WEBVTT - Why the Prosecution Failed in Whitmer Kidnapping Plot

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<v Speaker 1>This is Bloomberg Law with June Bresso from Bloomberg Radio.

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<v Speaker 1>Thirteen days of testimony from undercover agents and informant and

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<v Speaker 1>to co defendants who pleaded guilty. There were also the

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<v Speaker 1>secretly recorded conversations, violent social media posts and chat messages. Yet,

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<v Speaker 1>in a stunning defeat for the government, the jury failed

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<v Speaker 1>to convict any of the four defendants in the plot

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<v Speaker 1>to kidnap Michigan Governor Gretchen Whitmer. U s attorney Andrew

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<v Speaker 1>Bird said he believed the prosecution presented a strong case.

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<v Speaker 1>Obviously we're disappointed with the outcome. I thought we had

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<v Speaker 1>the jury to convict fandor's about basically events we put forward.

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<v Speaker 1>But we still believe in the jury system. The defense

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<v Speaker 1>lawyers portrayed the men as unsophisticated weekend warriors, often stoned

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<v Speaker 1>on marijuana and prone to wild talk, who were entrapped

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<v Speaker 1>by the FBI and it's sting operation. Michael Hills represented

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<v Speaker 1>Brandon Concerta, who was acquitted. Our governor was never in

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<v Speaker 1>any danger, and I think the jury, even though they

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<v Speaker 1>didn't get all of it, you know, they smelled enough

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<v Speaker 1>of it. I think what the FBI did is unconstanably.

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<v Speaker 1>This is what I think, and I think the jury

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<v Speaker 1>just sent them a message loud and clear. My guest

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<v Speaker 1>is Matthew Schneider, former U S Attorney for the Eastern

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<v Speaker 1>District of Michigan and a partner at Huntingmanon. Many were

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<v Speaker 1>stunned by the verdict. Were you I was, like a

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<v Speaker 1>lot of people were, And I'm a former prosecutor. I

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<v Speaker 1>work as a defense attorney, and prosecutors and defense attorneys

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<v Speaker 1>alike were stunned at this, and they said that openly

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<v Speaker 1>it was surprising. The government put forth a very strong

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<v Speaker 1>case and it's not the result that a lot of

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<v Speaker 1>people predicted. Two were acquitted, they were hung on another two.

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<v Speaker 1>What were the differences that they would equip some and

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<v Speaker 1>hang on others. There were some significant differences. The two

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<v Speaker 1>that received the hung verdict, those were viewed as kind

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<v Speaker 1>of the ringleaders of this, and the jury found that

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<v Speaker 1>there was not enough evidence to convict them. The two

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<v Speaker 1>that were acquitted. As for those defendants, those were the

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<v Speaker 1>defendants who did not actually go to the governor's house

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<v Speaker 1>and scope it out. There was an event where people

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<v Speaker 1>went to the governor's house or residents and kind of

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<v Speaker 1>watched it, fouled around the driveways and used night vision

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<v Speaker 1>goggles and tried to scope out the place. Well, those

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<v Speaker 1>two defendants, they didn't participate in that, and that might

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<v Speaker 1>have been a dividing line that the jury felt that

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<v Speaker 1>they should be acquitted. Daniel Harris, one of the two acquitted,

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<v Speaker 1>took the stand in his own defense, a risky move

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<v Speaker 1>that apparently worked. What did you see in his testimony? Well,

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<v Speaker 1>we don't know if that's what worked or not, because

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<v Speaker 1>the jury hasn't said. The jurors went out and they

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<v Speaker 1>didn't speak to anybody, So we don't know if it

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<v Speaker 1>was because they believed in the entrapment theory of the defense,

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<v Speaker 1>or that they believed in the defense theory that these

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<v Speaker 1>guys were just kind of making it up in big talkers,

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<v Speaker 1>or that they were kind of, you know, stoned and

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<v Speaker 1>not very sophisticated and not clever enough to actually do this.

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<v Speaker 1>We're not sure. We do know that Harris was acquitted

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<v Speaker 1>of the weapon's charge, which was possessioned of a short

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<v Speaker 1>barrel rifle, and that charge seemed to be that there

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<v Speaker 1>was plenty of evidence for that and for the jury

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<v Speaker 1>to acquit him of that seems quite striking because there

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<v Speaker 1>was plenty of proofs that he had the gun. It's

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<v Speaker 1>not like the kidnapping plot where there was discussion either

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<v Speaker 1>you had the gun or you didn't, and they found

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<v Speaker 1>that he didn't and was he arrested with the gun

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<v Speaker 1>or not. There was a lot of discussion about the

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<v Speaker 1>type of gun it was and the position it was,

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<v Speaker 1>and whether or not it was in pieces at the time.

