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David J. Walton

Member
P (610) 832-7455

Steven N. Haas

Vice Chair, Corporate Practice Group
P (610) 832-7441

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    Technology

    Cozen O'Connor Blogs

    Social Media Employment Law

    From the invention of the abacus to the development of cloud computing and in-memory databases, technological innovation has always driven commerce and trade. Our global economic marketplace now depends entirely on the existence and proper use of digital technology. As much as technology creates opportunity and fosters communication, it also introduces exposure to new liabilities. Companies that design technology, as well as those that rely on it for their day-to-day operation, must guard against infringement, misuse, infiltration, and loss. Every business—from biotech firms to bakeries—must have counsel who understand the constantly evolving technologies and how technology laws and regulations impact client business.

    The cyber and technology industry team at Cozen O’Connor was launched by attorneys with experience in a wide range of practices such as risk management, intellectual property, venture capital, commercial litigation, and insurance. Many of these lawyers have been working with technology makers, underwriters, and consumers for decades. They understand the opportunities and risks that technology can pose, and they know how to maximize technology’s potential returns while protecting corporations and individuals from unnecessary risk and exposure.

    On the development side, our clients include high-tech businesses, software and website developers, computer and system maintenance companies, network security companies, application service providers, cloud providers, Internet service providers, IT consultants, e-retailers, and emerging Internet startups. On the commercial-use side, we serve multinational corporations in all industries, retailers, hospitals and health care providers, vendors, insurers, and corporate executives, officers and directors.

    Seasoned attorneys in this industry team assist clients with every phase of the technology life cycle—research and design, development, selection, adoption, utilization, maintenance, data protection, exposure mitigation, and insurance. Since the technologies themselves are the subject of constant and radical change, it is critical for clients to have consistent risk management and technology counsel who have a deep understanding of each client’s specific business model and long-term goals.

     

    SERVICE AREAS

    Litigation

    • Litigate claims involving privacy, defamation, security, data theft, unfair competition, antitrust, advertising, denial of service, content liability, breach of confidence, virus transmission, service disputes, privacy disputes, and intellectual property
    • Counsel clients on intangible property damage losses resulting from viruses, worms, denial of service, power interruptions, and other events affecting hardware and software
    • Investigate computer crime and fidelity losses
    • Represent clients in alternative dispute resolution proceedings
    • Secure subpoenas, preservation orders, restraining orders, and injunctions
    • Provide crisis management to address unauthorized intrusions into clients’ computer systems

    Transactions and Risk Management

    • Advise clients on coverage under all first-party and third-party lines of insurance, negotiate insurance policy terms and protections, and draft indemnity agreements
    • Develop errors and omission insurance contracts for technology designers and producers
    • Draft first- and third-party privacy policies and endorsements
    • Negotiate commercial software and end-user licensing and anti-sourcing agreements, and arrange technology transfer, joint development, and collaboration agreements
    • Represent clients in intellectual property registration, protection, and prosecution
    • Advise clients on the technological aspects of outsourcing

    Corporate and Regulatory

    • Monitor changes in government policy and advocate before Congress and federal agencies
    • Advise on e-discovery issues, including document retention and management
    • Evaluate and assist in the design of breach prevention systems and protocols, and provide crisis management in the event of unauthorized intrusions into clients’ computer systems
    • Counsel clients regarding technology as a strategic asset
    • Advise companies on international jurisdiction and conflicts of law issues
    • Develop personnel, privacy, and data use policies to protect employer intellectual property and prevent the misappropriation of trade secrets and other confidential information
    • Counsel health care and related organizations on HIPAA privacy and security issues

     

    RELATED PRACTICES

    • Intellectual Property
    • Emerging Businesses and Venture Capital
    • Corporate Law
    • Tax
    • Real Estate
    • Insurance Coverage and Claims Litigation

