Assistant Attorney General Lanny Breuer Speaks on the Importance of IP Crime Enforcement « USDOJ: Justice Blog

Earlier this month, Assistant Attorney General Lanny A. Breuer of the Criminal Division represented the U.S Department of Justice as a keynote speaker at the 5th International Law Enforcement Intellectual Property (IP) Crime Conference in Madrid, hosted by INTERPOL, EUROPOL, and the Cuerpo Nacional de Policia. Breuer joined China, Ghana, Nigeria, Canada, Chile, Sweden and other countries to discuss solution-driven proposals to IP crime enforcement at the conference, which brought together more than 400 law enforcement and customs personnel from more than 50 countries.

Criminals manufacture and distribute counterfeit and pirated goods across the globe. While advances in technology bring our world closer together, those same advances allow those who would commit intellectual property crimes to operate globally without ever needing to leave their homes.

Assistant Attorney General Breuer spoke about the importance of devoting time and effort toward IP crime and raising global awareness about its harmful consequences:

“Counterfeit pharmaceuticals, counterfeit automotive and defense-industry parts, and other counterfeit consumer products can cause serious harm to people and endanger their lives; and . . . companies whose trade secrets are stolen or whose goods are counterfeited may be forced to downsize or go out of business, costing individuals their jobs. Nevertheless, the public perception at times persists that IP crime is victimless. It is therefore one of our important duties here this week to spread the message about the significant, and very real, costs of IP crime.”

via Assistant Attorney General Lanny Breuer Speaks on the Importance of IP Crime Enforcement « USDOJ: Justice Blog.

Canada’s Anti-Bribery Cops Reel One In

(Business Law Currents) Though Canada has had foreign bribery legislation in effect for over a decade, prosecutions have proven very few and very far between. So it remains to be seen whether the recent guilty plea by Calgary’s Niko Resources under Canada’s Corruption of Foreign Public Officials Act marks a scaling-up of Canadian efforts on this front, or just another blip on the radar screen.

Canada’s Corruption of Foreign Public Officials Act (CFPOA) entered into force on February 14, 1999. The Act contemplates prosecutions in respect of three offences: bribing a foreign public official, laundering property and proceeds, and possession of property and proceeds. In addition, the CFPOA enables prosecutions for conspiracy, aiding and abetting, counselling, and the like.

One aspect of the CFPOA that has attracted criticism from the Organisation for Economic Cooperation and Development and Transparency International is that there must be a “real and substantial link” between the offence and Canada. While a Bill has been introduced to eliminate this requirement, it has not passed into law, and arguably remains a significant barrier to investigations.

According to the last report of the Minister of Foreign Affairs to Parliament on the enforcement of the CFPOA, prior to this year there had only been one conviction under the Act. In 2005, Red Deer-based Hydro-Kleen Group Inc. pleaded guilty to two counts of bribing a U.S. immigration officer at the Calgary International Airport.

In addition, in 2010, charges under the CFPOA were laid by the RCMP against an employee of Cryptometrics, a facial and fingerprint recognition software company based in Ottawa. The allegations were that payments had been made to an Indian government official to facilitate the execution of a multi-million dollar supply contract. That matter apparently remains before the Canadian courts.

via Canada’s Anti-Bribery Cops Reel One In.

BP Scores Twice in Oil Spill Litigation | Courthouse News Service

BP won two rounds in its massive oil spill litigation when the federal judge overseeing the cases ruled that lead plaintiffs in property damage lawsuits cannot include racketeering claims, and that a lawsuit from BP business partner Anadarko Petroleum must be arbitrated.

U.S. District Judge Carl Barbier granted BP’s motion to dismiss a consolidated oil spill complaint brought under the RICO Act, calling plaintiffs’ inability to show a direct link between BP business practices and the economic damages sought the “fatal flaw in their RICO claims.”

The plaintiffs claimed that damages to property and business losses caused by the oil spill would not have happened if BP had not “defrauded government regulators in connection with the safety of its drilling operations, its ability to respond to any oil spill, and its response to the spill at the Macondo well.”

