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Labor undeterred by Drummond verdict

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BIRMINGHAM, Ala. (AP) – After more than a decade of trying to use an archaic law to punish U.S. corporations for alleged wrongdoing overseas, organized labor lost the first such case ever to go before a jury.

But union attorneys say they won’t be deterred by the outcome of the case against Drummond Ltd., and lawyers for both labor and corporate interests say rulings on appeals stemming from the trial may be more important in the long run than the verdict itself.

A jury on Thursday rejected claims that Alabama-based Drummond coal was to blame for the killing of three union leaders in Colombia in 2001. Families of the dead men and their union alleged the company was behind the gunshot killings by paramilitary forces.

Jurors sided with Alabama-based Drummond, which denied any involvement with the killings or with militia forces.
The case was the first one against a U.S. corporation to make it to trial under the Alien Torts Claims Act, which lets foreigners file suit in U.S. courts for alleged wrongdoing overseas.

An attorney involved in another suit said the Drummond case showed the ‘serious problems’ created by using U.S. courts to review conduct in foreign countries.

‘Hopefully this outcome will cause others to realize it’s not enough to make wild, unsubstantiated allegations and hope juries will be swayed,’ said Robert A. Mittelstaedt of Jones Day in San Francisco.

Mittelstaedt’s firm represents Chevron Corp., which is being sued over alleged abuses in Nigeria.

Here, the plaintiffs attorney, Terry Collingsworth, promised an appeal of the Drummond verdict. He said he disagreed that the jury decision would endanger other, similar cases filed under the more than 200-year-old law.

‘The facts in this case were the facts,’ said Collingsworth. ‘But it doesn’t affect any other case because the law is still letting them go forward.’

Collingsworth is executive director of the International Labor Rights Fund, which represented families and the union of the dead men in the case against Drummond.

Drummond attorney Bill Jeffress said the jury’s decision showed the folly of groups trying to use the law to pursue U.S. multinationals and ‘might discourage overuse of this statute.’

Eventual appellate rulings from the Drummond case will likely help determine the course of future cases under law, according to Jeffress and Collingsworth.

The law was originally passed in 1789 as a way to combat piracy.

For the families to win in the Drummond case, a judge told jurors they had to believe Drummond committed a war crime in Colombia by knowingly assisting gunmen who shot the union leaders to death in 2001.

The panel rejected the claim, ruling that neither Drummond nor its Colombian president were liable for the slayings.

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Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

 

Hungary officials raid Microsoft office

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BUDAPEST, Hungary (AP) – Hungary’s state Competition Authority raided the offices of Microsoft Corp.’s local subsidiary as part of a probe into the company’s relationship with large software distributors.

The unannounced raid took place July 19 at the offices of Microsoft Magyarorszag Kft., according to a notice posted on the authority’s Web site.

According to the statement, Microsoft used sales conditions and offered software distributors incentives — described as ‘loyalty discounts’ — so they wouldn’t offer clients anything but Microsoft Office products.

Such behavior could lead to the exclusion of competitive products from the market and violate European Union rules, according to the authority known as the GVH.

‘During the raid, the GVH gathered evidence supporting these suspicions,’ the authority said, adding that the probe did not mean Microsoft had broken the law.

Microsoft spokesman Guy Esnouf said the software company was cooperating with Hungarian authorities.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

