Legislative and Regulatory Update

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[No.109]                                                                            Jauary 10, 2005

International
Ministry of Finance and Company Affairs
RBI
Ministry of Railways
Ministry of Commerce and Industry
Telecom Regulatory Authority of India (TRAI)
Ministry of Home Affairs
Ministry of Agriculture
Ministry of Health and Family Welfare
Supreme Court
High Courts

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International Legal News

Cases

Source: Westlawinternational.com

  • Marks and Logos: Investment advisor's "Everest Capital" mark was not infringed.

A jury's finding that an investment advisor's "Everest Capital" mark was not infringed by another advisor's use of "Everest Investment Management," "Everest Funds Management," and "Everest Funds" marks was supported by the evidence. The marks employed different fonts and graphics, the parties did not directly compete, and the plaintiff's customers were financially sophisticated.

Everest Capital Ltd. v. Everest Funds Management, L.L.C.

  • Marks and Logos: Audio equipment seller's use of letter "S" on invoices was not protectable.

An audio equipment seller's use of a plain, unadorned letter "S" as a prefix when identifying inventory on its customer invoices was not sufficiently distinctive to warrant trademark protection. Though arbitrary, the letter was not inherently distinctive, and there was no evidence that customers recognized the letter as identifying the seller's products.

Professional Sound Services, Inc. v. Guzzi

  • Process: Service of process upon trademark infringement defendant by e-mail was warranted.

Service of process upon a trademark infringement defendant by e-mail was warranted, as the method of service most likely to reach the defendant. Prior e-mails had successfully reached the defendant, whose mailing address in Portugal was otherwise unknown. The issue was one of first impression in the Sixth Circuit.

Popular Enterprises, LLC v. Webcom Media Group, Inc.

  • Contracts: A contract was voidable for architects' failure to obtain a certificate of authorization.

A contract between a college and an architecture partnership to design a building was voidable, rather than void, for the architects failure to obtain a certificate of authorization to operate their business as a partnership. The architects had not violated the state licensing statute, and there was no risk the public generally, and the college particularly, were having work foisted on them by unlicensed personnel.

District Bd. of Trustees of St. Johns River Community College v. Morgan

  • Class Actions: Attorney fees of $609,012,000 awarded to lead counsel in antitrust class action was reasonable.

Attorney fees of $609,012,000 awarded to lead counsel, who obtained the largest antitrust class action settlement ever, was reasonable. The fee represented approximately 18% of the present value of the settlement's compensatory relief, 2.14% of the present value of the settlement, inclusive of injunctive relief, and 9.68 times the lodestar figure, but less than amount of negotiated fee arrangement with the plaintiffs.

Wal-Mart Stores, Inc. v. Visa U.S.A., Inc.

  • Evidence: Evidence, which ought in fairness be admitted to complete related evidence, must be authenticated.

Evidence that comes within the exception to the hearsay rule which applies to a writing or recorded statement, which ought in fairness to be considered with a related writing or recording that has already been admitted into evidence, is subject to the authentication requirement.

Liftee v. Boyer

  • Child Support: Statute authorizing revocation of driver's license for failure to pay child support was not unconstitutional.

The statute authorizing revocation of a father's driver's license for failure to pay child support did not violate his substantive right to due process. There was a rational relationship between the statute and the statute's goal, inasmuch as the threat of a driver's license suspension was an effective enforcement tool for payment of child support obligations.

Amunrud v. Board of Appeals

  • Child Support: Juvenile court had authority to award retroactive child support to adult emancipated child.

A juvenile court had jurisdiction to award retroactive child support payments to an adult emancipated child who filed a paternity action before her twenty-third birthday. The statute governing paternity actions expressly provided that the child was entitled to commence a paternity action up to the age of 23, and the child support statute provided that the juvenile court had the authority to make a support order once a parentage determination was made.

Carnes v. Kemp

  • Intellectual Property: ISP was not required to disclose identities of subscribers who were sharing copyrighted music.

The Digital Millennium Copyright Act did not authorize copyright owners or their representatives to obtain and serve subpoenas on Internet service providers (ISPs) to obtain personal information about the ISP's subscribers who were alleged to be transmitting copyrighted works via the Internet using "peer to peer" or "P2P" file sharing computer programs. A subpoena seeking to identify an infringer was available only where the ISP was performing a storage or linking function, and not when it was merely performing a transmission function.

