Law Commons^™

Fixing Notice Failure: How To Tame The Trolls And Restore Balance To The Patent System, Mark Rawls

William & Mary Business Law Review

Patent litigation has become more frequent, more uncertain, and more expensive. Much of this can be traced to the rise of patent trolls asserting vague and uncertain software patents. Trolls have been derided as bringing frivolous and vexatious suits against productive companies, sapping the very same innovativeness that the patent system is supposed to encourage. Instead, companies are subject to nuisance-value suits as an ordinary course of business; for less established companies, such suits can threaten their very existence. Often, because of uncertain rules about claim construction and the granting of very broad patents, the accused infringer has no notice …

Waiving The Duty To Mitigate In Commercial Leases, Jacqueline Sandler

William & Mary Business Law Review

This Note examines a largely unexplored consequence of jurisdictions adopting a default duty to mitigate for commercial leases: whether a contract provision waiving the duty should be enforced. Only a few courts across the country have addressed the waiver issue in a commercial setting. At least two different appeals courts have enforced a waiver clause and claim that public policy supports their decision. In contrast, a federal court has stated the opposite—that public policy demands waiver provisions be void. Another state has outright voided all waiver clauses by statute. Courts that have enforced waivers have asserted that commercial parties have …

Tobacco Advertising And The First Amendment: Striking The Right Balance, Arlen W. Langvardt

William & Mary Business Law Review

With the enactment of the Family Smoking Prevention and Tobacco Control Act of 2009, Congress launched a major expansion of its regulatory efforts regarding tobacco advertising and promotion. The Act restricts advertising in various ways, featuring a requirement for updated textual versions of health warnings long required for cigarette packages, as well as a requirement that cigarette advertisements must be accompanied by prominently displayed color graphic images to be designed by the U.S. Food and Drug Administration (FDA).

The Act’s advertising restrictions and the color graphics requirement have been challenged on First Amendment grounds, as has an FDA regulation setting …

Worse Than The Tower Of Babel? Remedying Antitrust’S False Dichotomy Through De Novo Appellate Review, Steven Semeraro

William & Mary Business Law Review

Modern antitrust analysis rests on a strange perch. Its paradigmatic method—pretentiously entitled the Rule of Reason—appears (but only appears) to be a dichotomous analytic. At the first stage, a court supposedly defines the relevant market and determines, as a matter of fact, whether marketplace forces constrain the defendant from profitably raising price above the level that would prevail in a competitive market. Only when market forces are inadequate to protect consumers, that is, the defendant has market power, does the court proceed to stage two, at which it assesses, as a matter of law, whether the defendant used its power …

Kickstarter My Heart: Extraordinary Popular Delusions And The Madness Of Crowdfunding Constraints And Bitcoin Bubbles, David Groshoff

William & Mary Business Law Review

This Article builds on my existing research program that (a) broadly seeks to analyze laws, regulations, instruments, and policy levers that inhibit a market’s ability to recognize an asset’s intrinsic value, whether in terms of financial, social, or human capital, and (b) explores and advances interdisciplinary corporate governance theories by employing a heterodox economic analytic to derive its proposal to the paradox of an unregulated virtual currency market (Bitcoins) and an overly regulated crowdfunding market (Kickstarter).

The Article functions not only as an homage to Charles MacKay’s legendary 1841 book, Extraordinary Popular Delusions and the Madness of Crowds, which described …

Ensuring Contractor Accountability Overseas: A Civilian Extraterritorial Jurisdiction Act Would Be Preferable To Expansion Of The False Claims Act, Rachel M. Kelly

William & Mary Business Law Review

This Note considers the advisability of amending the False Claims Act’s qui tam provisions beyond instances of fraud to include criminal allegations against government contractors employed overseas. It considers the negative effects that result from qui tam actions in the fraud context and discusses alternatives for holding contractors accountable for crimes committed overseas that could avoid those negative effects. This Note particularly focuses on and recommends a civilian corollary to the Military Extraterritorial Jurisdiction Act—the Civilian Extraterritorial Jurisdiction Act. It discusses the benefits that the Civilian Extraterritorial Jurisdiction Act would provide such as increased judicial efficiency, increased prosecutorial flexibility, and …

An Inevitable Conflict: The Subordination Of Contract Principles To Informed Consent In The Business Of Banking Umbilical Cord Blood, Abigail Norris

William & Mary Business Law Review

This Note explores the business of banking umbilical cord blood for later, and potentially life-saving, use. It discusses the importance of the stem cells found in umbilical cord blood, and the complexities involved in applying business models to its collection, storage, and use. Furthermore, this Note discusses how contracts governing the storage and use of umbilical cord blood can conflict with concepts of human dignity and informed consent. It concludes that in the event umbilical cord blood banking contracts conflict with informed consent, the contract should be subordinated to a person’s understanding, acquired through procedures intended to achieve the patient, …

