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ASHCROFT READY FOR HIS COPYRIGHT CLOSE-UP John Ashcroft is not exactly a hero in Hollywood. But the unapologetically conservative attorney general may share more common ground with liberal movie studio executives than meets the eye. On Oct. 12, Ashcroft will be in Los Angeles to unveil a series of new Justice Department initiatives targeting intellectual property crime � an expensive problem confronting the film industry. According to Ashcroft’s deputy chief of staff, David Israelite, the attorney general will pledge to add more prosecutors devoted solely to pursuing IP cases and to enhance IP-related training for federal law enforcement agents and foreign investigators. Israelite, who headed the DOJ IP task force that drew up the recommendations, says an assessment of the cost of the initiative has not yet been completed. Israelite calls the effort � which comes just weeks before a presidential election that might change the leadership of the Justice Department � “the most ambitious and aggressive crackdown on IP theft in U.S. history.” As part of the department’s IP initiative, Ashcroft will endorse new legislation to expand the range of copyright charges prosecutors can bring. One recommendation, modeled after existing drug laws, would criminalize the possession of pirated material with intent to distribute. “If you walk into a warehouse and find 10,000 copies of the exact same DVD, it is pretty clear they are not all for private use,” Israelite says. “We’d like to change the law so that prosecutors would be able to make the charge right then, instead of waiting to catch the suspect in the act of selling.” The DOJ task force stopped short, however, of endorsing proposed legislation that would enable the government to sue citizens sharing digital files over the Internet for personal use. Adam Thierer, director of telecommunications studies at the libertarian Cato Institute, says the Justice Department “struck the right chord” by focusing on prosecuting egregious criminal offenders. But Thierer says he is skeptical that new laws are needed. “Congress increasingly wants to legislate on every new copyright matter under the sun,” he says. “New legislation and regulation should only be a last resort.” Since the IP task force was launched in March 2004, Israelite and other DOJ officials have worked closely with the music, motion picture, and software industries. Israelite says he also has met with representatives of file-sharing software companies like KaZaA. Still, not everyone feels they were included in the task force’s process. Fred von Lohmann, a lawyer with the San Francisco-based Electronic Frontier Foundation, which typically opposes strict regulation of intellectual property, says Israelite never met with his organization. “We had a meeting. Then, at the last minute David canceled,” von Lohmann says. Israelite says he reached out to the group, but a meeting was never firmly scheduled. � Vanessa Blum RIGGS ROLL Amid allegations of mismanagement and money laundering at Riggs Bank, a host of lawyers have found work defending those affiliated with the bank. Current and former executives and directors at Riggs are subjects of a Justice Department criminal probe and could face fines or even lifetime bans from banking from regulators at the Treasury Department and the Federal Reserve. Skadden, Arps, Slate, Meagher & Flom‘s Carl Rauh, a former U.S. attorney in the District, and Robert Bennett are representing Joe, Barbara, and Robert Allbritton, the family that has controlled Riggs for more than two decades. Russ Bruemmer, then-general counsel to former Central Intelligence Agency Director William Webster and a partner at Wilmer Cutler Pickering Hale and Dorr, represents the outside directors of Riggs’ holding company. That list includes Jack Valenti, the retired Motion Picture Association of America lobbyist; Steven Pfeiffer, chairman of the executive committee at Fulbright & Jaworski; and Wilkes Artis partner Charles Camalier. Other Riggs board members are being represented by John Murphy Jr., former general counsel of the Federal Deposit Insurance Corp., and fellow Cleary, Gottlieb, Steen & Hamilton partner Linda Soldo. � Jason McLure PREP SCHOOL For Vice President Dick Cheney, the warm-up for last week’s debate with Sen. John Edwards (D-N.C.) was a family affair. Daughter Elizabeth Cheney coordinated debate prep as she did in 2000, while son-in-law Philip Perry traded off performing the role of moderator. Perry, a partner in the D.C. office of Latham & Watkins, says the practice sessions were often interrupted by the VP’s dogs and grandchildren. But not everyone was a blood relation; there were many familiar faces from the 2000 campaign, including Rep. Rob Portman (R-Ohio). Portman, who played vice presidential candidate Joe Lieberman in 2000, stood in for Edwards. As for Edwards, Williams & Connolly partner Robert Barnett played Cheney for the Democrat’s debate prep. � Vanessa Blum AGREEING TO DISAGREE It might have been helpful if Fannie Mae’s chief executive, Franklin Raines, and federal regulator Armando Falcon Jr. had simultaneously shared the witness table at last week’s House Financial Services subcommittee hearing on Falcon’s blistering 211-page critique of the mortgage company. At least then, Rep. Richard Baker (R-La.) and his fellow committee members could have cleared up some of the many discrepancies in the two men’s testimony. For example, why did Falcon’s Office of Federal Housing Enterprise Oversight issue subpoenas to Fannie Mae during the course of its investigation? Lack of cooperation, Falcon bluntly told members