    People

    Simeon D. Brier Member Miami (305) 704-5942
    Richard J. Busis Of Counsel Philadelphia (215) 665-2756
    Dennis L. Cohen Chair, Tax Philadelphia (215) 665-4154
    J.C. Ditzler Chair, London Market London +44 (0)20 7864 2005
    Richard M. Dunn Office Managing Partner Miami (305) 704-5950
    Elizabeth Lai Featherman Member Philadelphia (215) 665-4603
    Steven N. Haas Vice Chair, Corporate Practice Group West Conshohocken (610) 832-7441
    Louis M. Heidelberger Member New York (212) 883.2221
    Michael J. Heller Chief Executive Officer Philadelphia (215) 665-4141
    Erik L. Jackson Member Los Angeles (213) 892-7961
    Thomas M. Jones Member Seattle (206) 224-1242
    Larry P. Laubach Chair, Corporate Practice Group Philadelphia (215) 665-4666
    Katherine M. Layman Member Philadelphia (215) 665-2746
    Paul K. Leary, Jr. Member Philadelphia (215) 665-6911
    Anne M. Madonia Member Philadelphia (215) 665-7259
    Camille M. Miller Co-Chair, Intellectual Property Group Philadelphia (215) 665-7273
    Christopher H. Murphy Member Chicago (312) 382-3155
    David S. Nelson Member Philadelphia (215) 665-2000
    Elena Park Member West Conshohocken (610) 941-2359
    Pamela Pengelley Co-Chair, Subrogation & Recovery, Canadian Region Toronto (416) 361-3200
    Michael C. Schmidt Member New York (212) 453-3937
    Stuart A. Shorenstein Member New York (212) 883-4923
    Matthew J. Siegel Member Philadelphia (215) 665-3703
    Richard J. Silpe Member Philadelphia (215) 665-2704
    MaryTeresa Soltis Member Philadelphia (215) 665-4636
    David J. Walton Member West Conshohocken (610) 832-7455
    Charles H. Wilson Member Houston (713) 750-3117

    Experience

    Represented Metso Minerals, Inc., as plaintiff for patent infringement against Powerscreen Int’l. and Terex Corporation on a patent covering mobile screeners. The jury found, after a 7 week trial, that the patent was valid, enforceable and willfully infringed, and awarded damages of $15.8 million. The court doubled the damages to $31.6 million and issued a permanent injunction.


    Represented Metso Paper, Inc., as plaintiff for patent infringement against Enerquin Air on a patent covering a blow box used on machines for making paper. After a favorable court decision construing the claims of the patent, the defendant settled on favorable terms.


    Handled a closing for a $6 million equity raise (and simultaneous restructuring of debt) for Market Science, Inc, a leading edge health care information technology company. The equity investors included Edison Venture funds, Honeywell International, Inc. Master Retirement Trust, Zurich American Insurance Company and Phoenix Life Insurance Company, all existing investors.


    Handled a $10 million Series B financing for Aria Systems, Inc. by Hummer Winblad and Venrock Associates, two of the largest venture capital funds in the United States.


    Assisted a prominent local venture capital fund, New Spring Ventures, in connection with its acquisition of a controlling interest in Network Communications Technologies, Inc., a North Carolina-based IT services firm, along with the related $5 million financing.


    Represented Zoom Technologies, Inc. in its business combination with Tianjin Tong Guang Group Digital Communication Co., Ltd., a high technology company engaged in electronic and telecommunication product design, development, and manufacturing in the People’s Republic of China, and in the spin-off of its United States operations to its shareholders.


    Represented a leading online media retail company, in the sale of a 70% interest to HIG Ventures for $40.0 million.


    Handled multiple transactions on behalf of Folio Dynamics resulting in its acquisition of SunGard Advisor Technologies, Inc., a subsidiary of SunGard Data Systems.


    Served as lead trial counsel for Oasys Mobile, Verizon Wireless, AT&T and Thumbplay in defense of a trademark infringement claim filed by Mantra Entertainment.


    Represented Vonage Holdings in a at jury trial of a patent infringement action relating to Voice Over Internet Protocol (VoIP). Settled the case on terms the client found favorable following trial.


    Represented NuVox in patent infringement action relating to Voice Over Internet Protocol (VoIP). Settled the case on terms the client found favorable following substantial discovery.


    Represented Peter Kiewit & Sons in patent infringement relating to fiber optic cable communications systems.Settled the case on terms the client found favorable following substantial discovery.


    Represented Chi Mei Optoelectronics in patent infringement action relating to modules for monitor and television displays.


    Represented CardSoft in a patent infringement action relating to point-of-sale devices. Granted Jury award in excess of $15.3 million.


    Represented Unimax Corporation in preventing the U.S. Environmental Protection Agency from adding the Former Macon Naval Ordnance Plant Site to the Superfund National Priorities List. Mr. Fontaine developed and submitted to the administrative record compelling technical arguments demonstrating that mercury contamination in a local stream did not originate from the site formerly owned by Unimax Corp. but was more likely derived from other local sources.


    Represented Folio Dynamics, Inc. in connection with its approximately $17 million Series B financing. The investors were ABS Capital Partners VI, LP, Edison Venture Fund VI, Cambrian Associates and Velocity Venture Holdings, LLC.


    Represented a privately held high technology company in obtaining $8 million of preferred equity financing ($4 million investment from a multinational corporation and $4 million from a private equity fund).