In re Charter Communications, Inc., Subpoena Enforcement Matter

News

  • Afghan Judge arrested in connection with Kabul Car Bombing Episode

The Afghan authorities arrested an Afghan Supreme Court judge in connection with the August car bomb attack that killed ten people, including three Americans, outside a US security firm in Kabul. The Judge was arrested after two men accused of organizing the crime told investigators that they had stayed at the Judge's house in Kabul. Later, authorities discovered explosives during a raid at Naqibullah's home. A spokesman for the Supreme Court said that Judge Naqibullah belonged to a faction of the Mujahideen, or holy warriors, who fought against Soviet control in the 1980s and the Taliban control in the late 1990s.

  • Lawsuit Alleges Children's Motrin Causes Stevens-Johnson syndrome

A lawsuit was filed on Tuesday in Los Angeles Superior Court Compton Division against pharmaceutical giant, Johnson & Johnson, alleging that the company’s product Children’s Motrin causes Stevens-Johnson Syndrome, a harmful reaction resulting in severe burning, blistering, blindness or death in some cases. The Plaintiff, Sabrina Brierton Johnson, aged 7, claimed that an allergic reaction after consuming Children's Motrin caused her to become blind and photosensitive. The lawsuit, Sabrina Brierton Johnson vs. Johnson & Johnson is aimed to get the Defendant Company re-label Children's Motrin, so that it carries a warning regarding the dangers of Stevens-Johnson Syndrome.

  • Medical Malpractice Bill Shields Drugmakers

President Bush’s Medical Malpractice Bill intends to curb some of the high costs of health care in America and improve the quality of health care but at the same time the bill would prevent consumers from seeking punitive damages from the makers of defective drugs like Vioxx, Celebrex and Bextra. These three popular arthritis drugs have been linked to increased risks of heart attacks and strokes and therefore have been taken out of the market. The bill grants liability protections not only for malpracticing doctors, but also to hospitals, HMOs, nursing homes and manufacturers of medical devices and pharmaceutical companies such as Merck & Co., the maker of Vioxx, and Pfizer, the maker of Celebrex and Bextra. It includes a $250,000 cap on non-economic damages if the malpractice bill becomes law.

  • Archdiocese of Portland Ad Campaign Targets Abused Victims

The Archdiocese of Portland had issued a legal notice to the general public to bring any claim against it including child sexual abuse by a member of the clergy or an employee of the Archdiocese by April 29, 2005. The legal notice was placed in all the major newspapers The "bar date" of April 29, 2005 was set by the U.S. Bankruptcy Court as the last day to file claims. This notification process is a part of the bankruptcy proceedings. It will assist the Archdiocese and the Bankruptcy Court in establishing the total amount of outstanding debt the Archdiocese owes.

  • Eli Lily Said to Know of Prozac Suicidal Risks

The British Medical Journal, said last week that it had given the U.S. Food and Drug Administration documents that suggest a link between Prozac, made by Eli Lilly, and suicidal thoughts and behaviors. The documents are believed to have gone missing during the controversial Wesbecker case in 1994, which was brought against Eli Lily on behalf of victims of a work-place shooting in Louisville. According to the BMJ, the "missing documents" indicate that Eli Lily officials were aware in the 1980s that Prozac may cause suicidal thoughts and behaviors. The journal said it received the documents from anonymous source last month. The documents went missing in 1994. The gunman, who shot eight people dead and wounded another 12 and then killed himself, had been placed on Prozac one month before the shootings

  • Court martial over 'Iraqi abuse'

A British soldier accused of mistreating Iraqi detainees near Basra faces court martial. Gary Bartlam, from the Royal Regiment of Fusiliers, one of the four soldiers accused of ill-treating Iraqi prisoners in May 2003 was arrested at a film processing shop at Tamworth, Staffordshire, after staff found pictures appearing to show the alleged abuse. The case will be heard at a British Army base in Hohne, Germany. The other three soldiers from the regiment are also expected to face a further court martial in Osnabruck, Germany, later this week, in connection with the abuse allegations. All the charges relate to incidents alleged to have taken place at a food storage warehouse near Basra where Iraqi civilians were temporarily detained. The charges range from assault and indecent assault to failure to report the alleged abuse.

