E-Book Settlement by Macmillan Publishing
Staring down the barrel of a potentiallfy huge “worst case” judgment, publisher Macmillan agreed to a settlement with the U.S. Justice Department in the ongoing dispute with publishers of e-books. At this point, only Apple has not reached a settlement with the government.
E-Book Publisher Reports it Had No Choice But Settlment with Department of Justice
New York-based Macmillan, the publisher of e-books under various affiliated publishers, settled because it could not afford to lose.
As reported in the New York Business Jourrnal, John Sargent, Macmillan chief executive explained in a letter that “In this action the government accused five publishers and Apple of conspiring to raise prices. As each publisher settled, the remaining defendants became responsible not only for their own treble damages, but also possibly for the treble damages of the settling publishers (minus what they settled for). A few weeks ago I got an estimate of the maximum possible damage figure. I cannot share the breathtaking amount with you, but it was much more than the entire equity of our company.”
Digital Publisher Settle with Justice Department
The Justice Department reported the settlement on Friday with Verlagsgruppe Georg von Holtzbrinck GmbH, Macmillan’s parent corporation, but is purusing its claim against Apple, which purportedly conspired with book publishers to raise prices charged consumers for e-books.
The Justice Department filed the suit in April 2012. To date it has settled claims against Hachette Book Group, HaperCollins Publishers, Penguin Group (USA) and Simon & Schuster.
The settlement will require Macmillan to remove existing restrictions on discounting and promotions by e-book retailers, as well as prohibiting similar arrangments until 2014. The settlement must be aproved by the federal District Court in New York. Similar agreements with other settling publishers have already been approved.
Macmillan’s line of putlishers include St. Martin’s Press and Farrar, Straus and Girous.
See Macmillan settles federal e-book lawsuit – New York Business Journal
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No Passing Off in Substituted Product
Lanham Act Reverse Passing Off Claims Fail in Stormwater Contract Case
A construction contract that allows substitution of a product by a lesser-know “equal” is a poor basis for infringement and unfair competition claims under the federal Lanham Act or Florida state law, according to the Eleventh Circuit Court of Appeals.
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Trademark Infringement Claimed In Contract Bid
Plaintiff Suntree is the manufacturer of baffles, stormwater treatment structures that separate debris and various types of pollutants from stormwater as they pass through. The baffles are vaults of sorts, with various levels and controls. The City of Rockledge, Floridaspecified the baffles of Suntree, the best-know manufacturer of its industry, or “approved equal” in a construction contract.
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The winner of the bid substituted baffles made by the defendant Ecosense, with the approval of the city. Suntree sued, but its claims did not withstand summary judgment and the 11th Circuit affirmed, finding no evidence either of actual confusion or a likelihood of confusion.
Suntree claimed that the contractor had used its mark in the submission of its bid and that it had engaged in unfair competition because it submitted the bid with the plan of substituting another manufacturer’s product after winning the contract. The court rejected this theory, since there was no evidence that anyone was fooled – of likely to be fooled – about the source of the baffles.
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