Sony Computer Entertainment (SCE) Australia said it was “considering whether to appeal the decision” against it Fri. by Justice Ronald Sackville of Federal Court, Sydney. As we reported Mon., Sackville ruled that Sony had failed to prove defendant in case -- Eddy Stevens of Sydney -- had violated Fair Trading Act or Copyright Act by distributing and installing modification chips (mod chips) in PlayStation game consoles (CED July 29 p8).
Minn. PUC hearings on allegedly secret and preferential agreements between Qwest and selected CLECs are to resume next month. PUC Administrative Law Judge Allan Klein plans hearings Aug. 6-8 to examine additional unfiled oral agreements that Minn. Dept. of Commerce in June said it had uncovered. New agreements differed from those that already were part of case record, Commerce said, and would shed further light on allegations. New discoveries caused original procedural schedule to be suspended. Commerce in Feb. filed complaint (Case P-421/C-02-197) alleging Qwest made secret deals with certain CLECs, giving them preferential rates and terms in return for CLECs’ dropping their opposition to Qwest regulatory initiatives such as its merger with U S West and its Sec. 271 interLATA long distance entry bid. Qwest denied improper conduct, saying agreements at issue didn’t have to be filed because they dealt with dispute settlements and administrative mechanics. Qwest had petition pending at FCC asking whether its interpretation of filing laws was correct. Final Minn. briefing cycle will conclude around end of Aug., with ALJ’s recommended decision expected in mid-Sept. In related matter, Minn. Dist. Court, Ramsey County, is to hold July 26 hearing on Qwest motion seeking information from Minn. Commerce Dept. about its relationships with AT&T. Qwest charges that state Commerce Dept. has been biased toward AT&T in major cases involving Qwest. It submitted data request to Commerce in March under state’s open govt. law but said agency hadnt responded fully, say many requested documents contained proprietary trade secrets, so Qwest filed suit in May to compel disclosure. Qwest said Commerce then changed grounds for withholding documents, saying they related to active investigation as well as containing trade secrets. Qwest said Commerce had taken positions that deprive carrier of its statutory right-to-know basis for Commerce’s adverse positions against Qwest in at least 2 major cases. First was 2001 case in which AT&T alleged Qwest had violated interconnection agreement by not allowing AT&T to test Qwest’s unbundled network element platforms. That case ended in May with Qwest being fined $900,000. Second case was Feb. complaint by Commerce about unfiled Qwest interconnection agreements.
Bose filed complaint with U.S. International Trade Commission (ITC) seeking investigation and ultimately ban on import of radios and clock-radios sold by promotional specialty goods marketer, alleging they were “copycat” knockoffs that infringed on Bose registered trademark (2,299,158) for uniquely configured Wave radio. Attorney for Commerce, Cal.-based marketer, Sun Coast Merchandise Corp., responded that company planned vigorous defense against Bose charges, at least partly on ground that 2 U.S. design patents it held on “Curve” radio products gave it right to continue selling them.
Microsoft is trying to get govt. to bar 2 unlicensed Xbox accessories from U.S. market. At issue are videogame system selector X-Selector and X-Connection dual shock controller from Ultimate Game Club (UGC), based in Old Saybrook, Conn. As we first reported late last month, Fish & Richardson law firm, acting on Microsoft’s behalf, filed complaint with U.S. International Trade Commission seeking investigation of UGC for alleged violations of Sec. 337 of 1930 Tariff Act (CED June 25 p2).