Ministry of Finance and Company Affairs

Department of Economic Affairs
  • Post Office Recurring Deposit (Amendment) Rules, 2004

Notification No. GSR838(E) Dated 27.12.2004: The Central Government, vide this notification further amended the Post Office Recurring Deposit Rules, 1981. Now, for withdrawals made on or after 1st January, 2005, the interest rate would be 2 per cent over and above the rate, as applicable to the deposits made for a period of five years under the Post Office Time Deposit Rules, 1981.

RBI

  • Modifications in Off-site Monitoring and Surveillance Input Module

Circular No. DBS.CO.OSMOS.BC.No.11/33.01.001/2004-05 Dated 28.12.2004: The existing Off-site Monitoring and Surveillance Input Module has been upgraded, so as to incorporate the new regulatory prescriptions in respect of NPA recognition norms, capital charge for market risk on trading book, non-SLR investments etc. into the DSB returns reporting framework.

Ministry of Railways

  • Railway Board Secretariat Service (Amendment) Rules, 2004

Notification No. GSR842(E) Dated 21.12.2004: Vide this notification, the President, formulated the Railway Board Secretariat Service (Amendment) Rules, 2004, further to amend the Railway Board Secretariat Service Rules, 1969. 

Ministry of Commerce and Industry

Department of Industrial Policy and Promotion

  • Patents (Amendment) Rules, 2005

Notification No. SO1418(E) Dated 28.12.2004: The Central Government, vide this notification, has brought to the fore, the Patents (Amendment) Rules, 2005, amending the Patents Rules, 2003. These Rules shall come into force, from the 1st day of January, 2005.

Telecom Regulatory Authority of India (TRAI)
  • The Register of Interconnect Agreements (Second Amendment) Regulation, 2004

Notification No. 11-11/2004-B&CS Dated 31.12.2004: Further amending the Register of Interconnect Agreement Regulation, 1999, TRAI, came out with a concrete definition for ‘Interconnection’, which it says means “the commercial and technical arrangements under which service providers connect their equipment, networks and services to enable their customers to have access to the customers, services and networks of other service providers.”

  • The Register of Interconnect Agreements (Broadcasting and Cable Services) Regulation, 2004

Notification No. 5-29/2004-B&CS Dated 31.12.2004: Vide this notification, the TRAI, brought in The Register of Interconnect Agreements (Broadcasting and Cable Services) Regulation, 2004, which prescribed the modalities for the maintenance of the register of interconnect agreements entered into by broadcasters, multi system operators and cable operators.

Ministry of Home Affairs
  • National Human Rights Commission (Group 'A' and Group 'B' Posts) Recruitment (Amendment) Rules, 2004

Notification No. GSR840(E) Dated 24.12.2004: With this notification, the Ministry of Home Affairs brought in further amendments to National Human Rights Commission (Group "A" and Group "B" Posts) Recruitment Rules, 1996. These amendments relate to the promotion of Section Officers in the Commission to the post of Under Secretary.

Ministry of Agriculture

Department of Agriculture and Cooperation

  • Protection of Plant Varieties and Farmers’ Rights (Amendment) Rules, 2004

Notification No. GSR843(E) Dated 30.12.2004: The Central Government, vide this notification, has made amendments to the Protection of Plant Varieties and Farmers' Rights Rules, 2003. These amendments were in relation to the appointment of the Chairperson.

Ministry of Health and Family Welfare
  • Prevention of Food Adulteration (……Amendment) Rules, 2004

Notification No. GSR821(E) Dated 21.12.2004: The Ministry of Health and Family Welfare, vide this notification, has further amended the Prevention of Food Adulteration Rules, 1955. The amendment focused on laying down the requirements regarding ‘Fish and Fish Products’.

Supreme Court
  • Iridium India Telecom Limited Vs Motorola Inc.

The appellant had filed suit for recovery of Rupees one thousand crores against the respondent, a foreign corporation, alleging fraud, in the course of the proceedings an ex parte order was obtained in the nature of attachment before judgment of the receivables in India. The respondent put in appearance and the ex parte order was modified. The respondent failed to file a written statement within 90 days and sought extension of time, the appellant opposed the any extension of time, however the court extended the time.

