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Software Vendors Accuse Prestigious Law Firm Of Piracy
Court Feed News |
2007/12/11 12:25
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A Philadelphia law practice recently ranked among the nation's top 200 firms has been accused by a software industry group of stealing business applications made by Adobe, Symantec, and other vendors, InformationWeek has learned.
In a lawsuit filed last week on behalf of the vendors by the Software Information Industry Association, the firm of Fox Rothschild is alleged to have "engaged in the unauthorized reproduction and use" of software made by Adobe, Corel, Sonic Solutions, and Symantec. The vendors claim that Fox Rothschild's alleged "copyright infringement" is causing them "repeated and irreparable injury." The suit, filed in federal court in Northern California, does not specify which specific software products the firm is alleged to be using without authorization, or their estimated value. Fox Rothschild chief information officer Brook Lee did not immediately return a message left on his voice mail seeking comment. Adobe, Symantec, Corel, and Sonic are asking the court to prohibit the firm from continuing to use their software, and are seeking unspecified damages. They're also asking the court for an order that would prohibit Fox Rothschild from erasing the software from its networks or destroying any electronic documentation related to its use or installation. SIIA litigation counsel Scott Bain said Fox Rothschild's alleged software misappropriation came to the group's attention through a whistleblower program it operates. Talks aimed at settling the matter out of court went nowhere, Bain said. "They took a particularly aggressive stance toward us so we decided to sue," said Bain. "We were disappointed. You'd think that a law firm would know better." Fox Rothschild appeared last year on American Lawyer magazine's list of the nation's top 200 firms. |
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San Jose weighs limits on class-action claims
Class Action News |
2007/12/11 11:27
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The San Jose City Council today will consider new rules for filing claims that a prominent local lawyer says is an attempt to block class actions. "It's very interesting that this proposal is coming to the council while we've got this suit looming on the horizon," said James McManis, who in September filed a $1 million claim against the city seeking refunds on behalf of thousands of motorists who were ticketed under a controversial city program. The proposal by City Attorney Rick Doyle states that "no claim may be filed on behalf of a class of persons unless verified by every member of that class." Doyle said the new claims policy "is not really related to" the McManis claim or to class-actions in general. Instead, he said it's an attempt to help the city council better calculate the city's potential exposure to damages. Requiring all participants in a class-action to approve the claim filing, Doyle said, makes sense so that the city can determine in advance who has a valid claim. McManis filed his claim on behalf of San Jose motorist Jorge Luis Ramirez and "others similarly situated." The claim says thousands of motorists paid fines ranging from $99 to $350 under the city's now-defunct Neighborhood Automated Speed Compliance Program, or NASCOP. The program involved a city traffic engineer who sat in an unmarked van with a radar gun and digital cameras to snap speeding motorists as they drove past. The registered owner of the vehicle would then receive a ticket in the mail. City officials saw the program as a way to curb speeding without further taxing San Jose's thinly stretched police force. The city sent 7,000 violation notices in 2006 alone. The program also proved popular with many residents frustrated by speeding on neighborhood streets. City officials claimed the program reduced speeding 8 percent overall and cut the number of motorists who exceeded the posted limit by more than 10 mph by 62 percent. But Police Chief Rob Davis and the city's transportation director in February advised the council to convert the program to a warning-only system, citing growing concerns that the tickets could not stand up in court. They noted that since the program was enacted, the state Legislature had declared that photo radar could not be used for speed enforcement. Ramirez said he got two tickets for driving 28 mph and 30 mph in a 25 mph zone. He paid the fines but later was told by police officer friends that it is highly unusual to be ticketed for driving less than 5 mph over the posted limit. Claims are a step toward filing a lawsuit against a government agency. The purpose is to give the government a chance to pay the claim without being dragged into court. Peter Keane, a law professor at Golden Gate University, said Doyle's proposal "seems to go against the whole nature of what a class action suit is all about." He added that the purpose of such lawsuits is to appoint a representative for the entire class because it's virtually impossible to gather the whole group. "Whether the courts would look at it as something the city can or cannot do, I just don't know," Keane said. |
