Illinois Business Law Journal

Wait 'Til Next Year: When Will Comcast and The Big Ten Network Reach an Agreement?

I. INTRODUCTION

When the college footballs season kicks off in August, Midwestern cable customers may finally get the chance to see what all the fuss over the Big Ten Network (BTN) is about.  After over a year of tense negotiations, published reports indicate that the BTN and Comcast are nearing a deal to air the channel on the Midwest's largest cable provider.[1]  Upon becoming the first conference to announce the creation of its own cable station, the Big Ten counted on the appeal of being able to guarantee its fans the ability to see nearly every game played by conference teams.[2]  When negotiations commenced with Midwest cable providers, however, Comcast and its competitors balked at the BTN's high asking price and broad distribution demands.[3]  The ensuing stalemate prevented most Midwest fans who do not have satellite cable from viewing the much-anticipated Ohio State-Wisconsin football game in November.[4]  Additionally, the Wisconsin-Indiana and Wisconsin-Purdue men's basketball games in February were also unavailable to most fans within the Big Ten region.[5]

Months of public sparring between the BTN and Comcast seem to have finally given way to a compromise.  As major sports leagues are trending toward cable broadcasting, the anticipated agreement between Comcast and the BTN is sure to impact fans and cable customers nationwide, while setting a precedent for future contractual negotiations between cable providers and athletic leagues.

Let Franchisees Decide to Arbitrate

I. Introduction

     Franchises are a strong component of the U.S. economy.  In 2004, there were over 767,000 franchises in the United States which contributed 9.8 million direct jobs to the economy. [1]  According to a 2002 study, half of the franchise agreements analyzed contained arbitration clauses. [2]  With the passage of the Federal Arbitration Act and subsequent court rulings, a policy favoring arbitration has been established. [3]  In fact, most courts will enforce arbitration clauses in a majority of the cases. [4]  In contrast to this trend, both congressional legislation and court decisions have been seen to back away from an unwavering support of pre-dispute arbitration.  Should the courts and congress become more involved in the use of arbitration in the context of a franchise relationship?

Evaluating E-Discovery Software Vendors: Important Questions to Ask

I.  Introduction
    Lawyers face many challenges in the litigation process.  Many of these challenges present themselves during the discovery process, which can be incredibly expensive. [1] With the ubiquitous nature of current technology, especially in the business world, the discovery rules have had to adapt.  New rules, the electronic discovery (“e-discovery”) rules, in the Federal Rules of Civil Procedure account for discovery of electronic documents. [2]  Attorneys have had to adjust to these new rules by learning a novel language, and familiarizing themselves with how to obtain such electronic information from their clients and what kinds of information to ask for from opposing counsel. [3]
    One way attorneys can adapt to these new rules and attempt to discover all relevant documents at a lower, efficient cost is to invest in e-discovery software.  Many different vendors, such as Attenex, have software specifically designed for attorneys and their discovery needs. [4]  Different types of software can search through computers, databases or hand-held devices for a variety of documents, pictures, data and other files that are relevant to the lawsuit.
    This article provides a guide for lawyers searching for ways to make e-discovery easier by choosing an e-discovery software vendor.  The first step when evaluating vendors is to find one that has the necessary combination of legal and technical knowledge.

Fannie Mae and Freddie Mac: Setting the Industry Standard

I. Introduction

After the six year housing boom ended in the summer of 2006, home sales and prices have fallen dramatically.[1]  Overall home sales in 2007 dropped 26.4% from 2006, making it the biggest drop since the Commerce Department began keeping track in 1963.[2]  New home sales fell 18.1% in 2006 and by the end of 2007, sales dropped 56.5% from July 2005's peak home sales.[3]  In 2007, new home sales dropped 26.4%: 32.2% in the West, 26.7% in the Midwest, and 26.3% in the South.[4]  Aside from lacking sales, in areas like Las Vegas and San Diego, more than 40% of home sales in recent months have been related to foreclosures.[5]  Over the past couple of years, the number of forclosures increased, home building declined, the number of empty homes increased, and the domino effect is spreading to other areas of consumer spending.[6]  With a depressed housing market, many believe that changes in the financial and lending industry can help the market get back on track. 

