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Legal news from Wednesday, January 23, 2013




Federal Circuit reverses $2.5 million patent infringement judgment against Newegg
Michael Haggerson on January 23, 2013 2:53 PM ET

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[JURIST] The US Court of Appeals for the Federal Circuit [official website] on Tuesday reversed [opinion, PDF] a $2.5 million judgment against Newegg [corporate website] in what could be a significant software patent ruling. The US District Court for the Eastern District of Texas [official website] had ruled that Newegg violated patent numbers 5,715,314, 5,909,492 and 7,272,639 [texts] owned by Soverain Software [corporate website]. All three patents were related to electronic commerce and disclosed a system where a merchant computer could accept purchase requests from consumers and process payments. Newegg argued that its system was materially different from the one disclosed by the three patents because it relies upon cookies and that Soverain's patents were invalid because they were obvious in light of electronic commerce systems known before the patented system. The Federal Circuit agreed and found all of the asserted claims in the three patents to be invalid due to obviousness. The decision also represents a victory for other e-retailers [Internet Retailer report] against whom Soverain has asserted its patents, including Avon and Victoria's Secret [corporate websites], which had been ordered to pay $18 million in damages to Soverain. Newegg was the only one of seven e-retailers sued by Soverain not to enter a licensing agreement. In August 2005 Amazon [corporate website] paid $40 million to settle [CNET report] with Soverain for allegedly infringing Soverain's e-commerce patents.

Patent law is currently in a state of flux. Apple and Samsung [corporate websites] have been embroiled in continuous patent litigation [JURIST report] in courts around the world. Last month the US Supreme Court [official website] granted certiorari [JURIST report] in Association for Molecular Pathology v. Myriad Genetics, Inc. [cert. petition PDF; JURIST report], which deals with the issue of whether human genes are patentable. In September 2011 President Barack Obama signed [JURIST report] the America Invents Act (AIA) [text, PDF; HR 1249 materials] into law. The AIA changed the patent system from first-to-invent to first-to-file, allowing the US Patent & Trademark Office [official website] to keep all of the fees generated from patent filing rather than having them diverted by Congress, allowing third parties to introduce relevant material to patent examiners during the patent application review process and removing the "best mode" requirement from patents.




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UK PM proposes referendum on EU membership
Brandon Gatto on January 23, 2013 2:42 PM ET

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[JURIST] UK Prime Minister David Cameron [official website] on Wednesday announced his plan for a nationwide referendum [transcript; press release] on whether the UK should remain part of the European Union (EU) [official website] following the country's next election in 2015. Though Cameron stressed reluctance to leave the EU altogether, he explained that the institution has become too involved in bureaucratic processes [Reuters report] rather than trade deals, and that he wishes to see his country and the EU agree on several reforms to combat the eurozone debt crisis [The Guardian backgrounder]. Advocating change, Cameron further asserted that the UK would fight to ensure that new rules dealing with the crisis were fair to the 10 EU countries that do not currently use the euro as common currency. Ultimately, he declared that the referendum, which he hopes would be held by the end of 2017, would present British citizens with a simple "in-out" choice on whether to stay in the EU after his highly-sought re-negotiations of the UK's membership have concluded.

In October 2011 the UK Parliament [official website] voted 483-111 against holding a national referendum [JURIST report] on remaining an EU member. In that proposal, the referendum would have put forward three options for a vote: to remain in the EU, to leave the EU, or to re-negotiate membership terms. In 1975 the UK held a referendum [BBC backgrounder] to determine whether to leave the European Economic Community (EEC). There, only two years after the country had joined the EEC, just over 67 percent of voters supported the move to remain in the European institution.




