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See Patent Mediation on Your Horizon? by Kevin R. Casey at Stradley Ronon Stevens & Young, LLP, over at Metropolitan Corporate Counsel.  Here's an excerpt to wet your appetitie.

In efforts to enhance the success that the mediation program of the Federal Circuit has already enjoyed in its short existence, Chief Circuit Mediator Amend identified at the Conference eight impediments to settlement of patent cases on appeal.

The impediments are:

1. the case involves a "troll" (which might be defined as a non-inventive entity with no commercial product that acquires and asserts overbroad patents in an attempt to extort a toll from others) and the defendant company wishes to avoid a "bulls-eye" inviting further litigation;
2. party representatives with settlement authority are not present for the mediation session;
3. the party having lost the judgment appealed is reluctant to mediate (although perhaps counterintuitive, because the winning party might seem more reluctant, the cost of rolling the die on appeal may appear small relative to the cost already sunk into the case);
4. the patent was held invalid (one solution might be to ask the district court to vacate its invalidity holding as part of a settlement award);
5. counsel is representing the appellant on a contingent fee basis;
6. an emotional, entrepreneur patent owner appeals a loss and seeks "justice";
7. a summary judgment of non-infringement is appealed and the plaintiff seeks millions (the "lottery" case); and
8. a party believes it is entitled to attorney fees or enhanced damages. The court is in the process of refining the selection criteria for, and the techniques used in, its mediation program to take these impediments into account and improve the program.

Let me just say this -- justice -- is not an impediment to a successful mediation, it is a means of insuring a successful mediation.

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The IP ADR Blog will be hosting the Blawg Review this coming Monday.  If you've never participated in a Blawg Review before, check out the guidelines for submission here.

Though we've been reading Blawg Review since we put up our first tentative post on blogger (here!)  in June of 2006, as hosts, we're Blawg Review virgins.  So send your best posts this week to Blawg Review (follow those guidelines above) for possible inclusion in possibly one of the best BR's ever (we like to set our own bar high!)

And if you're a true Blawg Review virgin, here's how Blawg Review explains itself:

The Carnival of Law Bloggers

Blawg Review is the blog carnival for everyone interested in law. A peer-reviewed blog carnival, the host of each Blawg Review decides which of the submissions and recommended posts are suitable for inclusion in the presentation. And the host is encouraged to source another dozen or so interesting posts to fit with any special theme of that issue of Blawg Review. The host's personal selections usually include several that reflect the character and subject interests of the host blawg, recognizing that the regular readership of the blog should find some of the usual content, and new readers of the blog via Blawg Review ought to get some sense of the unique perspective and subject specialties of the host. Thanks to all the law bloggers who collaborate to make Blawg Review one of the very best blog carnivals of any genre.

Because I'm being sexually harassed by anonymous Ed., Diane Levin and Stephanie West Allen about my maiden Blawg Review voyage, I am retaliating with "Like a Virgin" from Moulin Rouge (welcome to Baz Luhrmann's stream of consciousness). 

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Because the introduction of the movie Magnolia narrates the best criminal law bar exam question in the history of film, period, I posted it for you over at the Settle It Now Negotiation Law Blog here.  Below, the haunting last scene of that dark comedy -- Aimee Mann's Wise Up -- below.

If you want to access the mind of criminal attorneys (who have all the fun!) then run, don't walk, over to Simple Justice for a satisfyingly meaty Blawg Review.  What?  No IP crimes?  Mediating sunglass and handbag counterfeiting disputes is as close as I ever get to criminal law and then the question is always an ethical one -- can you imply that charges will be dropped if a civil settlement is entered into.  I believe the answer is "no" but I see it done all the time.

Stay tuned here for next week's Blawg Review which will be penned by the members of the IP ADR Blog. 

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Bratz update from the WSJ Law Blog:  the Defendant was quoted as saying:

The verdict that was put against us was only based on racism.  I am saddened that today, in this day and age when for the first time in the history of America an African American is running for president, that there is still racism in this country.”

Mattel, on the other hand, believes Mr. Larian's behavior was wrongful based on the facts, not on racism.  As the WSJ notes:

Mattel said that it “finds this development to be very unfortunate. This trial, however, has been, and will continue to be, about Mr. Larian’s and MGA’s wrongful behavior.”

A few little local birds have hinted that settlement is unlikely in this case based upon the degree of zealous advocacy being practiced.  Still, MGA might take note of Qualcomm's increased stock value following its settlement with Nokia and ask itself how many trials and mistrials and how many appeals are in its future.  Are the market effects of this ongoing litigation worth keeping it alive or is it time to get together the financial geniuses of the type who put the Qualcomm/Nokia deal together. 

The weekend's WSJ story on the juror misconduct at issue, along with the Court's minute order below.

