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Google revises policy after DOJ subpoenas
Breaking Legal News | 2007/03/15 09:07

Google Inc. announced a new user privacy policy on Wednesday where, "unless is legally required to retain log data for longer," Google will anonymize search information, such as the query entered, IP addresses, and cookie details, after 18 to 24 months. Google further said:

By anonymizing our server logs after 18-24 months, we think we're striking the right balance between two goals: continuing to improve Google's services for you, while providing more transparency and certainty about our retention practices. In the future, it's possible that data retention laws will obligate us to retain logs for longer periods.

Last year, Google fought a Justice Department subpoena seeking to force the search engine giant to hand over a large amount of user data, including one week's worth of query searches and up to 1 million web addresses.

The DOJ requested the user data as part of an effort to re-write the federal Child Online Protection Act (COPA), which was overturned by the Supreme Court's 2004 ruling in Ashcroft v. ACLU as a violation of First Amendment free speech protections. Microsoft and AOL complied with the DOJ subpoenas, but Google argued that the DOJ would gain little useful information from the requested data. A federal judge granted the DOJ limited access  to the Google records.



Cisco to pay $3.2B for WebEx
Venture Business News | 2007/03/15 09:05

Cisco Systems Inc. said Thursday that it has agreed to acquire the online meeting company WebEx Communications Inc. for about $3.2 billion in cash.

Cisco, the leading maker of routers and switches that direct data over computer networks, said it will pay $57 per share of WebEx. That represents a 23 percent premium over WebEx's closing price of $46.20 Wednesday on the Nasdaq Stock Market.

Shares of WebEx soared $10.53, or more than 22 percent, to $56.73 in early trading on the Nasdaq Stock Market. Cisco shares lost 6 cents to $25.79 on the same exchange.

Cisco said the acquisition has been approved by both boards and is expected to close in the fourth quarter of fiscal 2007. Cisco said it expects transaction to have an immaterial effect on its fiscal year 2008 earnings after one-time charges are subtracted. The total purchase price will be about $2.9 billion when factoring in WebEx's $300 million in cash on hand.

The San Jose-based company has recently made a number of acquisitions branching out from its core business of supplying networking gear and into communications, social networking and other areas that help drive traffic over the network and increase demand for its core equipment.

Santa Clara-based WebEx makes applications that enable online conferences and secure instant messaging. The company says it commands 64 percent of the online meeting market, with more than 3.5 million people using WebEx services every month for online communications.

Cisco said the acquisition will allow it to tap into the increasingly lucrative market for business communications over the Internet.

"As collaboration in the workplace becomes increasingly important, companies are looking for rich communications tools to help them work more effectively and efficiently," Charles H. Giancarlo, Cisco's chief development officer, said in a statement. "The combination of Cisco and WebEx will deliver compelling solutions accelerating this next wave of business communications."

Some analysts expressed concern on a conference call about the price of the deal, considering WebEx had just $380 million in revenue last year and just under $49 million in net income. Some also suggested that Cisco could have snagged the company at a much cheaper price had it acted sooner. WebEx's stock price rose more than 56 percent since last year, based on the company's closing price before the deal was announced.

However, some industry observers said the deal is a perfect fit for Cisco's Linksys division, beefing up its offerings for small businesses. The deal also will also give WebEx access to larger business customers and the opportunity for expanded growth worldwide, said Roger Kay, president of Endpoint Technologies Associates Inc.

"From Cisco's point of view, it makes some sense: You're beefing up Linksys, you're grabbing a player that can help increase the value of the Linksys franchise, and you're a grabbing a player that's already well established in markets you've assessed will have high growth rates," Kay said.



Court upholds ban on medical marijuana
Court Watch | 2007/03/15 09:04

A California woman with an inoperable brain tumor may not smoke marijuana to ease her pain even though California voters have approved its medicinal use, a U.S. appeals court ruled on Wednesday. In a much-watched test case, the 9th U.S. Circuit Court of Appeals found there is no fundamental right to marijuana for medical purposes. The ruling agreed with a 2005 U.S. Supreme Court decision.

The split three-judge opinion from Judge Harry Pregerson expressed sympathy for some arguments by plaintiff Angel Raich, 41, an Oakland resident whose doctor testified she could die if she stopped smoking pot. But the ruling backed the 1970 federal Controlled Substances Act barring marijuana.

Raich, who suffers from many ailments, says marijuana keeps her alive by easing pain and bolstering appetite.

"Today I found out I am basically a dead man walking," Raich, who once worked as an accountant and massage therapist, told Reuters. "Today the court said I don't have the constitutional right to basically stay alive."

The mother of two said U.S. officials had never moved to arrest her or bar her from using marijuana and said she would continue to do so every two hours. "I'm damned if I do, damned if I don't," she said.

Raich said she would lobby Congress in Washington to change U.S. law. The court said use of the drug for medical purposes was gaining support but federal law still banned it.

"We agree with Raich that medical and conventional wisdom that recognizes the use of marijuana for medical purposes is gaining traction in the law as well," the judge wrote.

The ruling acknowledged the law could change if legislators reconsider the issue.

"Although that day has not yet dawned, considering that during the last 10 years 11 states have legalized the use of medical marijuana, that day may be upon on us sooner than expected," Pregerson said.