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Seventh Circuit strikes down sex offender social networking ban
Matthew Pomy on January 23, 2013 1:58 PM ET

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[JURIST] The US Court of Appeals for the Seventh Circuit [official website] on Wednesday struck down [opinion, PDF] an Indiana law [text] that prohibits sex offenders from joining social networking websites, such as Facebook and other websites children are able to join. The law makes it a crime for a registered sex offender to be a member of a "social networking" site defined as a site that facilitates the introduction of persons, allows a person to create a personal profile and provides the opportunity for communication between persons. The court determined that the law targeted free speech and thus deserved careful scrutiny. In the opinion, Judge Joel Flaum wrote:
Though content neutral, we conclude that the Indiana law is not narrowly tailored to serve the state's interest. It broadly prohibits substantial protected speech rather than specifically targeting the evil of improper communications to minors. ... Subsequent Indiana statutes may well meet this requirement, but the blanket ban on social media in this case regrettably does not.
The court also noted Indiana already has measures in place that prohibit sex offenders from contacting minors.

The rights of convicted sex offenders have been the subject of many constitution-based lawsuits. In October a California resident sued [JURIST report] four Orange County cities over sex offender ordinances. In August a federal appeals court struck down [JURIST report] the Indiana sex offender registry saying it violated due process. In January the US Supreme Court [official website] ruled 7-2 [JURIST report] that people who were convicted of sex offenses before the enactment of the federal Sex Offender Registration and Notification Act [final guidelines, PDF] did not have to register under the act until the attorney general validly specified that the provisions applied to them. A few days earlier, a federal appeals court struck down [JURIST report] a city ordinance that banned sex offenders from libraries in Albuquerque, New Mexico.




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Supreme Court receives opening briefs in same-sex marriage cases
Rebecca DiLeonardo on January 23, 2013 1:33 PM ET

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[JURIST] The US Supreme Court [official website] received briefs in two separate cases on Tuesday defending the constitutionality of laws that define marriage as strictly between one man and one woman. The first case, Hollingsworth v. Perry [docket; cert. petition, PDF], examines the validity of Proposition 8 [JURIST news archive], a California referendum that revoked same-sex marriage rights. In their brief [text, PDF] in support of the law, a group of California citizens argued that they have standing to defend the law that the governor and state attorney general declined to defend in court. They further argued that the court should find the law to be a constitutional exercise of state marriage regulation. In the second case, United States v. Windsor [docket; cert. petition, PDF], the court will examine the constitutionality of Section 3 of the Defense of Marriage Act (DOMA) [text; JURIST news archive]. In its brief [text, PDF], the Bipartisan Legal Advisory Group (BLAG) urged the court not to raise the constitutional standard of evaluation for laws that unequally impact gay and lesbian individuals. BLAG argued, however, that even under a heightened standard of scrutiny, DOMA is constitutional. The court will also consider in this case if BLAG had standing to intervene and if the DOJ's refusal to defend the law deprives the Supreme Court of jurisdiction, but these issues were not addressed in Tuesday's brief.

The court granted certiorari [JURIST report] in the two cases last month. Both cases could have an important impact on the ongoing same-sex marriage [JURIST backgrounder] controversy in the US. In early December Washington Governor Christine Gregoire certified the results of Referendum 74 [JURIST report] which legalized same-sex marriage in the state. In the same time frame, the Coalition for the Protection of Marriage, a non-profit corporation in Nevada which opposes same-sex marriage, petitioned the US Supreme Court [JURIST report] to grant certiorari to determine whether the Fourteenth Amendment's Equal Protection Clause requires Nevada to change its definition of marriage from the union of a man and a woman to the union of two persons. In November, the office of the Maryland Attorney General released an opinion [JURIST report] stating that same-sex couples can obtain marriage licenses, allowing Maryland to become the ninth US state to allow same sex marriage after Maine and Washington [JURIST reports] enacted similar measures in November.




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India panel suggests legal reforms in response to rape incident
Keith Herting on January 23, 2013 12:40 PM ET

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[JURIST] An Indian government commission published its report [text, PDF] Wednesday recommending numerous reforms in the way the nation's legal institutions handle rape cases. The report was created by a panel led by Justice Jagdish Sharan Verma [official profile] which was established to respond to mass protests in India following the December gang rape and subsequent death [BBC reports] of a 23-year-old medical student in New Dehli. The report provides a host of suggestions advocating for reform in all spheres of Indian life including political, judicial and cultural reform. The report reserves its harshest criticism for the manner in which police and the judiciary currently respond to rape accusations and suggests that the most pressing efforts the government should undertake include increasing police accountability and harsher penalties for those convicted of sexual assault. The report did not go so far as to suggest the death penalty for those convicted of rape, which some in the country have been urging. Other recommendations include the creation of specific courts to handle rape cases, increased enforcement of laws restricting human trafficking, and additional judicial resources to allow for speedier trials and appeals of rape cases.

