Could Chinese patent case cause trouble for Cruz?
A commenter tipped me to this story that appears on a new San Antonio blog called Plaza de Armas. The bloggers are former investigative reporters for the San Antonio Express News and the Current. The gist of the story is that U.S. Senate candidate Ted Cruz, a well known attorney, is representing a Chinese conglomerate called Shandog Linglong in a major patent infringement case. I have copied the story from the Plaza de Armas blog.
The story appears in italics, below:
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 isruthlessly dissected for potential talking points, photo ops with Timothy McVeigh don’tplay so well on election day.
Since leaving the office of Texas solicitor general in 2008, Ted Cruz has been followingthe code of the legal world, as a successful appellate lawyer with the prominent Houstonfirm 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 mostpoliticians need professional fiction writers to manufacture: Dad escapes political torturein Cuba, lands in Austin with $100 sewn in his underwear, works his way through theUniversity 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 (includingthe 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 theoutside, enabling it to withstand the punishment that comes from working in confinedspaces. 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 andintroduced 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 productfor 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.
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 boomhas been bolstered by patent piracy. Only four months ago, the U.S. International Trade Commission released a report contending that Chinese intellectual property theft costAmerican 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 knowthem 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.”
* * * *
I think very highly of Mr. Cruz as an attorney, having heard him argue the Tom DeLay midcensus redistricting case in the U.S. Supreme Court. I don’t think attorneys ought to be pilloried for the clients they take on. But I agree with the analysis by Plaza de Armas that this is more than a business case; it’s a political case, one that could turn Cruz’s tea party support against him. It’s worth keeping an eye on.
Tagged: 2012 senate race, chinese patent lawsuit, patents, Ted Cruz
kevin whited says:
Plaza de Armas is a subscription online news site (not a blog), and you’ve just posted WAY more than what is available for non-subscribers on their site.
I’m not sure they would appreciate your giving away their subscriber material for free (did you get their permission?), but at the very least you should post a link to the article.
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Perry'pologist Reply:
October 3rd, 2011 at 6:24 am
Ted Cruz is the kindest, bravest, warmest, most wonderful human being I’ve ever known in my life.
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The Cruz Missile Reply:
October 5th, 2011 at 11:05 am
You forgot to mention Ted Cruz is also humble, selfless, loyal, and a modern day Saint Francis of Assisi when it comes to dealing with people others would consider “below” his station.
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Mollie says:
I taught English in China for a time back in the day, and whenever I went into a bookstore there was a part of the shop the clerk didn’t want foreigners to see, and that was where they sold copies of books they had ripped off from the West. All the stores sold books that had been copied without paying copyright to the author/publisher. China is an amazing culture, full of amazing people, but respect for copyright/trademarks/patents is probably not their strong suite.
Having said that, I don’t think it was ours, either. If I remember my history properly, during the times of America’s greatest growth, the late 1800s for example, we stole a lot of what is now called proprietary information, especially from Great Britain. Only later, when we had something to protect, did respect for patents become important.
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paulburka Reply:
October 5th, 2011 at 6:20 pm
Samuel Slater memorized the machinery of British textiles mills and then reproduced them in America.
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AHarkin says:
Not sure how one can call himself a conservative after taking money to defend a Chinese company in court. What was Cruz thinking when he took up this case, knowing he would be running for the Senate? Either the man is a fool, or just plain greedy.
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WUSRPH Reply:
October 3rd, 2011 at 5:21 pm
I used to think the same thing about all those “good Americans” who put American flag or “America, Love it or Leave it” bumper stickers or other “America is great” type signs on their BMWs and Toyotas. I guess they did not understand about how “good American jobs” were at stake.
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John Johnson says:
I was planning on voiting for Cruz, but, if allegations are true, will not do so. We do not need more whores in political office.
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Texian Politico says:
Representing a Chinese conglomerate called Shandog Linglong sounds a lot like Shamalama Ding Dong. Is this a story from The Onion?
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John Moore Reply:
October 3rd, 2011 at 5:06 pm
Ba ba ba boom! Good one Texian. The article was full of excellent names as if from a novel. We have a “Fishman,” and a “Surender,” even “Leppert” has connotations, not to mention “Plaza de Armas.”
Ting Tang, Walla Walla Bing Bang.