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<v Speaker 1>But you know a weapon even if it's in separate

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<v Speaker 1>pieces that you know the receiver. If the receiver is

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<v Speaker 1>what you have, that's still classified as a weapon under

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<v Speaker 1>federal law. But there was explanation given in this testimony

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<v Speaker 1>that always in different pieces, and perhaps that's something that

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<v Speaker 1>the jury took into account. So there were thirteen days

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<v Speaker 1>of evidence undercover FBI agents and FBI informant to co

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<v Speaker 1>defendants who pleaded guilty. They were secretly recorded conversations, violence,

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<v Speaker 1>social media posts, etcetera, etcetera. So it seemed like the

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<v Speaker 1>prosecution had a lot of evidence. Where did it fail? Well,

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<v Speaker 1>they did have a lot of evidence. But if you're

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<v Speaker 1>going to be looking at this case in the future

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<v Speaker 1>as to how this case was brought, it will be

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<v Speaker 1>a big question about did they have to take down

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<v Speaker 1>this case. Now, did they have to end the investigation

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<v Speaker 1>when they did, and what would have been the result

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<v Speaker 1>if instead of ending the investigation they would have continued.

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<v Speaker 1>Would they have developed, for example, evidence from the defendants

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<v Speaker 1>that they had set a firm date for the kidnapping,

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<v Speaker 1>which did not happen in this case. But if they

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<v Speaker 1>would have kept the investigation of lives, maybe they would

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<v Speaker 1>have gotten more evidence convince the jury. Now, we all

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<v Speaker 1>understand that investigations sometimes have to be taken down for

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<v Speaker 1>officers safety and things like that, but still that's going

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<v Speaker 1>to be a very nagging question in the eyes of

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<v Speaker 1>the Justice Department for many cases moving forward. We just

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<v Speaker 1>go back a bit and explain when they decided to

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<v Speaker 1>end the FBI investigation. At what point they ended it

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<v Speaker 1>as the defendants were walking into a restaurant to have launch. Okay,

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<v Speaker 1>so that appears to be an innocuous time, but it

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<v Speaker 1>was a time when law enforcement could get together and

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<v Speaker 1>it was an open area where they could all swoop

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<v Speaker 1>in and have a safe arrest. That left out some

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<v Speaker 1>evidence that I think might have come forth if they

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<v Speaker 1>would have continued the recording devices and continued the conversations

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<v Speaker 1>the FBI ending the operation before they had evidence of

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<v Speaker 1>the defendants making definitive plans to kidnap the governor. How

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<v Speaker 1>did that help the defense? That is the defense argument,

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<v Speaker 1>and that they're saying, this is all a bunch of talk.

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<v Speaker 1>They didn't have any actions, and there's nothing that the

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<v Speaker 1>government can show for it. Now, look, there's still two

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<v Speaker 1>defendants still to be retried, and there are two defendants

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<v Speaker 1>who pleaded guilty. And when you plead guilty in federal court,

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<v Speaker 1>you go into the courtroom and you say I'm pleading

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<v Speaker 1>guilty because I am guilty. And those defendants testified and

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<v Speaker 1>they said that they were guilty of this conspiracy. They

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<v Speaker 1>did commit the crime, and they were testifying so that

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<v Speaker 1>they could help the prosecution and hopefully get a sentence reduction.

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<v Speaker 1>That makes it even more surprising that the jury didn't

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<v Speaker 1>believe them. Oftentimes, jurors don't like cooperators, they don't like

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<v Speaker 1>people who were once on one side and then switched

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<v Speaker 1>to the other side. The defense painted them as liars

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<v Speaker 1>who were only trying to get a sentence reduction, and

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<v Speaker 1>that it happens in every case. This case, also, however,

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<v Speaker 1>had undercover FBI informant, There was an informant, there was

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<v Speaker 1>an agent. There was plenty of testimony here and plenty

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<v Speaker 1>of evidence. But the defense theory, again, we don't know

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<v Speaker 1>because we don't know what the jury has to say,

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<v Speaker 1>but it appears that it worked very favorable in the

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<v Speaker 1>defense's mind. The lawyer for Brandon concert A blamed overly

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<v Speaker 1>aggressive FBI informans. He said, I think what the FBI

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<v Speaker 1>did is unconscionable, and I think the jury just sent

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<v Speaker 1>them a message loud and clear. Is that the case

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<v Speaker 1>because they hung on two of the defendants. Well, if

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<v Speaker 1>they were loud and clear unconscionable, you would have had

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<v Speaker 1>four acquittals, and we didn't have that. What we had

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<v Speaker 1>is a jury saying I can find these two who

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<v Speaker 1>were not present at the stake out of the Governor's

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<v Speaker 1>house not guilty, but I'm not sure, and we can't

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<v Speaker 1>reach a verdict on the other two. And we also,

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<v Speaker 1>as I indicated, had to be im plead guilty. So

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<v Speaker 1>that really remains to be seen. The government is going

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<v Speaker 1>to go back to square one and try this case again,

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<v Speaker 1>which is not unusual. I mean John Gotti, for example,

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<v Speaker 1>was tried four times by the Justice Department, So it's

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<v Speaker 1>not surprising that they would give this another shot with

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<v Speaker 1>a new jury, rush instructions, fresh arguments. Do you think

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<v Speaker 1>the prosecution will try to present the case differently, Yes,

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<v Speaker 1>I do, because the jury asked a lot of questions

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<v Speaker 1>about the weapons involved in the explosives. Well, jurors don't

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<v Speaker 1>ask questions if they understand all the evidence and the

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<v Speaker 1>presentation was flawless. They only ask questions if they don't

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<v Speaker 1>understand what just took place. And so I'm certain that

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<v Speaker 1>the government will be doing a closer explanation about the

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<v Speaker 1>bombs and that type of evidence in this next retrial.

