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European Court Rejects Microsoft Antitrust Appeal
Breaking Legal News |
2007/09/17 10:17
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In a stinging rebuke to the world’s largest software maker, the second-highest European court rejected today a request by Microsoft to overturn a 2004 European Commission antitrust ruling that the company had abused its dominance in computer operating systems. The European Court of First Instance, in a starkly worded summary read to a courtroom of about 150 journalists and lawyers here, ordered Microsoft to obey a March 2004 commission order and upheld the €497.2 million, or $689.4 million, fine against the company. The court’s presiding judge, Bo Vesterdorf, reading a summary of the decision on his final day in office, said, “The court finds the commission did not err in assessing the gravity and duration of the infringement and did not err in setting the amount of the fine. Since the abuse of a dominant position is confirmed by the court, the amount of the fine remains unchanged.” “The court said the commission wins on virtually everything,” said Thomas Vinje, a partner at the law firm Clifford Chance and part of the legal team for the European Committee for Interoperable Systems, a coalition that includes Microsoft opponents like I.B.M. “The court has spoken. The commission was right.” In a statement this morning, the European Union’s competition commissioner, Neelie Kroes, said: “The court has upheld a landmark commission decision to give consumers more choice in software markets. Microsoft must now comply fully with its legal obligations to desist from engaging in anti competitive conduct. The commission will do its utmost to ensure that Microsoft complies swiftly.” Brad Smith, the general counsel for Microsoft, who was present for the reading, said the company would follow the ruling but did not say specifically whether the company would appeal it. “It’s clearly very important to us as a company that we comply with our obligations under European law. We will study this decision carefully and if there are additional steps that we need to take, we will take them,” Mr. Smith said. Robert Kramer, a vice president of public policy for CompTIA, a Microsoft ally that represents 3,000 technology companies, predicted the court’s ruling would have a chilling effect on investment both within the European Union and beyond. “What this ruling will do is send a message to companies that if they establish a good market position with a successful product, they will be forced in Europe to essentially give up that product to their competitors,” Mr. Kramer said. But Carlo Piana, a lawyer representing the Free Software Foundation Europe, hailed the court’s decision as a victory for small software developers around the world who may have lived in fear of Microsoft or other large platform operators. “This is an incredibly huge victory. The doors are kept open now for competition,” Mr. Piana said. The decision followed a five-day hearing on the issues in April. Microsoft has indicated in the past that it would appeal any negative ruling to the European Court of Justice, the highest court in Europe, but Mr. Smith would not say today whether the company would take that step in the two months and 10 days it has to. An appeal by the company, a process likely to take at least two years, would focus only on whether the appellate court erred in procedure in reaching its decision, not on the facts in the case. Microsoft has already been forced to pay nearly €1 billion in fines in the nine-year-old legal case, which has pitted the software maker based in Redmond, Wash., against the commission and a host of competitors, including I.B.M., Sun Microsystems, RealNetworks and Novell. In its ruling, the 13-member panel of judges said Microsoft had violated European antitrust law by exploiting its near dominance in operating systems to shut out competitors like RealNetworks in digital media players and Sun Microsystems in workgroup exchange servers. The ruling validated the pursuit of Microsoft by Mario Monti, former competition commissioner for the European Union, and his successor, Ms. Kroes. The case began in 1998 when Sun Microsystems filed a complaint over Microsoft’s refusal to disclose its confidential server protocols — computer code that competitors need to make their servers or desktop computers work with Microsoft products. Microsoft has been repeatedly fined by the commission since the 2004 antitrust ruling for inadequately supplying the protocols. “I think this means it’s about time for Microsoft to comply,” Mr. Vinje said. The commission later expanded its inquiry to include Microsoft’s practice of bundling its Windows Media Player into its dominant Windows operating system. After Microsoft began bundling its media player into Windows, it overtook the market leader, RealNetworks, and as of January it had a 50 percent share of the global market, according to the researcher Nielsen/NetRatings. “There has obviously been a lot of work that has gone into our efforts to comply with the commission’s terms with respect to communications protocols,” Mr. Smith said in Luxembourg today. “We have made a lot of progress in that regard and yet we all have to acknowledge that there are some issues that do remain open.” |
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Microsoft Faces New Antitrust Class Action In Arizona
Breaking Legal News |
2007/09/16 10:23
