On Strip Bars and the Constitution – Law Blog – WSJ

As far as “sin taxes” go, it seems fairly clear that governments can levy them on cigarettes and booze. Earlier this year, after all, a new federal tax pushed the cost of a pack of smokes to over $9 here in NYC.

But may a state enact a tax on a different kind of “sin” — the kind committed by patrons of strip bars?

On Thursday, the issue was argued before the Texas Supreme Court. The main concept up for debate: whether Texas’ “pole tax” on strip clubs’ patrons runs afoul of the First Amendment’s freedom of expression. Click here for the WSJ story, from reporter Leslie Eaton.

The case arrives after rulings from two lower courts, which found the law, which imposes a $5-per-fee visit on strip clubs, unconstitutional. The rationale: that singling out a particular business based on the content of its expression — like “exotic dancing” — violates the First Amendment.

Texas disagreed, and filed an appeal. The state argues that it isn’t levying the fee to discourage pole dancing. Instead, the state says, by deterring people from going to clubs, the fee would help reduce rapes that it claimed are linked to drinking alcohol while watching dancers disrobe.

The law’s chief sponsor, Ellen Cohen, a Democrat from Houston who is former director of the Houston Area Women’s Center, said in a brief filed with the court that her aim was to combat sexual assault.

via On Strip Bars and the Constitution – Law Blog – WSJ.

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Law.com – Verizon Patent Case Marks a First for Intellectual Ventures

Large patent hoarder Intellectual Ventures says it’s taking a new customer-friendly approach.

The Bellevue, Wash., company that owns around 30,000 patents for the first time assigned one of its members a patent to use as ammunition in a lawsuit. Verizon Communications, which agreed to pay IV as much as $350 million in a 2008 deal, is using one of IV's patents to strike back at TiVo in a patent fight.

Don Merino, vice president of licensing at IV, said it’s an example of IV taking “a much more customer-centric approach.”

“We want to figure out how to get out of the, ‘I win, you lose’ to a much more collaborative,’We both win,’” said Merino.

This is new talk from IV, whose secrecy and vague business plans caused big tech companies to worry in the past about what exactly IV was going to do with all of its intellectual property.

The shift comes as IV has faced competition from San Francisco’s RPX Corp., a patent aggregator that is more upfront about its business model and that has played a more active role in getting rid of patent troll lawsuits against its members. RPX has signed up some of IV’s members, including Cisco Systems Inc. and Microsoft Corp.

In the past year, IV has started to give signals about what it would do with its stockpile of patents. It has struck deals with patent trolls that are now using the IP in lawsuits. Assigning a patent to Verizon is another use of its IP. IV wouldn’t say whether it sold or simply loaned the patent to Verizon for its TiVo fight.

The original lawsuit was filed by TiVo against Verizon in August. IV then looked through its portfolio and found a patent that Verizon could use to hit back at TiVo, Merino said. Verizon asserted the patent on an “Apparatus and Method of Selecting Video Programs Based on Viewers’ Preferences” in a counterclaim (PDF) against TiVo on Wednesday in the Eastern District of Texas.

The $350 million Verizon deal was first reported by The Wall Street Journal in 2008. Merino confirmed on Thursday that Verizon is a member of IV.

via Law.com – Verizon Patent Case Marks a First for Intellectual Ventures.

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Report on New Patent Litigation Trends and the Increasing Impact of Nonpracticing Entities Released by… — NEW YORK, Jan. 25 /PRNewswire/ –

According to a new report released today by PricewaterhouseCoopers LLP (PwC), the debate over patent reform has become more strident in the past few years as many of the world's largest companies face increasing threats of litigation from competitors and from organizations known as nonpracticing entities (NPEs) that do not design, manufacture, or distribute products.

The report, “A Closer Look: Patent Litigation Trends and the Increasing Impact of Nonpracticing Entities,” studies the recent trends of patent decisions. PwC has compiled and maintained a thorough database of patent damages awards (from 1980 through 2008), collecting information about patent holder success rates, appellate reversals and modifications, time-to-trial statistics (from 1995 through 2008), and practicing versus nonpracticing entity statistics (from 1995 through 2008).

“Companies are continuing to realize value from patents — whether protecting their product commercialization initiatives, or through their enforcement and other monetization efforts of patents — they see the upside of using patents for competitive advantage,” said Chris Barry, PricewaterhouseCoopers Advisory partner in the Forensic Services practice. “With U.S. patent trial success rates at their highest level in history, patent holders are winning considerable awards for damages.”

Key findings from PricewaterhouseCoopers include:

Annual median damages awards ranged from $2.2 to $10.6 million.

