Royalty arrangements within patent licenses have long been constrained by an almost 50 year old Supreme Court decision in Brulotte v. Thys Co that prevents collection of royalties after a patent has expired. The Justices have now agreed to revisit the precedent set by that often-criticized ruling in a current case, Kimble v. Marvel Enterprises, Inc.
Dec 23
New Rules For Patent Royalties?
Oct 30
SEC’s Tax Avoidance Approach to Disgorgement is a Win
The Securities and Exchange Commission (“SEC”) has been awarded a substantial win in its civil enforcement action against Samuel Wyly and Donald R. Miller, Jr. as the Independent Executor of the Will and Estate of Charles J. Wyly Jr. (the “Wylys”). The Court ordered the Wylys to pay $188 million plus pre-judgment interest associated with (i) their use of offshore trusts and subsidiary entities to trade in shares of four public companies they had acquired or founded and on whose boards the Wylys sat (collectively described as the “Issuers” and including Michaels Stores), and (ii) their failure to properly disclose their beneficial ownership of that stock.
Oct 28
SEC Can’t Agree Regarding Penalty for Fraudulent Revenue Recognition
A settlement agreement has been reached In the Matter of Lynn R. Blodgett, Adm. Proc. File No. 3-16045 (August 28, 2014) despite internal dissent on the part of the Securities Exchange Committee (“SEC”) as to the appropriate penalty. The circumstances involve a financial fraud action against two executives at Affiliated Computer Services, Inc. (“ACS”), Lynn Blodget, the president and CEO, and Kevin Kyser, the CFO. The SEC alleged that Mr. Blodget and Mr. Kyser improperly recorded revenues in an effort to meet analyst expectations.
Sep 15
Limited Information Does Not Prevent Valuation
A recent Appeals Court decision addressed the level of evidence required to demonstrate business value in a divorce proceeding. In Hugh v. Hugh, 2014, the wife filed a cross-appeal on a number of issues, including the trial court’s failure to value her husband’s business (“E-Tech”). The Appeals Court agreed that while the husband had effectively “stonewalled” discovery, the Trial Court had the ability and obligation to make a value determination based on the available evidence.
Sep 06
Three Strikes on Damages in CA Class Certification
Jones v. ConAgra Foods, Inc. demonstrates the damages-based hurdles that exist for obtaining class certification. Despite Plaintiff’s presentation of three different damages models (“full refund,” “price premium,” and “regression”), Judge Charles R. Breyer concluded each failed to demonstrate class-wide damages and denied class certification.
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Jan 01
Should a Senior Discount for Movie Tickets Still Apply?
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