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Economist: IP Rights Too Strong  

Economist writes:
Copyright was originally intended to encourage publication by granting publishers a temporary monopoly on works so they could earn a return on their investment. But the internet and new digital technologies have made the publication and distribution of works much easier and cheaper. Publishers should therefore need fewer, not more, property rights to protect their investment. Technology has tipped the balance in favour of the public domain.

A first, useful step would be a drastic reduction of copyright back to its original terms—14 years, renewable once. . . .

What Is Wrong with EU Antitrust Policy?  

George Pieler at CNet News tells us:
The road to a blissful united Europe may be strewn with constitutional pitfalls, but the members of the European Commission are unwavering in their collective commitment to out-regulating the United States and Asia.

EC President Jose Manuel Barroso announced that "we at the Commission are thinking of an idea that I find very interesting, and that is the funds from fines imposed on companies that break competition rules could go to development aid." . . .

[T]he writing is on the wall: Microsoft (and other multinational companies, especially American ones) is a reliable cash cow for Europe, and what better way to cement Microsoft into Europe's budget process than to link Microsoft's fines to a nebulous anti-poverty crusade?

Grokster: The Day Entrepreneurship Died  

says Jason Calacanis:
People have been debating the fallout from the Grokster case in terms of Hollywood and the music industry, but what is at stake is much, much bigger.

Yeah, I know it sounds crazy, but what is the point of building a technology business in the United States if you’re going to get sued for the *potential* illegal use of your product? Why would an entrepreneur or their investors take this risk?
Check out the rest.

Hat tip: Bag and Baggage.

Update: Lawrence Lessig predicts Ten Years of Chilled Innovation while we wait for litigation to clarify the new standard.

US Dominates in Nanotechnology Spending and Patents  

Information Week reports:
The United States last year outspent all other governments on nanotechnology research and development, accounting for $1.6 billion of the $4.6 billion spent worldwide, according to Lux, a New York-based research and advisory firm focused on nanotechnology. On the corporate level, U.S. companies accounted for almost half of the $3.8 billion spent by corporations globally.

The U.S. Patent and Trademark Office has assigned U.S. entities 56 percent of the total number of patents issued for nanotechnology.
The article goes on to outline some risks for losing that dominance.

Prior posts:
    June 9, 2005 - Nanotechnology and the Law of Patents: A Collision Course, by Siva Vaidhyanathan.
    May 5, 2005 - Washington Nanotechnology Initiative.
    May 2, 2005 - Nanotechnology for the Intelligence Community.

Grokster Bloggers Like Lab Monkeys on Meths  

writes the Register:
Yesterday the Supreme Court made a narrow judgement on copyright liability. . . . But the professional pundits and their pyjama-clad reflections in the "blogosphere" had been anxiously waiting for the Supremes' verdict for a week, with their explosive editorials primed and ready. And off they went, like lab monkeys on meths sniffing fresh air for the first time.

The result is today's deluge of incorrect, poorly informed and self-serving babble.
There, your Grokster simile of the day.

In Defense of Scientists and Engineers  

Responding to recent concerns about America's ability to recruit and educate math and science types in order remain competitive with countries like India and China, Ted Rall attempts to explain the engineering shortage:
What's lamentable about this latest why-do-our-kids-suck-at-math hand-wringing is that too many Americans are coming away from the conversation with the message that we're losing an intellectual arms race because our young men and women are lazy, stupid or both. . . . But as I can personally attest, there's a good reason that fewer young Americans are pursuing careers in the sciences: the jobs suck. . . .

High school and college students considering their futures know that work as a scientist is morally nasty, brutally alienating and financially insecure. That's why nearly a million engineering-related job openings remain vacant in the United States. If the young men and women of Pakistan and Bangladesh want the work, let them have it.
Wow, even just from this brief excerpt, the bitterness is evident.

Much of Rall's bitterness appears to come from a failed attempt at obtaining an applied physics degree before getting thrown out of Columbia, which he blames on his engineering classes being "too boring to keep [his] interest and too hard besides." Rall did return to Columbia as a history major, a more moral and financially secure option in his view I guess, and apparently even more rigorous than an MIT engineering degree.

