Crimes in cyberspace occurred from time to time. Defamation, for instance, is one of these crimes. Because of the characteristics of Internet i.e., fast and anonymous, some users make rumors freely. Sometimes rumors become defamation. The purpose of this study is to examine rumors in cyberspace and discuss seven cases of defamation in cyberspace in Taiwan and in the U .S. We categorized defamation into four types in cyberspace: personal resentment, medical treat-disputes, commerce reputation damage, supervision negligence. In sum, the researchers concluded that law is not the only way to solve the defamation problems in cyberspace. Taking advantage of Internet and defending oneself with law maybe the best way to avoid Internet rumor damage.