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May 2002 Volume 3, Issue 5
Editors Cherie W. Blackburn Robert W. Pearce, Jr. John C. McElwaine
1-800-237-2000 Nelson Mullins has more
than 275 attorneys firm-wide, with over 25 attorneys having
significant representation of e-commerce clients in areas including
patent, copyright and trademark protection; business planning,
securities and venture capital; and licensing, distribution and
contract preparation. Atlanta Contacts Neil Grayson Cherie
Blackburn Robert
Pearce John
McElwaine Charlotte Contact Jason
Sprenkle Myrtle Beach Contact Franklin
Daniels Columbia Contact Mark Dukes Greenville Contact Marvin
Quattlebaum William
Herlong Munich Contact Stefan Lode CyberWatch is an Internet Law Group news digest published as a service to Nelson Mullins’ clients and friends. The articles are summaries of particular developments in the law and are not intended to be a solicitation or to render legal advice. This publication can be considered advertising under applicable laws.
CyberWatch
is a trademark of Nelson Mullins Riley & Scarborough, L.L.P. |
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U.S. Air Force Parts Turn Up for Sale on e-Bay The U.S. Air Force is trying to determine how sensitive aircraft communications parts turned up on the e-Bay Internet auction site. An antiques dealer bought a crateload of parts in Florida, including parts which are used in the SR-71 spy plane, the F-16 fighter, and the C-5 Galaxy cargo jet. Most of the parts were coded for total destruction and can not be publicly owned. Apparently the parts were lost 12 years ago during shipment from Dover Air Force Base in Delaware to a supply depot in Georgia. The dealer informed the Air Force depot that he had bought the items but the depot actually suggested he sell them on e-Bay. U.S. Air Force investigators are investigating the matter. Credit: wired news.com Types of Internet Start-Ups Have Changed There are fewer and fewer pure “dot-com” companies that sell just over the Internet. Venture capitalists have seen too many of these companies collapse, costing them billions of dollars in lost investments. In this current difficult environment, a diverse group of companies are doing well, including job hunting sites like “monster.com” that bring diverse people together in one location, and retail reseller sites such as “overstock.com” that are attracting consumers who are shopping for items at deep discounts. Additionally, catalog companies have discovered the complementary benefits of the Internet with such companies as Lands’ End and Victoria’s Secret succeeding especially well by providing their customers with real-time information on items in stock, including colors and sizes. The overview is that multi-channel companies, that is, those that include some bricks and mortar with an Internet presence are the companies that are succeeding. Analysts say there may still be hope for some pure dot-coms but the next wave of startups will be using the Internet to leverage the cheaper cost and other inherent benefits of the Internet, driving sales through multiple channels for success. Credit: ecommercetimes.com Update on the Nissan v. Nissan Domain Name War As we have previously reported, a North Carolina businessman, Uzi Nissan, has been battling Nissan Motors, the Japanese car manufacturer, over the domain name “nissan.com”. Mr. Nissan reserved the domain name in 1994 as a home page for his Nissan Computer Company. Nissan Motors wants the site and has sued Mr. Nissan for $10 million, claiming that he is infringing on Nissan Motors’ business by diverting traffic intended for the automobile company. Mr. Nissan claims that his business and his marriage have been ruined . He alleges having spent more than $2.2 million fighting the lawsuit but claims he will continue the fight. This David v. Goliath story will continue, it appears, and Mr. Nissan has made this war a celebrity cause, asking his supporters to e-mail media professionals daily, if not hourly, regarding his ongoing battle. We will continue to follow this story. Credit: salon.com Fourth Circuit Court of Appeals Hears Newspaper’s Appeal Based on Internet Article The 4th U.S. Circuit Court of Appeals recently heard arguments on whether newspapers that print stories on the Internet are subject to libel suits in other states. The Hartford Courant and the New Haven Advocate each wrote articles discussing Connecticut’s policy of sending inmates to other states to relieve prison crowding. A Virginia prison warden sued the two newspapers for allegedly depicting him as a racist regarding the mistreatment of Connecticut inmates. The Court is being asked to overturn a judge’s decision allowing Warden Stanley Young to sue in Virginia. The Hartford paper has only eight Virginia subscribers, while the New Haven paper has none. This case could potentially be the first federal appellate case to determine whether a newspaper can be sued anywhere one of its articles is read on the Internet. A decision is expected in the next several months. Credit: siliconvalley.com U.S. Patent & Trademark Office to Focus on Electronic Filings Under a broad reorganization recently announced, the U.S. Patent & Trademark Office (PTO) has determined that electronic filings for patents and trademarks will become the normal method for filings. The PTO estimates that its savings over the first five years of its reorganization plan will be more than $500 million. The goal is to use an electronic filing system consisting of existing software that will be modified in conjunction with the efforts of their Japanese and European Union counterparts. The PTO has massive backlogs of patent applications and the reorganization will be more efficient. The office intends to make electronic filing less expensive than filing on paper, thereby reducing administrative costs. Currently, a patent application takes more than two years to be reviewed and granted, and with over 400,000 applications now in the examination pipeline, an expedited administrative process will help the PTO survive the expected growth in new applications. As part of the reorganization, a deadline of October 1, 2003 has been set for the PTO to convert to an all-electronic filing system for trademarks, and a deadline of October 1, 2004 has been set for the conversion to an all-electronic filing system for patents. Credit: fcw.com Cyberwatch Short Story: 70 Yr. Old Man in Jail Paul Trummel, a native of England, is a 70-year-old who has been jailed for more than three months for refusing to remove from his personal website the names, addresses, and other personal information about the employees at a retirement home that evicted him. His jailing has drawn fire from international groups that support his free speech rights. A decision is expected soon on whether or not he should be finally released. Credit: siliconvalley.com |