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<v Speaker 1>The jury pool was drawn from a twenty two county

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<v Speaker 1>region in western and northern Michigan that is largely rural,

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<v Speaker 1>Republican and conservative. Is it possible that the prosecution just

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<v Speaker 1>can't get a jury that will convict in this case, Well,

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<v Speaker 1>the prosecution picked a jury along with the defense, and

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<v Speaker 1>certainly some of the members of the jury, a lot

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<v Speaker 1>of them actually owned weapons. A lot of them expressed,

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<v Speaker 1>you know, some mistrust for government entities, but not overly

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<v Speaker 1>so that would kick them off the jury a pool.

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<v Speaker 1>But I think you have a lot of people in

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<v Speaker 1>this jury pool who don't like the government, and you

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<v Speaker 1>know you have a constitutional right to dislike Governor Whitmer

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<v Speaker 1>or even hate her. That's your constitutional right. People hate

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<v Speaker 1>people love her. The fact is is what no one

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<v Speaker 1>should take from this verdict is that it's okay to

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<v Speaker 1>do harm to a public official, because it's not okay

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<v Speaker 1>to threaten to kidnap Governor Whitmer. The only thing you

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<v Speaker 1>can take from this verdict is that the government failed

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<v Speaker 1>to convince the jury beyond a reasonable doubt. Some politicians

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<v Speaker 1>have expressed fears about these acquittals. So, for example, Michigan

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<v Speaker 1>State Representative Lori Phutsky tweeted that a man who threatened

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<v Speaker 1>to kill her in was acquitted. Quote, the next time

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<v Speaker 1>you ask why we can't get good people to run

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<v Speaker 1>for office, consider today's verdict. This won't be taken seriously

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<v Speaker 1>until someone dies. Do these acquittals send out a message

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<v Speaker 1>that you're not going to be held accountable. That's going

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<v Speaker 1>to be a great question after the retrial of this case,

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<v Speaker 1>because these two defendants are still out there now. If

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<v Speaker 1>those defendants are found not guilty, a lot of questions

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<v Speaker 1>will be asked about the safety of public officials. But

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<v Speaker 1>we're not quite there yet, so I don't think we're

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<v Speaker 1>quite in the position to make those calculations or conclusions

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<v Speaker 1>so far. Did you see a great difference in the

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<v Speaker 1>way the defense attorneys handled the case. Each of the

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<v Speaker 1>defense attorneys took a different, slightly different approach. Some of

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<v Speaker 1>them really hammered on the fact that there were government informants,

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<v Speaker 1>and the government informants and the FBI was driving this

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<v Speaker 1>case from the beginning to the end. Maybe that's what

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<v Speaker 1>the jury believed and caught onto. Other times, defense attorneys

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<v Speaker 1>really hit on the issue that the defendants were not competent.

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<v Speaker 1>They raised a bunch of other things that they could

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<v Speaker 1>do to the governor other than kidnapper, such as that

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<v Speaker 1>they would cut all the trees down between Indiana in

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<v Speaker 1>Michigan to prevent law enforcement from getting there fast enough. Well,

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<v Speaker 1>it's really fanciful. They also talked about tying a balloon

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<v Speaker 1>to the governor and toting her away. No one really

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<v Speaker 1>believes that that could happen. So the defense theory was,

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<v Speaker 1>if they're going to make up those type of theories

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<v Speaker 1>that are really impossible, kidnapping the governor is just another

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<v Speaker 1>one of those theories and it shouldn't be believed, and

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<v Speaker 1>that was part of the arguments made in this case.

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<v Speaker 1>I guess this does show that the jury really considered

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<v Speaker 1>each of the defendants individually. They certainly did, and if

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<v Speaker 1>they hadn't, this would have been a quick verdict. But

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<v Speaker 1>they came back over several days. They took a lot

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<v Speaker 1>of time, They asked questions that were very specific to

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<v Speaker 1>the defendant's charged with the weapons, for example, and it

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<v Speaker 1>looks like they did deliberate and take a lot of time.

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<v Speaker 1>Of course, you know, when the jury came back and

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<v Speaker 1>they couldn't reach a verdict, the expressions on their faces

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<v Speaker 1>was certainly one of frustration. And if you have to

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<v Speaker 1>sit inside a room with twelve people that you don't

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<v Speaker 1>know for five days straight and you're disagreeing with them,

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<v Speaker 1>it has to be very frustrating, definitely. So how big

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<v Speaker 1>a blow would you say this is to the Justice Department,

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<v Speaker 1>which has made domestic terror of priority after January six?

