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Judge: Lawsuit Against XM May Proceed
Court Feed News | 2007/01/20 12:59

A lawsuit in which record companies allege XM Satellite Radio Holdings Inc. is cheating them by letting consumers store songs can proceed toward trial, a judge ruled Friday after finding merit to the companies' claims.

U.S. District Judge Deborah A. Batts made the finding in a case brought by Atlantic Recording Corp., BMG Music, Capitol Records Inc. and other music distribution companies against the licensed satellite radio broadcaster.

In a lawsuit last year, the companies said XM directly infringes on their exclusive distribution rights by letting consumers record songs onto special receivers marketed as "XM + MP3" players.

XM has argued it is protected from infringement lawsuits by the Audio Home Recording Act of 1992, which permits individuals to record music off the radio for private use. The judge said she did not believe the company was protected in this instance by the act.

In a statement, XM said it remains confident that the lawsuit is without merit and it will prevail.

"At this stage of the proceeding, the court's ruling is required to be based on the false characterizations set forth in the plaintiffs' complaint. The real facts strongly support our view that the lawsuit is barred by the Audio Home Recording Act. We look forward to making our case in court," the company said.

Messages for comment left with lawyers on both sides were not immediately returned.

In refusing to toss out the lawsuit, the judge noted that the record companies consent to XM's use of their copyrighted material solely for the purposes of providing a digital satellite broadcasting service.

She said XM operates like traditional radio broadcast providers who cannot offer an interactive service, publish programming schedules prior to broadcast and play songs from an artist more often than specified within a three-hour period. But by broadcasting and storing copyrighted music for later recording by the consumer, the judge said XM is both a broadcaster and a distributor, but only paying to be a broadcaster.

"The record companies sufficiently allege that serving as a music distributor to XM + MP3 users gives XM added commercial benefit as a satellite radio broadcaster," Batts said.

Although XM argued in court papers that an XM + MP3 player is much like a traditional radio-cassette player, the judge said "it is not."

"It is manifestly apparent that the use of a radio-cassette player to record songs played over free radio does not threaten the market for copyrighted works as does the use of a recorder which stores songs from private radio broadcasts on a subscription fee basis," she said.

XM shares fell 70 cents, or 4.3 percent, to $15.75 in midday trading on the Nasdaq Stock Market.



Ex-Congressman Sentenced to 30 Months in Prison
Court Feed News | 2007/01/20 01:11

Former US Rep. Bob Ney (R-OH) was sentenced Friday to 30 months imprisonment for receiving gifts and campaign contributions in exchange for political favors. Ney pleaded guilty last October to conspiracy and making false statements in relation to his dealings with lobbyist Jack Abramoff. In response to the political corruption scandal, the Republican congressman resigned from the US House of Representatives in November.

Ney's prison sentence will include two years of probation and a $6,000 fine. If he completes a prison alcohol rehabilitation program to address his recently-acknowledged alcohol abuse problem, his sentence could be reduced by up to a year. During sentencing proceedings, Ney's defense team provided evidence that he was a "functioning alcoholic" whose decision-making ability was clouded by his dependency on alcohol. US District Judge Ellen Segal Huvelle rejected the claim, asserting that it didn't fully explain his corrupt behavior or excuse violating laws he was "sworn to enforce and uphold."



Bush´s domestic spy program under court review
Court Feed News | 2007/01/19 16:30
Attorney General Alberto Gonzales rapped federal judges Wednesday for ruling on cases that affect national security policy. Judges, he contended, are unqualified to decide terrorism issues that he said are best settled by Congress or the president.

In a sharply worded speech directed at the third, and equal, branch of the government, Gonzales outlined some of the qualities the Bush administration looks for when selecting candidates for the federal bench. He condemned what he termed activist judges with lifetime appointments who "undermine the right of the people to govern themselves."

In nominating a judge, "we want to determine whether he understands the inherent limits that make an unelected judiciary inferior to Congress or the president in making policy judgments," Gonzales said in the 20-minute speech to American Enterprise Institute, a Washington think tank. "That, for example, a judge will never be in the best position to know what is in the national security interests of our country."

Gonzales did not cite any specific activist jurists or give examples of national security cases.

