WTO Releases FSC Replacement Act Report
8/20. A WTO panel made public its final report
on the legality of the FSC Repeal and Extraterritorial Income Exclusion Act of
2000, passed in November of 2000. This is the law which replaced the Foreign
Sales Corporation (FSC) provisions of US tax law. As expected, the report finds
that the US law constitutes a prohibited export subsidy. The WTO ruled earlier
that the previous FSC tax regime is an illegal export subsidy. So, late last
year the Congress passed replacement legislation, which the EU again challenged.
The EU's challenges to the US tax regime are, in part, retaliation for the US's
challenges to EU agriculture policies. See, EU release.
The FSC tax regime benefits US exporters, including software and hardware
producers with significant sales abroad, such as Microsoft, Cisco, and Motorola.
Also, ongoing disputes between the US and EU over agriculture policies and the
FSC tax regime have the potential to lead to an escalating trade war. The EU has
indicated that if this were to occur it would target US high tech exporters for
retaliatory tariffs. For background see, TLJ News Analysis:
The FSC Tax Bill and Technology Exporters, Nov. 17, 2000.
Law Prof Releases Study Criticizing Domain Name Dispute System
8/20. Michael Geist, a law
professor at the University of Ottawa,
released a study [PDF]
titled "Fair.com?: An Examination of the Allegations of Systemic Unfairness
in the ICANN UDRP." The paper examines the first 3,000 plus cases decided
under the Internet Corporation for Assigned
Names and Numbers’ Uniform Domain Name Dispute Resolution Policy. Among
the conclusions are that complainants usually win, three judge panels are less
likely to rule for the complainant that one judge panels, forum shopping is
common, assignment of judges is not random, and ICANN must reform the system.
Forum Shopping. Three bodies have been accredited to resolve domain name
disputes. Geist found that forum shopping exists. He wrote that "The two
ICANN- accredited providers with the most favorable outcomes for complainants
(WIPO and the National Arbitration Forum (NAF)) quickly captured the lion’s
share of the caseload at the expense of eResolution, the least complainant-
friendly of the major ICANN- accredited providers. Furthermore, forum shopping
has continued to increase over time."
Single v. Three Judge Panels. Geist found that "The data shows that
when providers control who decides a case – which they do for all single panel
cases -- complainants win just over 83 percent of the time. When provider
influence over panelists diminishes – which occurs in three-member panel cases
since in these cases both the complainant and respondent choose one of the
panelists as well as exercise some influence over the choice of the third member
of the panel -- the complainant winning percentage drops to 60 percent."
Geist concludes that "This study provides compelling evidence that forum
shopping has become an integral part of the UDRP and that the system may indeed
be biased in favor of trademark holders."
USPTO Seeks Comments on Draft Convention on Jurisdiction and
Judgments
8/20. The USPTO published in the Federal
Register a notice
of hearing and request for comments on the Draft Convention on Jurisdiction
and Foreign Judgments in Civil and Commercial Matters. The USPTO will hold a
hearing on September 11, 2001, form 9:30 AM until 5:00 PM. Persons who wish to
testify must submit a request by August 31, 2001. The hearing will be held
at the Patent Theater, Second Floor of Crystal Park 2, 2121 Crystal Drive,
Arlington, Virginia. Written comments are due by October 19, 2001. See, Federal
Register, August 20, 2001, Vol. 66, No. 161, at Pages 43575 - 43578.
The Hague Conference on Private International Law is negotiating a Convention designed to
create common jurisdiction rules for international civil and commercial cases
and to provide for international recognition and enforcement of judgments issued
under these rules.
CD Sales Drop as Consumers Get Music On Line
8/20. The Recording Industry Association of
America (RIAA) stated that number of full length CDs sold during the first
half of 2001 dropped 5.3% from the same period last year. Hillary Rosen, P/CEO
of the RIAA stated in the same release
that "more consumers are looking to get music on-line and are experimenting
with a number of approaches, including legitimate subscription services."