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<v Speaker 1>It certainly is not helpful, right. The Justice Department definitely

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<v Speaker 1>wanted to have convictions here. They were touting the security

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<v Speaker 1>and strength of their evidence. It didn't work out for them.

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<v Speaker 1>One thing that you should think about as well, is

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<v Speaker 1>it's not just what they said about the evidence, but

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<v Speaker 1>when the evidence was played in court it came out

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<v Speaker 1>a little bit differently. For example, some of these threats

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<v Speaker 1>towards Governor Whimer. You know, when they actually played the

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<v Speaker 1>tape of the recording, the defendants were laughing. We don't

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<v Speaker 1>laugh if you're serious about that, and so there was

0:12:51.440 --> 0:12:54.720
<v Speaker 1>some reason to believe that there was some joking going

0:12:54.760 --> 0:12:57.400
<v Speaker 1>on about this. Of course, there were other times when

0:12:57.720 --> 0:13:00.800
<v Speaker 1>very sinister things were said about hurting the governor and

0:13:00.880 --> 0:13:04.439
<v Speaker 1>no one was laughing at all. So on both sides,

0:13:04.559 --> 0:13:07.880
<v Speaker 1>each side had some arguments there is there anything the

0:13:07.960 --> 0:13:11.239
<v Speaker 1>government can do on the retrial to make the witnesses

0:13:11.400 --> 0:13:15.840
<v Speaker 1>the informants more believable, But they can't go back and

0:13:15.920 --> 0:13:18.720
<v Speaker 1>change the evidence. Then what's done is done is because

0:13:19.200 --> 0:13:21.760
<v Speaker 1>this case was taken down at this particular time, with

0:13:21.840 --> 0:13:25.080
<v Speaker 1>these particular defendants involved, and so that can't be changed.

0:13:25.480 --> 0:13:29.480
<v Speaker 1>They can, however, have different questions or additional questions asked

0:13:29.480 --> 0:13:32.880
<v Speaker 1>for potential jurors. Some of the jurors in this trial

0:13:33.040 --> 0:13:35.560
<v Speaker 1>were asked very very little. In fact, one of the

0:13:35.640 --> 0:13:37.880
<v Speaker 1>last people into the jury box, I think he was

0:13:37.920 --> 0:13:40.480
<v Speaker 1>asked two questions. And once I heard that, and I

0:13:40.520 --> 0:13:43.160
<v Speaker 1>was listening to the testimony, I thought, who the heck

0:13:43.240 --> 0:13:45.600
<v Speaker 1>is this guy? We don't even really know who this

0:13:45.679 --> 0:13:48.240
<v Speaker 1>person is, and now he's on the jury. I don't

0:13:48.240 --> 0:13:50.840
<v Speaker 1>know if he favors the government or he favors the defense.

0:13:51.400 --> 0:13:54.200
<v Speaker 1>If you were a trial lawyer, you would step up

0:13:54.240 --> 0:13:56.600
<v Speaker 1>and say, hold on a second year, honor. I've got

0:13:56.600 --> 0:13:59.600
<v Speaker 1>a few more questions, and I think we will probably

0:13:59.640 --> 0:14:03.160
<v Speaker 1>see the at on both sides in the future. Does

0:14:03.200 --> 0:14:08.600
<v Speaker 1>this showcase the difficulties the government has with infiltrating right

0:14:08.640 --> 0:14:14.200
<v Speaker 1>wing groups and developing cases without infringing on First and

0:14:14.320 --> 0:14:18.560
<v Speaker 1>Second Amendment rights? It certainly does. And this is a

0:14:18.640 --> 0:14:21.000
<v Speaker 1>real fine line because it's not the first time that

0:14:21.080 --> 0:14:23.200
<v Speaker 1>the government has brought a case that is similar to this,

0:14:23.560 --> 0:14:27.400
<v Speaker 1>where it's churched people with government extremism and they've found

0:14:27.400 --> 0:14:30.280
<v Speaker 1>acquittals at the end of the road. So yes, it's

0:14:30.320 --> 0:14:33.160
<v Speaker 1>certainly something that the government has to take into account

0:14:33.400 --> 0:14:36.280
<v Speaker 1>that people have the First Amendment, they have the Second Amendment,

0:14:36.480 --> 0:14:38.800
<v Speaker 1>and in fact, this was covered in the trial. When

0:14:38.880 --> 0:14:42.280
<v Speaker 1>you are making a bomb for fun, because some people

0:14:42.320 --> 0:14:45.400
<v Speaker 1>do that, and you're you're just making explosives. That's not

0:14:45.480 --> 0:14:49.160
<v Speaker 1>necessarily a weapon of mass destruction. But there was testimony

0:14:49.160 --> 0:14:51.280
<v Speaker 1>about the fact that when you take a bomb or

0:14:51.320 --> 0:14:54.240
<v Speaker 1>an explosive device and you put items in it like

0:14:54.320 --> 0:14:58.360
<v Speaker 1>bbs or pennies are things that can fragment and injure people.

0:14:58.680 --> 0:15:01.120
<v Speaker 1>That's a different type of weapon. So all of these

0:15:01.160 --> 0:15:03.600
<v Speaker 1>things the government will be looking at in the future.