Damages awards for NPEs have averaged more than double those for practicing entities.

NPEs have been successful 29 percent of the time overall versus 41 percent for practicing entities, due to the relative lack of success for NPEs at summary judgment; however, both have roughly a 2/3 win rate at trial.

The disparity between jury and bench awards has widened and is likely a contributing factor to the significant increase in use of juries since 1995.

Reasonable royalties continue to be the predominant measure of damages awards.

Alleged infringers increase their trial success rates slightly as plaintiffs seeking declaratory judgment.

While the median time-to-trial has remained fairly constant since 1995, significant variations exist between jurisdictions.

Certain federal district courts (particularly Virginia Eastern and Texas Eastern) continue to be more favorable to patent holders, with shorter time-to-trial, higher success rates, and higher median damages awards.

Five federal district courts accounted for 33 percent of all identified decisions involving an NPE as the patent holder.

via Report on New Patent Litigation Trends and the Increasing Impact of Nonpracticing Entities Released by… — NEW YORK, Jan. 25 /PRNewswire/ –.

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Team, Inc. Reports 2nd Quarter Earnings and Affirms Full Year Guidance — ALVIN, Texas, Jan. 5 /PRNewswire-FirstCall/ –

As previously reported, the Audit Committee is conducting an independent investigation regarding possible violations of the Foreign Corrupt Practices Act (“FCPA”) in cooperation with the U.S. Department of Justice and the Securities and Exchange Commission. While the investigation is ongoing, management continues to believe that any possible violations of the FCPA are limited in size and scope. The investigation is now expected to be completed during the first calendar quarter of 2010. The total professional costs associated with the investigation are now projected to be about $3.0 million.

via Team, Inc. Reports 2nd Quarter Earnings and Affirms Full Year Guidance — ALVIN, Texas, Jan. 5 /PRNewswire-FirstCall/ –.

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ABB Entangled In Corruption Case – Forbes.com

The Swiss electrical engineering company ABB has been implicated in a conspiracy to pay bribes to Mexican government officials to secure $81 million of contracts from the Mexican state electricity monopoly, according to legal documents filed by the U.S. government.

John O’Shea, the 57-year-old former general manager of the Texas unit of ABB, was arrested last week for his alleged role in a conspiracy to bribe Mexican government officials and get business from the Comision Federal de Electricidad, or CFE. An indictment filed by federal prosecutors charges O’Shea with conspiracy to violate the Foreign Corrupt Practices Act.

According to the indictment, O’Shea arranged for CFE officials to get payments totaling as much as 10% of the revenue ABB received from CFE. In one deal, O’Shea allegedly got 1% of the contract revenue as a kickback payment.

via ABB Entangled In Corruption Case – Forbes.com.

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Can Tech Shows Boost a Firm’s Bottom Line?

You can't help but wonder about an Am Law 200 firm that significantly cut or eliminated IT and litigation support staff attendance at this year's LegalTech and ILTA '09 conferences. The reasons vary, from “it wouldn't look right” to “we just have to cut expenses everywhere.”

Good thing these shows weren't held in Las Vegas. No firm would have sent its IT folks there for a week of blackjack and “Texas Hold-'em” parties. Not a chance. It just wouldn't send the right message; what with the layoffs, frozen salaries, and the elimination of bonuses. But these shows weren't in Vegas, and despite the beliefs of some (dare I say, many?), they aren't paid vacations for the technology staff.

Last year, law firms sent 1,320 people to the ILTA conference in Dallas. Of those, 735 came from firms with more than 250 attorneys. A year later, at a site near Washington, D.C., that for millions is a train ride away, law firm attendance dropped 47 percent, to 704 full-conference attendees. Firms with more than 250 attorneys sent only 376 folks, a drop of nearly 50 percent. These numbers don't include the attendees from corporate law departments, law schools, or the government, with ILTA's total attendance down 38 percent from the prior year.  And ILTA wasn't alone — almost all conferences in the legal arena suffered a drop in attendance due to the economy. LegalTech's double-digit growth over the last few years was arrested this year. According to Henry Payne Dicker, vice president of ALM Events, attendance for the New York show was down slightly from previous years.

We don't have data on what percentage of a firm's technology budget was saved by not sending some of its IT staff to this conference, but with ILTA's $1,025 fee (which included meals), and a deeply discounted hotel room, it couldn't have been much. And, there are firms (mine included) that will improve their bottom line by a lot more than what they spent on attendees of the ILTA '09 conference — because they realize that surviving (and hopefully flourishing) in these economic times is as much about exploring new efficiencies as it is about cutting costs.

[continued] Law.com – Can Tech Shows Boost a Firm’s Bottom Line?.

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