<![CDATA[Valleywag: Lawsuits]]> http://cache.gawker.com/assets/base/img/thumbs140x140/valleywag.com.png <![CDATA[Valleywag: Lawsuits]]> http://valleywag.com/tag/lawsuits http://valleywag.com/tag/lawsuits <![CDATA[ John McCain, defender of Internet children everywhere ]]> Congress has passed a bill compelling registered sex offenders to submit "email addresses, instant message addresses and other identifying Internet information" to law enforcement. The legislation is sponsored by John McCain, who is not uncoincidentally running for president. The bill, which has passed both houses of Congress and is expected to be signed into law by Bush, aims to protect children from sexual advances on social network sites. Facebook, MySpace, and others are meant to cross-check their user databases with the federal list, and, in the parlance of these types of laws, "delete online predators." But these bills are so broken from the start: what's to keep a past sex offender from just using multiple online identities? Oh, and then there's that whole sticky issue of protecting freedom of speech for those who've served their criminal sentences. Courts in Utah — yes, that Utah — have just ruled on that, providing bad news for those who supported the McCain bill.

After a challenge to a similar state law in Utah last week, a federal judge restored a sex offender's right to anonymous speech online. Though the judge stated that this decision should not apply unilaterally to all registered sex offenders, her ruling is the first to question the conventional wisdom: that curbing online speech can curb sex crimes.

Free speech advocates and social network analysts have long been claiming that this approach won't work. First, there's the problem of the expansive definition of "sex crime" — from violent assault to public nudity. On that basis, Flickr has at least one employee who, after bending over bare-assed for his colleagues, could be banned from the Internet. Add to that that state and Federal lawmakers still can't seem to grasp the qualitative difference between a sixteen year old flashing her boycrush and a fifty year old posing as the same sixteen year old. Toss with a little bit of election-year mania about being tough on crime, and you get a botched bill that may only drive sex offenders further from the public eye — the opposite of the safer, happier Internet McCain hoped to create.

(Photo by soggydan)

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Wed, 01 Oct 2008 12:40:00 PDT Melissa Gira Grant http://valleywag.com/index.php?op=postcommentfeed&postId=5057623&view=rss&microfeed=true
<![CDATA[ Facebook still facing existential legal threat ]]> New Facebook lawyer Ted Ullyot will have his hands full. Before Mark Zuckerberg came along, every college had a facebook — a collection of pictures of the incoming freshman class, distributed in print. But now, there's only one Facebook. Aaron Greenspan, a Harvard student who came up with an online facebook called HouseSystem prior to the creation of Facebook, has long disputed Zuckerberg's claim to the idea — and he's been disputing the company's name, too. Records from the U.S. Patent and Trademark Office now show that Greenspan's suit to cancel Facebook's trademark has resumed, having survived two motions to dismiss. The most probable outcome here: Like Cameron and Tyler Winklevoss, the twins who claim they hired Zuckerberg to work on their college social network, ConnectU, Greenspan will get paid off with a piece of Facebook, too.

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Mon, 29 Sep 2008 13:20:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5056335&view=rss&microfeed=true
<![CDATA[ Cosmotourist sues when he doesn't get his cosplay spacewalk ]]> Ever since he was a little boy, former Livedoor executive Daisuke Enomoto dreamed of going to space, but has ended up in court alleging fraud on the part of Space Adventures, the space tourism company which runs flights out of Star City, Russia. He was all set to realize his dream after paying $21 million for 10-days in space, including a spacewalk wearing the costume of his favorite Gundam character. But he got kicked off the rocket for X Prize founder Anousheh Ansari in 2006 after a spot medical check disqualified him. And that's where the fun begins.

Enomoto claims the checkup results were a convenient lie, and that Space Adventures had never had permission to offer the spacewalk but demanded another $10 million from him for the privelege anyway. He also alleges that Ansari basically bought her way ahead of him in line by making an "investment," which he was also pestered to do. Space Adventures's attorney John Villa says the company will not be offering a refund, and that's that. Sounds like a typical tourist package shakedown, frankly — wonder how much they'll take Ultima creator Richard Garriott and Google cofounder Sergey Brin for between now and liftoff?

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Thu, 25 Sep 2008 05:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5054588&view=rss&microfeed=true
<![CDATA[ Kentucky judge moves to seize gambling sites' domains ]]> State authorities, accustomed to controlling gambling within their borders, have been largely frustrated in their efforts to police Internet betting. Kentucky judge Thomas Wingate has hit on a novel strategy: Taking away offshore gambling sites' domain names. The state is taking control of 141 domain names, including sportsbook.com and caribbeangold.com. Novel, but unlikely to be effective; sites will switch to other countries' domains, or — worst-case scenario — have gamblers type in numerical IP addresses. What, you think gambling addicts will balk at having to remember four numbers? The State of Kentucky, which is already in the gambling business, should just expand online and compete directly with its offshore rivals. That seems easier.

