HHR New Media, Entertainment and Technology Group

Earlier this month, the DC Court of Appeals dealt a blow to the FCC’s “net neutrality” initiatives when it held that the Commission did not have the authority to sanction Comcast for employing network management practices that targeted users of P2P applications.  However, by basing its reasoning on a straightforward (and not surprising) interpretation of the Communications Act of 1934, the Court’s decision cannot be called a knock-out and it is likely that we will see a tactical shift in the FCC’s efforts to implement net neutrality regulations. Continue Reading »

We had recently written about how a dispute over the ownership of certain IP threatened to derail eBay’s proposed sale of Skype.  Reports last week have revealed that Skype and parent eBay Inc. have reached a definitive settlement agreement with Skype’s founders that resolves litigation over the critical GI technology necessary to run Skype and removes the major obstacle that threatened  the $1.9 billion cash deal for Skype.  Under the terms of the settlement, Zennstrom and Friis will join the investor group and in exchange for contributing Joltid’s GI technology, they will receive a 14 percent stake in Skype, effectively regaining part ownership of their creation.  The other investors will hold 56 percent of Skype with eBay to retain the remaining 30 percent.  The deal is expected to close in the fourth quarter of 2009.

A recent Federal case involving an alleged agreement for exclusive rights to distribute an acclaimed film stands as a stark reminder of the need to fully comply with the formal requirements for transferring and assuming copyright ownership interests.  The suit was brought by The Weinstein Company, which sought to block the distribution of the film Precious, claiming that the producers had transferred the distribution rights to Weinstein Co. before they struck a distribution deal with Lions Gate Entertainment Corp.  A federal judge in the Southern District of New York last month threw out the case, finding that the alleged agreement Weinstein Co. relied on did not meet the formal requirements to transfer the distribution rights to the film. Continue Reading »

News reports in recent weeks have revealed how disputes over the ownership of certain critical IP may derail eBay’s $1.9 billion deal to sell a stake in the well-known internet communications company Skype.  In the latest development companies owned by the founders of Skype filed additional lawsuits last week against eBay and its future investors. At the heart of the dispute is the peer-to-peer technology called “global index” (“GI”) that is critical to Skype’s success.  Somewhat surprisingly, the GI technology, which was developed by Skype’s founders, Janus Friis and Niklas Zennstrom, is not owned by eBay or Skype.  Rather it is owned by Joltid Ltd., a company controlled by Friis and Zennstrom.  Continue Reading »

In a decision applauded by webcasters and lamented by the recording industry, the Second Circuit ruled last week that individualized radio stations–such as those offered by LAUNCHcast and Pandora–are not “interactive services” under the DMCA, freeing the webcasters from the potentially massive financial burden of having to pay licensing fees to record labels for the transmission of sound recordings as part of their services.  The decision was the first by a federal court of appeals to examine the hotly-debated issue.

The suit, originally filed in 2001 by several labels owned by Sony BMG, including Arista, Bad Boy and Zomba, alleged that LAUNCHcast, a webcasting service run by Yahoo’s Launch Media unit, which enables users to create “stations” that play songs within a particular genre or similar to a particular artist or song, violated provisions of the DMCA that required payment of licensing fees for the use of sound recordings in an “interactive” service.”  Continue Reading »