Chicago Litigation News: New Chicago Trial Blog

The Chicago Sun-Times has begun live blogging the R. Kelly trial in Cook County state court at its new blog the Kelly Chronicles.  As with the Chicago Tribune's Rezko trial blog, Rezko Gavel to Gavel, the Kelly Chronicles is not IP-related.  But regardless of the legal claims, trial blogs are a great way to get a non-legal perspective on a trial from start to finish.  Fortunately for Chicago-area litigators and litigants, the Chicago papers have begun actively live-blogging local trials which should provide a wealth of this kind of information. 

Jury Returns IP Verdict for Defendants & Awards Plaintiffs' $15M for Breached Fiduciary Duties & RICO

Cement-Lock v. Gas Tech. Institute, No. 05 C 0018 (N.D. Ill. Mar. 11, 2007) (Pallmeyer, J.).

Judge Pallmeyer presided over a jury trial resulting in a verdict for plaintiffs Cement-Lock LLC and Alderman Richard Mell on behalf of Cement-Lock Group (collectively "CLG") on various RICO and breach of fiduciary duty claims.  The jury awarded CLG $15M in damages.  The jury also returned a verdict for defendants on CLG's trademark infringement and Illinois Uniform Deceptive Trade Practices Act claims.  Click here for Judge Pallmeyer's Order entering the verdict and here for the jury instructions (Count IX is the trademark infringement count and Count XI is the Illinois Deceptive Trade Practices Act count).

This was a dispute over the control and use of Cement–Lock technology (the “Technology”) which decontaminated certain waste products and used the decontaminated waste as a beneficial cement additive. CLG asserted various IP claims, including Lanham Act unfair competition, deceptive trade practices and trademark infringement. CLG alleged that defendants permitted defendant Gas Technology Institute (“GTI”) to secure funding for Technology-related activities, despite defendants’ knowledge that GTI had no license to use the Technology and kept knowledge of the funding from CLG. GTI also allegedly claimed to own and have developed the Technology.

For more about this case and the verdict, check out:

Judge Filip to Get Senate Confirmation Vote

The Chicago Sun-Times reported that Judge Filip's nomination as Deputy Attorney General has cleared one of its final hurdles -- click here for the story.  Senator Dick Durbin (D-Ill.) agreed to remove a hold placed on Judge Filip's confirmation vote after Attorney General Michael Mukasey answered Senator Durbin's questions regarding the legality of interrogation techniques.  According to a Chicago Tribune story (click here for the story), Judge Filip is expected to be confirmed by the Senate.  Of course, that is not surprising since the Senate previously confirmed him to become a federal district judge.

IP in the Sun-Times and Tribune

The Chicago papers had a few IP-related articles this week. First, the Chicago Tribune reported – click here for the story -- that Chicago software company SPSS is in a trademark dispute with its co-founder and former chairman, Norman Nie. Nie has informed SPSS that he believes he owns SPSS’s trademark, which he licensed to SPSS beginning in 1976. Nie is reportedly offering to sell SPSS the mark for $20M.

Second, the Tribune reported – click here for the story – that Motorola and Metrologic Instruments settled their patent disputes regard bar code scanning and mobile computing technology for an undisclosed amount and a limited-term cross-licensing agreement. The Chicago Sun-Times ran a similar story – click here to read it -- and reported that Motorola entered the dispute with Metrologic based upon its 2006 acquisition of Symbol Technologies.

Chicago IP Blog in the News

My recent story about Ebert's use of his "Two Thumbs Up" has been receiving a lot of attention (and I even scooped the Sun-Times):

The fact that the Patent Reform Act has stalled in Congress, which I discussed earlier this week, has been picked up by several blogs:

A Glimpse Into Public Perceptions of Litigation

As I pointed out early this week, the Conrad Black trial has little or no intersection with IP, but I could not resist posting about Neil Steinberg's column in yesterday's Chicago Sun-Times.  Steinberg spent a day observing the Black trial and provided his impressions of the jury system and Judge St. Eve.  Two of his observations were particularly interesting.  First, he found the trial very boring.  As IP lawyers and particularly patent lawyers, this is something we have to struggle with.  Making technology analysis and damages interesting is a difficult job and keeping jurors who only see a portion of the litigation proceedings awake and attentive can be difficult.

Second, Steinberg notes that "pay all that money to lawyers for a reason."  I would like to believe he meant because of the immense skill involved, but I am afraid it is because of how boring and complex he found the trial.

Finally, my wife, who clerked for Judge St. Eve, assures me that I will not suffer Steinberg's potato peeler fate when I say that while Judge St. Eve is very attractive, her most important judicial attributes are her intellect and her kind, but strong command of her courtroom.  Here is a brief quote from Steinberg's column:

"Oh dear." Spoken by a pal in Judge Amy St. Eve's courtroom. There is not enough tedium in our daily lives, apparently, so we are visiting a trial revolving around complex issues of accountancy.