Most of Rall's contempt is focused on weapons scientists, whom he assures us are all going to hell. While Rall does not get everything wrong, such as the fact that engineers on the whole do not necessarily represent the social butterflies of our society (and most engineers are fine with that fact), the article does represent an unfortunately narrow-minded perspective. First, had America left that geeky engineering stuff to others over the last two centuries, for a number of possible reasons, Rall would likely not have the pleasure of calling himself "America's hardest-hitting editorial cartoonist".

Second, and more to the point, science and engineering represents a tremendously diverse field. The technologies are diverse (electronics, nanotechnology, transporation, biotechnology, aerospace), as are the types of jobs (medical professionals, researchers, soldiers, product designers, marketing and sales persons). And while we all appreciate the work of our editorial cartoonists in this country, scientists and engineers are doing important work too, like developing life-saving techonologies in the health industry, communication technologies like the Internet that improve the flow of information, more eco-friendly technologies in the energy industry, and yes to Rall's disdain, even military technologies that protect the freedoms we enjoy.

My electrical engineering (EE) degree has given me the opportunity to live and travel all across the country and help develop technologies that touch our everyday lives, from computers to cell phones to digital cameras to automobiles. And now, as a law student, my EE degree gives me the opportunity to investigate the interesting dynamic between law, technology, and innovation, including the ability to practice patent law, an area of law open primarily to science and engineering graduates.

So, while some may "personally attest" that science and engineering jobs suck without ever having had one, I can personally attest that science and engineering jobs encompass some of the most challenging, exciting, and rewarding jobs in America. And not only that, for those willing to learn math and science, there are plenty of them.

More: Gary Cornell at Ablog says, Rall's rant is "the single stupidest thing I have read in ages."

Though, Preston L. Bannister says, Rall's rant is "not far wide of the mark."

AMD Brings Antitrust Suit Against Intel  

EE Times reports:
AMD Inc. has filed an antitrust suit against Intel Corp. alleging that its archrival has been operating an unlawful monopoly in the x86 microprocessor market and has coerced computer makers, distributors, small system builders and retailers in their dealings with AMD.

The 48-page complaint, filed Tuesday (June 28) in the U.S. District Court in Delaware, identifies 38 companies that AMD alleges have been victims of coercion by Intel.
More: AMD's Complaint [pdf].

More: AMD press release (outlining what AMD claims Intel has done to unlawfully maintain its monopoly).

More: Charles P. Diamond, partner at O’Melveny & Myers, LLP and AMD’s lead outside counsel.

Update (June 29, 2005): Techdirt opines that consumers do not really care about the lawsuit.

China Says Europe Should Be the Top Target of Anti-Piracy Efforts, Not China  

reports The Standard (China).

Prior posts:
    June 23, 2005 - IFPI Commercial Piracy Report 2005.
    June 22, 2005 - China Won't Protect IP Until It Gets Its Own IT.
    June 6, 2005 - China Blames Foreign Companies for the Counterfeiting in Its Country.

Grokster Commentary Roundup - Part 2  

Continuing from the last post with more Grokster commentary:

The tech industry is worried:
"It's fair to say that with the decision the legal clarity has decreased and the risk of litigation has increased," said Michael Petricone, technology policy vice president at the Consumer Electronics Association trade group. "From a competitive standpoint, that is just not a good thing."
BusinessWeek describes the decision as a 24-page opinion heavy on common sense and lacking in apocalyptic pronouncements:
Peer-to-peer (P2P) technology doesn't steal music, people do. But woe to companies that exist to encourage that theft.
PC Magazine writes that MGM triumphed over Grokster, but not P2P:
The court's decision seems to severely curtail what file-sharing services and software will be allowed to do in the future, but such a reading of the decision is misleading, said Lawrence Solum, John E. Cribbet Professor of Law at the University of Illinois College of Law.

"This is an unwelcome verdict for the industry, and a positive ruling for P2P," he said. "It might be viewed as a tactical loss in the short run for Grokster, but it's definitely a strategic victory for P2P in the long run."
The decision leaves Congress reluctant to step into the file-sharing debate.

The Mercury News writes:
Ruling unanimously that illegal behavior, not technology, deserves to be penalized, the court struck a delicate and just balance that helps protect copyrights without jeopardizing technological progress.
The BBC calls it a shock decision, but I found the decision somewhat unshocking. A shock decision would have been overuling Sony, or expanding it to cover Grokster's behavior, both of which the Court declined to do.

