Tag Archives: litigation

Imports of Digital Goods Face Test

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In a proceeding closely watched by tech companies and the movie, music and publishing industries, the commission expanded its approach last year while reviewing a trade dispute over orthodontic devices. The ITC decided it could take action against virtual material coming into the U.S. and ordered a Texas-based company, ClearCorrect, to stop receiving digital models and data from Pakistan for the manufacture of teeth aligners, invisible mouthpieces used as an alternative to braces.

Source: Imports of Digital Goods Face Test – WSJ

The ITC in court papers said ClearCorrect hoped to skirt U.S. patent law by farming out part of its process to Pakistan. The commission argues it would be unreasonable to say it could block physical dental molds at the border yet do nothing to stop digital ones.

Infamous “podcasting patent” knocked out

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The ‘504 patent has a priority date of 1996, but as the EFF showed during its challenge to the patent office, that’s hardly the beginning of “episodic content” on the Internet. The EFF relied on two key examples of earlier technology to beat the patent: one was CNN’s “Internet Newsroom,” which patent office judges found fulfilled the key claims of having “(1) episodes; (2) an updated compilation file; and (3) a ‘predetermined URL’ for the compilation file.”

via Infamous “podcasting patent” knocked out | Ars Technica.

Apple will face $350M trial over iPod DRM

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Last week, US District Judge Yvonne Gonzales Rogers gave the green light (PDF) to sending a long-running antitrust lawsuit against Apple to trial. Plaintiffs in the case say that Apple used its FairPlay DRM system to “lock in” its customers and make it costly to switch to technology built by competitors, like Real Networks. They describe how Apple kept updating iTunes to make sure songs bought from Real’s competing digital music store couldn’t be used on iPods. As a result of this lock-in, Apple was able to overcharge its customers to the tune of tens of millions of dollars.

via Apple will face $350M trial over iPod DRM | Ars Technica.

Cost of Defending Against A Troll Is More Than Just A Bridge Toll

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In plain English: Take photos of a race, tag and sort by bib number and date, and search for photos based on that tag via the Internet. That’s it.

We’re having a hard time seeing how this patent “promotes the progress of the sciences and the useful arts” given that it seems to be a patent on numerical sorting and searching. Indeed, the Supreme Court recently ruled that claims that simply add “do it on a computer” to an abstract idea are not even eligible for patent protection. We think the patent clearly fails this test. (It’s also likely not infringed). But because it can take months (and even years) for the court to even consider those issues, they will likely never be decided. Patent litigation is expensive, so many small businesses can’t afford to fight back no matter how weak the patent. That’s part of the problem. Companies can get 20 year “monopolies” after an average of 19 hours of review by the Patent Office. And because the cost to get a patent can be orders of magnitude less than the cost to defend against it, there is an incentive for people to get patents in order to later force defendants into settlement.

via Cost of Defending Against A Troll Is More Than Just A Bridge Toll | Electronic Frontier Foundation.

Intuit beats Web encryption patent that defeated Newegg at trial

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TQP has been arguing for years that using Secure Sockets Layer (SSL) or Transport Layer Security (TLS) combined with the RC4 encryption cipher infringes its patent. The company’s former owner, renowned “patent troll” Erich Spangenberg, acknowledged during a trial last year that he has made more than $45 million in settlements on the TQP patent. TQP is one of dozens of patent groups that he owns.

via Intuit beats Web encryption patent that defeated Newegg at trial | Ars Technica.

B.C. Court Orders Google To Remove Websites From its Worldwide Index

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The implications are enormous since if a Canadian court has the power to limit access to information for the globe, presumably other courts would as well. While the court does not grapple with this possibility, what happens if a Russian court orders Google to remove gay and lesbian sites from its database? Or if Iran orders it remove Israeli sites from the database? The possibilities are endless since local rules of freedom of expression often differ from country to country. Yet the B.C. court adopts the view that it can issue an order with global effect.

via Michael Geist – Global Deletion Orders? B.C. Court Orders Google To Remove Websites From its Worldwide Index.

First patent troll ordered to pay “extraordinary case” fees

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“Lumen’s motivation in this litigation was to extract a nuisance settlement from FTB on the theory that FTB would rather pay an unjustified license fee than bear the costs of the threatened expensive litigation,” Cote stated in the order she issued on Friday. “Lumen’s threats of ‘full-scale litigation,’ ‘protracted discovery,’ and a settlement demand escalator should FTB file responsive papers, were aimed at convincing FTB that a pay-off was the lesser injustice.”

via Payback time: First patent troll ordered to pay “extraordinary case” fees | Ars Technica.

Crushing Blow for Copyright Trolls: Appeals Court Halts AF Holdings’ Extortion Scheme

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This same coalition has fought for years in courts around the country to explain how the trolls were abusing the legal process to extort settlements from unsuspecting John Does.  While several district courts have agreed, this is the first time a federal appeals court has weighed in.

via Crushing Blow for Copyright Trolls: Appeals Court Halts AF Holdings’ Extortion Scheme | Electronic Frontier Foundation.

“Once a troll gets the names it’s looking for, then it already has what it needs to put its shakedown scheme in motion,” EFF Staff Attorney Mitch Stoltz said.

Aereo analysis: Cloud computing at a crossroads

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“Consider any file-hosting service that allows people to store their own material, such as Dropbox. What if it can be shown they are storing copyrighted work. Do they need a license?” he asked in a telephone interview.

Mitch Stoltz, an Electronic Frontier Foundation attorney, said in a telephone interview that, “If the Supreme Court rules in favor of the broadcasters, their opinion might create liability for various types of cloud computing, especially cloud storage.”

via Aereo analysis: Cloud computing at a crossroads | Ars Technica.