Fannie Mae and Freddie Mac, the two mortgage giants, have undergone many changes in the past few months.  Many are relying on these regulatory changes to help ease the current housing crisis.  Three main changes projected to have a positive impact on the housing market and other financial institutions are: the new appraisal rules, the lowered capital surplus requirement, and the the temporary increase in loan limits.[7]

Fantasy or Reality? Major League Baseball Still Looking to Cash in on Fantasy Baseball

I. Introduction

      In fantasy sports leagues, fans draft current major league players to create their own imaginary roster, with the success of each team hinging on how each player performs throughout the season.[1] Internet sites such as Yahoo! and ESPN pay several million dollars for the right to operate fantasy leagues.[2] Major League Baseball (“MLB”), and St. Louis-based CBC Distribution and Marketing Inc. (“CBC”) have been entangled in a legal dispute over whether MLB players’ names may be used in fantasy baseball leagues.[3] This dispute is noteworthy because the fantasy sports industry generates over $1.5 billion dollars annually.[4] Should MLB prevail, they will hold exclusive rights to players’ names and statistics and may withhold such, likely causing fantasy baseball to be much less appealing to fans.[5] 

Wikileaks: A Cutting-Edge Journalistic Tool or An Affront to Business Privacy?

I.  Introduction

          Wikileaks.org, a website dedicated to compiling leaked documents from governments and corporations, has sought to hold large-scale entities more accountable for their actions through greater transparency of information. [1]  However, by publishing sensitive information it believes to be in the public interest, coupled with the fact that the site has a completely anonymous user base, the site has aroused the ire of international governments and businesses alike. [2]  A recent lawsuit by a Swiss bank in which the bank sought (and briefly received) a permanent injunction to shut down Wikileaks highlights how much controversy the site has generated in its relatively short life span. [3]  While some critics try to paint Wikileaks as a site that engenders illegal activity and as a site that is a threat to privacy, neither claim can be properly substantiated. [4]  Though Wikileaks is controversial, most forms of speech displayed on the site are protected by the First Amendment. [5]

Patent Reform Act Is Considered By U.S. Senate

I.     Introduction
        Robust protection for intellectual property is one of the chief engines for economic growth in the United States.  Patents, copyright and trademark laws provide vigorous, reliable protection for US intellectual property, which is valued at more than $5 trillion by the Commerce Department.  [1]  With regards to patents, most commentators and interested parties agree that at least some type of modification or reform is necessary.

Airline Labor Disputes and the RLA Status Quo Provisions

I. Introduction

On March 7, 2008, the United States Court of Appeals for the Ninth Circuit filed its opinion in the case of International Brotherhood of Teamsters v. North American Airlines. [1] It addressed the question of whether a labor union is entitled to enjoin an air carrier to prevent it from unilaterally altering the working conditions of its pilots, while negotiations for an initial collective bargaining agreement are still pending. [2] The court cited the Supreme Court's interpretation of the status quo provisions of the Railway Labor Act of 1926 in Williams v. Jacksonville Terminal Co., in ruling that unilateral alteration of working conditions are not prohibited in cases where there is no prior collective bargaining agreement, regardless of any pending negotiations. [3] The Teamsters case well illustrates a continuing debate as to whether the Supreme Court's interpretation of the RLA's status quo provisions still adequately serves the RLA's original purpose of promoting peaceable resolution of labor disputes.

The Business of Law: Increased Recruitment and Declining Retention

I. Introduction    
    
    Since 1986, the number of lawyers working at American Lawyer (“Am Law “) 100 firms has tripled, and part of that growth is due to the expansion of associate recruitment and hires. [1] With the increased competitiveness, employers search all over the nation to hire and retain the best and the brightest second and third-year students. [2] In 1975, in an opinion written by Chief Justice Burger, he notes that the practice of law is a business; “it is no disparagement of the practice of law as a profession to acknowledge that it has a business aspect.” [3] Today that statement still holds true. Burger continues by noting that the “forms of competition usual in the business world may be demoralizing to the ethical standards of a profession.” [4] It should not be a surprise that the fields of law and business fields are closely intermingled; indeed, by nature, a law firm is a business and a lawyer is a businessperson. Even though recruiting is only one aspect of legal management, it is one of the most important tasks that contributes great to staying competitive in the global marketplace. [5] Mayer, Brown, Rowe & Maw (“Mayer Brown”) former managing partner, Debora de Hoyos says recruiting “is essential to the firm’s success and commands an incredible investment of resources”. [6]

Are Your Gift Cards Safe?

