FTC/DOJ File Amicus Brief on Antitrust
Standing of Direct Purchasers Who Allege Fraud Upon USPTO |
5/22. The Federal Trade Commission (FTC)
and the Department of Justice's (DOJ)
Antitrust Division filed an
amicus curiae
brief with the U.S. Court of Appeals
(FedCir) in Ritz Camera & Image v. SanDisk, in support of
Ritz.
SanDisk made flash memory products, which Ritz and others purchased. Ritz and
the others filed a complaint in the
U.S. District Court (NDCal) against
SanDisk alleging monopolization in violation of Section 2 of the Sherman Act,
which is codified at 15
U.S.C. § 2.
The plaintiffs' complaint alleges fraud on the
U.S. Patent and Trademark Office (USPTO) by
intentionally failing to disclose invalidating prior art and by making
affirmative misrepresentations to the USPTO, subsequent enforcement of
fraudulently obtained patents, and harm to competition by the charging of
monopoly prices.
At issue is the the circumstances in which Section 4 of the Clayton Act,
which is codified at 15
U.S.C. § 15, authorizes direct
purchasers to recover overcharge damages resulting from a monopoly obtained and
maintained through enforcement of a fraudulently procured patent.
The District Court held that direct purchasers do have antitrust standing.
SanDisk then brought the present interlocutory appeal.
The FTC and DOJ argued that "For over a century, courts have held that direct
purchasers have standing to recover overcharges paid to unlawful monopolists.
There is no sound reason to depart from that well-settled principle when the
anticompetitive conduct creating or maintaining the monopoly is the enforcement
of a patent obtained through intentional fraud on the PTO."
The FTC and DOJ noted that the Supreme Court held in its 1965
opinion in Walker Process Equipment, Inc. v. Food Machinery & Chemical
Corp., which is reported at 382 U.S. 172, that those injured by monopolistic
action taken under fraudulently procured patents can sue for damages under the
antitrust laws.
The FTC/DOJ wrote that SanDisk "contends that, in addition to meeting the
standards for antitrust standing, a plaintiff asserting a Walker Process claim
also must satisfy the requirements imposed on a plaintiff seeking a declaratory
judgment of patent invalidity. ... But neither Walker Process nor any court of
appeals decision justifies such a rule".
The FTC/DOJ also wrote that "A plaintiff seeking a declaratory judgment of
patent invalidity ordinarily must demonstrate that it has been threatened with
an infringement suit in order to meet the constitutional requirement of a ``case
or controversy.΄΄ But a properly alleged Walker Process claim for damages under
the antitrust laws creates a justiciable controversy whether or not there is a
threat of patent enforcement against the plaintiff."
The FTC/DOJ reasoned that "Ritz has alleged precisely the type of injury the
antitrust laws were intended to redress. As a direct purchaser, Ritzs injury is
entirely distinct from that of an excluded competitor, and its damages -- the
overcharges it paid for the monopolized product -- do not overlap the lost
profits that an excluded competitor might seek."
The FTC/DOJ also urged that the Court of Appeals "not adopt a rule making
direct purchaser standing turn on a separate proceeding over which the direct
purchaser has no control. Such a rule could encourage holders of fraudulently
procured patents to settle Walker Process claims made by excluded competitors,
allowing the excluded competitors to share in any monopoly profits and the
defendant to deny direct purchasers their right to recover damages under the
Clayton Act."
See also, FTC release.
This case is Ritz Camera & Image LLC. v. Sandisk Corporation, U.S.
Court of Appeals for the Federal Circuit, App. Ct. No. 12-1183, an appeal from
the U.S. District Court for the Northern District of California, D.C. No. 10-CV-2787.
|
|
|
Copyright Office Proposes to Change
Definition of Claimant |
5/17. The Copyright Office (CO) published a
notice
in the Federal Register (FR) in which it announces, describes, recites, and sets
the comment deadlines for, its proposed rules changes regarding the definition
of a claimant for purposes of copyright registration.
The CO proposes to eliminate the footnote to the definition of a claimant codified at 37
CFR § 202.3(a)(3)(ii), which provides that a claimant includes individuals or entities
that have obtained the contractual right to claim legal title to copyright in an
application for copyright registration.
