March 23, 2011 nº 1.020 - Vol. 9
"There can be no real freedom without the freedom to fail."
Erich Fromm
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Read Migalhas LatinoAmérica in Spanish every Tuesday and Thursday. Visit the website at www.migalhas.com/latinoamerica
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US court blocks Google book deal
An agreement between Google and publishers over the web firm's publication of books online has been blocked by a US court. The web giant has scanned millions of books and made them available online via its eBooks platform. Google had negotiated the deal to settle a six-year-old class action suit claiming infringement of copyright. But the NY court said the deal would "simply go too far", giving Google an unfair competitive advantage. Under the agreement with the Authors Guild and the Association of American Publishers, Google would continue to digitize books and sell access online. In return, the company would pay $125m in royalties every year to the copyright owners of the books being scanned. However, copyright concerns persisted, as the ownership of many of the works being scanned by Google could not be established, meaning many would be unable to claim the royalty payment. "The amended settlement agreement] would give Google a significant advantage over competitors, rewarding it for engaging in wholesale copying of copyrighted works without permission, while releasing claims well beyond those presented in the case," said judge Denny Chin. The US Department of Justice has approved the ruling and said it was the "right result." It has been critical of Google's deal, saying it would give Google exclusive rights to profit from "orphan works", where the rights holders are unknown or cannot be found. The Justice Department said the agreement "created concerns regarding antitrust, class certification and copyright issues."
Germany court rules Google Street View legal
A Berlin high court has ruled that Google's Street View mapping service is legal in Germany. Last year, a woman sued Google alleging that photos posted on Google Street View of the woman, her family and the front of her house violated her property and privacy rights. The court held last week that, because the photos were taken from the street, Google did not violate her property rights. Furthermore, the court found no further violations because Germans can opt out of the service, and Google blurs faces and license plates in the posted images. The ruling was narrowly focused on property rights, ignoring larger data protection issues the company is currently confronting. The high court's ruling cannot be appealed.
France commission fines Google for violating data privacy laws
The french CNIL - National Commission of Information Technology and Liberty fined Google 100,000 euros (US$141,300) on Monday for violating French data privacy laws by capturing personal data through Google Street View cars, used for its Google Maps service. CNIL stated that Google was not responding to requests in a timely manner and has not stopped using the seized data. Google admitted to the collection of e-mails, passwords and other data over unsecured WiFi networks, but maintained that it was a mistake and that it did not intend to include the code which captured payload data from unsecured WiFi networks. In response to the controversy, Google grounded its Street View cars. The company claims that it is currently seeking assistance in deleting the data, but CNIL found that the data collection was continuing through Google's geolocation service Latitude.
Supreme Court rebuffs big pharma in Zicam suit
In a unanimous ruling with particular significance for the pharmaceutical industry, the U.S. Supreme Court has allowed investors to sue the maker of Zicam cold remedies. The decision firmly rebuffs an effort by corporations seeking to make it more difficult to bring investor lawsuits. Usually, lawsuits against a drug manufacturer are brought by consumers who allege they were harmed by the product. But Tuesday's case involved a class action brought by investors against Matrixx Initiatives Inc., the maker of Zicam products. The investors charge that they were defrauded because the company failed to disclose early reports that Zicam nasal spray and gel caused a permanent loss of smell in some consumers. When a case like this goes to court, the people who are suing have to make an initial showing that there is enough evidence to justify the suit's going forward. So, how do you do that? What do you have to show? Matrixx tried to raise the bar so that adverse reports would have to be statistically significant and reliably linked to the product. But the Supreme Court rejected that argument as "flawed." The case stems from events in 2003 and 2004 when Matrixx's stock was booming. Seventy percent of its sales came from Zicam products, and in January 2004, the company raised its revenue guidance, predicting an 80 percent increase in the coming year. Matrixx did not disclose, however, that it had received reports from three medical researchers about a possible link between Zicam and a loss of smell in at least 10 patients. The company also failed to disclose that three lawsuits had been filed charging its products resulted in a loss of smell. Nor did it disclose that the Food and Drug Administration was conducting an investigation into complaints. The investors who bought stock during this period went to court, claiming that the company's actions amounted to fraud — an attempt to keep the company's stock price artificially high by failing to disclose material facts that, if known, would have affected the market.
