Overlawyered: Chronicling The High Cost Of Our Legal System

Posts Tagged ‘technology’

Doe v. MySpace lawsuit dismissal affirmed

In May 2006, 14-year-old Texas girl “Julie Doe” listed herself as 18 on her MySpace profile (so she could circumvent the site’s child safety features) and snuck out of her house to surreptitiously meet with a boy she met on MySpace the previous month. Unfortunately for her, the boy was also lying; Pete Solis was not a high-school athlete, but a 19-year-old that (allegedly) raped her. (Solis claims the sex was consensual and that he didn’t know about the illegal age difference, though knowledge ususally isn’t a defense in statutory rape cases.)

The family blamed MySpace and sued in multiple jurisdictions, omitting Solis from the most recent iteration of the suit. The suit was dismissed under the website hosting immunity protections of the Communications Decency Act; and Friday, the dismissal was affirmed by a unanimous panel of the Fifth Circuit (via Childs). We covered the suit in detail in 2006; for that, and other MySpace litigation, see our MySpace tag.

In April, Solis pleaded guilty to reduced charges of felony injury to a child, and will serve 90 days over the course of five years, and will register as a sex offender. (Jen Biundo, “Buda teen gets 90 days in jail, seven years on sex offender list”, The Free Press (Buda), April 23). His attorney? Adam Reposa, known for other reasons. One presume’s Solis’s even more ludicrous lawsuit against MySpace has met a similar fate.

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“Require that employees get permission first before using their BlackBerrys after work hours”

Otherwise, the employer may just be setting itself up for wage-hour suits based on the premise that the after-hours use constitutes uncompensated overtime, says Mitch Danzig, “an attorney in the San Diego office of Boston-based Mintz, Levin, Cohn, Ferris, Glovsky and Popeo. Danzig advises his clients to give BlackBerrys only to employees who are exempt from overtime laws. ‘Plaintiffs’ firms are trolling for this,’ he said. ‘Now what you’re seeing on [plaintiffs’] firms’ Web sites are, “Have you been assigned a BlackBerry or a phone? If so, give us a call.”‘” (Ashby Jones, WSJ law blog, Apr. 22; Tresa Baldas, NLJ, Apr. 28). More: Jeffrey Hirsch, Workplace Prof Blog.

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“Doomsday fears spark lawsuit”

“The builders of the world’s biggest particle collider are being sued in federal court over fears that the experiment might create globe-gobbling black holes or never-before-seen strains of matter that would destroy the planet. … The Large Hadron Collider, or LHC, is due for startup later this year at CERN’s headquarters on the French-Swiss border.” Among the concerns of critics who are suing in federal court in Hawaii: “Could quarks recombine into ‘strangelets’ that would turn the whole Earth into one big lump of exotic matter?” (Alan Boyle, CosmicLog, MSNBC, Mar. 27; Dennis Overbye, “Asking a Judge to Save the World, and Maybe a Whole Lot More”, New York Times, Mar. 29).

More: Sundries Shack (“For goodness sake, one of the plaintiffs calls himself an ‘author and researcher on time travel'”); Adler @ Volokh. The liberal site Lawyers, Guns & Money, perhaps serving in this instance as a Strange Attractor, attracts a commenter who seems to agree with the lawsuit-filers that it’s better to be safe than sorry — the Precautionary Principle lives! And from our comments, links to the complaint, Ted on jurisdiction, and thoughts on the effectiveness of litigation in obtaining free publicity.

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Blogs I wish I read more frequently: Patent Troll Tracker

Just as I was about to say I needed to revise my top-ten blog list to include the excellent anony-blogger Patent Troll-Tracker, I learned from today’s Recorder and WSJ that he has revealed himself as Rick Frenkel, Cisco IP attorney.

When I started the blog, I did so mainly out of frustration. I was shocked to learn that a huge portion of the tech industry’s patent disputes were with companies that were shells, with little cash and assets other than patents and a desire to litigate, and did not make and had never made any products. Yet when I would search the Internet for information about these putative licensors, I could find nothing. I was frustrated by the lack of information, and also by the vast array of anti-patent-reform bloggers out there, without a voice supporting what I did believe and still believe is meaningful reform.

(For the record, I liked the blog even before they praised me.) Plaintiffs’ attorney Ray Niro had put a bounty on the identity of the Troll Tracker, who had been critical of Niro’s tactics (as have Walter and I). Frenkel is considering shutting down his blog now that he is out of the closet; one hopes someone else picks up the torch, because he was performing a valuable service, to the extent that I had limited my blogging about it because he had the subject-area covered so well.

I missed the debate in November among Dennis Crouch, Michael Smith, and Frenkel on whether the Eastern District of Texas is “waning” as a magnet jurisdiction for patent plaintiffs (May 2006, Dec. 2005, Jan. 2005), or I might have made reference to it in my latest Liability Outlook on patent reform. Frenkel seems to have the best of that debate, and follows up:

Let’s highlight one really outstanding statistic from November: The number of defendants sued in the Eastern District of Texas in November 2007: 244. The number of defendants sued in Los Angeles, San Francisco/Silicon Valley, New York City, Chicago, Delaware, and New Jersey combined in November 2007: 162.

