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Supreme Court shuts down location loophole for patent suits
Patent trolls have had it pretty easy lately, especially in East Texas. A 2016 ruling by the US Court of Appeals for the Federal Circuit allowed patent suits anywhere a defendant company's products are sold. The Eastern District of Texas has become a favorite of high-tech patent lawsuits thanks to its rapid litigation timetable and plaintiff-friendly rulings. The US Supreme court today may have put an end to such free-range suit practices, however. The justices involved in the patent case between TC Heartland and Kraft Foods ruled unanimously that patent suits can only be filed in courts located where the target company is headquartered.
Federal appeals court upholds Nintendo's win in 3DS patent battle
Just months after the Nintendo 3DS launched in 2011, it faced patent infringement allegations. Tomita Technologies was accusing Nintendo's new handheld of using its glasses-free 3D display technology without paying royalties. Like most patent lawsuits, it dragged on for years -- first awarding a victory to Tomita before handing the win to Nintendo in appeals. Now, a higher court has confirmed Nintendo's victory. On Friday, the Federal Circuit court ruled that the Nintendo 3DS does not infringe Tomita's patent.
FTC sues Qualcomm over anti-competitive practices
The U.S. is the latest country to target Qualcomm over anti-competitive behavior. The FTC announced this afternoon that it was suing the company over monopolistic tactics around its baseband processor business -- the hardware that smartphones and tablets rely on for network connectivity. In particular, the FTC claims Qualcomm "engaged in exclusionary conduct that taxes its competitors' baseband processor sales, reduces competitors' ability and incentive to innovate, and raises prices paid by consumers for cell phones and tablets," according to a court filing.
Note 7 debacle forces Samsung to offer next-gen discounts in Korea
In an effort to retain Galaxy Note 7 customers in South Korea, Samsung is offering a big discount on the upcoming Galaxy S8 and Galaxy Note 8 models. The company will effectively offer 50 percent off the next-gen phone, provided that Note 7 customers upgrade to the current Galaxy S7 or Galaxy S7 Edge models. Samsung recently killed its Galaxy Note 7 smartphone because of fire and explosion problems. It initially misdiagnosed the problem as being battery-related, and issued replacement phones that were still defective.
Volkswagen investors sue for another $9 billion in damages
It's been exactly one year since news of Volkswagen's emissions testing scandal broke wide, and the lawsuits keep on coming. Already on the hook for $14.7 billion in one of the largest class-action settlements in US history, another 1,400 of VW's investors are now suing the company for grand total of $9.1 billion (8.2 billion euros) in damages.
Families of terror victims in Israel sue Facebook for $1 billion
The families of five Israeli and US citizens killed by Palestinian attacks on Tel Aviv, Jerusalem and the West Bank are suing Facebook for $1 billion in damages, Reuters reports today. In their lawsuit, the plaintiffs claim the social network "played an essential role in Hamas's ability to carry out its terrorist activities" and made it easier for the group to "communicate, recruit members, plan and carry out attacks, and strike fear in its enemies."
Microsoft sued for $10,000 after unwanted Windows 10 upgrade
Microsoft's pushy and occasionally misleading Windows 10 update process has had some tangible backlash. According to the Seattle Times, a small business owner from California has successfully sued Microsoft for $10,000 in "compensation for lost wages and the cost of a new computer" after an unwanted and unauthorized update allegedly left her primary work PC slow, crash-prone and unusable.
Uber scolded by judge for its confusing new contract
Uber got into more hot water on Thursday as part of its class-action lawsuit, which centers on drivers seeking to be reclassified as employees, rather than just being contracted. Federal Judge Edward Chen admonished the company for rolling out a new driver agreement last week, Ars Technica reports, which pushed workers to give up their right to sue the company and seek private arbitration for labor disputes. Drivers are able to opt out of the contract within 30 days, but that also requires emailing Uber. Chen wasn't clear if the court could actually stop the new agreement, but he ruled that it doesn't bar drivers currently suing Uber. Additionally, he noted that Uber can't communicate with the members of that suit without going through the court first.
YouTube foots the bill for video makers to fight copyright takedowns
YouTube is no stranger to cases of copyright infringement, and it's lending a hand to video creators who are involved in the disputes. The video-hosting site says that it will cover the legal fees for a few content creators that are fighting the demands of copyright holders with fair use claims. It's only offering support in four cases right now, but the company doesn't rule out expanding that number in the future. By offering assistance, YouTube hopes to not only educate the masses on fair use, but also foster loyalty among users who house their content on the site. "We want, when we can, to have our users' backs," said YouTube's legal director for copyright Fred von Lohmann. "We believe even the small number of videos we are able to protect will make a positive impact on the entire YouTube ecosystem." The new policy also helps combat the takedowns of legally posted content, keeping videos that should be available to the masses online. [Image credit: AP]
TWC robo-calls customer 153 times, now owes her $229,500
Reuters reports that Time Warner Cable has been slapped with a hefty ($229,500) fine after hammering one of its own customers, Araceli King of Irving, Texas, with robo-calls. The cable company reportedly autodialed her 153 times in less than a year. The kicker: they weren't even looking for her -- TWC was actually looking for the guy that originally owned the phone number. But even after repeatedly pleading with the company and a seven minute discussion with a TWC rep in which she made it clear that she wasn't Luiz Perez (the number's original owner), she kept receiving calls. The harassment was so consistent and extensive that the company continued calling her -- an astounding 74 times -- after she instigated her lawsuit in March 2014.
