Domain: law360.com
Stories and comments across the archive that link to law360.com.
Stories · 9
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Man Sues T-Mobile For Allegedly Failing To Stop Hackers From Stealing His Cryptocurrency (theverge.com)
Over the weekend, a lawsuit was filed against T-Mobile claiming that the company's lack of security allowed hackers to enter his wireless account last fall and steal cryptocoins worth thousands of dollars. "Carlos Tapang of Washington state accuses T-Mobile of having 'improperly allowed wrongdoers to access' his wireless account on November 7th last year," reports The Verge. "The hackers then cancelled his number and transferred it to an AT&T account under their control. 'T-Mobile was unable to contain this security breach until the next day,' when it finally got the number back from AT&T, Tapang alleges in the suit, first spotted by Law360." From the report: After gaining control of his phone number, the hackers were able to change the password on one of Tapang's cryptocurrency accounts and steal 1,000 OmiseGo (OMG) tokens and 19.6 BitConnect coins, Tapang claims. The hackers then exchanged the coins for 2.875 Bitcoin and transferred it out of his account, the suit states. On November 7th, the price of Bitcoin was $7,118.80, so had the hackers cashed out then, they would have netted a profit of $20,466.55. Tapang goes on to say, "After the incident, BTC price reached more than $17,000.00 per coin," but given the volatility of bitcoin prices, the hackers may not have benefited from the soar.
The suit alleges T-Mobile is at fault partly because the carrier said it would add a PIN code to Tapang's account prior to the incident, but didn't actually implement it. Tapang also states that hackers are able to call T-Mobile's customer support multiple times to gain access to customer accounts, until they're able to get an agent on the line that would grant them access without requiring further identity verification. The complaint also lists several anonymous internet users who have posted about similar security breaches to their own T-Mobile accounts. -
ZeniMax Files Injunction To Stop Oculus From Selling VR Headsets (gamespot.com)
ZeniMax, the parent company of Fallout and Skyrim developer Bethesda, has filed for an injunction against virtual-reality company Oculus over the recent stolen technology case. The company had accused Oculus of stealing VR-related code, and was subsequently awarded $500 million by a Dallas court earlier this month. ZeniMax has now filed additional papers against Oculus, requesting that Oculus' products using the stolen code be removed from sale. GameSpot reports: Specifically, ZeniMax is seeking to block sales of its mobile and PC developer kits, as well as technology allowing the integration of Oculus Rift with development engines Unreal and Unity, reports Law360. If the injunction isn't granted, ZeniMax wants a share of "revenues derived from products incorporating its intellectual properties," suggesting a 20 percent cut for at least 10 years. ZeniMax argues the previous settlement of $500 million is "insufficient incentive for [Oculus] to cease infringing." Oculus, meanwhile, says that "ZeniMax's motion does not change the fact that the [original] verdict was legally flawed and factually unwarranted. We look forward to filing our own motion to set aside the jury's verdict and, if necessary, filing an appeal that will allow us to put this litigation behind us," the virtual reality company stated. -
Chrome's Sandbox Feature Infringes On Three Patents So Google Must Now Pay $20 Million (bleepingcomputer.com)
An anonymous reader writes: After five years of litigation at various levels of the U.S. legal system, today, following the conclusion of a jury trial, Google was ordered to pay $20 million to two developers after a jury ruled that Google had infringed on three patents when it designed Chrome's sandboxing feature. Litigation had been going on since 2012, with Google winning the original verdict, but then losing the appeal. After the Supreme Court refused to listen to Google's petition, they sent the case back for a retrial in the U.S. District Court in Eastern Texas, the home of all patent trolls. As expected, Google lost the case and must now pay $20 million in damages, in the form of rolling royalties, which means the company stands to pay more money as Chrome becomes more popular in the future. -
Oculus Accused of Destroying Evidence, Zuckerberg To Testify In $2 Billion Lawsuit (arstechnica.com)