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Tue, 23 Sep 2008 12:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5053704&view=rss&microfeed=true
<![CDATA[ Disgruntled iPhone owner alleges conspiracy in lawsuit ]]> 70-year old San Diegan William Gillis has added "civil conspiracy" to the list of allegations in a lawsuit against Apple and AT&T. More 3G devices on a local network means less data bandwidth and possibly disconnections, both problems which have plagued the latest version of the iPhone since launch. The conspiracy charge is on top of false advertising allegations he already filed — the conspiracy being that Apple and AT&T knew that the advertised performance would suffer if sales estimates for the devices were actually met or exceeded, hence the two companies oversold the device. [Wired]

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Thu, 11 Sep 2008 08:20:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5048394&view=rss&microfeed=true
<![CDATA[ Apple settles options backdating lawsuit, will receive $14 million ]]> Insurers will pay Apple $14 million in a settlement of a suit brought by shareholders against the company's executives. This brings the scandal over backdated options — where company officials changed the date of option grants so that executives like CEO Steve Jobs would have a lower strike price, without accounting for it in the company's books — pretty much to a close after the SEC settled its case against former corporate counsel Nancy Heinen. The $14 million will neatly cover an estimated $8.9 million in attorney fees and expenses. [AP] (Photo by Getty/AFP)

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Wed, 10 Sep 2008 14:40:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5048172&view=rss&microfeed=true
<![CDATA[ Here comes the Google antitrust case ]]> The Justice Department is probably going to bring an antitrust suit against Google, experts are beginning to say. Yesterday, the department hired former Disney superlawyer Sandy Litvack to take a closer look at Yahoo's deal to outsource search to Google. “They wouldn’t bring in a special counsel unless they were preparing to litigate,” says Sam Miller, the lawyer who defended Microsoft's antitrust trial. Former FCC official Blair Levin agrees. Levin wrote in a Stifel Nicholas research note yesterday that "the hiring of a lawyer with this kind of background is far more rare, and, in our memory, the times when this has happened the Department brought a case." The irony: if the U.S. does win the case against Google, it won't be the search giant which feels the most pain. Yahoo would lose $250 million to $450 million in cash it's counting on raking in.

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Wed, 10 Sep 2008 08:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5047847&view=rss&microfeed=true
<![CDATA[ DOJ hires gun to bust up Google and Yahoo ad trust ]]> Though it's no guarantee that the Department of Justice will take the companies to court over the deal for Google to broker Yahoo's search advertising, the hiring of hotshot litigator Sanford Litvack is a sign that the investigation is getting serious. After all, David Boies was hired by the DOJ in 1998 to press the agency's case against Microsoft. And now that it's not just competitors like Team Redmond but customers complaining about the deal, there's more incentive for the government to intervene. Of course, Google fans can look at this as something of an achievement — it took Microsoft twenty years to draw attention from government regulators concerned about monopolistic practices. Team Mountain View has done it in only half the time! (Photo by AP/Kevin Heslin)

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Mon, 08 Sep 2008 21:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5047080&view=rss&microfeed=true
<![CDATA[ Meet the guy Apple's lawyers say invented the iPod ]]> British engineer Kane Kramer created a device in 1979 called the IXI which could store and play back three and a half minutes of music. He patented the device and even founded a company to sell it. By 1988, funding ran out and he couldn't afford to renew the patents. Improbably, Apple now calls him an inventor of the iPod. The U.K.'s Daily Mail, which first reported the news, says it's the story of a wronged inventor who has never seen a dime from the 163 million iPods sold worldwide. "I can’t even bring myself to buy an iPod for myself," says Kramer, who has closed a legal loophole for Apple, conveniently and cheaply.

Facing an iPod-related patent infringement lawsuit from a company called Burst, Apple's lawyers had to be delighted to find a British inventor who filed lapsed patents on a music player back in 1979. So they called Kramer and asked him to tell a judge that whatever Burst's claims about creating the technology behind the iPod, he came up with the iPod first and was happy to see it doing so well.

"The questioning by the Burst legal counsel there was tough, ten hours of it. But I was happy to do it," Kramer told the Daily Mail. "To be honest, I was just so pleased that finally something that I had done which has been a huge success and changed the music industry was being acknowledged."

For his pains, Kramer received a consulting fee from Apple and is now negotiating compensation for a copyright he owns on a patent drawing that looks like most any early MP3 player. Apple and Burst settled out of court.

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Mon, 08 Sep 2008 09:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5046706&view=rss&microfeed=true
<![CDATA[ Fibbing CNET founder in $16.8 million art lawsuit ]]> Sotheby's, the auction house, is suing CNET founder Halsey Minor for $16.8 million it claims he owes for artwork he bought in a May auction. Minor says Sotheby's misled him. Sotheby's says Minor told it he couldn't come up with the cash because he was owed money by others. Oh, and CBS bought CNET for $1.8 billion earlier this year. So CNET founder Halsey Minor ought to be rolling in the dough, right? No. And therein lies a twisted tale that ties up a heralded artwork, Edward Hicks's "Peaceable Kingdom," with Minor's dotcom-era fibs.

"They have a massive failure to disclose,'' Minor told Bloomberg. "They have an economic interest to misrepresent the facts." Minor plans to countersue.

Longtime CNET employees might say the same about Minor. In March 2000, when he stepped down as CEO right before the Nasdaq peaked, he said, "As a large shareholder, I would not have made this move unless I thought I would generate more value to shareholders this way." Inside the company, he encouraged employees to hold onto their shares, too.