The GlobeandMail writes that U.S. court shuts door on Internet file-sharing. Though, it seems the Court shut the door on Grokster's encouraging behavior, not Internet file-sharing.

Fortune writes that The File Sharing Fight's Not Over:
Although the opinion, written by Justice David Souter, represents a clear victory for the entertainment industry, the ruling is narrow and does not necessarily spell doom for other providers of peer-to-peer file-sharing software. . . .

[T]he decision did not directly address the legitimacy of P2P networks on the whole. The issue here was the defendants' intent rather than the nature of the software.
Bill Heinze highlights the opposing concurring opinions.

Aaron Perzanowski writes It's Not Active Inducement, Stupid:
Despite the Court's misleading pronouncements and the flurry of hurried blog punditry, Grokster does not provide for an active inducement test. Instead, the court announced an intent-based test, one that holds developers liable not only for specific actions that encourage end users to infringe copyrights, but also for the "object" of their endeavor.
The Wall Street Journal hosts a Grokster Roundtable, and Ernest Miller comments further on an issue he raised at the roundtable. The Roundtable included a great line-up: James M. Burger, Michael Geist, Denise Howell, Ernest Miller, John Palfrey, and Christopher Ruhland.

EFF discusses Clarifying Inducement: What's the Remedy?.

Furdlog has another Grokster Roundup.

Referring to an old e-mail from a StreamCast executive apparently expressing a desire to get sued, Seth Finkelstein comments that you should be careful what you wish for.

In an interesting post at MobBlog, Tim Wu writes:
The important question is this: how does the Grokster decision affect the future of content distribution? In my view the decision will actually settle matters more than people think.
Check out the rest of Tim's post, and of course, check out all of the posts at Picker MobBlog, which continues its coverage.

Would you rather listen than read? Listen to the discussion on Grokster between Ernest Miller, Denise Howell and Charles Petit at IT Conversations, with a special look at the implications for BitTorrent.

Prior posts:
    June 27, 2005 - Grokster Commentary Roundup.
    June 27, 2005 - Summary of Grokster Supreme Court Opinion.
    June 27, 2005 - Grokster Loses!.

Grokster Commentary Roundup  

My last post covered some of my thoughts, here's what others have to say:

The two essential places to start with an abundance of informative commentary are Picker MobBlog and SCOTUSblog Grokster Discussion.

Congress is pleased.

EFF gives a post-Grokster analysis of its Grokster Reader's Guide.

EFF also asks What is Inducement?.

William Patry interestingly writes that The Court Punts:
I don't know about others, but I view the Court as having punted: they decided mainly an issue that wasn't in front of them (inducement) and didn't decide the one that was, the effect of Sony in the Internet era.
The Register also says the Court punted.

Groklaw writes:
I'd say Sony survives for now. On page 22 the court, however, says they will "leave further consideration of the Sony rule for a day when that may be required." That sounds ominous, and I think we have EFF to thank that it wasn't worse this time.
Ed Felten raises a similar concern that I raised in my last post:
As a technologist I find the most interesting, and scariest, part of the Grokster opinion to be the discussion of product design decisions. . . .

[I]t seems that product design decisions are not to be questioned, unless there is some other evidence of bad intent to open the door.
Susan Crawford agrees that Ed Felten is right to focus on Footnote 12.

Ernest Miller has Some Notes on Grokster, which are too long to quote here but considered essential reading.

Robert Scoble gives his thoughts:
I guess in my mind it's a real body blow to the podcast/videoblog industries that are just starting to be built. As a developer of one of those kinds of apps I'd be looking at this case and probably would be spending a lot of time with lawyers thinking about how to design such software to be defendable in the future.
IP Blawg notes:
Though the Court was unanimous in its disposition of the case, Justice Ginsburg (joined by Rehnquist and Kennedy) and Justice Breyer (joined by Stevens and O'Connor) wrote separately to weigh in with sharply dueling views of how the Sony precedent should be interpreted and modified -- leaving us with no clear majority viewpoint on where the Supreme Court might go next.
The TTABlog declines to comment.

And of course there's Slashdot and Techdirt (also discussing Brand X).

LawMeme compares the Grokster decision to Kelo.

Patently-O makes a rare move into copyright, with Cory Hojka ably summing up the Grokster decision.

