"This is a major victory for recording artists and record labels whose hard work and creativity provides the music around which the Internet radio business is built," SoundExchange executive director John Simson said. "Notwithstanding this victory, we continue to reach out to the webcasting community to reach business solutions."

SoundExchange was created to distribute the royalty following the 1995 Digital Performance Right in Sound Recording Act. The royalty is split 50-50 between copyright owner, typically a label but sometimes the artists or other entities, and the performer.

Webcasters had challenged the royalty, contending that a panel of copyright royalty judges erred when they dramatically increased the rate this year.

"Digital Media Assn. members and all Webcasters are disappointed by the court's decision and are now forced to make very difficult decisions about what music, if any, they are able to offer," executive director Jonathan Potter said. "The result will certainly be fewer outlets for independent music, less diversity on the Internet airwaves, and far fewer listening choices for consumers. We're hopeful that Congress will take steps to ensure that Internet radio is not silenced, and that Webcasters and SoundExchange will find a way to compromise and maintain the diversity and opportunity of Internet radio."

Boutique technology law firm Daniels Daniels & Verdonik, whose members were major players during the go-go, dot-com years, is closing shop and will be absorbed into the Raleigh outpost of New Bern-based Ward and Smith.

Founded in 1982, DD&V was well known among the local entrepreneurial intelligentsia, with clients including Etrials Worldwide Inc., EMC Corp. and StrikeIron Inc. The shop's offerings included corporate and tax law, structuring venture financing deals and patent and copyright work.

DD&V always has been a small firm, with its attorney roster maxing out at eight a few years ago. But after losing a couple of attorneys to Hutchison Law Group in the spring, DD&V's roster dwindled to just four lawyers, including name partners Walter Daniels, Linda Markus Daniels and Jim Verdonik.

"Daniels Daniels & Verdonik is a specialized firm with exceptionally knowledgeable attorneys who will strengthen our firm's full service capabilities," says Ward and Smith co-managing director Kenneth R. Wooten.

Partners at DD&V believe size will benefit the lawyers as well as the clients.

"We chose to combine with Ward and Smith to utilize their talented group of attorneys to provide additional resources to our clients," says Verdonik. "We are excited about this combination, and we look forward to continuing to serve the technology community with a wider range of services and a much deeper team."

Keith Kapp, who leads Williams Mullen Maupin Taylor's Raleigh office, sees benefits of the merger for DD&V.

"It would make good business sense and would better serve clients to be able to offer multiple specialties," says Kapp, who helped shepherd Raleigh-based Maupin Taylor through its recent merger with Virginia firmWilliams Mullen earlier this year.

Walter Daniels, a Morehead Scholar at the University of North Carolina at Chapel Hill, and wife Linda operated the firm as Daniels & Daniels for years. That changed in 2003, when tech and securities maven Verdonik jumped ship from Kilpatrick Stockton to join them.

In addition to the Danielses and Verdonik, intellectual property lawyer Jose Cortina works at DD&V.

The four lawyers are in the process of moving to Ward and Smith, which opened a Raleigh office in 1990. Excluding the DD&V crew, Ward and Smith's downtown Raleigh office has about 20 employees, including attorneys and support staff.

While specialization can have its advantages, DD&V was hamstrung by its size and practice limitations - especially after Caroline Horton Rockafellow and Amalie Tuffin departed the firm in March to join competitor Hutchison Law Group. A major chunk of DD&V's clientele is aspiring technology companies. They have the potential to soar to the moon, but many flame out on the launch pad.

Law firms can get burned along the way, notching plenty of billable hours working for a client that ends up not being able to pay because it encounters financial difficulty. Having to kiss a lot of frogs in order to find a prince is a better proposition at a bigger firm, which can weather tough times because it has other revenue-generating practice areas to fall back on.

A small firm such as DD&V also can be at a disadvantage because larger competitors can offer clients a wider diversity of services. For instance, DD&V competitors such as Smith Anderson and Wyrick Robbins Yates and Ponton both have dozens of lawyers and more practice areas, allowing clients to have much of their legal work taken care of under one roof. Hutchison Law Group has a niche similar to DD&V but is much bigger, having grown to 24 attorneys since its founding in 1996.

After the DD&V lawyers move over, Ward and Smith will have more than 70 attorneys and north of 200 support staff combined in Greenville, New Bern, Wilmington and Raleigh.

"With established offices in Wilmington and Greenville, two growing technology centers in eastern North Carolina, Ward and Smith will also expand the geographic reach of our technology practice," says Verdonik.

http://www.d2vlaw.com

McGlone is accused of illegally distributing human growth hormone and steroids to body builders in several states, and allegedly got some of the drugs from a Florida-based pharmaceutical company charged by New York authorities in a larger steroid case.

Prosecutors say McGlone advertised in bodybuilder publications and recommended the drugs for anti-aging and weight-loss purposes. Federal law restricts the use or distribution of human growth hormone to specified medical uses, such as wasting disease associated with AIDS.

McGlone took orders over the phone and paid two New York doctors to write prescriptions for the drugs even though they never met or examined the patients, according to prosecutors.