It was technically true that Minor remained a large shareholder. But through a financial maneuver known as a collar, he guaranteed that his shares would hold their value, even if the stock price dropped. The CNET employees he encouraged to stay and hold onto their shares had no such protection. It was a massive failure to disclose. He had an economic interest to misrepresent the facts.

The curious thing: Having protected his CNET fortune eight years ago, why did Minor claim he didn't have the money to pay for the art he purchased? He's spending heavily on real estate, including a $15.3 million, 476-acre estate in Williamsburg, Va., and Florida's Hialeah Park racetrack. Could Minor's investments have gone so sour that he's been caught in a cash crunch? If so, forgive CNET employees who saw their options sink underwater, on Minor's advice, a moment of schadenfreude.

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Fri, 05 Sep 2008 13:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5046106&view=rss&microfeed=true
<![CDATA[ Judge says Oracle destroyed email evidence ]]> It's been dragging on forever, the 2001 class-action lawsuit filed by shareholders who claim Larry Ellison and his team lied about the company's financial shape prior to Q2 '01 — back when New York still had a World Trade Center. Now, local district judge Susan Illston has ruled that Oracle conveniently failed to preserve Ellison's email from that period, as well as tapes and transcripts from Matthew Symonds, who interviewed Oracle's yachtbuilder-in-chief at length for his Ellison biography, Softwar.

Illston, who won fans among copyright wonks for ruling in favor of fair-use DRM hacks, is pretty clear that she doesn't see the lost evidence as an accident: "It is appropriate to infer," she wrote, "that the emails and software materials would demonstrate Ellison's knowledge of, among other things, problems with Suite 11i, the effects of the economy on Oracle's business and problems with defendants' forecasting model." Oracle spokespeople are keeping a tight lip on the situation.

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Thu, 04 Sep 2008 09:40:00 PDT Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5045363&view=rss&microfeed=true
<![CDATA[ TheFunded offers up documents to EDF's lawyers with a smile ]]> Adeo Ressi, founder of TheFunded, an acerbic site where entrepreneurs review venture capitalists, dropped by the office of McDonough Holland & Allen the other day. That law firm represents EDF Ventures, which is the VC firm that's to be avoided unless you're "desperate," according to TheFunded's users. EDF is suing in order to reveal the identity of a critic who posted a poor review of the Michigan-based fund for misrepresentation. A common practice among VCs embarrassed by bad reviews.

Ressi had the cheek to make a little video where he personally delivers the documents EDF requested. He assures the audience that they contain no information that will identify "John Doe," the unnamed defendant in the suit. The smiling Ressi makes a thumbs-up gesture at the end, clearly mocking the litigants. It also suggests that such charming and friendly customer service can be yours if you pay to promote your fund on the site.

]]> Tue, 26 Aug 2008 03:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5041791&view=rss&microfeed=true <![CDATA[ Class-action suit filed over iPhone 3G's failings ]]> An Alabama woman says Apple's become "unjustly enriched at the expense of Plaintiff and Class members" because her iPhone 3G doesn't get a good reception. She says where she lives supposedly gets good AT&T coverage and that her iPhone doesn't work as well as Apple said it would in its commercials. It's a common complaint. Check out the video comparing the speed of an iPhone in an Apple commercial versus real life embedded below . But we have to ask: instead of filing an expensive lawsuit, why doesn't the plaintiff just junk her iPhone and buy a Palm Centro or a Nokia N90? That seems easier and, you know, vastly less annoying to the rest of us.

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Thu, 21 Aug 2008 08:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5039922&view=rss&microfeed=true
<![CDATA[ Google pulling for Facebook's rower foes? ]]> On Sunday, Google featured rowers in a custom Olympics logo on its homepage. Were the mullahs of Mountain View pulling for Cameron and Tyler Winklevoss, the Olympics hopefuls in rowing who charged Harvard classmate Mark Zuckerberg with nicking the idea for Facebook from ConnectU, their college social network? The Winklevosses lost in the pair rowing finals, after handing their company to Zuckerberg in a court-ordered settlement. Then again, Google is known for backing losers in social networking.

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Mon, 18 Aug 2008 12:20:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5038395&view=rss&microfeed=true
<![CDATA[ Indian court demands Google squeal on anonymous blogger ]]> An Indian construction company called Gremach is suing Google for defamation because Google so far refuses to turn over identifying information regarding an anonymous blogger who wrote nasty things about Gremach using Blogger.com, Google's blogging service. Unlike in the United States, in India, when a Web site's users break the law, the Web site owner can be held liable.

Last September, Gremach bought a large stake in several Mozambique coal mines and a blogger going by the name "Toxic Writer" soon began attacking the company. In February, Gremach sued the blogger. An Indian court sided in Gremach's favor on Feburary 26, ordering Google to remove the defamatory article and ID the blogger. So far Google hasn't complied, which is why it's now the defendant.

In the past, Google's jumped at the chance to ID users who break local laws. In February 2007, Google turned over to News Corp. YouTube users who had uploaded copyrighted shows. Last fall, Google helped Indian police jail a man — the wrong man, turns out — for posting an insulting picture of an Indian historical figure.

