Tech Law Journal Daily E-Mail Alert
August 9, 2001, 9:00 AM ET, Alert No. 245.
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AAG James Announces New Program for Merger Investigations
8/7. Charles James, Assistant Attorney General in charge of the Antitrust Division (ATR) gave a speech in Chicago to the American Bar Association's Antitrust Section. He summarized key staff appointments, and announced a new program for conducting Hart Scott Rodino merger investigations. He stated that "The program has two parts: (1) aggressive use of the initial HSR waiting period to identify possible competitive issues and routes of inquiry; and (2) early consultations with parties to negotiate, where possible, specific procedural agreements for the investigation." See also, ATR release.
James also reflected upon his predecessors, including "Joel Klein, whose civil enforcement initiatives fearlessly confronted some of the most complex issues of the so-called New Economy."
Cameras and Facial Recognition Software Defended
8/8. The Security Industry Association (SIA) hosted a panel discussion at the National Press Club in Washington DC regarding the use of closed circuit TV cameras and facial recognition software. Richard Chase of the SIA stated that "It is time to stop focusing solely on how this technology could be potentially abused, and start talking about how this technology can be positively used in a responsible and effective way. ... It is time to stop irresponsible grandstanding and fear mongering, and to start open and honest dialogue on the shaping of policies, which will ensure responsible use. This technology is about public safety and life safety. It is an invaluable tool for law enforcement to ensure we have safe communities in which we raise our families. See, Chase statement. See also, prepared statements of Joseph Atick (Visionics Corporation) and Thomas Seamon (International Association of Chiefs of Police), and SIA release.
Securities Fraud
8/8. The U.S. District Court (CDCal) sentenced Mark Jakob to 44 months in prison. He earlier plead guilty to two counts of securities fraud and one count of wire fraud in connection with his perpetration of the Emulex stock hoax. He disseminated a false press release that was picked up by news services, and then caused Emulex stock price to drop. Emulex makes storage networking products. (USA v. Jakob, D.C. No. CR-00-1002-DT.) See, SEC release.
8/8. The SEC reached a settlement in its civil securities fraud action against Fred Moldofsky. The SEC filed a complaint in the U.S. District Court (SDNY) against Moldofsky on March 30, 2000, alleging that he posted a series of fraudulent press releases about Lucent on a Yahoo Finance message board. (SEC v. Moldofsky, D.C. No. 00 Civ. 2425 (LTS).) See, SEC release.
Collocation Rules
8/8. The FCC released its Fourth Report and Order [PDF] in the proceeding named "In the Matter of Deployment of Wireline Services Offering Advanced Telecommunications Capability" and numbered CC Docket No. 98-147. The order was adopted by the FCC on July 12. Commissioner Kevin Martin wrote a separate opinion concurring in part, and dissenting in part.
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Fed Circuit Affirms in Innovad v. Microsoft
8/6. The U.S. Court of Appeals (FedCir) issued its opinion in Innovad v. Microsoft, a patent infringement action involving dialing systems in hand held computers.
Innovad filed a complaint in U.S. District Court (NDTex) against Psion, Apple Computers, Ericsson, HP, Phillips Electronics, Everex Systems, Sony Electronics, and LG Electronics alleging patent infringement. Innovad alleged infringement of its U.S. Patent No. 4,882,750, for a programmable dial system, by making, selling, and using palm sized computers that automatically dial preprogrammed telephone numbers when loaded with appropriate software. Innovad also named as defendants Microsoft and Odyssey Computing, alleging patent infringement for manufacturing the software to perform these functions.
Microsoft, Psion and Apple moved for summary judgment. The District Court determined that plaintiffs did not infringe, either literally or by equivalents, the patent in suit, because it does not cover any dialer units with a keypad and the accused devices include keypads. The Court of Appeals affirmed. 
Fed Circuit Affirms in Pall v. PTI
8/7. The U.S. Court of Appeals (FedCir) issued its opinion in Pall v. PTI Technologies, a patent infringement case involving filter technology for filtering high temperature corrosive chemicals such as hot acids used in the etching process of semiconductor chips.
PTI filed a complaint in the U.S. District Court (CDCal) against Pall alleging infringement of U.S. Patent No. 4,663,041, titled "Fluorocarbon filter element". Pall filed a complaint in the U.S. District Court (EDNY) against PTI alleging infringement of its U.S. Patent No. 4,609,465, titled "Filter cartridge with connector seal." The California action was transferred to New York and the two cases were consolidated.
The District Court granted Pall's motion for summary judgment of non infringement of the '041 patent, and PTI's motion for summary judgment of non infringement of the '465 patent. The Appeals Court affirmed the District Court's decision on the '041 patent, but vacated and remanded to the District Court for further proceedings on the '465 patent.
