Court Rules Operation of Website Does
Not Create
Personal Jurisdiction Over Out of State Defendant |
7/2. The U.S.
Court of Appeals (4thCir) issued its
opinion
[PDF] in Carefirst
Maryland v. CPC, a case involving whether the operation of a
website by a local non profit group can serve as the basis for personal
jurisdiction over it by an out of state court in a trademark infringement case.
The District Court dismissed for lack of personal jurisdiction. The Appeals
Court affirmed.
Carefirst Pregnancy Centers (CPC) is an Illinois corporation, based in the
city of Chicago, Illinois. It is a
non-profit, evangelical, pro-life advocacy organization, that provides services
for Chicago area women. It states that it provides care "in pregnancy-related
crisis by meeting their emotional, physical and spiritual needs, enabling them
to choose life." It operates a web site. It has no office, employees or
operations in the state of Maryland. However, its does have other ties to Maryland. Its web
site is accessible from
the state of Maryland. It solicits donations online, which includes donations
from persons in Maryland. Finally, its web hosting company is in Maryland.
However, the servers where the web site resides are in Massachusetts
Carefirst of Maryland, which does business as Carefirst Blue Cross/Blue Shield, is
a large healthcare insurance company. It has registered the trademark "Carefirst".
Carefirst Maryland filed a complaint in U.S.
District Court for the District of Maryland against CPC alleging trademark
infringement, trademark dilution, and unfair competition. However, the District
Court did not address the merits of Carefirst's claims. Rather, it dismissed the
complaint, without prejudice, for lack
of personal jurisdiction over CPC. Instead of filing its complaint in the
U.S. District Court for the Northern District
of Illinois, Carefirst appealed.
The Court of Appeals affirmed. The Court first addressed the basics of
personal jurisdiction. It wrote that "for a district court to assert personal
jurisdiction over a
nonresident defendant, two conditions must be satisfied: (1) the exercise of
jurisdiction must be authorized under the state's long-arm statute; and (2) the
exercise of jurisdiction must comport with the due process requirements of the
Fourteenth Amendment."
The Court added that "A court's exercise of jurisdiction over a nonresident
defendant comports with due process if the defendant has ``minimum
contacts´´ with the forum, such that to require the defendant to defend its
interests in that state "does not offend traditional notions of fair play
and substantial justice." The Court cited the landmark case of
International Shoe v.
Washington, 326 U.S. 310 (1945).
The Court continued that "The standard for determining the existence of personal
jurisdiction over a nonresident defendant varies, depending on whether the
defendant's contacts with the forum state also provide the basis for the
suit. If those contacts form the basis for the suit, they may
establish ``specific jurisdiction.´´ In determining whether specific jurisdiction
exists, we consider (1) the extent to which the defendant has
purposefully availed itself of the privilege of conducting activities in the
state; (2) whether the plaintiffs' claims arise out of those activities
directed at the state; and (3) whether the exercise of personal jurisdiction
would be constitutionally ``reasonable.´´" The Court cited
ALS Scan, Inc. v. Digital
Service Consultants, 293 F.3d 707 (4th Cir. 2002), cert. denied,
123 S. Ct. 868 (2003), a case in which the Court found that there was not
jurisdiction over an out of state web host in an online copyright infringement
action. See also, stories titled "Internet Shoes: Two Appeals Courts Address
Internet Based Personal Jurisdiction", "Fourth Circuit Holds No Personal
Jurisdiction Over Out of State Web Host", and "DC Circuit Suggests Personal
Jurisdiction Over Out of State Online Brokerage" in
TLJ Daily E-Mail
Alert No. 452, June 17, 2002.
