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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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Second Circuit Reverses Dismissal of Trademark Infringement Suit Against Google
By Debbie Rosenbaum – Edited by Stephanie Weiner

Rescuecom v. Google
Second Circuit, April 3, 2009, 06-4881-cv
Opinion
(hosted by EFF)

On April 3, 2009, the Court of Appeals for the Second Circuit vacated the District Court for the Northern District of New York’s dismissal of a trademark infringement suit against Google by Rescuecom, Corp., a computer repair firm.

At issue was Google’s AdWords program, which allows advertisers to purchase ads based on the appearance of another (often competing) company’s name in search terms, thus allowing the purchaser’s ads to appear in the search results alongside links to the searched-for company. Also in dispute was Google’s Keyword Suggestion Tool, which recommends potential keywords to advertisers for use in the AdWords program. The key issue was whether Google’s use of Rescuecom’s trademark in both programs constitutes a “use in commerce” under § 1127 of the Lanham Act.

Ars Technica explains that, having distinguished away precedent, the court determined that Google was appropriating trademarked terms. Google’s claim – that it was only using these terms internally as part of its ad-placing algorithm – was dismissed as disingenuous because its Keyword Suggestion Tool was specifically suggesting trademarks to potential ad buyers. The Wall Street Journal Law Blog notes that this may add some clarity to the jumbled law on the use of keywords. (more…)

Posted On Apr - 11 - 2009 Comments Off READ FULL POST

By Evan Kubota

The JOLT Digest is proud to reintroduce the Flash Digest! Flash Digest posts will provide brief summaries of recent news and developments in law and technology, along with links to more in-depth discussions. Flash Digest will allow us to expand our coverage to legal issues that have not yet reached the courts or passed through Congress, but that will likely be of interest to our readers. We have posted Flash Digests in the past, but we hope to make them a more regular occurrence. We hope you find Flash Digest interesting and informative!

- The Digest Staff Editors

Congress Holds Hearing on Digital Piracy

Losses from piracy of copyrighted movies and music amount to $20 billion each year, industry executives and House members asserted at a Congressional field hearing in Los Angeles on Monday. The New York Times describes the panel as recounting “what appeared to be a largely failed effort to stem the illegal sale of copyrighted material in an increasingly wired world.”

Associated Press Declares Policy of Protecting its Content from “Misappropriation”

As reported in the New York Times, the Associated Press has declared it will pursue “misappropriation” and infringement claims against those who do not obtain permission before using its headlines and content. Ars Technica explains that misappropriation, a doctrine developed by the Supreme Court in the 1918 case of International News Service v. Associated Press, effectively grants a short-term monopoly over “hot news” to agencies. Now, more than ninety years later, AP is suing competitor All Headline on a misappropriation theory, alleging that All Headline exploits AP’s stories by rewriting and publishing them without doing its own reporting. The case, Associated Press v. All Headline, is pending in the Southern District of New York.

Proposed Legislation Would Authorize the President to Declare “Cybersecurity Emergency” and Close Portions of the Internet

The Cybersecurity Act of 2009, a bill proposed by Senators Rockefeller (D-W.Va.) and Snowe (R-Maine) last Wednesday, states that the President may “declare a cybersecurity emergency and order the limitation or shutdown of Internet traffic to and from any compromised Federal government or United States critical infrastructure information system or network.” The Act also requires the President to designate an agency to coordinate the “response and restoration” of any such network affected by a “cybersecurity emergency declaration.” In a statement, Senator Snowe called the legislation necessary to avoid risking a “cyber-Katrina.” Mother Jones reports that advocacy groups, including the Electronic Frontier Foundation, have raised concerns about the proposed legislation’s effect on Internet users’ privacy rights.

