Tech Law Journal Daily E-Mail Alert
Jan. 3, 2001, 8:00 AM ET, Alert No. 93.
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Documents
NetZero: Complaint for patent infringement against Juno, 12/26 (HTML, TLJ).
Milberg: securities class action complaint against Foundry Networks, 12/28 (PDF, Milberg).
Reno: article re intellectual property crimes, 12/25 (HTML, DOJ).
New and Updated Sections
Calendar (updated).
News from Around the Web (updated).
Quote of the Day
"Countries that fail to protect intellectual property will witness the exodus of their best talent, a loss of jobs and tax revenues, a nutrient environment for official corruption and an increase in crimes financed by intellectual property theft."

Janet Reno, Attorney General of the U.S., Dec. 25.
Thursday, Jan. 4
10:00 AM. The Senate Commerce Committee will hold a hearing on the nomination of Donald Evans to be Secretary of Commerce. Sen. John McCain (R-AZ) will preside. Location: Room 253, Russell Senate Office Building. 
News Briefs
1/2. President Elect George Bush announced three more nominations: Norman Mineta (D-CA) to be Secretary of Transportation; Spencer Abraham (R-MI) to be Energy Secretary; and Linda Chavez (R-VA) to be Secretary of Labor. Mineta is currently the Sec. of Commerce. He also represented a House district that included San Jose, Calif., from 1974 through 1994. Abraham lost his bid for re-election to the Senate last November. He was active and supportive of technology in the Senate. He was the leading advocate of increased immigration opportunities, including more H1B visas for high tech workers. He was also one of the leading proponents of the electronic signatures bill. However, he will have little opportunity to work on technology issues at the Dept. of Energy. Chavez was Director of the U.S. Civil Rights Commission under Ronald Reagan. More recently, she has advocated the use of porn filtering software on computers used by children in schools and libraries.
1/2. AT&T announced that it completed the sale of Kearns-Tribune, which owns the Salt Lake Tribune, to MediaNews Group for $200 Million. AT&T acquired its interest in Kearns-Tribune when it merged with TCI in 1999. See, AT&T release.
1/2. The FCC has not yet released a notice of proposed rule (NPRM) regarding selection and allocation of spectrum for Third Generation (3G) wireless technologies. Thomas Sugrue, Bureau Chief of the FCC's Wireless Telecommunications Bureau, stated on Nov. 3 that the FCC is "committed to do a Notice of Proposed Rule Making by the end of the year". He also stated that "our goal is to have auctions ... by the summer of 2002." See, TLJ story of Nov. 3. 3G is intended to bring broadband wireless Internet access to mobile devices. At issue in the as yet unreleased FCC NPRM is use of the 2500 to 2690 MHz band that is currently being used for MMDS, MDS, and ITFS.
1/2. The Infocomm Development Authority (IDA) of Singapore announced that it will delay its Third Generation (3G) wireless spectrum auction.
12/25. Outgoing Attorney General Janet Reno published an article in The Standard titled "The Threat of Digital Theft: Intellectual Property Theft is Faster, Costlier and More Dangerous than Ever." She stated that "Our citizens, policymakers and law enforcement experts must understand that stealing intellectual property will be prosecuted for what it is: not an exotic, hard-to-prosecute diversion or hobby, but theft, pure and simple." The Department of Justice under Reno has been largely silent on intellectual property issues, and lax in its enforcement of intellectual property related criminal statutes. Intellectual property industry representatives have called upon the DOJ to be more active in this area. President George Bush's nominee to be Attorney General is John Ashcroft.
Editor's Note: This column includes all News Briefs added to Tech Law Journal since the last Daily E-Mail Alert. The date indicates when the event occurred, not the date of posting to Tech Law Journal.
Securities Law
12/28. An individual named Michael Clement filed a complaint [PDF] in U.S. District Court (NDCal) against Foundry Networks and several of its officers and directors alleging violation of federal securities laws. The plaintiff, who seeks class action status, is represented by Wm. Lerach of the law firm of Milberg Weiss. The one count complaint alleges that defendants made false statements in violation of Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. Foundry, based in San Jose, Calif., makes high-performance, end-to-end switching and routing equipment, including Internet routers, Layer 3 switches and Layer 4-7 Internet traffic and content management switches. Its products are used by large ISPs, including AOL, EarthLink, AT&T WorldNet, MSN, and Cable & Wireless, and by smaller ISPs. Its products are also used in large enterprise, entertainment, pharmaceutical and manufacturing companies, and by search engines, e-commerce sites, universities and government organizations. Milberg Weiss is a law firm that specializes in bringing securities class action suits against technology companies when their stock prices drop.
12/28. The SEC filed a complaint in U.S. District Court (SDFl) against a business named Web Hosting Headquarters Partnership, and several of its principals and telemarketers, alleging that they engaged in a fraudulent securities offering. The SEC also sought, and obtained, an emergency temporary restraining order that bars defendants from continued violation of the federal securities laws, freezes assets, and appoints a receiver. The complaint states that defendants ran a boiler-room telemarketing operation for the sale of partnership interests in a web site hosting business, and lied to investors about the business. See, SEC release.
12/22. The U.S. District Court (CDCal) granted the SEC's motion for summary judgment in SEC v. Telsys Communications, Home Shopping Partners, and Eleazar Heracleopolis, a civil fraud action pertaining to the fraudulent sale of securities in an Internet shopping mall business. Defendants sold securities in the business, but diverted most of the funds raised to other purposes. The Court found that defendants violated the antifraud, securities registration and broker-dealer registration provisions of various federal securities laws, including 5(a), 5(c) and 17(a) of the Securities Act of 1933, 10b-5 and 15(a) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. The Court also permanently enjoined the defendants from committing future violations of the securities laws, and ordered Heracleopolis to disgorge $502,812 in misappropriated investor funds, and  pay a civil penalty of $110,000. See, SEC release.
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