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A local governing body near Phoenix, Arizona has slapped Microsoft (MSFT) with a class action lawsuit, citing antitrust claims similar to those that resulted in a series of multi-million dollar settlements between Microsoft and consumers in more than a dozen states beginning in 2004. Arizona's Daisy Mountain Fire District, a political sub-division, said it's reviving the claims because the existing settlements do not apply to government agencies. The Fire District said in court documents that it wants to recover "overpayments made to Microsoft for its operating systems, word processing and spreadsheet applications software." It's also seeking triple damages and court costs. The Fire District charges Microsoft with engaging in "anticompetitive and monopolistic practices" and is seeking a jury trial. Attorneys for the Fire District are asking the court to open the case to all governing bodies in Arizona, giving it class action status. The Fire District quietly filed the claim earlier this summer in Arizona state court in Maricopa County. Last week, Microsoft asked the federal U.S. District Court for Arizona to take over the case. The Fire District is repeating many of the claims made against Microsoft by the Department of Justice and attorneys general on behalf of consumers in 19 states and the District of Columbia. The allegations center on charges that Microsoft used its monopoly position to overcharge for software applications such as word processors and spreadsheets. Under the settlements, Microsoft has agreed to issue millions of dollars worth of product vouchers to affected buyers. Microsoft officials were not immediately available for comment. Word of the action comes as Microsoft faces ongoing antitrust scrutiny in Europe. On Monday, Europe's second highest court rejected Microsoft's appeal of almost $1 billion in fines imposed on the company by trustbusters at the European Commission. |
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Suspects in W.Va. Torture Set for Court
Breaking Legal News |
2007/09/16 10:19
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Six white people accused of holding a black woman captive while they tortured and sexually assaulted her are scheduled to make their initial court appearances this week. But the proceedings may be delayed because public defenders representing two of the defendants have recused themselves, Logan County Prosecutor Brian Abraham said. The six defendants are charged with assaulting Megan Williams, 20, for more than a week at a ramshackle trailer in Big Creek. Police say she was tortured, sexually assaulted, forced to eat animal droppings and taunted with a racial slur. Bobby Brewster, George Messer, Alisha Burton and Karen Burton are scheduled to appear Monday in Logan County Magistrate Court. Frankie Brewster and Danny Combs are scheduled for to appear on Tuesday. Public defenders representing Bobby Brewster and Messer have recused themselves because they had represented some of the defendants in the past. A public defender can't represent a defendant in this case if they have represented any of the other defendants in past cases, Logan County Magistrate Court Clerk Deeanna Briggs said. Since 1991, police have filed 108 criminal charges against the six. Jack Rogers, executive director of the state's public defender services, said other lawyers could be hired on short-term contracts, or attorneys could be brought in from neighboring counties. Frankie Brewster, 49, and her son, Bobby Brewster, 24, are both charged with kidnapping and sexual assault, among other counts. Combs, 20, of Harts, is charged with sexual assault and malicious wounding; Karen Burton, 46, of Chapmanville, is charged with malicious wounding, battery and assault during the commission of a felony; and Burton's daughter, Alisha Burton, 23, and Messer, 27, both of Chapmanville, are charged with assault during the commission of a felony and battery. All six remain in custody in lieu of $100,000 bail each. Betty Gregory, lawyer for Karen Burton, said Friday she intends to ask for a bond reduction for her client because the $100,000 cash bond is "grossly inappropriate." The other lawyers representing the defendants did not immediately return telephone calls Sunday. Because Williams is black and the defendants are white, some _ including church groups close to the Williams family _ want hate crimes charges filed, either at the state or federal level. U.S. Attorney Charles T. Miller has said he doesn't currently plan to file civil rights charges, while Abraham said he may file new or amended charges in the days to come. |
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State high court to review ruling on churches
Breaking Legal News |
2007/09/13 08:56
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The California Supreme Court has voted unanimously to review a recent appeals court ruling that the Episcopal Diocese of Los Angeles is the owner of the buildings, prayer books and other property of several conservative congregations that broke away from the diocese in 2004. The court announced Tuesday that it would take up the closely watched case, which involves St. James Church in Newport Beach, All Saints in Long Beach and St. David's in North Hollywood. The three parishes had pulled out of the diocese and the national Episcopal Church because of differences over biblical authority and interpretation, including the Episcopal Church's decision in 2003 to consecrate an openly gay priest as bishop of New Hampshire.
