Philips threatened liability for patent infringement for any company selling, buying or trading optical discs from unlicensed replicators. Company administers licensing and royalty collection for optical disc patents it and partners own. In Dec. 10 letter, Philips said some replicators remained unlicensed and were infringing on patents, and in some cases were falsifying records and underpaying royalty. It said those replicators were candidates for litigation and product seizure, but it had legal right to collect royalties and damages from any company that had bought or traded infringing products -- even if that party wasn’t aware of supplier’s licensing and royalty status. Letter also said those knowingly purchasing unlicensed discs could be found guilty of willful infringement, with courts assessing treble damages. That would raise royalty to 9? from 3? on CDs, and to 15.9? from 5.3? on DVDs. Letter asked recipients to check Philips Web site for list of licensed replicators (www.licensing.philips.com) or to contact Philips at locations listed on Web site, and to demand suppliers document status of their licensing and royalty payments. On June 25, Philips filed patent infringement charges against 19 replicators and trading companies in U.S.
Red-letter day arrives soon for 321 Studios (321) and its lawsuit vs. content owners in federal court on legality of company’s DVD copying programs. Meanwhile, in follow-up to our report last week on efficacy of DVD X Copy software, we have learned from further testing how $99.99 program works -- and how it seeks to avoid violating anticircumvention provisions of Digital Millennium Copyright Act (DMCA).
Sampling of prefiled bills for 2003 state legislatures shows advanced services, telemarketing, consumer disclosure, spam, slamming and wireless services to be among concerns facing states’ lawmakers next year.
Top Nextel official said there was “no consensus plan” for reconfiguring 800 MHz to fix public safety interference if replacement spectrum at 1.9 GHz were taken off table. By Thanksgiving, carrier plans to address “completely” private wireless retuning costs that stem from proposed rebanding, Nextel Chief Regulatory Officer Robert Foosaner told Industrial Telecom Assn. (ITA) Private Wireless Summit Fri. While Nextel pledged $500 million to relocate public safety element, questions on remaining costs of plan are among thornier sticking points awaiting answers.
In latest development in legal battle between Microsoft and Lindows.com, latter said Tues. it had filed motion for summary judgment. In May, Microsoft lost its appeal to block San Diego software company from calling itself Lindows.com and its Linux- based programs LindowsOS (CED May 20 p2). Microsoft’s original complaint charged Lindows with trademark infringement and unfair competition under Latham Act. Software giant argued that use of names Lindows.com and LindowsOS traded off goodwill of Windows trademark to distinguish its products from competing products. In 7-page decision in May, U.S. Dist. Court, Seattle, Judge John Coughenour said his March 15 ruling denying Microsoft request to shut down Lindows was appropriate despite Microsoft’s claims to contrary. Coughenour had said in March that “at most, Microsoft has raised serious questions about the validity of its trademark, but has fallen short” of showing Lindows.com should be prevented from using names as part of its business. In latest motion filed by Lindows, company contended that, since late 1970s, graphical user interfaces had been referred to as “windows programs,” “windowing interfaces,” “windowing systems,” “window managers.” Lindows said it had “investigated the matter further, taken depositions of current and former Microsoft employees, and gathered additional evidence to establish conclusively the terms’ generic usage during the critical 1980-1984 period.” Lindows said “for the purpose of this motion and for the remainder of the case, Microsoft is no longer entitled to the statutory presumption of validity [and] Microsoft now has the burden or proving that the Windows mark falls into a protectable category.” Microsoft comment was unavailable by our deadline. Separately, Lindows said it had signed deal with U.K. PC maker Evesham Technology to bundle LindowsOS on latter’s computer systems in Europe.
FCC should consider revoking all of WorldCom’s wireless licenses and Sec. 214 authorizations for lack of “good character and candor,” American Enterprise Institute fellow Gregory Sidak said in speech Oct. 1 at Royal Society of Arts in London that was made available in U.S. Mon. WorldCom’s accounting fraud “poses a serious question for telecommunications regulators,” said Sidak, former attorney at FCC. “By statute, wireless licensees must have ‘character’ as a basic qualification” and company doesn’t have to engage in criminal behavior to be deemed lacking in character, he said. In addition, “WorldCom’s accounting fraud also destroys the company’s credibility in proceedings before regulatory commissions and courts,” Sidak said. Therefore, FCC and other govt. bodies -- state regulatory commissions, federal courts, Justice Dept. Antitrust Div. and U.S. Trade Representative -- also should issue notices “to show cause why pleadings or comments filed by WorldCom should not be stricken,” Sidak said. If FCC stripped WorldCom of its licenses and certifications, company probably would be forced into Chapter 7 liquidation but regulators should resist temptation to give company another chance, he said: “In WorldCom’s case, a second chance holds little promise. Its brand name is probably worthless because of the taint of fraud and its most capable managers probably already jumped ship... Keeping WorldCom on life support would worsen the tragedy.” -- http://papers.ssrn.com/sol3/delivery.cfm/SSRN_ID335180_code02 1001500.pdf?abstractid=335180.
Next 2 weeks will see multiple hearings on Capitol Hill related to copyright and CE issues, despite impending end of 107th Congress. It will shut down no later than 3 weeks from now, possibly to return for lame-duck session after Nov. elections, but perhaps not in any concrete way until Jan. if long-term continuing resolution is passed. That isn’t stopping lawmakers from holding hearings on bills they want to promote, although in almost every case their push won’t have any payoff until next Congress. As many as 4 hearings in next few weeks will deal with digital rights management (DRM), including online peer-to-peer (P2P) file-sharing, DTV copy protection.
DirecTV filed suit against 2 NDS subsidiaries in U.S. Dist. Court, L.A., for alleged misappropriation of trade secrets, breach of contract, fraud and statutory violations relating to provision of conditional access services to DirecTV, NDS said. Suit seeks unspecified damages and injunctive relief. Allegations are similar and related to complaint in earlier DirecTV action against NDS in case that was dismissed in Feb. NDS said allegations were without merit and were pretext designed to enable DirecTV to circumvent restrictions on DirecTV’s future use of NDS’ intellectual property.
AT&T and Comcast announced Tues. that key deadline had passed on their proposed cable merger without action by Justice Dept., indicating deal had won Justice approval by default, but DoJ officials said companies should hold off on celebrating. Agency still could step in at any time until investigation was officially completed, they said. They said they hoped that would be soon, but until then, and until FCC approved merger, transaction couldn’t go forward.
Gearing up for new round of retransmission consent talks, to begin Oct. 1, small cable operators say they're ready to take on broadcast networks at FCC and in Congress. American Cable Assn. (ACA), in FCC filing that’s still in draft form, is asking Commission to initiate either inquiry or rulemaking investigating tactics major broadcast networks have used in securing retransmission consent from small cable operators in each of last 3 rounds of retransmission consent talks, in 1999, 1996 and 1993. ACA board also is drafting proposed legislation to address retransmission consent and other issues small operators believe are driving up monthly cable bills and giving consumers fewer viewing choices. ACA has been in touch with Sen. McCain (R-Ariz.) and others in House and Senate about those issues and believes legislation will be introduced this year, officials said.