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Legal news from Wednesday, January 30, 2013




Federal judge rules Samsung did not willfully infringe Apple patents
Michael Haggerson on January 30, 2013 3:05 PM ET

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[JURIST] A judge for the US District Court for the Northern District of California [official website] ruled [opinion] on Tuesday that Samsung [corporate website] did not willfully infringe Apple [corporate website] patents. If Samsung was found to have willfully infringed Apple's patents, the $1.05 billion jury verdict [JURIST report] against it could have been increased up to triple that amount [35 USC § 284 text]. The judge's ruling partially abrogates the jury verdict, which had found that Samsung willfully infringed five of Apple's seven asserted patents. However, the judge declined to overturn the jury's findings on validity and infringement and also refused to grant Samsung a new trial on the grounds that the trial was allegedly manifestly unfair. The judge also declined [opinion, PDF] to grant Samsung a new trial last month based upon alleged juror misconduct by the jury foreman. Samsung had alleged [The Verge report] that the jury foreman hid the fact that he had been involved in a lawsuit against a company that Samsung had recently acquired a controlling interest in and that he had revealed in post-trial interviews that he improperly swayed the jury.

Apple and Samsung have been embroiled in continuous patent litigation in courts around the world. Last month Apple agreed to withdraw claims [JURIST report] against a Samsung product that Samsung asserts has never been sold in the US in the second of the two patent infringement cases [case materials] taking place in the US District Court for the Northern District of California. In October the Dutch Rechtbank's-Gravenhage [official website] court ruled that Samsung did not infringe [JURIST report] on an Apple software patent. That same month, a UK court also ruled that Samsung did not infringe [JURIST report] on an Apple design patent. In the same time frame Apple appealed a Tokyo District Court ruling [JURIST report] which dismissed the company's claim that Samsung had infringed on its patents. At the beginning of October, the US Court of Appeals for the Federal Circuit [official website] reversed an injunction [JURIST report] against Samsung that prevented it from selling its Galaxy Nexus [product backgrounder].




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Illinois ex-governor Ryan transferred from prison to home confinement
Brandon Gatto on January 30, 2013 2:37 PM ET

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[JURIST] Former Illinois governor George Ryan [JURIST news archive] was transferred Wednesday to home confinement to serve the remainder of his six-and-a-half-year prison sentence imposed after several corruption-related convictions in 2006. The ex-governor was originally sent to a Chicago halfway house early Wednesday morning but was released [Chicago Tribune reports] within hours after his arrival. According to the Federal Bureau of Prisons [official website], Ryan did not receive preferred treatment in order to be released to his home, and there is no requirement to spend a minimum amount of time at the halfway house. Rather, the amount of such time is based on the offender's needs, including financial and family support, an approved release residence and health issues. To date, Ryan has completed more than five years of his sentence at the Federal Correctional Institution in Terre Haute, Indiana [BOP backgrounder] for multiple convictions of corruption and fraud in connection with a bribes-for-licenses scandal that occurred during his term as Illinois Secretary of State.

In August the US Court of Appeals for the Seventh Circuit [official website] upheld [JURIST report] a lower court's denial of a motion submitted by the former Illinois governor seeking his release from prison. In April the US Supreme Court [official website] had ordered the circuit court to reconsider Ryan's appeal in light of Wood v. Milyard [JURIST reports]. Ryan issued his first public apology [JURIST report] in December 2008 for the crimes that resulted in his imprisonment. In November 2007 he was sent to a federal prison to serve a six-and-a-half-year sentence stemming from several convictions of corruption and fraud [JURIST reports]. His trial began [JURIST report] in September 2005.




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Former Michigan Supreme Court justice pleads guilty to fraud
Matthew Pomy on January 30, 2013 1:29 PM ET

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[JURIST] Retired Michigan Supreme Court justice Diane Hathaway pleaded guilty on Tuesday to felony bank fraud as part of a plea agreement [text, PDF]. The charges arose [Detroit Free Press report] from Hathaway deeding her home in Florida to a relative while negotiating a short sale on the home, resulting in a $600,000 debt they owed to their bank being erased. The bank fraud charge against Hathaway alleges that she made false statements to the bank, fraudulently transferred property to others and failed to disclose available cash. Hathaway negotiated a plea agreement that allows for sentencing of up to 18 months in prison, three to five years of supervised release, fined up to $30,000 and pay restitution of up to $90,000. Hathaway is expected to be sentenced on May 28.

The charges were filed [JURIST report] earlier this month as a result of a Detroit news investigative report [WXYZ report]. Judicial corruption has become a growing issue internationally. In October the UN called on nations around the world to do more to combat judicial corruption [JURIST report], stating that it is a human rights issue because it can deprive people of their due process rights. It also said keeping the judiciary free from corruption is critical to "strengthen judicial credibility and independence." In 2010 the World Justice Project [advocacy website] released a report [JURIST report] ranking countries by their adherence to rule of law, which used factors such as level of corruption, rights and access to judicial remedies. The results of the report showed a trend that rule of law was lacking more in poorer countries than it was in countries with stronger economies.




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UN rights council calls on Israel to resume participation
Rebecca DiLeonardo on January 30, 2013 12:55 PM ET

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[JURIST] The UN Human Rights Council [official website] on Tuesday expressed regret [press release] that the Israeli government failed to send a representative to the Council's review of Israel's human rights record. The council had planned to begin its review of Israel's human rights record on Tuesday, as part of a two-week session in which the council is scheduled to evaluate the record of 14 nations. The evaluations are conducted regularly for all nations, according to the UN. Upon Israel's failure to appear for its review, the council issued a statement expressing disappointment in the country's decision and urging the Israeli government to resume participation in the evaluation. The council rescheduled Israel's evaluation for its next session, which will take place later this year.