0:15:03.880 --> 0:15:06.880
<v Speaker 1>And it is truly a balanced thing between knowing when

0:15:07.160 --> 0:15:11.280
<v Speaker 1>you're prosecuting somebody who's done wrong and prosecuting somebody improperly

0:15:11.360 --> 0:15:15.680
<v Speaker 1>because they've just exercised their First or Second Amendment rights. Matthew,

0:15:15.720 --> 0:15:18.560
<v Speaker 1>hasn't been decided that they're going to retry them, or

0:15:18.600 --> 0:15:22.160
<v Speaker 1>is there any question about it. It hasn't been formally decided,

0:15:22.200 --> 0:15:25.040
<v Speaker 1>but nor What always happens after this is the judge

0:15:25.240 --> 0:15:28.760
<v Speaker 1>enters a verdict of mistrial, and that hasn't yet happened

0:15:28.760 --> 0:15:30.760
<v Speaker 1>on the dock at Chet, but the judge will do that,

0:15:31.080 --> 0:15:33.880
<v Speaker 1>and then the judge will study scheduling date for when

0:15:33.960 --> 0:15:36.880
<v Speaker 1>the next dates are. The current U S Attorney in

0:15:36.880 --> 0:15:40.160
<v Speaker 1>the Western District indicated that we have more work to

0:15:40.200 --> 0:15:42.920
<v Speaker 1>do and we've got another trial coming up, So he's

0:15:42.960 --> 0:15:46.280
<v Speaker 1>telegraphed that, and I would think, given the Justice Department's

0:15:46.440 --> 0:15:50.320
<v Speaker 1>past record on retrials, that there's really no reason that

0:15:50.400 --> 0:15:53.720
<v Speaker 1>they wouldn't retrial this case. Again, given the fact that

0:15:53.800 --> 0:15:57.120
<v Speaker 1>the jury returned to split verdict and opened the door

0:15:57.280 --> 0:16:00.320
<v Speaker 1>for that to happen. What kind of message would it

0:16:00.360 --> 0:16:03.640
<v Speaker 1>send out if the government didn't retry these two It

0:16:03.680 --> 0:16:05.720
<v Speaker 1>would show that they're giving up on the case. And

0:16:06.040 --> 0:16:09.880
<v Speaker 1>you know, some in the defense bar would say that's good.

0:16:10.080 --> 0:16:13.320
<v Speaker 1>They're realizing the conclusion that the FBI and the government

0:16:13.360 --> 0:16:15.920
<v Speaker 1>overreached and they should give up. And certainly that is

0:16:15.960 --> 0:16:19.000
<v Speaker 1>an argument that has been put forth. But another argument

0:16:19.120 --> 0:16:22.560
<v Speaker 1>is is that they have another ability to talk with

0:16:22.600 --> 0:16:26.160
<v Speaker 1>the jurors now, this time only with two defendants, and

0:16:26.240 --> 0:16:28.840
<v Speaker 1>that will be easier than with four defendants, will be

0:16:28.920 --> 0:16:32.120
<v Speaker 1>less confusing, there'll be less evidence in the record. They'll

0:16:32.120 --> 0:16:34.840
<v Speaker 1>be able to focus only on these two folks and

0:16:34.880 --> 0:16:38.000
<v Speaker 1>then let the chips ball where they may. Thanks Matthew.

0:16:38.560 --> 0:16:41.560
<v Speaker 1>That's Matthew Schneider, former U S Attorney for the Eastern

0:16:41.600 --> 0:16:47.200
<v Speaker 1>District of Michigan and a partner at Honigman. President Biden

0:16:47.280 --> 0:16:51.000
<v Speaker 1>is coming off the victory of Katangi Brown Jackson's confirmation

0:16:51.040 --> 0:16:54.200
<v Speaker 1>to the Supreme Court, with a backlog of lower court

0:16:54.280 --> 0:16:58.480
<v Speaker 1>vacancies that don't have appending nominee and the midterm elections

0:16:58.520 --> 0:17:03.080
<v Speaker 1>ahead that could end the democrats narrow Senate majority. Joining

0:17:03.120 --> 0:17:07.520
<v Speaker 1>me is Madison Alder Bloomberg Law reporter start by telling

0:17:07.600 --> 0:17:11.840
<v Speaker 1>us how quickly Biden moved to fill judicial vacancies in

0:17:11.920 --> 0:17:15.879
<v Speaker 1>his first year in office. In his first twelve months

0:17:15.920 --> 0:17:20.479
<v Speaker 1>in office, Biden outpaced every president since John F. Kennedy

0:17:20.560 --> 0:17:24.480
<v Speaker 1>with his appointment. He moved at a really record paced here,

0:17:24.920 --> 0:17:29.680
<v Speaker 1>even outpacing Trump, who definitely made judicial nominations a priority.