He made more than $860,000 through the scheme between April 2004 and August 2006, prosecutors said. Authorities seized more than $125,000 and two Dodge Vipers from McGlone, according to federal court documents.

McGlone sent the prescriptions to pharmacies, including Orlando, Fla.-based Signature Pharmacy, according to prosecutors. The company is not charged in the Rhode Island case.

One doctor pleaded guilty in March to conspiracy and illegal drug distribution charges. The other doctor had initially agreed to plead guilty, then declined to do so at a court hearing last month.

"I have read the (plea) agreement, and I accept responsibility," Crutchfield told U.S. Judge J. Daniel Breen.

Defense attorney William Farmer characterized the money that Crutchfield admitted taking as a "gratuity" rather than a bribe.

"They gave him a gratuity _ thanks for all your help _ long after he had already agreed to support this bill," Farmer said outside court.

Crutchfield and former Sen. Kathryn Bowers, D-Memphis, were the last of the Tennessee Waltz lawmakers still facing trial. The others have pleaded guilty or been convicted at trial.

Bowers' attorney, William Massey, said she would plead guilty on Monday.

"She brings this one blemish to the courtroom but a lifetime of good work and a positive history in the community," Massey said. "We hope to convince the judge it's not necessary to punish her severely."

If prison time is ordered, he said, "that's what she'll do. She's strong."

Tennessee Waltz indictments were returned in May 2005, charging the five with taking payoffs from a company called E-Cycle Management, which turned out to be a creation of the FBI.

Farmer said that Crutchfield, who has served in the General Assembly for 31 years, plans to resign "in due time," before the Legislature returns to session in January.

Crutchfield still will be eligible for a $42,000 annual pension because his membership in the state's retirement system predated changes in a law designed to strip benefits from convicted lawmakers.

He faces a maximum of five years in prison and a $250,000 fine, though federal guidelines for a first-time offender would call for a much lighter sentence. Sentencing was set for Nov. 28.

The indictment against Crutchfield accused him of splitting $12,000 in bribes with a so-called "bagman" and former lobbyist, Charles Love. Love pleaded guilty and was to testify against Crutchfield at trial.

Prosecutors say the Tennessee Waltz investigation is ongoing.

Pushing through a crowd of reporters and photographers outside the Memphis courthouse, Crutchfield refused to talk about Tennessee Waltz.

"I'm ready to go home to Chattanooga right now," he said.

Crutchfield was first elected to the state House in 1956 and served 14 terms in the Senate. He was Senate Democratic leader for six years until losing a caucus vote about five months before the Tennessee Waltz investigation became public.

"It is our hope that this does not obscure what was a record of noteworthy public service. Senator Crutchfield represented the people of his district with distinction for a very long time," Democratic caucus chairman Joe Haynes said in a statement.

In all, 11 people have been indicted on Tennessee Waltz charges, including several officials in Memphis and Chattanooga. Nine of those charged, including Crutchfield, now stand convicted.

The law firm practices in several areas, with a focus on federal criminal defense, environmental and regulatory law and civil litigation, according to a news release.

Callaghan has been mentioned in political circles across the state as a potential candidate for West Virginia Attorney General or state Supreme Court justice in 2008.

Regarding these rumors, Callaghan commented, "It's flattering to have people holding you in high enough regard to be considered as a potential candidate for those positions. Truth be told, my focus right now is just building my law practice. So, that's what I see in my future for the time being."

Neely and Callaghan have both been media fixtures throughout their careers, given their histories of public service. They hope to capitalize on their experience with civil and criminal cases and plan on working on a deliberately small caseload to help give their clients a very high level of personal attention.

"I look forward to this new phase of my life," Neely said. "Mike and I plan to organize our practice around a small number of difficult cases that clients believe justify the personal attention of senior, experienced lawyers from start to finish."

One of Northern Kentucky's most active community leaders is leaving his law firm for an executive position. A.J. Schaeffer will become principal of Union-based Drug Enhancement Co. of America (DECA) July 31, according to a news release from Greenebaum, Doll & McDonald PLLC.

Schaeffer has been a member of the Covington-based law firm since graduating from the University of Kentucky College of Law in 1999. Among his civic activities, he serves as co-chairman of Northern Kentucky's Vision 2015 community planning process.

DECA, a client of Greenebaum, develops health care technologies for treatment of various diseases and disorders. It was founded by Roger Griggs, an entrepreneur who has started several Northern Kentucky-based firms, including Richwood Pharmaceuticals and Xanodyne Pharmaceuticals.

Jeffrey McKenzie, chairman and CEO of Greenebaum, said that although the firm is saddened by Schaeffer's departure, "his extensive participation in the community, coupled with his enthusiasm for serving his clients, is a combination which emulates the Greenebaum culture."

A Business Courier Forty Under 40 winner, Schaeffer is past president of Legacy, a Northern Kentucky civic group for young professionals, and is a frequent public speaker.

Greenebaum, Doll & McDonald operates offices in Covington; Cincinnati; Frankfort; Lexington; Louisville; Washington, D.C.; and Nashville, Tenn.