She added that "Many in the music community are concerned about the
continued use of CD-Rs (compact disc recordables) and we believe this issue
deserves further analysis. A preliminary survey of tech savvy online music
enthusiasts recently conducted for the RIAA showed that nearly one out of two
consumers surveyed downloaded in the past month and nearly 70 percent burned the
music they downloaded. All of this activity continues to show the passion of the
consumer for music and the need for both legal protection and legitimate
alternatives."
FTC Sues Web Based Quacks
8/20. The FTC
filed a complaint in
U.S. District Court (CDCal)
against Liverite Products Inc., several of its principals, and others, alleging
violation of the Federal Trade Commission Act (FTCA). Defendants advertised and
sold an alleged liver treatment through web sites, and by other means.
Defendants made unsubstantiated claims about their treatment in violation of
Section 5(a) of the FTCA, 15 U.S.C. § 45(a),
which prohibits unfair or deceptive acts or practices in or affecting commerce.
The FTC and defendants simultaneously filed a stipulated final order
which requires defendants to pay $60,000 in redress, and enjoins the defendants
from making false claims. See also, FTC release.
Ashcroft Picks Wainstein for EOUSA
8/20. Attorney General John Ashcroft named Ken Wainstein as Director of
the Executive Office for United
States Attorneys (EOUSA) at the Department of Justice. The EOUSA provides
administrative support to the 94 U.S. Attorneys' offices. Wainstein has
previously worked as interim U.S. Attorney for the District of Columbia,
Principal Assistant U.S. Attorney, Deputy Chief of the Superior Court Division,
and Deputy Chief of the Homicide Section. See, DOJ release.
Computer Crime
8/20. Geoffrey Osowski and Wilson Tang each pled guilty in U.S.
District Court (NDCal) to one count of computer fraud in violation of 18
U.S.C. § 1030(a)(4). The two exceeded their authorized access to the computer
systems of Cisco Systems in order to
illegally issue almost $8 million in Cisco stock to themselves. They also agreed
to the forfeiture of assets already seized by the government, and agreed to pay
restitution in the amount of the difference between $7,868,637 and the amount
that the government will recover from the sale of the seized items. See, Osowski
Plea Agreement [PDF], Tang
Plea Agreement [PDF], and USAO
release.
SBC Files 271 Petition for Arkansas and Missouri
8/20. SBC Communications filed a Section 271 petition with the
FCC for permission to provide interLATA services in the states of Arkansas and
Missouri. SBC has already received approval from the FCC to provide long
distance service in Texas, Kansas and Oklahoma. See, SBC
release.
Fed Circuit Reverses in Glaxo v. Ranbaxy
8/20. The U.S.
Court of Appeals (FedCir) issued its opinion in Glaxo
v. Ranbaxy Pharmaceuticals, a patent infringement case involving
pharmaceuticals. Glaxo obtained U.S.
Patent No. 4,267,320 in May of 1981 on a family of cephalosporin
antibiotics. Glaxo obtained a two year term extension for the '320 patent under
35 U.S.C. § 156. That patent expired on May 12, 2000. In December 1985,
Glaxo obtained U.S.
Patent No. 4,562,181 regarding an amorphous form of cefuroxime ester. In
April 1999, Ranbaxy filed an Abbreviated
New Drug Application (ANDA) with the FDA seeking approval to market a generic
tablet form of cefuroxime axetil in anticipation of the '320 patent's
expiration. Glaxo opposed Ranbaxy's ANDA and filed a complaint in U.S. District
Court (DNJ)
against Ranbaxy under 35
U.S.C. § 271(e)(2). The District Court entered a preliminary injunction,
precluding Ranbaxy from marketing any cefuroxime axetil product under its ANDA.
Ranbaxy brought this interlocutory appeal. The Court of Appeals held that the
District Court made an error in claim construction, vacated the injunction, and
remanded.
Copps Finalizes Staff 8/20. FCC Commissioner Michael Copps announced
members of his permanent staff. Jordan Goldstein will be Senior Legal Advisor,
and Susanna Zwerling and Paul Margie will be Legal Advisors. Carolyn Conyers is
Confidential Assistant. See, FCC
release.