Patent lawyers often seem to be of a different stripe than other lawyers, and there is a similar patent-law-blogging community largely separate from the other law-bloggers. The commenters go mad at Crouch’s blog over the Frenkel revelation because Cisco is a strong patent reform supporter. Elsewhere: IPBiz; TechDailyDose; NetworkWorld; 271Blog; Mises Blog; and the anti-reform Patent Prospector.

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The Patent Reform Act of 2007

My latest Liability Outlook is on the Patent Reform Act of 2007:

Despite some in the media calling patent reform dead, on January 24, 2008, the Senate placed S. 1145, the Patent Reform Act of 2007, on the general calendar. The next few weeks will be critical to the legislation, which the House passed in September. Although much of the discussion has focused on the different perspectives and concerns that the high tech and the biotech/pharma industries have about the legislation, the fact remains that the patent litigation system is broken. Congress should make every effort to fix it by writing into this legislation reasonable formulas for damage awards and venue rules that discourage forum-shopping. …

Affiliates of Erich Spangenberg’s Plutus IP have sued 476 different defendants in 42 lawsuits. The vast majority of those lawsuits allege infringements of patents that Plutus IP purchased for $1,000. The use of invalid patents in litigation is more than theoretical. Philip Jackson sued his attorneys, Chicago plaintiffs firm Niro, Scavone, Haller & Niro, for malpractice after his $12.1 million jury verdict against Glenayre Electronics Inc. was reduced to under $3 million; Niro challenged the malpractice suit by claiming that th e patent Jackson had successfully enforced was invalid. In 2006, approximately 6,000 defendants were sued in 2,800 patent cases; in 2007, the six thousand mark was reached in early October, implying a 30 percent increase in patent litigation in a single year. Such litigation stifles substantial technological innovation. Patent trolls claim to block entire fields, and one cannot hope to innovate in these areas without the financial capital to handle the threat of patent litigation. IBM has 370 corporate patent attorneys, not just to avoid the pitfalls of infringement, but to create a patent portfolio that can provide counterclaims (or cross-licensing opportunities) if a commercial entity were to sue them for infringement. Since the late 1990s, patent litigation costs have outstripped patent profits.

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Grand Theft Auto “Hot Coffee Mod” class action settlement

In 2005 the makers of Grand Theft Auto, Take-Two Interactive and its subsidiary RockStar Games, acknowledged that the wildly popular game included a hidden “mod” which when activated revealed a scene of simulated sex. As readers may recall from our 2005 coverage (here, here, and here), class action lawyers immediately hopped on the story, filing suits on behalf of purchasers who were purportedly outraged at the inclusion of one more lurid fillip in a game already known for its lurid content, and who wanted refunds and other legally ordered relief. Now Robert Ambrogi at Legal Blog Watch (Feb. 1) has details on a settlement that will shower buyers with $5 coupons and other goodies (it helps if they’ve saved the store receipt) and enable them to “get a replacement disk, sans sex scenes” — just what so many players want! — while bringing the lawyers a fee haul of $1 million.

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Sears website privacy class action

The retailer quickly modified its managemyhome.com web site after it was pointed out that unauthorized users might get it to cough up records of homeowners’ past purchases. The law firm of KamberEdelson LLC quickly hopped on the case with a class action demanding millions, saying bad guys might use the information on past lawn mower purchases and the like to trick homeowners into divulging more serious financial data, though its complaint cited no instances where anything of the sort had actually happened. (“Sears Accused Of Violating Consumer Fraud Law”, Reuters/New York Times, Jan. 7; BenEdelman.org). Chicago lawyer/blogger David Fish isn’t impressed with the turn to legal action, asking, “Are you legally damaged because your nosy neighbor found out how much your washing machine cost?” (Jan. 10).

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Judge: “Monumental” discovery violations fit for bar discipline

“On Monday, U.S. Magistrate Judge Barbara Major sanctioned five attorneys from Day Casebeer Madrid & Batchelder and one from Heller Ehrman for their roles in ‘monumental’ discovery violations in a patent infringement case between Qualcomm Inc. and Broadcom Corp. She also sanctioned Qualcomm for intentionally withholding ‘tens of thousands of e-mails’ that it should’ve turned over during the litigation. … Major wrote that the attorneys may have violated California Rules of Professional Conduct that prohibit lawyers from suppressing evidence (5-220) and misleading a judge or a jury by false statements (5-200).” (Zusha Elinson, “Will Harsh Ruling Over Qualcomm Discovery Increase Chances of Bar Discipline?”, The Recorder, Jan. 9; “Six Lawyers in Qualcomm Case Sanctioned for ‘Monumental’ Discovery Violations”, Jan. 8; WSJ law blog)

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Report: Apple to auto-limit iPod volume

Was the litigation a factor? The UK’s Daily Mail is reporting that Apple is developing a way for future iPods and iPhones to turn down volumes automatically after a certain period of use to protect users from endangering their hearing. One columnist predicts that the feature if implemented “will be hacked in a matter of minutes” by users who don’t want the protection. (Christopher Breen, “Auto-volume may be a turn-off for some”, MacWorld, Dec. 26).

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