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Fri, 15 Aug 2008 09:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5037420&view=rss&microfeed=true
<![CDATA[ Users sue Facebook and its Beacon partners for ruining Christmas ]]> Thirty-two Facebook users signed onto a class-action suit against Facebook and several of its Beacon partners, including Blockbuster, Fandango and Overstock, Hotwire, STA Travel, Zappos.com and Gamefly. Facebook Beacon was the service that reported to a Facebook user's friends that user's activity on partnered sites elsewhere on the Internet. The suit alleges that between November 7, 2007 and December 5, 2007, Facebook did all this without asking first. Technically Facebook did ask, with little pop-up dialogue boxes on partner sites, but apparently they were hard to spot. Still, Beacon did spoil the surprise of a fair number of Christmas gifts, which, as we understand the tradition, are supposed to remain a secret until opened.

The users want Facebook and its partners to delete all stored information, the return of any "ill-gotten gains" — of which we understand there to be none — and for the court to "award restitution." If the plaintiffs win the case it'll at least be interesting to see how much our justice system values a good Christmas surprise in monetary terms. Meanwhile, the technology behind Facebook Beacon is back, but now its called Facebook Connect and now its entirely opt-in.

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Fri, 15 Aug 2008 07:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5037431&view=rss&microfeed=true
<![CDATA[ Tiffany, eBay extend unstylish spat ]]> Luxury goods-maker Tiffany — you know, the one which sells the gays their wedding rings — is appealing a federal district court's decision clearing eBay of responsibility for counterfeit product listings. The jewelry company sends eBay 135,000 takedown notices a year, and wishes eBay would do more of the work for it. eBay's play-it-cool response: "Tiffany's decision to carry this litigation on after the District Court's decision doesn't do anything to combat counterfeiting." Much like eBay itself. [Atlanta Business Chronicle]

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Tue, 12 Aug 2008 15:00:00 PDT Alaska Miller http://valleywag.com/index.php?op=postcommentfeed&postId=5036240&view=rss&microfeed=true
<![CDATA[ As ConnectU founders prepare for Olympic semis, Facebook takes over their company ]]> ConnectU cofounders and Olympic rowers Cameron and Tyler Winklevoss beat out Croatia to win their second heat yesterday, advancing to Wednesday's semifinals. Meanwhile, back on the home front, U.S. District Judge James Ware said Monday that ConnectU has until Tuesday to transfer all its stock to Facebook and comply with a settlement to the ConnectU founders' suit alleging that Facebook founder Mark Zuckerberg stole their idea.

The news is hardly bad news for the Winklevoss brothers and ConnectU's third cofounder, Divya Narendra. Court papers say the three will get "millions" of dollars in cash as well as stock in a startup too popular with mainstream America's millennial generation to fail. (The Winklevosses were fighting the settlement after they discovered that the Facebook common stock they would receive was worth less than they supposed.) Plus, there's still that shot at gold.

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Tue, 12 Aug 2008 08:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5035949&view=rss&microfeed=true
<![CDATA[ IBM's immigration lawyers calls H-1B rules unconstitutional ]]> The U.S. Department of Labor and law firm Fragomen Del Rey Bernsen & Loewy, which represents clients such as IBM on immigration issues, are in a legal tussle. The department is conducting an audit of Fragomen's practices in helping clients disqualify American applicants — a necessary step before employers can obtain H-1B visas for foreign workers. Now Fragomen has fired back with a lawsuit that calls the Labor Department's rules restricting lawyers' activities unconstitutional. How do lawyers work to make sure no citizen applicant could possibly qualify?

In the video above from last year, attorneys from law firm Cohen & Grigsby detailed how the firm suggests a minimum of job opening ads are placed in markets where it's unlikely a qualified applicant will apply, so few are received. The firm also provides the company with a checklist which the employer can use to quickly process — and reject — any applications it may receive so that the company can permanently certify the foreign national. If a citizen passes that test, there are further tricks to making sure something arises from the interview process that disqualifies them. Disqualifying Americans also works in the favor of companies overall, since it allows them numbers to cite when complaining about the need to raise immigration quotas and expedite the process.

Fragomen is citing the First Amendment and due process in arguing that it should be allowed to offer counsel to employers. Meanwhile, up to 3,000 applications are on hold pending the investigation.

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Tue, 12 Aug 2008 07:20:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5035759&view=rss&microfeed=true
<![CDATA[ Facebook might have wanted to buy German clone instead of suing it to oblivion ]]> In late 2006, Facebook was rumored to be looking to acquire StudiVZ — the German social network that's 10 times the size of Facebook's German edition. In the middle of the sales talks, StudiVZ sold to Holtzbrinck Group, a Germany publishing giant, for up to $134 million. Holtzbrinck then offered the site back to Facebook for a hefty markup. Facebook balked filed suit instead, claiming that StudiVZ's site was a nearly indistinguishable doppelgänger. [PaidContent]