False-marking suits slow after Federal Circuit ruling
A ruling by a federal appeals court last week that made it harder to cash in on expired patents appears already to have reduced a flood of opportunistic patent lawsuits to a trickle.
eBay for Lawyers
Auction sites like eBay work pretty well if you're looking for a hard-to-track-down piece of flatware. But can they work for lawyers' services? Many attorneys have doubts, but a 21-year-old law student named Robert Grant Niznik is putting his money—or more candidly, he says, his parents' money—behind a website called Shpoonkle (shpoonkle.com) that will let lawyers bid for clients. The New York Law School student and his start-up, whose motto is "Justice You Can Afford," are creating a buzz in legal circles. Lawyers and bloggers have been debating the merits of the idea leading up to its launch.
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1 - Google patents their "Google doodles" - click here.
2 - Gall bladder surgery sparks $1.4m lawsuit - click here.
3 - Brazilian insurance worker awarded £142,000 over 'SpongeBob SquarePants' taunts - click here.
4 - US high court steps out of Eminem's royalty suit - click here.
5 - Competing bills muddy the waters over oil spills - click here.
6 - Journalists in court over murder trial interview - click here.
7 - Hostelry sector jobs escape side-effects of new tobacco law - click here.
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Does it matter where chapter 11 bankruptcy is filed?
The US Congress is looking at Chapter 11 filing venue again. In particular, some senators want to restrict the ability of corporations to file for bankruptcy in their jurisdiction of incorporation, rather than their "home" jurisdiction where they have their headquarters. Assume for a moment that it is actually a problem that companies file Chapter 11 cases away from their home district. Even then, it seems that focusing on incorporation is at most a partial solution that penalizes Delaware to the benefit of NY. A prohibition on filing at the debtor's place of incorporation would not have kept General Motors in Federal Bankruptcy Court in Detroit, or even Enron in Texas. Neither were incorporated in NY, but instead each filed in Manhattan based on an earlier filing of a subsidiary with clear NY connections. In corporate law, the enterprise that we know as "G.M." comprises myriad corporations, each of which constitutes its own bankruptcy case. It would make little sense to split these cases across the country, so once one case is filed, all the others can come into the jurisdiction as "related" cases. And there are even more ways to find a connection with NY that will facilitate a filing here. Borders Group filed in NY solely on the basis of a few bookstores in Manhattan and major contracts with NY publishers. None of the Borders entities are incorporated in NY — although, interestingly, one is incorporated in Britain. The problem, of course, is that once you try to fix these types of venue issues, the line drawing becomes extremely difficult. Do we really want bankruptcy courts to have to figure out where a company's "true" home is? What if the corporate address listed on the 10-K is not in the same state as all of the manufacturing operations? At some point, you simply need to get on with saving the debtor. And that last point brings up the bigger question about whether this is a whole lot of fuss about nothing. It is understandable that local lawyers might dream of handling these big cases, but wouldn't it be more likely that the big NY law firms would still handle the cases in the new locales? This is why the arguments against forum shopping are so often paired with daydreams about courts becoming more active regulators of lawyers' fees. Only then will the real goal of driving big NY corporate firms out of the Chapter 11 business be realized. Supporters of location restrictions should think about whether they agree with this true end-goal. While there are certainly pieces of the big cases that might be better handled by smaller, more nimble law firms, I wonder if smaller, local firms are ready to handle the total of a "mega" Chapter 11 case. And there is something to be said for concentrating the small number of really big Chapter 11 cases into a handful of jurisdictions, so that the judges therein can get sufficient experience in handling these types of cases. Many states have acknowledged as much when they have created commercial divisions of their local trial courts.
Fed profit rose sharply to $82bn last year
Profit at the Federal Reserve banks soared to a record $82bn last year, a windfall for taxpayers that also underscores the depth of the Fed's continued involvement in the nation's financial markets.
Supreme Court to examine whether death penalty appeal can continue despite missed deadline
The US Supreme Court will determine whether an appeal of a capital murder conviction can continue despite the prisoner's lawyers failing to meet a paperwork deadline, in one of two cases in which the court granted certiorari Monday. In Maples v. Allen, the court will review a decision by the US Court of Appeals for the Eleventh Circuit that held the state of Alabama may execute Cory Maples without federal habeas review of his constitutional claims due to a missed appeal deadline that was no fault of the prisoner's. The Alabama trial court had dismissed Maples' petition for post-conviction relief and sent notice of this ruling to the prisoner's attorneys, but the notice was returned to the court unopened and stamped returned to sender because the attorneys had left that firm. The court did nothing with this, and the deadline to appeal the ruling passed.
