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By Ellora Israni – Edited by Filippo Raso

IMDb is challenging the constitutionality of Assembly Bill 1687 (“AB 1687”), a California law requiring IMDb to remove ages from its website upon request from paid subscribers, claiming that the law violates the First Amendment’s free speech protections.

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Facebook Blocks British Insurance Company from Basing Premiums on Posts and Likes

By Javier Careaga– Edited by Mila Owen

Admiral Insurance has created an initiative called firstcarquote, which analyzes Facebook activity of first-time car owners. The firstcarquote algorithm determines risk based on personality traits and habits that are linked to safe driving. Firstcarquote was recalled two hours before its official launch and then was launched with reduced functionality after Facebook denied authorization, stating that the initiative breaches Facebook’s platform policy.

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Airbnb challenges New York law regulating short-term rentals

By Daisy Joo – Edited by Nehaa Chaudhari

Airbnb filed a complaint in the Federal District Court of the Southern District of New York seeking to “enjoin and declare unlawful the enforcement against Airbnb” of the recent law that prohibits  the advertising of short-term rentals on Airbnb and other similar websites.  Airbnb argued that the new law violated its rights to free speech and due process, and that it was inconsistent with Section 230 of the Communications Decency Act, which protects online intermediaries that host or republish speech from a range of liabilities.

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Medtronic v. Bosch post-Cuozzo: PTAB continues to have the final say on inter partes review

By Nehaa Chaudhari – Edited by Grace Truong

The Court of Appeals for the Federal Circuit (“the Federal Circuit”) reaffirmed its earlier order, dismissing Medtronic’s appeal against a decision of the Patent Trial and Appeal Board (“PTAB”). The PTAB had dismissed Medtronic’s petition for inter partes review of Bosch’s patents, since Medtronic had failed to disclose all real parties in interest, as required by 35 U.S.C. §312(a)(2).

 

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California DMV Discuss Rules on Autonomous Vehicles

DOJ Release Guidelines on CFAA Prosecutions

Illinois Supreme Court Rule in Favor of State Provisions Requiring Disclosure of Online Identities of Sex Offenders

Research Shows Concerns for Crucial Infrastructure Information Leaks

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Written by Mehdi Eddebbarh & Jack Burns
Edited by Albert Wang
Editorial Policy

I. Introduction

Patent law strives to stimulate innovation by awarding inventors a temporary monopoly over patented inventions.  Antitrust law seeks to ensure efficient competition, in part by restricting monopolistic behavior.  Perhaps the most scrutinized area of intersection between patent law and antitrust law is the proper treatment of “reverse payments,” also referred to as “pay-for-delay” settlements.  Arkansas Carpenters Health and Welfare Fund v. Bayer AG, 625 F.3d 779, 780 (2d Cir. 2010) (Pooler, J., dissenting).  These are settlement agreements in patent infringement litigation in which a patent holder pays the alleged infringer to concede the validity of the patent and refrain from entering the market.  Henry N. Butler & Jeffrey Paul Jarosch, Policy Reversal on Reverse Payments: Why Courts Should Not Follow the New DOJ Position on Reverse-Payment Settlements of Pharmaceutical Patent Litigation, 96 Iowa L. Rev. 57, 60 (2010).

Senators Chuck Grassley and Herb Kohl recently introduced legislation in Congress that would create a presumption that pay-for-delay deals in the pharmaceutical industry are illegal.  Additionally, there is currently a circuit split over the proper standard for determining whether reverse payment settlements are improper.  The Supreme Court has not spoken on the issue, and recently denied a petition for certiorari by the Plaintiffs-Appellants in Arkansas Carpenters Health and Welfare Fund v. Bayer AG challenging the reverse payment settlement in that case.  Amicus curiae supporting the petitioners included 32 state Attorneys General and the American Antitrust Institute.

This commentary will explain why Congress and the judiciary should continue to allow pioneer patent holders and firms challenging those patents to use reverse payment settlements to settle their disputes.  To that end, this commentary will explain the importance of recognizing the right to exclude granted by patent laws and discuss the judicial policy in favor of settlements.  Some courts have referred to this as the “exclusionary zone of the patent,” and have essentially found that because patents provide a monopoly, any anticompetitive effects stemming from the exclusion of generic manufacturers through settlements should be recognized as a valid outgrowth of rights inherent in the patent grant.

While recognition of those underlying policies provides significant deference to patent holders, it also provides an incentive for patent holders to conduct sham litigation to eliminate threats to the validity of weak patents.  Thus, Congress should amend the current regime to clarify that where a reverse payment is challenged, some scrutiny of the patent’s validity is necessary.  Further, Congress should amend the 180-day exclusivity period, currently granted only to the first generic firm to challenge a pioneer patent, to give a subsequent challenger the same benefit where the first challenger settles.  (more…)

Posted On May - 13 - 2011 Comments Off READ FULL POST

Written by Matt Gelfand
Edited by Harry Zhou
Editorial Policy

A major criticism of the current copyright system is the overbreadth of the protections it affords, in terms of duration, works covered, and uses covered. With the Copyright Act of 1976 and subsequent international treaties and legislation, copyright has become quasi-permanent, and breadth-limiting formalities such as notice and registration requirements have been eliminated.[1] Virtually any use of the creative expressive content in a work is subject to control by a copyright-holder,[2] and attempts to invoke the “Fair Use” exception can result in protracted legal disputes. The result is near-constant technical infringement of copyright, made bearable only by virtue of limited enforcement.