    Represented a technology company in acquisition of wealth management technology platform.


    Represented a a venture backed technology company in connection with third party development of key software programs and control systems, acquisition of key intellectual property rights and protections and enforcement in court of the company’s rights against a key professor at a major teaching institution, the teaching institution and a related company owned by the professor.


    Represented a web-based communications platform company and the development of its patent portfolio which was recently valued in excess of $100mil.


    Represented Hewlett-Packard in a high-profile labor and employment case, attorneys Mark Foley, Mike Schmidt, and Jonathan Cavalier won several hard-fought e-discovery battles and defeated Kodak's petition for a preliminary injunction.


    Represented a global high-tech conglomerate headquartered in China in its multi-year distribution agreement for U.S. baby formula into China.


    Represented a world-leading mobile operator and provider headquartered in Japan in a private placement investment of US$9 billion in a major U.S. wireless service provider.


    Represented Media IQ, LLC, a media audit and benchmarking technology company, in its acquisition by Procurian, Inc.


    Represented client CardSoft in patent infringement action against multiple defendants who manufactured and sold infringing electronic point-of-sale ("ePOS") terminals using “swipe-technology.” Successfully secured patent damages for client in excess of $15 million for CardSoft in jury trial against VeriFone Systems, Inc. and VeriFone, Inc. (VeriFone) and Hypercom Corp. (Hypercom).


    Represented Securus Technologies, Inc. in change of control proceedings involving equity funds (PA PUC Docket Nos. A-2011-2236803 & A-2013-2355870).


    Publications


    Facebook v. Typosquatters: Statutory Damages Under Anticybersquatting Consumer

    May 14, 2013

    Magistrate Judge Westmore recommended that the U.S. District Court for Northern California award Facebook $2.8 million in damages from typosquatters under the Anticybersquatting Consumer Protection Act (ACPA). Facebook v. Cyber2Media, Inc. et al., Case No. 4:11-cv-03619, (N.D.Ca., April 30, 2013). MORE


    Check the White Pages for Personal Information: Massachusetts Decision Highlights the Expansion of Consumer Privacy Litigation [Cyber & Technology Alert]

    March 26, 2013

    Last week, in Tyler v. Michaels Stores, Inc., the Supreme Judicial Court of Massachusetts responded to certified questions presented by the district court and interpreted a Massachusetts statute to reflect the state’s interest in protecting consumer privacy. No. SJC-11145, 2013 Mass. LEXIS 40 (Mass. Mar. 11, 2013). In particular, the court held that a consumer’s zip code constitutes personal identification information, and that a consumer can bring an action under the relevant statute absent a claim of identify fraud. MORE


    Utilities Sector To Be a Focus of Executive Order Directing Development of Critical Infrastructure Cybersecurity Framework [Energy, Environmental and Utilities Alert]

    February 20, 2013

    Little more than a week after reports of cyber attacks targeted atthe Department of Energy, The New York Times and The Wall Street Journal, President Obama declared in his State of the Union address that these forms of attacks on the nation’s critical infrastructure are rapidly growing and present “real threats to our security and our economy.” MORE


    Executive Risks: A Boardroom Guide 2012-13 [Willis Limited]

    September 01, 2012

    Executive Risks: A Boardroom Guide 2012-13 - Willis Limited - Published by White Page Ltd in association with Willis Limited, 'Executive Risks: A Boardroom Guide 2012-13' brings together contributions from leading legal practitioners in 18 jurisdictions worldwide, as well as special focus chapters dealing with specific issues of interest to directors and officers in the US and internationally. MORE


    Hulu Subscribers Have Standing Under Video Privacy Protection Act [Global Insurance Alert]

    August 21, 2012

    Hulu Subscribers Have Standing Under Video Privacy Protection Act - Global Insurance Alert - The Northern District of California recently held that a proposed class action has sufficiently stated a claim under the Video Privacy Protection Act (VPPA), 18 U.S.C. § 2710(b)(1), against defendant Hulu. MORE


    First Circuit Court of Appeals Holds Bank’s Online Security Measures “Commercially Unreasonable” in Landmark Decision [Global Insurance Group Alert]

    July 20, 2012

    First Circuit Court of Appeals Holds Bank’s Online Security Measures “Commercially Unreasonable” in Landmark Decision - Global Insurance Group Alert - In a landmark decision, the 1st Circuit Court of Appeals held in Patco Construction Company, Inc. v. People's United Bank, No. 11-2031 (1st Cir. July 3, 2012) that People's United Bank (d/b/a Ocean Bank) was required to reimburse its customer, PATCO Construction Co., for approximately $580,000 that had been stolen from PATCO's bank account... MORE


    Cyber Liability Insurance: The Value of an Educated Broker in the Age of E-Commerce

    December 01, 2011

    Recent media reports of cyber intrusions, data thefts and computer system malfunctions involving large, high-profile companies such as Sony PlayStation, Citigroup and Lockheed’s Security Vendor, RSA, have led a rapidly growing number of companies to consider the necessity of insurance coverage for technology and cyber privacy risks. MORE


    Professional Liability: And Now, the “Maine” Event: Mitigation Costs Constitute Damages in Data-Breach Case [Insurance Coverage Alert!]