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Steve Aldrin says:
Ted Cruz is the kindest, bravest, warmest, most wonderful human being I’ve ever known in my life.
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Anonymous says:
Is Paul engaging in a bit of piracy by displaying the Plaza de Armas story in his blog? Plaza de Armas says on its website, “All materials contained on this site are protected by U.S. Copyright law and may not be reproduced, transmitted, displayed, published or broadcast without the prior written permission of Plaza de Armas LLC.” Did Paul obtain prior wtitten permission for posting a story that is behind a subscription paywall?Enlighten us, Paul.
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paulburka Reply:
October 5th, 2011 at 6:26 pm
The law pertaining to what is available on the Internet is not something I know a lot about. I did try to set up a one-month subscription but it it did not go through. Had I been successful, I’m not sure whether I would have had the right to repost it. It’s my impression that there are a lot of gray areas when it comes to what one can take from a web site. I don’t have those problems. Our web site is freely available.
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Steve Aldrin says:
I love how the Ted Cruz staffers are trying to force Mr. Burka to take this story down.
What are you afraid of, gang? There’s nothing false about this report – just true facts about your boss Ted Cruz being paid $500,000 by the Communist Chinese to kill an American business.
Ted Cruz pitched the Chinese for this business. He personally chose to be the lead lawyer for the Communist company already found guilty TWICE of stealing from an American entrepreneur.
Here’s the details of the case: http://www.meetjordanfishman.com
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Will the real Steve Aldrin please stand up says:
Is it the one who posted his unfailing love at 9:48 or the one attacking the commie lover at 10:34???
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Anonymous Reply:
October 5th, 2011 at 3:34 pm
You’re saying that a guy whose family was beaten and forced into exile during the Cuban revolution is a “commie lover?”
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Ralph says:
If the facts are true, this is absolutely damning for Ted Cruz. I like the guy, but this is disgraceful.
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paulburka Reply:
October 5th, 2011 at 6:28 pm
I don’t think the facts are damning. Like any other professional, Mr. Cruz is entitled to pursue his profession and represent his client.
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Steve Aldrin says:
@Willthereal…
Dude, your knowledge of classic film is lacking! My 9:48 was a famous direct quotation from Manchurian Candidate. (At least to my generation.)
I’m probably being too obtuse. It’s a 1962 film, but it was remade 2004.
Here’s the opening scene.
http://www.youtube.com/watch?v=LBDhoUZgsDo&feature=related
And my opinion on Ted Cruz? I will never vote for a pro-China Senator – especially one who has gotten rich off of killing American businesses.
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paulburka Reply:
October 5th, 2011 at 6:29 pm
I got the Manchurian candidate reference.
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Brad says:
It is RAMMA lamma ding dong. No Shamma to it.
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Dave says:
Trial lawyers gotta pay the bills somehow.
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Steve Aldrin says:
@Dave 1:11pm
I understand that lawyers say “everyone deserves representation” and some would work for al Qaeda under that truism. But not a man who wants to represent Texas in the US Senate – and make decisions about China policy after taking $500,000 from them a year before.
No, a US Senator must show better judgement and restraint.
As a senior partner in a high-powered law firm, Ted Cruz isn’t having any trouble paying his bills. He PITCHED this client. He CHOSE this case. He’s PAID by the Communists to kill an American business which has already proved his client 100% GUILTY two different times.
Here’s the FACT that emerges: Ted Cruz is pro-China. He cannot be our US Senator.
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Anonymous Reply:
October 5th, 2011 at 2:12 pm
Really now. One case makes him pro-China? So does that mean Dewhurst’s company making a bunch of money in China working for communists makes him one too?
That’s too silly. Dewhurst’s campaign should really hire adults to do their blogging so that you can have more reasonable lines of attack.
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Buck Turgidson says:
FUN FACT: Go research Cruz’s wife … and look into her ties to a small little banking outfit going by the name of Goldman Sachs.
Not exactly a normal Tea Party family dinner table over at the Cruz mansion.
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Anonymous Reply:
October 5th, 2011 at 2:08 pm
Buck, aren’t you the guy who was working for the oust-Craddick forces in 2008? You should not recycle your sock puppets from campaign to campaign, Mr. Rino plant.