Thanks to the Wall Street Journal Law Blog for posting this Order in the Bratz/Mattel Litigation (Barbie-Bratz Juror Booted for Ethnic Slurs). 

Juror No. 8 made grossly inappropriate remarks concerning defendant Isaac Larian based on his ethnicity during jury deliberations. Specifically, Juror No. 8 indicated that her husband, an attorney, has told her about client or clients who are Iranian and who are stubborn, rude, stingy, are thieves, and have stolen other person’s ideas.

Although Juror No. 8 minimized her remarks and insisted that she did not mean to do
anything wrong, the relative consistency and degree of detail of the other jurors who
heard her make the remarks, combined with other factors that lend credibility to the
other jurors’ account of the remarks and not to Juror No. 8, leads the Court to
conclude that Juror No. 8 made the remarks, or something close to the remarks, set
forth above.

The good news in this sorry story is the immediate negative response of the other jurors to these statements.  

As the Court noted:

The juror foreperson immediately admonished Juror No. 8 for making the remarks
and strongly instructed that there was no room in the jury deliberation process for such remarks. Contemporaneously, several other jurors also registered their disapproval with Juror No. 8’s comments, some very emotionally.

One juror indicated that she was afraid that, if Juror No. 8 remained on the jury, she would overcompensate for Juror No. 8's apparent bias and not be fair to Mattel. Another juror indicated she felt uncomfortable continuing to serve with Juror No. 8 after the remarks were made.

Though the Court concluded that Juror 8's comments did not "effect or influence the decision made by the jury," MGA has understandably asked for a new trial. 

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. . . it's the smell of rubber hitting the road.

(right:  the scientific representation of rubber hitting the road -- I thought our attorney-engineer readers would appreciate this one -- image from the University of Hamburg)

I have a confession to make.  I am poised to become embroiled in a dispute about money and I've hired a litigator to explain to me my rights and possibly to pursue my remedies.

This is one of those moments when you have to decide whether you believe your own B.S. or not.  One of those times when you follow your own advice or fall victim to the almost irresistible pull of the way you've always done things.

Let me recount a conversation I had after my first year of mediation practice with a seasoned  mediator of commercial cases.  This is the conversation that marks my true transition from litigator to conflict resolution specialist.  The subject at hand was whether I would co-mediate a will contest with a mediator I'll call Joe.

Joe:  The family doesn't want to hire a lawyer.  Neither side has a lawyer.  They just want to mediate. 

Vickie:  But I know absolutely nothing about wills, trusts and estates.  The parties need to talk to a lawyer first to learn their rights and remedies.

Joe:  You still don't get it, do you?

Vickie:  What?

Joe:  It's not about rights and remedies, it's about interests.  

Vickie:  But how can they evaluate their interests without knowing their rights and remedies?

Joe:  Because they're not interested in what the law says -- they want to do what they believe is right for them as a family under the circumstances.

It took a while for this conversation to sink in.  I immediately re-visited one of the more painful periods of my life when I divorced my first husband in 1983.  I refused legal advice from my attorney colleagues because, I said, I was going to handle it myself ("a fool for a client").  Why?  Because community property laws didn't govern our relationship.  (gasps from colleagues)

I didn't need legal representation, I explained, because my husband of 7 years and I had long ago agreed that he would use his funds to put himself through graduate school and I would use my funds to put myself through law school.  We'd keep our finances separate until some time in the future when we decided to "marry" our financial affairs.  We never did and I wanted to keep my end of the bargain whether the law required me to do so or not (nope, no pre-nup). 

And that's what we did.  We had interests in looking ourselves in the mirror in the morning -- in honoring our wholly personal and idiosyncratic obligations to one another.  We had interests in having a resentment-free future relationship, no matter what form it took -- friends, distant acquaintances or even estranged former spouses.  We had interests in making peace with one another because we had mutual friends and we didn't want to divide them up between us like so much material property.  

I walked out of that marriage with nothing but my self respect and his last name, under which I'd gotten my law degree and become known in the legal community.  He got the house because he could afford to pay the mortgage and his mother had given us --not him -- the down payment.  Though I'd contributed to the house payments, he'd kept detailed records of monies he'd loaned me during law school and what I owed him was pretty much what my share of the value of the house was.  And though his mother had given the money to "us" and not "him," I knew she'd done so because she believed the marriage would last.  It wasn't her intent to give the money to "me."  And I loved her. She loved me.  I didn't want to burn that bridge. 

So, I rented furniture and moved to a one-bedroom apartment in a low-income community in South Sacramento.  I was poor again, for a time.  And emotionally bereft.  But I hadn't added a legal dispute to my troubles.  I felt as clean as I could in severing a relationship that had contributed so much to the emotional strength I needed to prepare for, commence and finish law school at the top of my class.  I couldn't have done it without my husband.  He contributed the love, the emotional stability and the undeviating belief in my potential that were necessary to my success in law school and in the first couple of years of my legal practice.