The churches placed themselves under the authority of a conservative Anglican bishop in Uganda. The diocese sued, arguing that the congregations' property was held in trust for the diocese and the Episcopal Church as a whole.
Trial courts had ruled for the three parishes but in June, a panel of the 4th District Court of Appeal in Santa Ana reversed those decisions.
Diocesan attorney John R. Shiner said Tuesday he was confident that the state Supreme Court would affirm the appellate court's decision, which was unanimous.
Eric Sohlgren, lead attorney for St. James, said he was encouraged by the high court's decision to review the case, and said it could affect trial proceedings for other churches embroiled in similar property disputes.
"We think it's an important step toward calming the legal turmoil created by the appellate court decision," Sohlgren said. |
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Court puts hold on Qualcomm import ban
Breaking Legal News |
2007/09/13 08:51
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South Korean handset makers on Thursday welcomed a US appeals court ruling that halted an import ban on mobile phones containing Qualcomm’s 3G chipsets, a legal victory in the chipmaker’s patent dispute with rival Broadcom. The court’s stay, pending appeal, would allow third parties including LG Electronics, Motorola, Samsung Electronics, Sanyo and AT&T to import certain handsets into the US. Samsung and LG are key Qualcomm customers and were seen as the most likely victims of the ban announced in June. But the companies said that their US business had so far not been affected by the ban, which was supposed to take effect from this month. Both groups had been making alternative supply arrangements. LG, which has heavy exposure to the US CDMA market, said: ”The ban might have depressed the whole US handset market.” Samsung also welcomed the ruling. The news drove LG’s shares up 4.25 per cent to Won76,100 and Samsung’s 0.36 per cent to Won562,000, while the broader market closed up 1.9 per cent yesterday. On Wednesday, a judge in Washington agreed that the third parties had demonstrated ”a substantial case on the merits and the harm factors weigh[ed] in their favour”. LG shipped 37 per cent of its total handset sales to the US last year. It sold 64m units of handsets last year and controls 15.2 per cent of the US market. Samsung sold 27 per cent of its total handset sales, which amounted to 37.4m units, in the US in the second quarter, according to Nomura International. The International Trade Commission on June 7 imposed the ban after finding that Qualcomm had infringed a Broadcom power-saving patent. The two sides have been unable to reach agreement on compensation out of court. Alex Rogers, legal counsel for Qualcomm, said: ”We are pleased that the court of appeals recognised the undeserved harm to parties who were not named in the lawsuit, and that our customers will continue to be able to introduce new products into the US marketplace during the appeals process.” Qualcomm’s technology is included in all 3G handsets, meaning that a full ban on cellphones carrying its chips might potentially have hampered the take-up in the US of the next generation of wireless technology. In February, LG, which has strength in the 3G business, won a contract from GSM Association to supply a low cost handset for 3G mobile phone networks under the banner ”3G for All”. |
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Craig files papers in attempt to reverse guilty plea
Breaking Legal News |
2007/09/12 07:08
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Sen. Larry Craig has filed papers to withdraw his guilty plea in an airport sex sting, arguing that he entered the plea under stress caused by media inquiries into his sexuality. But a spokesman for the agency that operates the airport said Craig's plea has been entered and accepted - and, in his words, "From our standpoint, this is already a done deal." The Republican Idaho Senator pleaded guilty in August to disorderly conduct following a sting operation in a men's bathroom at the Minneapolis airport. He said he regrets that decision and made it hastily and without talking to an attorney. He says he was under stress and pleaded guilty only to put the matter behind him. Attorney William Martin specifically cited "tremendous pressure" from journalists as the reason for the guilty plea. Martin said he's arguing that his client was under extreme stress from reporters hounding him about his sexuality. Martin mentioned The Idaho Statesman by name, the Boise newspaper that spent months investigating whether Craig engaged in homosexual encounters. Craig has flatly denied those suggestions on numerous occasions. In his first address to the public after the political journal Roll Call broke the story of the Minneapolis sting, Craig accused the newspaper of conducting a "witch hunt." His chief spokesman said that Craig has dropped virtually all notions of trying to finish his third term in the Senate, but the Senator has shown signs of wavering on his announced plan to resign from the Senate at the end of September. The documents filed Monday aim at undoing Craig's earlier decision to plead guilty to the lewd conduct charges in order to give him a chance to fight the accusations. According to court documents, the senator "felt compelled to grasp the lifeline" - hoping that if he were to submit to an interview and plead guilty that none of the allegations would be made public.
