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Friday, January 11, 2013


Refusal to hear Leader v. Facebook tells inventors not to bother filing patents and sharing their inventions with the world

Contributing Authors | AMERICANS FOR INNOVATION | Updated Jan. 24, 2013 | PDF

Update: (Jan. 24, 2013)Did regulatory breakdown at the SEC contribute to the corruption of the federal courts in Leader v. Facebook?

Some readers are asking what role regulatory breakdown at the U.S. Securities & Exchange Commission may have played in the corruption of the courts in Leader v. Facebook. It’s an important question. Here’s why.

A roughly $3 billion “pre-IPO supplement” led to a Moscow, Russia company, Digital Sky and Yuri Milner, quietly acquiring (no questions asked) more than a 20% (est.) stake in Facebook before the IPO. If the SEC had properly investigated these transactions, and followed the law, it is highly unlikely that the IPO would have been allowed to proceed.

Facebook had obliterated the 500 shareholder rule for private companies. Also yet to be investigated is the possibility that U.S. taxpayer TARP bailout billions were used (via foreign bank accounts laundering the funds sent to them by Facebook's underwriters) to acquire these massive amounts of shares with cash.

Such activity is not unknown to Milner. Conspicuously absent from his current biographies is the fact that Milner worked for the CEO of the Russian Bank Menatep that was caught diverting $4.8 billion in IMF funds, as well as laundering $10 billion for the Russian mob. The money laundering also involved World Bank funds according to reports. Facebook's COO Sheryl Sandberg and Milner worked for Lawrence Summers, President Obama's bailout director, at the World Bank in the early 1990's. Summers helped architect the failed Russian voucher system that spawned the current system of Russian oligarchs. Sandberg and Milner helped him. Is this all mere coincidence?

Without a Facebook IPO, the Federal Circuit Judges Alan D. Lourie and Kimberly A. Moore would not have had the motivation to turn a blind eye to the U.S. Constitution in order to protect their undisclosed Facebook stock holdings. Even so, they were required by their Code of Conduct to disclose and disqualify. They did neither.

Since it appears that the federal courts and the press are in the wrongdoer's pockets (Judiciary and "Free" Press), we need to call upon Congress (Legislative) and the White House (Executive) to begin inquiries. If all four of our "check and balance" institutions are corrupted, we're as they say, "screwed" as a democracy.

Update: (Jan. 21, 2013)—"Judging Judges - Democracy demands ethical judicial conduct" blog features the conduct of the Federal Circuit in Leader v. Facebook. Click here go to the site. This site highlights the alleged misconduct of Judges Alan D. Lourie, Kimberly A. Moore, Evan J. Wallach and Randall R. Rader, as well as the alleged misconduct of their super-clerk Jan Horbaly.

Facebook robber barons bought the courts? corruption, facebook, industrial age, criminality, robber baron, leader v facebook, cooley godward llp, jan horbaly, alan d lourie, kimberly a moore, evan j wallach, randall r rader, federal circuit bar association, judicial misconduct, thomas g hungar, gibson dunn llp, tech age, white and case llp, michael rhodes, heidi keefe, mark weinstein, samuel o'rourke, theodore ullyot
Facebook is the new tech robber baron

Update: (Jan. 16, 2013)—Yesterday a grassroots citizen's group named Concerned Americans United (CAU) called upon Congress to consider impeachment proceedings against the Federal Circuit judges and clerk in Leader v. Facebook.

Leader Technologies has bi-partisan support —from eminent American historian Professor Hy Berman, former political adviser to Vice President Hubert Humphrey to the Arizona Tea Party. Staffers for the House Committee on Government Reform have been receiving briefings, so this new request will not come as a surprise. In addition, various sites are posting the CAU flyers, click here to download the PDF.

Lawfare's 10 Steps To Corrupt The Federal Circuit

This Leader v. Facebook judicial misconduct debacle is exposing the "lawfare" tactics of Facebook's well-connected handlers.

