A student-run resource for reliable reports on the latest law and technology news
http://jolt.law.harvard.edu/digest/wp-content/uploads/2012/12/joltimg.pngBy: Chris Crawford and Joshua Vittor This article assumes a base level of knowledge about Bitcoin, bitcoin (BTC), blockchain technology, the Silk Road seizure, and the collapse of MtGox. For a helpful summary of how this technology works, see the first portion of this article, written by Matthew Ly of the Journal of Law and Technology. Bitcoin, and crypto-currency more generally, has risen in the five years since its launch from an academic exercise to what is today a multi-billion dollar ... Read More...
http://jolt.law.harvard.edu/digest/wp-content/uploads/2012/12/joltimg.pngWritten by: Michelle Sohn Edited by: Olga Slobodyanyuk Emulsion: A mixture of two or more liquids that are normally immiscible (nonmixable or unblendable). -Wikipedia  I.               UberX D.C. as Case Study in the Local Sharing Economy If states are laboratories of democracy, then cities are the experiments. A new experiment has bubbled up in cities across the world, reaching a boiling point. The experiment? The local sharing economy. In May, amidst accusations that many of its users were violating New York’s ... Read More...
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Flash Digest: News in Brief

By Olga Slobodyanyuk

ICANN responds to terrorism victims by claiming domain names are not property

D.C. District Court rules that FOIA requests apply to officials’ personal email accounts

Class-action lawsuit brought against ExamSoft  in Illinois

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Federal Circuit Applies Alice to Deny Subject Matter Eligibility of Digital Imaging Patent

By Amanda Liverzani – Edited by Mengyi Wang

In Digitech Image Technologies, the Federal Circuit embraced the opportunity to apply the Supreme Court’s recent decision in Alice to resolve a question of subject matter eligibility under 35 U.S.C. §101. The Federal Circuit affirmed summary judgment on appeal, invalidating Digitech’s patent claims because they were directed to intangible information and abstract ideas.

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Unlocking Cell Phones Made Legal through Unlocking Consumer Choice and Wireless Competition Act

By Kellen Wittkop – Edited by Insue Kim

Unlocking Consumer Choice and Wireless Competition Act allows consumers to unlock their cell phones when changing service providers, but the underlying issue of “circumvention” may have broader implications for other consumer devices and industries that increasingly rely on software.

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By Tyler Lacey

RealNetworks Won’t Appeal Decision Declaring Its DVD Copying Software in Violation of DMCA

On March 4, Wired reported that RealNetworks plans to cease litigation of a lawsuit filed by the Motion Picture Association of America (“MPAA”) alleging that its DVD copying software, RealDVD, violates the Digital Millennium Copyright Act (“DMCA”).  RealNetworks had initially planned to appeal a California district court’s decision that the software illegally circumvented the DVD encryption technology, Content Scramble System. However, after two years of litigation, RealNetworks has decided not to appeal in an effort to cut its losses, which according to Wired amount to “millions of dollars, including $4.5 million to reimburse the MPAA for its legal costs.”  Wired argues that “RealNetworks’ admitted defeat solidifies the DMCA’s power.”

Google Obtains Patent on Location-Targeted Advertising Method

Mashable reports that Google obtained a patent for “determining and/or using location information in an ad system” on February 23. The patent, which Mashable characterizes as “broad,” was filed on April 12, 2004.  Mashable also reports that since the patent’s filing date, several companies have started practicing a method of targeting advertisements based on an individual’s location, with AdMob and Quattro Wireless “leading the charge.”  Quattro Wireless has been acquired by Apple, which Mashable notes is “quickly becoming [Google’s] primary rival” in mobile advertising.  The patent abstract states in part that the patented method “may be used in a relevancy determination of an ad” and that “[a]d performance information may be tracked on the basis of location information.”

Canadian Government to Allow Increased Foreign Investment in Telecommunications Industry

On March 4, CBC News reported that the Canadian government is planning to loosen foreign ownership restrictions on telecommunications companies as a part of its new budget proposal.  The new rules will initially allow foreign startups and acquisitions of small companies, and will allow foreign takeovers of larger companies within five years. According to the article, there are currently restrictions in place designed to ensure Canadians are in control of any telecommunications carriers that operate in Canada, including minimum levels of Canadian board membership and ownership of voting shares. Industry experts argue that the old rules are “archaic and anti-competitive,” and are the reason “prices have been high and service levels low.” According to Canada’s Governor General Michaëlle Jean, the new rules will give “Canadian firms access to the funds and expertise they need.”