Israel has been criticized recently for potential human rights violations, particularly with respect to the conflict in Gaza [JURIST news archive]. Last Month Human Rights Watch accused the Israeli Defense Forces of war crimes [JURIST report] after a November aerial bombing raid killed 12 civilians in Gaza. Earlier that week UN Special Rapporteur Richard Flak called on Israel [JURIST report] to fully implement and continue to support the recent conflict-ending ceasefire agreement with Palestinians in Gaza. In November UN High Commissioner for Human Rights Navi Pillay pressured [JURIST report] Israel to avoid strikes on civilian structures in Gaza. In August Amnesty International called on Israel [JURIST report] to investigate its treatment of Palestinian detainees, alleging that two had been mistreated. In June the UN also urged Israel to end its blockade [JURIST report] of the Gaza Strip, alleging that it was violating international law.




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Dutch court finds Shell subsidiary liable to Nigerian farmer for oil pollution
Cynthia Miley on January 30, 2013 12:28 PM ET

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[JURIST] The Dutch District Court of The Hague [official website] ruled Wednesday that a subsidiary of Shell [corporate website] could be held liable to one farmer for damages resulting from polluting the Niger Delta region in southern Nigeria. However, the court dismissed four other claims [Reuters report] brought by farmers and fishermen, along with Friends of the Earth Netherlands [advocacy website, in Dutch], against Shell seeking damages for lost income from pollution by oil pipelines and oil spills spanning back to 2004. Shell said the case would not set precedent because the parent company was not held liable, but the ruling could make it possible for other Nigerians to file lawsuits against Shell in the Netherlands. While the court accepted Shell's argument that sabotage caused the spills, it found that Shell should have prevented the sabotage at one of the facilities. Shell has said it would negotiate the amount of damages, but that appeals might postpone the negotiations. Both sides have three months to file an appeal.

In October the four Nigerian residents and an advocacy group told the Dutch court that Shell should be held liable [JURIST report] for damage from oil pollution in the Niger Delta. The suit was the first time a Dutch company has been sued for the alleged misconduct of its foreign subsidiary. Similar pollution lawsuits against Shell are pending in the US and the UK. The US Supreme Court [official website] heard oral arguments [JURIST report] in Kiobel v. Royal Dutch Petroleum Co. [SCOTUSblog backgrounder; JURIST news archive] in October. The court heard new arguments on whether three oil companies, including Shell, are immune from US lawsuits under the Alien Tort Statute of 1789 (ATS) [text] for alleged torture and international law violations that took place overseas. The court initially heard arguments last February and then directed the parties to file briefs on a new question [JURIST reports] for this term, which asked if the ATS can ever be used against against non-state citizens for atrocities committed in that state, and under what circumstances. In the UK, 35 Nigerian villages brought a suit against Shell in a London court in March, alleging Shell's slow response in cleaning up two oil spills [JURIST report] in a Nigerian river ruined their livelihoods.




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Federal judge accepts BP guilty plea, approves $4 billion oil spill settlement
Maureen Cosgrove on January 30, 2013 9:11 AM ET

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[JURIST] A judge for the US District Court for the Eastern District of Louisiana [official website] on Tuesday accepted a plea agreement [DOJ press release] between British Petroleum (BP) [corporate website] and the US Department of Justice (DOJ) [official website] for the company's role in the 2010 Deepwater Horizon oil spill [BBC backgrounder]. US Attorney General Eric Holder [official website] announced that BP pleaded guilty to 14 criminal counts, including felony manslaughter arising out of the deaths of 11 crewmen, as well as obstructing Congress and violating the Clean Water and Migratory Bird Treaty Acts. BP was also sentenced to pay $4 billion in criminal fines and penalties, with more than $2 billion of the settlement money going directly to the Gulf region. Holder praised the plea agreement and emphasized the significance of the result:
Today's guilty plea and sentencing represent a significant step forward in the Justice Department's ongoing efforts to seek justice on behalf of those affected by one of the worst environmental disasters in American history. I'm pleased to note that more than half of this landmark resolution - which totals $4 billion in penalties and fines, and represents the single largest criminal resolution ever - will help to provide direct support to Gulf Coast residents as communities throughout the region continue to recover and rebuild.
BP has also been placed on probation for five years and was ordered to take prophylactic measures to prevent future incidents, including the retention of a process safety and risk management monitor, an independent auditor and an ethics monitor to oversee safety and improve the company's code of conduct.

Tuesday's ruling was the most recent development in a long series of legal battles that have arisen from the Deepwater Horizon Crisis. Earlier this month, Transocean Deepwater Inc. [corporate website] pleaded guilty [JURIST report] to "negligently discharging oil into the Gulf of Mexico," in violation of the Clean Water Act (CWA) [EPA summary] and will pay $1 billion in civil penalties and $400 million in criminal penalties for its role in the Deepwater Horizon spill. Last month a federal judge approved [JURIST report] a final class settlement between BP and those who experienced economic and property loss stemming from the spill. In November BP executives pleaded not guilty [JURIST report] to criminal charges stemming from the oil spill. Earlier that month BP agreed to pay [JURIST report] $4.5 billion in penalties for felony misconduct for its role in the spill. A federal judge ordered [JURIST report] BP to share partial liability with Transocean in oil spill claims in January 2012.




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