Internet Lawyer Blog

Megaupload.com was among the world's biggest file-sharing sites with 150 million registered users and about 50 million hits daily. It was big enough that it earned founder Kim Dotcom $42 million in 2011.

The movie industry objected that the site was making money off pirated material; even though, Megaupload is based in Hong Kong and the founder was living in New Zealand, some of the alleged pirated content was hosted on leased servers in Virginia, which was sufficient for U.S. prosecutors to take action.

Thereafter, the site was closed and its founder and three Megaupload employees were arrested in New Zealand on allegations by American prosecutors that they facilitated millions of illegal downloads of films, music and other content, costing copyright holders at least $500 million in lost revenue.

The authorities in New Zealand were able to obtain artwork, weapons, and more than $8 million in funds and cars valued at nearly $5 million after serving 10 search warrants at several businesses and homes around Auckland.

A group of hackers retaliated for the recent news and claimed credit for attacking the Justice Department's website. After investigations by federal officials, it was confirmed that the department's website was down for several hours and the disruption was being "treated as a malicious act." This group of hackers who are also known as "Anonymous" claimed credit and also claimed that they also broke into the Motion Picture Association of America's website.

Fairfax Media located at New Zealand reported that the defendants were present at the courtroom for extradition proceedings which may last a year or longer. Dotcom's lawyer raised objections to a media request to take photographs and video, but then Dotcom spoke out from the dock, saying he didn't mind photos or video "because we have nothing to hide." The judge granted the media access, and ruled that the four would remain in custody until a second hearing Monday.

In January 2011, the University of Minnesota filed suit alleging that a website operator violated copyright law by posting a widely-used psychological test online. The psychological test, which is known as the Minnesota Multiphasic Personality Inventory ("MMPI"), was developed to assess personality traits and help diagnose mental disorders. This test contains more than 500 statements which test takers are supposed to mark either true or false. Over the years, MMPI has become one of the most commonly used psychological tests. The lawsuit alleges that a New Zealand-based Web operator named Andrew Dobson illegally posted the statements and software that claimed to interpret the answers to two websites.

The university's main concern is to avoid exposure of the test questions to ensure validity of responses because if test-takers have seen the test before, then any responses may be invalid. The University's lawyer stated that the lawsuit was filed to ensure the websites did not repost the tests. In addition, if the websites cooperate, the lawsuit will likely be withdrawn.

This topic is an example of how intellectual property can be obtained and abused by a third party without legal justification. Intellectual property refers to creations of the mind: inventions; literary and artistic works; and symbols, names and images used in commerce. Intellectual property is divided into two categories: (1) Industrial Property which includes patents for inventions, trademarks, industrial designs and geographical indications; and (2) Copyright which includes literary works (e.g., novels, poems and plays), films, music, artistic works (e.g., drawings, paintings, photographs and sculptures) and architectural design. The legal rights related to copyright include those of performing artists in their performances, producers of phonograms in their recordings, and broadcasters in their radio and television programs.

Google, Inc., which is currently the world's largest Internet search company, lost its bid to seal legal documents in a patent-infringement lawsuit filed sometime in 2010 by Oracle, Corp. (ORCL). Google's attempt to seek protection of portions of a transcript related to expert witnesses under the attorney-client privilege was futile.

The United States District Court stated that:

The document is "an incomplete draft of an e-mail message" and "never was sent to anyone." Thus, the document is not a communication of any type, much less a communication protected by the attorney-client privilege."

Case Name: Oracle America, Inc. v. Google, Inc.
Case Number: 3:10-cv- 03561
Court Location: U.S. District Court, Northern District of California (San Francisco)

Apple, Inc. (AAPL)'s patent complaint which seeks to block imports of Samsung Electronics Co.'s Galaxy S mobile phone and Galaxy Tab computer will be reviewed by the International Trade Commission (ITC). See also http://www.usitc.gov

The ITC, which is a quasi-judicial agency in Washington, D.C., arbitrates such trade disputes and announced on August 1, 2011 that it has instituted an investigation. The commission, which may take between 15-18 months to complete the review, has the authority to block imports of products which infringe upon United States patents.

See more on www.bloomberg.com

Jammie Thomas-Rasset has been dealt another setback in her long-running court battle over sharing 24 songs illegally online. CNet reports that she has lost her latest court battle, with a Minneapolis jury decided that Thomas-Rasset is liable for $1.5 million in copyright infringement damages to Capitol Records. This breaks down to $62,500 per song.

The RIAA was pleased with the decision and said in a statement, "We are again thankful to the jury for its service in this matter and that they recognized the severity of the defendant's misconduct. Now with three jury decisions behind us along with a clear affirmation of Ms. Thomas-Rasset's willful liability, it is our hope that she finally accepts responsibility for her actions."

Thomas-Rasset is expected to appeal the decision. One of her attorneys told CNet, "The fight continues."

This is Thomas-Rasset's third trial in her ongoing fight against charges of illegal file sharing.

See Yahoo.com and http://www.fmqb.com/article.asp?id=2009633&spid=1314 for more information.