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Patent Licensing in Connection with a Standard: Avoiding Antitrust Violations
January 03, 2005
Antitrust laws are designed to protect consumers' rights. The Department of Justice ("DOJ"), the Federal Trade Commission ("FTC") and private parties may take legal action against businesses that gain an unfair business advantage through the use of a monopolistic market power or other agreements that unfairly restrain trade. In other words, antitrust laws deter unfair advantages gained by businesses due to monopolistic market power.
Open Source and Patents
January 03, 2005
A patent gives its owner the right to exclude others from making, using, and selling the claimed invention. Thus, patent rights give a patentee great control over who uses his invention. In contrast, the basic idea behind distributing software under an Open Source license is that anyone should be able to view and use the source code of the computer program and modify it for his own use. (The source code is the human readable version of the software.) A business decision to distribute software under an Open Source license affects how the author of the software may be able to use his patent rights, but does not affect whether he can or should apply for patent protection.
Strengthening the Patent System
January 03, 2005
America's patent system is at a crossroads. There are many critics of the patent system; some have become increasingly vocal. Some claim the patent system is outdated. Others label it as a "threat to innovation." As fodder for their arguments, critics often tout examples of one or more patents that, in the words of one academic, are "not new, are obvious, are laughably insipid or sometimes all of the above" ("Patent Prescription: A radical cure for the ailing U.S. patent system," A. Jaffe and J. Lerner, IEEE Spectrum Online, Dec. 10, 2004).
Leasing: The Next Generation
December 30, 2004
At the launch of its annual sales meeting, a senior executive of an international company remarked that if the payment obligation had a hell or high water payment obligation, his company would try to finance it.
Constructing and Improving Space Protect Against Cost Surprises and Hidden Lease Issues
December 30, 2004
Many commercial office leases fail to identify or delineate all costs a tenant may incur in the initial build-out or subsequent alteration of its office space. Such costs, if not understood, negotiated upfront and documented in the lease agreement, will substantially reduce the actual dollars a tenant has available for its initial leasehold improvements from the landlord-provided tenant allowance and will increase the cost of alterations during the lease term. While not expressed in purely face-value economics, there are also many other issues which, if not addressed appropriately in the lease, will cost the tenant additional time and money. This article details some of these costs and issues and suggests ways to address them in your lease.
The Case of the Quiet Recall: CPSC's 2004 Civil Penalty Cases Hit 'Do-It-Yourself' Corrective Actions
December 29, 2004
In 1997, a company named Sun-It (a subsidiary of E&B Giftware) manufactured and distributed some 47,000 citronella candles known as the "Money to Burn Torch." As it happened, the wrapper surrounding the candle collected superheated melted wax. Some consumers reported to Sun-It that they had suffered serious burns when they blew on the candles or bumped into them. Others said that they had been burned when the candles unexpectedly flared. In all, over a period of 5 months, Sun-It received notice of 14 incidents in which consumers claimed to have suffered serious burns and permanent scarring after having been scalded by hot wax from the candles. Sun-It responded to these reports by stopping sale of the candles and recalling candles that remained in retail inventories. Nearly 17,000 candles, including roughly 3300 in unshipped inventory ' more than a third of the total production ' were recalled and destroyed.
Appreciation in Separate Real Property As Marital Property
December 27, 2004
The increase in value of a titled spouse's separate property is subject to equitable distribution as marital property "to the extent that such appreciation is due in part to the contributions or efforts of the other spouse." D.R.L. ' 236 (B)(1)(d)(3). The Court of Appeals has repeatedly determined that a broad interpretation be given to this exclusion so as to favor the inclusion of such appreciation as marital property: "We hold that under the Equitable Distribution Law an increase in the value of separate property of one spouse, occurring during the marriage and prior to the commencement of matrimonial proceedings, which is due in part to the indirect contributions or efforts of the other spouse as homemaker and parent, should be considered marital property.
Eminent Domain Law
December 27, 2004
Recent rulings you need to know.
Statistical Analysis
December 27, 2004
Complex statistical evidence -- based on huge samples, reams of academic and government studies and hours of testimony -- has been the weapon of choice in many epic battles. The list of major cases in which both sides have deployed legions of statistical experts is impressive: Bendectin, silicone breast-implants, Agent Orange and tobacco are just several of the many substances over which massive statistical battles have been waged. Currently, both sides of the debate over whether caps on non-economic damages help reduce medical malpractice insurance premiums are trading ground-shaking volleys of weapons-grade statistical analysis.
The Year in Review: Our Look Back and Look Forward
December 27, 2004
Last month we started our Year in Review, and made it up through June. In Part Two, we finish off the highlights of 2004.

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  • Private Equity Valuation: A Significant Decision
    Insiders (and others) in the private equity business are accustomed to seeing a good deal of discussion ' academic and trade ' on the question of the appropriate methods of valuing private equity positions and securities which are otherwise illiquid. An interesting recent decision in the Southern District has been brought to our attention. The case is <i>In Re Allied Capital Corp.</i>, CCH Fed. SEC L. Rep. 92411 (US DC, S.D.N.Y., Apr. 25, 2003). Judge Lynch's decision is well written, the Judge reviewing a motion to dismiss by a business development company, Allied Capital, against a strike suit claiming that Allied's method of valuing its portfolio failed adequately to account for i) conditions at the companies themselves and ii) market conditions. The complaint appears to be, as is often the case, slap dash, content to point out that Allied revalued some of its positions, marking them down for a variety of reasons, and the stock price went down - all this, in the view of plaintiff's counsel, amounting to violations of Rule 10b-5.
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  • Meet the Lawyer Working on Inclusion Rider Language
    At the Oscars in March, Best Actress winner Frances McDormand made “inclusion rider” go viral. But Kalpana Kotagal, a partner at Cohen Milstein Sellers &amp; Toll had already worked for months to write the language for such provisions. Kotagal was developing legal language for contract provisions that Hollywood's elite could use to require studios and other partners to employ diverse workers on set.
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