Tomorrow is the first anniversary of the “new” electronic data discovery (“EDD”) rules.* In fact, the EDD rules were not new, they were intended to be a codification of the basic rules already in use by the various district courts. Despite that, a study conducted by LexisNexis at the October Association of Corporate Counsel 2007 Annual Meeting in Chicago found that corporate counsel continue to struggle with implementation of the rules and confusion about what the EDD rules required. For example, 70% of respondents believed that electronic files had to be produced in their native formats. In fact, you simply must work with opposing counsel to decide what format to produce the files in, either their native formats or some chosen standard format. This confusion should not have surprised anyone. Even in IP circles, lawyers rarely fully understand a company’s IT infrastructure and the IT people rarely understand the legal process. This disconnect can be very dangerous when it comes to meeting EDD obligations.
If your company is still struggling with the EDD rules or, worse, avoiding them completely, you can solve your problems with some relatively simple actions. First, take a breath, open your copy of the Federal Rules and read them thoughtfully and then set up a meeting with the head of your company’s IT infrastructure, the head of your company’s legal department or litigation staff and an outside counsel with EDD experience. Working together, come up with a general plan for gathering and preserving the appropriate information as cases arise. Pay special attention to how your plan fits with the company’s overall data retention policies (yes, your company should have data retention policies and the policy should be followed carefully) and how to suspend any periodic or automatic data removal when a litigation hold needs to be instituted. Once you have a plan, meet periodically to update it and to ensure that it is being followed. If you are prepared for EDD, it is an excellent litigation tool. If you are not, it is a potential disaster.
For more on EDD, check out these blogs:
Alextronic Discovery
Dennis Kennedy
EDD Update
E-Discovery Team
E-discovery 2.0
Electronic Discovery Blog
Electronic Discovery Law (another LexBlog blog)
Ride the Lightning
Sound Evidence
Hat tip to the EDD Blog Online via Legal Blog Watch for identifying the LexisNexis survey..
* Tomorrow is also the date that the next set of changes to the Federal Rules becomes effective. Fortunately, these changes are focused on making the rules more readable instead of adding or changing obligations. But once you are prepared for the EDD rules, you should still turn back to your copy of the Federal Rules and read through the revisions.
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November 2007
Electronic Filing Guide
Electronic court filings (ECF) are now required in the Northern District, as well as federal courts nationwide with a handful of exceptions such as the Western District of Wisconsin. I do not claim to be an ECF whiz (I generally have someone to handle the finer points for me), but it is important for attorneys to understand the finer point of electronic filing, you never know when your people will not be available to do it for you or when knowledge of ECF mechanics may change how you put together your filing. I have thought about writing an ECF guide for some time, but the Lawyer’s Right Hand* beat me to it, and did an excellent job. Click here for a very comprehensive look at what not to do when filing and what matters to the Clerk’s office.
* This is a great site, that every litigator should read. If you do not have time to scroll through all of the entries, check out the ECF post and the excellent discussion of commas — a great explanation of how to use one of the most important and misused grammar building blocks, although we disagree about whether a comma is required before the conjunction in a simple series. You will be hooked.
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Can Flowers be Sculpture?
Kelley v. Chicago Park District, No. 04 C 7715, Slip Op. (N.D.Ill. Sep. 14, 2007) (Coar, J.).
Judge Coar ordered the parties to submit further briefing regarding whether plaintiff Chapman Kelley’s (“Kelley”) work of art “Wildflower Works” (“WW”) was copyrightable as a sculpture pursuant to the Copyright Act and the Visual Artists Rights Act (“VARA”). Kelley originally installed his WW in Chicago’s Grant Park in 1984 pursuant to a permit from the City of Chicago. WW was an installation of wild flowers in two elliptical shapes surrounded by gravel — click here for pictures from Kelley’s website — that Kelley replanted and tended each year. Chicago periodically renewed the permit until 1994, when Kelley continued his WW pursuant to an oral permit renewal. Then in 2004, Chicago fenced off WW, effectively destroying it. Kelley then brought this suit alleging copyright infringement, violation of VARA and various state law claims.
The Court considered various issues relating to jurisdiction and the validity of the alleged oral permit renewal. But the Court held that it lacked sufficient information to resolve the issue of whether WW was protectable as a sculpture pursuant to the Copyright Act and VARA. The Court struggled with whether a growing, evolving planting of flowers could be considered a sculpture using common dictionary definition. But the Court also acknowledged the artistic value of arranging flowers and plants, which precluded a holding that WW was per se not a sculpture:
to do so would ignore such exquisite examples of living art as topiaries, which are created by clipping and trimming living plants, usually bushes, into exotic shapes.