Pressed later for examples, he noted that Congress approved the Military Commissions Act, which authorizes military trials for terrorism suspects, four months after the Supreme Court ruled the trials would violate U.S. and international law.

"I don't think the judiciary is equipped at all to make decisions about what's in the national security interests of our country," Gonzales said. "How would they go about doing that? They don't have embassies around the world to give them that information. They don't have intelligence agencies gathering up intelligence information. ... It was never intended that they would have that role."

Carl Tobias, a constitutional law professor at the University of Richmond in Virginia, said it is inevitable that courts would decide some of the most contentious questions involving national security.

"Some of the most difficult issues are about national security, how to balance national security and civil liberties - especially in the context of domestic surveillance and enemy combatants," Tobias said. "Those are critically important issues that the courts are being asked to resolve."

Gonzales, a former Texas Supreme Court justice, also characterized efforts to retaliate against unpopular rulings as misguided. He mentioned a failed South Dakota proposal to sue or jail judges for making unpopular court decisions.

He also urged Congress to consider increasing the number of federal judges to handle heavy workloads and to offer them higher salaries to lure and keep the best ones on the bench.



Court upholds killing of 'Wal-Mart bill'
Court Feed News | 2007/01/18 16:52

A federal appeals court on Wednesday said the State of Maryland may not require large retailers (Wal-Mart was the target) to spend 8 percent of their payrolls on health care for employees. In a 2-1 ruling, the U.S. Court of Appeals for the Fourth Circuit upheld a lower court ruling that said Maryland's law violated the Employee Retirement Income Security Act. (That federal labor law says companies may offer uniform health benefits across the country rather than deal with a variety of state requirements.)

"Hopefully this will send a message to other states," said the American Legislative Exchange Council (ALEC), a group that represents the interests of state lawmakers and advocates free-market policies. According to ALEC, five other states - Indiana, Minnesota, Missouri, Mississippi and New York -- have all filed "Fair Share" bills like the one that became law in Maryland. A Wal-Mart defense group -- Working Families for Wal-Mart -- applauded the appeals court ruling.



Lawyer Bitten by Bed Bugs Sues London Hotel
Court Feed News | 2007/01/18 00:28

A New York lawyer is suing a leading London hotel after he and his wife were attacked by bed bugs. Sidney Bluming and his wife Cynthia are seeking several million dollars in damages from the Mandarin Oriental Hotel Group in the action filed at the US District Court, Manhattan. The couple claim they suffered hundreds of bites that left their skin red, swollen and itchy during a five-day stay at the Hyde Park hotel last May.

They also say the bugs infested their luggage, which led to further problems in their apartment when they returned home. Mrs Bluming claims the trauma was made worse as she is recovering from cancer and her immune system is still weak.

Their lawyer, Michael Weinstein, said they were forced to fumigate their home and throw away clothing, bedding, luggage and personal effects. Mr Weinstein added: "People associate bed bugs with more of a lower end class of hotel. Clearly, that is not the case here. The Mandarin is as premier and luxurious as any hotel could make themselves out to be."

Jill Kluge, communications director for the Mandarin Oriental Hotel Group, said: "We can confirm a regrettable, but isolated, incident of infestation occurred in May 2006 within one guest room at our London property.

"On discovery, a full investigation was carried out and the problem fully rectified. There have been no subsequent incidents. The matter has been referred to our insurers.

"Mandarin Oriental's policy is to operate with the highest standards of conduct, with stringent hygiene systems and processes in place at all of our hotels to safeguard the health and safety of our guests."

The hotel chain is accused of fraud, negligence, recklessness, intentional infliction of emotional distress deceptive trade practice and nuisance.



Agent's lawsuit against CIA can proceed
Court Feed News | 2007/01/17 15:35

A federal judge says a fired CIA agent can continue with a lawsuit challenging his dismissal from the agency.

The one-time covert agent -- identified only as Doe -- contends he was fired for refusing to alter intelligence the Bush administration wanted to cite in making its case for going to war with Iraq.

President Bush justified the war on grounds that Iraq had weapons of mass destruction. No such weapons have been found.

The judge ruled the former agent has the right to argue that his dismissal was based on allegedly false information placed in his file.

The plaintiff claims he was the target of two sham investigations launched by the CIA prior before his firing in September 2004.



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