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Thu, 07 Aug 2008 16:20:00 PDT Alaska Miller http://valleywag.com/index.php?op=postcommentfeed&postId=5034484&view=rss&microfeed=true
<![CDATA[ Former Apple employee sues because Steve Jobs made him work too hard ]]> Former network engineer David Walsh worked at Apple from 1995 to 2007 before finally realizing that when the company tags "senior" on to the front of your title, it doesn't mean much except for more work. Now he's suing Apple for violating California's labor laws. In a complaint filed in the Southern District of California, Walsh alleges Apple requires employees to work more than 40 hours a week or eight hours a day, but refuses to pay overtime and instead just "promotes" employees to new overtime ineligible titles. Apparently Walsh also had to be on call for seven day stretches every six weeks. Weblogs Inc. and Mahalo founder Jason Calacanis would urge Walsh to drop the suit, get out of tech, and find work in a post office. We're just happy to report finding another job to add to our list of tech's very worst. (Photo by philentropist)

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Wed, 06 Aug 2008 07:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5033661&view=rss&microfeed=true
<![CDATA[ How daddy's money paid for Andrew Baron's Rocketboom ]]> Here's a story far more interesting than anything you'll watch on YouTube: A prodigal scion of a wealthy family, pitted against his powerful father and an ambitious blonde. It's not a pilot for a new courtroom procedural — it's the tale of Andrew Baron's Rocketboom, an online-video startup held up, inexplicably, as an example of the potential of the medium. Sony's seven-figure deal to distribute Rocketboom is seen by some as evidence that the industry is growing up. But what it really tells us is that having access to a credit line backed by Daddy is as sure a recipe for success online as it was in the old Hollywood. The exciting plot twist: Baron's father was not always happy about the arrangement. We've only learned how daddy-dependent Rocketboom was because Fred Baron loaned his son's company a total of $810,300.40, and then took it to court in order to force repayment last year. If you think it's strange for a father to go after his own son's company in court, then you don't know the elder Baron.

He's a leading Dallas attorney who even sued the firm he cofounded, Baron & Budd, and is a regular on blog Overlawyered. More interesting is that Amanda Congdon intervened in order to protect her claim on part of the company. Meanwhile, the younger Baron complains all this legal wrangling tied his dealmaking hands, and that the company nearly went broke twice this year.

The Rocketboom episode neatly explains why the world of online video so resembles film school, a parent-funded enterprise of self-indulgent auteurs with macroambitions viewed by microaudiences (including yours truly). Sony's deal doesn't affirm the potential of online video as a means of creative expression; it simply tells us that the rich, despite themselves, can't help getting richer. (Photos by Eric Skiff and Alex de Carvalho)

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Tue, 05 Aug 2008 15:20:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5033448&view=rss&microfeed=true
<![CDATA[ Yahoo shareholders not the only ones pissed at the San Jose Fairmont ]]> Over at Jerry Yang's shareholder snoozefest today, Chinese political protesters showed up outside the hotel lobby. They set up exhibits shaming Yahoo for handing over bloggers' Yahoo Mail accounts to the Chinese government. Although Jerry Yang has already answered to Congress and settled with the bloggers' families, the protesters who showed up are still mad. Or opportunistic, given the expected media attention this year on Yahoo's normally sleepy annual meeting. The bloggers remain in Chinese prisons. As I tried to take more pics — on a public street outside the hotel — guys in suits came out and told me to leave the premises. And here I thought I was in the United States.

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Fri, 01 Aug 2008 13:40:00 PDT Alaska Miller http://valleywag.com/index.php?op=postcommentfeed&postId=5032143&view=rss&microfeed=true
<![CDATA[ Rumors of Mac cloner Psystar's demise greatly exaggerated ]]> Psystar, the Florida-based maker of computers which can run Apple's OS X operating system, has hired Carr & Ferrell, a Palo Alto-based law firm, to respond to lawsuits from the (official) Mac manufacturer. The firm previously managed to squeeze a settlement from Apple on behalf of its client Burst, a video-streaming technology developer. If Psystar loses the court battle, it willl likely have to recall all the computers it has shipped — all 10 of them. If Apple loses, we might see more clones in the future. [Computerworld]

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Thu, 31 Jul 2008 14:40:00 PDT Alaska Miller http://valleywag.com/index.php?op=postcommentfeed&postId=5031660&view=rss&microfeed=true
<![CDATA[ MediaSet sues YouTube for $780 million ]]> Some observers said that when Google bought YouTube, it was buying a lawsuit. The total damages claimed in various copyright infringement cases against YouTube are now more than Google paid for the company back in 2006. On top of Viacom's $1 billion suit still pending in New York, Mediaset — the Italian media empire of irascible tycoon Silvio Berlusconi — wants €500 million ($777 million) for "immediate damages," and may ask for much more based on lost advertising opportunities.

The suit was filed in Rome civil courts, and will certainly test the Italian implementation of the European Union Copyright Directive — a law similar to the DMCA in the U.S., but considered a little more friendly to copyright holders. It can't help YouTube that the case will be argued in a country where Berlusconi was just reelected to another term as prime minister after being acquitted last year of corruption charges stemming from allegations of bribing judges. (Photo by AP/Andrew Medichini)

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Wed, 30 Jul 2008 13:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5031102&view=rss&microfeed=true
<![CDATA[ Oracle lawsuit kills off its cut-rate competition ]]> On Monday, spokespeople for software megalith SAP announced that SAP would shut down its software support subsidiary, TommorrowNow, which PC World called "a rising star in third-party maintenance and support for Oracle enterprise applications such as Siebel, PeopleSoft and JD Edwards." The fatal bullet: A lawsuit from Oracle that claimed TomorrowNow employees had downloaded confidential data and software from Oracle. SAP decided there wasn't enough left to save.