Jordan Goldstein, who is currently interim Senior Legal Advisor, was
named Senior Legal Advisor. He will focus on competition, universal service, and
broadband deployment. Goldstein was previously a legal advisor to former
Commissioner Susan Ness. Goldstein has also been legal counsel to the Chief of
the Common Carrier Bureau (CCB), an
attorney in the CCB's Policy and Program Planning Division, and before that, an
attorney at the NTIA.
Susanna Zwerling, who is currently interim Legal Advisor, has been named
Media and Consumer Protection Legal Advisor. She will focus on all media issues,
and consumer protection issues, including slamming, cramming, and truth in
billing. She was previously Assistant Bureau Chief for Planning and
Communication in the Mass Media Bureau
(MMB). Prior to that she was special counsel to the Chief of the MMB, and an
attorney advisor in the Policy and Rules Division. Before joining to the FCC in
1997, she was a trial attorney in the Telecommunications Task Force of the Antitrust Division of the Department of
Justice. And prior to that, she was an associate in the New York City office of
the law firm of Debevoise & Plimpton.
She also was a legislative assistant to former Representative and now Sen. Charles Schumer (D-NY).
Paul Margie was named Spectrum and International Legal Advisor. Margie,
who started work for Commissioner Copps on August 20, was previously Senior
Commerce Counsel for Sen. John
Rockefeller (D-WV), a senior member of the Senate Commerce Committee, which
oversees the FCC. He is also an Adjunct Professor of Law at Georgetown
University (GU), where he co-teaches a course titled Law
in Cyberspace. He also previously worked at the Washington DC law firm of Wiley Rein & Fielding, in its communications
and technology law practice groups.
FEC Finally Picks General Counsel
8/20. The Federal Election Commission (FEC)
named Lawrence Norton to be its next General Counsel, after a long
search. The previous General Counsel, Lawrence Noble, resigned in
January. He announced his resignation in December of last year. Noble is now
Executive Director and General Counsel for the Center for Responsive Politics. Lois
Lerner, the FEC's Associate General Counsel for Enforcement, is the Acting
General Counsel.
Norton has been Associate Director in the Commodities
Futures Trading Commmission's Division of Enforcement since 1996. Norton
will begin work at the FEC in mid September. See, FEC release.
The FEC the federal regulatory commission responsible for enforcement of,
issuance of advisory opinions pursuant to, and promulgation of regulations
under, the Federal Election Campaign Act. The FEC has recently been involved in
matters pertaining to use of the Internet to solicit and receive campaign and
PAC contributions, and to engage in political speech.
Collocation Rules
8/20. The FCC published in the Federal
Register a final
rule pertaining to collocation. This order is in the proceeding named
"In the Matter of Deployment of Wireline Services Offering Advanced
Telecommunications Capability". It is numbered CC Docket No. 98-147. See,
Federal Register, August 20, 2001, Vol. 66, No. 161, at Pages 43516 - 43523. On
August 8 the FCC released this Fourth
Report and Order in PDF format. This order was adopted by the FCC on July
12. The order takes effect on September 19, 2001.
More News 8/20. President Bush wrote a letter
to the Speaker of the House of Representatives and the President of the Senate
regarding his decision to extend the Export Administration Act (EAA). He
extended the EAA by Executive
Order on August 17.
8/20. The FCC named Barbara Douglas
Associate Chief for Program Coordination and Management in the FC's Consumer
Information Bureau (CIB). She will be Chief of Staff to the Bureau Chief, Dane
Snowden. See, FCC
release [PDF].
Ninth Circuit Rules on Cable Companies' Use of Private
Easements
8/17. The U.S.
Court of Appeals (9thCir) issued its opinion
[PDF] in Cable
Arizona v. Coxcom, a case regarding the right of companies that
provide cable TV (and broadband Internet access) to access private easements in
order to connect to customers in apartment buildings. The Ninth Circuit joined
several other circuits in finding no such right.
