JOLT Digest

Facebook, Inc. v. Power Ventures, Inc.
By Gary Pong – Edited by Eric Engle

Facebook, Inc. v. Power Ventures, Inc., Case No. 08-cv-05780-JF (N.D. Cal. Oct. 22, 2009)
Order (Hosted by SPAM NOTES)

The United States District Court for the Northern District of California has granted a motion by Facebook to dismiss counter-claims and strike affirmative defenses in its ongoing case against Power Ventures (Power.com). In his order, United States District Judge Jeremy Fogel wrote that Power.com’s answer and counter-claim relied on legal conclusions which were not directly supported by factual allegations. Judge Fogel went on to note that antitrust claims, like those made by Power.com, “require a ‘higher degree of particularity in the pleadings.’” The order gives Power.com 30 days to amend its pleading.

TechCrunch provides an overview of the issues involved in this case. The Financial Times and Eric Goldman’s Technology & Marketing Law Blog comment on the decision. (more…)

By Andrew Jacobs

ISPs Found Liable for Websites’ Trademark and Copyright Infringement

Computerworld and Ars Technica report that on August 28, a federal jury handed down a $32.4 million judgment against two ISPs that hosted websites selling counterfeit Louis Vuitton products. Louis Vuitton successfully argued on a theory of contributory infringement, overcoming the ISPs’ claims of immunity under the Digital Millennium Copyright Act’s “safe harbor” provisions. Evidence that the ISPs had received and failed to respond to notices of the illegal activity from Louis Vuitton was key to the case.

EU to Investigate Oracle/Sun Deal

On September 3, the European Union’s antitrust regulators announced plans for a formal investigation of Oracle’s planned buyout of Sun Microsystems, The Washington Post reports. The investigation will center on the competitive consequences of “the world’s biggest proprietary database company . . . tak[ing] over the world’s leading open-source database company.” The European Commission will come to a ruling on the deal by January 19; the U.S. Department of Justice has already approved it.

Authors Voice Privacy Concerns in Objection to Google Settlement

A group of authors and publishers filed an objection to the proposed settlement between The Authors’ Guild and Google Book Search (GBS), the Electronic Frontier Foundation (EFF) reported on September 8. A fairness hearing regarding the settlement is set for next month. In the objection, prepared by EFF, the ACLU, and the Samuelson Clinic at UC Berkeley School of Law, the authors assert that GBS’s collection of personally identifiable information regarding users’ habits will having a chilling effect on readership. Limited information retention and strict disclosure standards are among the authors’ specific demands.

By Sharona Hakimi

WTO Finds China’s Media Laws Violate International Trade Laws

On August 12, Ars Technica and the New York Times reported that the World Trade Organization ruled against China in a complaint by the United States regarding China’s limitation on imports of songs, movies, and books. The Chinese laws constituting trade violations require that many forms of imported media must be distributed by a single, state-owned company. The laws also limit foreign ownership of Chinese media companies and allow domestic companies to bypass trade censors. Ron Kirk, the US trade representative at the WTO conference in Geneva, said that the “decision promises to level the playing field for American companies working to distribute high-quality entertainment products in China so that legitimate American products can get to market and beat out the pirates.”

Hollywood Group Secures Preliminary Injunction against DVD Copying Software

On August 11, U.S. District Court Judge Marilyn Patel issued a preliminary injunction against RealNetworks, barring the company from selling its RealDVD copying software until a jury can decide the issue, CNET News reports. She stated that RealNetworks cannot use fair use as a defense under the Digital Millennium Copyright Act or the company’s license with the DVD Copy Control Association, but noted that “[i]t may well be fair use for an individual consumer to store a backup copy of a personally owned DVD on that individual’s computer.” While the decision is seen as a major victory for the Motion Picture Association of America, the Electronic Frontier Foundations views it as a setback for innovators and consumers.

David Kappos Sworn in as New Director of USPTO

Patently-O reports that on August 13, David Kappos was sworn as Director of the United States Patent and Trademark Office. Kappos addressed USPTO employees at the ceremony, pledging to work on “reducing the backlog of unexamined patent applications, cutting pendency dramatically, working off the mounting appeals backlog, [and] improving re-exam processing.” He also projected his goals to secure more stable financial backing or the USPTO, hoping there will be no need to utilize the Office’s new authority to use trademark funds to pay for patent operations. A video of Kappos’s swearing in ceremony is available on the blog Anticipate This!

By Tyler Lacey

Wiki Operator Seeks Right to Host Discussions About Circumvention of iPhone’s DRM System

Wired reports that on April 27, BluWiki operator OdioWorks filed a declaratory judgment lawsuit against Apple in order to “clarify the rights of the parties.” Last November, Apple threatened OdioWorks with legal action over a thread discussing how to use unapproved software on both the iPod and iPhone. Apple claimed that the content was “designed to circumvent Apple’s FairPlay digital rights management system” in violation of the Digital Millennium Copyright Act. OdioWorks initially complied with Apple’s takedown demands, but is now being supported by Keker Van Nest and the Electronic Frontier Foundation in its lawsuit.

Ontario to Propose New Legislation Banning Ticketmaster from Reselling Tickets Through Its Subsidiaries

On April 29, The Toronto Star reported that Ontario’s Attorney General Chris Bentley plans to introduce a bill that would outlaw ticket sales companies such as Ticketmaster from reselling their tickets on subsidiary websites. Although ticket scalping is already illegal in Ontario, Bentley says the proposal is in response to complaints from customers upset with Ticketmaster’s practice of reselling tickets at prices above face value on its subsidiary TicketsNow. Ticketmaster had previously agreed to voluntary limitations on its use of TicketsNow in the United States.

European Union Votes to Extend Music Copyright by 20 Years

The European Parliament voted on April 23 to extend the length of musical copyright protection from 50 years to 70 years. If the proposal is approved by the European Council, artists will be able to continue receiving royalties for up to 70 years after the first release of their songs. Ars Technica reports that several groups have criticized the extension because most of the new royalties will go to record labels rather than the original performers of the songs.

Alleged “Coupon Hacker” and Coupons, Inc. Settle DMCA Suit [UPDATED]

By Chris Kulawik — Edited by Jon Choate

Coupons, Inc. v. Stottlemire
N.D. Cal., No. CV 07-03457 HRL
Court Documents (hosted by Justia)

Last week, Coupons, Inc. (”Coupons”), settled its DMCA suit against John Stottlemire, who had defended himself pro se. The parties have not fully disclosed the details of the settlement, but Stottlemire indicates that the case was dismissed with prejudice. The agreement follows a year’s worth of litigation in the United States District Court for the Northern District of California.

Note:
Since the writing of this post, Coupons, claiming that Stottlemire breached material terms of the parties’ settlement agreement, has resumed litigation.  Stottlemire, in a motion filed with the court, claims that Coupons is mistaken in its belief that he has breached the confidentiality term of the settlement.

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