Finally, auction day has come for the Phoenix Coyotes. It's two days, actually.

The NHL franchise is to be sold at auction in a two-day hearing that began Thursday in U.S. Bankruptcy Court in downtown Phoenix.

Only two bids have been made.

One by Canadian billionaire James Balsillie is contingent on moving the team to Hamilton, Ontario, over the overwhelming opposition of the NHL.

The other is by the NHL, which says it will resell the team outside of the bankruptcy process, either to an owner who would keep the team in Glendale or, failing that, to someone who would relocate the franchise. Balsillie and NHL commissioner Gary Bettman were in the crowded courtroom when the hearing began.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

PHOENIX (AP) — Finally, auction day has come for the Phoenix Coyotes. It's two days, actually.

The NHL franchise is to be sold at auction in a two-day hearing that begins Thursday in U.S. Bankruptcy Court in downtown Phoenix.

Only two bids have been made. One by Canadian billionaire James Balsillie is contingent on moving the team to Hamilton, Ontario, over the overwhelming opposition by the NHL.

The other is by the NHL, which says it will resell the team outside of the bankruptcy process, either to an owner who would keep the team in Glendale or, failing that, to someone who would relocate the franchise.

The U.S. Appeals Court for the Federal Circuit says Microsoft Corp. can keep selling its Word desktop software as it appeals an unfavorable patent ruling.

In May, a Texas district court said some versions of Microsoft's word processing software infringe on a Canadian technology company's patent. The dispute is over the way Word 2003 and Word 2007 let users customize document encoding.

The Texas judge had ordered Microsoft to pay Toronto-based i4i LLP $290 million and stop selling infringing versions of Word by the middle of October.

Redmond-based Microsoft has appealed the ruling and is set to present arguments on Sept. 23.

The Schwarzenegger administration on Tuesday asked the federal courts to delay an order requiring California to reduce its inmate population over the next two years.

Last month, a special three-judge panel gave California 45 days to decide how it will cut the number of inmates in its 33 adult prisons by more than 40,000, bringing the population to about 110,000. They found that reducing the number of inmates in California's 33 adult prisons was the only way to improve medical and mental health care, which the courts previously ruled was so poor it violated inmates' civil rights.

The administration maintains that the courts cannot order the state to release prisoners and plans to file an appeal with the U.S. Supreme Court on Thursday.

Meanwhile, the administration wants the three-judge panel to stay its decision ordering the prisoner release. That motion was filed Tuesday with federal courts in Sacramento and San Francisco.

If the three California-based federal judges will not delay their order, Schwarzenegger spokesman Aaron McLear said the administration will seek a stay from the nation's high court.

Supreme Court Justice John Paul Stevens has hired fewer law clerks than usual, generating speculation that the leader of the court's liberals will retire next year.

If Stevens does step down, he would give President Barack Obama his second high court opening in two years. Obama chose Justice Sonia Sotomayor for the court when Justice David Souter announced his retirement in May.

Souter's failure to hire clerks was the first signal that he was contemplating leaving the court.

Stevens, 89, joined the court in 1975 and is the second-oldest justice in the court's history, after Oliver Wendell Holmes. He is the seventh-longest-serving justice, with more than 33 years and eight months on the court.

In response to a question from The Associated Press, Stevens confirmed through a court spokeswoman Tuesday that he has hired only one clerk for the term that begins in October 2010. He is among several justices who typically have hired all four clerks for the following year by now. Information about this advance hiring is not released by the court but is regularly published by some legal blogs.

Stevens did not say whether he plans to hire his full allotment of clerks or whether he will leave the court at the conclusion of the term that begins next month. Retired justices are allowed to hire one clerk.

Pfizer Inc. will pay $2.3 billion to settle a U.S. investigation into illegal marketing of medicines, the largest agreement in such a case, and a subsidiary will plead guilty to a criminal charge.

The amount, which Pfizer disclosed in January, includes $1.3 billion to close the criminal part of the investigation, the New York-based company said today in a statement. Pharmacia & Upjohn Co., acquired by Pfizer in 2003, will plead guilty to a count of felony misbranding of a pharmaceutical, according to a Justice Department summary of the agreement.

The criminal case stems from promotion of Bextra, a painkiller that Pfizer, the world’s largest drugmaker, acquired through Upjohn and withdrew in 2005 because of its connection with a rare skin condition. Investigators also looked at practices, including kickbacks to doctors in the sale of nine other drugs, among them the impotence drug Viagra and cholesterol treatment Lipitor, the company and government officials said.

A U.S. military contractor accused in a scheme to illegally ship nearly $300 million in Chinese-made ammunition to Afghan soldiers has agreed to a plea deal that could send him to prison for up to five years.

Under the deal, prosecutors will drop 84 counts of wrongdoing in exchange for 23-year-old Efraim Diveroli pleading guilty to a conspiracy charge. He could also be fined up to $250,000.

Diveroli was president and owner of AEY Inc., the Miami Beach firm awarded a $298 million U.S. Army contract in 2007 to provide the ammunition to Afghanistan. The contract forbade exporting Chinese ammunition, but prosecutors say the company did it anyway and claimed the rounds were from Albania.

AEY bought much of the ammunition from Albania's Military Export and Import Co., which had purchased huge amounts of Chinese ammunition from 1958 to 1974. Authorities say AEY then repackaged it to remove all traces of the Chinese manufacturer and provided the Army with written certification that the ammunition had come from Albania.

Congressional investigators also found in 2008 that AEY provided potentially unsafe helmets to troops in Iraq, failed to deliver 10,000 pistols to Iraq, and shipped inferior ammunition to U.S. Army special forces. The Pentagon and State Department have terminated or withdrawn numerous contracts with AEY over failure to perform, according to the House Oversight and Government Reform Committee.