New group lobbies against Internet fraud

WASHINGTON (AP) – Well-known companies such as Dell Inc., Yahoo Inc. and Marriott International Inc. are lobbying Congress for tougher laws targeting online scammers who profit from their brand names.United as the Coalition Against Domain Name Abuse, 10 companies have hired the law firm Alston and Bird LLP to persuade federal lawmakers of the need to crack down against those who claim Web addresses, or domain names, that include — or even resemble — a legitimate company’s trademark.The coalition estimates that so-called cybersquatting costs companies worldwide more than $1 billion annually in diverted customer sales and enforcement expenses.In the past, Internet speculators claimed famous-sounding or popular domain names in the hopes of selling them to corporations for thousands or millions of dollars. They also purchased Web domain names that sounded like a popular company as a way to quickly generate traffic and sell online advertising.But the coalition says scammers increasingly employ cybersquatting to sell counterfeit goods, secretly install malicious software on computers or dupe customers into providing personal data through, hurting both companies and their customers.Cybersquatting enables ‘phishing’ scams, said Paul Martino, a former counsel to the Senate Commerce Committee from 2001 to 2005 on Internet issues and now a lobbyist for the coalition.Phishers attempt to lure Internet users via e-mails to counterfeit Web sites disguised as trusted companies in order to get sensitive data, such as credit cards.’The bigger the brand name, the more lucrative it is to cybersquat the brand,’ Martino said.Both the Federal Trade Commission and the FBI’s cyber division said that under existing laws cybersquatting, in and of itself, is not necessarily a crime.’If the intent of the (Web) site is to defraud or to commit some other illegal act, then it’s a crime and we can possibly step in,’ FBI spokeswoman Cathy Milhoan said.Dell says it sees 500 new infringements of its brand name each month. Citing a report by MarkMonitor, a brand-protection firm, the group said cybersquatting grew by 248 percent in the past year.Fighting cybersquatting has become more difficult, companies said.Many scammers now use automated technology to buy a domain name, test its profitability and then drop it for a refund within an accepted 5-day grace period, tactics referred to as ‘tasting’ and ‘kiting.’About 2 million domain names daily are tasted and kited this way by exploiting the grace period, originally designed to rectify legitimate mistakes such as mistyping a domain name.Susan Crane, Wyndham Worldwide Corp.’s group vice president of intellectual property, said this makes it almost impossible to find the true identities of cybersquatters, who also provide false information on registration forms.’You can never catch who has it because the ball keeps bouncing around,’ she said.However, a fear among domain name holders who use their sites for legitimate purposes is that deep-pocketed corporations could unfairly target them as cybersquatters and try to take away their Web addresses.Josh Bourne, the coalition’s president, said a 1999 federal consumer protection law against cybersquatting isn’t deterring the practice and civil penalties — which now range from $1,000 to $100,000 — aren’t enough, he added.He said the 5-day grace period should also be eliminated, which would require the Internet Corporation for Assigned Names and Numbers, the Internet’s key oversight agency, to change its policy. The group will also seek an international treaty on cybersquatting..Bourne would not divulge the group’s budget or how much they plan spend lobbying, but said: ‘Money isn’t an issue.’In addition to Martino, the firm’s other registered lobbyists include Naotaka Matsukata, who was director of policy planning for former U.S. Trade Representative Robert Zoellick and Eric Shimp, who handled trade and investment issues also at the U.S. Trade Representative’s office.The coalition’s members also include: Verizon Communications Inc., Hilton Hotels Corp., American International Group Inc., HSBC Holdings Plc., Eli Lilly & Co. and Swiss-based Compagnie Financiere Richemont SA, which makes Cartier jewelry.–Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Synthes has setback in FDA panel backing of Medtronic spinal disk – report

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ZURICH (Thomson Financial) – Synthes Inc has had a small setback in the US after a Food and Drug Administration advisory panel recommended approval for Medtronic Inc’s Bryan Disk, a product competing with Synthes’s ProDisc, said a report in Swiss bi-weekly Finanz und Wirtschaft.
The Bryan Disk, a polyurethane and titanium implant to replace worn-out spinal disks, could be on the market by the beginning of 2008, said the report.
Medtronic is expected to see sales of around 200 mln usd by 2010, the report added.
On Monday, Medtronic won FDA approval for Prestige, a steel version of the disk.
Medtronic now has a headstart on Synthes, as FDA approval for Synthes’ Prodisc is not expected before the end of 2007 or beginning of 2008.
sarah.fenwick@thomson.com
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N.M.: Company fined in fireworks case

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ALBUQUERQUE (AP) – A federal judge has fined a Sandia Park company $7,500 for violating a law against selling chemicals and components used to make illegal fireworks.

U.S. Magistrate Lorenzo Garcia on Friday also placed United Nuclear Scientific Equipment and Supplies on probation for three years, the U.S. Consumer Product Safety Commission said.

The agency, in a news release announcing the end of the case, said the company pleaded guilty to three counts of introducing into interstate commerce and aiding and abetting the introduction into interstate commerce of banned hazardous substances.

United Nuclear, its founder Bob Lazar and accountant Joy White also entered into a consent degree that permanently limits the amount of fireworks-related chemicals the firm can sell in the future; prohibits sales of any fuses, tubes and end caps; and requires United Nuclear to destroy remaining inventory of components and specified chemicals.

Lazar could not be reached for comment at his business, which is closed on Fridays.