Over 200 big corporate customers like the American Red Cross and Southern California Edison are now without an alternative to Oracle's legendarily steep support fees. At the same time, SAP announced a new fee structure that fixes support costs at 22 percent of the original purchase price, compared to TomorrowNow who simply charged half of whatever Oracle did. Oracle in turn announced a 15-20 percent increase in support fees for U.S. customers. Hey, everybody wins!

If you're not familiar with IT at the big-corporation scale, enterprise software support fees are huge extra payments tacked on to any major software purchase for a large company — paying 22 percent of the original license, annually, isn't unusual. These fees in theory cover the cost of application support, patches and upgrades. Here's what's happening with Oracle: Big corporations trying to deal with a stalled economy are held in a stranglehold by application providers like Oracle, who can charge a lot for ongoing support because it's still cheaper than changing applications for 3,500+ users.

A newer option for enterprise customers is SaaS — software as a service. Instead of being installed on the customer's computes, the app is maintained on a Web server owned by the vendor. SaaS supposedly lowers the customer's infrastructure cost — no servers to own or maintain — and makes it easier for them to switch brands if they're not happy. But switching apps isn't free or easy if you're the electric company. Who's going to pay for TomorrowNow's shutdown? Probably you.

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Fri, 25 Jul 2008 14:00:00 PDT Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5029269&view=rss&microfeed=true
<![CDATA[ Fake-gay Facebook profile lands Brit $43,000 in damages ]]> Matthew Firsht, managing director of Applause Store Productions, which finds audiences for television and radio shows, won the equivalent of $33,000 in damages against a former schoolfriend. Grant Raphael's profile for Firsht falsely suggested was looking for same-sex relationships and was signed up with groups including Gay in the Wood…Borehamwood and Gay Jews in London. The judge awarded Firsht $29,500 for libel and $4,000 for breach of privacy. Firsht's firm was awarded $10,000 for libel. [Guardian]

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Thu, 24 Jul 2008 15:40:00 PDT Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5028601&view=rss&microfeed=true
<![CDATA[ Hasbro sues Scrabulous creators, who could have gotten away with it ]]> Hasbro, maker of board game Scrabble, has filed suit in a New York court against Rajat and Jayant Agarwalla, the brothers who created Scrabulous, a Facebook-app version of the game. Hasbro also filed a DMCA notice with Facebook, asking that the company remove the game from its website because it infringes on Hasbro's copyright. I'm not a lawyer, and neither is Iminlikewithyou founder Charles Forman — but he has managed to get away with his own bit of copying other people's games, turning Tetris into Blockles and Pictionary into Draw My Thing, for example. Forman tells us that the Agarwallas would be totally in the clear if they'd only copied Scrabble's rules in building Scrabulous. Game rules can't be copyrighted, argues Forman. But since the Scrabulous guys also copied the physical appearance of the Scrabble board — which can be copyrighted — Forman thinks they're screwed.

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Thu, 24 Jul 2008 13:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5028827&view=rss&microfeed=true
<![CDATA[ Politician threatens to sue Comcast for not fighting child porn the right way ]]> Andrew CuomoBroadband provider Comcast is pushing back against New York state attorney general Andrew Cuomo's demands to support his anti-child-porn campaign. Comcast and 16 other ISPs signed an agreement with the National Center for Missing and Exploited Children, which maintains a blacklist of suspected illegal porn sites — but for Cuomo's office, that isn't good enough. They insist that in addition to blocking websites, Comcast must fall in line with Time Warner Cable, Verizon, Sprint, AOL and AT&T in shutting customers out of all or part of Usenet, the network of Internet-based discussion groups, and contributing funds to root out more child porn providers. It's not the most practical or even Constitutional approach, but a good move for headlines. Comcast has until Friday to respond to Cuomo's request to sign his code and kick in the cash. (Photo via Bloomberg)

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Wed, 23 Jul 2008 15:00:00 PDT Melissa Gira Grant http://valleywag.com/index.php?op=postcommentfeed&postId=5028292&view=rss&microfeed=true
<![CDATA[ SlickCash.com pays $500,000 to settle charges of hacking Facebook ]]> Adult site promo businesses boast of "high payouts" to webmasters who bring customers to their partner sites, but nothing like the $500,000 Slickcash.com had to hand over to Facebook. SlickCash settled the "hacking" suit, in which they were alleged to have hit up Facebook's servers at least 200,000 times, presumably to advertise LesbianTraining.com and other sites in their stable through the Friend Finder feature.

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Wed, 23 Jul 2008 12:00:00 PDT Melissa Gira Grant http://valleywag.com/index.php?op=postcommentfeed&postId=5028205&view=rss&microfeed=true
<![CDATA[ What Viacom really wants to know about YouTube videos ]]> What is Viacom really after in its $1 billion lawsuit against Google over YouTube? Despite a lengthy invite list, Viacom PR was only to drum up "a small press gathering" to listen to CEO Philippe Dauman at a screening for Tropic Thunder last night, according to Greg Sandoval's report on News.com. Dauman called YouTube a "rogue company" — and expressed disappointment that Google did nothing to rein it in. Viacom's now being painted as a rogue itself, seeking to violate YouTube users' privacy in requesting viewing logs from the site.