Those are interests.

I know, I know.  You're saying -- but those are personal interests and you're writing a blog about commercial interests between corporate entities and they have no feelings.

No.?  Taken your own emotional temperature lately?  Or that of your clients?  Stick around.  You're in the conflict resolution business no matter how sophisticated it is legally or complex it is financially.  And conflict only happens between people.  

If the insights from the social psychology of conflict could help you manage your clients, your staff and your case load more effectively and efficiently; if you were in better control of the escalation and de-escalation of conflict in your practice; if you were happier when you went to the firm or to court or to a deposition or to a settlement conference or to trial than you are now, would you want to learn something about a body of knowledge that could help you do that? 

I think you would.  I have been paying attention to these matters as my central occupation for four years now and the rubber is about to hit the road.  

You're in the right place.  Keep coming back.

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(photo:  from Mediation from Darkness to Light)

In the Qualcomm-Nokia battle of the giants, settlement took a dedicated negotiation team, trial counsel who believed the case would not settle, and a string of pre-trial motion victories.  Trial counsel is so immersed in pursuing victory -- as well he should be -- that he calls the settlement a "multi-billion dollar award." 

Before giving you an excerpt from the AmLaw story on the settlement -- Nokia-Qualcomm Agree to Play Nice -- I must make at least a few glancing references to the settlement issues.

• First, how about that 18% rise in Qualcomm's share value in the immediate wake of the settlement -- how much of the "multi-billion dollar award" will be off-set by external market benefits.
• Second, it's no surprise for Qualcomm to have a string of pre-trial motion victories on the eve of trial -- it was being represented by Cravath for goodness sakes!  The KING of the pure legal issue.  Quinn, as recent trial victories demonstrate, dominates the courtroom when the jury is seated.  Still, if my spotty Civil War history doesn't mislead me, it was the number of victories in a row, not the number of total victories for each side, that resulted in a "win" for the Union.
• Third, if the "negotiation team" is keeping the trial team in the dark -- as I'm now told by Fortune 500 GC -- "to keep the trial team focused" -- for goodness sakes, don't send the trial team to the mandatory settlement conference or high level (think Tony Piazza) mediation.  Send the negotiation team.  It won't be a surprise to either player that the trial attorneys are the equivalent of foot soldiers, deployed to serve purposes of which they are often blissfully unaware.  
• And finally, was the end result worth the direct and ancillary costs of the litigation -- not simply those appearing on the legal bill -- but the market cost.  I'm assuming both sides have high-level financial teams analyzing the cost and benefit of this series of litigations, regulatory battles and at least one arbitration proceeding, to determine when settlement could have resulted in the maximum benefit to both sides. 

That's why god created consultants, right?  

Settlement talks began in earnest on Monday between Steven Altman, Qualcomm's president, and Tero Ojanper, executive vice president of Nokia, after a pretrial hearing July 18 in which Qualcomm won all its motions, according to Cooley's Steven Strauss. "That seemed to change the settlement dynamic," he says.

Strauss says he was in the Delaware courtroom Wednesday morning, ready to start the trial, when the negotiators called to ask for a short delay. On learning that the case had been settled, Strauss said he was disappointed--because he had prepared to try the case for so long--but ultimately satisfied that his client's best interests had been served. He declined to discuss the financial details of the settlement, except to say that it is a "multibillion-dollar award that includes a large cash payment and an ongoing royalty."

Under the terms of the settlement, Qualcomm will give Nokia access to its chip technology as Nokia develops the next generation of its cell phones. Nokia in return has agreed not to use any of its patents directly against Qualcomm.

Nokia also will make an up-front payment to Qualcomm and will continue to pay royalties as part of the deal. Financial terms of the settlement were not disclosed.

Qualcomm's stock soared 18 percent as investors expressed relief that Qualcomm's licensing money won't run out anytime soon. The company still faces similar litigation brought by Broadcom Corp.

If you have a subscription (it's free) to the IP Law and Business website, here's an article on the best IP mediators in the business.

No, it doesn't mention any of the great mediators or arbitrators here at the IP ADR Blog.  But we'll be recognized soon.  Count on it!

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(above:  a conspiracy theory caught in the act)

From today's Wall Street Journal Market Watch We Learn that Microsoft says 'weird' Yahoo response killed deal 

 Microsoft Corp. executives told Wall Street analysts Thursday that the company ultimately failed to reach a merger agreement with Yahoo Inc. due to the Internet company's "weird" hesitance to negotiate in a timely way.

"It is a little weird," Microsoft Chief Executive Steve Ballmer said during the company's annual analyst day, "We had an offer out that was a 100% premium on the operating business of the company, and there wasn't a serious price negotiation ... until three months later."