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High court gives U.S. judges more freedom in sentencing
Legal Career News |
2007/12/11 10:19
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The Supreme Court restored federal judges Monday to their traditional central role in criminal sentencing. In two decisions, the court said U.S. district judges have broad discretion to impose what they think are reasonable sentences, even if federal guidelines call for different sentences. One decision was particularly emphatic in saying judges are free to disagree with guidelines that call for much longer sentences for offenses involving crack cocaine than for crimes involving an equivalent amount of cocaine in powdered form. Monday's decisions include an important racial dimension: A 2002 report noted that 85 percent of defendants convicted of crack offenses were black, a fact the U.S. Sentencing Commission warned was leading to a loss of confidence in the fairness of the system. Both cases, each decided by the same 7-2 alignment, chided federal appeals courts for failing to give district judges sufficient leeway. In each case, the appeals court had overturned a sentence that was shorter than that provided by the guidelines. The two dissenters were Justices Clarence Thomas and Samuel Alito Jr. Judges still may not impose sentences above the range written into law by Congress or state legislatures. But the decision Monday gives judges broad discretion to impose sentences higher or lower than the federal guidelines, which are not statutes and are issued by the Sentencing Commission. The two decisions answered questions left hanging in 2005, when the court ruled that federal sentencing guidelines could be constitutional only if advisory rather than mandatory. Appeals courts were to review sentences for "reasonableness," the court said then. But the court did not say what it meant by either advisory or reasonableness. "The guidelines should be the starting point and the initial benchmark," Justice John Paul Stevens said in one of the decisions Monday, Gall vs. United States. But Stevens went on to say that the guidelines are just one factor in the "individualized assessment" that a judge must make in every case. In that case, Brian Gall, who had briefly been involved in an ecstasy distribution ring while a college student, received a sentence of three years' probation rather than 30 to 36 months in prison called for by the guidelines. The Eighth U.S. Circuit Court of Appeals, in St. Louis, ruled that such an extraordinary variance from the guidelines range required an equivalently extraordinary justification. That judgment was erroneous, Stevens said, in failing to give due deference to the district judge's reasoned and reasonable decision. The defendant in the crack cocaine case, Derrick Kimbrough, received 15 years instead of 19 to 221/2 for several cocaine and gun-related offenses. The trial judge said the higher guidelines term would be inappropriate for Kimbrough, a Marine veteran of the Persian Gulf War with an honorable discharge. The judge also disagreed with the relative treatment of crack and powdered cocaine, a disparity that he said led to disproportionate and unjust results. The Fourth U.S. Circuit Court of Appeals, in Richmond, Va., overturned the sentence on the grounds that it was unreasonable for a judge to depart from the guidelines "based on a disagreement with the sentencing disparity for crack and powder cocaine offenses." The Supreme Court took the unusual step of reinstating the original lower sentences, rather than simply instructing the appeals courts to reconsider the cases under an appropriately deferential standard of review. In her majority opinion in Kimbrough vs. United States, Justice Ruth Bader Ginsburg took account of an important policy development since the case was argued Oct. 2. On Nov. 1, amended guidelines for crack cocaine that the U.S. Sentencing Commission had long advocated took effect when Congress, which had the power to block them, let the moment pass without acting. Ginsburg said acceptance of the amendment by Congress undermined the government's position that judges should not have discretion to depart from the guidelines themselves. The amendments put into effect a relatively modest change that will reduce sentences for crack by about one-quarter. The Sentencing Commission was limited in what it could accomplish on its own. A 1986 federal law, enacted at the height of public concern about crack, incorporated a 100-to-1 ratio into mandatory minimum sentences - that is, the same sentence was imposed for a given amount of crack and 100 times that amount of powder. Bipartisan bills are pending in Congress to address the disparity. Today, the Sentencing Commission will vote on whether to make the Nov. 1 amendment retroactive to the 19,500 inmates imprisoned for crack offenses. |