Facts. Cable Arizona (which is also known as CableAmerica) is one franchised cable TV
service provider in Mesa, Arizona. CoxCom Inc. (a Cox
Communications company) is another. Both provide cable TV and broadband
Internet access. Feiga Partners, an owner of apartment buildings, granted CoxCom
private easements to offer cable service to residents of its apartment
buildings. CableAmerica (CA), which had previously contracted with Feiga, wanted
continued access to the property owned by Fiega.
District Court. CA filed a complaint in Arizona state court against
CoxCom, Fiega and others alleging that they violated the Communications Act of
1934, as amended, as well as other causes of action. CoxComm removed the case to
the U.S.
District Court (DAriz). Specifically, CA alleged violation of 47 U.S.C.§ 541(a)(2),
which gives cable franchisees the right to construct a cable system "over
public rights-of-way, and through easements, . . . which have been dedicated for
compatible uses". The District Court held for Defendants.
Appeals Court. The Appeals Court affirmed. Judge Rymer, writing for a
three judge panel, concluded that Section 541 "does not allow CableAmerica
access to a private apartment complex through easements granted to other cable
providers." The Court also noted that several other circuits have
interpreted the statute in the same manner. See, TCI of North Dakota v. Schriock
Holding Co., 11 F.3d 812 (8th Cir. 1993); Media General Cable of Fairfax v.
Sequoyah Condominium Council, 991 F.2d 1169 (4th Cir. 1993); Cable Holdings of
Georgia v. McNeil Real Estate Fund VI, 953 F.2d 600 (11th Cir.), cert. denied,
506 U.S. 862 (1992); and Cable Invs., Inc. v. Woolley, 867 F.2d 151 (3d Cir.
1989).
Bush Extends Export Administration Act
8/17. President Bush issued an Executive
Order extending the Export Administration Act (EAA). The EAA was scheduled
to expire on August 20. President Bush wrote: "I ... find that the
unrestricted access of foreign parties to U.S. goods and technology and the
existence of certain boycott practices of foreign nations, in light of the
expiration of the Export Administration Act of 1979, as amended ... constitute
an unusual and extraordinary threat to the national security, foreign policy,
and economy of the United States and hereby declare a national emergency with
respect to that threat." Congress is in the process of drafting and
debating legislation to modernize and extend the export control regime; however,
it has been delayed by opposition from Sen.
Fred Thompson (R-TN) and others. President Bush's extension was expected.
The Senate bill, S
149, sponsored by Sen. Mike Enzi
(R-WY), is a major overhaul of export control laws. It passed the Senate Banking Committee on March 22,
2001 by a vote of 19 to 1. It would ease restraints on the export of most dual
use products, such as computers and software. However, it would raise penalties
for violation of remaining prohibitions. It would also repeal provisions of the
1998 National Defense Authorization Act which require the President to use MTOPS
to set restrictions on the export of high performance computers. However, this
faces opposition in the Senate from Sen. Fred Thompson (R-TN), Sen. John Warner
(R-VA), and Sen. Richard Shelby (R-AL). Sen.
Majority Leader Tom Daschle (D-SD) announced just before the beginning of
the August recess that as soon as the Senate returns after Labor Day it will
hold several days of debate on S 149.
Similarly, on August 1, the House International Relations Committee approved HR 2581, also
titled the "Export Administration Act of 2001", sponsored by Rep.
Benjamin Gilman (R-NY), by a vote of 26 to 7.
Oracle Acquires Interactive Market Management System Patent
8/17. Oracle acquired Strategic Processing
Corp. (SPC) and its U.S.
Patent No. 4,799,156. The patent is titled "Interactive market
management system". It discloses a "system for interactive on-line
electronic communications and processing of business transactions between a
plurality of different types of independent users including at least a plurality
of sellers, and a plurality of buyers, as well as financial institutions, and
freight service providers." The patent application was filed in 1986 by
Eyal Shavit and Lester Teichner, and assigned to SPC. The patent was granted in
1989. Oracle, based in Redwood City, California, sells database management
system software, and related software and consulting and support services. See, Oracle
release.