I. Introduction

On February 19th, 2008 the specialty retailer Sharper Image filed for bankruptcy under Chapter 11 and announced that it would no longer be accepting its gift cards. This came as a shock to consumers, who suddenly found their holiday gift cards worthless. "'That is typical of businesses that reorganize under Chapter 11 bankruptcy, which treats gift cards as a loan to the company, not as cash.'" [1] Chapter 11 allows for an automatic stay of recovery for any claim against the debtor that arose before the filing of the bankruptcy claim. [2] In response to this announcement, C. Britt Beemer, chairman of America's Research Group, projected that this would greatly affect Sharper Image's future. "'You will see a lot of frustration among customers. You basically stole [money] out of the customers' pocket. They will never forgive you.'" [3]

The Existing Labor and Environmental Agreements in NAFTA

As the Ohio Democratic primary approached, Barack Obama and Hillary Clinton pulled out all the stops to secure the few remaining undecided votes in the Democratic Presidential race.  Ohio’s economy has been struggling, and the candidates saw a convenient scapegoat to blame for its industrial decline.  Both candidates vowed to force Mexico and Canada to include labor and environmental agreements into the North American Free Trade Agreement (NAFTA) or risk the US pulling out of the agreement all together. [1] The sharp anti-trade rhetoric had some obvious omissions. NAFTA more than tripled trade between US, Canada, and Mexico and like all barrier reducing trade agreements, has had a beneficial long-term impact on all three economies. [2]  It was supported by politicians and economists of all political leanings, including President Clinton who pushed it through Congress. [3]  But perhaps the most glaring omission in Obama’s and Clinton’s speeches is that NAFTA already includes robust, skillfully crafted labor and environmental agreements. [4]  The same type of agreements they supported in other trade pacts.

The Electronic Trading System – the Sleepless Futures Markets

  In 1997, Joseph B. Dial, then Commissioner of the CFTC, in a meeting with futures industry leaders, envisioned that screen-based systems would threaten open outcry, over-the-counter order matching systems.[1] A decade later, on October 26, 2004, the Commissioner of the CFTC addressed an intellectual property panel that one of the most significant trends affecting the futures industry is technology. Indeed, the turn of the century witnessed a new era of electronic commerce in the commodities and futures trading world. One important factor contributing to the change is attributable to State Street Bank and Trust Co. v. Signature Financial Group, Inc. that cleared away the last hindrance for corporations to invest in innovative process technologies by validating business process patents. [2] Since State Street Bank & Trust, the volume of trading on electronic exchanges has grown ten times larger than the open outcry trading.[3]

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Liability Protection: The Keystone of a Successful Business

I. Introduction

For an entrepreneur, starting a new business can be a fulfilling venture. However, if the company and its assets are not properly protected, the risks that come along with such an endeavor can prove to be costly. This article will first discuss the agency issues that arise in a litigious society. It will then explain the process for retaining liability insurance. Finally, it will conclude by suggesting some simple ways a new business owner can ensure he or she will receive maximum liability protection.

Breach of Fiduciary Duty Suits Arising Out of Yahoo’s Rejection of Microsoft’s Offer

Last month, Yahoo!, the California-based Internet service provider, rejected a “generous” offer by U.S. software giant, Microsoft. [1] Microsoft’s 62 percent premium above Yahoo!’s share was aimed at maximizing synergies that existed between both companies. Microsoft hoped to gain a greater market advantage in the internet search industry while enjoying a majority share of the projected $80 billion market by year 2010. [2] Following Yahoo!’s rejection, some disgruntled Yahoo shareholders have sought legal remedies to voice their dissatisfaction with Yahoo’s decision. [3] In light of three previously decided cases, Emerging, Van Gorkom, and Disney, this article will attempt to provide a legal analysis on the breach of fiduciary duty suits against Yahoo!.

Fidel Castro Has Finally Stepped Down: Now What Should Be Done About That Pesky Trade Embargo?

I. Introduction

Fidel Castro recently stepped down as president of Cuba. Castro's health, not the 46 year trade embargo, was the primary reason for Castro's statement that he "would not seek to retain his post." [1] Anyone seeking a radical change in the policies of Cuba may have to wait indefinitely, as Fidel Castro's younger brother Raul quickly supplanted him. In a ceremony, on February 24th, Fidel's younger brother was formally designated as Fidel's successor as the head of Cuba's Council of state. [2] Furthermore, Raul stressed that although Fidel will step down as president, Fidel will continue to be "consulted on important decisions, especially on those relating to defense, foreign policy and the economy." [3] However, American politicians and the public have yet another opportunity to consider the continuing effects of the trade embargo placed upon Cuba nearly 50 years ago. Clearly, Fidel was able to defy the wishes of the United States for several decades without giving in to pressure to relinquish Cuba's adherence to Communist ideology. Unfortunately, the embargo devastated Cuban citizens. In a country where the average wage per month is $20, more U.S. aid needs to be given. [4] Considering the current economy of Cuba, is the embargo still a "humane method of coercion" against Cuba, or is it detrimental to yet another generation of Cubans? [5]