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Federal Circuit Flash Digest: News in Brief  

By Amanda Liverzani

PTO’s Statutory Interpretation on Patent Term Adjustment Upheld

Federal Circuit Affirms Garmin Fitness Watches Do Not Infringe on Pacing Patents

Online Shopping Cart Patents Deemed Invalid in Infringement Action Against Victoria’s Secret and Avon

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Alleged mastermind behind the undercover trading platform Silk Road convicted in Manhattan court

By Jens Frankenreiter – Edited by Katherine Kwong

On February 4, a federal jury in Manhattan rendered its verdict in the trial against Ross Ulbricht, the person allegedly in charge of the online black market platform Silk Road. The jury found Ulbricht guilty on all charges. The case is important as it represents an attempt by the government to regain control over an area of the internet where tools such as bitcoin and Tor are used to create an online space beyond the reach of the authorities.

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Whack-a-troll Legislation

Written by Asher Lowenstein     —   Edited by Yaping Zhang

Patent assertion entities’ extensive litigation activities in different states enables to assess the efficacy of the proposed bills against legal strategies these trolls, such as MPHJ Technology, have engaged in. The legal battles confirm some of the concerns about the usefulness of proposed regulatory measures.

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3D Systems and Formlabs Settled Two-Year Patent Dispute

By Yixuan Long – Edited by Yaping Zhang

On December 1, 3D Systems and Formlabs settled their two-year legal dispute over the 520 Patent infringement. Terms of the settlement are undisclosed. The patent covered different parts of the stereolithographic three-dimensional printing process, which uses a laser to cure liquid plastic. 3D Systems was granted the ‘520 Patent in 1997. Formlabs views the settlement as enabling it to continue its expansion and keep developing new products.

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Privacy Concerns in the Sharing Economy: The Case of Uber 

By Sabreena Khalid – Edited by Insue Kim

Recent revelations about Uber’s disconcerting use of personal user information have exposed the numerous weaknesses in Uber’s Privacy Policy. The lack of regulation in the area, coupled with the sensitive nature of personal information gathered by Uber, makes the issue one requiring immediate attention of policy makers.

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Ninth Circuit Argues for Less Stringent Test for Protecting Anonymous Online Commercial Speech
By Kathryn Freund – Edited by Janet Freilich

In re: Anonymous Online Speakers, No. 09-71265 (9th Cir. July 12, 2010)
Opinion

The Ninth Circuit Court of Appeals denied writs of mandamus appealing the District Court of Nevada’s order to disclose the identities of anonymous online posters. Although the Circuit Court denied the writs of mandamus for procedural reasons, the decision provides a discussion of Free Speech protection of commercial speech posted on the Internet.

Judge McKeown held that the District Court committed no clear error in ordering the release of the identities of three anonymous online speakers. In discussing the various tests for protecting anonymous speech, she stated that the District Court applied too stringent a standard for commercial speech by relying on the test announced in Doe v. Cahill, 884 A.2d 451 (Del. 2005), which involved political speech. The court noted that the First Amendment affords less protection to commercial speech, and thus the balancing test between discovery and Free Speech should be based on “the nature of the speech,” with commercial speech subject to less stringent protection. In re: Anonymous Online Speakers, at *9920. In the discussion, the court noted the likelihood of an increasing number of cases involving anonymous online commercial speech and the lack of appellate decisions involving such discovery disputes.

The Internet Cases blog provides an overview of the decision and points out the significance of the case as the third federal circuit court case to address the issue of online anonymity. Citizen Media Law Project provides a more extensive overview and questions whether the Ninth Circuit’s definition of commercial speech will reduce free speech protection for “legitimate consumer criticism.” (more…)

Posted On Jul - 27 - 2010 Comments Off READ FULL POST

Use of Trademark in Domain Names Found to Be Nominative Fair Use
By Harry Zhou – Edited by Anthony Kammer

Toyota Motor Sales v. Tabari, No. 07-55344 (9th Cir. Jul. 8, 2010)
Slip Opinion

On July 8, 2010, the Ninth Circuit Court of Appeals vacated and remanded an injunction against Farzad and Lisa Tabari by the United States District Court for the Central District of California in a trademark infringement claim brought by Toyota Motor Sales U.S.A. (“Toyota”).  The Ninth Circuit stated that on remand the injuction must be modified to permit some use of Toyota’s “Lexus” trademark in Internet domain names.

Led by Chief Judge Alex Kozinski, the majority concluded that Tabari’s use of the string “lexus” in domain names “buy-a-lexus.com” and “buyorleaselexus.com,” under which Tabari operated an automobile brokerage, was nominative fair use, a defense that shielded Tabari from Toyota’s claim of trademark infringement.  The nominative fair use doctrine is a defense that gives individuals to right to use another’s trademark to refer to the trademarked good itself. The majority reasoned that Tabari’s truthful communications regarding the nature of the Lexus product fell into the protective scope of the nominative fair use doctrine.