Jawbone hits Fitbit with another lawsuit, seeks to ban US shipments
The court drama between Jawbone and Fitbit is heating up quickly. Two weeks ago Jawbone sued Fitbit for "plundering" confidential information (along with employees), now Jawbone is topping that off with another lawsuit centered on patent infringement. And it's going an extra mile this time: the Up fitness band maker is also trying to stop shipments of Fitbit's products in the US by bringing the matter to the International Trade Commission. Specifically, Jawbone says Fitbit infringed on its patent that details "a wellness application using data from a data-capable band." On the face of it, though, that seems like something just about every wearable maker is doing. Still, this can't be good news for Fitbit, which is currently preparing to go public on the stock market.
EU expected to file antitrust suit against Google
The Wall Street Journal reports that after a half decade-long investigation, the EU's chief antitrust regulator will be moving forward with a case against Google for reported violations of European law. The official declaration is expected to take place tomorrow when EU antitrust chief Margrethe Vestager meets with rest of the European commissioners. The complaint stems from a number of continental shopping and travel sites which assert that Google manipulated search results in order to better promote its own brands at their expense. The search behemoth has attempted to settle the case repeatedly since it began in 2010 but to no avail. Should Google be found guilty of the charges, it could theoretically face fines totalling more than $6 billion dollars.
Nintendo and Philips resolve 'virtual body' dispute
Nintendo and Philips resolved their patent disputes by signing a licensing agreement, the technology company announced. Per the agreement, both Nintendo and Philips will "cross-license portions of each company's patent portfolio." However, Philips did not disclose any other terms or financial details for the licensing agreement. Philips filed a complaint against Nintendo in May, alleging that the video game maker infringed on Philips' patent '379, "Virtual Body Control Device." Philips said it sent notice of the alleged infringement to Nintendo in December 2011, claiming a second instance of infringement in May for patent '231, "User Interface System Based on Pointing Device." In June, a UK court found that Nintendo's reasons for developing various devices and controllers for its Wii, Wii U and DS consoles with both motion-sensing tech and cameras in it to be "unconvincing." [Image: Nintendo]
Kickstarter changes terms regarding unfinished projects
Kickstarter updated its terms of use late last week, mostly cleaning up the site's fine-print language to better spell out the relationship between project creators and backers. It will remain hands-off while project leads enter agreements with their supporters, which worked well for the funding platform to this point, as it reached $1 billion in pledges in March. Those contracts are the focus of the revised terms, as Kickstarter is now emphasizing the actions creators must take if they fail to live up to their word as well as the potential consequences if they walk away. The boldest inclusion stressed that creators who are unable to satisfy the terms "may be subject to legal action by backers." While Kickstarter still won't involve itself in the proceedings, this opens a clearer lane for possible lawsuits from project backers should creators fail to live up to their agreement or offer alternative solutions.
Judge: NCAA's likeness compensation rules violate antitrust laws
U.S. District Judge Claudia Wilken ruled yesterday that NCAA rules prohibiting student athletes from receiving compensation for the use of their images, names and likenesses violates antitrust laws, CBS Sports reported. NCAA rules do not allow colleges to pay athletes when their images are used in a video game series such as EA Sports' NCAA Football games, and Wilken said those rules "unreasonably restrain trade." Wilken is the same judge that ordered settlement talks between the NCAA and Ed O'Bannon in February, after EA agreed to settle its own likeness lawsuits with student athletes to the tune of $40 million in September 2013. EA canceled its next NCAA Football game at that time and began "evaluating [its] plan for the future of the franchise." The publisher later reported an additional $8 million in expected expenses as a result of the lawsuit settlement, which amounted to roughly $1,000 per athlete, per appearance in the games.
Apple found not guilty in lawsuit over video streaming
The patent infringement lawsuit began in 2010, when a Israel-based company called Emblaze went after Apple. The patent in question related to real-time broadcasting and Emblaze claimed that Apple was using the technology without a license. Friday, according to Bloomberg News, a jury swiftly rendered a "not guilty" verdict. Emblaze claimed that Apple pushed organizations like Major League Baseball (for MLB At Bat) and ESPN to use Apple streaming technology, which Emblaze claimed to own. The jury found that the preponderance of evidence didn't prove that Apple infringed on the Emblaze patent. Apple attorney Mark Fowler told the jury that Emblaze was an example of a failed company that targeted Apple due to its success. The case was heard in U.S. District Court for the Northern District of California in San Jose, California. The trial began on July 1.