Chief Financial Officer Chris Liddell added that Microsoft had been looking at late April as a "drop-dead stage" for negotiating a deal. "March would've been great," Liddell said.
"The deadline passed," Ballmer added.

In the absence of information we make stuff up.  And the stories we're telling ourselves do not include the one where our bargaining partner is laboring to find a way to fulfill our every little wish, satisfy our desires and meet our needs.  No, in the absence of information we develop massive conspiracy theories and attribute scheming, if not downright evil motives, to our deal maker counterparts when our offers or trial baloons encounter silence and delay.  

For anyone who hasn't gone to the dentist lately or suffered a painful or embarassing medical procedure, you know what you want.  You want your health care provider to give you the full pre-game tour. 

"First I'll put some of this numbing stuff on your gum, so the shot of novocaine won't hurt too much.  Then there will be some drilling."  (holds up the drill and switches it on).  "It will sound louder in your mouth than here in my hand, but I'll only have to drill for five minutes and it won't get any louder or more painful during that period of time."  Etc., etc. etc.

This is what you need to do for your bargaining partners, remembering that for many people negotiations are something we look forward to with the same degree of happy anticipation as we do for a root canal.

So, here's the game plan.

If you're not "at the table" with your bargaining partner but instead are negotiating over time, over the telephone, or, using correspondence or email: 

• say how long you believe it will take you to respond to the outstanding offer
• if you can do so without giving away your game plan entirely, say why it's going to take that long, i.e., "we have to loop the lawyers in and have a quick meeting with Bill, whose been notoriously hard to reach ever since he decided to tackle the May Mt. Everest climb.  But if we can't reach him, we'll see if Sam feels he can conduct the negotiation without Bill's authority," etc., etc., etc.
• "your proposed licensing scheme is interesting and novel; we'll have to run it by our lawyers and financial gurus.  It will likely take them . . . two weeks, a month, until the end of time . . . to give us their full analysis but whatever happens we'll give you an update or status report by [date certain]."
• "please, by all means feel free to call with questions without feeling that it will send a signal that you're too desperate for the deal." (this is dating 101 in high school; we should have outgrown it by this time but most of us haven't)

There are a trillion variations of these matters.  The point is -- whatever they are -- let your negotiation partner understand why you're taking so long and what it is that you're doing with the time other than planning a strategic nuclear strike on their primary manufacturing facility in Minsk.

Here's the academic explanation for what happens when negotiating parties fail to stay in contact with one another.  From Book Summary of Social Conflict: Escalation, Stalemate and Settlement by Dean G. Pruitt and Jeffrey Z. Rubin at CRInfo. 

Negative attitudes toward the other party tend to be perpetuated by three psychological mechanisms: selective perception, self-fulfilling prophecy, and autistic hostility.

First, people tend to select those perceptions that tend to confirm their existing attitudes, and ignore or discount information that would disconfirm their existing attitudes. People also tend to see negative behavior as stemming from an adversary's basic character.

Self-fulfilling prophecies arise when a party's expectations about their adversary cause them to act in ways that actually provoke the adversary's "expected" response. The adversaries (provoked) response is then taken as confirmation of the party's original expectation, and a vicious cycle ensues.

Vicious cycles can also occur when the other party, who is unaware of our expectations, does nothing to disconfirm them, and so implicitly confirms our worst expectations. People tend to break off interaction and communication with those they dislike.

When this happens people become stuck in autistic hostility, that is, their hostility is perpetuated by their refusal to communicate.

Get it?  Yes we see.

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From the Los Angeles Daily Journal:  Qualcomm, Nokia Settle Licensing Dispute

By Craig Anderson
Daily Journal Staff Writer

San Diego-based Qualcomm Inc. will get a big payout from Nokia Corp. to settle a long-running dispute over how much money it should receive to allow the Finland-based cell phone maker to license its patents.

The settlement was announced shortly after a trial between the two companies, set to begin Wednesday in the Delaware Court of Chancery, was abruptly postponed.

News of the 15-year licensing agreement sent Qualcomm stock soaring more than 18 percent in after-hours trading on Wednesday afternoon. Specific financial terms were not disclosed, but the deal includes an upfront payment and ongoing royalties.

As part of the settlement, Nokia will drop an antitrust complaint it had filed against Qualcomm before the European Commission.

The major sticking point between the companies were the royalties charged by Qualcomm to use its patented technology in Nokia cell phones and other devices. Nokia argued that the rates were too high.

"I'm very pleased that we have come to this important agreement," said Dr. Paul E. Jacobs, CEO of Qualcomm in a prepared statement.

"The terms of the new license agreement, including the financial and other value provided to Qualcomm, reflect our strong intellectual property position across many current and future generation technologies. This agreement paves the way for enhanced opportunities between the companies in a number of areas."

