Articles Posted in July, 2014

Two federal appeals courts this week issued conflicting opinions on Obamacare.

King v. Burwell, US 4th Cir. (7/22/14)
Health Law, Tax Law

Plaintiffs filed suit challenging the validity of an IRS final rule implementing the premium tax credit provision of the Patient Protection and Affordable Care Act (ACA), 26 U.S.C. 36B. The final rule interprets the Act as authorizing the IRS to grant tax credits to individuals who purchase health insurance on both state-run insurance “Exchanges” and federally-facilitated “Exchanges” created and operated by HHS. The court found that the applicable statutory language is ambiguous and subject to multiple interpretations. Applying deference to the IRS’s determination, the court upheld the rule as a permissible exercise of the agency’s discretion. Accordingly, the court affirmed the judgment of the district court.

Halbig v. Burwell, US DC Cir. (7/22/14)
Health Law, Tax Law

Appellants challenged the IRS’s interpretation of 26 U.S.C. 36B, enacted as part of the Patient Protection and Affordable Care Act, under the Administrative Procedure Act (APA), 5 U.S.C. 706(2)(A). The district court held that the ACA’s text, structure, purpose, and legislative history make “clear that Congress intended to make premium tax credits available on both state-run and federally-facilitated Exchanges.” The district court held that even if the ACA were ambiguous, the IRS’s regulation would represent a permissible construction entitled to Chevron deference. The court concluded, however, that the ACA unambiguously restricts the section 36B subsidy to insurance purchased on Exchanges “established by the State.” Accordingly, the court reversed the judgment of the district court and vacated the IRS’s regulation.

Read More: Second federal appeals court rules on health-care law, setting up a same-day circuit conflict

This week, a federal judge in the U.S. District Court for the Central District of California issued a ruling that California’s death penalty is unconstitutional.  Read Courtney Minick’s analysis of the opinion on Justia’s Verdict: Federal Judge Strikes Down California Death Penalty: What This Could Mean for California.

Texas Div., Sons of Confederate Veterans, Inc. v. Vandergriff, et al., US 5th Cir. (7/14/14)
Civil Rights, Constitutional Law

Plaintiff filed suit alleging that the Board violated its First Amendment right to free speech when it denied plaintiff’s application for a specialty license plate featuring the Confederate battle flag. The district court concluded that the Board had made a reasonable, content-based regulation of private speech. The court concluded that speech on specialty license plates is private speech and that the Board impermissibly discriminated against plaintiff’s viewpoint when it denied the specialty license plate. Accordingly, the court reversed the judgment of the district court and remanded.

Read More: Court rules Texas can’t ban sale of Confederate flag license plates

Digitech Image Techs., LLC v. Elecs. for Imaging, Inc., US Federal Circuit (7/11/14)
Patents

Digital image processing involves electronically capturing an image of a scene with a “source device,” such as a digital camera, altering the image in a desired fashion, and transferring the altered image to an “output device,” such as a color printer. According to the 414 patent, all imaging devices impose some level of distortion on color and spatial properties because different devices allow for slightly different ranges of colors and spatial information to be displayed or reproduced. Prior art attempted to correct distortions using device-dependent solutions that calibrate and modify the color and spatial properties of the devices and device independent solutions that translate an image’s pixel data from a device dependent format into an independent color space, which can then be translated to output devices at a reduced level of distortion. The patent expands the device independent paradigm to disclose an improved device profile that includes both chromatic characteristic information and spatial characteristic information. Digitech filed infringement suits against 32 defendants. The district court found that all of the asserted claims were subject matter ineligible and invalid under 35 U.S.C. 101: the device profile claims are directed to a collection of numerical data that lacks a physical component or physical manifestation and the asserted method claims for generating a device profile encompass the abstract idea of organizing data through mathematical correlations. The Federal Circuit affirmed.

Read More: Latest CAFC Ruling Suggests A Whole Lot Of Software Patents Are Likely Invalid

Last month, the Court of Justice of the European Union issued a preliminary ruling on the right of natural persons to privacy with respect to the processing of personal data. In the case, Mr. Costeja González, a Spanish national, had lodged a complaint with the Agencia Española de Protección de Datos (AEPD), the Spanish Data Protection Agency, concerning a then 12-year-old announcement in La Vanguardia Ediciones SL, a Spanish newspaper, that mentioned a real-estate auction connected with attachment proceedings for the recovery of Mr. González’s social security debts. Mr. González wanted his personal data in the announcement removed from the La Vanguardia website. In addition, he wanted Google Inc. or Google Spain to remove the La Vanguardia web pages from its search results.

The AEPD rejected the complaint against La Vanguardia because the Ministry of Labour and Social Affairs had ordered the announcement to promote the auction and secure as many bidders as possible. However, the AEPD upheld the complaint against Google Spain and Google Inc. The Google companies then brought separate actions before the Audiencia Nacional (National High Court), which stayed the proceedings and referred several questions regarding Directive 95/46 to the Court of Justice of the European Union.

In upholding the right of data subjects to have certain search results associated with their names removed from search engines, the Court of Justice stated that search engines may initially be able to process accurate personal data regarding a person. However, over time, this right may conflict with the Directive if such results are “inadequate, irrelevant or no longer relevant, or excessive in relation to those purposes and in the light of the time that has elapsed.” Accordingly, the right of privacy should be balanced against the economic interest of the search engine operator as well as the “interest of the general public in finding that information.”