An anonymous reader quotes a report from Ars Technica: ZeniMax Media, the parent company of both Bethesda Softworks and Id Software, says it will prove at trial that John Carmack and others at Oculus stole trade secrets to "misappropriate" virtual reality technology that was first developed while Carmack was working at Id Software. What's more, ZeniMax is now accusing Oculus of "intentional destruction of evidence to cover up their wrongdoing." Mark Zuckerberg, CEO of Oculus parent company Facebook, is scheduled to respond to those accusations in testimony starting tomorrow, according to a report by Business insider. ZeniMax's statement comes after Carmack testified at trial last week, saying the case was "ridiculous and absurd." His testimony echoed Oculus' initial reaction when ZeniMax's accusations first surfaced in 2014. In court filings leading up to the trial, ZeniMax detailed its case that Carmack, while still an employee at Id Software, "designed the specifications and functionality embodied in the Rift SDK and directed its development." Carmack's technology and guidance allegedly "literally transformed" Oculus founder Palmer Luckey's early Rift prototype from a "primitive virtual reality headset" that was "little more than a display panel." Carmack allegedly used "copyrighted computer code, trade secret information, and technical know-how" from his time at ZeniMax after he moved to Oculus as CTO in 2013. As the trial began last week (as reported by a Law360 summary, registration required), Carmack told the court of his development of a virtual reality demo for Doom 3 in 2012 and his search for a VR headset that would be suitable to run it. That's when he says he got in touch with Luckey, leading to the now legendary E3 2012 demo that introduced Oculus to the public. ZeniMax is seeking $2 billion in damage, which matches the value that Facebook paid for Oculus in 2014. The trial is expected to last three weeks. -
'Corporate Troll' Wins $3 Million Verdict Against Apple For Ring-Silencing Patent (arstechnica.com)
An anonymous reader quotes a report from Ars Technica: A non-practicing entity called MobileMedia Ideas LLC won a patent lawsuit against Apple today, with a Delaware federal jury finding that Apple should pay $3 million for infringing MobileMedia's patent RE39,231, which relates to ring-silencing features on mobile phones. MobileMedia is an unusual example of the kind of pure patent-licensing entity often derided as a "patent troll." It is majority-owned by MPEG-LA, a patent pool that licenses common digital video technologies like H-264, MPEG-2, and MPEG-4. Minority stakes in MobileMedia are owned by Sony and Nokia, which both contributed the patents owned by the company. MobileMedia also has the same CEO as MPEG-LA, Larry Horn. The battle ended up being a long one, as MobileMedia first filed the case in 2010. It went to trial in 2012, and the jury found that Apple infringed three patents. After reviewing post-trial motions, the judge knocked out some, but not all, of the infringed patent claims. Then came an appeal in which a panel of Federal Circuit judges upheld (PDF) some of the lower court's judges and overturned others. A $3 million verdict is hardly going to make an impact on Apple, and it doesn't represent a huge win for MobileMedia, which was reportedly seeking $18 million in royalties from the trial. Still, getting a verdict in its favor does represent some validation of MobileMedia's business model, which was a striking example of technology corporations using the "patent troll" business model as a kind of proxy war. Nokia and Sony were able to use MobileMedia and the licensing talent at MPEG-LA to wage a patent attack on Apple without engaging directly in court. In all, after years of back-and-forth, the ring-silencing patent was the one that MobileMedia had left. While Apple didn't win the case against one of the first "corporate trolls," it was able to severely pare down the scale of the attack and show that it's willing to fight a long legal war of attrition to make its point. -
'Corporate Troll' Wins $3 Million Verdict Against Apple For Ring-Silencing Patent (arstechnica.com)