Nonsense. How typically self-important of Internet users, to think that Viacom cares about the dozens of South Park videos they watched. Viacom is not being disingenuous in saying it never meant to violate Internet users' privacy, I've come to believe.

So why are they seeking the data? The case revolves around the Digital Millennium Copyright Act, which gives Internet service providers a "safe harbor" for hosting copyrighted content. But that protection rests on the notion that the people who operate a website don't really know what's on it.

If Viacom can show YouTube cofounders Chad Hurley and Steve Chen, or other top officials, viewed copyrighted content while logged into the site, wouldn't that weaken YouTube's rights under the DMCA? Even worse, what if Hurley or Chen uploaded copyrighted clips themselves?

Tellingly, in reaching a deal to protect YouTube users' privacy, Viacom and Google excluded data about YouTube and Google employees' use of the site.

Google's best defense might be to go negative, airing reports about Viacom executives' use of the site. That might not give YouTube any more legal protection — but it would make its legal foes squirm. Viacom's Ifilm subsidiary, for one, has been caught hosting copyrighted content without permission.

There's one thing that might save Chad and Steve: They've never seemed that interested in online video. The pair, both former PayPal employees, stumbled onto the idea, and conceived of YouTube first as a site to host shopping videos for eBay listings, then as a video-dating site. They've always been more interested in cynically exploiting online video as a business than exploring the potential of the medium. An announcement of Google's sale to YouTube is one of the few times the two actually made an appearance on it.

So there's the irony: The less Chad and Steve used YouTube, the more likely they'll come out of this lawsuit unscathed. But Viacom's legal strategy suggests that every video they viewed will count against them.

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Tue, 22 Jul 2008 11:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5027820&view=rss&microfeed=true
<![CDATA[ iPhone sales chief sued by ex-employer Motorola ]]> Motorola has sued Mike Fenger, the former head of Motorola's mobile gadgets for Europe, Africa and the Middle East. Fenger allegedly broke a two-year noncompete agreement by jumping to Apple to run global sales for the's iPhone in March. “He cannot perform his duties for Apple without inevitably disclosing Motorola’s trade secrets,” says the lawsuit, which aims to keep Fenger away from Apple and other mobile makers for two years. Trade secrets? Here's a more honest appraisal: If Fenger did so well selling the Moto Q, imagine what he'll do given an iPhone.

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Mon, 21 Jul 2008 10:40:00 PDT Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5027257&view=rss&microfeed=true
<![CDATA[ Apple's legal bell tolls for thee, PsyStar ]]> PsyStar, a Miami company, garnered quite a bit of press when they announced a cheap Intel-based desktop computer that you could use as an Apple clone running Mac OS X, in a pretty clear violation of Apple's legal restrictions on use of the operating system. So everyone was waiting for the hammer to drop — which it finally did yesterday, in the form of a complaint filed by Apple with the U.S. District Court in San Francisco.

Accessing PsyStar's website has become problematic, though it's not clear if it's due to court inunction or just the amount of public interest the company has generated. You have to give PsyStar credit for their moxie, though — running Windows, Linux or OS X on the same, relatively inexpensive and modifiable box as demonstrated in a promotional clip from PsyStar is the stuff übergeek dreams are made of.

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Wed, 16 Jul 2008 15:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5025979&view=rss&microfeed=true
<![CDATA[ More legal woes for electric-carmaker Tesla Motors ]]> Tesla Motors can't seem to manufacture cars reliably, but the company has become something of an assembly line for lawsuits. It's being sued by a vendor for breach of contract, suing a competitor for breach of contract and theft of trade secrets, and is now being sued by a former employee who alleges the company violated California labor laws and hopes to turn the case into a class action suit. Screw ambulance chasing, Roadster chasing may be the hot new thing among local lawyers. (Photo by Tinou Bao)

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Tue, 15 Jul 2008 15:20:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5025586&view=rss&microfeed=true
<![CDATA[ How Google could humiliate Viacom in YouTube lawsuit ]]> Worried that your obsessive kitten-video viewing records on YouTube would be exposed in Viacom's copyright lawsuit against YouTube? You can relax. Google and Viacom lawyers have reached an agreement to anonymize records of usernames and IP addresses in YouTube's video-viewing logs, which Viacom wants to examine to show patterns of willful copyright infringement on the site. The accounts of employees of both companies, however, aren't included in the deal. And that suggests a negotiating tactic for Google.

Viacom wanted to carve out the records of YouTube employees' video views to show that they knowingly viewed copyrighted content — and in some cases, uploaded it. But Google could easily use its records to show Viacom employees doing exactly the same thing. It would hardly be a shocker: Viacom's Ifilm site is rife with pirated videos, but the site's traffic is too insignificant for copyright holders to get fussed.

Showing Viacom's double standards is an obvious move. What Google's lawyers are probably too naive to contemplate: Scouring YouTube's video logs for truly embarrassing videos viewed by Viacom employees, and leaking them to gossip blogs. That would be a dreadful invasion of privacy, of course — exactly what Viacom was asking for, before it finally backed down.