Seattle Trademark Lawyer features excerpts from the opinion. The E-Commerce and Tech Law Blog summarizes potential impacts of the decision. An in-depth analysis of the opinion is available at Eric Goldman’s Technology and Marketing Law BlogRebecca Tushnet’s 43(B)log offers comments on the opinion. (more…)

Posted On Jul - 22 - 2010 Comments Off READ FULL POST

Federal Circuit Distinguishes Provisional Applications from Foreign Filings for Prior Art Priority under 102(e)
By Ian B. Brooks – Edited by Anthony Kammer

In re Giacomini, No. 2009-1400 (Fed. Cir. July 7, 2010)
Slip Opinion

On July 7, 2010, the Court of Appeals for the Federal Circuit affirmed the Board of Patent Appeals and Interferences’ (“Board”) rejection of claims of U.S. Patent Application No. 09/725,737 as anticipated under 35 U.S.C. § 102(e), the so-called “secret prior art” provision.  The Federal Circuit’s ruling expanded the scope of 102(e) such that prior art U.S. patents and applications under § 102(e) are now to have an effective filing date as of the filing date of the qualifying provisional application.

The Federal Circuit held as a matter of statutory interpretation, that under § 102(e) the effective filing date for patent priority is the filing date of the provisional application, so long as the provisional application contains a written description of the claimed invention.  Thus secret and confidential provisional applications will receive patent priority for a claimed invention against any later filings.  The court based its decision on §§ 111(b) and 119(e), emphasizing that the patent system rewards the person who is first to invent.

Patently-O provides an overview of the case. Matt Osenga at Inventive Step provides an analysis of possible implications of the decision. The Patent Prospector discusses the decision and notes that Americans will continue to receive priority over foreign patent applications. (more…)

Posted On Jul - 21 - 2010 1 Comment READ FULL POST

By Ian B. Brooks

Reality Porn Producers Claim Fair Use in Suit against Record Labels

Ars Technica reports that Warner Bros. Records and ten other record music labels have filed suit against porn companies RK Netmedia and RealityKings.com. The record labels allege copyright infringement for the use of their unlicensed songs in hundreds of hardcore pornographic videos. They are seeking the maximum statutory penalty of $150,000 per video. RK Netmedia says it will defend the suit under the fair use doctrine. They argue that because they shoot their films in reality show style, their equipment captures music played in the background of the nightclubs and venues where they shoot. The complaint is available here.

ACLU Challenges Constitutionality of Massachusetts Law Protecting Minors on the Internet

On July 12, 2010, an updated Massachusetts law went into effect which will extend existing laws to protect minors from obscene materials on the Internet. Citizen Media Law Project and Ars Technica report on the ACLU’s challenge to the law. The “harmful to minors” law has been expanded to cover many online communications, such as electronic mail, instant messaging, and text messaging. The ACLU argues that the updated law will have a chilling effect on Internet communications, affecting even constitutionally protected communications between adults. The law, which was previously restricted to physical locations such as shops within Massachusetts, now has the effect of reaching outside of the state. The ACLU seeks to have the updated language removed from the law.

Louisiana is Latest to Enact Anti-Cyber-Bullying Statute

Lowering the Bar and Citizen Media Law Project report on the latest cyber-bullying statute enacted in Louisiana. The law makes illegal the “transmission of any electronic textual, visual, written, or oral communication with the malicious and willful intent to coerce, abuse, torment, or intimidate a person under the age of 18.” Violators could face a maximum penalty of a $5,000 fine and three years in jail. The Media Coalition opposed the law on constitutional grounds prior to its enactment because of its vague language. Much of the language remained unchanged, so its constitutionality continues to be a concern for some.

Posted On Jul - 20 - 2010 Comments Off READ FULL POST

District of Massachusetts reduces jury-awarded damages by 90 percent in copyright infringement lawsuit
By Abby Lauer – Edited by Jad Mills

Sony BMG Music Entertainment et. al. v. Tenenbaum, No. 07cv11446-NG (D. Mass. July 9, 2010)
Slip Opinion

In a decision by Judge Nancy Gertner, the United States District Court for the District of Massachusetts reduced the damages awarded by a jury to members of the recording industry in a copyright infringement lawsuit. After finding defendant Joel Tenenbaum guilty of illegally downloading copyrighted music, the jury awarded statutory damages of $22,500 per song, $675,000 total for 30 songs. Judge Gertner held that the damages award should be reduced to $2,250 per song or $67,500 total. In so holding, Judge Gertner maintained that the jury’s award was far greater than necessary to serve the government’s interest in deterring copyright infringement and compensating copyright owners whose rights have been infringed. She argued that Congress never intended the extraordinary damages provisions of copyright law to apply to situations where a defendant did not receive pecuniary benefit from his infringing activities.

Ars Technica provides an overview of the case. The Electronic Frontier Foundation commends the court’s decision. (more…)

Posted On Jul - 14 - 2010 Comments Off READ FULL POST
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Federal Circuit Flas

By Amanda Liverzani PTO’s Statutory Interpretation on Patent Term Adjustment Upheld  In ...

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