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Judge says eBay can keep using 'buy it now'
Court Feed News | 2007/07/31 16:32

A U.S. district court judge has ruled that eBay Inc. can continue to use its "buy it now" feature even though a patent infringement ruling against the feature continues to stand. Judge Jerome Friedman of the U.S. District Court for the Eastern District of Virginia denied an injunction request by MercExchange LLC, which successfully sued eBay for patent infringement in 2003. But Friedman also said he would move forward with MercExchange's efforts to collect the US$25 million patent infringement award against eBay.

If Friedman decides eBay has not designed around the patent, MercExchange could collect "hundreds of millions" of dollars in ongoing infringement fees, said Gregory Stillman, MercExchange's lawyer and a partner in the Hunton & Williams LLP law firm.

"The functionality of 'buy it now' is exactly the same as it was four years ago," Stillman said Monday.

MercExchange spokesman Michael Caputo called eBay a "rank infringer."

An eBay representative wasn't immediately available for comment.

MercExchange may appeal the district court decision on the injunction, Stillman said. That would continue a long battle between the two companies, one in which the U.S. Supreme Court has gotten involved.

The district court originally denied MercExchange's request for a permanent injunction, but the Virginia company appealed the ruling.

The U.S. Court of Appeals for the Federal Circuit took the case and granted MercExchange an injunction, continuing the court's long-standing practice of granting injunctions in nearly every patent infringement case. But the Supreme Court, in May 2006, overturned the appeals court ruling, saying judges must weigh several factors before granting an injunction.

The Supreme Court sent the case back to Friedman to determine whether an injunction was warranted.

Friedman ruled that the injunction request did not pass the four-part test now required by the Supreme Court. MercExchange has tried to sell patent licenses and its patents to other companies, suggesting that monetary damages are adequate, Friedman wrote.

Since the original judgment in the case, U.S. Patent and Trademark Office has also issued two interim findings that the MercExchange patent is invalid, Friedman wrote.

A permanent injunction would also hurt the public, the judge wrote.

"EBay is a multi-billion dollar corporation whose online marketplace brings together tens of millions of buyers and sellers around the world and eBay unquestionably has a substantial impact on the United States' economy," he wrote. "In contrast, MercExchange is a company with two employees that work out of their homes and appear to specialize in litigation and obtaining royalties based on the threat of litigation."

The district court's ruling on the injunction isn't surprising, given the Supreme Court decision and district court's original ruling, said Sarah King, a partner in Howard Rice Nemerovski Canady Falk & Rabkin PC's intellectual property litigation group in San Francisco.

But the ruling is part of a "creeping sea change" in patentholder rights since the Supreme Court ruling, she said. "No longer will patentholders necessarily have the power to shut a company down for patent infringement," she said. "It really removes from the quiver of the patentholder a very powerful arrow that they hold against infringers."



Taking Aim at D.C.’s Gun Law
Attorney Blogs | 2007/07/31 14:33
The District of Columbia has the most restrictive gun laws in the country. But that’s a distinction the nation’s capital will soon lose—if Robert Levy prevails. Levy was born in Washington, but left years ago; a resident of Naples, Fla., who made a fortune as an investment analyst, he is now a senior fellow in constitutional studies at the libertarian Cato Institute. A critic of what he sees as unnecessary government regulation, he rounded up six D.C. plaintiffs who either owned firearms or wanted to, for self-protection, and helped bankroll their challenge to the city’s gun law—which makes it illegal to own or possess an unregistered handgun (D.C. stopped registering handguns back in 1978). The city permits registered “long” guns like shotguns and rifles, but they must be disassembled or disabled with trigger locks, and it’s illegal to use a firearm of any kind in self-defense—even in the owner’s home.

The suit, which is being bankrolled by Levy, has been successful so far; in March, the U.S. Court of Appeals for the D.C. Circuit found the gun law unconstitutional. Earlier this month, D.C. officials announced plans to take the case (Parker v. District of Columbia) to the Supreme Court, in hopes of having the appeals court’s ruling overturned. If the high court agrees to hear Parker, it could finally settle one of the biggest arguments in constitutional law: whether the Second Amendment’s right to “keep and bear arms” is an individual right or was meant to apply only to members of a “well-regulated militia.” NEWSWEEK’s Daren Briscoe spoke with Levy about the suit’s prospects, and what drove him to bring it to court. Excerpts:

NEWSWEEK: Why did you file this suit?