0:17:29.880 --> 0:17:33.520
<v Speaker 1>So Biden got off to a really good start in

0:17:33.600 --> 0:17:36.960
<v Speaker 1>year one. In your two, he now had a Supreme

0:17:36.960 --> 0:17:39.400
<v Speaker 1>Court va can see the fill and that took up

0:17:39.960 --> 0:17:42.600
<v Speaker 1>a lot of time for the White House and for

0:17:42.720 --> 0:17:47.000
<v Speaker 1>the Senate to deal with. So now Biden is looking

0:17:47.200 --> 0:17:51.240
<v Speaker 1>at a lot of vacancies to fill this year, and

0:17:51.640 --> 0:17:54.080
<v Speaker 1>that's made a little bit more difficult with mid terms

0:17:54.200 --> 0:17:58.159
<v Speaker 1>right around the corner. Has Biden made any new lower

0:17:58.160 --> 0:18:04.120
<v Speaker 1>court nominations since Justice Stephen Bryan announced his retirement. Yes,

0:18:04.280 --> 0:18:07.879
<v Speaker 1>on February second, he made just one nomination to a

0:18:08.000 --> 0:18:12.160
<v Speaker 1>circuit court, but really nominations have been to and far

0:18:12.240 --> 0:18:16.640
<v Speaker 1>between during that process. So now Biden is looking at

0:18:17.000 --> 0:18:19.840
<v Speaker 1>several vacancies at the circuit court level, about nine team

0:18:19.920 --> 0:18:24.320
<v Speaker 1>that don't have a nomination pending, because he definitely has

0:18:24.320 --> 0:18:27.800
<v Speaker 1>an opportunity to make an impact. They're looking towards the

0:18:27.880 --> 0:18:30.440
<v Speaker 1>end of the year. Was it deliberate that he didn't

0:18:30.480 --> 0:18:34.800
<v Speaker 1>make any new nominations or was it because of the

0:18:34.840 --> 0:18:38.240
<v Speaker 1>whole process of having a Supreme Court nomination and shepherding

0:18:38.320 --> 0:18:42.119
<v Speaker 1>that through. I think the Supreme Court nomination takes up

0:18:42.119 --> 0:18:45.080
<v Speaker 1>a lot of oxygen in the room. But if Biden

0:18:45.119 --> 0:18:49.240
<v Speaker 1>wants to make an impact on lower court nominations, new

0:18:49.359 --> 0:18:51.000
<v Speaker 1>nominations are going to have to come from the White

0:18:51.000 --> 0:18:54.679
<v Speaker 1>House here pretty soon. To give the Senate nomination to

0:18:55.040 --> 0:18:58.520
<v Speaker 1>work on before mid terms kind of take over and

0:18:58.800 --> 0:19:01.399
<v Speaker 1>take up a lot of senator's time when they're when

0:19:01.400 --> 0:19:04.760
<v Speaker 1>they're at home campaigning. So let's talk about how many

0:19:04.760 --> 0:19:08.600
<v Speaker 1>openings there are. There are three seats on the ninth

0:19:08.680 --> 0:19:11.919
<v Speaker 1>and first circuit, this is without a nominee, two seats

0:19:11.960 --> 0:19:14.840
<v Speaker 1>on the first, second, fourth, fifth, and seventh, and one

0:19:14.960 --> 0:19:18.440
<v Speaker 1>seat on the third, sixth, tenth, and d C circuit.

0:19:19.240 --> 0:19:22.560
<v Speaker 1>That's a lot of seats. Is that just waiting for

0:19:22.640 --> 0:19:26.520
<v Speaker 1>the three months for Jackson's nomination to come through or

0:19:26.960 --> 0:19:29.920
<v Speaker 1>did they slow down before that? So these have been

0:19:29.920 --> 0:19:35.159
<v Speaker 1>building up, Definitely, These didn't just occurred during Jackson's nomination

0:19:35.280 --> 0:19:39.240
<v Speaker 1>and far announcement that he would retire UM. But it

0:19:39.400 --> 0:19:42.440
<v Speaker 1>is building up now and some of these have built

0:19:42.480 --> 0:19:45.919
<v Speaker 1>up during that time period. So now this is this

0:19:46.000 --> 0:19:47.520
<v Speaker 1>is what the White House is really going to be

0:19:47.600 --> 0:19:51.040
<v Speaker 1>looking to towards the end of this year. Tell us

0:19:51.040 --> 0:19:56.040
<v Speaker 1>about the most high profile vacancy is Jackson's seat on

0:19:56.040 --> 0:19:59.960
<v Speaker 1>the d C circuit and there's already one nominee in play.

0:20:00.000 --> 0:20:03.120
<v Speaker 1>He set there. Tell us about that nominee first. So

0:20:03.200 --> 0:20:06.800
<v Speaker 1>the nominee in place there already is Michelle Child. She

0:20:06.960 --> 0:20:10.280
<v Speaker 1>is a South Carolina's District judge Seddle judge UM in

0:20:10.320 --> 0:20:14.000
<v Speaker 1>South Carolina, and she was being considered, if you remember,

0:20:14.000 --> 0:20:17.880
<v Speaker 1>as a candidate for the Supreme Court. Uh, they paused

0:20:17.960 --> 0:20:20.719
<v Speaker 1>her nomination process. She was actually going to have a hearing.

