequence is that all dial-up networking in the United States, whether on private networks or the public Internet, is much less expensive than it otherwise would have been.

In 1991, CompuServe was sued for defamation in one of the early cases testing the application of traditional law on the Internet in Cubby v. CompuServe. Although defamatory content was posted on one of its forums, CompuServe was not liable for this content because it was unaware of the content and did not exercise editorial control over the forum.

In 1995, CompuServe blocked access to sex-oriented newsgroups after being pressured by Bavarian prosecutors. In 1997, after CompuServe reopened the newsfeeds, Felix Somm, the former managing director for CompuServe Germany, was charged with violating German child pornography laws because of the material CompuServe's network was carrying into Germany. He was convicted and sentenced to two years probation on May 28, 1998. He was cleared on appeal on November 17, 1999. The requirement for censorship in Germany caused some loss of German members.