during the Oct. 6 hearing. Raines had a different explanation: OFHEO attorneys had told his lawyers that the subpoenas were issued “not because of a lack of cooperation, but to get people on the record.” No one attempted to reconcile the discrepancy. Instead, the hearing, which served up Falcon in the morning and Raines in the afternoon, immediately split along party lines: Democrats were distinctly sympathetic to Raines; Republicans sided with Falcon. Besides, noted one House staffer dryly, “There are different degrees of interpretation of cooperation.” � T.R. Goldman SEX AND SCALIA Until recently, it would have been difficult to imagine two sets of words less likely to appear together in the same sentence than these: “ Antonin Scalia” and “ sexual orgies.” But thanks to Justice Scalia’s colorful speechifying, a misquote in the Harvard Crimson, and the globalization of online news media, that changed. Reporting on a speech Scalia gave at Harvard Sept. 28, Crimson reporter Daniel Hemel quoted Scalia as saying, “I even take the position that sexual orgies eliminate social tensions and ought to be encouraged.” The context, apparently, was Scalia’s assertion that the personal views of judges should not affect their decisions. Hemel says that it was so obvious that Scalia was joking that he and his editor agreed it would insult readers’ intelligence to write “Scalia joked” after the quote. Apparently the Guardian in Britain did not get the joke. Soon that story was picked up by the Drudge Report, and as Hemel says, “Everything went downhill from there.” Compounding the craziness was the fact that the quote was slightly inaccurate. Scalia had made a similar statement at another speech in Washington a week earlier, so it was possible to posit that, in fact, Scalia said, “I even accept for the sake of argument that sexual orgies eliminate social tensions and ought to be encouraged.” The Crimson published a correction. � Tony Mauro TERROR TIES A Miami grand jury has issued fresh criminal charges in the government’s case against Florida computer programmer and Palestinian national Adham Amin Hassoun. Hassoun and Mohammed Hesham Youssef, said by Hassoun to be a former American Airlines employee in Miami, were indicted late last week for allegedly conspiring to murder, kidnap, and maim individuals in a foreign country. The charges were added to existing charges that the men conspired to provide material support to terrorists. Legal Times and The Miami Daily Business Review reported last month that Jose Padilla, the alleged “dirty bomber” designated as an “enemy combatant” by the government, is an unindicted co-conspirator in the case. The new indictment alleges that Hassoun and Youssef conspired “to fund and support overseas violent jihad conflicts involving acts of murder and kidnapping” in Bosnia, Chechnya, and Somalia. Youssef is imprisoned in Egypt, authorities have said. Hassoun has been jailed in Miami since his arrest in June 2002. � Dan Christensen, Miami Daily Business Review NEW TRICKS More than a half-century of experience walked out of Patton Boggs‘ M Street office for the last time Friday, and no, it wasn’t legendary lobbyist Tommy Boggs. Moving on were partners Garret Rasmussen and Steven Schneebaum, each of whom had been with the firm since the late 1970s. Schneebaum, who chaired Patton Boggs’ pro bono committee since its inception in 1983, will bring his international trade expertise to Greenberg Traurig. “I’m thinking that if I don’t do something new now it will soon be too late,” he says. Rasmussen, who led Patton Boggs’ antitrust practice, is jumping to Orrick, Herrington & Sutcliffe. He follows in the footsteps of Lanny Davis, former White House special counsel to President Bill Clinton, who left Patton Boggs for Orrick last October. � Jason McLure TRUST TALK It was a transatlantic antitrust fest last week when outgoing European competition chief Mario Monti joined his U.S. counterparts at a George Mason Law Review Symposium on Oct. 6. He sat down at a roundtable with former Federal Trade Commission Chairman Timothy Muris to discuss the European antitrust rules that Monti revamped. Industry lawyers mixed it up with government types: Makan Delrahim, deputy assistant attorney general for the Antitrust Division of the Department of Justice, discussed European merger law and intellectual property issues with Kristin Adrian of Nestl� USA and Penny Newman of Bertelsmann AG. New Federal Trade Commission Chair Deborah Majoras opened the event. But it wasn’t all about cooperation. In a luncheon address, R. Hewitt Pate, assistant attorney general for antitrust in the DOJ, said that “only time will tell” whether synchronizing European and U.S. antitrust laws will “be good or not.” � Lily Henning MIDAIR COLLISION European and U.S. governments last week filed complaints at the World Trade Organization, each claiming that the other supplied billions of dollars in unfair subsidies to protect its domestic large civil aircraft industry, which consists of two companies: U.S.-based Boeing Co. and Europe’s Airbus. Now, the two companies along with their lawyers at Wilmer Cutler Pickering Hale and Dorr, representing Boeing, and Sidley Austin Brown & Wood, counsel for Airbus, will help their governments prove they’re right. Both sides indicated that they prefer settlement to litigation, says Robert Novick, head of Wilmer’s international trade group. Novick will head up the Wilmer team for Boeing. At Sidley, Daniel Price and colleagues in the D.C., Geneva, and Brussels offices will work on the case, says partner Andrew Shoyer. � Christine Hines

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