0:20:20.800 --> 0:20:24.800
<v Speaker 1>The Judiciary Committee had planned to have her have a hearing,

0:20:25.359 --> 0:20:29.360
<v Speaker 1>and when she was under consideration, so the seat, they

0:20:29.400 --> 0:20:33.400
<v Speaker 1>paused that. So her nomination will be one of the

0:20:33.440 --> 0:20:37.000
<v Speaker 1>circuit nominations the Judiciary Committee can address when it comes

0:20:37.000 --> 0:20:41.040
<v Speaker 1>back after after recess. But then Biden also has another

0:20:41.080 --> 0:20:43.880
<v Speaker 1>opportunity on on the DC Circuit, and that's Cantanti Brown

0:20:43.960 --> 0:20:48.159
<v Speaker 1>Jackson's seat on the DC Circuit. Her elevation opens up

0:20:48.160 --> 0:20:52.200
<v Speaker 1>another vacancy and he now has two seats he can

0:20:52.320 --> 0:20:54.679
<v Speaker 1>he can fill on on that court, which is often

0:20:54.800 --> 0:20:58.480
<v Speaker 1>seen as the second highest because it involves a lot

0:20:58.520 --> 0:21:02.560
<v Speaker 1>of disputes in Balti agencies in Congress, and it's a

0:21:02.720 --> 0:21:05.720
<v Speaker 1>it's a theme, is a very important court. Some groups

0:21:05.720 --> 0:21:09.840
<v Speaker 1>are already posturing and making suggestions about what they want

0:21:09.880 --> 0:21:12.560
<v Speaker 1>to see on that court. Right We just had a

0:21:12.600 --> 0:21:16.040
<v Speaker 1>process where we were considering someone for that seat, and

0:21:16.400 --> 0:21:19.919
<v Speaker 1>a lot of groups were making suggestions before Child was

0:21:19.960 --> 0:21:23.080
<v Speaker 1>nominated about who they would like to see in in

0:21:23.080 --> 0:21:25.919
<v Speaker 1>that kind of a role. I reported in September that

0:21:26.040 --> 0:21:31.040
<v Speaker 1>Depect Cuta, who is the founder of boutique Appellent firm Um,

0:21:31.080 --> 0:21:34.720
<v Speaker 1>and Karla Gilbride, who's a senior attorney at Public Justice,

0:21:34.840 --> 0:21:39.120
<v Speaker 1>were both thought to be under consideration for that vacancy. Ultimately,

0:21:39.200 --> 0:21:42.440
<v Speaker 1>Child was nominated, but given that they just considered nominated

0:21:42.480 --> 0:21:44.720
<v Speaker 1>to the seat if there was anybody that was considered

0:21:44.880 --> 0:21:47.280
<v Speaker 1>for that seat, that might be someone that they think

0:21:47.320 --> 0:21:51.040
<v Speaker 1>about for this time around as well. I spoke to

0:21:51.160 --> 0:21:53.960
<v Speaker 1>a couple of progressive groups, and you know, they would

0:21:53.960 --> 0:21:57.720
<v Speaker 1>really like to see someone who maybe brings a different

0:21:57.720 --> 0:22:00.679
<v Speaker 1>type of diversity to the Court than Child. The Child

0:22:01.160 --> 0:22:05.600
<v Speaker 1>was criticized by progressives during that process of considering her

0:22:05.680 --> 0:22:10.040
<v Speaker 1>for the Supreme Court for her representation of employers, and

0:22:10.160 --> 0:22:12.240
<v Speaker 1>some of these progressive groups would like to see someone

0:22:12.280 --> 0:22:15.760
<v Speaker 1>maybe with a pellet practice or a working administrative law

0:22:15.840 --> 0:22:20.000
<v Speaker 1>work representing consumer interests. So those are some areas that

0:22:20.200 --> 0:22:24.200
<v Speaker 1>are being talked about. Is a potential background, characteristics or

0:22:24.359 --> 0:22:28.119
<v Speaker 1>experience for Biden's pick medicine who is doing the selecting

0:22:28.720 --> 0:22:33.280
<v Speaker 1>of these nominees. So the DC circuit is unique in

0:22:33.320 --> 0:22:36.920
<v Speaker 1>the fact that there's no senators that are attached to DC,

0:22:37.080 --> 0:22:41.040
<v Speaker 1>so the White House doesn't have to deal with senators

0:22:41.080 --> 0:22:44.159
<v Speaker 1>interest now at the circuit level, that hasn't been the

0:22:44.200 --> 0:22:49.240
<v Speaker 1>practice for several years now. During the Trump administration, Republicans

0:22:49.240 --> 0:22:52.680
<v Speaker 1>in the Senate stopped treating home state senators support as

0:22:52.720 --> 0:22:55.560
<v Speaker 1>a veto on nominees, so that hasn't been the case

0:22:55.560 --> 0:22:58.199
<v Speaker 1>at the circuit level for a few years now, but

0:22:58.400 --> 0:23:01.719
<v Speaker 1>the DC Circuit has always been that way, and you know,