The Court also wrote that "If, however, the
defendant's contacts with the state are not also the basis for the suit,
then jurisdiction over the defendant must arise from the defendant’s general, more
persistent, but unrelated contacts with the state. To establish
general jurisdiction, the defendant’s activities in the state must have
been ``continuous and systematic.´´"
The Appeals Court then concluded that since there is "no suggestion that CPC
engaged in continuous and systematic activities within Maryland, our
inquiry must focus on the conduct giving rise to the suit, i.e., CPC’s
alleged infringement of Carefirst's trademark. And accordingly, it is
only if (1) CPC purposefully availed itself of the privilege of
conducting activities in Maryland, (2) Carefirst's claims arise out of
those activities, and (3) the exercise of personal jurisdiction would be
constitutionally ``reasonable,´´ that CPC can be held subject to specific jurisdiction
in Maryland."
In analyzing whether the requisites of specific jurisdiction were met, the
Court applied the "effects test" of
Calder v. Jones, 465 U.S. 783 (1984), in which the Supreme Court held that
a court may exercise specific personal
jurisdiction over a nonresident defendant when the defendant intentionally
directed tortious conduct toward the forum state, knowing that that conduct
would cause harm to a forum resident.
The Appeals Court then reviewed its precedent in
ALS Scan and Young v. New Haven Advocate. (On December 13,
2002, the Court
its opinion
[12 pages in PDF] in Young holding that a court
in Virginia does not have jurisdiction over two small newspapers, and their
editors and reporters, located in Connecticut, who wrote allegedly defamatory
stories about a Virginia prison warden and published them on the internet. The
Court held that the web publication did not establish minimum contacts because
the newspapers are not directed at a Virginia audience. See, TLJ story titled
4th Circuit
Rules in Internet Jurisdiction Case, December 13, 2002.)
Having set forth the applicable law and
precedent, the Court then applied this law to the facts of the
present case. First, the Court examined whether the CPC website
can serve as the basis for jurisdiction. The wrote that "in
order for CPC's website to bring CPC within the jurisdiction of
the Maryland courts, the company must have done something more
than merely place information on the Internet." The Court
examined the character of the CPC website.
The Court wrote that "it is relevant that CPC's
sites are ``semi-interactive,´´ in that they contain features
that make it possible for a user to exchange information with
the host computer." The Court added that when a website is
"neither merely passive nor highly interactive, the exercise of
jurisdiction is determined ``by examining the level of
interactivity and commercial nature of the exchange of
information that occurs.´´" The Court commented that "the only
concrete evidence of online exchanges between CPC and Maryland
residents was the single donation initiated by Carefirst’s
counsel (and ostensibly made to bolster the position of her
client in this litigation)." (Parentheses in original.) The
Court also found it "pertinent that the overall content of CPC’s
website has a strongly local character, emphasizing that CPC’s
mission is to assist Chicago-area women in pregnancy
crises." (Emphasis in original.)
Hence, the Court concluded that "when
CPC set up its generally accessible, semi-interactive Internet website, it did
not thereby direct electronic activity into Maryland with the manifest intent of
engaging in business or other interactions within that state in particular. ...
Consequently, the website fails to furnish a Maryland contact adequate to
support personal jurisdiction over CPC in the Maryland courts."
Second, the Court examined whether the use of a Maryland web hosting company
can serve as the basis for jurisdiction. The Court wrote that "NetImpact merely
facilitated the purchase of CPC’s domain names and rented CPC space on its
servers -- which in fact were located not in Maryland, but in Massachusetts. It
is unreasonable to expect that, merely by utilizing servers owned by a
Maryland-based company, CPC should have foreseen that it could be haled into a
Maryland court and held to account for the contents of its website.
Consequently, CPC’s employment of NetImpact as a web host does not ground
specific jurisdiction over CPC in Maryland."
Other Cases. In addition to the cases cited by the Court (ALS Scan
and Young v. New Haven Advocate), there are several other recent cases that
address personal jurisdiction in the context of internet activities.
On December 10, 2002, the
High Court of Australia issued its
opinion
in
Dow Jones v. Gutnick.
It took a different approach, and reached a different result on the question of
personal jurisdiction. This was a case involving three procedural issues --
jurisdiction, choice of law, and convenient forum. It was a
tort action brought in Australia for an allegedly defamatory news story
published on the internet by Dow Jones, a U.S. publisher. The Court held that
because of publication on the internet, the Australian courts have jurisdiction,
that Australian law applies, and that the case should proceed in the trial court
in the Australian state of Victoria. See, story titled "High Court Rules
Australia Has Jurisdiction Over Dow Jones Based on Web Publication",
TLJ Daily E-Mail
Alert No. 564, December 10, 2002.