Facebook's 10-step lawfare tactics go something like this, in our opinion:
  1. ingratiate oneself in The Federal Circuit Bar Association "old boy" club—the nation's second largest bar association;
  2. sell your pre-IPO stock to the Federal Circuit judges through one of your insider funds (in this case T.Rowe Price and Fidelity Contrafund, among others) so that the judge can use the "Gee Beav, I didn't know" excuse, if caught;
  3. rape, pillage and plunder new inventions and make big money, quickly;
  4. manipulate stock markets and regulators using unscrupulous law firms and their hired-liar "experts;"
  5. clog the courts with interminable "motion practice;"
  6. bully opponents with lies and bogus counter-suits (further clogging the courts);
  7. influence judges to approve last minute new claims under the smoke screen of "judicial discretion;"
  8. fabricate evidence that corrupt jurors and judges use to dish up your desired verdict;
  9. on appeal, actually write the opinion for the Federal Circuit appeal judges yourself (wink wink); and
  10. from there on out, simply deny, deny, deny all further protestations of injustice.
Voilà! There you have the ugly face of judicial corruption in America. (And we have the audacity to tell "lesser" countries not to do this?) This experience shows that judicial corruption need only be a subtle nod here, or there, in order to accomplish the desired result. As Facebook's current attorney (and Leader Technologies former attorney) Fenwick & West LLP's Gordon Davidson told the entrepreneurship class at Stanford University, "creativity" is figuring out what you want, then working backwards to achieve it. Too bad this approach appears to require breaches of ethics and laws—mere speed bumps to the unscrupulous?


(Jan. 11, 2013)—The Supreme Court’s acquiescence to the Facebook cabal by their refusal to hear the Leader v. Facebook appeal on Monday sent shock waves across the innovation world. The message to inventors is not to bother with the time and expense of filing for patents—because that work will simply evaporate in a federal court system corrupted by deep-pocket tech robber barons.

The decision gave the Court's blessing to the Facebook robber barons. Leader proved that Facebook stole their invention on 11 of 11 counts. Instead of paying Leader a suitable royalty, Facebook has paid off the courts to sustain an ill-gotten, tricky judgment made not by laws and facts, but by manipulation of judges, in our opinion. The manipulation seems evident in the court’s decisions which invalidated all of Facebook’s evidence, where the Court concocted new evidence in violation of Leader's constitutional rights to due process (Fifth and 14th Amendments), where the court ignored unequivocal new evidence that Mark Zuckerberg withheld 28 hard drives of discovery information from Leader, and where judges held undisclosed stock in Facebook during the proceedings.

"Behind the hoodies and flip-flops lurk businesspeople as rapacious as the black-suited and top-hatted industrialists of the late-19th century"
"The Ruthless Overlords of Silicon Valley"
March 12, 2012
Property Theft by Courts

Communist Hammer & SickleHistory teaches us that the ultimate robber barons are States that confiscate personal property, like the Soviet Union did after the Bolshevik Revolution. The Bolshevik courts did the bidding of their paymasters also. The Supreme Court's conduct in Leader v. Facebook is every bit as egregious. It is as if they gave blessing to a thief driving your car away, or rifling your wallet.

Logic says that it is not possible to rule in a party’s favor (Facebook) after all their evidence has been debunked . . . unless that party is paying off or otherwise influencing the judges. Judicial influence corrupts a democracy to its core.

Like the robber barons of the Industrial Age, these new tech robber barons have stolen the underlying resources needed to run their system; used the ill-gotten gains to quash competition; bought politicians, government officials, judges and clerks; impoverished investors by selling stock at inflated prices; and, propped up the stock price with foreign trades using laundered monies, likely including TARP funds via banks who were bailed out by the American taxpayer in 2008, in our opinion.

The New Tech Robber Baron
Facebook, the new tech robber barons
Totalitarian Tool: Property Theft

Abuse of the public trust on a massive scale is not new. The late 1800’s saw similar exploitative practices to amass wealth. The term “robber baron” combines the sense of criminal (“robber”) and illegitimate aristrocray (“baron”). Wikipedia. What is new with these tech robber barons is the ability of the technologies they've co-opted to corrupt whole governments and countries, to seize personal data, and to institute an unregulated monetary system.

Must history repeat itself?

Are we destined to wait until the raping and pillaging damage is all over before we act to stop it? The U.S. Supreme Court and the federal court system evidently do not care about intellectual property and patents. That can now be said with certainty. They supported a Leader v. Facebook decision that had no basis in evidence or law.

The Soviet Union failed. However, a Soviet asymmetric warfare tactic called "lawfare" is being used by Facebook and its Moscow allies against the U.S. federal courts and financial systems. The U.S. Supreme Court just fell victim to lawfare in Leader v. Facebook, we believe.
They don't care, but do you? If so, what are you (and we) going to do about it?

The robber barons have convinced a billion people on the planet to become addicted to their formulation of the “social networking” drug. How do we help these addicts and wrestle control of this technology from the criminals?

The robber barons probably think “the masses” will soon come to accept their thefts as “the new normal.”* Let’s prove that assumption fatal.