Blockbuster is seeking to recover up to $250,000 from video rental dealers that filed antitrust suit against it. Following U.S. Dist. Judge Edward Prado’s June 27 decision that dismissed suit and ended trial in San Antonio, Blockbuster Gen. Counsel Edward Stead said rental chain would move to recover some court costs from 49er Video, Sacramento; Lone Star Video, San Antonio; The Big Picture Video, Rome, N.Y. Fees are charged for each motion and submission filed with court and federal rules allow defendants to attempt to recover those costs from plaintiffs. Blockbuster and Hollywood studios spent several million dollars on their defense, Stead said. Chances of recovering costs may be slim. Lone Star Video and 49er Video have closed some or all of their stores since 1997, while Big Picture is operating under bankruptcy protection. Whether Blockbuster is successful in recovering costs could have impact on similar case filed by 200 independent video rental dealers in Cal. Superior Court. Trial date for Cal. case hasn’t been set. Meanwhile, some dealers are questioning VSDA Pres. Thomas Warren’s N.C.-based Video Hut chain’s revenue-sharing agreement with Universal Studios. Video Hut signed agreement with Universal in Jan. 2000, capping 5 months of negotiations, and did so in order to compete with Blockbuster in terms of VHS copy depth, trade reports quoted Warren as saying. Warren’s comments followed heated discussion on VSDA message board that questioned whether Video Hut received revenue-sharing agreement because of Warren’s position in VSDA, reports said. Warren said idea that he would use VSDA position to win gain for his chain is “abhorrent” to him.
WorldCom’s financial scandal could have repercussions on entire communications industry and how it’s regulated, said Washington policymakers, analysts and others who follow sector. FCC Comr. Copps said scandal “should give us some pause at the Commission before we rely fully on [corporate] data” when reviewing applications for mergers and other financial changes. It might be better for FCC to do its own analysis, he said. One industry lobbyist warned that companies would have tougher time getting deregulatory action on Hill, for example broadband relief sought by Bell companies through measures such as Tauzin-Dingell, because Congress was expected to become much tougher on corporations in general. Randolph May, senior fellow at Progress & Freedom Foundation, said he had hoped WorldCom’s problems wouldn’t lead to backlash against deregulation because bankruptcy was “about accounting practices and human frailties, not regulatory policy.”
Gemstar was dealt serious setback late Fri. when ITC administrative law judge ruled that 3 of its patents for on-screen interactive program guides weren’t infringed. Judge Paul Luckern found that “no domestic industry” exists for patents, thus allowing EchoStar, Pioneer and Scientific-Atlanta (SA) to continue importing satellite receivers and cable set-top boxes. EchoStar, SA, and Pioneer all designed own IPGs for STBs and Gemstar filed complaint with ITC in 2001 seeking to block import of STBs it said had IPG that infringed on its patents.
Defiant executives at Gemstar TV Guide International vowed Mon. that their company would “ultimately prevail” in its patent dispute despite ITC administrative law judge’s June 21 finding that 3 of its patents covering interactive program guides (IPGs) hadn’t been infringed upon. Gemstar Gen. Counsel Jonathan Orlick said while Judge Paul Luckern ruled that EchoStar, Pioneer and Scientific-Atlanta (SA) could continue importing satellite receivers and set-top boxes, finding was “only initial step” in legal battle that’s likely result in case ultimately moving to U.S. Appeals Court, D.C.
Intellectual property developer InterTrust said Mon. it was “substantially broadening” patent infringement suit filed last year against Microsoft on Xbox videogame consoles and other key products. Santa Clara-based InterTrust said it added 4 new patents to suit, more than doubling number of claims involved in case to 11 patents, 144 claims and “over 190 separate infringement scenarios.” InterTrust said it was seeking injunction against various Microsoft products, including Xbox, Windows XP, Office XP, Microsoft.NET and Windows Media Player as well as compensatory and punitive damages. Microsoft couldn’t be reached for comment by our Mon. deadline.
CE industry and investment community were awaiting preliminary decision by ITC judge in Gemstar-TV Guide International patent case that was believed imminent late Fri. (after our deadline) and was likely have future bearing on how interactive program guide (IPG) technology would be commercialized. ITC Administrative Law Judge Paul Luckern, who postponed earlier March deadline for decision, was to rule in case in which Gemstar claimed that EchoStar, Scientific-Atlanta (SA) and Pioneer had violated its patents for IPG and was likely determine whether company built momentum or suffered blow to status as key supplier of IPG technology. Luckern’s ruling will set stage for ITC to complete investigation by Sept. 23.