I wish the limits of journalistic candor allowed me to explain the meaning of that "oh dear," uttered as the jury returns to the courtroom after lunch.

The contrast could not be more stark, between Lord Conrad Black, the grandiose publishing patrician, in his deep blue, subtly pinstriped bespoke suit, and the floral burst of middle American casualness sitting heavily in judgment. It was as if a line waiting for corn dogs and cotton candy at Great America had somehow blundered into a state funeral.

Sitting in court, I scour the language, searching for terms that adequately describe the colors the jury are wearing. Canary yellow. Soft bubble gum pink. Bright blue. Muddy teal. Electric poached salmon. Two women wear an identical shade of aircraft-landing paddle green.

And those are the easy ones. One lady has on what I finally decide is tiger print. A man sports what appears to be big polka dots on olive green.

A trial is also going on. The testimony centers around "Generally Accepted Accounting Standards" and overhead projections with titles such as "Statement of Financial Accounting Standards No. 57."

And hell is typically envisioned with flames. ...

After an hour I am ready to chew off my leg to escape. I would here launch into a tribute to the pixie good looks of Judge St. Eve -- I'm sure that the occasional glance in her direction is all that keeps some forced to be here from slipping into madness -- were it not for the certainty that my wife would calmly set down the paper, reach over to the kitchen drawer, remove a potato peeler and then skin me alive with it.

Three thoughts, which came as I fled the courtroom, a drowning man breaking the surface and filling his lungs with sweet, sweet air.

1) The cynical assumption is that these working-class Americans will throw Black into prison for the crime of being rich. Perhaps true, perhaps a snooty, unfair insult to the average American, considering that we managed, in our waddling, oafish way, to invent computers, land on the moon and kick the Germans out of France.

2) They pay all that money to lawyers for a reason.

3) Whatever you are doing today, even if you are kneeling in muck, gathering crushed aluminum cans and tossing them into a shopping cart to sell later, count your blessings. You could be in court.

Put Your Phones On Vibrate Counsel

Michael Sneed's Tuesday Chicago Sun-Times column included an entry entitled "Ring.  Ring."about the Northern District.  She rarely covers Northern District happenings, but the Conrad Black trial is major international news.  Sneed reports that during the Black trial, an attorney's cell phone "erupted" with a ring tone from The Exorcist.  The always gracious Judge St. Eve reportedly responded to the ring, saying "I hope you didn't program that ring just for this trial." 

While the Black trial is not intellectual property-related, I am blogging about Sneed's piece because it highlights an important practice tip:  If you cannot turn off your phone when you enter a courtroom, at least put it on vibrate.  Everyone has made the mistake of forgetting to silence your phone (mine was in church, very embarrassing), but to avoid it altogether leave your phone on vibrate permanently.

Patent Auction Generates $11.4M

Last Thursday, Ocean Tomo held its third live patent auction in Chicago.  According to the Chicago Sun-Times report, nearly 300 people attended the auction live (I understand others bid by telephone) and that 50 patents were offered for bidding, generating $11.4M.  The Sun-Times also reports that Telecommunications Corp. sold a video-on-demand patent portfolio for $2.75M.  And the Infinite Monkey Theorem blog reports that an anonymous bidder paid $2.6M for a mobile social networking patent.  According to the IMT blog, the patent "bridge[s] the online into the real world, the patent's main claim covers the use of mobile location information in conjunction with online information. This is a broad application which provide a location-based boost to gaming as well as networking sites like MySpace or upstart mobile IM players like Twitter."

Ocean Tomo's next live patent auction will be in Chicago this October.

Reexam sought for Trading Technologies Patents

The Chicago Sun-Times reported some IP-related news Sunday.  In a piece entitled "Futures Exchanges Fight Back on Patents," the Sun-Times reported that Brinks Hofer, a Chicago IP boutique, filed a petition with the PTO, on behalf of an unnamed client (PTO regulations do not require identification of Brinks's client),  seeking reexamination of patents assigned to Trading Technologies ("TT").  The patents are at issue in a series of Northern District law suits, which have been consolidated to some degree before Judge Moran.  You can read more about the suits in the Blog's archives.  According to the Sun-Times piece, the reexam petition argued that the TT patents were invalid based upon an order-entry system adopted by the Tokyo Stock Exchange several years before the filing dates of the TT patents.  TT responded to the petition's allegations in the Sun-Times piece, saying that the arguments were recycled from the Northern District lawsuits and that the Court was skeptical of the arguments. TT also noted that a trial was set for June 28, just two months away.  Finally, TT pointed out that the majority of reexam petition are granted and said that it "is confident that the validity of its patents will be upheld."