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Tue, 15 Jul 2008 12:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5025501&view=rss&microfeed=true
<![CDATA[ eBay cleared on counterfeit lawsuit ]]>
"In a long-awaited decision in a four-year-old trademark lawsuit against eBay brought by the jeweler Tiffany and Company, Judge Richard Sullivan of the Federal District Court in Manhattan ruled Monday that the online retailer does not bear a legal responsibility to prevent its users from selling counterfeit items on its marketplace." [New York Times]

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Mon, 14 Jul 2008 15:40:00 PDT Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5025036&view=rss&microfeed=true
<![CDATA[ British gossips may lose access to juicy stories sourced from Bebo, Facebook ]]> Amanda Hudson allowed teenage daughter Jodie Hudson to throw a birthday bash at the British family's £4.4 million ($8.7 million) villa in Spain, but when pictures like this of underage drinkers passed out on the floor and accounts of stolen jewelry appeared in Blighty tabloids, the elder Hudson brought suit, alleging defamation under the U.K.'s strict libel laws. The fishwraps will hide behind local "fair comment" provisions, which indemnifies the retellers of factual accounts — the problem is, the accounts posted by daughter Jodie and friends to social networks like Bebo and Facebook may have been less than strictly factual. And, of course, the photos are protected under copyright provisions. Which may mean that British hacks might have to factcheck anything gleaned from websites. I can only hope this is one legal precedent that they don't export to the colonies.

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Mon, 14 Jul 2008 08:40:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5024404&view=rss&microfeed=true
<![CDATA[ Viacom says it never wanted to know all the videos you watched (but it did) ]]> Despite reports to the contrary, Viacom did not, as a part of its copyright suit against Google and YouTube, ask for "any personally identifiable information of any YouTube user" the company now wants us all to believe. It will get data from YouTube, but anything personally identifiying will be "stripped from the data." It's nice bit of PR revisionism. According to court documents, Viacom did "seek all data from the Logging database concerning each time a YouTube video has been viewed." Only after the court sided with Viacom, but public opinion did not, did Viacom agree to accept scrubbed data. (Photo by AP)

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Fri, 11 Jul 2008 10:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5024222&view=rss&microfeed=true
<![CDATA[ What's obscene? If you ask Google, less and less every day ]]> Do Floridians search more passionately for "bukkake" than "ethanol"?. Nobody thought to enter that data into the public record until Clinton McCowen, the proprietor of CumOnHerFace.com, was slapped with obscenity charges by the State of Florida, and his defense attorney turned to Google for aid. Last week, when the defendant settled out of court and accepted a three-to-five-year prison sentence, it seemed like the Google Trends defense was dead in the water. But McCowen's lawyer, Lawrence Walters, still believes Google's positive response to his subpoena — soliciting the frequency of sex-related search terms by community — bodes a shift in American morality. Simply put: Google has forced us all to confront just how kinky we are.

Is this a license to freak out? Walters says no:

The ultimate purpose for this analysis was to demonstrate that “community” for the McCowen prosecution was quite a bit more receptive to, and accepting of, sexual subjects than the prosecution either suspected or wanted to ever admit.

Should the Google Trends obscenity defense get its day in court, it's not likely anyone will be taking the stand, defending their sexual interests after being presented with a Google Doc breaking down their search history. What the frequency of search terms could reveal is that one's neighbors are searching for the same things, no matter what they tell their spouse. Just looking up how to hire an escort, for example, doesn't mean one's going to do it. But prosecutors may not be able to claim that a sex act disgusts a community when computer logs show no one can stop Googling it.

Everyone agrees that an individual's sexual curiosities should never stand trial. Overwrought privacy fears, however, shouldn't stop us from using anonymized search data to define community standards accurately and scientifically. A judge can no longer declare that he knows indecency when he sees it. Thanks to Google, we now have real data on the subject. Not using it seems obscene.

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Tue, 08 Jul 2008 16:20:00 PDT Melissa Gira Grant http://valleywag.com/index.php?op=postcommentfeed&postId=5023124&view=rss&microfeed=true
<![CDATA[ Court documents show Facebook's worth $3.75 billion, unless you're Microsoft ]]> Court documents in the ConnectU case reveal that when it comes to the price of Facebook common shares, Facebook's board values the company at $3.75 billion — far lower than the $15 billion valuation set by Microsoft's $240 million purchase of 1.6 percent of the company. As an investor, Microsoft owns preferred stock — worth more in part because, in case of an acquisition or an IPO, it's the stuff that gets sold first. That means Facebook board really thinks the company isn't worth $3.75 billion or $15 billion, but somewhere in between. Actual shareholders — including Facebook employees, we've heard — are more than willing to move their shares at a $4 billion valuation. The revealing court documents, in which ConnectU lawyers complain about Facebook's valuation, are embedded below. Before you feel too sympathetic, ask yourself: Isn't this the kind of thing lawyers are paid to know?

ConnectU vs. Facebook on settlement - Upload a Document to Scribd
Read this document on Scribd: ConnectU vs. Facebook on settlement

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Mon, 07 Jul 2008 08:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5022473&view=rss&microfeed=true