In addition, on October 7, 2002, the
U.S. Court of Appeals (9thCir) issued its
opinion in Healthgrades.com v. Northwest Healthcare Alliance, another
case in which jurisdiction was basis upon internet activity. The Court held that
the U.S. District Court (WDWash) has
personal jurisdiction over an out of state defendant in defamation case, based
solely upon publication of its allegedly defamatory statements in its internet
web site, which publishes ratings of health care providers. The
Supreme Court denied certiorari,
without opinion, on April 28, 2003.
Finally, on January 9, 2003 the
U.S. District Court (CDCal)
denied Sharman Network's motion to dismiss for lack of personal
jurisdiction in the Kazaa copyright infringement litigation. In
that case, Sharman's free software, the Kazaa Media Desktop, had
been downloaded millions of times in the forum state, and
Sharman had been organized offshore largely for the purpose of
attempting to avoid personal jurisdiction. See,
TLJ story
titled "District Court Squeezes Sharman on Internet Based
Personal Jurisdiction", January 9, 2003.
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District Court Approves SEC Settlement with
WorldCom |
7/7. The U.S. District Court (SDNY)
issued issued its Opinion and Order approving the
Securities and Exchange Commission's (SEC) settlement with WorldCom.
The SEC issued a release
in which it summarized the settlement. It wrote that the Court "will enter the
Final Judgment as to Monetary Relief in the form submitted by the parties. That
Final Judgment provides that WorldCom is liable for a civil penalty in the
amount of $2,25 billion. The Final Judgment also provides that in the event of
confirmation of a plan of reorganization of WorldCom by the Bankruptcy Court,
WorldCom's obligations under the Commission's judgment shall be deemed to be
satisfied by the company's payment of $500 million in cash and by its transfer
of common stock in the reorganized company having a value of $250 million to a
distribution agent to be appointed by the District Court. Under the terms of the
settlement, the funds paid and the common stock transferred by WorldCom to
satisfy the Commission's judgment will be distributed to victims of the
company's fraud, pursuant to Section 308 (Fair Funds For Investors) of the
Sarbanes-Oxley Act of 2002. The proposed settlement remains subject to review
and approval of the United States Bankruptcy Court for the Southern District of
New York."
On July 2, the SEC filed documents with the District Court modifying the
proposed settlement of its claim for a civil penalty in its civil action against
WorldCom. See, SEC release.
The SEC stated that "The filings supplement the relief provisions in the
proposed settlement previously filed in that action on May 19, 2003, which
required WorldCom to pay a civil penalty judgment in the amount of
$1,510,000,000. That proposed settlement further provided that, as a result of
the company's pending bankruptcy case, the Commission's judgment would be
satisfied by WorldCom's payment, after review and approval of the terms of the
settlement by the Bankruptcy Court, of $500,000,000."
The SEC continued that "WorldCom and the SEC mutually agreed to supplement to
the terms of the proposed settlement. The modifications ... provide that in the
event of confirmation of a plan of reorganization of WorldCom by the Bankruptcy
Court, WorldCom's obligations under the Commission's judgment shall be deemed to
be satisfied by the company's payment of $500,000,000 in cash and by its
transfer of common stock in the reorganized company having a value of
$250,000,000 to a distribution agent to be appointed by the District Court. The
supplemental relief, if approved, would allow victims of the fraud to share in
the potential upside of owning WorldCom common stock when it emerges from
bankruptcy. All other material terms of the proposed settlement remain the
same."
See also, WorldCom
release of July 2, and
release of July 7.
The Senate Judiciary
Committee is scheduled to hold a hearing on Tuesday, July 15, titled "Bankruptcy and Competition Issues in
relation to the WorldCom Case".
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DC Circuit Rules in Ranger Cellular v. FCC |
7/1. The U.S.
