Contractor WinMagic owes Samsung SDS America (SDSA) $277,100 in refunds for botching the installation of encryption software for itself and an unnamed client, alleged the U.S. subsidiary of Samsung’s global information technology company in a federal complaint Thursday. SDSA signed an April 2016 contract to license WinMagic’s SecureDoc Enterprise encryption software for its own use and for “its client’s business operations,” said the complaint (in Pacer), filed in U.S. District Court in Newark, New Jersey. The complaint didn’t identify the client, but a copy of the attached contract suggested it was a large customer, because it said SDSA ordered 7,000 copies of the SecureDoc software. SDSA’s representatives “specifically and unequivocally advised WinMagic that the SecureDoc solution must be compatible with the encryption configuration that SDSA and its client were required to utilize on the computers used in their business operations based upon the requirements of their respective parent companies,” said the complaint. WinMagic nevertheless failed to properly “configure the SecureDoc solution to be compatible with the very encryption requirements that SDSA previously identified as a mandatory component” of the contract, it said. Almost immediately after WinMagic technicians began installing SecureDoc in September 2016, SDSA “provided WinMagic with written notice of serious issues” with the encryption software that “were so severe that SDSA was wholly unable to use the technology solution for any purpose,” it said. Three months later, SDSA canceled the contract and demanded its refund, “consistent with the express warranty provision contained” in the agreement, it said. “To date, WinMagic has failed and refused to provide a full refund of the $277,100 that SDSA paid to WinMagic for SecureDoc,” said the complaint, which alleged fraudulent concealment, negligent misrepresentation, unjust enrichment and other accusations. WinMagic representatives didn’t comment Friday.

While TVEyes' redistribution of Fox content is transformative by making specific Fox content searchable and convenient, that redistribution -- involving virtually all Fox content -- is so broad that TVEyes failed to show its video search product can be justified as fair use, the 2nd U.S. Circuit Court of Appeals said in a docket 15-3885 ruling Tuesday. The 2nd Circuit also reversed a lower court ruling that some TVEyes functions are fair use and remanded a permanent injunction against TVEyes so the lower court can revise the injunction to enjoin the company from offering its Watch function. Judge Dennis Jacobs wrote the opinion, joined by Jon Newman. In a concurring opinion, U.S. District Judge Lewis Kaplan of Manhattan, sitting by designation, didn't agree with the majority's characterization of the Watch function being "somewhat transformative." TVEyes' counsel didn't comment.

Panasonic filed applications Feb. 16 to register “HomeHawk” as a trademark for the remote home monitoring system the company introduced at CES, Patent and Trademark Office records show. Panasonic, also on Feb. 16, applied in the U.S. and Japan to trademark a stylized logo for goods and services that include “home security monitoring cameras.” Company representatives didn’t comment Monday.

The Office of the U.S. Trade Representative plans a hearing March 8 on its “Special 301” investigation of foreign countries that deny adequate and effective protection of intellectual property rights or deny fair market access to U.S. citizens who rely on IP protection, it said in Thursday's Federal Register. The hearing had tentatively been set for Tuesday. Post-hearing briefs are now due March 14, it said. USTR’s Special 301 report is still set for publication around April 30. Friday, USTR didn't have for us more details of the hearing at 1724 F St. NW, Rooms 1 and 2.

The Copyright Office website "is currently unavailable, due to technical problems," the CO said Thursday afternoon, and at that time we couldn't access its website or some pages associated with the parent Library of Congress. Clicking on some URLs associated with CO and LOC returned this error message on our browser: "The requested URL / was not found on this server. Additionally, a 404 Not Found error was encountered while trying to use an ErrorDocument to handle the request." The LOC didn't comment further.

