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Banks lose battle to delay cap on invisible fee
Business Law Info | 2011/06/09 16:04
Merchants trumped bankers in a battle for billions Wednesday as the Senate voted to let the Federal Reserve slash fees that stores pay financial institutions when customers pay with debit cards.

Whether consumers will see any of that money remains to be seen.

The Fed will now issue its final rules on debit fees, called interchange fees, on July 21. It has recommended cutting the average 44 cents that banks and credit unions charge for each debit card transaction to no more than 12 cents, although the final plan could change slightly.

The fee is now typically 1 to 2 percent of each purchase. It produces $16 billion in annual revenue for banks, credit unions and the credit card companies that operate the huge payment networks, the Fed estimates.

Merchants say lower fees should let them lower prices. Banks warn that they'll have to recoup the lost revenue through other charges that likely will come directly from consumers' pockets, such as higher checking account fees.


Court says university, company co-owners of patent
Business Law Info | 2011/06/06 13:40

Ownership of a patent for technology to detect HIV levels in patients' blood was correctly split between Stanford University and the pharmaceutical giant Roche, the Supreme Court ruled Monday.

By a 7-2 vote, the high court upheld a lower court's decision making the company and the university co-owners of a patent for technology in HIV test kits.

Stanford asserted it owned the technology because its discoverer worked there. The 1980 Bayh-Dole Act allows universities to retain rights to research funded by federal grants.

But Stanford researcher Mark Holodniy also signed a contract that gave Roche the patent to anything that resulted from their collaboration. The U.S. Circuit Court of Appeals for the Federal Circuit made Roche and Stanford co-owners, and the high court agreed.

"Nowhere in the Act are inventors expressly deprived of their interest in federally funded inventions," said Chief Justice John Roberts, who wrote the majority opinion.

Justices Stephen Breyer and Ruth Bader Ginsberg dissented.

"I cannot so easily accept the majority's conclusion — that the individual inventor can lawfully assign an invention (produced by public funds) to a third party, thereby taking that invention out from under the Bayh-Dole Act's restrictions, conditions and allocation rules," Breyer said.



W.Va. court rejects bid to halt Massey Energy sale
Business Law Info | 2011/05/31 13:19

The West Virginia Supreme Court has declined to issue an order barring Massey Energy shareholders from voting on a proposed $7.1 billion sale to rival coal producer Alpha Natural Resources.

The court says in a ruling issued Tuesday it lacks jurisdiction in the case.

Three institutional investors had sought to prevent Wednesday's shareholder vote. The deal is expected to close pending approval by shareholders of the Virginia-based companies.

The investors argue that the April 5, 2010, explosion at Massey's Upper Big Branch mine that killed 29 miners and other actions damaged Massey's value.

Shareholders also sought a similar delay in a Delaware court last week. A ruling on that case is pending.



Hartford Courant wants plagiarism suit dismissed
Business Law Info | 2011/05/24 12:09

Lawyers for The Hartford Courant say in recently filed court documents that a $7.5 million plagiarism lawsuit filed by a competing newspaper should be dismissed because no copyright laws were broken.

The motion to dismiss filed on May 4 in Hartford federal court comes nearly two years after Courant CEO and Publisher Richard Graziano acknowledged that the newspaper had plagiarized competitors, but not intentionally.

The Journal Inquirer of Manchester first filed the lawsuit in state court in 2009, but withdrew it for technical reasons. The paper refiled the lawsuit in federal court in February, saying the Courant plagiarized at least 10 Journal Inquirer stories in violation of copyright laws.

The Courant says in the new court documents that there was no "substantial similarity" between the Courant and Journal Inquirer stories.



AIG, Treasury offering 300M shares worth $9B
Business Law Info | 2011/05/13 09:20
Bailed-out global insurance company American International Group Inc. and the federal government are offering to sell a total of 300 million AIG shares to the public.

The stock sale would be a big step by the government toward disentangling itself from the company. The government stepped in to rescue AIG from collapse with $182 billion in 2008 — the biggest bailout of the financial crisis.

AIG and the government didn't specify a price for the shares in a regulatory filing on Wednesday. But 300 million shares of AIG were worth about $8.89 billion at Tuesday's closing price of $29.62.


LA lawsuit claims Deutsche Bank is 'slumlord'
Business Law Info | 2011/05/05 16:13
The city attorney sued Deutsche Bank on Wednesday, claiming the giant international lender illegally evicted tenants from foreclosed properties and left dozens of homes and apartments to rot, many in low-income neighborhoods.

The suit, filed in Los Angeles County Superior Court, accuses the bank of violating federal, state and city laws and seeks potentially hundreds of millions of dollars in reimbursements to the city and to evicted tenants.

The bank's subsidiaries, Deutsche Bank National Trust Co. and Deutsche Bank Trust Company Americas, are the city's largest slumlords, according to the lawsuit.

The city attorney's office contends the bank failed to act properly as trustee to more than 160 homes and other residences with owners who couldn't meet their loan obligations during and after the 2008 international financial meltdown.

"It's time to recognize that the fraud committed on Wall Street turns into blight on Main Street," City Attorney Carmen A. Trutanich said at a news conference.

He said the bank's subsidiaries acted as trustees for trusts composed of mortgage-backed securities involving at least 2,000 properties across the country.

The complaint focuses mainly on properties in low-income areas of the city, specifically South Los Angeles and the northeastern San Fernando Valley, but Trutanich said it could be amended to include more homes if further problems are found.


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