Court of Appeals (DCCir) issued its
opinion
[12 pages in PDF] in Ranger
Cellular v. FCC, a case regarding how the
Federal Communications Commission (FCC) awards
cellular licenses. The Appeals Court denied the petition for review.
The FCC previously awarded licenses for use of
spectrum through either a comparative hearing or a lottery. The petitioners,
Ranger Cellular and Miller Communications, filed applications in 1988 and 1989
respectively to participate in a lottery for Rural Service Area (RSA)
cellular telephone licenses. The FCC awarded most of the licenses, but by the mid
1990s six licenses for RSAs were still pending due to the disqualification or
withdrawal of the original winner.
Congress amended the Communications Act of 1934 by in 1993 by
adding Section 309(j), codified at
47 U.S.C. § 309(j), which
authorized the FCC
to award almost all spectrum licenses by competitive bidding and limited the use
of lotteries. The 1993 legislation provided that the FCC "shall not issue any
license or permit [by lottery] ... unless ... one or more applications for such
license were accepted for filing by the Commission before July 26, 1993."
Congress further amended Section 309(j) in 1997 by requiring the
FCC to use competitive bidding, except in a few specifically enumerated
circumstances, and terminated the FCC's authority to use a lottery, except for a
small class of broadcast licenses).
The Congress also amended Section 309(l) regarding
"Applicability of competitive bidding to pending comparative licensing cases".
The statute provides that "With respect to competing applications for initial
licenses or construction permits for commercial radio or television stations
that were filed with the Commission before July 1, 1997, the Commission shall
... treat the persons filing such applications as the only persons eligible to
be qualified bidders for purposes of such proceeding."
Thus, the statute bars the FCC from accepting new applications
in the case of "commercial radio or television stations". The petitioners
asserted that this provision applied to applications for cellular licenses, and
limited the pool of bidders to those who had filed an application prior to July
1, 1997. The FCC issued an order that rejected petitioners' interpretation.
Ranger Cellular and Miller Communications then filed their petition for review
with the Court of Appeals.
The Court wrote that the petitioners had some credible
arguments. For example, it wrote that "cellular service is regulated as a
``commercial mobile radio service,´´ 47 C.F.R. § 20.9(a), which seems to place
it neatly within the more general class of ``commercial radio and television
stations´´ referenced in § 309(l)." However, the Court also found that the FCC
supported its argument that "commercial radio or television stations" does not
encompass cellular telephone services. The Court applied the Chevron standard,
and concluded that the FCC "has shown that § 309(l), viewed in the context of
the 1997 Act, supports a reading that covers only broadcast stations. Although
this reading is not the only possible interpretation of § 309(l), it is
certainly a reasonable one and therefore commands our deference."
The Appeals Court also held that the FCC justified its decision
under the public interest standard.
Finally, it held that the FCC was not subject to 47 U.S.C. §
309(j)(7)(B), which provides that "in prescribing regulations pursuant to
Paragraph 4(A) of this subsection, the Commission may not base a finding of
public interest, convenience and necessity solely or predominantly on the
expectation of Federal revenues from the use of a system of competitive bidding
under this subsection."
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Tuesday, July 8 |
The House will meet at 10:30 AM for
legislative business. Votes will be postponed until 6:30 PM. The House will
consider HR __, the Department of Defense Appropriations Act for Fiscal Year
2004, a bill which contains technology related provisions. See,
Republican Whip Notice.
The Senate will meet at 11:45 AM. It will vote on the nomination of David
Campbell to be a Judge of the U.S. District Court for the District of Arizona.
It will also vote on a motion to invoke cloture on the nomination of Victor
Wolski to be a Judge of the Court of Federal Claims.
Day one of a two day conference titled "Supernova 2003". The topic will be
"decentralization of communications, software, and media". The speakers will
include Reed Hundt (former FCC Chairman), Bob Pepper (FCC Chief of Policy
Development), and Bruce Mehlman (Technology Administration). See,
agenda. Location:
Hyatt Regency, Crystal City, Virginia.