    November 04, 2011

    Professional Liability: And Now, the “Maine” Event: Mitigation Costs Constitute Damages in Data-Breach Case - Insurance Coverage Alert! - Businesses that require their customers to disclose credit card and personal information beware. On October 20th, the U.S. Court of Appeals for the 1st Circuit held that claims by class action plaintiffs for “mitigation damages” arising from alleged negligence and breach of contract are viable under Maine law. Anderson v. Hannaford Brothers Co., Nos. 10–2384, 10–2450, 2011 U.S. App. LEXIS 21239 (1st Cir. Oct. 20, 2011). MORE


    Understanding Your Cyber-Risk Policy [National Underwriter]

    September 01, 2011

    Increasing reports of cyber intrusions, data theft and computer-system malfunctions have led a rapidly growing number of companies to purchase insurance coverage to protect themselves from technology and cyber-privacy risks. As our technology-driven economy continues to evolve and businesses become more reliant on electronic communication and data storage, they are developing a heightened awareness that an unauthorized intrusion could endanger their tangible and intangible assets (including intellectual property) and, in many cases, their reputation and ability to conduct business. MORE


    The Dos and Don'ts of Navigating the Cloud: a Business Guide for Cloud Computing [Corporate Counsel]

    December 21, 2010

    The Dos and Don'ts of Navigating the Cloud: a Business Guide for Cloud Computing - Corporate Counsel - MORE


    Cyber - Identity Theft: Our Children At Risk [Insurance Coverage Alert!]

    August 24, 2010

    Cyber - Identity Theft: Our Children At Risk - Insurance Coverage Alert! - Interviewing for your first job as a teenager is as exciting as it is intimidating. The interview proceeds flawlessly, and you start to count the dollar signs as you await the job offer. But, imagine your surprise when you are informed that you did not get the job because your background check revealed that you are more than $75,000 in debt and five years behind in child support payments for your 11-year-old child—a terrifying thought considering you are only 16 years old. MORE


    Concurrent CGL and E&O Coverage for “Spyware"? Yes, Says the Eighth Circuit [Insurance Coverage Alert!]

    August 12, 2010

    Concurrent CGL and E&O Coverage for “Spyware"? Yes, Says the Eighth Circuit - Insurance Coverage Alert! - Eyeblaster, Inc. v. Federal Ins. Co., 2010 U.S. App. LEXIS 15152, No. Civ. A. 08-3640 (8th Cir. July 23, 2010), finding concurrent coverage under both a General Liability (“CGL”) insurance policy and a separate Information and Network Technology Errors and Omissions Liability (“E&O”) policy in circumstances where an online marketing company installed software on a consumer’s computer system, allegedly corrupting the computer’s software operating system.

    MORE

    Events & Seminars

    HB Litigation Conferences NetDiligence® Cyber Risk & Privacy Liability Forum Philadelphia, PA 06/06/2013
    Cybersecurity: Protecting Sensitive Information New York, NY 05/08/2013
    Cozen O'Connor's 2013 New York Litigation Seminar New York, NY 02/12/2013
    PACT Industry Series Event Cybersecurity: Protecting Sensitive Information West Conshohocken, PA 01/30/2013
    How DID Network Security and Privacy Issues Become a D&O Exposure? Chicago, IL 11/09/2012
    LEA: 2012 Loss Executives Annual Meeting Tampa, FL 01/19/2012
    15th Annual Insurance Institute Philadelphia, PA 04/07/2011

    Press Releases


    Cozen O’Connor Records Most Trademark Filings In Pennsylvania and Philadelphia For 2010

    February 25, 2011

    Cozen O’Connor Records Most Trademark Filings In Pennsylvania and Philadelphia For 2010 MORE


    Cozen O’Connor Member Paul K. Leary Jr. Named Member Of IADC

    July 17, 2008

    Cozen O’Connor Member Paul K. Leary Jr. Named Member Of IADC MORE

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