UNITED STATES DISTRICT COURT FOR THE 

DISTRICT OF NEW HAMPSHIRE

Federal Trade Commission

v. Civil No. 04-377-JD

Seismic Entertainment

Productions, Inc., et al.

TEMPORARY INJUNCTION ORDER

Plaintiff Federal Trade Commission (“FTC”) has filed its

Complaint for Injunctive and Other Equitable Relief and moved for

a noticed temporary restraining order with other equitable relief

against defendants Seismic Entertainment Productions, Inc.,

SmartBot.Net, Inc., and Sanford Wallace. The court has

considered the pleadings, declarations, and exhibits filed in

support of and opposing the motion, along with the arguments of

counsel presented at a hearing held on October 15, 2004. For the

reasons stated in the accompanying order also issued today,

granting, in part, the FTC’s motion, temporary injunctive relief

is ordered as follows:

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DEFINITIONS

For the purpose of this order, the following definitions

shall apply:

1. “Seismic” means Seismic Entertainment Productions, Inc.,

a New Hampshire corporation with its principal place of business

at 11 Farmington Road, Rochester, New Hampshire 03867.

2. “SmartBot” means SmartBot.Net, Inc., a Pennsylvania

corporation with its corporate address at 3 Cobblestone Court,

Richboro, Pennsylvania 18954, and its principal place of business

at 495 Route 9, Barrington, New Hampshire 03825.

3. “Wallace” means Sanford Wallace, individually and as an

officer and director of Seismic, and as an officer and director

of SmartBot. 

4. “Defendants” means Seismic, SmartBot, Wallace, and each

of their successors, assigns, officers, agents, servants,

employees, salespersons, subsidiaries or affiliates.

5. The “World Wide Web” or the “Web” is a system used on

the Internet for cross-referencing and retrieving information. 

Documents (“pages” or “sites”) on the World Wide Web are most

frequently formatted in a language called HTML or HyperText

Markup Language, that supports links to other documents on the

World Wide Web.

6. A “web site” is a single electronic document on the

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World Wide Web, readily viewable on a computer with access to the

Web and standard Internet browser software. Every web page on

the World Wide Web is identified by a globally unique address.

8. A “web browser” is a software application used to view,

download, upload, surf, or otherwise access documents (“pages” or

“sites”) on the World Wide Web. Web browsers read coded

documents that reside on servers, and interpret the coding into

what users see rendered as a web page or web site. A user may

retrieve and view a web page or site by entering the Uniform

Resource Locator (“URL”) or domain name of the web page in the

address bar of the web browser.

PROHIBITED BUSINESS ACTIVITIES

I.

IT IS THEREFORE ORDERED that the defendants, and their

officers, agents, directors, employees, salespersons, independent

contractors, subsidiaries, affiliates, successors, assigns and

all other persons or entities in active concert or participation

with any of them who receive actual notice of this order by

personal service or otherwise, including by facsimile, whether

acting directly or through any corporation, subsidiary, division

or other device are hereby required to remove, within twenty-four

(24) hours, from any web site, bulletin board, or Internet server

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controlled by defendants any software script that exploits the

web browser security vulnerabilities referenced in Microsoft

Bulletins MS03-032 and MS03-040 or any other web browser security

vulnerabilities to install, download, or deposit onto any

computer any software code, program, or content, without the

computer user’s authorization.

MAINTENANCE OF RECORDS

II.

IT IS FURTHER ORDERED that the defendants, and their

officers, agents, directors, employees, salespersons, independent

contractors, subsidiaries, affiliates, successors, assigns and

all other persons or entities in active concert or participation

with any of them who receive actual notice of this order by

personal service or otherwise, including by facsimile, whether

acting directly or through any corporation, subsidiary, division

or other device, are hereby enjoined from:

1. failing to create and maintain books, records, account,

bank statements, current accountants’ reports, and any other data

which, in reasonable detail, accurately and fairly reflect the

transactions and dispositions of the assets of the defendants;

2. destroying, erasing, mutilating, concealing, altering,

transferring, or otherwise disposing of, in any manner, directly

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or indirectly, any books, records, tapes, discs, accounting data,

checks (fronts and backs), correspondence, forms, advertisements

(including but not limited to advertisements placed on the World

Wide Web or the Internet), brochures, manuals, electronically

stored data (including but not limited to floppy disks and hard

drives, CD-ROMS, zip disks, punch cards, magnetic tape, backup

tapes, and computer chips) on which information has been saved,

any and all equipment needed to reach any such material, FTP

logs, Service Access Logs, USENET Newsgroups postings, World Wide

Web pages, contracts, accounting data, banking records, customer

lists, customer files, invoices, telephone records, ledgers,

payroll records, or other documents of any kind, including

information stored in computer-maintained form (such as

electronic mail), in their possession, and other documents or

records of any kind that relate to the business practices or

finances of the defendants; 

3. failing to maintain complete records of any consumer

complaints and disputes, whether coming from the consumer or any

intermediary, such as a government agency or Better Business

Bureau, and any responses made to those complaints or disputes. 

4. creating, operating, or exercising any control over any

Internet and/or advertising-related business entity, including,

but not limited to, any partnership, limited partnership, joint

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venture, sole proprietorship, international business corporation

or any other corporation, without first providing the Commission

with a written statement disclosing (a) the name of the business

entity; (b) the address and telephone number of the business

entity; (c) the names of the business entity’s officers,

directors, principals, managers, and employees; and (d) a

detailed description of the business entity’s intended

activities; and

5. creating, operating, or exercising any control over any

web site, FTP site, bulletin board, or Internet serve without

first providing the FTC a written statement disclosing: (a) its

domain name; (b) its IP address; (c) its Host or Host Company,

including contact information; and (d) the uniform resource

locator (“URL”) for each resource, page, or file contained in it. 

SERVICE OF THIS ORDER BY PLAINTIFF

III.

IT IS FURTHER ORDERED that copies of this order may be

served by facsimile transmission, personal or overnight delivery,

or U.S. Mail, by agents and employees of the FTC or any state or

federal law enforcement agency, on (1) any defendant in this

action; (2) any financial or brokerage institution, entity, or

person that holds, controls, or maintains custody of any account

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or asset of the defendants; (3) any Internet service provider,

Host, Host company, or other entity that provides Internet

related services to defendants; or (4) any other person or entity

that may be subject to any provision of this order. Service upon

any branch or office of any entity shall effect service upon the

entire entity.

DURATION

IV.

IT IS FURTHER ORDERED that the temporary injunctive relief

ordered herein shall continue until the court issues an order

granting or denying the FTC’s motion for a preliminary

injunction, unless, for good cause shown, the relief ordered is

terminated at an earlier time.

SO ORDERED.

Joseph A. DiClerico, Jr.

United States District Judge

October 21, 2004

cc: T. David Plourde, Esquire

Laura M. Sullivan, Esquire

Ralph A. Jacobs, Esquire

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