9:00 AM - 5:00 PM. The National Institute
of Standards and Technology (NIST) will hold a one day workshop on storage
and processor card technologies. See,
notice in the Federal Register, April 7, 2003, Vol. 68, No. 66, at Page
16784. Location: Administration Building (Bldg. 101), Green Auditorium, NIST,
Gaithersburg, MD.
9:30 AM. The Senate Commerce
Committee will hold a hearing on two nominations, including that of
Pamela Harbour to be Commissioner of the
Federal Trade Commission (FTC). Location: Room 253, Russell Building.
10:00 AM. The House Judiciary
Committee's Subcommittee on Crime, Terrorism, and Homeland Security will
hold a hearing on
HR 2214,
the "Reduction in Distribution of Spam Act of 2003". Location: Room
2141, Rayburn Building.
10:00 AM. The Senate Finance
Committee will hold a hearing titled "An Examination of U.S. Tax Policy
and Its Effect on the Domestic and International Competitiveness of U.S.-Based
Operations". (A second hearing will address competitiveness of U.S. operations
located outside the U.S.) Location: Room 215, Dirksen Building.
2:00 to 4:00 PM. The Federal Communications
Commission's (FCC) International Bureau will
hold a public forum to
discuss implementation of the new satellite application procedures adopted
in the First Space Station Reform Order. The event will be webcast. See,
notice [2 pages in PDF]. Location: FCC, Commission Meeting Room, TW-C305
at 445 12th St., SW.
2:30 PM. The Senate Judiciary
Committee will hold a hearing on two nominations, including that of Jack
Goldsmith to be Assistant Attorney General in charge of the Office of Legal
Counsel (OLC). Press contact: Margarita Tapia at 202 224-5225. See,
notice.
Location: Room 226, Dirksen Building.
Day one of a two day workshop hosted by the
National Institute of Standards and Technology (NIST) on interoperability
among storage and processor card systems. The price to attend is $275. See,
notice.
For more information, contact Curt Barker at 301 975-8443 or
wbarker@nist.gov. Location: NIST,
Gaithersburg, MD.
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Wednesday, July 9 |
The House will meet at 10:00 AM for legislative business. See,
Republican
Whip Notice.
Day two of a two day conference titled "Supernova 2003". The topic will be
"decentralization of communications, software, and media". See,
agenda. Location:
Hyatt Regency, Crystal City, Virginia.
9:30 AM - 12:30 AM. The Federal Communications
Commission's (FCC) Office of Engineering
and Technology (OET) will host a tutorial on Time Division Duplex (TDD).
The FCC stated in its
notice [PDF] that "Unlike the legacy cellular and PCS systems that have
traditionally been circuit switched and focused on voice, these new systems
can be optimized for the transmission of packet-switched data, which are
characterized by asymmetric traffic flows both to and from the user.
Increasingly, TDD is becoming increasingly popular for new broadband wireless
access systems, including LAN systems like 802.11, and advanced broadband
wireless access systems". Location: FCC, Commission Meeting Room, TW-C305 at
445 12th St., SW.
2:30 PM. The Senate Judiciary
Committee will hold a hearing on several pending judicial nominations.
See, notice.
Press contact: Margarita Tapia at 202 224-5225. See,
notice.
Location: Room 226, Dirksen Building.
10:00 AM. The House Judiciary
Committee will meet to mark up numerous bills, including HR __,
implementing legislation for U.S. Chile free trade agreement (FTA), HR __,
implementing legislation for U.S. Singapore FTA, and
HR 1561,
the "United States Patent and Trademark Fee Modernization Act of 2003". The
meeting may continue on July 10 at 10:00 AM. Location: Room 2141, Rayburn
Building.
