Justice Department Is Still Going After EBook Price Fixing

The Justice Department is conducting a lengthy investigation of the agency model for ebook pricing. It has now come to a point that it is threatening to sue the "Agency Five" publishers and Apple "for allegedly colluding to raise the price of electronic books, according to people familiar with the matter."

The Justice Department believes that Apple and the publishers acted in concert to raise prices across the industry, and is prepared to sue them for violating federal antitrust laws.

Under the Sherman Act, corporations face a maximum fine of $100 million for violations. In addition, collusion among competitors may constitute violations of the mail or wire fraud statute, the false statements statute, or other federal felony statutes.

One possible solution would be to preserve the agency model but allow some discounts by booksellers. William Lynch, CEO of Barnes and Noble, is said to have that the agency model promoted a marketplace that provides consumers with choices, arguing that without it a single player (the one that can afford to lose money, using what some argue is predatory pricing) would have an even more dominant market share.

The Justice Department maintains that proving illegal price-fixing "does not require us to show that the conspirators entered into a formal written or express agreement. Price fixing, bid rigging, and other collusive agreements can be established either by direct evidence, such as the testimony of a participant, or by circumstantial evidence, such as suspicious bid patterns, travel and expense reports, telephone records, and business diary entries."

There has been tension in the interpretation of the Sherman Act ever since the Supreme Court's 2007 ruling in the Leegin Creative Leather Products case. The Court reversed almost 100 years of judicial precedent that found vertical price restraints were illegal per se, and substituted a "rule of reason" and recognized retail price maintenance can in some cases have a "procompetitive effect that are in the consumer's best interest."

How will it end? We just have to wait and see......

Apple wants to patent and trademark its Thunderbolt trademark and technology

Apple (NASDAQ:AAPL) started the year with submitting three new patent applications. The United States Patent and Trademark Office (USPTO) detailed various aspects of Apple's revolutionary I/O technology called Thunderbolt. Apple already filed a slew of Thunderbolt trademarks in 2011.

But many experts (and lawyers) wonder: does Apple really own the trademark and technology? Many believe that Thunderbolt was developed by Intel (NASDAQ: INTC) and brought to market with technical collaboration from Apple Inc.

However, it seems that savvy Apple goes out of its way to secure Thunderbolt related patents. Already filed Thunderbolt trademarks include multiple and detailed patents. It looks like Apple abandoned its previous (legal) position that its involvement in the development of Thunderbolt was limited to "technical collaboration." Is pulling Apple a fast one on Intel, or is this a classic case of unclear expectations? Intel did not react (yet).

The good news is that Apple seems to be focused on bringing Thunderbolt to iOS devices in the near future. This would mean faster data transfers and faster recharging, which is something users have been looking for.

Apple Takes Action Against a German Cafe in Bonn for Infringing on Its Famous Logo

Apple (NASDAQ:AAPL) has sent a “cease-and-desist”letter to “Apfelkind“, a cafe in Bonn, Germany. Apfelkind ("Apple child") uses a logo consisting of a red apple with the silhouette of a child inside.

Owner Christin Römer submitted the design to the Trademark and Patent Bureau in Munich, Germany. She applied for 42 classes (categories), including fashion and service provider. She also stated that she would like to franchise her “Apfelkind” concept.

The legal eagles at Apple noticed that the two logos are very similar. Apple lawyers promptly objected to the submission and issued a “cease-and-desist” letter to Ms. Römer.

She immediately involved the German media, playing the David vs. Goliath card.

But things are not as clear cut as Ms. Römer might think.

The problem is not just having the logo on the building. She also sells merchandize with the logo (such as cups) online. She also writes on her website that she is planning to expand her webshop (there is already a picture of pillows featuring the logo).

Furthermore, her submitting the logo in the category “service provider” and announcing that she wants to build a franchise show that she is a savvy business woman.

Her claim that her logo was inspired “by the apple trees of my neighbors” is weak to say the least. She hired a graphic studio to do the design. Any reputable graphic designer will warn against piggyback-riding on famous logos.

How will it end? Ms. Römer has two choices: to spend a lot of money fighting for her logo, or changing the design and removing it from the “service provider” category.

In the mean time, she got lots of free publicity. But she should realize that multinationals are investing a fortune in their brand and are therefore highly protective of their IP, including logos.

The lesson to be learned here is to make sure that your logo, font type, slogan, product name and color scheme do not even vaguely resemble those of other companies. Be original! It is not only better marketing, but also prevents legal problems.

A painful lesson in copyright and graphic design – inspired by Steve Jobs

Social media has changed the game; in more ways than one. Let’s look at the case of Mr. Mak.

Mr. Mak, a university student in Hong Kong who is an aspiring graphic designer. Upon the passing way of Steve Jobs, he designed a graphic of the Apple logo with a silhouetted profile of Mr. Jobs. It went viral and was even picked up by news media. Even actor Ashton Kutcher posted the design on his Twitter account. So far, so good...

But then, it was noticed that his design has an uncanny resemblance to the design of Chris Thornley, a British graphic artist.

Mak developed his design in late August using a white Apple logo on a black background. He used a black silhouette of Mr. Jobs indented in the apple as a tribute to Mr. Jobs after he stepped down as chief executive of Apple.

Although Mak said he had searched across the Internet both to ensure he was not infringing on another design, he did not come across Mr. Thornley’s design.

But his design turned out to be similar Mr. Thornley’s. Thornely designed a black Apple logo on a white background, with a white silhouette of Mr. Jobs. The angle is slightly different from Mak’s design.

A shocked Mak said he had received notification from Mr. Thornley’s wife, Julia, about the similarities of the two designs.

In the world of graphic design, similarities between images are quite common. This case illustrates once more how easy it has become to unearth similar images or outright copies. Mr. Thornley, a 40-year-old living in Darwen, England, acknowledges the dangers the digital age presented to creativity.

He is following the controversy while receiving treatment for a rare form of non-Hodgkin’s lymphoma. He stated that he first developed his design in May 2011. He wanted to celebrate the fact that someone who had cancer was still working, still driving forward and still thinking positively about the future.

“The Internet can be a double-edged sword,” he said. “You need to use the Internet in order to promote yourself, but in order to do this you are making yourself vulnerable to these situations.”

Mr. Thornley went on to say that he hoped to speak with Mr. Mak soon about the two designs.

“J. Mak has been as honest as he can about the situation, I think,” he said. “It is important to have the debate about this, and J. Mak has to be credited for opening up the debate and not hiding from it.”

Mr. Mak said that he learned a valuable lesson.. “It really taught me to be very careful about what I say and do. With all the negative publicity I received in Hong Kong, it taught me to be very careful. At the same time, I need to stay true to my sense of aesthetics.”

Posted by Tip Top PR at 5:39 PM 0 comments