These concerns about breadth highlight the fundamental balance that an intellectual property system must strike between its goals, generally related to a creator or his/her work, and the ways in which it limits use of an idea or expression by the general public or another creator. Debates about copyright law often focus on the success of the copyright system at promoting the goals to which it is directed — incentivizing creation, rewarding creators, protecting artists’ personality interests in their work, and stimulating cultural development — in the context of a modern, networked society. Among these different goals, and among a diverse set of creators, different forms of copyright protection are justified.

Take breadth of protection, for example. A commentator concerned with incentives (the goal) for the creation of high-budget commercial films by movie studios (the users) might argue for a level of protection that is sufficiently strong to provide that incentive, but not so strong as to unnecessarily increase the difficulty of creating films down the line. A commentator concerned with the development of a cultural zeitgeist through the manipulation of popular symbols might argue for weak protections against derivative uses of the work, while at the same time recognizing that protections against verbatim copying provide a useful incentive to create the symbols themselves. The focus of this sort of criticism is on finding an ideal system that does the best job for a commentator’s favored goal or user.

But maybe we should be asking a more fundamental question: should copyright continue to take a one-size-fits-all approach? Perhaps the differently-motivated participants in our modern society would be best served by different copyright systems altogether. For creative professionals and corporations making a substantial investment of time, resources, and/or risk in a creative enterprise, the existing system of economic rights (with exceptions for unprofitable and socially beneficial uses[3]) is at least somewhat appropriate. But for the tortured artist who considers his work to be a reflection of his own personality, a strong system of moral rights may be better. For a fame-obsessed YouTube phenom, a right of attribution alone would suffice; a computer programmer who wants her work to keep serving society, on the other hand, would prefer robust copyleft-style protections to prevent the proprietization of downstream derivative works. A blogger writing purely for the satisfaction of expressing herself might not need any protection at all! The existing copyright system does a bad job serving most of these groups.

This comment begins with a description of the most well-known system of alternative rights designations: the Creative Commons (“CC”) licenses. Different CC licenses will be discussed in the context of the users who are likely to choose them and the real aims of those users. Next, some drawbacks of using the CC license system to carve different rights reservations out of the existing copyright system will be addressed. Finally, this comment will propose two solutions to the homogeneity of the existing system: a radical move to a heterogeneous copyright system, and a more modest change to the copyright registration system.[4] (more…)

Posted On May - 5 - 2011 Comments Off READ FULL POST

It’s once again that time of year: The Digest will be taking a short break from our regular coverage over the coming weeks as our Staff Writers take their spring examinations.

While we take our hiatus from regular coverage, we have the pleasure of re-introducing our Comments feature. Comments are longer opinion pieces on especially significant issues. These pieces are written entirely by members of our staff, on topics they believe warrant closer examination and study. From now until the week of May 15th, we will publish a Comment every week. We have some especially interesting pieces this May and we hope you enjoy them!

We’ll be back the week of May 15th with our usual coverage.

We sincerely hope you’ve enjoyed our work this year!

The Digest Staff

 

Posted On May - 2 - 2011 Comments Off READ FULL POST

Microsoft argues for a lower burden of proof for patent invalidity where prior art wasn’t before the PTO
By Abby Lauer – Edited by Matt Gelfand

Microsoft Corp. v. i4i Ltd. P’ship, No. 10-290 (U.S. 2011)
Transcript of Oral Arguments

On April 18, 2011, the Supreme Court heard oral arguments in Microsoft Corp. v. i4i Ltd. P’ship, a case involving a dispute over the evidentiary standard that must be met by a patent challenger in order to overcome the presumption of patent validity codified in 35 U.S.C. § 282. Microsoft’s position is that the standard should be reduced from one requiring clear and convincing evidence to one requiring a preponderance of the evidence, in the case where the evidence before the court is a prior art reference that was not considered by the PTO during patent prosecution. For further background on the case, see the Digest’s previous coverage of the proceedings at the Eastern District of Texas and the Federal Circuit.

Summaries and commentary on the oral arguments can be found at IPWatchdog and PatentlyO. (more…)

Posted On Apr - 22 - 2011 Comments Off READ FULL POST

Sony Settles Lawsuit with PlayStation 3 Hacker
By Vivian Tao – Edited by Chinh Vo

Sony Computer Entm’t Am. v. Hotz, No. CV11-0167 (N.D. Cal. Apr. 11, 2011)
Final Judgment hosted by Electronic Frontier Foundation

On April 11, 2011, the United States District Court for the Northern District of California entered a final judgment for plaintiff Sony Computer Entertainment America (“Sony”), granting Sony a permanent injunction against defendant George Hotz. The injunction prevents Hotz, a notorious hacker, from engaging in any unauthorized access to Sony products, circumventing security measures in those products, or trafficking and posting any information, service, or product that would lead to such circumvention.

While a motion to dismiss regarding Hotz’s claim over lack of personal jurisdiction is pending, this final judgment comes on the heels of a March 31 settlement agreement between Sony and Hotz. Both parties have agreed to accept this judgment and to waive their rights to appeal.

Ars Technica provides an overview of the case. PC World criticizes the judgment, stating that the injunction’s effect will be constrained by other sites that have already listed and can continue to include information from Hotz’s hacking efforts.

(more…)

Posted On Apr - 17 - 2011 1 Comment READ FULL POST
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