Yemen president warns of coup
Yemeni president Ali Abdullah Saleh has said there could be a civil war in Yemen because of attempts to stage what he called a coup against his rule. "Those who want to climb up to power through coups should know that this is out of the question. The homeland will not be stable, there will be a civil war, a bloody war," he said. Army officers expressed their support for pro-democracy protesters on Monday.
Tokyo water warning on radiation
Radiation levels in Tokyo's tap water make it unfit for babies to drink, Japanese officials warn as efforts to stabilise a quake-stricken nuclear plant continue. Elsewhere, Japan has halted more shipments of vegetables grown near the damaged Fukushima nuclear power plant.
Malaysia Anwar ruling overturned
The judge hearing sodomy charges against the Malaysian opposition leader Anwar Ibrahim has reversed an earlier ruling to now allow key DNA evidence. Judge Diah had earlier barred the use of DNA taken from items used by Anwar in a police cell. After a prosecution appeal, he has said it can be used as Mr Anwar's arrest and detention were "lawful".
Apple sues Amazon over 'Appstore'
As Amazon launches a store for Android applications, Apple is suing the retailer over its use of the name 'Appstore'.
Tighter rules for UK student visas
The rules for student visas into the UK are to be much tougher - after fears that this route of entry is being used dishonestly. Home Secretary Theresa May said that the misuse of student visas had become a "symbol of a broken and abused immigration system," and that student visas were being abused and "too many were here to work and not to study". She announced plans to cut the number of student visas by up to 80,000 - about a quarter of the current numbers.
Chile to seek US Pinochet files
Chilean president Sebastian Pinera says he will ask the US for classified documents relating to human rights violations under gen Augusto Pinochet.
Obama in Chile hails Latin America progress
Obama has called for a new relationship between the US and Latin America based on equal partnership. Speaking in Chile, he said Latin America was fundamental to the prosperity and security of the US. Obama praised the region for its dynamism, saying it was ready to assume a greater role in world affairs. He added that Latin America's political experience could be a guide for other peoples seeking democracy.
Rajaratnam trial hears Intel leaks admission
A former Intel executive has said that he passed company information to his friend Raj Rajaratnam in the biggest Wall Street insider-trading trial in decades. Rajiv Goel made the claims as a witness for the prosecution. So far more than two dozen people have been criminally or civilly charged in the case. They include staff at some of America's biggest companies, including IBM and Intel. Lloyd Blankfein , chairman of Goldman Sachs Group Inc., will be called by U.S. prosecutors to testify as a government witness at Galleon Group LLC co-founder Raj Rajaratnam 's insider-trading trial.
Egypt stock market tumbles by 10%
Egypt's stock market falls 10% within minutes of reopening after being closed for nearly two months.
Germany prosecutor requests 6-year sentence for alleged Nazi guard
Germany prosecutors called Tuesday for a six-year sentence in the trial of John Demjanjuk, accused of having helped to murder 27,900 Jews at the Sobibor death camp during his time as a guard there. The Ukrainian-born Demjanjuk, now 90 years old, was allegedly among Soviet prisoners-of-war recruited to work at the death camps by the SS. Demjanjuk, however, has denied the charges against him and insisted he was a prisoner-of-war for most of the remainder of the conflict. The prosecution requested conviction on all 27,900 counts of accomplice to murder, which carries a maximum sentence of 15 years. Germany disallows consecutive sentencing, and the prosecutor requested only six years because of Demjanjuk's advanced age and because he was already jailed for eight years in Israel before his conviction was overturned by the Israeli Supreme Court. A verdict is expected sometime in May.
Israel's new laws have some fearing discrimination
Israel's conservative-led Knesset adopted two controversial laws Wednesday that critics warn will worsen discrimination against the country's Arab minority and make it easier to prevent Arab citizens from moving into hundreds of Jewish towns and villages. One law legalizes the practice of using "admissions committees" in small towns in the Negev and Galilee to reject would-be residents based upon their social "suitability," a vague term that opponents fear will also be used to bar gays, black Israelis, single women, Christians and secular families. The second law is aimed at imposing fines on Arab towns and organizations that commemorate so-called Nakba Day, which falls on Israel's Independence Day. Some Arab Israelis mourn the day as a "catastrophe" because it resulted in the displacement of some 700,000 palestinians.