Posted On Mar - 5 - 2010 Comments Off READ FULL POST

Court Excludes Litigation Fees from Calculation of Damages under DMCA § 512(f).
By Debbie Rosenbaum – Edited by Gary Pong

Lenz v. Universal Music Corp., Case No. 5:07-cv-03783-JF (N.D. Cal., Feb. 25, 2010)
Slip Opinion
(Hosted by the Citizen Media Law Project)

On February 25, 2010, Judge Fogel for the Northern District of California held that a plaintiff suing over a wrongful Digital Millennium Copyright Act (“DMCA”) takedown notice can only recover for damages that were proximately caused by said notice.  This effectively limits the plaintiff’s recovery to attorney’s fees for pre-litigation activities such as the filing of the DMCA counter-notification.  To recover for attorney’s fees incurred in the actual § 512(f) suit, the plaintiff’s only recourse is in 17 U.S.C. § 505 of the Copyright Act – providing that “the court in its discretion may allow the recovery of full costs … [or] reasonable attorney’s fee to the prevailing party.”  In so holding, the court  may actually be discouraging 512(f) plaintiffs from bringing suit by limiting their compensable damages.

Ars Technica and Copyrights & Campaigns provide a general overview of the decision.  The Citizen Media Law Project offers briefs of all portions of the case. (more…)

Posted On Mar - 4 - 2010 Comments Off READ FULL POST

For in rem Jurisdiction, Ninth Circuit Holds That Domain Names Are Located Where the Registry is Located
By Elizabeth Akerman – Edited by Gary Pong

Office Depot, Inc. v. Zuccarini, Case No. 07-16788 (9th Cir., Feb. 26, 2010)
Slip Opinion

The U.S. Court of Appeals for the Ninth Circuit affirmed the decision by the District Court for the Northern District of California to grant DS Holdings’ motion to appoint a receiver to auction off Zuccarini’s domain names and use the proceeds to satisfy an earlier judgment against him.

To arrive at its conclusion, the court held that under California law “domain names are intangible property subject to a writ of execution” and that “domain names are located where the registry is located for the purpose of asserting quasi in rem jurisdiction.” The court also noted in dicta that for in rem jurisdiction, domain names are located where the relevant registrar is located.

The Seattle Trademark Lawyer provides an overview of the case and the Technology & Marketing Law Blog provides an analysis of the decision. (more…)

Posted On Mar - 4 - 2010 Comments Off READ FULL POST

By Conor H. Kennedy
Editorial Policy

In Citizens United v. Federal Election Commission (“Citizens United”), the Supreme Court nullified a major provision of campaign finance legislation.  The Federal Election Commission (“FEC”) can no longer regulate the mandated disclosure, allowable sources, or contribution limits of corporations’ independent political advocacy.

Prominent legal scholar Lucian Bebchuk argues that the “insiders” who manage companies are now empowered to use direct expenditures to legally entrench themselves atop publicly traded companies, their shareholders’ objections notwithstanding.  From such a powerful vantage, these “insiders” have strong incentives to spend their general treasury funds on political advertising to help candidates who favor legislation benefiting them as a class.

Whether and how “insiders” respond to these incentives is currently up for debate.  Still, increasingly weak shareholder rights or abstract reputational costs are now the sole disciplining factors preventing corporations from deluging our political speech channels with direct expenditures.  It therefore seems more likely than not that business insiders will take full advantage of the emerging legal landscape by significantly increasing political expenditures through the general treasury funds they control.

Accordingly, reform advocacy groups have redoubled their calls to bolster the FEC’s approach to offline coordination standards.  The offline coordination standards govern the degree to which corporations can orchestrate their political spending on television and radio advertising with specific candidates or parties.  The courts have rejected the FEC’s prior offline coordination standards, but not because of empirical evidence that specific advertisements have been actually coordinated.  As noted in the latest court opinion overturning the FEC’s offline coordination regulations, “no such evidence has yet been identified[, but that] is far from a guarantee that no such evidence will develop in the future.”

Advocacy groups like the Campaign Legal Center are picking up where court oversight left off, both by testifying in front of the FEC to stave off the prospect of substantial coordination and by urging Congress to write its own, stronger coordination standards to compel the FEC to act. This Comment hopes to contribute to the advocacy effort by suggesting that Congress and the FEC should consider altering online coordination standards as well.