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Supreme Court Upholds Budget Bill
Legal Career News |
2007/12/11 09:24
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A consumer-rights group's challenge to a deficit reduction law ended Monday when the Supreme Court let the law stand, even though the House and Senate never approved identical versions. The justices, without comment, refused to disturb lower court rulings dismissing Public Citizen's lawsuit contesting the validity of a $39 billion deficit-reduction bill that passed the House and Senate in slightly differing versions. The controversy arose in February 2006 after the House passed a version of the bill that was not identical to the Senate-passed measure. Both houses of Congress were under Republican control at the time. Ordinarily, one chamber would vote again to eliminate the discrepancy. But the vote in the House was 216-214, too close to risk another vote. Republicans who were in charge in the House refused Democrats' demands for a new vote. Instead, Republican leaders in the House and Senate signed off on the legislation and sent it to President Bush, who signed it into law on Feb. 8. The provision at issue involved how long Medicare pays for renting some types of durable medical equipment. The Senate voted for 13 months, as intended by Senate and House negotiators, but a Senate clerk erroneously put down 36 months in sending the bill back to House for a final vote. That's what the House approved Feb. 1. By the time the bill was shipped to Bush, the number was back to 13 months as passed by the Senate. Lower courts dismissed Public Citizen's lawsuit based upon a 1890 case in which the court held that judges are obliged to accept as accurate legislation that has been signed by the leaders of both houses of Congress. An occasional mistake, or even fraud, is better than the uncertainty that would flow from routine questioning of bills passed by Congress, the court said then. |
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Law Firms Warm Up to Climate Issues
Law Firm News |
2007/12/10 18:09
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Detroit-based Miller, Canfield, Paddock and Stone P.L.C. has created an inter-disciplinary practice group to address climate change and global warming issues for its business clients, becoming one of a growing number of local law firms that are doing so.
Mark Bennett, who joined Miller Canfield as senior counsel in August, leads a team of 13 lawyers from practices in public finance, real estate, environmental, government affairs and commercial lending.
Like many law firms, Miller Canfield sees this as an opportunity to offer clients service that goes beyond strict legal work into comprehensive advice on complex issues, Bennett said.
Climate change is a critical policy area affecting not only business and industry but consumers, government and regulatory agencies, so it offers opportunities for law firms — as well as communities and companies — to make money while addressing serious problems, Bennett said.
"So often in law, we've focused on mitigating risks," Bennett said, "but in the climate change area, we're emphasizing government incentives and operating efficiencies that can create economic return on investments in energy conservation."
Other major Detroit law firms agree that lawyers need to address a changing landscape in these practice areas, and most are doing so.
"Been there, done that," said Alan S. Schwartz, CEO and chairman of Honigman Miller Schwartz and Cohn L.L.P. "That is, we've had such a group for a while."
An Investment Incentives and Tax Savings practice was established in 2004, chaired by Steven Nadeau, and Honigman recently created an alternative energy group headed by Sandy Ring. Each group has 15 lawyers.
Both practice groups work with companies whose businesses involve regulating, patenting and marketing new energy sources as well as ways to take advantage of tax breaks and federal grants while they address environmental concerns, Nadeau said.
Larry McLaughlin, who heads Honigman's real estate practice, said his firm regularly advises clients on developments such as incentives for green real estate practices.
At Detroit-based Butzel Long, Beth Gotthelf, who heads the environmental practice, said, "Environmental law practice isn't the old environmental law it used to be, focusing on pollution, Super Sites and wetlands.
"We're doing energy, climate change and global warming issues, with ethanol plants and R&Ds on alternative fuel. And on new construction, it's 'What can we do to make buildings more energy efficient and what kind of credits are there if we make them more green?' " she said.
With lawyers needed for contracts, financial deals and regulatory compliance, it makes sense for law firms to offer a total package on such issues, Gotthelf said. "We are seeing much more clearly that environmental practice touches all aspects of life and is in every discipline."