Israel ex-president sentenced to 7 years on rape conviction
The Tel Aviv District Court sentenced former Israeli president Moshe Katsav to seven years in prison Tuesday for sexually assaulting three women. The court convicted Katsav in December, finding that he had assaulted a female employee of the Department of Tourism during his time as minister and two women at the President's Residence during his time as president. Katsav must also serve two years of probation and pay a total of 125,000 NIS ( US$35,500) to his victims. The judge reading the sentence cited Katsav's pattern of repeated abuse as a reason for the long sentence. In a minority opinion, one judge argued that Katsav should face only four years in prison. Katsav has continued to maintain his innocence, and his lawyer said he will appeal the sentence, which is scheduled to begin May 8. Katsav is the highest ranking Israeli official ever sentenced to jail.
US Treasury to sell $142bn of mortgage assets
The US Treasury has said it will start selling off $142bn worth of mortgage-backed securities that it bought during the financial crisis. It said it would look to sell up to $10bn worth every month and expected to generate a profit of between $15bn and $20bn from the sales. The money will help to reduce the government's high budget deficit.
Judge orders Jobs to answer iTunes questions
A federal judge has ordered Apple chief executive Steve Jobs to answer questions relating to an antitrust lawsuit that says the company's iTunes software maintained a monopoly in portable digital media players and music downloads.
US Senate to hold hearing on Muslim rights
A US Senate committee said Tuesday it will hold a hearing next week on protecting the civil rights of american muslims, two weeks after another panel hotly debated the threat posed by homegrown islamists. The US Senate Judiciary Subcommittee on the Constitution, Civil Rights and Human Rights session on March 29 follows a hugely controversial March 11 hearing by the House Homeland Security Committee on domestic terror threats. Dick Durbin denounced "the spike in anti-Muslim bigotry in the last year", citing "Koran burnings, restrictions on mosque construction, hate crimes, hate speech, and other forms of discrimination" and said the session would focus on "measures to protect the civil rights of American Muslims."
Syria forces kill 6 protesters in Deraa mosque attack
Al Arabiya, Online news, Dubai, United Arab Emirates
A talk with Libyan Deputy FM Khalid Kaim
Asharq Al-Awsat, Pan-Arab daily, London, England
Sweden freezes over a billion euros in Libyan assets
Egyptian Gazette, English-language, Cairo, Egypt
Abbas to Russia: Pressure Israel to halt Gaza escalation
JPost, Conservative, Jerusalem, Israel
Japan nuclear plant rocked by second blast, reactor undamaged
Nahamet, Online news portal, Beirut, Lebanon
Yemen army split could mean civil war
Yemen Observer, Sana'a, Republic of Yemen
Osborne to pledge 'growth' Budget
BBC News, Centrist newscaster, London, England
Deloitte creates 125 jobs in Belfast
BreakingNews.ie, Online news portal, Cork, Ireland
Japan nuclear crisis: Britain at radiation risk as Fukushima heats up again
Daily Mail, Conservative daily, London, England
LIVE COVERAGE: Gaddafi promises victory over Western powers
France 24, Issy-les-Moulineaux, France
West will end in 'dustbin of history', Gaddafi says
Independent The, London, England
Novartis drug hit by FDA delay
Irish Times The, Centrist daily, Dublin, Ireland
New IEA chief counts on russian contacts
Moscow Times The, Independent daily, Moscow, Russia
Libya: war without ends, yet without opposition, either
Spiked, (Alternative Internet Magazine), London, England
Libya rebels struggle to regroup; US jet crashes
China Post, English-language daily, Taipei, Taiwan
Coalition forces pound Libya; Gaddafi vows 'revenge'
India Express, News portal, Mumbai, India
2 Taliban detained in Nimroz
Pajhwok Afghan News, (Independent news agency), Kabul, Afghanistan
China approves death sentence for 7 in Xinjiang
Sify News, Chennai, India
No election fever in Assam yet
Thaindian News, Bangkok, Thailand
US to accept H-1B visa applications from April 1
Times of India, Conservative, New Delhi, India
Cops warn of new witchcraft trend
News24.com, Online news portal, Cape Town, South Africa
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