The CO notice states that "This amendment would clarify that the copyright claimant
must be either the author of the work, or a person or organization that has obtained ownership
of all of the exclusive rights initially belonging to the author. The Copyright Office believes
that the footnote creates considerable legal uncertainty while offering no clear benefits to
the registration system. Removing it will foster the use of other available registration
options that create a more meaningful public record."
Initial comments are due July 16, 2012. Reply comments are due August 15, 2012. See, FR,
Vol. 77, No. 96, Thursday, May 17, 2012, at Pages 29257-29259.
|
|
|
Sen. Grassley Wants Judges to Meet on Skype
Rather Than on Maui |
5/21. Sen. Charles Grassley (R-IA), the ranking
Republican on the Senate Judiciary Committee
(SJC), and Sen. Jeff Sessions (R-AL) sent at
letter, with interrogatories, to Chief Judge Alex Kozinski of the
U.S. Court of Appeals (9thCir) regarding the 9th
Circuit's practice of holding conventions, at taxpayer expense, in posh resort hotels in Hawaii,
rather than via Skype.
The 9th Circuit has a conference scheduled
for August on the island of Maui. Sen. Grassley (at right) stated in a
release that "Technology is so advanced that people are earning college degrees online
and soldiers serving halfway across the world use Skype with their families at home".
He added that "a judicial circuit court should be capable of using technology to share
information without requiring a trip to an island paradise. It's especially tone-deaf to plan
a pricey conference after the GSA debacle. The taxpayers can't sustain this kind of spending,
and they shouldn't have to. The court should re-examine whether this is the best use of tax
dollars."
|
|
|
People and
Appointments |
5/25. The Federal Communications
Commission (FCC) announced in a
release that
Austin Schlick (at left) "will step down as General Counsel, effective mid-June"
and that Sean Lev, who is currently Deputy General Counsel and Special Advisor to the
Chairman, will become General Counsel. Lev has held positions at the FCC and Department of
Energy (DOE) during the Obama administration. Previously, he worked at the Washington DC law
firm of Kellogg Huber. Schlick also previously worked at
Kellogg Huber.
5/25. The Federal Communications
Commission (FCC) announced in a
release that
Rick Kaplan "will step down" in "mid-June" as Chief of the FCC's
Wireless Telecommunications Bureau (WTB), and that
Ruth Milkman (at right), who was Chief of the WTB prior to Kaplan, and is currently
Special Counsel to the Chairman for Innovation in Government, will return to the position of
Chief of the WTB.
|
|
|
More
News |
5/25. The Copyright Office (CO) published a
notice in the
Federal Register (FR) in which it announces, describes, recites, and sets the comment deadline
for, its proposed rules changes regarding the filing of notices of intention to obtain a
compulsory license, pursuant to 17
U.S.C. § 115. The CO proposes to provide an option for electronically filing the notice.
Comments are due by 5:00 PM on July 9, 2012. See, FR, Vol. 77, No. 102, Friday, May 25,
2012, at Pages 31237-31240.
5/23.
James Cole (at right), the Deputy
Attorney General, gave a
speech
at an awards ceremony in Washington DC. He stated that the
Department of Justice's (DOJ) Internet
Crimes Against Children Task Force Program "is going strong and is
continuing to realize remarkable success in solving technology-facilitated
crimes against children. What began as a small, loose-knit program years ago has
grown into highly-trained, coordinated and effective network of 61 task forces."
He also discussed in some detail one case involving online child pornography.
5/17. Rep. Blaine Luetkemeyer (R-MO),
Rep. Lynn Westmoreland (R-GA) and
Rep. Scott Garrett (R-NJ)
introduced HR 5817
[LOC |
WW], a bill to amend
the Gramm Leach Bliley Act to provide an exception to the annual privacy notice requirement.
It was referred to the House Financial Services
Committee (HFSC).
|
|
|
About Tech Law
Journal |
Tech Law Journal publishes a free access web site and a subscription e-mail alert.
The basic rate for a subscription to the TLJ Daily E-Mail Alert is $250 per year for
a single recipient. There are discounts for subscribers with multiple recipients.
Free one month trial subscriptions are available. Also, free subscriptions are
available for federal elected officials, and employees of the Congress, courts, and
executive branch. The TLJ web site is free access. However, copies of the TLJ Daily
E-Mail Alert are not published in the web site until two months after writing.