As part of the deal, Nokia has been granted a license under all Qualcomm's patents for use in Nokia mobile devices and Nokia Siemens Networks infrastructure equipment, according to the announcement. Nokia will not use any of its patents "directly" against Qualcomm.

To read remainder of story, click here (subscription required)

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Some cases just need to be tried.  See Law Firms Held Liable for Fees in 'Tissue of Lies' Patent Suit at Law.com.  Excerpt below:

A federal judge has ordered a patent holder and his lawyers to pay attorney fees for bringing an infringement suit based on "nothing more than a tissue of lies."

Irving Bauer had sued Romag Fasteners Inc., a manufacturer of magnetic snap closures for handbags, for infringing a 1996 patent on a new type of closure he claimed to have invented.

But Southern District of New York Judge Paul A. Crotty invalidated Bauer's patent last week, finding that it had been issued through iniquitous conduct. Bauer's testimony about his inventorship "bore clear indicia of fabrication," the judge said, adding that he was "convinced beyond a shadow of a doubt" that Bauer was no inventor. . . . . 

The judge held New York law firm Abelman, Frayne & Schwab, which initially represented Bauer in his suit against Romag, jointly and severally liable for Romag's attorney fees after Feb. 11, 2006. That was the earliest date, the judge said, Abelman Frayne should have realized expert testimony the firm planned to use to support Bauer's claim had been contradicted by testing.

"By persisting with this claim to trial, Abelman counsel played a central role in so unreasonably and unnecessarily multiplying the proceedings so as to give rise to bad faith litigation," the judge said.

Read the full article here.

And hey!  Be careful out there!

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MEDIATION 'MAGIC' HAPPENS WHEN NEUTRALS REVITALIZE JUSTICE ISSUES

By Victoria Pynchon 

There comes a point in every mediation when the attorneys need help in understanding their clients and the clients need to be reminded of the limitations the legal process imposes on everyone's efforts to resolve the conflict at hand. A mediator knows this time has come when the parties begin to complain that their counsel is "forgetting" to emphasize their most important losses; "editing" their stories or refusing to let them speak their minds. Sometimes it's the attorneys who alert the settlement officer to the lawyer-client communication gap.

"My client's expectations of success are unrealistic," they'll say, or, throwing up their hands, they'll exclaim, "She just doesn't understand. No matter how carefully I try to explain the law's limitations, she just won't accept them."

As litigators, we do forget that what we're doing for our clients - transforming their narratives of injustice into actionable claims - is as mysterious to the parties as quantum physics is to most of us.

On those occasions when it becomes clear that the parties need to re-visit their justice issues along with the limitations of the legal system, this is what I usually say:

"The dispute you're having exists in the world of injustice.

"Picture the earth.

"Now picture a grain of rice somewhere on the earth.

"The grain of rice represents the injustices the law will remedy. The earth represents the injustices the law will not."

Then I sketch a round green "earth" surrounding a small yellow square.

"It feels as if your attorney is 'editing' or 'shaping' or 'spinning' your story of injustice," I continue, "because she is. This tiny yellow area represents the facts necessary to obtain relief in court (damages or an injunction, for instance) or to defeat your opponent's claim (failure to satisfy a condition precedent; inability to state a claim the law will recognize and the like).

"The entire dispute - everything that happened inside the green circle - is what you, the client, want to resolve. Unfortunately, what you want would often require the disclosure of facts that would be harmful to your case. That's why your attorney doesn't let you talk in the presence of the 'other side' and asks you not to discuss the dispute with your opponent again. She's protecting you from revealing something in the green area that's bad for proving your case in the yellow square."

"Here's the good news. Mediators work in the green area - where injustices the law will not remedy reside. That's why we're here today in this conference room negotiating a 'deal.' As my friend the mediator Richard Millen says, 'People don't have legal problems. Only lawyers have legal problems. People have people problems.' But people don't seek out lawyers to help them resolve those problems unless they're accompanied by a justice issue.

"If you were only seeking money - as your opponent believes - you'd buy a lottery ticket or borrow the sums you need to open that restaurant you told me about. When you sought legal advice, you were asking your lawyer to "monetize" injustice. And that's what he's done. He calculated the value of your rights and called them remedies. He assessed the worth of your injuries or traced the transfer of your monies by your opponent to restore the benefit of their investment to you. He'll even ask the jury to punish the opposition by asking them to look at its net worth and then award enough damages to make it 'hurt.'"

On those rare occasions when mediation feels like "magic," its almost always because the mediator has helped the parties and their counsel re-vivify the justice issues that the legal dispute has flattened for the purpose of precedent, consistency and predictability. We're successful in this task when we allow the parties to restore to the conflict the life, texture, nuance and gray tones that "the law" has removed from it.

To continue reading, click here (subscription required).

DAILY JOURNAL NEWSWIRE ARTICLE
http://www.diailyjournal.com
© 2008 The Daily Journal Corporation.
All rights reserved.