This is an interesting issue. I appreciate the value of flower arrangements and the beauty of WW specifically, but calling a collection of spontaneously growing, changing plants a sculpture does not fit the traditional definition anymore than calling a football game (a particular arrangement of spontaneously moving living things) a sculpture does. It may be more akin to a choreographed ballet, but flowers cannot follow a pre-set script.
Update: The Court held a two-day bench trial in late September. A minute order indicated that the Court issued preliminary findings at the conclusion of the trial (which appear to have been favorable to Kelley based upon various accounts suggesting that Kelley won the trial), but then ordered the parties to: 1) brief certain issues (presumably including whether WW was copyrightable or otherwise protected by VARA); and 2) provide the Court with proposed findings of fact and conclusions of law. Those filings were delayed by settlement efforts which appear to have fallen through. The requested briefing is now set to be completed in mid-January with the Court’s decision to follow without further hearing. I will keep you posted on the outcome. But if you want more information on the case before early 2008, click here for the Final Pretrial Order which gives a sense of the disputed issues and the CV’s of the experts.
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Continue Reading Can Flowers be Sculpture?
Trudeau Held in Contempt for Claiming Diet was “Simple”
Federal Trade Comm. v. Trudeau, No. 03 C 3904, 2007 WL 4109607 (N.D. Ill. Nov. 16, 2007) (Gettleman, J.).
Judge Gettleman held defendant Kevin Trudeau (“Trudeau”) in contempt for violating the Court’s Stipulated Permanent Injunction (the “Injunction”). In 2003, plaintiff Federal Trade Commission (“FTC”) filed suit against Trudeau* alleging, among other things, false advertising pursuant to the FTC Act, 15 U.S.C. Section 52(a). The advertisements at issue included various informercials in which Trudeau allegedly claimed that the coral calcium in his supplement Coral Calcium Supreme could treat cancer, multiple sclerosis and heart disease, among other medical conditions. In settlement of the FTC’s suit, the parties agreed to and the Court entered the Injunction. The Injunction generally prohibited Trudeau from producing infomercials, with the exception that he could make infomercials promoting books, so long as the infomercials did not misrepresent the books. The FTC argued that a series of three infomercials promoting Trudeau’s new book The Weigh Loss Cure “They” Don’t Want You to Know About (the “Book”) violated the Injunction because Trudeau made claims in the infomericals that the weight loss program described in the book was “easy,” “simple” and prevented weight gain forever once complete.
The weight loss plan had four phases, the last of which was to be followed for the remainder of a person’s life. Each phase had various requirements (or strong recommendations) including colonics, various organ cleansings, avoiding use of over the counter or prescription drugs, daily walks and eating only 100% organic foods. Phase two also required daily injections of human chorionic gonadotrophin (“HCG”). HCG is available only by prescription in the US, but the FDA specifically stated that it should not be used for treating obesity. Trudeau argued that the claims were mere puffery and opinion which, therefore, did not violate the Injunction. But the Court held that Trudeau’s claims that the Book detailed an “easy” diet were false. Furthermore, Trudeau’s claims that once the diet was complete you could eat anything you wanted were false because the fourth phase of the diet lasted for the remainder of the dieter’s life. The Court, therefore, held Trudeau in contempt and set a hearing to determine an appropriate remedy.
This opinion is also an excellent example of engaging judicial writing. It has one of the most engaging introductions I have read with appeal beyond just the legal community:
Kevin Trudeau is one heck of a salesman. He is also a prolific author, self-described consumer advocate and “exposer of corporate and government corruption.” He is also an ex-felon and, as discussed below, a contemnor of this court’s orders. His favorite marketing tool is the “infomercial,” a lengthy television advertisement that takes the form of a mock interview. Through this medium Mr. Trudeau has sold various products that he claimed could: cure numerous diseases, such as multiple sclerosis, cancer, substance abuse addictions, and arthritis (among many others); reverse hair loss; improve memory; and (apropos to the matter before the court) cause dramatic and permanent weight loss.
(Footnotes omitted). This is the sort of introduction that engages a reader and opens the law to those without legal degrees.
* Click here for a copy of the complaint.
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Continue Reading Trudeau Held in Contempt for Claiming Diet was “Simple”
RRK v. Sears: Jury Instructions
As promised last week, the jury instructions are now available — click here for a copy. Additionally, although the verdict form is not available electronically, the Court’s minute order (click here for a copy) gave some additional detail. The jury found for plaintiff RRK on each of eleven counts and awarded damages as follows:
Damages Award RRK’s Actual Losses $11,664,105
Sears’s Unjust Enrichment $1,688,136
Punitive Damages $8,011,344
Total Damages $21,363,585
For more on this case, click here for the Blog’s archives.
