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Sarbanes-Oxley and Licensee Fiduciary-Based Tort Liability for Breach of Contract: City of Hope National Medical Center v. Genentech, Inc.
November 02, 2005
Over the years, courts frequently have been called upon to determine the nature and extent of the diligence required of licensees, assignees and other parties granted exclusive rights to exploit intellectual property. Dating back to Justice Benjamin N. Cardozo's opinion in <i>Wood v. Lucy, Lady Duff-Gordon</i>, 222 N.Y. 88, 118 N.E. 214 (1917), the courts consistently have held such parties to an implied promise to exercise some measure of diligence to commercialize the transferred property in those cases in which the grantor was completely reliant upon the productivity of the intellectual property user to generate royalties or other consideration.
Offers of Judgment and Copyright Litigation
November 02, 2005
Rule 68 of the Federal Rules of Civil Procedure provides a defendant with a means to encourage parties to settle their litigation before trial. A defendant may serve a plaintiff with an "an offer to allow judgment to be taken against [defendant] for the money or property or to the effect specified in the offer, with costs then accrued." F.R.C.P. 68. If the offer is not accepted by the plaintiff, and the "judgment finally obtained by the offeree is not more favorable than the offer, the offeree must pay the costs incurred after the making of the offer." <i>Id.</i>
Court Watch
November 01, 2005
Highlights of the latest franchising cases from around the country.
Belgium Implements New Franchise Disclosure Law
November 01, 2005
The tide of franchising regulation continued to sweep across Europe as Belgium brought its new franchise disclosure law into effect.
Why Some Franchisees Who Leave the Franchise System Become Competitors
November 01, 2005
A working draft of a paper by three Australian academic researchers offers some insights about why franchisees choose to leave franchising systems and, more importantly, what franchisors can do to make the exits less likely to happen and less likely to lead to litigation when they do. The researchers are Lorelle Frazer, Bill Merrilees, and Owen Wright, from the Service Industry Research Centre, Griffith University, Brisbane, Australia.
News Briefs
November 01, 2005
Highlights of the latest franchising news from around the country.
Net News
November 01, 2005
U.S. Senators Turning Up Heat on Peer-to-Peer Pirates Lawmakers pushed federal authorities last month to crack down on peer-to-peer (P2P) services that…
Leading Questions and Child Witnesses
November 01, 2005
The first part of this article discussed the case law of both state and federal courts with regard to the admissibility of child testimony and the suggestibility of child witnesses. The conclusion discusses whether the child witness understands that he or she can affect the outcome of the litigation, as well as other issues related to the reliability of the child's testimony.
Case Notes
November 01, 2005
Highlights of the latest product liability cases from around the country.
Nebraska Supreme Court Rejects Infancy Tolling Argument for Statute of Repose
November 01, 2005
In a case of first impression, the Nebraska Supreme Court has rejected arguments that the state's product liability statute of repose should be tolled for minors. <i>Budler v. General Motors Corp.</i>, 689 N.W.2d 847 (Neb. 2004). The ruling was en banc and unanimous. The court's decision was the result of thoughtful analysis and application of well-established principles of statutory interpretation. The impact of the ruling is significant, however, given the state's long-standing public policy of preserving a minor's cause of action until he/she reaches the age of majority.

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    “Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.
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  • Private Equity Valuation: A Significant Decision
    Insiders (and others) in the private equity business are accustomed to seeing a good deal of discussion ' academic and trade ' on the question of the appropriate methods of valuing private equity positions and securities which are otherwise illiquid. An interesting recent decision in the Southern District has been brought to our attention. The case is <i>In Re Allied Capital Corp.</i>, CCH Fed. SEC L. Rep. 92411 (US DC, S.D.N.Y., Apr. 25, 2003). Judge Lynch's decision is well written, the Judge reviewing a motion to dismiss by a business development company, Allied Capital, against a strike suit claiming that Allied's method of valuing its portfolio failed adequately to account for i) conditions at the companies themselves and ii) market conditions. The complaint appears to be, as is often the case, slap dash, content to point out that Allied revalued some of its positions, marking them down for a variety of reasons, and the stock price went down - all this, in the view of plaintiff's counsel, amounting to violations of Rule 10b-5.
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