Eric Goldman has a great round up of Grokster commentary too!

And let's not forget our MSM friends...

eWeek writes:
The Supreme Court's decision Monday that Grokster and other file-swapping services can be held liable for illegal downloading doesn't overturn the "fair use" doctrine established in the early 1980s when consumers started buying videocassette recorders to copy television shows and movies, according to a Washington-based copyright attorney.
Financial Times writes:
The Motion Picture Association of America hailed the court's ruling as a "historic victory for intellectual property in the digital age".

However, several legal experts and some of Silicon Valley's top companies said the ruling was not as onerous as technology companies had feared.
Tom's Hardware Guide tells us what Grokster really means:
As this morning's 55-page US Supreme Court decision in MGM v. Grokster has now had time to be fully disseminated and analyzed, consensus is taking shape that even peer-to-peer services not named in the lawsuit may find themselves in legal hot water very soon. By vacating a Ninth Circuit Court of Appeals ruling and remanding the case back to that circuit, legal analysts told Tom's Hardware Guide, the high court may have made fuzzy what was once a clear interpretation of fair use law: specifically, the matter of secondary copyright infringement liability.
And finally Reuters reports that Sony BMG is already eyeing a legal version of Grokster.

Prior posts:
    First Thoughts on Grokster.
    Summary of Grokster Supreme Court Decision.

Update (June 28, 2005): Grokster Commentary Roundup - Part 2.

First Thoughts on Grokster  

The Grokster decision has generated much commentary, though not as much as it could have. For the most part, the Court took the middle road that I somewhat predicted, thus avoiding the extremes of overturning Sony or expanding Sony to cover Grokster's inducement encouraging behavior.

The Court effectively told technology companies that they are free to develop products that are capable of legitimate uses, but they are not then free to encourage people to use those products in an infringing manner. That's not asking too much is it?

Three questions/concerns are apparent after a first read:

First, the Court's reliance in part on the lack of filtering raises a concern because it moves into the realm of technology product design. Creating liability due to lack of copyright protections in a product design, even where the design has substantial noninfringing uses, causes the threat of litigation that Sony was meant to avoid. Fortunately, the Court made clear in Footnote 12 that mere failure to take steps to prevent infringement absent any other evidence of intent would not lead to liability.

Second, how does an "active inducer" rehabilitate itself? In other words, how does a company avoid future damages, where the company encourages infringement but then decides to, and does in fact, stop all inducing activies? It seems that Grokster could come completely "clean," i.e., stop all encouragement, but still be held liable for future infringement based on past encouragement. This therefore puts a technology company in a quandary, possibly forcing it to shut down or risk potential future damages for past conduct.

Third, what is the remedy? If a file-sharing software provider actively induces infringement, does the court enjoin all future distribution of the software, or does the court award damages, enjoin future inducing activities, and allow the distribution to continue? This ties in with the last question regarding how to rehabilitate an active inducer without simply imposing a permanent injunction.

It will be interesting to see how this all plays out.

Prior post: Summary of Grokster Supreme Court Decision.

Update: Grokster Commentary Roundup.

Summary of Grokster Supreme Court Opinion  

Opinion of the Court (delivered by Justice Souter).

The Supreme Court began by pronouncing that the subject of this case is the tension between two values: creative innovation and technological innovation.

A. Ninth Circuit Misapplied Sony

The Court established that the Ninth Circuit misapplied Sony because, in Sony, (1) there was no evidence of an intent to promote infringing uses, and (2) the primary use, time-shifting, was not infringing. Thus, nothing in Sony precludes courts from considering evidence of intent to promote infringing uses, if such intent exists.

B. Establishing the Active Inducement Test

The Court held that "one who distributes a device with the object of promoting its use to infringe copyright, as shown by clear expression or other affirmative steps taken to foster infringement, is liable for the resulting acts of infringement by third parties."

Thus, evidence of steps taken to encourage direct infringement, "such as advertising an infringing use or instructing how to engage in an infringing use, shows an affirmative intent that the product be used to infringe, and a showing that infringment was encouraged overcomes the law's reluctance to find liability when a defendant merely sells a commercial product suitable for some lawful use."

A finding of infringement under this standard therefore requires (1) distribution of a device, (2) the intent to foster infringement, and (3) resulting in direct infringement.