Judge Barbier ruled that a direct relationship between the alleged fraud and the plaintiffs’ injuries was required for a RICO complaint to stand.

That ruling does not affect the hundreds of other lawsuits seeking property damages, personal injury and other economic losses still pending in Barbier’s court.

via Courthouse News Service.

Apple hires lead patent counsel; Samsung alleges conflict of interest

Apple has recently replaced its top intellectual property counsel even as it is embroiled in numerous patent lawsuits—both offensive and defensive. Meanwhile, one of its biggest suits against rival Samsung could face a potential snag as Samsung has moved to have Apple’s outside lawyers removed due to potential conflict of interest.

Reuters reported on Tuesday that Richard Lutton, Jr, Apple’s on-staff lead intellectual property attorney, has left the company. BJ Watrous, previously a vice president and deputy general counsel for intellectual property at HP, is now listed as vice president and chief IP counsel for Apple on his LinkedIn profile.

Apple wouldn’t comment on the change, but intellectual property analyst Florian Müller told Reuters he believed that so far, Apple’s lawsuits against Android handset makers haven’t produced much in the way of tangible results. “The [recent] second complaint against HTC shows that Apple feels it did not handle its patent litigation perfectly in the past,” Müller said.

Apple has been on a hiring tear lately, shoring up its in-house IP legal staff as it has become one of the most litigious tech companies in the wake of the 2007 iPhone launch. Recently, the company settled a dispute with Nokia which had broiled into several lawsuits in the US and Europe. It remains involved in major legal disputes with HTC, Motorola, and Samsung.

Apple’s legal attack on Samsung, perhaps its most ambitious to date against another mobile phone manufacturer, is facing a potential hurdle even as Apple attempts to have sales of Galaxy smartphones and tablets halted via a preliminary injunction. Samsung has moved to have some, if not all, of Apple’s lawyers in its US lawsuit removed from the case for conflict of interest.

According to Samsung’s motion, filed on Monday, five attorneys who work for the law firm Bridges & Mavrakakis previously represented Samsung in a patent lawsuit while working for a different law firm. One of the patents asserted against Apple was also asserted against Sony Ericsson in that previous suit. Furthermore, attorney Kenneth Bridges “was in charge of the day-to-day operation of that case and was intimately involved in high level strategy discussions with Samsung representatives,” according to Samsung.

via Apple hires lead patent counsel; Samsung alleges conflict of interest.

HTC Pays Microsoft $5 Per Android Phone, Says Citi

Microsoft gets $5 for every HTC phone running Android, according to Citi analyst Walter Pritchard, who released a big report on Microsoft this morning.

Microsoft is getting that money thanks to a patent settlement with HTC over intellectual property infringement.

Microsoft is suing other Android phone makers, and it’s looking for $7.50 to $12.50 per device, says Pritchard.

via HTC Pays Microsoft $5 Per Android Phone, Says Citi.

BPO Firms in India & China Face Challenges From New Privacy Laws

Privacy and intellectual property are highly valued concepts in the west, but the same might not be the case elsewhere. Consider the notoriety of China for reverse-engineering devices (even cars!) and getting away with mass-producing cheap knockoffs. This has gone to the extent that the Chinese are sometimes accused of economic espionage.

 

To help improve the business environment, legislators have been moving for laws that will better protect intellectual property, as well as privacy. Chinese legislators plan to address this with the introduction of new data security regulations that seek to enforce stricter controls over how to handle personal data, to wit:

Organizations that manage personal data are required to keep such confidential, and will need explicit consent from the owner before this data is shared or divulged to another party.

Specific restrictions will apply to collection, processing, use, transfer and maintenance of personal information.

These principles will also apply to personal data on computer networks, and not just data in digital storage media or hard copy.

Personal information cannot be exported unless given express permission by authorities or the law.