Voters in California, the nation's most populous state, became the first to approve medical marijuana in 1996, putting it in direct conflict with federal law. Gov. Arnold Schwarzenegger has admitting using marijuana in the past.



BenQ's VP Detained For Illegal Transactions
World Business News | 2007/03/15 00:02

Suspected of conducting dubious financial transactions, Eric Yu, senior vice president at BenQ, has been detained by Taiwanese police and finance managers Alex Liou and Billy Liou were arrested and then released on bail.

BenQ made an announcement on Wednesday, saying that their offices in Taoyuan and Taipei had been raided by the police and the sudden check had something to do with the company's payment of bonuses to its overseas employees.
The BenQ spokesperson says that they will fully cooperate with the investigation.

In 2005, BenQ purchased Siemens' handset unit, but the company failed to build it into much of anything. Following the detention of Yu, BenQ's stock dropped dropped by 7% to its lowest level in years, as investors started to question the company's corporate governance.



Bush stands by firings, 'troubled' with process
Breaking Legal News | 2007/03/14 23:28

President Bush on Wednesday said he was "troubled" by what he called a lack of straightforward communication between the US Justice Department and Congress regarding the firings last year of eight US Attorneys that may have been politically motivated. Speaking at a news conference in Mexico, Bush nonetheless said he continued to have confidence in Attorney General Alberto Gonzales and maintained that the firings were appropriate. Gonzales said Tuesday he would not resign but nonetheless accepted responsibility for "mistakes" in how the firings were handled.

According to e-mails revealed Tuesday, Gonzales' Chief of Staff Kyle Sampson and former White House counsel Harriet Miers suggested firing all 93 US Attorneys at the beginning of President Bush's second term. Sampson resigned from his position Monday. Comprehensive dismissals of top federal prosecutors are not unprecedented; Clinton administration Attorney-General Janet Reno fired all 93 US Attorneys at the beginning of President Clinton's first term.

Shortly after Bush's comments Wednesday, Sen. John Sununu (R-NH) became the first Republican to publicly call for Gonzales' resignation, following up on several Democratic calls for his dismissal. In response to Gonzales' comments Tuesday, Sen. Charles Schumer (D-NY), among others, renewed his calls for Gonzales to resign in a statement on the Senate floor. Several high-ranking Democratic senators also called for Gonzales' resignation Monday in the wake of revelations in an official audit that the FBI broke and misused laws in obtaining personal information from telephone companies, Internet service providers, banks, and credit bureaus under the Patriot Act.



Chiquita to pay $25M to settle terrorism claims
Court Watch | 2007/03/14 23:07

Chiquita Brands International, Inc. has reached a plea agreement with the US Justice Department to settle claims that Chiquita paid approximately $1.7 million to a Colombian terrorist group between 1997 and 2004 to protect banana harvesting operations in Colombia, according to a criminal information filed by the DOJ in federal court Wednesday. Chiquita itself released an SEC filing Wednesday, which states, in part:

On March 14, 2007, Chiquita Brands International, Inc. ("the Company") entered into a plea agreement with the United States Attorney's Office for the District of Colombia and the National Security Division of the U.S. Department of Justice (together, the "government") relating to the previously disclosed investigation by the government into payments made by the Company's former banana-producing subsidiary in Colombia to certain groups designated under U.S. law as foreign terrorist organizations. Chiquita voluntarily disclosed the payments to the government in April 2003. Under the terms of the agreement, the Company will plead guilty to one count of Engaging in Transactions with a Specially-Designated Global Terrorist, and will pay a fine of $25 million, payable in five equal annual installments, with interest. The Company also will continue to cooperate with the government in any continuing investigation into the matter. As previously disclosed, the Company had recorded a reserve in 2006 of the full $25 million fine amount in anticipation of reaching a settlement with the government.

The agreement is subject to approval and acceptance by the United States District Court for the District of Columbia.

The payments were made to the United Self-Defense Forces (AUC) of Colombia, which in September 2001 was designated as a terrorist organization by the US government.



Giuliani law firm lobbies for Venezuela firm
Legal Business | 2007/03/14 22:33

Republican presidential hopeful Rudy Giuliani's law firm lobbies for Citgo Petroleum Corp., which is controlled by the Venezuelan state oil company and President Hugo Chavez, but the firm said on Wednesday that Giuliani has never worked on the account.

The leftist Chavez is an ardent foe of President George W. Bush's administration and a bane to conservatives whose support Giuliani will need as he seeks the 2008 Republican presidential nomination.

Records filed at the Texas Ethics Commission showed the law firm, Houston-based Bracewell & Giuliani, may have received up to $170,000 from Citgo since 2005.

A spokeswoman for Giuliani's campaign, which has been buoyed by recent opinion polls showing him leading his Republican rivals, declined to answer questions, but provided an e-mail statement denouncing Chavez.

"Mayor Giuliani believes Hugo Chavez is not a friend of the United States and his influence continues to grow because of our increasing reliance on foreign sources of oil," the statement read.

It concluded with a call for developing alternative sources of fuel to replace foreign crude oil. Venezuela is the No. 4 oil supplier to the United States.



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