Approx. 11:00 AM. The House Commerce
Committee's Subcommittees on Commerce, Trade and Consumer Protection
and on Telecommunications and the Internet will hold a hearing titled "Legislative
Efforts to Combat Spam". The scheduled witnesses are Timothy Muris
(Chairman of the Federal Trade Commission), Charles Curran (Assistant General Counsel
of America Online), Charles Betty
(P/CEO of EarthLink), Paul Misener (Amazon.com), Kenneth Hirschman (Digital Impact),
Christopher Murray (Legislative Counsel of the Consumers Union), and Christine Gregoire
(Attorney General of the state of Washington). Press contact: Ken Johnson
or Jon Tripp at 202 225-5735. The hearing will begin 30 minutes after
completion of the Committee's markup of HR 1950, the Foreign Relations
Authorization Act, which is scheduled for 10:00 AM. Location: Room 2123,
Rayburn Building.
10:00 AM. The House Science
Committee's Subcommittee on Research will hold a hearing on on
HR 2183,
the "Minority Serving Institution Digital and Wireless Technology Opportunity
Act". Press contact: Heidi Tringe at 202 225-4275. The hearing will be webcast.
Location: Room 2318, Rayburn Building.
10:00 AM. The U.S. Court of Appeals
(FedCir) will hear oral argument in Ericsson v. Harris, No. 02-1571.
This is an appeal from the U.S.
District Court (NDTex) in a patent infringement case involving wireless
and cellular technology (D.C. No. 3-98 CV 2903-M). Location: Courtroom 402, 717
Madison Place, NW.
10:30 AM - 12:00 NOON. The Department of State's U.S. International
Telecommunication Advisory Committee (ITAC) will hold a meeting to discuss
matters related to the World Summit on the
Information Society (WSIS), which will take place on December 10-12, 2003
in Geneva, Switzerland. See,
notice in the Federal Register, June 18, 2003, Vol., 68, No.117, at Page
36623. Location: National Academy of Sciences, 2100 C St., NW.
Day two of a two day workshop hosted by the
National Institute of Standards and Technology (NIST) on interoperability
among storage and processor card systems. The price to attend is $275. See,
notice.
For more information, contact Curt Barker at 301 975-8443 or
wbarker@nist.gov. Location: NIST,
Gaithersburg, MD.
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Thursday, July 10 |
The House will meet at 10:00 AM for legislative business. See,
Republican
Whip Notice.
7:45 - 11:30 AM. The
Business Software Alliance (BSA) and the
Center for Strategic & International Studies
(CSIS) will host an invitation only policy forum titled "Securing
Information Infrastructure in the E-Gov Era". The speakers will include
Robert Holleyman (BSA), Jim Lewis (CSIS), Dan Burton (Entrust), Scott Charney
(Microsoft), Mark Forman (OMB), Tim Hoechst (Oracle), Drew Ladner (Department
of the Treasury), John Landwehr (Adobe Systems),
Rep. Zoe Lofgren (D-CA), Tim
McNulty (Carnegie Mellon University), George Newstrom (Virginia
Secretary of Technology), Rep. Adam
Putnam (R-FL), Douglas Sabo (Network Associates), and
Rep. Pete Sessions (R-TX). Press
contact: Jeri Clausing at jeric@bsa.org or
202 530-5127. Others may contact Dan Fix at
danf@bsa.org or Joelle Laszlo at
jlaszlo@csis.org. Location: Room HC-5, Capitol Building.
9:30 AM. The Federal Communications
Commission (FCC) will hold a meeting. First, representatives of the FCC's
International Bureau will report on the
World Radio
Conference 2003, which took place in Geneva, Switzerland from June 9 through
July 4. Second, the FCC will consider a Report and Order regarding the compatibility
of digital wireless phones and hearing aids. This is WT Docket No.
01-309. Third, the FCC's Homeland Security Policy Council will
report on its accomplishments and future activities. See,
agenda
[PDF]. The meeting will be webcast. Press contact: Audrey Spivack or David
Fiske at 202 418-0500. Location: FCC, 445 12th Street, SW, Room TW-C05
(Commission Meeting Room).
9:30 AM. The Senate Judiciary
Committee will hold an executive business meeting. Press contact:
Margarita Tapia at 202 224-5225. See,
notice.
Location: Room SDG 50, Dirksen Building.