In December Indian authorities charged six suspects [JURIST report] with murder after the death of the gang rape victim. In December Indian Prime Minister Manmohan Singh [official profile] called for peace [JURIST report] after a protest over sexual violence resulted in a clash between protesters and police.




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Thailand court sentences magazine editor to 11 years for royal insult
Cynthia Miley on January 23, 2013 12:35 PM ET

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[JURIST] A Thai court sentenced magazine editor and political activist Somyot Pruksakasemsuk under Thailand's lese majeste law to a total of 11 years in prison. Section 112 of the Thai Penal Code [text] is the lese majeste law, which reads: "Whoever, defames, insults or threatens the King, the Queen, the Heir-apparent or the Regent, shall be punished with imprisonment of three to fifteen years." Somyot was sentenced [BBC report] to five years for each of two articles negatively mentioning the monarchy that he published under pseudonyms [AP report] in his magazine, Voice of Taksin, in 2010. He was sentenced to an additional year from a suspended defamation case that was over three years old. Somyot and the magazine were associated with Thailand's "red-shirt" [BBC backgrounder; JURIST news archive] movement, which led anti-government protests in 2010 [JURIST report]. Somyot was arrested five days after launching a petition calling for a review of the lese majeste laws. The sentence has been criticized by both Human Rights Watch [advocacy website], which said the ruling was more akin to punishment [press release] for Somyot's support for amending the lese majeste law than it was about any harm to the monarchy, and by UN High Commissioner for Human Rights Navi Pillay [official profile], who said [press release], "People exercising freedom of expression should not be punished in the first place." Sumyot's lawyer has said he will appeal the verdict but will not seek a royal pardon.

Thailand's lese majeste laws have generated controversy. US citizen Joe Gordon was released [JURIST report] from a Thai prison in July on a royal pardon that commuted a two-and-a-half-year sentence for defaming the Thai royal family. Gordon was sentenced [JURIST report] in December 2011 after pleading guilty in October. UN Special Rapporteur on freedom of expression Frank La Rue [official website] recently condemned the lese majeste law [JURIST report] shortly after the guilty plea was submitted: "The threat of a long prison sentence and vagueness of what kinds of expression constitute defamation, insult, or threat to the monarchy, encourage self-censorship and stifle important debates on matters of public interest, thus putting in jeopardy the right to freedom of opinion and expression. ... This is exacerbated by the fact that the charges can be brought by private individuals and trials are often closed to the public." In 2009 Amnesty International [advocacy website] called for a public trial [JURIST report] for a Thai political activist accused of lese majeste. In 2009 a Thai court sentenced an anti-coup protester to 18 years in prison [JURIST report].




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Supreme Court declines to rule on state-funded cross restoration
Keith Herting on January 23, 2013 11:54 AM ET

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[JURIST] The US Supreme Court [official website] denied certiorari [order list, PDF] Tuesday in a case in which an Illinois tax-payer was found to lack standing to sue the state legislature for a $20,000 grant provided to the Bald Knob Cross of Peace Organization to restore a landmark Latin cross. The petition challenged a June ruling [opinion, PDF] by the US Court of Appeals for the Seventh Circuit [official website] which found the petitioner, Robert Sherman, lacked standing to sue the state [JURIST report] because the legislature did not choose the specific organizations that would receive the money. The money was part of a $5 million appropriation for a grant program to be administered by the Illinois Department of Commerce and Economic Opportunity.