The company sold components and chemicals used to make such illegal fireworks as M-80s and quarter sticks, which are banned by federal law and product safety commission regulations, the commission said.

The commission’s acting chairwoman, Nancy Nord, said the court ruling was a victory for consumer safety.

United Nuclear also sells polonium-210 in invisibly tiny amounts exempt from federal licensing restrictions. That’s the radioactive isotope blamed in the death of Kremlin critic and former KGB spy Alexander Litvinenko in London last Nov. 23.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Pfizer ends trials of PF-3512676 as lung cancer treatment UPDATE

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LONDON (Thomson Financial) – Pfizer Inc said it has ended trials of PF-3512676 in combination with cytotoxic chemotherapy as a treatment for lung cancer.The company said this includes two Phase 3 and two Phase 2 clinical trials.Pfizer said an interim analysis of the Phase 3 trials by an independent data safety monitoring committee (DSMC) showed there was no evidence that PF-3512676 produced additional clinical efficacy over that achieved with the standard cytotoxic chemotherapy regimen alone.’The DSMC concluded that the risk-benefit profile did not justify continuation of the trials,’ the company said.Pfizer said it licensed PF-3512676 from Coley Pharmaceutical Group Inc in 2005.tf.TFN-Europe_newsdesk@thomson.comwjCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.

News Corp. reaches deal to buy Dow Jones

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NEW YORK (AP) – Rupert Murdoch’s News Corp. has reached a tentative agreement to buy Dow Jones & Co., publisher of The Wall Street Journal, the Journal reported on its Web site.

Negotiators from the two companies on Monday reached an agreement in principle for the original $5 billion that Murdoch had offered, and it will go to Dow Jones’ board Tuesday for its approval, the Journal said, citing unnamed people familiar with the situation.

The deal would still need approval from Dow Jones’ controlling shareholders, the Bancroft family, which has been divided on a sale to News Corp. because of concerns over whether the Journal would maintain its editorial independence.

Christopher Bancroft, a Dow Jones director, recently has been approaching major stockholders in an attempt to buy enough shares of Dow Jones to block a sale.

Michael B. Elefante, the Bancroft family’s lead trustee, has scheduled a meeting for Thursday to present the agreement to the family and is expected to give the family members several days to make a decision, the Journal reported.

Representatives of Dow Jones and News Corp. did not immediately return telephone messages seeking comment.

Murdoch, News Corp.’s chairman, resisted pressure from Dow Jones to raise his initial $60 a share offer, which represented a premium of about 65 percent over the mid-$30s level that Dow Jones stock was trading at before the proposal became public in early May.

Dow Jones shares fell 54 cents to $56.95 Monday.

Murdoch has long wanted to own the Journal, which has tremendous clout in the business world and wins many prizes for editorial excellence. Murdoch has said he would invest in the Journal’s online and overseas operations, and tap its resources to help build a business-themed cable news channel that would rival General Electric Co.’s highly profitable CNBC network.

A union representing Journal reporters and other Dow Jones employees has objected to Murdoch’s bid, saying he would downgrade the quality of the paper’s coverage and tilt its stories to suit his business interests.

The Bancrofts originally rebuffed Murdoch’s approach but then reversed themselves and agreed to meet with him in early June to discuss their concerns about keeping the Journal’s coverage free from corporate interference. The talks led to an agreement to create a committee that would have to approve the hiring or firing of top editors at the Journal.

Dow Jones directors have been searching for rivals to Murdoch’s $5 billion bid, but it seemed unlikely that anyone would top it.

A committee of Dow Jones directors, including a representative of the Bancroft family, met last week with supermarket billionaire Ron Burkle and Web entrepreneur Brad Greenspan to explore a competing deal, but it wasn’t clear whether a solid alternative to Murdoch’s offer would emerge.

Besides the Journal, Dow Jones also owns Dow Jones Newswires, the Factiva news database, Barron’s, a group of community newspapers and several well-known stock market indicators including the Dow Jones industrial average.

News Corp. owns the Fox broadcast network, Fox News Channel, newspapers in the United Kingdom, Murdoch’s native Australia and the New York Post, the Twentieth Century Fox movie and TV studio and MySpace, the online social hangout site.

The Bancroft clan trace their ownership of Dow Jones to Clarence Barron, a Dow Jones correspondent who bought control of the company in 1902. Over the years, their ties to Dow Jones have become more remote, and currently none of them works in the company’s day-to-day operations, but they control the company through a special class of shares that has powerful voting rights. Despite owning just 25 percent of the company, they exercise 64 percent of the shareholder vote.

