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Cablevision appeals network DVR ruling
Breaking Legal News | 2007/04/10 10:01

Cablevision Systems Corp. appealed on Tuesday a federal court ruling that blocked the New York-area cable TV provider's rollout of a next-generation digital video recorder service. Cablevision sought an expedited review of the case before the 2nd U.S. Circuit Court of Appeals, claiming that the U.S. District Court ruling in New York last month misapplied copyright law to its remote-storage digital video recorder, or DVR.

Cablevision's case has been closely watched in the cable TV industry. If allowed to proceed, the remote-storage DVR could allow companies like Cablevision to dramatically increase the rate at which they introduce digital video recording services to their customers.

DVRs allow cable TV subscribers to record TV programs without the hassles of videotape, letting users pause live TV, do instant replays and begin watching programs even before the recording has finished. Viewers can also skip through commercials, something that worries the TV industry.

Cablevision's system would have allowed any cable subscriber with a digital cable box to have DVR-like service by storing and playing back shows on computer servers maintained by Cablevision.

That could allow Cablevision to offer the service to many more customers without having to install the expensive hard drive-equipped DVR boxes in each home, as is currently the case.

A group of Hollywood studios successfully sued Cablevision, claiming that the remote-storage system would have amounted to an additional broadcast of their programs, something for which they haven't given permission.

Cablevision argued its service was permissible because the control of the recording and playback was in the hands of the consumer. A landmark 1984 Supreme Court case found that Sony Corp. wasn't breaking copyright laws if home viewers used Sony's Betamax videotape recorders to record and play back shows for personal use.

"We continue to believe strongly that remote-storage DVR is permissible under current copyright law and offers significant benefits to consumers, including lower costs and faster deployment of this popular technology to our digital cable customers," Tom Rutledge, Cablevision's chief operating officer, said in a statement.



Judge Nixes Conrad Black Mistrial Motion
Breaking Legal News | 2007/04/09 17:55

Judge Amy St. Eve of the US District Court for the Northern District of Illinois denied a motion Monday for a mistrial in the prosecution of Canadian-born former media mogul Conrad Black on fraud charges. John Boultbee, a former associate of Black and his current co-defendant, requested a separate trial from Black in addition to the motion for a mistrial in Black's case. Both pleas were rejected.

Boultbee, the former CFO of Hollinger International, stands accused of illegally diverting more than $80 million from Hollinger and its shareholders during Hollinger's $2.1 billion sale of several hundred Canadian newspapers. Two years ago, Boultbee joined Black, former legal executive Mark Kipnis, and former VP Peter Atkinson in pleading not guilty to fraud charges. A fifth defendant, former Hollinger President David Radler, pleaded guilty to the charges and agreed to testify for the government.



Vonage Wins Temporary Reprieve in Verizon Case
Breaking Legal News | 2007/04/09 09:54

Vonage won a temporary reprieve from an appeals court on Friday, hours after a lower court barred it from adding new customers while it appeals a finding it infringed Verizon Communications Inc. patents for making phone calls over the Internet.
"We just learned, just now, from our legal counsel that we secured a temporary stay until the appeals court can hear our request for a permanent stay of that order," said Vonage Holdings Corp. spokeswoman Brooke Schulz.

U.S. District Judge Claude Hilton had limited Vonage to serving its existing customers. He also required Vonage to post a $66 million bond.

The stay is good until the U.S. Court of Appeals for the Federal Circuit hears Vonage's request for a permanent stay of Hilton's injunction.

However, it does not mean that Vonage will necessarily be able to continue its business as usual for the length of the appeals process.

An industry analyst, who said Vonage's business would face problems if the company could not add new customers while appealing the case, said the temporary stay was "unnecessary technically," as Hilton was not expected to enter his ruling until Thursday, April 12.



Benzene Case Taken to U.S. Supreme Court
Breaking Legal News | 2007/04/08 09:11

A lawyer urges the U.S. Supreme Court to reverse the state Supreme Court ruling that barred her Alabama client from suing the manufacturers of a chemical he blamed for causing his rare form of leukemia. Jack Cline died in January of acute myelogenous leukemia. Until retiring in 1995, he worked with benzene for 37 years for a company that made railroad wheels.

Cline tried to sue Ashland Inc., Chevron Phillips Chemical, and ExxonMobil Corp., which produced the benzene he believed caused his disease. The judge presiding over the case ruled in favor of the defendants, stating that Cline waited too long to sue.

The judge’s ruling was based on a 1979 precedent that held that the two-year statute of limitations begins on the date of the last incidence of chemical exposure.

In Alabama, another precedent allows lawsuits only by persons who can show “manifest harm” or demonstrable injury. But because Cline’s illness was not diagnosed until 1999—four years after his last exposure—there was no allowable time period during which he could have sued, according to both precedents.

Cline’s lawyer, Leslie Brueckner, is arguing that the state ruling violated the 14th amendment, denying Cline due process of law.

If the U.S. Supreme Court accepts the case, oral arguments should begin sometime in the fall or winter.