For information about subscriptions, see
subscription information page.
Tech Law Journal now accepts credit card payments. See, TLJ
credit
card payments page.
TLJ is published by
David
Carney
Contact: 202-364-8882.
carney at techlawjournal dot com
3034 Newark St. NW, Washington DC, 20008.
Privacy
Policy
Notices
& Disclaimers
Copyright 1998-2012 David Carney. All rights reserved.
|
|
|
|
In This
Issue |
This issue contains the following items:
FTC/DOJ File Amicus Brief on Antitrust Standing of Direct Purchasers Who Allege
Fraud Upon USPTO
Copyright Office Proposes to Change Definition of Claimant
Sen. Grassley Wants Judges to Meet on Skype Rather Than on Maui
People and Appointments
More News
|
|
|
Washington Tech
Calendar
New items are highlighted in
red. |
|
|
Thursday, May 31 |
The House will meet at 10:00 AM for
morning hour, and at 12:00 PM for legislative business. It will consider HR 5743
[LOC |
WW],
the "Intelligence Authorization Act for Fiscal Year 2013".
The Senate will not meet.
8:30 AM - 5:30 PM. Day two of a three day meeting of the Department of
Commerce's (DOC) National Institute of Standards and
Technology's (NIST)
Information
Security and Privacy Advisory Board (ISPAB). Free. Open to the public. See,
notice
in the Federal Register, Vol. 77, No. 84, Tuesday, May 1, 2012, at Pages
25686-25687. Location: DOC/NIST, Heritage Room, Administration Building, 100
Bureau Drive, Gaithersburg, MD.
9:00 AM. The Copyright
Office (CO) will hold a hearing regarding its triennial review of exemptions to the
anticircumvention provisions of 17
U.S.C. § 1201. The deadline to submit requests to testify is 5:00 PM EDT on April 2, 2012.
See, story titled "Copyright Office Schedules Hearings on Proposed Anticircumvention
Exemptions" in TLJ Daily
E-Mail Alert No. 2,351, March 20, 2012. Location: CO, Copyright
Hearing Room, LM-408, James Madison Building, Library of Congress, 101 Independence
Ave., SE.
10:00 AM. The House
Judiciary Committee's (HJC) Subcommittee on Crime, Terrorism and Homeland Security
will hold a hearing on HR 6304
[LOC
| WW], the
"FISA Amendments Act of 2008", enacted into law by the 110th Congress. It
is Public Law No. 110-261. It is also titled the "Foreign Intelligence Surveillance Act
of 1978 Amendments Act of 2008". See,
notice.
See also, story titled "House and Senate Leaders Release Draft FISA Reform Bill"
in TLJ Daily E-Mail Alert No.
1,782, June 18, 2008, and stories titled "House Approves FISA Reform Bill" and
"Attorney General and DNI Praise FISA Reform Bill" in
TLJ Daily E-Mail Alert No.
1,783, June 19, 2008. Location: Room 2141, Rayburn Building.
10:00 AM. The House
Science Committee's (HSC) Subcommittee on Technology and Innovation will hold a hearing
titled "Examining the Proposed National Network for Manufacturing Innovation".
The witnesses will include Patrick Gallagher, head of the
National Institute of Standards and Technology (NIST). See,
notice. Location: Room 2318, Rayburn Building.
10:15 AM. The House
Commerce Committee's (HCC) Subcommittee on Communications and Technology will hold a
hearing titled "International Proposals to Regulate the Internet". See,
notice. Location: Room 2322, Rayburn Building.
2:00 PM. Deadline to submit proposals to the Department of Commerce's
(DOC) National Telecommunications and Information
Administration (NTIA) in response to its reissued Request for Proposal (RFP)
SA1301-12-RP-0043 for a new Internet Assigned Numbers Authority (IANA) functions contract.
This is for the contract term of October 1, 2012 through September 30, 2015. See,
summary, and
RFP and
Form 33.
|
|
|
Friday, June 1 |
The House will meet at 9:00 AM.
The Senate will not meet.