Vitech Files Chapter 11 Petition
8/17. Vitech America, Inc. filed a Chapter
11 petition for bankruptcy in U.S.
Bankruptcy Court (SDFl). Vitech America is based in Miami, Florida. Through
its Brazilian subsidiary, Microtec, it makes PC, servers, peripherals,
networking products, software, and related items. Microtec did not file.
On March 9, 2001, Vitech filed a complaint in U.S. District Court (SDFl) against
Gateway, Inc. alleging fraud, negligent misrepresentation and breach of
contract. Gateway provided funding and operational support to Vitech.
Federal Circuit Affirms in Verizon v. Covad
8/17. The U.S.
Court of Appeals (FedCir) issued its opinion in Verizon
v. Covad, a patent infringement case involving DSL
technology. Verizon is the owner of U.S.
Patent No. 5,812,786 titled "Variable rate and variable mode
transmission system". Covad is a
competitor that provides DSL service. Verizon filed a complaint in U.S. District
Court (EDVa)
against Covad and others alleging infringement of the '786 patent. The District
Court determined that certain limitations required by claims 1 and 21 of the
'786 patent are not present in Covad's DSL systems either literally or under the
doctrine of equivalents, and granted Covad's motion for summary judgment of
noninfringement. The Appeals Court affirmed.
Appeals Court Denies Microsoft Motion for Stay
8/17. The U.S. Court of Appeals (DCCir)
issued an order
[PDF] denying Microsoft's August 7 motion for
stay of mandate pending petition
for writ of certiorari to the Supreme Court of the U.S.
The court wrote that "In order to obtain a stay of the mandate pending its
petition for certiorari, Microsoft must show that the "petition would
present a substantial question and that there is good cause for a stay."
See Fed. R. App. P. 41(d)(2)(A); see also D.C. Cir. Rule 41(a)(2) (movant for
stay of mandate must provide "facts showing good cause for the relief
sought"). For the reasons stated in the appellees’ response to the motion
for stay, it appears that Microsoft has misconstrued our opinion, particularly
with respect to what would have been required to justify vacating the district
court’s findings of fact and conclusions of law as a remedy for the violation
of 28 U.S.C. § 455(a). We need not decide, however, whether Microsoft’s
objections constitute a "substantial question" likely to lead to
Supreme Court review, because Microsoft has failed to demonstrate any
substantial harm that would result from the reactivation of proceedings in the
district court during the limited pendency of the certiorari petition."
Patent Offices Plan for XML Patent Applications
8/17. The U.S. Patent and Trademark Office
(USPTO) announced that "The USPTO, the European Patent Office (EPO), the
Japan Patent Office (JPO), and the World Intellectual Property Organization
(WIPO), are jointly developing document- type definitions (DTDs) for use with
the electronic filing of Patent Cooperation Treaty (PCT) applications. When
finalized in 2001 December, these DTDs will enable applicants to create
extensible- markup language (XML) international patent applications that can be
processed by machine." See, WIPO's current
draft of PCT DTDs and draft legal
framework. See also, USPTO release.
Bush Picks Stephens for Associate AG
8/17. President Bush announced his intent to nominate Jay Stephens to be
Associate Attorney General at the U.S.
Department of Justice. The Office
of the Associate Attorney General oversees the key divisions and offices
which administer civil laws, including the Antitrust
Division, Civil Division, Tax Division, Civil Rights Division, and
Environment and Natural Resources Division.
Stephens is currently a VP and Deputy General Counsel of Honeywell International. Honeywell is best
known for its aerospace products. However, it also makes materials that are used
in semiconductor manufacturing, electronic components, and high density
multi-layer printed circuit boards. Prior to working for Honeywell, Stephens was
a partner in the Washington DC office of the law firm of Pillsbury Madison and
Sutro (now Pillsbury Winthrop).