Understanding and using tax incentives is one way to assist businesses with climate change issues, Bennett said. But when the U.S. implements a carbon-regulatory scheme, it will have both economic and technological impacts beyond legal and regulatory compliance, he said.
The European Union's use for several years of climate change regulations gives a perspective on how U.S. businesses can productively incorporate such issues into commercial transactions.
For instance, assigning a price to a ton of emitted carbon dioxide impacts the value of real estate because carbon emissions caused by electricity consumption become an occupancy cost for tenant or landlord that can be built into a lease, he said. "We can address this additional risk or reward in a lease for both landlord and tenant clients," he said.
Lawyer Michael Gerrard of New York city-based Arnold & Porter L.L.P. said that municipalities are under a lot of political pressure, as sources of emission, as regulators and as buyers or sellers of credits.
He predicts that growth in climate change activity will be spurred, "if and when Congress adopts mandatory regulatory laws, which I expect to happen in 2009 and 2010 ... whether the next president is a Democrat or Republican."
Earlier this year, President Bush announced the administration's new stance on global climate change, and some segments of the public and Congress are pushing for more action.
Gov. Jennifer Granholm on Nov. 14 created a Michigan Climate Action Council to develop plans to reduce the state's energy use by 10 percent by the end of 2008 and to reduce electricity purchases by 20 percent by 2015. She also called for growth in the alternative energy industry and for the state to establish Renewable Portfolio Standards, all areas the Miller Canfield team addresses.
The Miller Canfield climate change team also will work with business, industry and government clients on sustainable development including LEED certification. LEED is the Leadership in Energy and Environmental Design green building rating system established by the Washington, D.C.-based U.S. Green Building Council to set standards for environmentally sustainable construction.
Also on the team's agenda, Bennett said, is: waste-to-energy project certification; carbon emission reduction credits; voluntary emission reductions transactions on the Chicago Climate Exchange and over-the-counter markets; public nuisance litigation alternative energy projects; and bio-refinery regulations, among other climate issues.
Team lawyers in metro Detroit, along with Bennett, are Amanda Van Dusen, Mike McGee, Ronald Hodess, Anna Maiuri, Duncan Ogilvie and Jean-Vierre Adams.
Based in Lansing are William Danhof, Harvey Messing, James Lancaster and Bree Popp Woodruff .
Trent Taylor is in Grand Rapids and Paul Durbin is in Chicago. |
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Wineries Fight State Shipping Laws
Lawyer Blog News |
2007/12/10 17:52
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Unionville Vineyards plans to expand by planting more pinot noir and adding Rhone varietals next year, but winemaker Cameron Stark knows he's fighting an uphill battle.
He recognizes New Jersey's reputation as a wine producer isn't exactly that of California or even Oregon. But vineyards here and in a dozen other states face another hurdle because of their states' stringent wine shipping laws, which wineries say are stymieing their growth and consumers say are limiting their choices.
"If laws changed, I think it would dramatically affect our business," said Stark, who came to Unionville from Napa Valley.
Many regions across the country are trying to become another Napa Valley or Sonoma, with wine industries that attract tourists.
But laws in some states still prohibit wineries from shipping directly to consumers, two years after a landmark U.S. Supreme Court ruling led many to believe that all states would allow vineyards to ship wine directly to consumers across the country.
The Supreme Court ruling overturned laws in New York and Michigan that prohibited consumers from buying wine directly from out-of-state wineries. Wineries and consumers had sued, alleging those states violated the Constitution because they allowed in-state wineries to ship directly to consumers but prevented shipments from out-of-state.
The court said either all wineries should be allowed to ship directly to consumers or none, but each state still decides whether to allow shipments.
In the states where direct shipping is still banned, it often amounts to battle between wineries that want new customers and wholesalers who want to keep the system intact where intermediaries are a required step between wineries and customers. Wineries can also keep more profit if they don't rely on a wholesaler or retail store.
