Regulation

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Understandably, companies have become more sensitive about protecting confidential, proprietary business information from disclosure to competitors and others outside the company.<br>A recent ruling by the United States District Court for the District of Columbia, <i>Venetian Casino Report v. EEOC</i>, 2006 WL 2806568 (D.D. Cir. 2006), demonstrates that such disclosures may occur in the most unexpected ways.

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In the post-Enron world, many public companies have come under intense scrutiny from the government. A diverse chorus of critics argues that the Department of Justice (DOJ) has gone too far, citing the overzealousness of line-level prosecutors, their failure to adhere to the measured tone struck by higher-level officials in their public pronouncements, and their general tendency to treat companies as racketeering organizations.

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As the copyright terms of many iconic, character-based works of the 20th Century near closure, owners of these works face the question as to what extent they can enjoy exclusive rights in the characters they have created. Enterprising third parties raise the related question: Does the expiration of copyright mean these works and characters can be freely exploited? Once a copyright term lapses, an original work is said to pass into the public domain, available for all to freely copy and exploit. However, continued trademark protection for a character may delay or complicate the character's passage into the public domain. A careful analysis of fundamental principles of trademark and copyright law and relevant case law illuminate certain legal guideposts for navigating through the complexities of character protection.

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<i>'Fraud!' cried the maddened thousands, and echo answered fraud;But one scornful look from Casey and the audience was awed.' Ernest Lawrence Thayer,</i> Casey at the Bat.As most readers will know, after this couplet in which the baseball player Casey scorns to dispute the umpire's call on the second strike, Casey proceeds to swing and miss the third pitch, striking out. Thayer's poem does not contain any indication that the slugger then sought to go back and contest the ruling on the second strike.Unlike the notorious batsman, however, insurance companies frequently bring actions to void coverage on the grounds of alleged misrepresentation or 'fraud' in the application for insurance, when they themselves have scorned to contest coverage upon first learning that they may have a basis to do so. Whatever the rules were concerning untimely protests in 1880s semipro baseball, today's insurance coverage law is clear: An insurance company waives any right to void coverage for alleged misrepresentations or omissions in the application, if, after it learns it may have grounds for such relief, it does not promptly seek the relief, but instead takes any action inconsistent with an intent to treat the policy as void.

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On Dec. 1, 2006, new amendments to the Federal Rules of Civil Procedure addressing discovery of electronically stored information will take effect unless Congress enacts legislation to reject, modify, or defer the amendments. The amendments to Rules 16, 26, 33, 34, 37, and 45, which were approved by the U.S. Supreme Court on April 12, 2006, attempt to bring the discovery rules up-to-date in an Information Age where the majority of new communication and information is now created, disseminated, and stored in electronic media.

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One question that has been raised in pre-emption decisions is the degree of deference to be shown an agency's explicit statement that it intends certain failure-to-warn claims to be pre-empted. For example, in the pharmaceutical arena, the Food and Drug Administration ('FDA') through the Department of Justice ('DOJ') filed amicus briefs in several lawsuits to reiterate its position on pre-emption of state law tort claims. In these briefs, the United States stressed that in the context of warnings, 'more is not always better.' <i>Amicus</i> Brief for the United States, <i>Kallas v. Pfizer</i>, No. 04-00998 (D. Utah Sept. 29, 2005) at 28. The FDA's regulation of prescription drugs ensures each drug's optimal use by requiring inclusion of only scientifically substantiated warnings. <i>Id.</i> Plaintiffs' failure-to-warn claims therefore 'stand as an obstacle' to the FDA's accomplishment of its congressionally mandated purpose of ensuring the public health and are therefore pre-empted. <i>See Id.</i> The FDA has also stated its position on pre-emption in the preamble to its Rulemaking for Labeling requirement, which became effective on June 30, 2006. <i>See</i> 21 C.F.R. '10.85(d)(1) (2006).

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In the legal realm, concern about the security of sensitive data during transport has never been higher. Attorneys from coast to coast have watched the headlines and read countless articles about files and tapes that have been lost or stolen while being moved from Point A to Point B ' during legal discovery activities, perhaps, or to satisfy compliance requirements.<br>As a result, law firms and corporate in-house counsel are investigating more dependable methods for securing information during transit, when it is most vulnerable. Many of these experienced denizens of e-data have concluded that encryption provides the greatest protection throughout the chain of custody, and that this locked-door method of data security can be achieved at a relatively reasonable cost.

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Traditionally, job-termination notices took the form of a pink slip of paper that employees found in their mailbox or in the envelope carrying their paycheck.<br>Recently, however, tech retailer Radio Shack used e-mails to give more than 400 employees notice of their involuntary separation from the firm. That move probably wasn't the use of technology many in the e-commerce, or the bricks-and-mortar, world envisioned for the business sector.