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(image from Engadget Mobile post Qualcomm suit kindly asks Nokia to halt U.S. GSM sales)

From the American Lawyer Daily:

Nokia and Qualcomm To Start Trial Wednesday

The rivalry between Nokia and Qualcomm is the IP-geek equivalent of Yankees versus Red Sox or Lakers v. Celtics. The largest phone maker (Nokia) and the largest wireless chip provider (Qualcomm) have been at each others' throats in courts around the world, trying to resolve a licensing dispute with potentially billions of dollars at stake. The next battlefield is Delaware Chancery Court, where on Wednesday the two will head to trial. Steven Strauss of Cooley Godward and Evan Chesler of Cravath, Swaine & Moore will represent Qualcomm; Nokia will field Charles Verhoeven and A. William Urquhart of the recently ubiquitous Quinn Emanuel Urquhart Oliver & Hedges. (A broadcast of the trial will be available to subscribers of Courtroom Live.)

The ADR angle here: 

In Qualcomm Incorporated v. Nokia Corporation (06-1317), the Court of Appeals for the Federal Circuit considered the propriety of a district court's denial of a motion to stay litigation pending arbitration, which the district court based on it being “not satisfied under [the Federal Arbitration Act] that the issues involved...are referable to arbitration.” (citation omitted).

A licensing agreement between the parties includes a broad arbitration clause. While the technology involved in the patent infringement lawsuit, following amendment of Qualcomm's complaint to provide a more definite statement, did not appear to relate to the technology encompassed by the license agreement, Nokia asserted that one specific assertion made in the complaint involved technology that it “...believes is licensed under the...Agreement.”

Accordingly, Nokia attempted to steer the issue to arbitration via the arbitration clause in the agreement and the filing of the motion to stay litigation.

Continue reading here from FedCirc.us.

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We LOVE the law here at the IP ADR Blog.  And we're huge supporters of the Rule of Law as society's Great Leveller.  We're not, however, all that enamoured of lawsuits as a means to create business opportunity or to stem business losses.

Take a look, for instance, at Bill Gates recent comment about the use of Microsoft Windows in China -- the system is used on 90% of Chinese PC's but most of those OS's are pirated.  

Officially, the software giant has taken a firm line against piracy. But unofficially, it admits that tolerating piracy of its products has given it huge market share and will boost revenues in the long term, because users stick with Microsoft’s products when they go legit. Clamping down too hard on pirates may also encourage people to switch to free, open-source alternatives. “It’s easier for our software to compete with Linux when there’s piracy than when there’s not,” Microsoft’s chairman, Bill Gates, told Fortune magazine last year.

For the full article from the Economist -- Piracy -- Look for the silver lining Piracy is a bad thing. But sometimes companies can turn it to their advantage, click here.

h/t to slashdot

And to show you how deeply our commitment to the Rule of Law runs and why watching television when I was a kid wasn't a completely losing proposition . . . here's Andy Griffith (and Opie aka Director Ron Howard) on eavesdropping . . . . "the law can't use this kind of help"

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The Perils of Using Email in Litigation - Get more Legal Forms

Enlarge by clicking on upper right hand arrow.

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Considering a settlement?  Conducting a risk analysis?  Pay attention to those cognitive biases.

From Psychology today -- 10 Ways We Get the Odds Wrong

Our brains are terrible at assessing modern risks. Here's how to think straight about dangers in your midst.

The human brain is exquisitely adapted to respond to risk—uncertainty about the outcome of actions. Faced with a precipice or a predator, the brain is biased to make certain decisions. Our biases reflect the choices that kept our ancestors alive. But we have yet to evolve similarly effective responses to statistics, media coverage, and fear-mongering politicians. For most of human existence, 24-hour news channels didn't exist, so we don't have cognitive shortcuts to deal with novel uncertainties.  . . . 

Our emotions push us to make snap judgments that once were sensible—but may not be anymore.

I. We Fear Snakes, Not Cars -- Risk and emotion are inseparable.

II. We Fear Spectacular, Unlikely Events -- Fear skews risk analysis in predictable ways.

III. We Fear Cancer But Not Heart Disease -- We underestimate threats that creep up on us.

IV. No Pesticide in My Backyard—Unless I Put it There -- We prefer that which (we think) we can control.

V. We Speed Up When We Put Our Seat belts On  -- We substitute one risk for another.

VI. Teens May Think Too Much About Risk—And Not Feel Enough -- Why using your cortex isn't always smart.

VII. Why Young Men Will Never Get Good Rates on Car Insurance -- The "risk thermostat" varies widely.

VIII. We Worry About Teen Marijuana Use, But Not About Teen Sports -- Risk arguments cannot be divorced from values.

IX. We Love Sunlight But Fear Nuclear Power -- Why "natural" risks are easier to accept. 

X. We Should Fear Fear Itself -- Why worrying about risk is itself risky. 

For full article, click here!