Allowing direct shipping would add another benefit for less prominent regions whose wines haven't been reviewed by influential wine publications, which don't want to write about wines that aren't accessible to everyone, said Jim Trezise, president of the New York Wine & Grape Foundation.
"In order to get broad-based respect, you need national distribution," he said. "You can get respect, but it's narrowly focused with the few people who can get your wines."
The ruling and a subsequent new state law allowed New Yorkers to receive wine from California and other states.
At the same time, it also opened channels of commerce to allow consumers in other states to directly receive New York wines, Trezise said. He noted that last year, the Finger Lakes region of New York State and the North Fork of Long Island landed on the cover of Wine Spectator.
That's attention emerging regions can only dream about.
Curtis Wallin, owner of Holly Ridge Winery in Livingston, Tenn., said the Internet has spurred interest from potential customers around the country, and he would like to be able to ship to whoever wants to buy his 35 varieties of wine. He said legislators in Tennessee aren't pushing for changing the shipping laws.
"We'd see between 30 and 40 percent increase of sales," said Wallin, who produces about 1,500 cases annually. "We're just a small winery and that's why shipping would mean a lot to us."
Bill Nelson, president of WineAmerica, the national trade association of American wineries, said bills died in Arkansas and Oklahoma this year, but there is legislative interest in a few states for next year.
One of those is New Jersey. About 3.3 percent of the nation's table wine — or 11.5 million cases, according the 2006 Adams Wine Handbook — was consumed last year in the Garden State, making it the most populous state with restrictive shipping laws, Nelson said.
Wineries in New Jersey cannot ship wine, and consumers cannot receive direct shipments from any state, including New Jersey.
With nearly three dozen wineries and more opening next year, New Jersey is looking to promote wine as an economic development strategy, said state Agriculture Secretary Charles Kuperus.
State Senator Ray Lesniak and Assemblyman John Burzichelli, who chair economic development committees, say they support changes to the shipping laws.
"I think a free flow of goods and services is good for the economy and good for the consumer," said Lesniak, who favors wines from Bordeaux and Burgundy. "The more we restrict trade, the less quality of services you get and the higher the price to the consumer and it damages the economy."
Burzichelli said he doesn't agree with the argument that shipping wine is a public safety concern because of arguments that underage drinkers would buy wine on the Internet.
"I grew up in households where there were barrels of homemade wines in the basement," he said.
They're likely to find opposition from New Jersey wholesalers. Lobbyist Jeffrey Warsh said wholesalers' concerns are public safety and taxation, and not losing their cut of profits.
"I'm surprised that the public safety concerns are so minimized in favor of commercial interests," he said.
He said wholesalers wouldn't be affected by the "small, obscure vineyards producing small batches of product."
But those are the exactly types of wines that Matt Wagner would like to have shipped to him from California: Kosta Browne and Merry Edwards Wines in Sonoma or Robert Hall Winery in Paso Robles.
"Basically, I can't get the wine I want," said Wagner, 29, of North Plainfield, N.J.
He enjoys boutique wines with small production that aren't sold in local stores. He also wants to buy directly from vineyards he and his wife have visited on vacations.
"There are ways around it," he said. "If you have relatives who live in Illinois, you can say, 'Hey, hold on to it until I see you next year.'"
Unlike New Jersey, Illinois allows direct shipping from wineries to consumers.
A 2003 federal lawsuit working its way through the court system in New Jersey also says consumers cannot get the wine they want because of shipping laws.
New shipping laws would help wineries as they try to grow, said Tom Sharko, owner of Alba Vineyard in Finesville, N.J., which produces about 13,000 cases per year with 60 percent of sales at the winery. He is planting more chardonnay, Riesling and pinot noir on his 93 1/2 acres, adding to foch, chambourcin and cayuga grapes.
He'd like to start a wine club and ship a few bottles per month to customers on a mailing list.
"There are wine clubs in California that sell their whole production that way," he said. "Instead of relying totally on a New Jersey base for customers, we would have a United States base of customers." |
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