The challenge was initially brought in August 2010 by Sherman, who has said on his website [advocacy website] that the decision of the District Court was "bizarre" and "preposterous." In October 2010 the Seventh Circuit rejected [JURIST report] Sherman's challenge to the constitutionality of an Illinois statute that mandates a daily moment of silence in public schools. The court reversed an April 2009 ruling [JURIST report] that the Illinois Reflection and Silent Prayer Act [text] is an unconstitutional endorsement of religion in public schools. The appellate court instead found that the statute had a secular legislative purpose that neither advanced nor inhibited religion.




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Turkish Foreign Minister urges world to declare Syria attacks on citizens war crimes
Cynthia Miley on January 23, 2013 11:51 AM ET

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[JURIST] Turkish Foreign Minister Ahmet Davutoglu [official profile] on Wednesday urged the international community to declare Syria's actions against its own citizens war crimes. At the World Economic Forum in Davos, Switzerland, Davutoglu stated [AP report] that cities were being "bombarded ... indiscriminately" and that the government is committing criminal acts. Both sides of the conflict have intensified attacks while diplomacy has failed to provide a solution. The recent escalation of violence in Syria included a government rocket attack on Wednesday that hit a northern village of Abu Taltal in the Aleppo province village controlled by rebel factions and killed six family members.

The Syrian government has been engaged in a bloody conflict with numerous opposition groups [BBC backgrounder] since March 2011 when nationwide protests opposing the government of President Bashar al-Assad [BBC backgrounder; JURIST news archive] began. The revolt against Assad has lasted 22 months and the death toll has reached 60,000 [JURIST report] and began with protests that quickly turned into violence between Assad's forces and demonstrators. UN Under-Secretary-General for Humanitarian Affairs and Emergency Relief Coordinator Valerie Amos and the UN High Commissioner for Human Rights Navi Pillay [official profiles] stated last Friday that the continued violence in Syria has been harming civilian human rights [JURIST report] and humanitarian attempts at aiding those in need. More than 50 countries asked [JURIST report] the UN Security Council earlier this month to refer the situation in Syria to the International Criminal Court (ICC) [official websites]. In October Pillay urged [JURIST report] world powers to work toward ending the suffering in Syria, emphasizing uniformity and cooperation among leaders to quell the violence.




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Supreme Court rejects maritime piracy petitions
Julia Zebley on January 23, 2013 9:42 AM ET

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[JURIST] The US Supreme Court [official website] denied certiorari [order list, PDF] in two cases Tuesday that dealt with federal maritime piracy law [JURIST news archive]. The court denied Dire v. United States [cert. petition, PDF; docket] and Said v. United States [cert. petition, PDF; docket], both decided in May of last year [JURIST report], opting not to rule on the application of a 1790 federal law, piracy under law of nations [18 USC § 1651 text] to modern Somali pirates. In Dire, the US Court of Appeals for the Fourth Circuit held that the law can be applied to current international standards of piracy. The opinion also endorsed the definition of piracy under the UN Convention on the Law of the Sea (UNCLOS) [materials] and applied it as "customary international law" for the purposes of the piracy statute. "We also agree with the district court that the definition of piracy under the law of nations, at the time of the defendants' attack on the USS Nicholas and continuing today, had for decades encompassed their violent conduct. That definition, spelled out in the UNCLOS, as well as the High Seas Convention before it, has only been reaffirmed in recent years as nations around the world have banded together to combat the escalating scourge of piracy."

Last month, the Chief Judge for the US District Court for the Eastern District of Virginia ruled [JURIST report] that Somalia's territorial waters extend no more than 12 miles from shore, concluding that the US has jurisdiction to prosecute a band of pirates accused of murdering four Americans in 2011. The month before, the UN Security Council condemned [JURIST report] piracy and acts of armed robbery against vessels off the coast of Somalia. The Security Council urged the international community to develop a comprehensive response to discourage these acts.