Prior to that he was U.S. Attorney for the District of Columbia (1988 - 1993)
and Deputy Counsel to the President (1986 - 1988).
More People and Appointments
8/17. Phil Perry will continue as Acting Associate Attorney General
pending confirmation of Jay Stephens by the Senate. See, White
House release.
8/17. President Bush announced his intent to nominate Richard Clarida to
be Assistant Secretary of the Treasury for Economic Policy. Clarida is
currently Chairman of the Department
of Economics at Columbia University, where he has been a professor since
1988. See, White
House release and Clarida's
Columbia bio.
More News
8/17. The Recording Industry Association of
American (RIAA) stated that the U.S.
District Court (CDCal) granted summary judgment to plaintiffs in a copyright
infringement case against Media Group and its President. See, RIAA release.
DOJ Approves 3D DTM Merger, but Requires Patent Licensing
8/16. The U.S. Department of Justice (DOJ) Antitrust
Division allowed 3D Systems Corporation
to purchase DTM Corporation, provided
that 3D and DTM license their Rapid Prototyping (RP) patents to a company that
will compete in the U.S. market.
3D (Nasdaq: TDSC) and DTM (Nasdaq: DTMC) announced their plans to merger on
April 3, 2001. See, 3D
release and DTM
release. 3D, Systems, based in Valencia, California, makes solid imaging
products and services. DTM, based in Austin, Texas, makes rapid prototyping and
manufacturing systems.
On June 6, the DOJ filed a complaint [PDF] in U.S.
District Court (DDC) against 3D and DTM
alleging violation of Section 7 of the Clayton Act, as amended, 15 U.S.C. § 18. The
DOJ alleged that "The acquisition would combine the two largest
manufacturers of RP systems in the United States, and would result in the
combined company having a domestic market share of approximately 70% by revenue.
It would entirely eliminate the existing competition between 3D Systems and DTM
in the development, production, and sale of RP systems -- competition which has
resulted in technological improvements to RP systems as well as lower prices to
companies that purchase these systems." The DOJ asked that the merger be
declared unlawful, and enjoined. The Presidents of both companies called the
lawsuit "without merit". See, 3D
release.
"Companies, universities and government agencies rely upon rapid
prototyping to develop and create models of next generation products," said
Charles James, AAG for the Antitrust Division, in an August 16 DOJ release.
"This resolution preserves competition and promotes innovation by allowing
a firm presently competing abroad to enter the U.S. market."
The procedure to be followed is the filing of a proposed consent decree and
competitive impact statement with the court, along with the publication in the
Federal Register. Any person may submit written comments to the DOJ within 60
days of publication. The Court may then enter final judgment.
Qualcomm Makes $300 Million Committment to NextWave
8/16. Qualcomm announced a
"commitment to make a $300 million strategic investment in NextWave Telecom, which is currently
deploying a CDMA2000 wireless network designed to provide high-speed wireless
Internet access and voice communications services." Qualcomm also stated
that this "is in connection with the equity financing provided for in
NextWave's plan of reorganization that was filed on August 6, 2001, and is
subject to NextWave's successful consummation of its plan of
reorganization." See, Qualcomm release.
NextWave obtained spectrum licenses at FCC auctions in 1996. The FCC permitted
NextWave to obtain the licenses, and make payments under an installment plan,
thus creating a debtor creditor relationship between NextWave and the FCC.
NextWave did not make payments required by the plan, and filed a Chapter 11
bankruptcy petition. The FCC cancelled the licenses. The U.S. Court of Appeals
(DCCir) ruled in its June 22, 2001, opinion
that the FCC is prevented from canceling the spectrum licenses by § 525 of the
Bankruptcy Code. The FCC has indicated that it may petition the Supreme Court
for writ of certiorari.
Computer Crime
8/16. A grand jury of the U.S.
District Court (EDCal) returned a 13 count indictment against Aleksey
Ivanov alleging unauthorized intrusions into computer systems owned by
companies in the U.S., transmitting threats to damage those computer systems,
extortion, and other charges. Ivanov is a computer hacker from Chelybinsk,
Russia, who was arrested in Seattle on November 10, 2000 by the FBI while
traveling to met with an undercover company established by the FBI. Ivanov also
faces similar computer intrusion charges in Seattle, Connecticut, California and
New Jersey.