Broker-Dealers, Institutional Investors, And Fiduciary Duty: Much Ado About Nothing?, Lynn Bai

William & Mary Business Law Review

Under the mandate of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the SEC is soliciting public opinions on whether broker-dealers should be subject to a fiduciary duty when advising retail and institutional investors. This Article focuses on the advisability of such a proposal for institutional investors. It shows that, first, a fiduciary duty could potentially enhance broker-dealers’ standard of conduct for only a subset of institutional investors who are well capitalized, capable of assessing risks independently, and acknowledge in writing their nonreliance on broker-dealers’ advice. Thus, the benefit of fiduciary duty is much narrower than what …

Property And Mortgage Fraud Under The Mandatory Victims Restitution Act: What Is Stolen And When Is It Returned?, Arthur Durst

William & Mary Business Law Review

The United States Circuit Courts of Appeals are split on how to calculate restitution in a criminal loan fraud situation where collateral is involved. This trend is best illustrated in cases involving mortgage fraud. The split stems from disagreement over how to account for the lender’s receipt of collateral property. The Third, Seventh, Eighth, and Tenth Circuit Courts of Appeals consider the property returned when the person defrauded receives cash from the sale of collateral property. The Second, Fifth, and Ninth Circuits deem the property returned when the lender takes ownership of the collateral property. This Note argues that the …

A Corporation Has No Soul — The Business Entity Law Response To Challenges To The Ppaca Contraceptive Mandate, Thomas E. Rutledge

William & Mary Business Law Review

The most contentious matter in the implementation of the Patient Protection and Affordable Care Act is not one of health care, but rather one of the law of business organizations. Numerous for-profit business organizations have challenged the portion of the PPACA and its related regulations requiring that group health insurance plans provide, on a no-cost sharing basis, coverage for a variety of procedures and prescription medicines involving contraception and what some describe as “abortificants.” In these suits, the various business ventures and their owners assert that they should be exempt from the requirement of the mandate on the basis that, …

The Impossible, Highly Desired Islamic Bank, Haider Ala Hamoudi

William & Mary Business Law Review

The purpose of this Article is to explore, and explain the stubborn persistence of, a central paradox that is endemic to the retail Islamic bank as it operates in the United States. The paradox is that retail Islamic banking in the United States is impossible, and yet it remains highly desired. It is impossible because central features of modern banking regulation conflict with fundamental aspects of shari’a as it is understood in modernity in the context of finance. It is unimaginable that regulators will create exceptions to, or somehow significantly amend, the modern financial regulatory system in the radical fashion …

Taking Stock: Insider And Outsider Trading By Congress, Jeanne L. Schroeder

William & Mary Business Law Review

Spring 2012 saw the enactment of the “Stop Trading on Congressional Knowledge Act of 2012” or “STOCK Act.” It supposedly repealed an exemption from the federal securities laws that made insider trading by members of Congress “totally legal.” As every securities lawyer knows, however, there never was such an exemption. Representatives and Senators have always been subject to the same rules as the rest of us. It is just that insider-trading law is so incoherent that legal scholars sharply disagreed as to when, or even if, trading by government officials on the basis of material nonpublic information gleaned from their …

Marketing Of Investment Advisers To Public Pension Plans: Achieving Transparency Through Lobbying Regulations?, Christina M. Sumpio

William & Mary Business Law Review

In the past decade, public pension plans and their outside investment advisers have been at the center of scandals involving bribery, blatant asset mismanagement, and widespread corruption. In response to this corruption, the U.S. Securities and Exchange Commission and many state legislatures have adopted laws addressing “pay-to-play,” the custom of making political contributions or other payments to state or local officials in return for an opportunity to “play”—invest the public pension fund money. This Note examines certain pay-to-play legislation enacted by state and local governments seeking to regulate investment advisers and public pension plans through the promulgation of lobbying regulations. …

Contracting In The Dark: Casting Light On The Shadows Of Second Level Agreements, Abigail R. Simon

William & Mary Business Law Review

In the early days of the Internet, copyright owners concentrated on eliminating infringement threats posed by the new technology. Today, many copyright owners are partnering with major user-generated content platforms in order to participate in and receive compensation for some third-party infringement occurring on the Internet. YouTube pioneered such partnership arrangements in 2006 with a new kind of copyright license now referred to as a “second level agreement.” In 2008, YouTube unveiled Content ID, which streamlined the process for entering into second level agreements with the site. This Note analyzes Content ID and the second level agreements underlying it to …