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Sometimes lawsuits, demand letters and take down notices have a larger purpose than simply making a claim against a single individual.  Whether or not AP intended to engage the entire blogging community in a public conversation about fair use of copyrighted news content content, engage them it did. 

Now AP has settled with the original target, the Drudge Retort, while engaging in one of our most highly recommended dispute resolution activities -- talking to the stakeholders about ways in which all parties can mutually benefit one another.  

See abbreviated AP announcement below. 

AP, blogger resolve dispute over copyright
By SETH SUTEL – Jun 20, 2008

An AP statement Thursday night said the company had provided additional information to Cadenhead about posting its material online, and both sides considered the matter closed. It also said the AP was having a "constructive exchange" with a "number of interested parties in the blogging community" about the relationship between bloggers and news providers, and intended to continue the dialogue.

Earlier this month the AP sent a legal notice ordering Cadenhead to take down seven entries on the Drudge Retort, his takeoff on the Drudge Report. The news agency said the postings were violating the AP's copyright. . . .

Cadenhead said in his blog post that he wouldn't reveal details of his discussion with AP attorneys about their specific objections to the blog entries until the AP releases guidance for online use of its content.

Duchene said he expected disputes between news organizations and bloggers over permissible use of copyright material online to continue, but he also said he was "hopeful that future disagreements can be handled in a less confrontational manner." 

Here's the Drudge Retort post about the settlement.

 

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When I was practicing, I'd tell my clients that litigators and trial lawyers were the profession's surgeons.  We were the people they wanted to avoid because surgery is costly and potentially life-threatening.  

Transactional lawyers, I stressed, were the Internists of the profession and they should be consulted early and often.

Because we can't prevent litigation any more than we can prevent strokes and heart attacks, we have INSURANCE.  If your business has protectable trade secrets, a patent portfolio, valuable copyrights, coveted trademarks/names or any other type of intellectual property (and all businesses do) mosey on over to the Gauntlett on Insurance Blog's recent post Restoring Balance to the IP/Insurance Interface.

Most major corporations have procedures, either through existing personnel or through the aid of consultants, that:

• Identify and evaluate the full range of IP;
• Determine the level of patent, copyright or trademark infringement by the company or others;
• Reduce exposure to legal action by managing risk;
• Protect residual risk through insurance.

The challenge comes in the last component through identifying products in the marketplace that can create similar opportunities for reimbursement and designing protocols to assure that the maximum policy benefits available to the company are properly secured.

How challenging is it to "assure that the maximum policy benefits available to the company are properly secured"?  Allow me to share my experience.

Though I have pursued coverage claims and bad faith actions against insurance carriers, by far the vast percentage of my coverage litigation practice was on behalf of insurance carriers providing excess CGL or D&O insurance to Fortune 50 companies.  Occasionally (not often) I'd also take a look at smaller claims to determine in the first instance whether coverage was available.  Some of those claims were from companies seeking coverage for patent or copyright infringement litigation.  

Here's my advice.  If you believe yourself vulnerable to suit, don't rely solely on your risk management department.  Get an annual insurance check-up by a specialist in IP insurance coverage issues.  Then get a second opinion from an insurance litigator.  I know that sounds expensive.  But it's a drop in the bucket compared to the first six months of IP litigation.  Think:

• electronic discovery
• complex procedural manuevering
• depositions of your key personnel
• media coverage

Get the picture?  Not only do you not want to hire insurance coverage litigators, you never ever want to see a mediator or settlement officer with insurance company experience.  Why not?  Because by the time you're willing to sit down with the opposition to settle a case with the aid of a third-party neutral, you've already lost no matter how great a deal you cut to terminate the litigation.

So if you can't save yourself from having a coronary, at least buy yourself a policy of insurance that will cover the likely (and unlikely) claims that put your company's life at risk.

(and, yes, insurance companies do look for ways to deny you coverage; make it improbable or very very risky for a carrier to do so)

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From the AmLaw Daily, we learn that Kirkland & Ellis on the Sidelines as Alcatel-Lucent Seeks To Reinstate $1.52 Billion Verdict

Last year Kirkland & Ellis IP partner John Desmarais won some serious bragging rights when a California jury awarded his client Alcatel-Lucent $1.52 billion in a patent infringement trial against Microsoft. For a little while there, it was the largest verdict of its kind in history. But the bigger they are, the harder they fall: Last August San Diego federal district court judge Rudi Brewster threw out the verdict. Desmarais promised an appeal.

And sure enough, Desmarais's dream verdict is now in the hands of a three-judge panel at the Court of Appeals for the D.C. Circuit, which heard oral arguments on Alcatel-Lucent's appeal on Monday.

Click here for remainder of article.