Posted On Apr - 8 - 2009 Comments Off READ FULL POST

District Court Applies Bilski to Deny Validity of Business Method Patent Claims
By Evan Kubota – Edited by Caitlyn Ross

Cybersource Corp. v. Retail Decisions, Inc.
N.D. Cal., March 26, 2009, No. C. 04-03268 MHP
Opinion

On March 26, 2009, the United States District Court for the Northern District of California granted defendant Retail Decisions’ motion for summary judgment on the invalidity of two business method patent claims. The ruling invalidated the claims asserted in CyberSource Corp. U.S. Patent No. 6,029,154, titled “Method and system for detecting fraud in a credit card transaction over the Internet.”

California-based CyberSource sued U.K.-based Retail Decisions in 2004, claiming that Retail Decisions’ fraud prevention software products infringed the patent owned by CyberSource.  Retail Decision moved for summary judgment, arguing that CyberSource’s patent failed the Bilski test.

In last year’s In re Bilski decision (covered here by Digest), the Federal Circuit articulated a patentability test requiring that a process either be tied to a machine or apparatus or involve a transformation.  Applying the Bilski test, Judge Marilyn Hall Patel held that plaintiff CyberSource’s claims, both describing processes for detecting credit card fraud in Internet transactions, failed to meet either prong of the “machine-or-transformation” test.

The 271 Patent Blog and patentability analyze the decision in greater detail. Payment Industry Insights has commentary from Retail Decisions’ CEO and its lead counsel. (more…)

Posted On Apr - 5 - 2009 Comments Off READ FULL POST

Federal Circuit Grants U.S. Patent and Trademarks Office Power to Limit Patent Applications
By Sharona Hakimi – Edited by Caitlyn Ross

Tafas v. Doll
Federal Circuit, March 20, 2009, No. 2008-1352
Opinion

On March 20th, the Federal Circuit affirmed in part and vacated in part a decision by the United States District Court for the Eastern District of Virginia in a suit that challenged rules proposed by the U.S. Patent and Trademarks Office (USPTO). Tafas, the plaintiff, contested the USPTO’s proposed rules that limited the number of continuation applications petitioners may file and the number of claims they can include within each application. Judge Prost, writing on behalf of the Federal Circuit, held that the new rules were procedural and thus “within the scope of the USPTO’s rulemaking authority.” However, the case was remanded to determine if the rules should be invalidated on other grounds. The court’s decision confirmed that USPTO does have the power to change its rules and restrict the way patent applications may be filed.

Patent Docs summarizes the case and outlines the Federal Circuit decision. Patently-O highlights and explains the proposed changes to USPTO rules 78 (Continuations), 114 (Requests for Continued Examinations), and 75 and 265 (Claims). Bnet Pharma discusses the potential effect of the decision on drug companies who rely heavily on their ability to patent chemicals. (more…)

Posted On Apr - 3 - 2009 Comments Off READ FULL POST

Federal Circuit Penalizes ICU Medical, Inc. and Counsel Paul Hastings for Frivolous Patent Infringement Suit
By Jamie Wicks – Edited by Joshua Gruenspecht

ICU Medical, Inc. v. Alaris Medical Systems, Inc.
Federal Circuit, March 13, 2009, No. 2008-1077
Opinion

On March 13th, the Federal Circuit unanimously affirmed the United States District Court for the Central District of California, which had granted summary judgment in favor of Alaris in a suit in which ICU claimed infringement of its patents for spiked medical valves used in intravenous (IV) fluid transmission. Judge Kimberly A. Moore, writing for the Federal Circuit, granted summary judgment of non-infringement against claims by ICU that the Alaris devices were “spiked” according to the terms of the patents, granted summary judgment of invalidity against claims by ICU that its patents covered spikeless and tubed devices, and awarded $4.6 million in attorney fees to Alaris and Rule 11 sanctions against ICU.

The Patent Prospector summarizes the Federal Circuit’s opinion. Dewipat details the section of the opinion regarding the spiked medical valve claims. Law.com highlights the Rule 11 sanctions, quoting patent attorney Neil Smith, who says that sanctions are “really unusual” in patent cases.

(more…)

Posted On Mar - 28 - 2009 Comments Off READ FULL POST
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