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Legal news from Thursday, August 14, 2008 |
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US stock exchanges agree to centralize insider trading regulation
Devin Montgomery on August 14, 2008 1:53 PM ET

[JURIST] The US Securities and Exchange Commission (SEC) announced [press release] on Wednesday that it has reached a tentative agreement [PDF text] with ten US stock exchanges to centralize insider trading controls among the institutions. Under the plan, the programs to prevent and detect insider trading will be centrally controlled by the Financial Industry Regulatory Authority (FINRA) and a section of the New York Stock Exchange (NYSE) [corporate websites], instead of having each exchange run its own program. Under the Securities Exchange Act of 1934 [text], the markets are required to institute self-regulating controls, and the SEC has said the plan should make those controls more effective. In a press release [text], FINRA Senior Executive Vice President Stephen Luparello praised the plan: While U.S. equity markets have always coordinated very well with each other to detect and investigate insider trading, this agreement takes insider trading surveillance to a new level because it consolidates within FINRA and NYSE Regulation what used to be 11 discreet programs at each market center... As a result, potential insider traders, whether acting alone or in concert with others, and regardless of where they trade in the U.S., will be more readily identified in this new, more unified structure. The SEC will vote on whether to officially sign off on the plan after a period reserved for public comment. AFP has more.
Qwest Communications [corporate website] released its second quarter earnings report [press release; materials] this week, announcing an agreement [JURIST report] to pay an additional $40 million to settle a class action shareholder lawsuit resulting from an insider trading scandal [JURIST report]. Earlier this month, the US Court of Appeals for the First Circuit [official website] affirmed [opinion text; JURIST report] the dismissal of a shareholder securities suit against Biogen Idec [corporate website], in which the class of plaintiffs accused directors of violating the Securities Exchange Act by intentionally misrepresenting the safety of its multiple-sclerosis drug, Tysabri [informational website], in order to sell their shares at high prices.


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Indonesia Bali bombers appeal argues death sentence against Islamic law
Mike Rosen-Molina on August 14, 2008 11:32 AM ET

[JURIST] Indonesia's Constitutional Court has accepted a death penalty challenge filed by three men condemned for their roles in the 2002 Bali nightclub bombings [BBC backgrounder]. Mukhlas, Imam Samudra and Amrozi Nurhasyim [BBC profiles] argue that death by firing squad amounts to "torture" and is contrary to Islamic law [VOA report]. Lawyers say that the court does not have the authority to delay the men's scheduled execution, but that it would be "respectful" for the government to issue a stay until the court completes its review. The three men, all members of Southeast Asian terror group Jemaah Islamiyah (JI) [CFR backgrounder; JURIST news archive], requested they be executed by beheading [BBC report] rather than firing squad in a 2006 Supreme Court appeal. Australia's ABC News has more.
A lawyer for the three men had promised to bring their constitutional challenge after the Indonesian Supreme Court rejected the third appeal [JURIST reports] in July. Their first appeal had been rejected late last year, prompting an unusual second appeal, which was later withdrawn [JURIST reports]. In May, Indonesian police arrested [JURIST report] another JI member, Faiz Fauzan, in connection with the another set of Bali bombings [BBC report] in 2005. In March, an Indonesian judge handed down 15-year sentences [JURIST report] to two JI leaders, Zarkasih and Abu Dujana [BBC profiles] after convicting them of other terrorism charges.


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Georgia files complaint against Russia with International Court of Justice
Mike Rosen-Molina on August 14, 2008 10:44 AM ET

[JURIST] Georgia filed a complaint [PDF text; press release, PDF] against Russia with the International Court of Justice (ICJ) [official website] on Tuesday, alleging that invading Russian troops have engaged in murder, rape and mass displacement of civilians during the recent conflict between the countries. Georgia also accused Russia of ongoing violations of the 1965 Convention on the Elimination of All Forms of Racial Discrimination [text] since 1990 based on its removal of ethnic Georgians from South Ossetia and Abkhazia. Georgia is seeking an ICJ order that Russia pay compensation, withdraw its troops, and allow all displaced ethnic Georgians to return home. AP has more.
On Wednesday, Alexander Bastrykin, chairman of Russia's Prosecutor General's Office, said that his staff is collecting evidence [JURIST report] of war crimes allegedly committed by Georgian forces in the breakaway region of South Ossetia [BBC report]. Georgian officials have also accused Russian forces [JURIST report] of human rights violations and mass detentions in the region. On Tuesday, Russian President Dmitry Medvedev [official website] ordered an end to military action [press release] in the region, but Georgian President Mikheil Saakashvili [official website] said Wednesday that Russian troops had continued to advance [speech transcript].