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States Ask for 5 Year Extension of Microsoft Judgment
Breaking Legal News |
2007/09/11 23:03
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A group of state plaintiffs in the U.S. Microsoft antitrust case will ask for a five-year extension of a large portion of the 2002 judgment aginst the company, the group's lawyer said Tuesday. California, Connecticut, Iowa, Kansas, Minnesota, Massachusetts and the District of Columbia -- known as the "California group" -- want an extension of most of the middleware portions of the judgement, said Stephen Houck, a lawyer for the group. Microsoft still retains a huge lead in the operating system and Web browser markets, he said. "Microsoft continues to have a stranglehold over the two products ... that nearly all consumers use," Houck said during an antitrust compliance hearing in U.S. District Court for the District of Columbia. "Very little has happened in five years ... in those markets." The California group of states -- the larger of two groups of states that sued Microsoft for antitrust violations -- will ask for an extension of all the middleware portions of the antitrust judgement, except for a section that governs the royalties Microsoft can charge PC manufacturers for the Windows operating system. Most of the antitrust judgment was scheduled to expire in November. Microsoft lawyer Rick Rule said the company would need time to respond to Houck's proposal. Microsoft first heard of the plan to ask for an extension on Friday, he said, and the California group plans to file a formal extension request with the court in mid-October. Rule seemed to suggest Microsoft would fight the five-year extension. U.S. District Court Judge Colleen Kollar-Kotelly declined to impose a 10-year judgment in 2002, he said. "We think the picture of the computer industry is much rosier," Rule added. "We think it's clear that the decree has done its job." Microsoft spokesman Jack Evans said the company will respond in more detail after it has seen the extension request. "We're a bit surprised that a few states are now requesting an extension of the consent decree, since they indicated just last month that they're not too fond of it," Evans said. In August 2006, Microsoft already agreed to an extension of the section of the judgment requiring it to make its communications protocols available to other software vendors. Microsoft's efforts to fix technical documentation for the protocols have run into several delays. Houck on Tuesday asked Kollar-Kotelly to extend the communications protocol section of the judgment until 2012. The California group does not "have any confidence" Microsoft will continue to improve the communications protocol program without oversight, Houck said. An independent auditor's report just issued questions whether Microsoft has released all the protocols mandated in the judgment, he added. The California group's extension proposal comes after the U.S. Department of Justice and the New York group of states filed briefs last month saying the antitrust judgment has done its job. "There have been a number of developments in the competitive landscape ... that suggest that the Final Judgments are accomplishing their stated goal of fostering competitive conditions among middleware products, unimpeded by anticompetitive exclusionary obstacles erected by Microsoft," said the report from the DOJ and New York group, which includes five states. But Houck Tuesday disputed that assessment. At the time of the judgment, a handful of PC vendors were preinstalling a competing Web browser on PCs, he said. Today, no major ones are, he said. |
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Class action or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued. This form of collective lawsuit originated in the United States and is still predominantly a U.S. phenomenon, at least the U.S. variant of it. In the United States federal courts, class actions are governed by Federal Rules of Civil Procedure Rule. Since 1938, many states have adopted rules similar to the FRCP. However, some states like California have civil procedure systems which deviate significantly from the federal rules; the California Codes provide for four separate types of class actions. As a result, there are two separate treatises devoted solely to the complex topic of California class actions. Some states, such as Virginia, do not provide for any class actions, while others, such as New York, limit the types of claims that may be brought as class actions. They can construct your law firm a brand new website, lawyer website templates and help you redesign your existing law firm site to secure your place in the internet. |
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