Legal risks in naming wi-fi networks

The increasing trend of naming wi-fi networks to promote a website or physical location such as a shop opens up network owners to the risk of libel actions - just as if they were putting out a newsletter or publishing a website.

Last week it emerged that around one per cent of wi-fi networks in London are being named not only to identify them as a way to get online - indeed, some are closed off to public use, requiring a password - but for publicity purposes. The trend is slightly more advanced in other parts of Europe.

A typical example might be a coffee shop on a busy city road. A café which has been in the area for decades might be fighting back against a rival that has recently moved in. It is providing free wi-fi access - after all, all its competitors are also into wireless.

But, according to legal experts, it must be careful how it promotes itself. A simple 'This coffee is the best' carries no risk - it's a simple marketing message over a new channel. However a statement such as: '[Rival café X's] coffee will make you ill' does carry risks.

Ashley Hurst, associate in the media litigation department at law firm Olswang, said: "A defamatory statement may be libellous if it is made to a third party and refers to a particular individual or company."

Anyone taking legal action would need to trace those who own the network, which can be done in a number of ways, and prove a number of people - perhaps as few as half a dozen - had read the message and that message had libelled them.

Hurst added that the simple act of naming a public wi-fi network - a decision often not given much thought - could potentially open up the network owner to other complaints, such as 'passing off' and trademark infringement, depending on the wording.