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Newegg Wins Patent Troll Case After Court Delays

By Kasey Wang – Edited by Yunnan Jiang and Travis West

The District Court for the Eastern District of Texas recently issued a final judgement for online retailer Newegg, twenty months after trial, vacating a $2.3 million jury award for TQP. TQP, a patent assertion entity commonly known as a “patent troll,” collected $45 million in settlements for the patent in question before Newegg’s trial.

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The Evolution of Internet Service Providers from Partners to Adversaries: Tracking Shifts in Interconnection Goals and Strategies in the Internet’s Fifth Generation

By Robert Frieden – Edited by Marcela Viviana Ruiz Martinez, Olga Slobodyanyuk and Yaping Zhang

In respone to increasing attempts by Internet Service Providers to target customers who trigger higher costs for rate increases, the FCC and other regulatory agencies worldwide have stepped in to prevent market failure and anticompetitive practices. This paper will examine new models for the carriage of Internet traffic that have arisen in the wake of these changes.

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The Global Corporate Citizen:  Responding to International Law Enforcement Requests for Online User Data 

By Kate Westmoreland – Edited by Yunnan Jiang

This paper analyses the law controlling when U.S.-based providers can provide online user data to foreign governments. The focus is on U.S. law because U.S. dominance of internet providers means that U.S. laws affect a large number of global users. The first half of this paper outlines the legal framework governing these requests. The second half highlights the gaps in the law and how individual companies’ policies fill these gaps.

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3D Printing, Net Neutrality, and the Internet: Symposium Introduction

By Deborah Beth Medows – Edited by Yaping Zhang

Jurists must widely examine the pervasive challenges among the advents in Internet and computer technology in order to ensure that legal systems protect individuals while  encouraging innovation.  It is precisely due to the legal and societal quagmires that 3D printing and net neutrality pose that ideally position them as springboards from which to delve into broader discussions on technology law.

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A Victory for Compatibility: the Ninth Circuit Gives Teeth to RAND Terms

By Stacy Ruegilin – Edited by Ken Winterbottom

Microsoft won a victory in the Ninth Circuit last Thursday after the court found that Motorola, a former Google subsidiary, had breached its obligation to offer licenses for standards-essential technologies at reasonable and non-discriminatory rates. The court affirmed a $14.52 million jury verdict against Motorola for the breach.

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Minnesota Jury Awards Nearly $2 Million in RIAA File-Sharing Suit

By Anthony Kammer-Edited by Amanda Rice
RIAA/Capitol v. Thomas-Rasset

On Thursday, June 18, 2009, a federal jury in Minneapolis, MN returned a $1.92 million verdict against Jammie Thomas-Rasset for willfully infringing the copyrights of twenty four songs she had made available for download on Kazaa, a file-sharing program. The suit, brought by the Recording Industry Artists of America (“RIAA”), involved copyrights owned by subsidiaries of four major recording companies, Warner Music Group, Universal Music Group, EMI, and Sony Music Entertainment.

ArsTechnica provides a full account of the trial. IT Blogwatch provides a compilation of some of the blog coverage of this case. As reported by Wire, several copyright academics have suggested that the ‘make available’ standard was not met in this case. (more…)

Posted On Jun - 22 - 2009 Comments Off READ FULL POST

California District Court Strikes at “Patent Trolling”

By Tyler Lacey – Edited by Amanda Rice
Diagnostic Systems Corp. v. Symantec Corp., June 5, 2009, No. SACV 06-1211 DOC (ANx) consolidated with No. SACV 07-960 DOC (ANx). Opinion

The United States District Court for the Central District of California granted in part defendant MicroStrategy’s motion requesting a more detailed statement of how its software products infringe on plaintiff Diagnostic Systems Corporation’s (“DSC”) patents, denying only MicroStrategy’s request for monetary sanctions.

The United States District Court for the Central District of California held that DSC must serve a supplemental answer to one of MicroStrategy’s interrogatories that includes more detailed Preliminary Infringement Contentions (“PICs”) within fifteen days. In so holding, the district court called DSC’s current PICs “vague” and “unacceptable,” especially given DSC’s status “as a company whose sole business is to enforce its patents.” MicroStrategy had given DSC’s software consultants copies of the allegedly infringing programs’ source code almost a year prior to the motion, but DSC had still failed “to provide PICs that explain how MicroStrategy’s source code infringes on the claims of DSC.” According to the court, the “bottom line” is that “after a plaintiff-patentee has had a reasonable opportunity to review the source code for the defendant’s accused software product, the patentee’s time for trolling the proverbial waters for a theory of infringement comes to an end.”