Activision-Blizzard sues over StarCraft II cheats
On May 19th Blizzard filed a suit with the Central District of California over the practice of players who create cheats for multiplayer mode in StarCraft II. In particular, the suit names the "ValiantChaos MapHack" as one of, but not the only, hack being targeted by the litigation. The suit claims that the cheats undermine the nature of multiplayer gameplay and "disrupt or impair the online experience for purchasers of the computer game." The suit targets the programmers behind the hacks, demanding compensation for the copyright infringement inherent in the cheats' modifications of the game. As noted in the BBC report, this lawsuit recalls a similar one from 1990s, wherein Nintendo unsuccessfully sued the creators of the Games Genie, also on the grounds of copyright violation. That lawsuit, however, took place in the days before widespread online multiplayer gaming environments, and it will be interesting to see how much, or how little, this case echoes that one.
HEX developers reject copyright infringement allegations
Last week, Wizards of the Coast filed a lawsuit accusing Cryptozoic, the studio behind upcoming MMOTCG HEX, of "willful infringement of intellectual property rights," among other patent and trademark infringement claims. Cryptozoic has responded this week with a statement rejecting what it's calling "frivolous" complaints: Although we take all pending litigation seriously, we do not find any merit to the allegations in the complaint. We do not expect this frivolous legal action to impact our efforts to deliver a compelling and entertaining game experience to our customers. HEX: Shards of Fate is a digital only MMO-TCG that attempts to innovate what a digital trading card game can be. Its digital only nature allows it to push the boundaries in ways a traditional paper TCG never could. As a small company, the daunting task of defending ourselves from the bullying of a much larger corporation is difficult, but we are committed to HEX: Shards of Fate and ultimately we will prevail. We respect intellectual property rights, but the right to make a TCG is not exclusive to WOTC. Many TCGs can, and do, coexist consistent with any IP rights WOTC might have. While IP rights are important, so is fair competition. WOTC cannot snuff out fair competition with frivolous infringement assertions. The original complaint is viewable online.
SEC subpoenas the Rhode Island Commerce Corporation over 38 Studios lawsuit
After the last bit of immature name-calling over the 38 Studios debacle, it must be nice to finally put this whole mess to bed for good so we can... oh, wait. No, it appears that the drama regarding the dead studio continues as the Securities & Exchange Commission has issued a subpoena for the Rhode Island Commerce Corporation regarding its lawsuit against Curt Schilling and the other executives of 38 Studios pre-closure. The subpoenas request both depositions and exhibits pertaining to the ongoing court case against the management of the former studio. The RICC, formerly known as the Economic Development Corporation, was the organization responsible for selling bonds to facilitate the $75 million loan to the now-defunct gaming studio and has been under investigation by the SEC following the company's bankruptcy and dissolution. Neither the SEC nor the RICC is discussing any further details regarding the investigation.
Activision-Blizzard split from Vivendi halted
As reported in July, Activision-Blizzard made the move to separate itself from majority shareholder Vivendi Universal by buying itself back to the tune of over 8 billion dollars in total. About a week after the announcement, shareholder Todd Miller filed a complaint against Activision-Blizzard for doing so. Earlier this month, shareholder Douglas Hayes instigated a lawsuit against Activision-Blizzard to stop the sale, alleging that the company's CEO, chairman, and a handful of investors will benefit disproportionately from the sale. As a result, the deal is now halted for the time being. The lawsuit hinges around the fact that the Activision-Blizzard buyback from Vivendi is actually a two-part share acquisition. The first part involves Activision-Blizzard, as a company, purchasing around 429 million shares from Vivendi. The second part -- which was the subject of Todd Miller's complaint and is at the center of the lawsuit -- involves the private investment vehicle ASAC II LP, headed by Activision-Blizzard CEO Bobby Kotick and Co-Chairmain Brian Kelly, concurrently purchasing around 172 million shares from Vivendi. Hayes v. Activision-Blizzard alleges that the approval of the second sale represents a "breach of of [Activision-Blizzard and Vivendi's] fiduciary duties" and violates "certain provisions of the Company's certificate of incorporation" because it failed to submit the sale's approval to a non-Vivendi stockholder vote. For its part, Activision-Blizzard seems to view the halt as merely a setback, and intends to continue forward with the buyback. As per the following statement Activision-Blizzard "remains committed to the transaction and is exploring the steps it will take to complete the transaction as expeditiously as possible."