* * *

* The "new normal" proposition is a favorite tool of stock manipulators to try and convince the mass market that their value proposition should replace the previously accepted one. For example, the public was asked to accept the "dotcom" bubble as "the new normal" for tech valuations. History tells us this proposition was a devious smoke screen to enable crooked telecom and Silicon Valley CEOs to cash in their options before the valuation bubble burst. Some of those executives are in jail today, like Bernie Ebbers (MCI) and Joe Nacchio (Qwest). Others have gotten away with their crimes, including some of the "venture capitalists" dictating Facebook's conduct. This "pump-and-dump" strategy is being repeated by the Facebook cronies, both in the USA and the former Soviet Union where Facebook appears to be moving much of its core "Facebook Credits" R&D.


  1. Comment by: Stop the bleeding

    If one of my construction supervisors is caught taking a bribe from a subcontractor to cut corners, I fire him on the spot.

    Likewise, we MUST hold our judges accountable.

    Impeachment is our only tool, so let's get on with the nut cuttin' as they say in my neck of the woods. It's high time.

  2. Comment by: An Inventor

    I will NOT be filing any new patents until this situation is fixed by Congress. (I was waiting to see if the Supreme Court would do the right thing, but sadly this fish is rotting from the head.) Just in the last two or three years the Patent Office Examiners have started doing very strange and illogical things to stall my applications while the infringers of my earlier patents are making hay with my existing inventions. Some of those infringers are associated with Facebook's law firms, specifically Cooley Godward, White & Case, Gibson Dunn and Fenwick & West. Fenwick used to be an honorable firm when Bill Fenwick ran it. Shame.

  3. Comment by: binky boo

    Congress can't its own house in order. Half the California delegation is already in Facebook's pocket. Out here donations flow like water in the streets. Invention in America is screwed. Here's my solution: I think inventors should STOP PAYING LAWYERS to file for patents until they get their professional house in order. That'll get their attention. Hit them where it hurts... in their bank accounts. Oh wait, they'll just extort it. What was I thinking? ;-)

  4. Comment by: Chris

    Yeh, did you notice how there's "nothing new" at the Las Vegas Consumer Electronics Show this year??? These robber barons are depressing innovation in the whole industry by their greed and power-mongering. This CES was the most boring show I have ever attended. There is a reason for patent protection. Without it, innovation stops. There is no "new normal" about it. That's all spin.

  5. Comment by: first timer

    I follow your blog but this is my first post. We see symptoms of the "too many lawyers" problem everywhere. Fiscal cliffs. Bought judges. Lying and cheating without thought to justice or truth. Maybe that is good lawyering (NOT), but it is certainly no way to run a country. Boot their butts out I say... and before these bad boys pull our whole country down.

  6. Comment by: Riff-Raff

    Seems that the justice system has chosen to go to the dark side just like the SEC has. They're all lining their pockets with juicy off-shore bonuses??? The SEC "missed" Madoff, the 2008 meltdown, etc. Since nobody has gone to jail, stands to reason our federal judges think they are immune from us riff-raff called ... American citizens. Let's see if they escape our wrath now. This is an offensive decision.

  7. Comment by: Lawless Hunter

    "Lawless America...The Movie - Los Angeles Filming - January 15, 2013 - Please come expose corruption."

    "I will be in Los Angeles meeting with film and television folks on January 14 and 15. On the 15th, Lawless America...The Movie will continue its filming of victims of government and judicial corruption.

    I only have time to film a few people between meetings. Filming is being done at a secret location near LAX for security reasons, so you must email to request to be filmed.

    It's the Lawless America Revolution."

  8. Comment by: binky

    I contacted "Lawless" and a number of other judicial corruption fighters and some media who have not drunk the Kool-Aid. We need to start networking them all together on this case. Let's uncover this fraud.

  9. Comment by: American Citizens United

    We have organized a grassroots movement we've named CONCERNED AMERICANS UNITED. Our first flyers are now posted on DocStoc:

    "If impeachment is a citizen's only recourse to correct judicial misconduct, then that is what we must do." Join us.


    Ours is a grassroots movement. We invite every American alarmed by the lawlessness of the federal judges in the Leader v. Facebook case to ask your Congresspersons to investigate and bring justice to this outright theft of property at the hands of the federal courts and their Facebook collaborators.

    The U.S. House of Representative solely governs impeachment. If they investigate and vote for impeachment, then the U.S. Senate conducts the trial.

    Experience shows that it takes multiple requests to our elected representatives in order to get their attention and get them to act. Persistence is the key.