Because there was "evidence of infringement on a giant scale" by users of Grokster's and StreamCast's software, the Court focused its opinion on what is required to show intent.

C. Intent to Foster Infringement

The Court observed that the primary method of proving intent to foster infringement is proving that the defendant "communicated an inducing message." Grokster and StreamCast clearly commmunicated such a message, according to the Court, through advertising, promotional materials, and affirmatively helping users locate and play copyrighted materials.

There was also other evidence of an intent to foster infringement. First, Grokster and StreamCast targeted their products towards "a known source of demand for copyright infringement," i.e., former Napster users. Second, neither company took steps to prevent or diminish the infringing activity, such as developing filtering tools. And third, the companies' business model, revenue through advertising, depended on a high-volume infringing use.

D. Conclusion

The Court vacated the judgment of the Ninth Circuit and remanded the case, concluding that if liability is ultimately found, "it will not be on the basis of presuming or imputing fault, but from inferring a patently illegal objective from statements and actions showing what that objective was."


Justice Ginsburg Concurrence (joined by Chief Justice and Justice Kennedy).

Justice Ginsburg's concurrence disputes the lower courts' decision to grant summary judgment in favor of Grokster and StreamCast on the factual issue of whether Grokster's and StreamCast's products had substantial noninfringing uses. Justice Ginsburg argued that "there has been no finding of any fair use and little beyond anecdotal evidence of noninfringing uses," which distinguishes this case from Sony. The Justice determined that the lower courts' reliance on the declarations of Grokster and StreamCast was not sufficient to support summary judgment in the face of MGM's evidence of overwhelming infringing use.

Further, Justice Ginsburg determined that lower courts did not properly distinguish between "the uses of Grokster's and StreamCast's software products (which this case is about) and uses of peer-to-peer technology generally (which this case is not about)."


Justice Breyer Concurrence (joined by Justices Stevens and O'Connor).

Coming soon...

Grokster Loses!  

Reports the SCOTUSblog:
The Supreme Court ruled unanimously that developers of software violate federal copyright law when they provide computer users with the means to share music and movie files downloaded from the internet.
More to come...

Discussions going on at Picker MobBlog and SCOTUSblog.

Update: Washington Post writes:
The unanimous decision sends the case back to lower court, which had ruled in favor of file-sharing services Grokster Ltd. and StreamCast Networks Inc. on the grounds that the companies couldn't be sued. The justices said there was enough evidence of unlawful intent for the case to go to trial. . . .

"We hold that one who distributes a device with the object of promoting its use to infringe copyright, as shown by the clear expression or other affirmative steps taken to foster infringement, is liable for the resulting acts of infringement by third parties," Justice David H. Souter wrote for the court.
Update: Bloomberg writes:
The high court essentially opened a new legal avenue for companies pressing copyright suits. The court said that even a product or service with a legitimate use can be the basis of a suit if the defendant encouraged copyright violations.

"Each company showed itself to be aiming to satisfy a known source of demand for copyright infringement," Justice David H. Souter wrote for the court. Souter said "substantial evidence" supported the industry's case.
Update: Justice Souter Opinion [pdf].

Justice Ginsburg Concurrence [pdf] (joined by Chief Justice Rehnquist and Justice Kennedy).

Justice Breyer Concurrence [pdf] (joined by Justices Stevens and O'Conner).

GAO Report on Patent Office  

The GAO has recently issued a report titled USPTO Has Made Progress in Hiring Examiners, but Challenges to Retention Remain [pdf].

The report evaluates the USPTO's progress towards its 21st Century Strategic Plan.

Hat tip: Patently-O.

Update: More at Promote the Progress (highlighting some harsh criticism in the report).

Update (June 29, 2005): Whoops, I mixed up reports here. Promote the Progress is discussing the Patent Automation Stategy [pdf] report (GAO-05-336), a different GAO report than the one above. Thanks for the correction Matt.

Update (July 1, 2005): More at Just a Patent Examiner.

Compulsory Licensing Reform  

I have not yet blogged on Marybeth Peters' proposal to revoke the statutory compulsory license, but much has been said in the blogging world.

Fortunately, Andrew Raff rounds it up for us in one great post.

Pre-Grokster Readings  

With Grokster soon to come, the pundits are out in full force. Here's a round-up of some pre-Grokster opinion writings for your reading pleasure.