The FEC’s online coordination standards were not challenged or overturned in the latest round of court review, even though they exempted any expenditures on political messaging distributed through free online services like YouTube.[i] A 2009 Columbia Law Review student comment highlighted the potential for abuse of virtually unregulated online political expenditures.

In the next few election cycles, the loci of political news and commentary will continue to migrate online.  The groups influencing that process are likely to allocate their investments toward ventures which have worked in the past.  The “Yes We Can” web video, commonly known as one of the most successful and innovative online expenditures in the 2008 campaign, bares the trappings of the political advertising we can anticipate in the near future: an unregulated third party funded the production of a web video which a candidate then spread to millions of supporters.

There is no reason to believe that the “Yes We Can” video was coordinated with the Democratic Party or the Obama campaign. However, one might expect that a prolonged, systematic effort to emulate its production and distribution model would foreseeably lead corporate spenders to take advantage of the non-regulation of coordinated online expenditures.  After all, when a corporation can coordinate one type of expenditure (i.e., expenditures distributed on free internet services) guaranteed to mesh with its preferred candidate or party’s dynamic efforts to shape the 24-hour news cycle, but cannot coordinate other expenditures (i.e., offline expenditures), the corporation has an incentive to move its money toward the coordinated expenditure.  Now that Citizens United has provided additional incentives for professional managers to invest their general treasury money on campaign expenditures, they also have additional incentives to research the most effective legal ways in which to do so.  We are therefore likely to witness a growing effort to exploit the online coordination standard.

This week, the FEC is hearing testimony about proposed post-Citizens United coordination standards.  Once the FEC sets a baseline by promulgating new standards, Congress is prepared to readjust that baseline to its own liking.  I argue that both entities should make preemptive efforts to regulate now instead of sweeping up after an election cycle of substantial online coordination. (more…)

Posted On Mar - 3 - 2010 5 Comments READ FULL POST

Federal Circuit Rules for Crocs on Appeal in ITC Patent Dispute
By Sharona Hakimi – Edited by Steven Primeaux

Crocs, Inc. v. ITC, Appeal 2008-1596 (Fed. Cir. Feb. 24, 2010)
Slip Opinion

On February 24, 2010, the U.S. Court of Appeals for the Federal Circuit reversed and remanded a patent decision by the U.S. International Trade Commission concerning Crocs shoes. In what has become a trend in high-profile design patent cases, Judge Rader provided guidance on claim construction and the application of the ordinary observer test. Rader held that Crocs’ utility patent No. 6,993,858 (“the ’858 patent”) was not obvious and that the three other companies remaining in the litigation did in fact infringe Croc’s design patent No. D517,789 (“the ’789 patent”). The Federal Circuit remanded the case to the ITC to determine appropriate remedies.

The case arose in 2006 when Crocs, the maker of colorful plastic clog footwear, sued eleven companies for allegedly copying its shoe designs. Three companies remain in the litigation: Double Diamond Distribution, Ltd., the maker of Dawg shoes; Holey Soles Holdings, Inc.; and Effervescent, Inc., which makes Waldies Comfy Clogs. The ITC had held that Crocs’ ’858 patent for “breathable footwear pieces” was invalid for obviousness and that the companies did not infringe the ’789 patent because there were only “minor differences.” On appeal, the Federal Circuit reversed.

Inventive Step blog provides a legal analysis of the court’s decision, Law.com provides a summary of the case, and David Musker of Class99.com offers a brief overview of Judge Rader’s decision. (more…)

Posted On Mar - 1 - 2010 Comments Off READ FULL POST
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The Silk Road and Mt

By: Chris Crawford and Joshua Vittor This article assumes a base ...

Photo By: Tristan Ferne - CC BY 2.0

Emulsification: Uber

Written by: Michelle Sohn Edited by: Olga Slobodyanyuk Emulsion: A mixture of ...

Icon-news

Flash Digest: News i

By Olga Slobodyanyuk ICANN responds to terrorism victims by claiming domain ...

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Federal Circuit Appl

By Amanda Liverzani – Edited by Mengyi Wang Digitech Image Technologies, ...

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Unlocking Cell Phone

By Kellen Wittkop – Edited by Insue Kim On July 25, ...