10:00 AM. The House Ways and
Means Committee's Subcommittee on Social Security will hold a hearing on
use and misuse of social security numbers. Location: Room B-318, Rayburn
Building.
10:00 AM. The U.S. Court of Appeals
(FedCir) will hear oral argument in Superguide v. DirecTV, No.
02-1561. This is an appeal from the U.S. District Court (WDNC) in a patent
infringement case involving Interactive Program Guides (IPG) software and
systems used in connection satellite television services. Location: Courtroom
402, 717 Madison Place, NW.
Day one of a two day conference titled "Municipal Broadband". The price to
attend is $895. For more information, call 206 621-1938. Location: Pier 5
Hotel, Inner Harbor, Baltimore, MD.
The Commerce Department's Bureau of
Industry and Security (BIS) will host a one day seminar titled
Essentials of Export Controls. The BIS charges for admission. Location:
Washington DC.
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Friday, July 11 |
The House will meet at 9:00 AM for legislative business. See,
Republican
Whip Notice.
The Federal Communications Commission's
(FCC) Consumer Advisory Committee (CAC) will
hold a meeting. See,
notice in the Federal Register, June 25, 2003, Vol. 68, No. 122, at Pages
37824 - 37825. Location: FCC, Room TW-C305, 445 12th Street, SW.
Day two of a two day conference titled "Municipal Broadband". Ed Thomas,
Chief of the Federal Communications Commission's (FCC)
Office of Engineering
and Technology (OET) is schedule to speak at 8:30 AM. The price to attend is
$895. For more information, call 206 621-1938. Location: Pier 5 Hotel, Inner
Harbor, Baltimore, MD.
The Commerce Department's Bureau of
Industry and Security (BIS) will host a one day seminar titled
Export Management Systems (EMS). The BIS charges for admission. Location:
Washington DC.
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9th Circuit Affirms in PSLRA Case |
7/3. The U.S.
Court of Appeals (9thCir) issued its
opinion [12 pages in PDF] in In
Re Read-Rite Corp. Securities Litigation, a
case involving application of the pleading requirements of the
Private Securities Litigation Reform Act (PSLRA).
Read-Rite manufactured and sold ferrite metal-in-gap (MIG)
recording heads and Tripad thin film inductive recording heads for hard disk
drives. Plaintiffs were owners of common stock of Read-Rite.
Plaintiffs filed a complaint in the U.S. District Court (NDCal)
against Read-Rite and several of its officers and directors alleging securities
fraud under Section 10(b) of the Securities Exchange Act of 1934. The plaintiffs
also sought class action status. The District Court dismissed the complaint for
failure to state a claim upon which relief may be granted, pursuant to the PSLRA,
for failing to meet the heightened pleading requirements of the statute.
The Appeals Court affirmed in a relatively brief opinion which it relied upon
9th Circuit precedent in Ronconi v. Larkin, 253 F.3d 423 (2001), and
In re
Silicon Graphics, Inc. Sec. Litig., 183 F.3d 970 (1999).
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More News |
7/1. The U.S.
Court of Appeals (DCCir) issued its
opinion [17 pages in PDF] in Z-Tel
v. FCC. In 2001 the Federal
Communications Commission (FCC) issued an order approving Verizon's
Section 271
application to provide in region interLATA services in the
state of Pennsylvania. Z-Tel, a competitive local exchange carrier, challenged
the order, arguing that the FCC
erred in finding that Verizon provides competitors nondiscriminatory access to
its wholesale billing services. The Appeals Court affirmed the order of the FCC.
7/7. The Federal Trade Commission (FTC)
announced that it filed a complaint in
U.S. District Court (DAriz) against NexGen3000.com and others alleging
violation of the Federal Trade Commission Act in connection with their operation
of an internet shopping mall network that allegedly constitutes a pyramid scam.
The complaint names as defendants NexGen3000.com, Globion, Inc., Infinity2,
Inc., David A. Charette, Jennifer K. Charette, Robert J. Charette, Jr., Marta H.
Charette, Stephen M. Diamond, Christine A. Wasser, and Edward G. Hoyt. See,
FTC release.
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