List of Blogs Covering Grokster (from Kevin Heller, hat tip Donna Wentworth)

Experts Handicap Grokster (at Red Herring).

Grokster's Reader Guide (from EFF).

Pre-Grokster Reading and More Pre-Grokster Reading (from Ernest Miller).

Update: They are busy over at the SCOTUSblog getting ready for the opinions coming down the pipe this morning. Head to the SCOTUSblog homepage and keep refreshing.

Community Broadband Act of 2005 Introduced by Lautenberg, McCain  

Wi-fi Planet reports:
Municipal Wi-Fi supporters gained a powerful ally today as Sen. John McCain (R-Ariz.) introduced legislation promoting local governments' rights to launch wireless networks in direct competition to incumbent carriers.

The Community Broadband Act of 2005 (S. 1294) adds provisions to the Telecommunications Act of 1996 to allow a municipality to offer high-Internet access to its citizens.
Press release:
"Government should work to open doors to greater technology for the American people, not slam them shut," said Lautenberg. "There is no valid justification for blocking local communities from offering broadband to its residents. If a town or a city wants to offer broadband as a tool for education and economic development, why should a state stop them?"
For some commentary...

Engadget writes:
We’re not about to turn into Daily Kos or anything here, but we really do have to give a big shout out to Senators Frank Lautenberg (D-NJ) and John McCain (R-AZ), the latter being one of the few members of the majority party (and increasingly, either party) willing to take on big business.
Wireless Weblog writes:
[Sen. McCain] went on to say that in some situations, mainly in rural areas, the local government is the only resource for citizens to get broadband access to the Web. However, he did point out that the bill would provide an incentive for the big telcos to expand their services into underserved areas.
Telephony Online writes:
The McCain-Lautenberg bill is expected to face opposition from Bell company lobbyists but has the backing of a number of pro-municipal broadband and high-tech groups including the High-Tech Broadband Coalition, the National League of Cities, the Rural Broadband Coalition and the American Public Power Association.
Techdirt says it looks like some politicians are actually being reasonable.

David Stephenson says Go John! (referring of course to John McCain).

More: Community Broadband Act of 2005.

India Demands More H-1B Visas  

Economic Times reports (India):
A move that has significance for Indian professionals seeking to work in the US, the government has made a formal proposal to the WTO demanding that the yearly quota of H1B visas be increased to 195,000 from the current ceiling of 65,000. . . .

In the ongoing WTO talks, India has made enhancement of the H1B quota as a key bargaining chip for offering concessions on market access for industrial products and farm goods, highly-placed government officials said.
More: CNet News Employment Blog.

Prior posts:

    May 6, 2005: Are H-1B Visas Patriotic or Treasonous?.
    May 5, 2005: H-1B Visa Guidelines Announced.
    May 2, 2005: Cohen: Bill Gates Full of It on H-1B Visas.
    Apr. 27, 2005: Gates: Get Rid of the H-1B Visa Caps.
    Mar. 7, 2005: Tech Talent: US Losing?.

Enterasys Brings Patent Suit Against Extreme Networks and Foundry Networks  

On Wednesday, Enterasys announced:
Enterasys Networks, Inc. . . . announced that it filed a patent infringement complaint today against Extreme Networks, Inc. and Foundry Networks, Inc. in the United States District Court for the District of Massachusetts. The complaint alleges that both Extreme and Foundry have been and are infringing six Enterasys patents by making and selling networking products that utilize patented Enterasys technology. The patents at issue in the case relate to virtual local area networking, multiprotocol routing, and several other networking technologies. . . .

Enterasys is being represented in the case by Robins, Kaplan Miller & Ciresi LLP.
More: Robins, Kaplan Miller & Ciresi.

Trading Technologies, Advantage Futures Settle Patent Suit Over Futures Trading Technology  

Chicago Business reports:
Trading Technologies International Inc. (TT) scored a victory Thursday in its continuing legal battles, as Chicago-based broker Advantage Futures LLC agreed to acknowledge TT’s patents on a widely used futures trading system. . . .

The Advantage agreement is notable because . . . Advantage is No. 1 in electronic volume at the Chicago Board of Trade, and trades more interest-rate contracts at the Chicago Mercantile Exchange than any other firm.
More: Joint press release.