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Continue Reading RRK v. Sears: Jury Instructions
Happy Thanksgiving
The Blog’s first anniversary was in September.* I chose not to do an anniversary post because I was very busy with client matters and because I did not think there was much to say about the anniversary. But the Thanksgiving holiday reminds me that there is something to say — thank you. I am thankful for all of the Blog’s readers. The Blog is a lot of work, but I enjoy IP litigation and I enjoy communicating with all of you about it. I look forward to another year of blogging about Chicago’s IP happenings. And as always, I welcome your comments and suggestions about the Blog and what I can be doing better or differently.
Happy Thanksgiving
* Much like my dog Gert’s birthday (she was a rescue dog), it is difficult to pin down the exact date the Blog began.
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Jury Returns $21.5M Trade Secret Verdict
RRK Holding Co. v. Sears, Roebuck & Co., No. 04 C 3944, 2007 WL 495254 (N.D. Ill. Feb. 14, 2007) (Coar, J.).
The Chicago Sun-Times is reporting that a jury returned a $21.5M verdict, including $8M in punitive damages, Monday for plaintiff RRK Holding Co. (“RRK”) in its Illinois Trade Secret Act (“ITSA”) suit against defendant Sears, Roebuck & Co. (“Sears”). RRK alleged that, pursuant to a nondisclosure agreement, it disclosed to Sears its plans for a next generation “combination tool” which consisted of a rotary saw, also called a spiral saw, which could be converted into a plunge router. But after negotiations broke down over price, Sears allegedly took RRK’s plans and used them to make Sears’s Craftsman “All-in-One” tool. Sears has said it will appeal the verdict. The Court’s docket has not been updated yet with a verdict form or jury instructions, but I will post them when they become available, likely next week.
For more on this case, click here for the Blog’s archives.
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No Insurance Coverage Where Alleged Infringement Not Solely Advertising Injury
Discover Financial Servs. LLC v. National Union Fire Insur. Co. of Pittsburgh, PA, No. 06 C 4359, 2007 WL 2893624 (N.D. Ill. Sep. 26, 2007) (Pallmeyer, J.).
Judge Pallmeyer granted summary judgment that defendant National Union Fire Insurance Co. (“National Union”) did not have a duty to defend plaintiff Discover Financial Services (“Discover”) pursuant…
Michigan Law Review on SCOTUS, the Federal Circuit and Patent Law
I have been meaning to highlight the University of Michigan Law Review’s recent Supreme Court, Federal Circuit, and Patent Law edition for some time. The day before the Michigan-Ohio State match-up for the Big Ten title and a trip to the Rose Bowl seems like an appropriate time to do it. The article contains excellent analysis of the future of patent law and the effects of recent Supreme Court rulings, in particular KSR. The specific articles are:
Rebecca S. Eisenberg, The Supreme Court and the Federal Circuit: Visitation and Custody of Patent Law
John F. Duffy, KSR v. Teleflex: Predictable Reform of Patent Substance and Procedure in the Judiciary
Harold C. Wegner, Making Sense of KSR and Other Recent Patent Cases
Robert A. Armitage, Now That the Courts Have Beaten Congress to the Punch, Why Is Congress Still Punching the Patent System?
Stephen G. Kunin & Andrew K. Beverina, KSR’s Effect on Patent Law
Each article is worth the read, perhaps as you watch the game tomorrow.
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Continue Reading Michigan Law Review on SCOTUS, the Federal Circuit and Patent Law
Northern District Judge Filip Nominated to be Deputy Attorney General
New Attorney General Michael Mukasey has nominated Northern District Judge Mark Filip to be his Deputy Attorney General (the #2 position at the Department of Justice), replacing acting Deputy Attorney General Craig Morford. Judge Filip clerked for Justice Scalia and served as a Northern District Assistant United States Attorney for five years, before briefly entering private practice and then taking the bench. Here is what the Chicago Tribune (via the Associated Press) had to say about Judge Filip’s sterling reputation as a judge:
Filip was nominated for the federal bench in November 2003, and he is widely viewed as a smart and down-to-earth jurist. He was ranked first among federal judges in terms of integrity and professionalism in a 2006 poll of Chicago-area attorneys.
Congratulations Judge Filip. You will be missed in the Northern District.
I will keep you updated on the confirmation process and who is nominated to fill the vacancy that Judge Filip’s confirmation will create.
* A hat tip to the WSJ Law Blog for the fast post regarding Judge Filip’s nomination.
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