    Here's another location for the flyers:

    Not surprisingly, the attorneys helping us in this effort are "laying low" for fear of retribution from the judicial community. EDITORIAL COMMENT: It is a sad state of affairs when those in whom we entrust the adjudication of justice are themselves perpetrators of the injustice. That's why we citizens must ACT before these people drag America into the abyss.

  11. Comment by: From Россия (Russia) With Love

    In my country before communism fall, UNRIGHTEOUS JUDGES all we know. Save yourself America. Not to late.

    My friend write to California newspaper about rise of Russian Mafia in Silicon Valley: "You do not want to go where we have been. It is brutal and ugly and a place of darkness. The easy money is not worth the price of admission - - - which is the sacrifice of your soul."

  12. Comment by: Dragon slayer

    The coat of arms for the "New Russia" includes the icon of St. George slaying the dragon (evil). Sounds like America herself needs to slay a few dragons that are destroying its "justice" system.

  13. Comment by: Summers Boy

    Remember the kingpin behind the current Russian "oligarch" system? None other than Pres. Obama's bailout chief LAWRENCE SUMMERS. This Congressional Briefing is enlightening reading:

    Facebook's COO Sheryl Sandberg and Facebook second largest investor, Moscow-based Juri Milner, are both proteges of Summers from his World Bank days in the early 1980's. In my opinion, Facebook has been one financial scam from inception... and who was President of Harvard during the infamous ZUCKERBERG hacking on October 28, 2003? LAWRENCE SUMMERS. He keeps popping up in all the right places in this story!

    What three banks were bailed out with American taxpayer funds tot he tune of some $30 billion? Goldman Sachs, Morgan Stanley and State Street Corp. What banks took Facebook public and fed in all the Russian investors BEFORE the bailout and IPO? GOLDMAN SACHS AND MORGAN STANLEY.

    Who is one of Milners's largest stockholders in Moscow? GOLDMAN SACHS. No wonder Facebook's stock price keeps going up. The overseas slush fund was topped up many years ago... by the American taxpayer IMHO.

  14. Comment by: Anon.

    I'm finding it hard to believe these judges knew all this about the Facebook "cabal" . But then again, I supposed they didn't have to. All they needed to know was that their stock investments went up and the checks cleared. That in itself is impeachable seems to me. We depend upon blind justice. Is all our belief in justice just a fantasy? I like the practical suggestion to put non-lawyers in the majority in overseeing attorney ethical discipline.

  15. Comment by: Honey Bo Bo

    C'mon, let's not be naive. Reading through their public financial disclosures, these judges are sophisticated investors. For exsmple, Judge Lourie's TRowePrice fund owned more than 5% of Facebook's stock. They knew they were lining their pockets. Lourie was the presiding judge in this case for God's sake. Can anyone spell c-o-r-r-u-p-t-i-o-n?

  16. Here is the "motherlode" of media contacts for all who want to write and express outrage over the now exposed Judicial corruption...

  17. Thoughts on Freedom

    Posted on November 11, 2011• by FreedomRedux Posted in FreedomRedux Blog•

    Since the founding of the United States and the signing of the Declaration of Independence, our nation’s liberty has been under assault. From the passage of the Alien and Sedition Acts in 1798, to Lincoln’s suspension of habeus corpus, to The Patient Protection and Affordable Care Act (aka ObamaCare), our liberty has been threatened, not from a foreign power, but from within. From the John Adams administration through the Barack Obama administration, our liberty has been under assault by the very people who have sworn an oath to protect our freedom.

    Freedom and liberty are not bestowed upon us by a benevolent government; our freedom comes from our humanity. In a natural state, man and woman are completely free. The United States Constitution was written with that philosophy. Notice that the First Amendment to the Constitution does not give you the right to freedom of speech; the First Amendment states “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.” In other words, the government can’t take away your preexisting freedom of speech.

    There are times when things may seem hopeless, and a person may feel it is no use to fight against the injustices of big government. But have hope. Stand up for what you believe in. Do what you can to stop the expansion of government, the assault on liberty, and return us to the principals that made this nation great.

  18. Comment by: firstimer

    The theft of Leader's patent has got to be one of the biggest scams in history. History tells us that "power corrupts." We are watching that in living color. History also teaches us that "pride comes before the fall." Corrupt people often achieve their goals for a time, but in the end, justice is the great equalizer. I am just waiting for one of this bunch to get religion and spill the beans. They take none of their filthy lucre to the grave. They can only take their integrity... or lack of it. This is disgusting and shameful. I encourage Leader's supporters to keep up the pressure and keep the high ground. Many are taking notes and gathering evidence.


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