The indictment alleges that Ivanov gained unauthorized access to computers at
VPM, a Folsom, California Internet services company. He then installed a
backdoor, and used VPM as a shell or conduit for hacking attacks on other
companies to avoid detection or exposure to his computer systems in Russia. The
indictment further alleges that Ivanov contacted the victims whose computers he
had accessed and compromised, for the purpose of demanding and extorting money.
He also threatened further damage to their computer systems. See, CCIPS release.
2nd Circuit Reverses in Goldberg v. Cablevision
8/16. The U.S.
Court of Appeals (2ndCir) issued its opinion in Goldberg
v. Cablevision, a case regarding cable public access channels.
Cablevision is a franchised cable TV provider in Oyster Bay, New York.
Cablevision's franchise agreement with the town requires it to maintain two
public, educational, and governmental (PEG) access channels. Goldberg, a
resident of Oyster Bay, offered a program to Cablevision for cablecasting
pursuant to its PEG obligation. The program also included an advertisement for
sales of copies of the program. Cablevision refused. Goldberg filed a complaint
in U.S. District Court (EDNY)
against Cablevision alleging violation of both New York law, and the
Communications Act of 1934. The District Court granted summary judgment to
Cablevision on the grounds that the program was commercial. The Appeals Court
vacated and remanded.
Criminal Copyright Infringement
8/16. A grand jury of the U.S.
District Court (NDCal) returned a four count indictment
[PDF] against Lawrence Jou and Eric Pang alleging criminal
copyright infringement in violation of 18 U.S.C. §§ 371and 2319. Specifically,
defendants produced and sold counterfeit CD containing Microsoft software. (Case
No. CR01 40135 CW.) See, USAO release.
Patent Infringement Case 8/16. The U.S.
Court of Appeals (FedCir) issued its opinion in Monsanto
v. Mycogen, a patent infringement case involving genetically
altering plants to make them more resistant to insects. Monsanto appealed from a
final judgment of invalidity and noninfringement of its U.S.
Patent No. 5,500,365. The Appeals Court affirmed.
People and Appointments
8/16. President Bush announced his intent to nominate Arden Bement
to be Director of the National Institute of
Standards and Technology (NIST) at the Department of Commerce. He is
currently head of the School of
Nuclear Engineering at Purdue University. He has been at Purdue since 1993,
first as a Professor of Engineering and Director of the Midwest
Superconductivity Consortium, and then as a Professor of Nuclear Engineering and
head of Purdue's School of Nuclear Engineering. Previously, he worked at TRW. See, White
House release.
8/16. Rep. Floyd Spence (R-SC)
died. He was Chairman of the House Armed
Services Committee.
More News
8/16. The Internet Assigned Numbers Authority
(IANA) published in its web site a report on the
establishment of the .name Top-Level Domain (TLD).
8/16. Microsoft announced the filing of three complaints in U.S. District Court
(EDNY)
against software resellers alleging distribution of counterfeit and/or
infringing Microsoft software. See, Microsoft
release.
8/16. Andersen issued a release
in which it stated that it had conducted a study that "shows that many U.S.
multinational corporations doing business internationally have made little
progress in adopting and implementing minimum worldwide standards for ensuring
the privacy of individuals' personal data." Andersen stated that it studied
75 Fortune 500 companies to determine whether they meet the "Safe
Harbor" privacy guidelines for complying with the EU Directive on Data
Protection. It found that none were in full compliance.
8/16. The SEC instituted an administrative
proceeding against Leslie Crone, an accountant and former CFO of Max
Internet Communications. The SEC simultaneously made findings and imposed
sanctions against Crone. He made misstatements regarding Max's financial
condition, including in filings with the SEC. He is suspended from appearing or
practicing before the SEC as an accountant. See, SEC release.