But given strict requirements, the question here would be whether the proposed rules might actually end up harming the thriving outsourcing industry that relies on foreign contracts for survival. These draft regulations are actually stricter than their US and EU counterparts. For example, while US companies are expected to protect personal information regardless of the physical location of the data, the draft Chinese rules will prohibit companies from moving data across borders altogether without explicit consent.

via BPO Firms in India & China Face Challenges From New Privacy Laws.

Android OS bombshell: Did Google illegally lift copyrighted code? | ZDNet

Last summer, Oracle announced it had filed a complaint against Google, Inc. for patent and copyright infringement. In the lawsuit, Oracle claims that Google “knowingly, directly and repeatedly infringed Oracle’s Java-related intellectual property” in the development and distribution of the Android operating system.

Today, in a bombshell post on his FOSS Patents blog, Florian Mueller, an expert on intellectual property law and open source code, reports that “evidence is mounting that different components of the Android mobile operating system may indeed violate copyrights of Sun Microsystems, a company Oracle acquired a year ago.”

Oracle provided one example in its original complaint showing line-by-line copying of its code. Mueller’s new work looks at a completely different set of files that were not previously disclosed. He found examples of at least six files in one directory that show a “pattern of direct copying.” Those files are part of Froyo (Android 2.2) and Gingerbread (Android 2.3). In addition, he found a significant number of files in the Android codebase that are clearly marked as belonging to Sun:

I have identified 37 files marked as “PROPRIETARY/CONFIDENTIAL” by Sun and a copyright notice file that says: “DO NOT DISTRIBUTE!” Those files appear to relate to the Mobile Media API of the Sun Java Wireless Toolkit. Unless Google obtained a license to that code (which is unlikely given the content and tone of those warnings), this constitutes another breach. [Emphasis in original]

via Android OS bombshell: Did Google illegally lift copyrighted code? | ZDNet.

Google Plans Stronger Copyright Protections — InformationWeek

Google may have come of age during a time of copyright turmoil, and benefited from businesses like YouTube that built an audience through lax copyright enforcement, but these days the company seems to be more interested accommodating intellectual property holders than alienating them.

Some sticking points remain: The company allows advertisers to buy trademarked search keywords and to include trademarked terms claimed by third parties in their ad copy. Such practices have earned Google almost 10,000 complaints from about 5,000 trademark holders in the period from 2004 through 2009.

Bill McDermott, president of Global Field Operations as SAP, chats with InformationWeek’s Alex Wolfe about software as a service, mobile apps, multitenancy, Oracle, and business intelligence.

While tensions between rightsholders and the sharing constituency can be expected to remain, Google’s previous strategy of seeking forgiveness rather than asking permission has given way to something more pragmatic. On Thursday, Google said that it will be implementing four changes in the way it handles copyright issues.

In a blog post, Google general counsel Kent Walker characterizes the changes as a response to an expanding Web that brings with it a growing number of complaints about copyright infringement.

via Google Plans Stronger Copyright Protections — InformationWeek.

Patent Litigation Facts: c4sif.org

Pricey Patents

Intellectual property is a precious asset–if you can afford to protect it.

$10 million: Cost to defend a high-stakes patent suit

$3.8 million: Median damages awarded in patent infringement cases from 2001-07

482,871: Patent applications filed in 2009

191,927: Patents issued in 2009

2,700: Average number of patent-infringement lawsuits filed per year

$1,000: Hourly rate charged by top patent litigators

100: Average number of patent cases that go to trial each year

57%: Percentage of trials won by patent holders

34.6: Average number of months to secure a patent

Sources: USPTO website; General Patent Corp.; Stanford IP Database; Ropes & Gray; PricewaterhouseCoopers

via Patent Litigation Facts.

PTO, European Patent Office Team Up on Classification System

The latest U.S. Patent and Trademark Office innovation is a deal to work with the European Patent Office on a joint patent classification system aligned with global standards.

In an Oct. 22 joint announcement, the two agencies said they plan to create a patent classification system aligned with the World Intellectual Property Organization’s International Patent Classification system.

The agencies also announced that, while they will base the joint system on the European Patent Office (EPO) standard, it will also incorporate the best practices of both offices.

via PTO, European Patent Office Team Up on Classification System.