| volume 5 issue 49 | June 2005 | |||||
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intellectual property report | ||||
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This Month's Articles High Court Addresses Copyright Infringement In MGM v. Grokster The Basics Of An Adequate Pre-Filing Inquiry Under Rule 11 Derivatives Patents: Some Strategies For Survival To unsubscribe from this newsletter, please email IPReport@bakerbotts.com |
NewsHigh Court Address Copyright Infringement In MGM v.GroksterIn a decision with potentially important consequences to all copyright owners and users, the U.S. Supreme Court issued an opinion which addressed whether software providers may be held liable for copyright infringement where their programs are the platform which users use to swap copyrighted works. The case, Metro-Goldwyn-Mayer, Inc. v. Grokster, Ltd. (04-480), concerned a suit by petitioners MGM and other copyright holders against respondents Grokster and StreamCast Networks, Inc., both of which have developed and distributed software protocols that allow computer users to directly share electronic files. Grokster and StreamCast do not charge for their software; rather, they generate revenue by selling advertising space that appears on users’ screens when they use the programs. Moreover, because the files are transmitted from one user to another without passing through a central server, neither Grokster nor StreamCast was aware of the particular files (or their copyright status) its users were sharing. The copyright holders claimed that upwards of 90% of the material transmitted through these peer-to-peer networks was copyrighted and argued that the software companies were liable for their users’ infringement. A federal district court rejected that argument and granted summary judgment to respondents; the U.S. Court of Appeals for the Ninth Circuit affirmed. Read More... ArticlesThe Basics Of An Adequate Pre-Filing Inquiry Under Rule 11Amanda MayorWhile Rule 11 has not been the subject of recent press in IP circles, compliance with the Rule is a recurring issue, and one that we have seen raised in patent litigation more regularly over the past several months than in years past. Most frequently, the issue is whether the patentee adequately investigated its claims prior to filing suit or a counterclaim for infringement. While the adequacy of any prefiling investigation necessarily is fact-specific, the courts have provided litigants and their counsel with some basic guidelines for fulfilling their Rule 11 obligations. Read More... Derivatives Patents: Some Strategies For SurvivalEric RomanLast month, Trading Technologies agreed to settle its patent infringement lawsuit against Patsystems PLC, a London-based provider of electronic trading systems for derivatives. In that lawsuit, Trading Technologies claimed that Patsystems was infringing its patents on an electronic trading system for derivatives that displays market depth by way of a ladder-like display. As part of the settlement agreement, Patsystems agreed to pay Trading Technologies a variable royalty of at least ten cents (U.S.) per side for all derivatives contracts that trade through “Dome,” Patsystems’ trading screen, with a minimum royalty of $50 per screen that uses Dome. Read More...
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