Some good hardnosed analysis in this post, which is a summary of the conversations Blackboard counsel Matthew Small has been having with universities. The object of Small's phone calls has been to discuss the legal risks universities using Desire2Learn technology might be facing. This is a questionable sales tactic, and an escalation of Blackboard's campaign against teh Canadian software company. And it's one that might backfire - "an Eleventh Amendment challenge would certainly be a dramatic and fascinating turn of events. Blackboard has worked hard to avoid any direct legal confrontations with universities so far. A Constitutional challenge by a university could open up a substantial new front in their public relations battle."
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