Robert Levy:
First, because I’m a fervent believer in the Constitution, including the Second Amendment, and I read the Second Amendment as securing an individual’s right to keep and bear arms. In most jurisdictions, the courts have read the Second Amendment only to protect members of militias.  In D.C., that issue has not been resolved.  I saw an opportunity, with my two co-counsels, to vindicate Second Amendment rights and to establish a precedent that, if it reached the Supreme Court, would be applicable across the nation.

You don’t own any guns personally.  Why not?

While I believe the Constitution secures my right to own guns, as a practical matter, I don’t sense the need to do so.  I live in a safe area, a relatively affluent area, and crime isn’t a major issue where I live.  I don’t have the same need for self-defense as the six plaintiffs in the Parker case.

Why is the Second Amendment so important?

Originally it was important as a protection accorded to American citizens against a tyrannical government. But even before the Constitution was written, even before the U.S. government was formed, the right existed.  It was a means of self-defense, and today the right to bear arms protects us against predators.  It’s important to note that the Second Amendment doesn’t grant a right to bear arms.  It says the right to keep and bear arms “shall not be infringed,” meaning that it already existed.

How expansive is your view of what the Second Amendment protects?  What if I want to walk around carrying a fully automatic machine gun?

The right to keep and bear arms, like all other rights, is not absolute.  Under the First Amendment, we can’t incite other people to riot. Under the Fourth Amendment, reasonable searches are permitted.  Well, in the case of the Second Amendment, there can be reasonable regulations.  It’s quite clear that some weapons can be regulated, weapons of mass destruction, for instance.  Some persons can be regulated against bearing arms, minors for instance.  Some uses can be and are regulated.  Uses of guns in crimes, for instance.  The question is what constitutes reasonable regulation.

D.C.’s mayor, Adrian Fenty, says that the gun laws have saved countless lives by keeping guns out of the hands of those who would hurt themselves or others.  What's your response to that?

I've looked at the evidence.  I've taught regression analysis and statistical inference, so I know a little bit about how to understand what it means, and the evidence is that gun laws do not help.  Gun restrictions tend to increase violence.  So, on both a constitutional basis and as a general matter, these gun restrictions have been counterproductive.  The evidence is that more gun laws lead to increased crime and more guns lead to decreased crime.

You're paying for this case out of your own pocket.  How much has it cost you?
I have paid for the whole thing, but a good part of this case was put together on donated time on the part of the attorneys involved.  My co-counsel Clark Neily and I are working on this pro bono, and our lead counsel, Alan Gura, is working at subsistence-level wages.  But I've spent a sizable sum of money, a substantial five-figure number.




Ken Starr’s Law Firm Gives More to Hillary Clinton
Headline News | 2007/07/31 13:36

Attorneys at the law firm Kirkland & Ellis – home to Whitewater prosecutor Kenneth Starr – have donated more money to Hillary Clinton’s presidential campaign than to all the top Republican candidates combined.

Lawyers at Chicago-based Kirkland – also home to Bush administration official Jay Lefkowitz – have contributed $111,950 to Clinton and another $82,651 to fellow Democrat Barack Obama. Donations to Republicans Rudy Giuliani, Mitt Romney and John McCain total $84,750.

Kirkland attorneys gave 28 percent more to George Bush than to Al Gore in 2000, and 34 percent more to Bush than to John Kerry in 2004, Bloomberg.com reports.

In an even more glaring example of politics making for strange bedfellows, lawyers at the firm Jones Day, which represents the Republican National Committee, have contributed more than three times as much to Clinton, Obama and John Edwards than to GOP candidates.

"Firms want to be on the good side of who they think is going to be the incumbent, whether or not that person is good for business,” Bruce MacEwen, a nonpartisan legal consultant in New York, told Bloomberg. "The conventional wisdom is that the Democrats are going to win the White House.”

The largest contribution to Clinton’s campaign came from a law firm – $241,220 from the attorneys at DLA Piper. The fundraising efforts there were led in part by Jim Blanchard, a partner and former governor of Michigan.

Blanchard told Bloomberg that the shift to Democrats "has a lot to do with the war in Iraq, Guantanamo, torture” and controversies surrounding Attorney General Alberto Gonzales.

© NewsMax 2007. All rights reserved.



