January 2013

Reaction was swift, and mixed, to the Federal Trade Commission's settlement with Google over allegations of anticompetitive conduct.

Ed Black, president of the Computer and Communications Industry Association, whose members include Google and Google critic and search competitor Microsoft, called the FTC's decision not to proceed with a case against Google for anticompetitive search allegations "the right call." But Black also found cause for concern, specifically Google's voluntary commitment to allow entities to opt out of its specialized results pages, which he sees as a potential threat to fair use rights.

The Progressive Policy Institute also saw the FTC decision as the right one. FairSearch.org, whose members include Google search competitors Expedia, Hotwire, Kayak -- and Microsoft -- called the FTC decision "disappointing and premature, coming just weeks before the company is expected to make a formal and detailed proposal to resolve the four abuses of dominance identified by the European Commission, first among them biased display of its own properties in search results."

[Commentary] Now that U.S. regulators have backed down from a confrontation, Google's rivals, led by Microsoft, are sure to press their case with the European Union and with attorneys general in various states. But Jan 3 was a day for Google to gloat. "The conclusion is clear: Google's services are good for users and good for competition," David Drummond, Google's chief legal officer, wrote on the company's official blog. The Federal Trade Commission did obtain some concessions from Google: the company will license important mobile technology patents on "fair, reasonable and non discriminatory terms;" it will allow businesses to easily take their advertising campaigns from Google to rival search engines; and it will voluntarily agree to some changes in its relationship with "vertical" search engines like Yelp. But as some analysts noted, those concessions, especially on ads and vertical search, were merely tactical. Google held firm on these issues until now with one goal: give something to the FTC so it could close the search bias case and save face.

The State Department took issue with the timing of Google executive chairman Eric Schmidt's forthcoming trip to North Korea with former New Mexico Gov. Bill Richardson, saying it's not "particularly helpful."

Schmidt and Richardson are heading on a private trip to North Korea that could take place as soon as this month, The Associated Press reported, citing two people familiar with the group's plans. "Frankly, we don't think the timing of this is particularly helpful, but they are private citizens, and they are making their own decisions," State Department spokeswoman Victoria Nuland told reporters at a press briefing when asked about the AP report. She pointed to North Korea's launch of a long-range rocket last month. Nuland said the former governor and Google executive are traveling in an "unofficial capacity" and will not be accompanied by any U.S. officials. She added that the two are "well aware" of the department's views on their trip and declined to comment further on whether they contacted the department about their travel plans.

Warner Brothers has settled a big part of a significant lawsuit that alleged the creators and executive producers of Smallville were cheated out of tens of millions of dollars through sweetheart license-fee deals that the studio made with its sister TV networks.

Tollin/Robbins Productions submitted papers in Los Angeles Superior Court to dismiss its claims. The Tollin/Robbins lawsuit from Smallville showrunners Mike Tollin and Brian Robbins seeking more than $100 million in damages was filed in March 2010, about a year before the long-running show about Superman's earthly upbringing ended after 10 lucrative seasons on the air. The case touched upon a sensitive issue in Hollywood: so-called "vertical integration." The producers contended they were deprived of significant profits when WBTV allegedly undersold the series to affiliates the WB Network and then The CW instead of licensing the series to outside companies. Part of the case from Killara Productions, run by Smallville co-developer Miles Millar and Leonardtown Productions and operated by Alfred Gough, will continue.