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Military commissions advisor too aggressive: Guantanamo official
Devin Montgomery on August 14, 2008 9:15 AM ET

[JURIST] US Army Gen. Gregory Zanetti [official profile], deputy commander at Guantanamo Bay, testified [Miami Herald report] Wednesday that military commissions [JURIST news archive] legal advisor Gen. Thomas Hartmann [official profile] routinely bullied his counterparts and was inappropriately aggressive in seeking indictments against detainees. Zanetti's testimony fit in with earlier allegations [JURIST report] that Hartmann worked too closely with commission prosecutors despite his purportedly neutral role. Col. Lawrence Morris, the chief prosecutor in the case, said the complaints against Hartmann were more a function of personality conflicts than of actual misconduct. The testimony came at a hearing in the case of detainee Mohammed Jawad [DOD materials; JURIST news archive], whose lawyers are seeking to have charges against him dismissed due to alleged misconduct by Hartmann. AFP has more.
In May, lawyers for detainee Khalid Sheikh Mohammed [BBC profile; JURIST news archive] unsuccessfully moved to have charges against their client dropped because of similar allegations [JURIST report] against Hartman. Earlier that month, Hartman was disqualified [JURIST report] from participating in the military commission trial of detainee Salim Ahmed Hamdan [DOD materials; JURIST news archive], but has refused to resign [JURIST report] from his post. In April, former Guantanamo prosecutor Colonel Morris D. Davis [official profile, PDF] said Hartmann had questioned the need for open trials [JURIST report] at Guantanamo and was upset with the slow pace of the proceedings begun by Davis. Davis resigned [JURIST report; JURIST op-ed] from his position in October 2007, saying that politics were interfering with the prosecutions process.


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Second Circuit rules publisher to retain rights to Steinbeck novels
Kiely Lewandowski on August 14, 2008 7:12 AM ET

[JURIST] The US Court of Appeals for the Second Circuit [official website] held Wednesday that publisher Penguin Group [corporate website] will retain the right to publish ten John Steinbeck [National Steinbeck Center bio] novels. The heirs involved in this copyright action already receive a percentage of the sales proceeds, but initiated this action because they believed they were entitled to a greater portion. The Second Circuit recognized the provision of the Copyright Act [text] granting authors and certain family members the power to terminate prior assignments of copyright because so many "young authors enter into long-term contracts with publishers when their bargaining power is weak and their prospects for success uncertain," but held that this power is limited. The Second Circuit held [opinion, PDF]: [U]nder our view, authors or their statutory heirs holding termination rights are still left with an opportunity to threaten (or make good on a threat) to exercise termination rights and extract more favorable terms from early grants of an author's copyright. But nothing in the statute suggests that an author or an author's statutory heirs are entitled to more than one opportunity, between them, to use termination rights to enhance their bargaining power or to exercise them...In this case, Elaine Steinbeck had the opportunity in 1994 to renegotiate the terms of the 1938 Agreement to her benefit...By taking advantage of this opportunity, she exhausted the single opportunity provided by statute to Steinbeck's statutory heirs to revisit the terms of her late husband's original grants of licenses to his copyrights. It is no violation of the Copyright Act to execute a renegotiated contract where the Act gives the original copyright owner's statutory heirs the opportunity and incentive to do so. The district court below had granted summary judgment for one of Steinbeck's sons and a granddaughter, finding that their 2004 "notice of termination" to Penguin Group superseded a 1938 copyright agreement between the publisher and the author. Bloomberg has more. AP has additional coverage.
Results of a Computer and Communications Industry Association (CCIA) [advocacy website] report [PDF text; press release; JURIST report] released last year indicated that fair use exceptions [Copyright Office backgrounder] to US copyright laws create more than $4.5 trillion in revenue in the US annually, employ millions of workers, and represented one-sixth of the total US GDP in 2006. The Fair Use exception [text] to US copyright law permits limited unauthorized use of copyrighted material for scientific, educational, journalistic, or research purposes.


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