President Bush bowed this week to opposition from Lindsey Graham and other senators, declining to renominate the Pentagon’s top lawyer to the federal appellate court that oversees South Carolina.

Bush’s decision not to send the Senate the nomination of William Haynes to the 4th U.S. Circuit Court of Appeals acknowledges new political realities with a Democratic-controlled Congress.

The decision also is a victory for Graham, R-SC, a military lawyer who opposed Haynes’ appointment because of Haynes’ role as Defense Department general counsel in formulating tough interrogation techniques for accused terrorist detainees.

In a Dec. 19 letter to Bush, obtained Tuesday by McClatchy Newspapers, Haynes asked the president to withdraw his name from consideration.

Haynes was one of four controversial judicial nominees Bush chose not to renominate. The others were Terrence Boyle, William Myers and Michael Wallace.

PELOSI BANS SMOKING IN SPEAKER’S LOBBY

Smokers may be one minority in Congress with even fewer rights than newly demoted Republicans. Now they’re losing one of their last, cherished prerogatives — a smoke break in the ornate Speaker’s Lobby just off the House floor.

New House Speaker Nancy Pelosi, D-Calif., announced a ban Wednesday.

“The days of smoke-filled rooms in the United States Capitol are over,” Pelosi said. “Medical science has unquestionably established the dangerous effects of secondhand smoke, including an increased risk of cancer and respiratory diseases. I am a firm believer that Congress should lead by example.”

Lawmakers will still be free to light up in their own offices.

HIGH COURT WEIGHS UNION DISPUTE

Supreme Court justices indicated Wednesday they are inclined to uphold a Washington state law restricting unions from using workers’ fees for political activities.

The case involves a few thousand teachers and other education employees who are in the bargaining unit of the more than 70,000-member Washington Education Association — but who have chosen not to join the union.

The Washington Supreme Court struck down the law, but several justices said Wednesday that the law did not strike them as burdensome.

Previous legal interpretations have said that active licensing contracts between companies essentially act as a "covenant not to sue," according to the American Bar Association. As such, the "actual controversy" required to have a case under the U.S. Constitution doesn't exist.

But in an 8-1 opinion yesterday - with Justice Clarence Thomas dissenting - the court struck down that idea as "mistaken."

"Promising to pay royalties on patents that have not been held invalid does not amount to a promise not to seek a holding of their invalidity," Justice Antonin Scalia wrote on behalf of the majority. (Thomas contended the courts had no jurisdiction over the case because no controversy existed.)

Those who license access to patented technology may now decide it's more in their interests to try to have a suspect patent legally overturned. And patent holders may likely scrutinize potential partners more closely or charge higher fees to cover the risk of a lawsuit.

"Clearly, this will have some impact on how people look at licensing their technology," said Lawrence M. Sung, a professor and director of the Intellectual Property Law Program at University of Maryland School of Law.

"The difficult question is knowing how much of an impact there will be," Sung said.

For MedImmune, the opinion means a lower court will have to consider the company's original 2003 claim filed in California U.S. District Court. The case contends that a patent held by California competitor Genentech Inc. was obtained through improper collusion with a British biotechnology company and amounts to an illegal 12-year extension of an earlier patent.

Appleby Hunter Bailhache, the law firm that prides itself on its international presence, is about to get a little more global.

The Bermuda-based firm is planning to open an office in the Republic of Mauritius, they announced yesterday.

The new office will be located in the capital city of Port Louis and will begin operations next month.

The expansion will enable Appleby to further extend its legal services to clients, and will provide clients with greater access to the fast-growing emerging markets in Africa, Asia and India, the firm said in a statement.

The new office, which will operate under the name of Appleby (Mauritius International) Ltd, will focus on investment into emerging African and Asian markets.

Institutional clients in North America, Europe and Asia have indicated that they are looking for the resources of a global offshore services firm, to create efficient investment structures through a well-placed, independent sovereign country, the statement said.

The office will open with two partners - Mauritian Gilbert Noel and Malcolm Moller, who is transferring from the firm's Bermuda office to oversee the new operation.

The island of Mauritius, with a population of 1.2 million, offers a highly educated workforce and the government is successfully encouraging the introduction of external financial institutions to stimulate investment and diversify the economy, the firm noted.

http://www.applebyglobal.com

The US Supreme Court handed down decisions in three cases Tuesday, including US v. Resendiz-Ponce, where the Court upheld the conviction of Juan Resendiz-Ponce on charges of attempting to re-enter the United States illegally from Mexico after being deported. The indictment in the case did not allege an overt act showing that he tried to enter the US, but the Supreme Court ruled that the indictment was not defective as it "need not specifically allege a particular overt act or any other 'component part' of the offense." Read the Court's opinion per Justice Stevens, along with a dissent from Justice Scalia.

In MedImmune v. Genentech, the Court ruled that MedImmune did not need to breach its patent license agreement with Genentech before challenging the patent's validity, overturning a Federal Circuit decision.

In a statement Tuesday the industry group Coalition for Patent Fairness said that the unanimous ruling demonstrated yet again that "the patent system needs to be modernized. Fair patent protections deliver innovative products for consumers and strengthen America's international competitiveness. This ruling is a positive step, but it is clear that a legislative remedy is needed to strengthen our overall patent system."

Finally, the Court remanded Burton v. Stewart back to the lower courts, saying that Lonnie Lee Burton's appeal should be dismissed for lack of jurisdiction. The Court had agreed to hear the case to determine whether Blakely v. Washington, the 2004 decision which limited judges' discretion in criminal sentencing, "announced a new rule and, if so, whether it applies retroactively on collateral review." Despite hearing oral arguments on those issues, the Court ruled that Burton never complied with the jurisdictional requirements of 28 US 2244(b).

Libby faces charges of perjury and obstruction of justice when his trial begins January 16. One of Libby's defense lawyers said last month that his client plans to call his former boss, Vice President Dick Cheney, to testify.