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Supreme Court rules Medicare challenge was too late to gain repayment
Julia Zebley on January 23, 2013 8:28 AM ET

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[JURIST] The US Supreme Court [official website] ruled unanimously [opinion, PDF] Tuesday in Sebelius v. Auburn Regional Medical Center [JURIST report] that 10-year-old final rulings for Medicare [official website; JURIST news archive] reimbursement cannot be appealed to the Department of Health and Human Services (HHS) [official website] beyond the deadlines previously set by the Secretary of HHS, despite evidence of intentional concealment that prevented the appeals. Justice Ruth Bader Ginsburg delivered the opinion for the court. The court held that the 180-day statutory deadline to appeal to the Provider Reimbursement Review Board (PRRB) from a final Medicare payment determination, under 42 USC § 1395oo(a)(3) [text] is not "jurisdictional," and thus it was up to HHS, an agency, to set the statute of limitations. The court also held that the principle of equitable tolling [backgrounder] "does not similarly apply to administrative appeals of the kind here considered." The holding reversed [opinion] the US Court of Appeals for the DC Circuit.

Justice Sonia Sotomayor concurred to suggest that the question of whether any agency decision is immune from equitable tolling has not been answered. "I write separately to note that the Court's decision in this case does not establish that equitable tolling principles are irrelevant to internal administrative deadlines in all, or even most, contexts. The Court is correct that our equitable tolling cases have typically involved deadlines to bring suit in federal court. But we have never suggested that the presumption in favor of equitable tolling is generally inapplicable to administrative deadlines."




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Federal appeals court declines to change marijuana drug classification
Jerry Votava on January 23, 2013 7:19 AM ET

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[JURIST] The US Court of Appeals for the District of Columbia Circuit [official websites] ruled [opinion, PDF] Tuesday that it would not compel the Drug Enforcement Agency (DEA) [official website] to change the listing of marijuana as a Schedule I drug. The Controlled Substances Act of 1970 (CSA) [text] permits the DEA to place narcotics into various Schedule classes and permits outside groups to request reclassification of those narcotics. Schedule I is the most restrictive classification for drugs and includes heroin. Marijuana's inclusion in this schedule means that its production, sale and consumption is largely banned by federal law, despite the growing number of states that permit its medicinal and recreational use. Americans for Safe Access (ASA) [advocacy website] requested reclassification by the DEA and filed suit in federal court when they were denied. ASA asserted that "[n]umerous peer-reviewed scientific studies demonstrate that marijuana is effective in treating various medical conditions, but the DEA simply ignores them to conclude that marijuana should remain in Schedule I." In response the court held:
[T]he parties' dispute in this case turns on the agency's interpretation of its own regulations. Petitioners construe "adequate and well-controlled studies" to mean peer-reviewed, published studies suggesting marijuana's medical efficacy. The DEA, in contrast, interprets that factor to require something more scientifically rigorous. ... The DEA's construction of its regulation is eminently reasonable. Therefore, we are obliged to defer to the agency's interpretation of "adequate and well-controlled studies."
The DEA's standard for acceptable scientific findings are similar to the evidence required by the Food and Drug Administration in New Drug Applications. In reaching its decision, the court did reject an argument by the DEA that the plaintiffs lacked the standing to pursue the case.

Marijuana [JURIST news archive] was a hot-button issue in several states in the November 6 election [JURIST report], with Washington and Colorado legalizing the drug. The Colorado initiative [Amendment 64, PDF] introduces an amendment to the state constitution, allowing adults over 21 to possess up to an ounce and privately grow up to six plants, although public use will be banned. In Oregon the Cannabis Tax Act Initiative [Measure 80, PDF] failed by approximately 55-to-45 percent [Examiner.com report] of the vote. Medical marijuana was legalized in Massachusetts for the first time as over 60 percent of voters approved Question 3 [Petition 11-11, PDF], an indirect initiated statute that will allow marijuana use by patients [Harvard Crimson report] with "debilitating medical conditions" and create 35 medical marijuana dispensaries. Conversely, the Arkansas Medical Marijuana Act [Issue 5, PDF] was rejected by voters [AP report] in that state by approximately a 52 to 48 percent margin. The measure would have allowed doctors to issue a certificate to anyone with a "qualifying medical condition" to grow, process and use marijuana. Also on the ballot in Montana was a veto referendum regarding a 2011 revision [SB 423] of a 2004 law that established medical marijuana use in the state.




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