Peter Zurba provides an overview of the decision. (more…)

Posted On Jun - 22 - 2009 Comments Off READ FULL POST

By Sharona Hakimi

Senators Urge FCC to Carefully Examine Exclusive Cell Phone Deals

On June 16, Ars Technica reported that senators wrote a letter to the FCC voicing concern over exclusivity agreements between service providers and phone manufacturers. The four senators who signed the letter – Senators John Kerry (D-MA), Roger Wicker (R-MS), Byron Dorgan (D-ND), and Amy Klobuchar (D-MN) – expressed particular concern as to whether the deals restrict consumer choice regarding handsets and geographic regions. They also noted that the agreements may disadvantage competing smaller carriers and discourage new innovation. According to the letter, the “Senate Committee on Commerce, Science and Transportation will convene a hearing this week to examine issues confronting wireless consumers” and decide if legislative action is necessary. Although the iPhone’s exclusivity agreements have garnered the most attention, the letter considers all cell phone carriers.

Microsoft Files Suit After Finding Evidence of Click Fraud

On June 16, the New York Times reported that Microsoft sued three individuals and several corporations for $750,000 in damages for click fraud – manipulating clicks on online advertisements. After noticing suspicious spikes in traffic from auto insurance and World of Warcraft web advertisements, Microsoft began an investigation that eventually uncovered an alleged click fraud manipulation scheme. Microsoft’s complaint alleges that the defendant directed traffic to his competitors’ Web sites so they would pay for the clicks and exhaust their advertising budgets. Jeremy Fain, a vice president of Interactive Advertising Bureau, said that although there is much precedent for mail and wire fraud, there is little regarding internet fraud. He went on to say that this case may “create more of a legal precedent, and more of a legal library of cases to draw from in the future.”

EU Seizure of Indian Drugs Hinders Medicine Dispersal

According to a recent report by Intellectual Property Watch, an increase in European seizures of Indian medicines believed to infringe intellectual property rights has triggered concerns that there is a strategic pattern in enforcement. On June 16, Spicy IP reported that India has recently protested to the TRIPS Council, expressing strong disapproval of EU’s controversial regulations and demanding more transparency of the various seizures. In May, German officials held about 3 million pounds of Amoxicillin on suspicion of a trademark infringement, delaying shipment to the Pacific by 4 weeks. “These random seizures seriously impact our ability to service the healthcare needs of people living in developing countries in a timely manner,” according to a drug supplier spokesperson. The EU claims that it is merely trying to reduce the “fast growing and dangerous” problem of counterfeits in developing countries.

Posted On Jun - 20 - 2009 Comments Off READ FULL POST

Fame Helps Sales Director Survive Bon Jovi’s Motion to Dismiss

By Jad Mills – Edited by Caitlyn Ross
AFL Philadelphia LLCl v. Krause, June 4, 2009, No. 09-614.
Slip Opinion hosted by Exclusive Rights.

On June 4, 2009, Judge Baylson of the Eastern District of Pennsylvania denied Philadelphia Soul’s motion to dismiss defendant Joe Krause’s counterclaims for trademark infringement and misappropriation of name in AFL Philadelphia LLC v. Krause. The judge allowed both counterclaims to go forward because Krause had sufficiently alleged that his name had acquired the necessary “secondary meaning” for trademark protection under the Lanham Act.

Ex©lusive Rights and Shannon Duffy provide summaries of the case, paying particular attention to Judge Baylson’s inclusion of Bon Jovi song references in the opinion. An earlier post by Ex©lusive Rights summarizes the ongoing Pennsylvania State Court litigation between the same parties.  (more…)

Posted On Jun - 14 - 2009 Comments Off READ FULL POST

Federal Circuit Finds No Federal Jurisdiction Over Patent Claim

By Debbie Rosenbaum – Edited by Caitlyn Ross 
Larson v. Correct Craft, June 5, 2009 No. 2008-1208
Opinion hosted by The United States Court of Appeals for the Federal Circuit

On June 5, the Federal Circuit vacated the judgment of the district court in Larson v. Correct Craft and remanded with instructions to transfer the case back to state court based on lack of subject matter jurisdiction pursuant to 28 U.S.C. § 1338(a).  The court held that because plaintiff Larson assigned his rights to the invention at issue, he did not have standing to sue to correct inventorship under 35 U.S.C. § 256.  The appeal came from the United States District Court for the Middle District of Florida, which granted summary judgment in favor of defendants Correct Craft, Inc., William Snook, and Robert Todd.

IP Watchdog provides an overview of the Federal Court’s decision and PATracer gives an overview of the district court’s ruling. (more…)

Posted On Jun - 14 - 2009 Comments Off READ FULL POST
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Newegg

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