8:30 AM - 1:00 PM. Day three of a three day meeting of the Department
of Commerce's (DOC) National Institute of Standards and
Technology's (NIST)
Information Security and Privacy Advisory Board (ISPAB). Free. Open to the public.
See, notice
in the Federal Register, Vol. 77, No. 84, Tuesday, May 1, 2012, at Pages 25686-25687. Location:
DOC/NIST, Heritage Room, Administration Building, 100 Bureau Drive, Gaithersburg, MD.
9:00 AM. The Copyright
Office (CO) will hold a hearing regarding its triennial review of exemptions to the
anticircumvention provisions of 17
U.S.C. § 1201. The deadline to submit requests to testify is 5:00 PM EDT on April 2, 2012.
See, story titled "Copyright Office Schedules Hearings on Proposed Anticircumvention
Exemptions" in TLJ Daily
E-Mail Alert No. 2,351, March 20, 2012. Location: CO, Copyright Hearing Room, LM-408,
James Madison Building, Library of Congress, 101 Independence Ave., SE.
9:30 AM. The
House Financial Services
Committee (HFSC) will hold a hearing titled "Cyber Threats to Capital
Markets and Corporate Accounts". See,
notice. Location: Room 2128, Rayburn Building.
9:30 AM. The
House Judiciary Committee (HJC) will hold a hearing titled "Class Action Seven
Years After the Class Action Fairness Act". The witnesses will be
Martin Redish
(Northwestern University law school),
Thomas Sobol (Hagens
Berman), and John
Beisner (Skadden Arps). See,
notice.
The CAFA was S 5
in the 109th Congress. It is now Public Law No. 109-2. It is codified at
28 U.S.C. § 1332(d)(2). Location:
Room 2141, Rayburn Building.
1:00 - 2:30 PM. American
Bar Association's (ABA) Section of Intellectual Property Law will host a webcast and
teleconferenced panel discussion titled "Understanding the
America Invents Act: A Sweeping Change of U.S. Patent Prosecution Practice".
The speakers will be Robert Bahr (USPTO),
Thomas Irving (Finnegan Henderson),
Teresa Rea (USPTO), MaCharri Jones (Eli Lilly), Donna Meuth (Eisai Inc.). The
price ranges from $75 to $195. CLE credits. See,
notice.
Deadline to submit initial comments to the Federal
Communications Commission (FCC) in response to its
Notice of Proposed
Rulemaking (NPRM) regarding interoperability in the 700 MHz bands. The FCC adopted
and released this NPRM on March 21, 2012. It is FCC 12-31 in WT Docket No. 12-69. See,
notice in the
Federal Register, Vol. 77, No. 63, Monday, April 2, 2012, at Pages 19575-19589. See also,
stories titled "FCC Adopts NPRM on Interoperability in 700 MHz Bands" and
"Reaction to FCC NPRM on Interoperability in 700 MHz Bands" in
TLJ Daily E-Mail Alert No.
2,353, March 22, 2012.
10th anniversary of the Supreme Court's
opinion in
Holmes v. Vornado, 535 U.S. 826 (2003). See, story titled
"Supreme Court Rules on Appellate Jurisdiction of Federal Circuit" in
TLJ Daily E-Mail
Alert No. 443, June 4, 2002. HR 1249
[LOC |
WW], the "America
Invents Act", Public Law No. 112-29, at Section 19(b), undid the holding in this case.
Deadline to submit reply comments to the Federal
Communications Commission (FCC) in response to its
Notice of Proposed
Rulemaking and Notice of Inquiry (NPRM and NOI) [84 pages in PDF] regarding use of MSS
Spectrum for Terrestrial Broadband. The FCC adopted and released this item on March 21, 2012.
It is FCC 12-32 in WT Docket No. 12-70, ET Docket No. 10-142, and WT Docket No. 04-356. See,
notice in the
Federal Register, Vol. 77, No. 74, Tuesday, April 17, 2012, at Pages 22720-22748. See also,
story titled "FCC Adopts NPRM Regarding Use of MSS Spectrum for Terrestrial Broadband"
in TLJ Daily E-Mail Alert No. 2,353, March 22, 2012.
|
|
|
Monday, June 4 |
The Senate will meet at 2:00 PM. It will consider
the nomination of Timothy Hillman to be a Judge of the U.S. District Court (DMass).