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Thanks to LexMonitor for sending us to Rebecca Tushnet's 43(B)log  alerting us to Harvard's  Right To Teach: an Educational Fair Use Project.  We've often said that the best alternative to litigation is prevention -- here the attempt to create a "Statement of Best Practices" that will

help draw to the surface and articulate a consensus in the academic community about the scope and limitations of user rights in a contemporary culture that is, on the one hand, increasingly participatory and technologically innovative and, on the other hand, increasingly marked by the expansion and tightening of traditional copyright.

Read the full project proposal here (.pdf)

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Thanks to the Amlaw Daily (courtesy of writer Nate Raymond) for bringing us this shocking news -- Kasowitz Benson: Former IP Head Harassed 12 Women

The former head of intellectual property at Kasowitz, Benson, Torres & Friedman sexually harassed at least 12 female employees at the firm--including making advances on seven of them in one night--before he was fired in December, according to a lawsuit filed Monday by the firm.

The complaint, filed in New York state court, is the first detailed account explaining why Kasowitz Benson says it fired Jeremy Pitcock, an IP litigator who joined from Simpson Thacher & Bartlett in 2006. Pitcock denies sexually harassing anyone, let alone having engaged in a pattern of sexual harassment.

When you have a dozen women willing to jeopardize their careers (more on that later) to bring down a powerful law firm partner, my innocent-until-proven-guilty default flags.

(pictured:  Bill Clinton, our former Sex-Addict-in-Chief, with the lovely Sheryl Crow -- think he didn't hit on her?)

What does this have to do with IP ADR?  A lot.  These are the human frailties -- some enlarged to actionable claims leading to disgraced departures -- for which the appropriate alternative dispute resolution technique is prevention.  Counseling.  Apology.  Forgiveness.  Reconciliation.

As a woman who was an early entry into the profession, I haven't had a lot of sympathy for my younger cohorts.  I should do better in this regard but my own attitudes remind me that some old ideas are really really hard to change.  Like the idea that women can take care of themselves.   The idea that ridicule is the strongest antidote to unwanted attention (I have a great story about this but can't "print" it in a "family" blog).  The recollection, from an era of Queen-Bee-Syndrome, of the solidarity and sisterhood we shared around the issue of our male superiors' unwanted carnal attentions.  

And I have been known to say that the power balance between a 25 year old woman and a 45 year old man is heavily weighted in favor of the woman. 

Unfortunately, senior men "hitting" on younger women will always be with us.  It's the degree of ineptitude that generates the type of news you see here.  Twelve women?  That's not only a management problem (HR is asleep at the wheel).  It's an addiction problem.  If caught early enough, the offender can be channeled into a treatment program rather than ejected from the firm.  In the case of a senior IP litigator, that ejection can cost the firm millions to tens of millions of dollars.

So here are some resources that everyone -- including those who are most protected against their own bad behavior -- senior IP litigation or transactional rainmakers -- can use to nip this sort of thing in the bud.

For a quick all-firm tune-up, call Julie Yanow at EquiLaw. 

It's not just that Julie is one of my best friends.  It's that her common sensical training courses are fun and hilarious because that's just who she is. 

Even I'd pay to see her speak! 

And she most assuredly does not share my pull-yourself-up-by-your-bootstraps, buck-up, take it like a . . . . man? attitude toward sexual harassment. 

See her Training page here. 

Here are 12 Questions from Sex Addicts Anonymous for self-diagnosis in the privacy of your room.  Your attendance at SAA meetings is something you're allowed to keep secret until you decide (if ever) that you want to share this life-transforming experience with others.  (though not a member, I have seen thousands of happy people transformed by the principles used in SAA, all of which are borrowed from the original 12-step AA program). 

See also the Sex and Love Addicts Home Page -- an unusually well-designed site for a 12-step program)

For further reading, check out:

Sex Addiction Treatment and Recovery from the Dual Diagnosis Blog

What I Wish I'd Know About Sex Addiction Twenty Years Ago 

Definition of Sexual Harassment from the About.com Human Resources Blog.

This dated but still relevant article from Fortune Magazine - Addicted to Sex A PRIMAL PROBLEM EMERGES FROM THE SHADOWS IN A NEW--AND DANGEROUS--CORPORATE ENVIRONMENT

Addicted to Love:  Sex, Love and Compulsion here.

Sexual Compulsivity:  The Secret Addiction (this is an link to the book with an interview with an nationally recognized expert at the Missouri State Bar site)

Here's a recommended reading list provided by SexHelp.com

The SLAA Journal (if you read this and "hear" your own story being told, it's time to venture out of your secret space to meet up with others who share your challenges and are successfully meeting them).

Finally, a little humor from the HR Legal Source (those offended by stuff that's funny, please skip this video) : 

Original Link : GE Sexual Harassment video Uploaded by: xRacer

HR people?  Any additional resources you'd suggest?

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