Justice Department Aide Monica Goodling Resigns
Breaking Legal News | 2007/04/07 11:07

Monica M. Goodling, one of the key aides who took part in planning the firings of eight US Attorneys who was formerly on voluntary leave from her post as special counsel to the US Attorney General, submitted her resignation without cause Friday. Goodling's resignation, effective Saturday, is the third by a Department of Justice official involved in the controversy. On Tuesday, Goodling told the House Judiciary Committee that she would not speak to the committee about her role in the firings, and stated through her lawyer, John Dowd, that she would seek protection under the Fifth Amendment if the committee issued her a subpoena.

Documents and records released by the DOJ in late March show that Goodling participated in multiple meetings planning the firings over a period of 12 months. Goodling was also involved in a April 6, 2006 telephone conversation with Sen. Pete Domenici (R-NM). Domenici had complained to the Bush administration concerning the speed of former Albuquerque US Attorney David Iglesias' investigation of local Democrats before the November 2006 elections. Dowd characterized any questioning of his client a "perjury trap" while citing the recent conviction of Lewis Libby in the CIA leak case.

On Monday, Sen. Patrick Leahy (D-VT), chair of the US Senate Judiciary Committee, rejected attempts by the Bush administration to move up the date that US Attorney General Alberto Gonzales is scheduled to testify. In March, Kyle Sampson, former chief of staff to Gonzales, who had resigned, told the Senate Judiciary Committee that the prosecutors were fired for political reasons rather than for poor performance as the Justice Department has claimed.



Suspect in Home Depot slaying pleads not guilty
Breaking Legal News | 2007/04/06 15:25

Jason Russell Richardson pleaded not guilty Friday to shooting and killing Tom Egan, a night manager at the Tustin Marketplace Home Depot, while robbing the store Feb. 9.

In a court appearance that lasted just seconds, Richardson, a convicted rapist who had been out on parole for spousal abuse, stood shackled and chained as he entered his plea through his attorney, Hector M. Chaparro of the county's Associate Defender's Office.

"That's good," Richardson, 36, said when Orange County Superior Court Judge Kazuharu Makino asked Richardson if June 11 would work for a preliminary hearing – when a judge decides if prosecutors have enough evidence to take their case to trial. Richardson could get the death penalty if convicted.

Egan, a 40-year-old father of twin girls, was shot once in the abdomen when he tried to stop a man dressed in painter coveralls, dust mask and yellow construction helmet from robbing his store. Egan, who stayed on hours after his shift had ended, begged the man to leave the store and not to hurt anyone, police said.

Egan pleaded with the man to leave as he grabbed wads of cash from the register. The heavily disguised man turned and shot him once. Surveillance tape shows the shooter stepping over Egan's body as he walked out of the store. He got away with about $500.

Egan died a short time later at a hospital.

A massive manhunt was on for the shooter. Less than two weeks later, Tustin police arrested Richardson, 36, in Oceanside when he went to check in with his parole officer. Digitally enhanced surveillance video led investigators to a dirty sock dropped inside the Home Depot. Forensic scientists matched DNA from the sock to a DNA sample Richardson was forced to give after his 1992 rape conviction.

At a Feb. 23 news conference announcing Richardson's arrest, Tustin police said Richardson had been convicted of sexual assault on a child. In fact, Richardson pleaded guilty to burglary, rape and forced oral copulation and was sentenced to six years in prison. In 2002, he was sentenced to four years for spousal abuse.



Judge blocks Vonage from adding new customers
Breaking Legal News | 2007/04/06 12:15

Vonage Holdings Corp. cannot add new customers while it appeals a finding that it infringed Verizon Communications Inc. patents for making phone calls over the Internet, a federal judge ruled on Friday. Vonage plans to appeal U.S. District Judge Claude Hilton's order that allows Vonage to only provide service to existing customers. Vonage is also required to post a $66 million bond.

Hilton said Vonage could be irreparably injured if he completely barred its use of Verizon technology. "Some question whether they could stay in business," he said.

However, the judge said Verizon would be injured if Vonage was completely free to continue infringing the patents.

A lawyer for Vonage, Roger Warin, told the court the ruling was a "slow strangling" of the company. The difference between a partial stay or a total prohibition on using the technology amounted to "cutting off oxygen or a bullet to the head," he said.

Hilton is expected to sign his order next Thursday. Vonage is then free to take the case to the U.S. Court of Appeals for the Federal Circuit, which specializes in patent cases.

U.S. equities markets were closed for the Good Friday holiday. Vonage shares closed down almost 7 percent on Thursday to $3.37 on the New York Stock Exchange ahead of the court hearing. Verizon shares rose 1 percent to $38 on the NYSE.

Rebecca Arbogast, an analyst with Stifel Nicolaus, said Hilton's order was a blow to Vonage. "If they can't get new customers (while they appeal the case), I think it's going to be tough to attract capital."

Hilton announced on March 23 that he intended to issue an injunction blocking all use of Verizon's technology, sending Vonage shares down nearly 26 percent that day.

The judge gave Vonage two weeks to try to convince him to stay the injunction. Verizon then suggested the judge allow Vonage to keep servicing its existing customers if a stay was necessary.

Earlier in March, a jury found Vonage had infringed three patents owned by Verizon. The jury said Vonage must pay $58 million, plus 5.5 percent royalties on future sales.

Vonage stock has steadily lost value since its initial public offering at $17 a share in May last year. The shares posted an all-time closing low of $3 after Hilton's March 23 hearing.



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