Rival Calif. Papers Settle Lawsuit Over Ad Pricing
Areas of Focus | 2011/01/08 17:10

Two San Francisco newspapers engaged in a lengthy legal battle over predatory pricing have settled their dispute outside of court.

The San Francisco Chronicle reports that the Bay Guardian and SF Weekly announced a settlement Monday but did not disclose its terms.

The Guardian filed an antitrust lawsuit against SF Weekly in 2004, accusing the paper of slashing advertising prices to drive the Guardian out of business. A San Francisco judge in 2008 ordered SF Weekly to pay $21 million to its rival.

SF Weekly has said its low-cost ads reflected fair competition and did not violate antitrust laws.

Both alternative weeklies are distributed for free and rely on ad revenue to continue operating.



Court backs Uniloc in case against Microsoft
Areas of Focus | 2011/01/06 17:09

A federal appeals court reinstated a 2009 jury verdict Tuesday that Microsoft Corp. infringed on patents held by software maker Uniloc Inc., reversing a judge's decision to the contrary, but it also granted Microsoft a new trial on damages.

The U.S. Court of Appeals for the Federal Circuit said the jury's April 2009 verdict on patent infringement was supported by "substantial" evidence, so it reversed a federal judge's decision in September of that year that overturned the jury's verdict.

Irvine, Calif.-based Uniloc makes software that prevents people from illegally installing software on multiple computers. In a lawsuit filed in 2003, Uniloc argued that Microsoft's "product activation" system used in Windows XP, Office XP and Office 2003 programs infringed on several parts of a related patent, and that the software maker had copied Uniloc's technology rather than develop similar work on its own.

The jury in 2009 had found this to be the case, and awarded Uniloc $388 million in damages. On Tuesday, the appeals court agreed on the patent infringement but called the jury's damages award "fundamentally tainted," and granted a new trial on the damages.



Court blocks EPA plan to take over permits
Legal Topics | 2011/01/05 17:09

A federal appeals court has temporarily blocked the Environmental Protection Agency from taking over greenhouse gas permits in Texas.

The U.S. Court of Appeals for the District of Columbia issued the stay Thursday, pending further action by the court.

Texas Attorney General Greg Abbott had asked the federal appeals court in Washington to block the EPA from taking over greenhouse gas permits starting Sunday until the court could review the case.

The appeals court noted that order issuing the stay "should not be construed in any way as a ruling on the merits" of Abbott's motion.

Earlier last week, the U.S. Court of Appeals for the Fifth Circuit had declined to issue a stay that would delay the EPA's plans as Texas' lawsuit against the federal agency moved forward.



Judge strikes down NYC's gruesome tobacco ads
Areas of Focus | 2011/01/05 17:08

The city's campaign to scare smokers with grotesque images of decaying teeth or a diseased lung wherever tobacco products are sold was struck down Wednesday by a federal judge who concluded that only the federal government can dictate warnings that must accompany the promotion of cigarettes.

U.S. District Judge Jed S. Rakoff handed a victory to the nation's three largest tobacco manufacturers and the retailers who sell their products when he ruled on the legality of a 2009 city Board of Health code change requiring the display of smoking cessation signs where tobacco products are sold.

"Even merchants of morbidity are entitled to the full protection of the law, for our sake as well as theirs," Rakoff said. He released the written decision just days before an agreement among the parties to delay enforcement of the rule was to expire on Saturday.

He said the federal Labeling Act, first enacted in 1965, sought to balance public and commercial interests with a comprehensive federal program to deal with cigarette labeling and advertising. He said it was created in part to prevent "diverse, nonuniform and confusing cigarette labeling and advertising regulations." Part of the law dictated that no state law could impose a requirement or prohibition with respect to advertising or promotion of cigarettes, he noted.



Iowa Supreme Court upholds taxation of KFC
Areas of Focus | 2011/01/04 17:08

The Iowa Supreme Court has upheld a decision to levy corporate income taxes against fried chicken giant KFC.

At question is whether the state can impose income tax on revenue received by a company that doesn't have a presence in Iowa. KFC doesn't own any restaurants or have employees in Iowa. All KFC's in the state are owned by independent franchisers.

The Iowa Department of Revenue and Finance assessed KFC more than $248,000 for unpaid corporate income taxes in 2001.

Mark Schuling, the agency's director, says any corporation that collects revenue in Iowa should pay taxes.

KFC Corp., whose parent company is Louisville, Ky.-based Yum Brands Inc., challenged the assessment saying under Iowa law it was not subject to taxes because it didn't have property in the state.



Federal court denies stay for Texas in EPA case
Legal Topics | 2011/01/03 17:08

A federal appeals court has blocked Texas' effort to stop the Environmental Protection Agency from forcing states to regulate carbon dioxide and other greenhouse gases.

The U.S. Court of Appeals for the Fifth Circuit on Wednesday declined to issue a stay that would delay the EPA's plans as Texas' lawsuit against the federal agency moves forward. Texas is suing to stop the EPA from implementing a plan to regulate the gases that will start on Jan. 2.

The EPA took the unprecedented step this month of announcing it will directly issue permits to Texas industries after the state openly refused to comply with the regulations.

A spokeswoman for Texas Gov. Rick Perry said he was disappointed with the court's ruling but confident that the state will prevail "in the end."



Court: Couple Can't Have Adult Child's Records
Headline Legal News | 2011/01/03 17:07

An Iowa couple cannot have access to their adult child's physical and mental health records after being denied visitation with their grandson, the Iowa Supreme Court ruled Thursday.

The court issued its ruling in the Plymouth County case between Jerry and Susan Ashenfelter and their daughter, Amy Mulligan. The Ashenfelters sought their daughter's records after she decided it was in her 6-year-old son's best interest not to have contact with them.

A district court ordered Mulligan to produce her physical and mental health records to her parents, because the Ashenfelters had to prove their daughter was unfit to make a decision regarding grandparent visitation.

Mulligan appealed and the Supreme Court reversed the district court's decision, deciding that the records were protected by Mulligan's constitutional right to privacy.

"The district court abused its discretion in ordering Amy to produce her medical and mental health records to the Ashenfelters," the court wrote.

The high court's ruling refers to the Ashenfelters' request for a 2008 commitment court file, notes, records and reports from counseling sessions at a sexual assault and domestic violence center but does not elaborate. But no commitment file existed because Mulligan was hospitalized voluntarily, the court said.



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