Other newspaper publishers also have two classes of stock that allow families to retain control, including The New York Times Co. and The Washington Post Co., but in those two cases the families have greater involvement in day-to-day affairs.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

O2 to dump i-mode mobile internet service – report

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LONDON (Thomson Financial) – O2, the mobile phone company owned by Spanish telecoms giant Telefonica, is understood to be dumping its i-mode mobile internet service in the UK, due to low take-up and a lack of attractive handsets, says the Guardian, without citing sources.

Telefonica has spent 10 mln stg on the product, but it has brought just 260,000 users in the UK. However, the service has performed well in Ireland, the paper says, where it will continue to be run.

alexander.ferguson@thomson.com

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Coca-Cola: Competitors smeared Dasani

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ATLANTA (AP) – The Coca-Cola Co. said Thursday its Argentinian subsidiary has filed a criminal complaint against executives of a unit of French food and drink maker Danone and public relations firm Euro RSCG, accusing them of orchestrating a smear campaign against Coke’s Dasani water brand.

Atlanta-based Coca-Cola said in a statement that the complaint was filed in Argentina against two executives at Aguas Danone de Argentina and an executive at Euro RSCG Buenos Aires under the country’s Unfair Trade Practices statute. Euro RSCG is based in New York.

Coca-Cola alleges the executives were behind a widely circulated two-year Internet campaign that made false statements against Dasani.

The campaign, Coca-Cola said, called into question the quality of Dansani, misleading consumers and hurting the reputation and sales of Desani and parent Coca-Cola in Argentina and other Latin American countries.

Coke is seeking damages of up to $10,000, spokesman Dana Bolden said.

Dasani was launched in Argentina in October 2005, and then released in other countries in Latin America.
Immediately following the launch, Coca-Cola said, the brand was maligned as ‘bottled tap water’ and ‘cancer water’ on the Internet.

The campaign extended beyond Argentina to Mexico, Colombia, Costa Rica, Chile, Peru, Ecuador and a number of other Latin American markets, Coca-Cola said. Major customers in Argentina have refused to sell Dasani because of the rumors, Coca-Cola said.

Coca-Cola said it will consider whether other executives at Aguas Danone de Argentina, Euro RSCG Buenos Aires or other agencies should be included in the complaint.

Messages left Thursday with a spokeswoman at Euro RSCG and with Group Danone SA’s public relations staff in France seeking comment were not immediately returned.

Coca-Cola says Dasani is water ‘from a municipal source’ that is ‘subjected to multi-barrier filtration,’ purified and enhanced with minerals. The company said the water is from local sources in different countries.

Outside Coke’s annual meeting in 2006, activists were offering a tapwater challenge to passers-by to try to demonstrate that Dasani tastes no better than municipal tap water but is much more expensive.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Indonesia terror threat serious, says Australian PM

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SYDNEY (Thomson Financial) – Australian Prime Minister John Howard said Monday the threat of a terrorist attack in Indonesia was serious and justified an upgraded travel warning.

The foreign affairs department on Sunday warned Australians to stay away from Indonesia because of fears that an attack could be imminent.

Howard said travel advisories were only issued on strong intelligence.

‘All terrorist threats are serious and the problem is if you don’t warn them and something happens
you are legitimately criticised,’ he said in a television interview.

A total of 92 Australian holidaymakers were killed in two bomb attacks on the popular Indonesian resort island of Bali in 2002 and 2005.

‘We are the last country in the world to want to say anything unnecessarily serious about Indonesia, because Indonesia is a friendly country, but we have above all of that a greater obligation to warn our citizens,’ Howard said.

‘They have to stay away from places frequented by Westerners, that’s the advice we give.’
Foreign Minister Alexander Downer said the travel warning was not based on information about a specific attack.

‘We don’t have any information designating a specific target or for that matter a specific time of a terrorist attack,’ Downer told national radio.

‘We have a constant flow of information about possible terrorist activity in Indonesia.’

The recent arrest of high ranking operatives in the Islamic extremist group blamed for the Bali bombings, Jemaah Islamiah (JI), was a reminder of the ongoing threat, he said.

The head of JI, Zarkasi, and the leader of its military wing, Abu Dujana, were arrested by Indonesian anti-terror police last month along with six other suspected militants.

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