GOP senator wants probe; Spitzer says no
U.S. Legal News | 2007/07/31 10:27
Gov. Eliot Spitzer said there is no need for a deeper investigation into his aides' roles in a scheme to discredit a lead political rival, something the head of the Senate Investigations Committee called for Monday.

"Given that the attorney general and inspector general have closed their investigations and found no violations of law, the appointment of a special prosecutor is unnecessary," Spitzer spokeswoman Christine Anderson said.

Investigations Committee Chairman George Winner, a Republican senator from Elmira, said naming a special prosecutor was "the bipartisan, responsible way to move forward."

Winner said he was surprised Spitzer "continues to stonewall," adding, "I just think that's unfortunate because this whole thing will continue to fester."

In a report last week, Attorney General Andrew Cuomo found that two top Spitzer aides had, with the help of the State Police, gathered information about Senate Majority Leader Joseph Bruno's use of state vehicles in New York City and released it to the media. They were attempting to smear Bruno's reputation, the report said. The aides did not break any laws, nor did the GOP senator's use of the helicopter, Cuomo found.

Spitzer, a Democrat, has said repeatedly that he did not know what his staffers had done. He apologized and disciplined two of them.

Monday, Winner said he sent a letter to Spitzer earlier in the day requesting the governor appoint Cuomo as a special prosecutor "with full subpoena power" to investigate the administration's alleged misuse of the State Police.

In the letter, he said such an inquiry could assure the public Spitzer was not involved.

Winner said the special prosecutor could also be someone appointed by Cuomo.

The scandal came to light after Cuomo released his report last week that two of Spitzer's appointees ?Darren Dopp, communications director, and Richard Baum, secretary to the governor ?declined to be interviewed by Cuomo's investigators. Instead, they submitted sworn statements. Baum has said he was not aware of what Dopp, who was placed on unpaid leave indefinitely, and William Howard, deputy homeland security secretary, were doing. Howard has been reassigned to a position outside Spitzer's office.

Last week, the state Ethics Commission announced its own investigation into the matter.

But Winner questioned the commission's independence, noting members are appointed by the governor and the body has limited jurisdiction. Spitzer has made one appointment to the five-member commission and nominated a current member when he was attorney general.

Meanwhile, Anderson said the governor's office has turned over records to the Ethics Commission. She said the records were delivered Friday and are the same e-mails and other documents turned over to the Attorney General's and Inspector General's offices. They include e-mails involving Baum.

The Attorney General's Office declined to comment on Monday's developments. "The findings of our report speak for themselves," said Jeffrey Lerner, a spokesman for Cuomo.

Bruno said in a statement Monday that he was disappointed the governor rejected the call for a special prosecutor.

"In light of this, the Senate will continue to review all options that are available to assure that we get to the truth and to assure that all who were involved in this unfortunate situation are held accountable."



Sidley Austin Elevates 11 to Chicago Partner
Law Firm News | 2007/07/30 21:25
Eleven lawyers in the Chicago office of Sidley Austin LLP are among the 36 associates and counsel elevated to partnership in the firm, which now has 659 partners in offices in the United States, Europe, Asia and Australia.

The new Chicago partners are Michael C. Andolina, Financial Services/Consumer Class Actions;
Jeannette K. Arazi, Structured Finance and Securitization;
John A. Chamberlin, Real Estate;
Anny C. Huang, Structured Finance and Securitization;
Kenneth P. Kansa, Bankruptcy/Corporate Reorganization;
Christopher P. Lokken, Investment Funds, Advisers and Derivatives;
Brian A. McAleenan, Communications Regulatory;
Daniel J. Neppl, Insurance/Reinsurance Disputes;
Clinton R. Uhlir, Insurance;
Robert L. Verigan, M&A and Private Equity; and
J. Randal Wexler, Securities Litigation and S.E.C. Enforcement.

"All of our new partners embody the client service values and collegial
culture of Sidley, in addition to being exceptionally talented lawyers,"
said Thomas A. Cole, chair of the firm's Executive Committee. "We are proud
to have them join Sidley's partnership."

   "It is gratifying to have these accomplished lawyers join Sidley's
partnership ranks because they truly deserve and have earned this honor,"
added Charles W. Douglas, chair of the firm's Management Committee. "They
have earned the respect of their clients and colleagues. We welcome them to our partnership and appreciate their continued dedication to the firm."
  