9:00 AM. The Copyright
Office (CO) will continue its hearing regarding its triennial review of exemptions to
the anticircumvention provisions of 17
U.S.C. § 1201. The deadline to submit requests to testify is 5:00 PM EDT on April 2, 2012.
See, story titled "Copyright Office Schedules Hearings on Proposed Anticircumvention
Exemptions" in TLJ Daily
E-Mail Alert No. 2,351, March 20, 2012. Location: CO, Copyright Hearing Room, LM-408,
James Madison Building, Library of Congress, 101 Independence Ave., SE.
12:00 NOON - 1:00 PM. The American
Bar Association's (ABA) Section of Antitrust Law will host a teleconferenced panel discussion
titled "February Antitrust Update for In-House Counsel". The speakers will be
from the law firm of Latham & Watkins. No CLE credits. Register
by contacting dorothy at dorothyraymond dot com. See,
notice.
|
|
|
Tuesday, June 5 |
9:00 AM. The Copyright
Office (CO) will continue its hearing regarding its triennial review of exemptions to
the anticircumvention provisions of 17
U.S.C. § 1201. The deadline to submit requests to testify is 5:00 PM EDT on April 2, 2012.
See, story titled "Copyright Office Schedules Hearings on Proposed Anticircumvention
Exemptions" in TLJ Daily
E-Mail Alert No. 2,351, March 20, 2012. Location: CO, Copyright Hearing Room, LM-408,
James Madison Building, Library of Congress, 101 Independence Ave., SE.
9:30 - 11:00 AM. The DC
Bar Association will host a presentation titled "What You Need to Know About the
New Patent Laws under the AIA". The price to attend is $15. Reporters are barred
from attending most DC Bar events. No CLE credits. See,
notice. For more information, call 202-626-3463. Location: DC Bar Conference Center,
1101 K St., NW.
1:00 - 2:00 PM. American
Bar Association's (ABA) Section of Antitrust Law will host a webcast and teleconferenced
panel discussion titled "Privacy
and Information Security Update". The speakers will be Aryeh Friedman (Dun &
Bradstreet), Lisa Sotto (Hunton & Williams) and Aaron Simpson (Hunton & Williams).
For more information, and to register, contact Jeanne Welch at jawelch at vorys dot com. See,
notice.
2:30 PM. The
Senate Intelligence Committee (SIC) will hold a closed hearing titled "Intelligence
Matters". See,
notice. Location: Room 219, Hart Building.
Day one of a three day conference hosted by the Department of
Commerce's (DOC) National Institute of Standards and
Technology (NIST) titled "Cloud Computing Forum & Workshop V". See,
notice in the
Federal Register, Vol. 77, No. 87, Friday, May 4, 2012, at Page 26509. Location: DOC, Hoover
Building, Room __, 401 Constitution Ave., NW.
|
|
|
Wednesday, June 6 |
8:00 AM - 2:30 PM. Day one of a two day event titled "Health
Privacy Summit". See, notice.
Location: Georgetown Law Center, 600 New Jersey Ave., NW.
Day two of a three day conference hosted by the Department of
Commerce's (DOC) National Institute of Standards and
Technology (NIST) titled "Cloud Computing Forum & Workshop V". See,
notice in the
Federal Register, Vol. 77, No. 87, Friday, May 4, 2012, at Page 26509. Location: DOC, Hoover
Building, Room __, 401 Constitution Ave., NW.
9:00 AM. The Copyright
Office (CO) will conclude its hearing regarding its triennial review of exemptions to
the anticircumvention provisions of 17
U.S.C. § 1201. The deadline to submit requests to testify is 5:00 PM EDT on April 2, 2012.
See, story titled "Copyright Office Schedules Hearings on Proposed Anticircumvention
Exemptions" in TLJ Daily
E-Mail Alert No. 2,351, March 20, 2012. Location: CO, Copyright Hearing Room, LM-408,
James Madison Building, Library of Congress, 101 Independence Ave., SE.
9:00 AM - 5:00 PM. Day one of a two day conference hosted by the
National Institute of Standards and Technology
(NIST) and the Department of Health and Human Services (DHHS) titled "Safeguarding
Health Information: Building Assurance through HIPAA Security". See,
notice. The price to
attend is $395. Location: Ronald Reagan Building and International Trade Center.