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Drazen Petrovic says:
After his campaign promoted the hell out of the Laura Ingram show today on social media, and then he was shellacked by Ingram on pro-China policies, this story is even funnier.
Could be a hiccup or could be serious problem. Either way, not good for Mr. Cruz.
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Jason Johnson says:
I quit. Maybe Abbott will take me back…
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Julie says:
Lawyers are not the people they represent, but to avoid damage to his campaign, Cruz should withdraw as the attorney in this case. To do otherwise will give his opponents a good issue which they can use to club him out of the race.
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David says:
I agree. I like Ted Cruz a lot and I don’t want to see him run out. He’s got to drop this case – even I think it smells bad on him. This will kill him in the primary.
The Chinese are our new enemy, economically now and soon geopolitically. He can’t be working for them.
I’m disappointed.
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John from Houston says:
This is all pretty silly. He’s a lawyer defending a client. John Adams defended the redcoats involved in the Boston Massacre, and that didn’t make him a loyalist. Abraham Lincoln actually defended BOTH sides of the slavery issue.
The real question, considering the obviously planted nature of this story, is why is liberal icon Paul Burka shilling for David Dewhurst? Is he the only hope for Democrats, considering they don’t have a serious candidate of their own running for Senate?
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paulburka Reply:
October 5th, 2011 at 6:33 pm
Whoa! The story may have been planted with Plaza de Armas, but it wasn’t planted with me. As for Dewhurst, I have found him to be consistently disappointing and not a leader. But whether you like him or not, and I’ve tried to like him, without success, he’s going to be the next United States Senator from Texas.
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Greg Randolf Reply:
October 6th, 2011 at 5:13 pm
“He’s going to be the next United States Senator from Texas.” – Paul Burka 10/5/2011
Well gang, it’s official — David Dewhurst is going to lose the Senate race since Burka is calling it for him.
http://www.burntorangereport.com/upload/Burka%20Asleep.jpg
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J Jesse says:
Dewhurst is against the conservative Senate members on this one…Cruz is standing with them.
Club for Growth warns GOP against vote on China currency.
http://thehill.com/blogs/ballot-box/house-races/185803-club-for-growth-raises-the-stakes-on-china-currency-bill
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TKM says:
You’re a paid hack Aldrin. Dewhurst has nothing to stand on other than his big pile of money. The best y’all can do is attack Cruz over doing his job, because he has impeccable conservative credentials. Go spend more of Dew’s money, loser.
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Steve Aldrin says:
Sorry, TKM. You Cruz guys never answer the real questions. (Maybe because the Dewhurst folks seem too blind to see the line of inquiry?)
Why did Ted Cruz seek out and then represent the Chinese Communist government after they’ve been proven twice guilty of destroying a US business – and does this explain his pro-China tilt?
Here’s the fact: Ted Cruz PITCHED this business with the Communist Chinese government-owned company proved guilty twice for steal an American’s invention. TWICE. Cha-ching for Ted’s law firm, and for him since he’s a senior partner.
Ted Cruz CHOSE to litigate this client himself – not satisfied with just the bonus for leading the pitch, he wants the BIG money for litigating it. Cha ching, that’s an additional $500,000 right in his pocket.
He’s not just doing his job, TKM. He’s profiteering on the backs of an American, his company and his employees. By working for the Red Chinese-owned company, he made a CHOICE. He wasn’t assigned this client, he CHOSE this client.
Sorry, TKM. I’m not a paid hack. I’m a Texax Tea Party voter who is sick and tired of all the rich establishment politicians choosing MONEY over PRINCIPLE.
I am also concerned – how do you expect Ted Cruz to vote on China after he gets rich on their payroll? Exactly – pro-China. If he was working for the oil industry you’d expect him to be pro-oil, right?
Ted Cruz is disqualified. Texas must not elect yet another pro-China Senator in Washington. We know better.
I have heard he’s making FAR MORE than $500,000 from working for the Red Chinese. COME CLEAN, TED CRUZ: HOW MUCH ARE THE RED CHINESE PAYING YOU TO DESTROY AMERICAN BUSINESS?
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Pete Hawkins says:
If this is true, Ted Cruz needs to tell Texans the truth before he is forced out of the US Senate race. Taking cash from our enemy is not cool (IF that is what happened).
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