Prior posts:

    May 20, 2005: Trading Technologies Brings Patent Suit Against Patsystems, Parties Settle
    Apr. 19, 2005: Software Company Files Patent Suit Against Funds Firm

FYI: Fleeing the Country May Cost You Your Patent License  

Washington Post reports:
The U.S. Patent and Trademark Office yesterday barred former Silver Spring lawyer Sol Sheinbein from doing business with the agency -- nearly eight years after he helped a teenage son suspected of murder flee the country and 2 1/2 years after he was disbarred.

Montgomery County police still have an arrest warrant for Sheinbein, 61, for helping his son Samuel, then 17, flee to Israel in 1997.

IFPI Commercial Piracy Report 2005  

International Federation of Phonographic Industries (IFPI) announces:
One in three music discs sold worldwide is an illegal copy, creating a US$4.6 billion music pirate market that destroys jobs, kills investment and funds organized crime.

Despite the huge scale of the problem, some governments have taken encouraging steps to address music piracy in the last 18 months, according to the recording industry Commercial Piracy Report 2005, which is published by IFPI today. . . .

Spain is one of ten top priority countries named by the IFPI report, where piracy levels are at unacceptable levels and where additional government action is urgently needed. They are: Brazil, China, India, Indonesia, Mexico, Pakistan, Paraguay, Russia, Spain and Ukraine.
More: Commercial Piracy Report 2005 [pdf].

Update: More at hypebot.

Report: Peer-to-Peer File-Sharing Technology: Consumer Protection and Competition Issues  

The Federal Trade Commission announces:
Peer-to-peer (P2P) file-sharing technology offers significant benefits but also poses risks to consumers who use it, according to a Federal Trade Commission staff report issued today. The staff report, "Peer-to-Peer File-Sharing Technology: Consumer Protection and Competition Issues," analyzes the consumer protection, competition, and intellectual property issues that were discussed at the FTC's December 2004 workshop on P2P file sharing. The report recommends that industry and government take steps so that consumers receive the many benefits from this technology while avoiding the risks that it creates.
More: Peer-to-Peer File-Sharing Technology: Consumer Protection and Competition Issues [pdf].

Because of the impending Grokster decision, the report decided against making specific recommendations on IP issues raised by P2P file sharing.

Update: More at Constitutional Code and The Importance of....

Update: More at EFF, which writes:
Significantly, the report also found, as EFF argued in its comments [pdf], that the impact of filesharing on the music industry is unclear.

Microsoft Strengthens IP Protections for Partners  

Microsoft announces:
Microsoft Corp. today announced several steps to strengthen the intellectual property (IP) protection it provides to PC manufacturers, including its larger original equipment manufacturer (OEM) and smaller OEM System Builder partners, OEM distributors, and independent software vendor (ISV) Royalty partners. Collectively, these partners account for more than $18 billion of Microsoft’s annual software revenue. The IP protection provided by Microsoft, commonly referred to as indemnification, helps shield partner companies from exposure to legal costs and damage claims related to patent or other intellectual property disputes.

No Grokster Decision Until Next Week  

reports the SCOTUSblog.

Prior posts: Middle Ground in Grokster (June 21, 2005) and No Grokster Decision Today (June 20, 2005).

Two More NTP Patents Rejected in RIM Patent Case  

Forbes reports:
Two more of the disputed patents in the ongoing legal battle between Canadian wireless-device maker Research In Motion and the holding company NTP have been rejected, a lawyer for NTP confirmed Wednesday. . . .

The latest two rejections bring the total number of NTP patents rejected in the matter to seven.
Prior post: USPTO Rejects Another NTP Patent in RIM Patent Dispute (June 20, 2005).

Update (June 23, 2005): CNet News has an interview with RIM co-CEO Jim Balsillie.

Update (June 24, 2005): Today, CNet News has an interview with NTP co-Founder Donald Stout.

More: Patently-O (including NTP's first response to a rejection in the reexamination for Patent No. 5,631,946).

Legal Downloader Population Will Soon Exceed Illegal Downloader Population  

Slashdot writes:
Entertainment Media Research released a study stating that 35% of music listeners are using legal download services, and that the percentage will soon surpass illegal downloads, currently at 40%.
More: Reuters.

China Won't Protect IP Until It Gets Its Own IT  

writes the Register.