With the FCC order set to take effect March 5 authorizing voluntary deployment of ATSC 3.0 (see 1802010025), MPEG LA is encountering “a great deal of enthusiasm for an ATSC 3.0 pool license,” said spokesman Tom O’Reilly. Having announced in August a call for patents essential to the 3.0 suite of standards (see 1711010054), “to facilitate creation of a joint license for ATSC 3.0,” MPEG LA held two meetings on forming a patent pool “and will hold our third meeting next month,” said O’Reilly. “Fifteen companies are participating so far.” He gave no timeline for when a 3.0 patent pool might be operational. MPEG LA runs 15 patent pool programs, including one for nine licensors for some essential patents embedded in ATSC 1.0. The two largest joint-license programs MPEG LA administers in terms of the number of participating licensors are those it runs on behalf of 38 companies in the AVC/H.264 pool and 36 companies in the HEVC/H.265 pool. The FCC 3.0 order released Nov. 21 said the commission will use the first five years of 3.0 deployment to "monitor" how the marketplace handles royalties for essential patents, electing for now not to impose licensing rules on 3.0's rollout (see 1711210004).

The Patent and Trademark Office granted the UHD Alliance’s petition to “revive” the group's application to register the Mobile HDR Premium logo as a certification mark for qualifying smartphones, tablets and other mobile devices, said the agency in a Wednesday notice. PTO declared the application dead in late December after an agency examiner rejected it for several flaws in May and the alliance failed to respond to the rejection by the six-month deadline (see 1801140001). The alliance “has firsthand knowledge that the failure to respond to the Office Action by the specified deadline was unintentional,” said the group's Tuesday petition. Despite PTO’s abandonment of the application, alliance President Mike Fidler said his group has “absolutely no intention” of ditching the Mobile HDR Premium logo (see 1801180031). Mobile World Congress (MWC) opens Feb. 26 in Barcelona, where Fidler told us Thursday the alliance plans to promote the logo, having unveiled it officially for the first time at last year’s MWC (see 1702280045).

Calling 2017 a year of "challenges" after integration of DTS and Tessera, Xperi CEO Jon Kirchner on its fiscal Q1 call Tuesday projected North American HD Radio new car design wins to reach 65 percent penetration by 2022 on deployment in lower-end models, up from 50 percent last year. Globally, Xperi hopes to establish connected radio as a “must have” offering for OEMs. Mobile market trends include 3D face recognition, multi-camera, multi-modal biometric security features, said the top executive. He also cited Xperi’s recently announced partnership with Huawei and Imax for augmented and virtual reality experiences in China. The company is moving its focus beyond IP, where it settled litigation with Broadcom via a multiyear license, and has five trial dates with Samsung 2018-19, Kirchner said.

Led by eight music organizations, 213 artists back passage of the Compensating Legacy Artists for their Songs, Service and Important Contributions to Society (Classics) Act, which would ensure royalty payments to artists when music recorded before Feb. 15, 1972, is played on digital radio. The coalition argued Tuesday the bill would close one of “copyright law’s most glaring loopholes” (see 1802080046). An advertisement has the artists saying digital radio earns billions of dollars a year on the older music, but the artists and copyright owners take home nothing due to ambiguity in state and federal copyright law. Among those signing were A2IM, the American Federation of Musicians, Content Creators Coalition, musicFIRST Coalition, Recording Academy, RIAA, Screen Actors Guild-American Federation of Television and Radio Artists, and SoundExchange.

The 4th Circuit Court of Appeals' BMG v. Cox is of limited relevance to issues before U.S. District Court in Austin and doesn't support a variety of music labels in their opposition to Grande Communications' pending motions to dismiss, Grande said in a docket 17-cv-365 response (in Pacer) last week, replying to the labels' filing of supplemental authority pointing to the decision (see 1802080001). The cable operator said Cox doesn't address a "fatal" deficiency in the plaintiffs' claims -- the failure to allege facts showing specific instances of underlying direct copyright infringement by any Grande subscribers. Grande said even under the "willful blindness" intent standard allowed in Cox, labels didn't state a claim for contributory infringement and don't show a willful blindness to any actual instance of infringement.