Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.law From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: law Tue, May 5 1992 Date: Tue, 5 May 92 05:31:47 EDT Message-ID: 05-05 0000 DECISIONLINE: Business Law USA TODAY Update May 5, 1992 Source: USA TODAY:Gannett National Information Network EVIDENCE CAN BE WITHHELD: The Supreme Court ruled Monday in a case involving a businessman suspected of bank fraud that federal prosecutors who have evidence of a suspect's innocence do not have to present those facts to a grand jury considering whether to indict the person. Justice Antonin Scalia said grand juries usually hear only the prosecutor's side and there is no obligation to present favorable evidence. DEBATE CENTERS ON CABLE BILL: A House bill aimed at reregulating the cable TV industry has drawn criticism from the leading industry association. The House cable bill, similar to a measure already approved by the Senate, would regulate cable TV rates, set service standards and make the industry pay for local television signals and share programming with its competitors. (For more, see special Cable package below.) SUIT FILED OVER `BACKDRAFT': Several scenes in "Backdraft" looked familiar to two Buffalo firefighters who have filed suit alleging they were lifted from two scripts they wrote. Among the similarities, according to the suit: Fire department funeral scenes, a firehouse dog that's not a dalmatian. Michael Rosenberg of Image Films said, "It sounds like the typical `after the success' lawsuit." CHURCH SUES ELI LILLY, OTHERS: The Church of Scientology is targeting Eli Lilly, British ad giant WPP Group and its U.S. based public relations unit Hill & Knowlton in a new lawsuit. The church charges that Lilly pressured the public relations firm to drop the church as a client. Lilly, which has battled with the church before about it drug Prozac, says the suit is the church's way of intimidating its critics. SUIT NOT THE FIRST: The Church of Scientology, which filed a suit against several firms, including Eli Lilly, has filed several suits against its critics. Last February, the church filed a suit against Mitch Daniels, a Lilly executive, for defamatory remarks about Scientology. Last week, the church filed a $416 million libel complaint against Time magazine about an article on the church. GE, DE BEERS SUBJECTS OF SUIT: Kidder Concrete Cutting Co. of Plaistow, N.H., has filed suit against General Electric and De Beers Industrial Diamonds. The class action stems from allegations the two companies conspired to fix industrial diamond prices. Two weeks ago, the former head of GE's industrial diamonds division claimed in a lawsuit he was fired for trying to stop GE meetings with De Beers leaders. USE OF TRADEMARK PROHIBITED: The Federal District Court in Los Angeles Monday issued an order entering a stipulated permanent injunction resulting from an April 28, 1992, complaint by MGM-Pathe Communications Co. and its United Artists Corp. subsidiary. The injunction prohibits the use of United Artists trademark in any manner. PARSONS FILES NEW SUIT: A major shareholder of Jefferson-Pilot Corp. announced Monday a new lawsuit charging JP directors with breaching their fiduciary duties. Louise Price Parsons charges that the directors allowed CEO Roger Soles and JP's general counsel, Robert Koonts, to defraud the company by deceiving it into giving them and others 226,000 shares of JP stock worth more than $12 million. MCDADE EXPECTS INDICTMENT: Rep. Joseph McDade, R-Pa., said Monday the Justice Department is preparing to indict him on charges possibly tied to campaign contributions for a military contract in his district. McDade, a 15-term House veteran, is ranking Republican on the Appropriations Committee. NEW OWL PLANS PUSHED: In the issue of timber jobs vs. protection of spotted owls, the owls would be either significantly protected or allowed to die off in parts of the Northwest under new plans being pushed by members of Congress. Sen. Slade Gorton, R-Wash., backs a plan to allow the birds to become extinct on the Olympic Peninsula and Cascade Mountains north of Interstate 90. SPECIAL PACKAGE ON CABLE: MOONEY CRITICIZES CABLE BILL: Instead of bringing reduced rates, cable subscribers would pay an additional $10 billion over the next five years if current cable TV legislation passes Congress, James Mooney, president of the National Cable Television Association said Monday. Mooney said the bill would add $1 billion a year in new programming costs and force operators to spend another $5.7 billion for new equipment. CHARGES CALLED A `PLOY': Gene Kimmelman, legislative director for the Consumer Federation of America, disagreed Monday with claims by NCTA President James Mooney that a cable bill in Congress would end up costing consumers. Kimmelman called it a ploy to "shift attention from the billions ... consumers would really save if Congress passed legislation that mandates reasonable rates." BILL PASSAGE QUESTIONED: There is also disagreement over the potential of cable legislation passing this year. James Mooney said passage this year was "no longer a certainty" because of disagreements among lawmakers and President Bush's curb on new regulations. But Gene Kimmelman said he believes cable legislation would be approved because "it's a very popular issue with the public." Business Law Editor: Jason P. Smith. (919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. 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