9th Circuit Rules in Trade Secrets Case
8/8. The U.S. Court of Appeals (9thCir) issued its opinion [PDF] in Yeti v. Deckers and Granville, a case involving misappropriation of trade secrets. Plaintiff had a boot design. Defendant, James Granville, after signing a non disclosure agreement, obtained information about the boot from plaintiff. His employer, Deckers Outdoor Corporation, the other defendant, then incorporated trade secrets obtained from plaintiff into its products. Plaintiff filed a complaint in U.S. District Court (DMont), based upon diversity of citizenship, against defendants, alleging misappropriation of trade secrets and other claims. Plaintiff prevailed, and this appeal followed. The trial court did not award exemplary damages, and plaintiff cross appealed on this issue. The Appeals Court affirmed on all points raised by defendants, but reversed the District Court's refusal to consider exemplary damages.
USTR Zoellick Talks Tech in India
8/8. USTR Robert Zoellick arrived in India for three days of meetings with Indian government officials and private sector leaders. Zoellick will hold discussions with Indian business leaders, including those in the information technology sector. He stated in a release that "I am interested in learning more about India's IT sector, which is contributing remarkably to India's economic development and to the growing economic linkages between the United States and India."
Next week, Zoellick will visit Iowa, home state of Sen. Charles Grassley (R-IA), the ranking Republican on the Senate Finance Committee, which has jurisdiction over many trade issues. 
FCC Commissioner Martin Picks Staff
8/8. FCC Commissioner Kevin Martin announced the selection of staff. Sam Feder will be interim Senior Legal Advisor, and will focus on common carrier matters. David Brown will be interim Legal Advisor, and will focus on mass media and cable issues. Monica Desai will be interim Legal Advisor, and will focus on wireless and international issues. Ginger Clark will be Confidential Assistant, and will handle scheduling for Martin. Dolly Johnson will be Staff Assistant, and will handle scheduling for Legal Advisors.
Sam Feder previously worked at the FCC as Associate Chief of the Competitive Pricing Division of the Common Carrier Bureau and as Legal Advisor to former Commissioner Furchtgott- Roth for common carrier matters. Before joining the FCC he worked at the Washington DC law firms of Harris Wiltshire & Grannis and  Kellogg Huber. His minor in college was computer science.
David Brown previously worked at the FCC as an Attorney Advisor in the Video Services Division of the Mass Media Bureau. Before that he was an associate at the Philadelphia law firm of Weber Goldstein. He was also a staff attorney in Pennsylvania's Office of Inspector General, Governor's Office of General Counsel.
Monica Desai previously worked at the FCC as an attorney in the Commercial Wireless Division of the Wireless Telecom Bureau (WTB) and in the Public Safety and Private Wireless Division of the WTB. Before that she was an associate at the law firm of Sonnenschein Nath & Rosenthal. She was also an adjunct professor at the George Mason University School of Law.
Van Wazer Moves to OET
8/8. Lauren Van Wazer was named Special Counsel to the Chief of the FCC's Office of Engineering and Technology, effective August 20, 2001. She was previously interim Legal Advisor to FCC Commissioner Michael Copps for wireless and international issues. Before that she was a senior staff attorney in the Commercial Wireless Division of the Wireless Telecom Bureau. And before 1999, she was an associate at the law firm of Arnold & Porter. She also held several management positions in the Network Services department of AT&T.
Thursday, August 9
9:30 AM. The FCC will hold a meeting. See, agenda. Location: FCC, 445 12th Street, SW, Room TW- C305.The agenda includes the following:
  A Third Notice of Inquiry concerning the availability of advanced services pursuant to Section 706 of the Telecom Act in preparation for its Third Report on the Deployment of Advanced Telecommunications Capability to all Americans. (CC Docket No. 98-146)
  The Commission will consider a Memorandum Opinion and Order and Further Notice of Proposed Rule Making exploring additional frequency bands below 3 GHz to support the introduction of advanced wireless service, resolving in part petitions for reconsideration of 2 GHz MSS band arrangements, and addressing petitions for rulemaking concerning the 2 GHz MSS and Unlicensed PCS bands.
9:30 AM. There will be a panel discussion titled "Perspectives on China's Accession Into the WTO." Location: National Press Club, Washington DC. The speakers will be Rick Dunham (Business Week), Pieter Bottelier (Harvard University), Will Martin (World Bank), Don Phillips, and James Tsao (Journal of Asian Economics).
1:30 PM. There will be a press conference regarding NextWave, sponsored by Hill & Knowlton. For more information contact Jessica Slovak at 944-1982. Location: National Press Club, Murrow Room, Washington DC.
DOJ and USPS Crack Down on Internet Porm
8/8. Attorney General John Ashcroft and Chief Postal Inspector Kenneth Weaver held a press conference to announce the results of an undercover operation directed at trafficking of child pormography through the mail and via the Internet. The program, named "Operation Avalanche," has resulted so far in 144 searches in 37 states with 100 arrests. See, DOJ release.