10:15 AM. The
House Commerce Committee's (HCC)
Subcommittee on Communications
and Technology will hold a hearing titled "The Future of Audio". See,
notice. Location: Room 2322, Rayburn Building.
12:00 NOON - 1:30 PM. The
Information Technology and Innovation
Foundation (ITIF) will host a discussion of the
book [Amazon] titled "Time to Start Thinking". The speakers will be the
author, Ed Luce, and Robert Atkinson (head of the ITIF). See,
notice. Free. Open to the public. Location: ITIF/ITIC, Suite 610, 1101 K
St., NW.
1:30 PM. The
House Foreign Affairs Committee's
(HFAC) Subcommittee on Asian and the Pacific will hold a hearing titled "What's
Next for the U.S.-Korea Alliance?". See,
notice.
Location: Room 2172, Rayburn Building.
6:00 - 8:00 PM. The Federal Communications
Bar Association's (FCBA) Wireless Telecommunications Committee will host a program
titled "The Road Ahead for Spectrum". Registrations and cancellations are
due by 12:00 NOON on June 5. The price to attend ranges from $25 to $125. Location:
Wiley Rein, 1776 K St., NW.
Deadline to submit comments to the
National Institute of Standards and Technology's (NIST)
Computer Security Division (CSD) regarding its its draft
NIST
IR-7848 [38 pages in PDF] titled "Specification for the Asset Summary Reporting
Format 1.0".
|
|
|
Thursday, June 7 |
8:00 AM - 2:30 PM. Day two of a two day event titled "Health Privacy
Summit". See, notice.
Location: Georgetown Law Center, 600 New Jersey Ave., NW.
Day three of a three day conference hosted by the Department of
Commerce's (DOC) National Institute of Standards and
Technology (NIST) titled "Cloud Computing Forum & Workshop V". See,
notice in the
Federal Register, Vol. 77, No. 87, Friday, May 4, 2012, at Page 26509. Location: DOC, Hoover
Building, Room __, 401 Constitution Ave., NW.
9:00 AM - 4:30 PM. Day two of a two day conference hosted by the
National Institute of Standards and Technology
(NIST) and the Department of Health and Human Services (DHHS) titled "Safeguarding
Health Information: Building Assurance through HIPAA Security". See,
notice. The price to
attend is $395. Location: Ronald Reagan Building and International Trade
Center.
9:30 AM. The
House Judiciary Committee (HJC) will hold a hearing titled "Oversight
of the United States Department of Justice". See,
notice. Location: Room 2141, Rayburn Building.
9:30 AM - 2:00 PM. The Federal Communications Commission's (FCC)
North American Numbering
Council (NANC) will meet. Location: FCC, 445 12th St., SW.
11:00 AM - 12:30 PM.
American Bar Association's (ABA)
Section of Intellectual Property Law will host a webcast and teleconferenced
panel discussion titled "International Patent
Litigation: A Compare and Contrast of Patent Litigation in Different Countries".
The speakers will be Koen Bijvank (Vereenigde), David Hill (Finnegan
Henderson), Steve Schad (ESCO Corporation), and Stephanie Roberts (Banner &
Witcoff). The price ranges from $75 to $195. See,
notice.
12:00 NOON - 1:30 PM.
American Bar Association's (ABA)
Section of International Law will host a webcast and teleconferenced
panel discussion titled "HIPAA and HITECH Act
Fundamentals: What You Need to Know Now About the Privacy and Security Rules".
The speakers will be Eddie Williams (Holland &
Knight), Elaine Zacharakis (Zacharakis Loumbas Law), and Clay Countryman (Breazeale
Sachse & Wilson). The price ranges from $95 to $195. CLE credits. See,
notice.
2:30 PM. The
Senate Intelligence Committee (SIC) will hold a closed hearing titled "Intelligence
Matters". See,
notice. Location: Room 219, Hart Building.
Day one of a two day event hosted by the
American Intellectual Property Law Association (AIPLA) titled "Legal
Secretaries & Administrators Conference". For more information, contact aipla
at aipla dot org or call 703-415-0780. Location: USPTO, Alexandria, VA.
|
|
|