Michael C. Andolina, 34, is a partner in the Financial
Services/Consumer Class Actions practice. His practice includes a diverse
range of civil litigation matters at the trial and appellate levels in both
state and federal courts, with an emphasis on consumer fraud class action
defense and white collar civil litigation.
   Mr. Andolina, who had been an associate, received his J.D. from The
University of Chicago Law School. He received his A.B., magna cum laude,
Phi Beta Kappa, from Georgetown University.
  
Jeannette K. Arazi, 37, is a partner in the Structured Finance and
Securitization practice. Ms. Arazi's experience includes the representation
of commercial paper and medium-term note conduits and financial
institutions in the acquisition or financing of various types of assets
including trade receivables, motor vehicle leases, franchise loans,
timeshare interests and other financial assets.
   Ms. Arazi, who had been an associate, received her J.D., magna cum
laude, Order of the Coif, from the University of Minnesota Law School. She
received her B.A., magna cum laude, from Macalester College.
 
John A. Chamberlin, 37, is a partner in the Real Estate practice. His
practice includes commercial real estate transactions of all types,
including acquisitions, dispositions, financing and leasing transactions.
   Mr. Chamberlin, who had been an associate, received his J.D., magna cum
laude, Order of the Coif, from the University of Illinois College of Law
where he was notes editor of the Law Review. He received his B.A. from
Brigham Young University.
  
Anny C. Huang, 33, is a partner in the Structured Finance and
Securitization practice. Her practice includes representation of major
financial institutions, public and private corporations, institutional bond
holders, hedge funds and other creditors and investors in connection with
leverage financing for private equity, real estate and hedge funds, capital
call facilities, syndicated and structured loans, mezzanine financings,
collateralized debt obligations, securitizations, work-outs and
restructurings and single-currency, multi-currency and cross-border
transactions.
   Ms. Huang, who had been an associate, received her J.D. from Columbia
University School of Law where she was a Kent Scholar and served on the Law Review. She received her B.A. and B.S., with highest honors, from the
University of California - Berkeley.
  
Kenneth P. Kansa, 34, is a partner in the Bankruptcy/Corporate
Reorganization practice. Mr. Kansa's practice encompasses all areas of
corporate reorganization and bankruptcy matters, focusing on the
representation of various parties in complex chapter 11 cases.
   Mr. Kansa, who had been an associate, received his J.D. from the
University of Virginia School of Law, his M.A. from Cleveland State
University and his B.A. from George Washington University.
 
Christopher P. Lokken, 36, is a partner in the Investment Funds,
Advisers and Derivatives practice. He advises and represents clients in
federal securities, derivatives, futures related regulatory and corporate
matters with respect to alternative investment funds, including offshore
and domestic hedge funds, commodity pools and alternative asset strategy
funds sold on a retail basis in Japan.
   Mr. Lokken, who had been an associate, received his J.D., cum laude,
Order of the Coif, from Northwestern University School of Law where he was
coordinating articles editor of the Northwestern University Law Review. He
received his M.A. from the University of Chicago, and his B.A., with
distinction, from Indiana University.
 
Brian A. McAleenan, 34, is a partner in the Communications Regulatory
practice. His practice involves commercial and regulatory litigation and
related matters.
   Mr. McAleenan, who had been an associate, received his J.D., magna cum
laude, Order of the Coif, from the University of Illinois College of Law
where he was on the Law Review. He received his B.S., cum laude, from the
University of Illinois.
 
Daniel J. Neppl, 38, is a partner in the Insurance/Reinsurance Disputes
practice. He regularly arbitrates and litigates reinsurance disputes,
representing both ceding companies and reinsurers in the property and
casualty areas in matters involving both traditional and non-traditional
reinsurance. Prior to joining the firm, Mr. Neppl clerked for the Honorable
C. Thomas White, Chief Justice of the Nebraska Supreme Court.
   Mr. Neppl, who had been counsel, received his J.D., cum laude, from
Creighton University School of Law, where he was executive editor of the
Creighton Law Review. He received his B.S., with honors, from the
University of Iowa.
  
Clinton R. Uhlir, 35, is a partner in the Insurance practice. He
focuses his practice on the representation of issuers, underwriters and
purchasers of financial products and the structuring, creation and
operation of structured investment vehicles (SIVs), asset-backed commercial
paper (ABCP) conduit programs, derivative product companies (DPCs),
including credit derivative product companies (CDPCs), and other types of
structured finance operating companies (SFOCs).
   Mr. Uhlir, who had been an associate, received his J.D. from The
University of Chicago Law School and his A.B., cum laude, from Princeton
University.
  