An anonymous reader quotes a report from Ars Technica: A non-practicing entity called MobileMedia Ideas LLC won a patent lawsuit against Apple today, with a Delaware federal jury finding that Apple should pay $3 million for infringing MobileMedia's patent RE39,231, which relates to ring-silencing features on mobile phones. MobileMedia is an unusual example of the kind of pure patent-licensing entity often derided as a "patent troll." It is majority-owned by MPEG-LA, a patent pool that licenses common digital video technologies like H-264, MPEG-2, and MPEG-4. Minority stakes in MobileMedia are owned by Sony and Nokia, which both contributed the patents owned by the company. MobileMedia also has the same CEO as MPEG-LA, Larry Horn. The battle ended up being a long one, as MobileMedia first filed the case in 2010. It went to trial in 2012, and the jury found that Apple infringed three patents. After reviewing post-trial motions, the judge knocked out some, but not all, of the infringed patent claims. Then came an appeal in which a panel of Federal Circuit judges upheld (PDF) some of the lower court's judges and overturned others. A $3 million verdict is hardly going to make an impact on Apple, and it doesn't represent a huge win for MobileMedia, which was reportedly seeking $18 million in royalties from the trial. Still, getting a verdict in its favor does represent some validation of MobileMedia's business model, which was a striking example of technology corporations using the "patent troll" business model as a kind of proxy war. Nokia and Sony were able to use MobileMedia and the licensing talent at MPEG-LA to wage a patent attack on Apple without engaging directly in court. In all, after years of back-and-forth, the ring-silencing patent was the one that MobileMedia had left. While Apple didn't win the case against one of the first "corporate trolls," it was able to severely pare down the scale of the attack and show that it's willing to fight a long legal war of attrition to make its point. -
Uber's Investigators Admit To Lying While Digging Up Dirt On Legal Foes (theverge.com)
Andrew J . Hawkins, writing for The Verge: Ergo, the secretive, CIA-linked firm that was paid by Uber to investigate the plaintiff in one of the ride-hail startup's many lawsuits, has now admitted to lying and illegally recording phone calls during its probe, according to Law360. Lawyers for Ergo owned up to the infractions in oral arguments in court Thursday, drawing a rebuke from the judge overseeing the case. Last December, Spencer Meyer filed a proposed class action lawsuit against Uber CEO Travis Kalanick, alleging a scheme to fix prices in violation of antitrust laws. The same day, Uber hired Ergo to investigate Meyer out of concern he posed a security risk to Kalanick. But Ergo also gathered information on Meyer's lawyer, a move that some critics say went too far. Ergo's lawyer argued that the firm was unaware the investigation was tied to a lawsuit, even while admitting Ergo's investigator "dissembled and used false pretenses in his duties," Law360 said. -
Patent Troll VirnetX Wants To Ban FaceTime and iMessage, Increase Damages Award By $190M (9to5mac.com)
An anonymous reader writes: Earlier this year, patent troll VirnetX won a court battle with Apple to the tune of $625 million. Now, the company wants to increase the damages award by $190 million. Law360 reports: "At a post-trial hearing Wednesday, Texas technology company VirnetX argued that although an injunction blocking Apple's popular video chatting and messaging features, along with a virtual private network on demand feature, may seem like a harsh remedy, it is necessary because of the irreparable harm Apple's infringement caused the company. VirnetX also asked the court to increase the jury's damages award by at least $190 million, arguing that Apple has been the 'poster child' for unreasonable litigation tactics." VirnetX also wants the court to block FaceTime and iMessage entirely. "Meanwhile, Apple argued that in light of U.S. Patent and Trademark Office decisions rejecting the four patents-in-suit, an injunction would be inappropriate, as would any ongoing royalty based on FaceTime, iMessage and virtual private network on demand features. The tech giant also sought a mistrial based on a purportedly inappropriate argument to the jury and argued that the company is entitled to a judgment of non infringement, despite the jury verdict, based on VirnetX's allegedly insufficient evidence," reports Law360. -
New Bill Would Require Patent Trolls To Pay Defendants' Attorneys
Zordak writes "According to Law 360, H.R. 845, the 'Saving High-Tech Innovators from Egregious Legal Disputes' (SHIELD) Act of 2013 would require non-practicing entities that lose in patent litigation to pay the full legal costs of accused infringers. The new bill (PDF) would define a 'non-practicing entity' as a plaintiff that is neither the original inventor or assignee of a patent, and that has not made its own 'substantial investment in exploiting the patent.' The bill is designed to particularly have a chilling effect on 'shotgun' litigation tactics by NPEs, in which they sue numerous defendants on a patent with only a vague case for infringement. Notably, once a party is deemed to be an NPE early in the litigation, they will be required to post a bond to cover the defendants' litigation costs before going forward."