Against this order, the appellant filed an appeal which was dismissed by the court, it was held that suits would be governed by the Original Side rules framed by the High Court and not by amended provisions of the C.P.C.

The Apex court upheld the order of the Bombay High Court and observed that the rules framed on the original side of a chartered high court are not “rules” as defined in the CPC. Also, it is incorrect that rules made thereunder are relegated to subordinate status to the code.

  • Ishwar Singh vs State of Rajasthan and Others

The appellant was serving as a manager with a registered society and since the employer concluded that his work performance was not upto the mark he was prematurely retired. An order was issued compulsorily retiring him from service under the Rajasthan Service Rules 1951. The appellant filed a revision challenging the said order and the revision was allowed on the ground that the provision  invoked were not applicable to the employer –society, also approval of registrar a condition precedent, was not obtained. Secretary, Cooperative Department, Government of Rajasthan reversed the order of the Registrar.

The appellant filed a petition before the High Court challenging this order, however the said petition was dismissed. The appellant approached the apex court challenging the correctness of the decision of the High Court.

The Supreme Court dismissed the appeal and held that the appointing authority has absolute right to retire in public interest any employee by giving him a prior notice in writing.

High Courts

Kerala

  • Satheesh Vs Thomas

The appellant, a notary, filed a writ petition seeking to restrain other notaries from performing notarial work exceeding there jurisdiction, as documents attested in such a manner were not honoured by authorities, therefore causing monetary loss to the general public. The Petition was disposed of with the observation that there was nothing in law restricting any notary from attesting documents brought by outside residents.

An appeal was filed against the said decision before the Kerala High Court challenging the said decision. It was contended that under the Notaries Act, 1952 a notary is authorized to practice only in the area for which he had been appointed.

The Kerala High Court dismissed the appeal, holding that a notary is authorized to attest all documents brought to him within the limits of the area for which he has been appointed, the Notaries Act, 1952 does not contain any prohibitory clause.

Maharashtra

  • Sheshrao Raibhan Ingale Vs Shilpa Sheshrao Ingale

The Trial Court under the provisions of Order 39  Rule 11(as applicable to the state of Maharashtra) of C.P.C., 1908 struck out the defence of the Petitioner, a Defendant, in a civil suit. The order of the Trial Court was challenged before the learned Single Judge in a writ petition under Article 227 of the Constitution of India.

The question that came up for consideration was whether a defendant whose defence has been struck out under Rule 11 Order 39 C.P.C., 1908 has a right to cross-examine the plaintiff and the witness examined by him?

The Bombay High Court, disposed of the Writ Petition with the observations that the person concerned would not be entitled to press his pleas and would not be allowed to adduce evidence. But he had the right to cross-examine the plaintiff and his witnesses and to show that on the basis of the material on record, the plaintiff would not be entitled to any decree.

Madhya Pradesh

  • Sunder Singh Vs State of Madhya Pradesh

In a criminal case before the Sessions Court, the P.W. 1 alleged that the present petitioner had caused the death of her husband. She filed an application under section 319 Cr. P. C., 1973  for joining the petitioner herein as an accused and the same was allowed. It was the contention of the accused that was that there was no allegation against him and infact the police cited him as an eyewitness.

The order of the trial court allowing the application under section 319 Cr.P.C., 1973  was challenged before a division bench of the High Court primarily on the ground that there was no evidence against him, as such no case was made out.

A division bench of the Madhya Pradesh High Court, dismissed the revision, since the case was still at a preliminary stage, only one witness having been examined so far and the possibility of the accused being convicted could not be ruled out.

Karnataka

  • T.D. Yogitha Vs University of Agricultural Sciences, Bangalore

Petitioner secured admission against reserved quota on the basis of a false declaration made by her father that he is an agriculturist as defined under the University of Agricultural Sciences Act, 1963. By way of the present writ petition the endorsement issued by the university, whereby the university has cancelled the admission of the petitioner to first year B.Sc.(Agriculture) course, has been challenged.

The Karnataka High Court, allowed the writ petition with the observations that the petitioner had completed her degree course and if any action is taken against her at this stage, it may lead to depriving the society of the service of a graduate in Agricultural Sciences on whom public money has already been spent.