Robert L. Verigan, 32, is a partner in the M&A and Private Equity
practice. His principal areas of practice include mergers and acquisitions,
corporate finance and venture capital/private equity investments. He has
also worked with issuers and underwriters in a variety of initial and
follow-on public offerings, including over a dozen S-1 offerings and
private placements of securities.
   Mr. Verigan, who had been an associate, received his J.D., cum laude,
from The University of Chicago Law School. He received his B.A., cum laude,
from Duke University.
  
J. Randal Wexler, 34, is a partner in the Securities Litigation and
S.E.C. Enforcement practice. His practice focuses on complex internal
corporate investigations, corporate accounting fraud and the defense, both
individual and corporate, of complex securities fraud class actions and
related violations of ERISA.
   Mr. Wexler, who had been an associate, received his J.D., cum laude,
from The University of Michigan Law School. He received his B.A. from Yale
University.
  
Sidley also named the following to partnership in its other offices:
Brussels -- Arnoud R. Willems; Frankfurt -- Jerome S. Friedrich; Hong Kong
-- Charles Allen; London -- Jonathan Edge, Theresa D. Kradjian and Paul
Matthews; Los Angeles -- Aimee M. Contreras-Camua, Sandra S. Fujiyama,
Kelly L.C. Kriebs, Jennifer A. Ratner and Robert M. Stone; New York --
Laura M. Barzilai, Madeleine J. Dowling, Lynn A. Dummett, Isaac S. Greaney,
Joseph Kelly, Dennis M. Manfredi and Aryeh H. Zarchan; San Francisco --
Teague I. Donahey; Tokyo -- Akira Nakazawa; Washington, D.C. -- Kevin J.
Campion, Mark B. Langdon, Eric A. Shumsky, Eric M. Solovy and John K. Van
De Weert, Jr.
   Sidley Austin LLP is one of the world's largest full-service law firms,
with more than 1,700 lawyers practicing in 16 U.S. and international cities
including Beijing, Brussels, Frankfurt, Geneva, Hong Kong, London,
Shanghai, Singapore, Sydney and Tokyo. In 2006, Sidley was named to Legal
Business' Global Elite, their designation for "the 15 finest law firms in
the world." Sidley was again named the number one law firm for overall
client service by BTI, a Boston-based consulting and research firm, in
2007. BTI has also named Sidley to their Client Service Hall of Fame as one
of only two law firms to rank in the Client Service Top 10 for six years in
a row.
   For purposes of the New York State Bar rules, this press release may be
considered Attorney Advertising and the headquarters of the firm are Sidley
Austin LLP 787 Seventh Avenue, New York, NY 10019, 212.839.5300 and Sidley
Austin LLP One South Dearborn, Chicago, IL 60603, 312.853.7000. Prior
results described herein do not guarantee a similar outcome.


Dentist's Practical Joke Leads Him to Court
Lawyer Blog News | 2007/07/30 17:18
For the purposes of a practical joke, an oral surgeon exploited the vulnerability of a patient under general anesthesia and had to pay her $250,000 as settlement. Then, he sued the insurance company that refused to defend his egregious behavior. As a result of the high court's ruling Thursday, he now gets back the $250,000, plus another $750,000 for damages and attorney fees. The jokester wins.

The Supreme Court ruled 5-4 in favor of Robert Woo, who had sued Fireman's Fund Insurance Co. The company refused to defend Woo under his policy because it said the not-very-funny practical joke Woo played on his patient did not qualify as "dental services."

Woo's surgical assistant had asked him to replace two of her teeth with implants. Woo, who often teased the assistant about her pot-bellied pig, had the implants made — as well as two extras in the shape of boar tusks. While the assistant was sedated, Woo removed her oxygen mask, put the tusks in her mouth and took pictures, some with her eyes pried open.

The employee was so unnerved when she saw the photos, she did not return to work and sued.

The most stunning aspect of the decision was the majority's opinion: "We conclude that Fireman's had a duty to defend under Woo's professional liability provision because the insertion of boar tusk flippers in [the patient's] mouth conceivably fell within the policy's broad definition of the practice of dentistry."

The general practice of dentistry includes humiliating vulnerable patients?

Thank Justices Mary Fairhurst, Richard Sanders, Bobbe Bridge, Tom Chambers and Susan Owens for that wisdom. They overturned a state Appeals Court ruling that sided with Fireman's.


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