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Patent Lawsuit Haunts Senate Candidate

Patent Lawsuit Haunts Senate Candidate

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Published by Steven Aldrin
The great Web site Plaza de Armas covers China's favorite Tea Party candidate: Ted Cruz of Texas.
The great Web site Plaza de Armas covers China's favorite Tea Party candidate: Ted Cruz of Texas.

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Published by: Steven Aldrin on Sep 30, 2011
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Patent lawsuit haunts Senate candidate

Wednesday, 28 September 2011 23:58 By Gilbert Garcia

Many politicians are lawyers by trade, but politicians and lawyers operate under a sharply different set of standards. For example, in the legal world, where every defendant is deserving of representation, taking the case of a suspected domestic terrorist is just doing your job. In the political world, however, where every public word you’ve ever uttered is ruthlessly dissected for potential talking points, photo ops with Timothy McVeigh don’t play so well on election day. Since leaving the office of Texas solicitor general in 2008, Ted Cruz has been following the code of the legal world, as a successful appellate lawyer with the prominent Houston firm of Morgan, Lewis & Bockius LLP. These days, as a candidate for the U.S. Senate seat being vacated by Kay Bailey Hutchison, he is also emerging as the golden boy of Texas Republican politics. Slick and highly articulate, Cruz has the kind of “God Bless the U.S.A.” bio that most politicians need professional fiction writers to manufacture: Dad escapes political torture in Cuba, lands in Austin with $100 sewn in his underwear, works his way through the University of Texas by washing dishes for 50 cents an hour, and inspires his son to make it to Harvard Law School. Cruz has stirred an all-out man-crush in veteran columnist George Will, earned the endorsements of a host of GOP-friendly organizations (including the Hispanic Republicans of Texas), and can claim Ronald Reagan’s old pal, Ed Meese, as his national campaign chairman. But Cruz’s decision to represent a Chinese conglomerate in a high-stakes patent piracy case could cause him some political headaches over the next year. The case centers around Jordan Fishman, 73, a Sarasota, Florida, businessman who has spent half a century designing and producing underground mining tires. In the late '90s, Fishman created a new kind of tire that contains a three-inch layer of rubber on the outside, enabling it to withstand the punishment that comes from working in confined spaces. By this point, Fishman’s business had much of its manufacturing work done in China and Dubai, because large American companies had stopped making mining tires. In 2003, Fishman took Sam Vance, his sales and marketing manager, to China and introduced him to the factory that made the mining tires for Fishman’s company. According to Fishman, that’s when things turned shady.

"Ultimately, Sam decided that he could go and do this himself, so he went to the factory that we had a contract with in China, trying to get them to manufacture the same product for him, and cut us out of the mix. I found out about it and fired him," Fishman says. "About two weeks later, he was in contact with the people in Dubai and ultimately China, and turned over the blueprints to them. They copied the blueprints, which you can’t do. You can go and buy a product and retro-design it, but you can’t copy a blueprint." Fishman filed suit against Shandong Linglong, the Chinese conglomerate, and last year, after a six-day U.S. District Court trial in Alexandria, Virginia, a jury awarded him $26 million in damages. (Fishman also sued Dubai company owner Surender Kandhari, but Kandhari was dismissed from the case by U.S. District Judge T.S. Ellis III.) Last November, Cruz, acting as the attorney for Shandong Linglong, filed an appeal in the U.S. Court of Appeals for the Fourth Circuit, and the case is still pending. As far as Fishman is concerned, Shandong Linglong stole his family business out from under him and is trying to drag out the legal process until he either runs out of money or dies. From Cruz’s perspective, the legal battle may the stuff of standard business disputes. While Cruz declined to talk about the case with Plaza de Armas, a campaign representative dismissed it as "a typical appellate case between two private parties." In purely legal terms, it’s hard to argue with that assessment. In political terms, however, the idea of a Tea Party darling representing an alleged patent thief against a geriatric American entrepreneur, at a time when the U.S. economy is in shambles and China is the largest international holder of American debt, has the whiff of trouble about it. There is a growing perception in this country that China’s 21st-century economic boom has been bolstered by patent piracy. Only four months ago, the U.S. International Trade Commission released a report contending that Chinese intellectual property theft cost American businesses $48 billion in 2009. A week ago, Treasury Secretary Timothy Geithner grumbled that "[the Chinese] have made possible systematic stealing of intellectual property of American companies and have not been very aggressive to put in place the basic protections for property rights that every serious economy needs over time." Cruz finds himself in the middle of a tough GOP primary field that includes Lt. Gov. David Dewhurst, San Antonio-based Railroad Commissioner Elizabeth Ames Jones, and former Dallas Mayor Tom Leppert. He’s attempted to position himself as the true conservative in the race, someone who will fight to bring fiscal restraint to Washington and help American businesses flourish. While his work for Shandong Linglong has not yet become a factor in the race, it’s unlikely to escape the attention of his opponents. Already, Mac McDowell, host of the local conservative radio show "The Boiling Point," has devoted a segment to the case, and an obsessive Fort Worth Tea Party activist named Steven Aldrin has flooded countless websites with attacks on Cruz, whom Aldrin has dubbed “the Manchurian Candidate.”

A staffer for one of Cruz’s competitors predicts that the patent case will become a topic of discussion in the Senate campaign. "I’ve heard Ted himself on numerous occasions quote the Bible verse, 'Ye shall know them by the company they keep,'" the campaign staffer says. "If he keeps company with Chinese patent thieves over hard-working American entrepreneurs, I would expect him to be held accountable for that. With both the Tea Party voters and mainstream Republican voters, I don’t see how it’ll sit well with them." HIGH  QUALITY  JOURNALISM:   http://www.plazadearmastx.com/index.php/politics/100-­‐columns/1475-­‐cruz-­‐ control-­‐in-­‐senate-­‐race  

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