0:23:01.720 --> 0:23:03.640
<v Speaker 1>even if the White House are reaching out to courtesy,

0:23:03.800 --> 0:23:06.280
<v Speaker 1>that's not something that happens at the DC Circuit level

0:23:06.359 --> 0:23:08.520
<v Speaker 1>just because there aren't senators there. So they really have,

0:23:09.080 --> 0:23:11.879
<v Speaker 1>you know, kind of a blank slate here in terms

0:23:11.960 --> 0:23:16.320
<v Speaker 1>of who they could select for for the seat. And

0:23:16.600 --> 0:23:22.080
<v Speaker 1>there's some pressure to appoint the circuit's first Hispanic as well. Correct, Yeah,

0:23:22.720 --> 0:23:26.440
<v Speaker 1>the Mexican American Legal Defense and Education Fund has apparded names,

0:23:26.480 --> 0:23:30.440
<v Speaker 1>the reported names dividings for Judge David Tatle's seats, which

0:23:30.480 --> 0:23:33.800
<v Speaker 1>is the seat that Michelle Child was nominated to. But

0:23:33.880 --> 0:23:36.480
<v Speaker 1>now that there's another opening, uh, you know, they would

0:23:36.520 --> 0:23:40.399
<v Speaker 1>like to see the court's first Hispanic appointed to that

0:23:40.480 --> 0:23:43.920
<v Speaker 1>seat too. So that's another element for for the administrations

0:23:43.960 --> 0:23:47.800
<v Speaker 1>to be considering here. The Judiciary Committee has split eleven

0:23:47.800 --> 0:23:53.160
<v Speaker 1>Republicans eleven Democrats. Are Republicans causing delays when they don't

0:23:53.240 --> 0:23:56.800
<v Speaker 1>vote for the nominees. Yes, there are a few nominees

0:23:56.920 --> 0:24:00.560
<v Speaker 1>right now who are going to require a discharge petition

0:24:00.800 --> 0:24:03.880
<v Speaker 1>on their nominations that we just saw this with Stanji

0:24:03.920 --> 0:24:07.680
<v Speaker 1>bon Jackson nomination as well. This means the committee deadlocks

0:24:07.720 --> 0:24:11.119
<v Speaker 1>and Ben Schumer files a discharged motion, and then that

0:24:11.359 --> 0:24:14.480
<v Speaker 1>vote on the discharged motion is something that happens in

0:24:14.520 --> 0:24:18.240
<v Speaker 1>the full Senate, So instead of having two votes on

0:24:18.280 --> 0:24:21.840
<v Speaker 1>your nomination closer to end debate, in the final confirmation vote,

0:24:22.080 --> 0:24:24.399
<v Speaker 1>you end up having three votes on the floor. So

0:24:24.480 --> 0:24:26.320
<v Speaker 1>it just takes up a little bit more time, but

0:24:26.440 --> 0:24:30.199
<v Speaker 1>ultimately these nominees can get confirmed since time seems to

0:24:30.200 --> 0:24:33.160
<v Speaker 1>be of the essence. Now, do the people you've talked

0:24:33.200 --> 0:24:37.880
<v Speaker 1>to think that it's possible for Biden to fill these

0:24:38.240 --> 0:24:44.520
<v Speaker 1>nineteen circuit court seats plus depending ones before the mid terms? Yeah.

0:24:44.520 --> 0:24:47.160
<v Speaker 1>I talked to John Collins, who's a professor at George

0:24:47.200 --> 0:24:51.440
<v Speaker 1>Washington University who focuses on tracking judicial nominations, and he

0:24:51.520 --> 0:24:53.920
<v Speaker 1>told me that he thinks that there is an opportunity

0:24:54.000 --> 0:24:58.199
<v Speaker 1>for Biden to have a year like he had, but

0:24:58.760 --> 0:25:02.159
<v Speaker 1>nominating people as soon as possible is going to be

0:25:02.240 --> 0:25:04.679
<v Speaker 1>a really important piece of that and making sure that

0:25:04.760 --> 0:25:07.960
<v Speaker 1>there are nominees in the pipeline for the Senate to consider.

0:25:08.520 --> 0:25:12.880
<v Speaker 1>The Senate Judiciary Chair Dick Durbin said that Majority Leader

0:25:12.960 --> 0:25:16.439
<v Speaker 1>Chuck Schumer has his hands full with the sixteen district

0:25:16.520 --> 0:25:20.280
<v Speaker 1>and Appeals Court nominees awaiting votes on the Senate floor.

0:25:20.920 --> 0:25:25.960
<v Speaker 1>So that procedural issue with six of them really takes

0:25:26.040 --> 0:25:29.280
<v Speaker 1>up a lot of time on the Senate floor. It does.

0:25:29.480 --> 0:25:32.480
<v Speaker 1>Each of these votes takes up real hours of the

0:25:32.520 --> 0:25:36.440
<v Speaker 1>Senate time. And uh, Jeremy Durban told me as much.

0:25:36.520 --> 0:25:39.960
<v Speaker 1>Schumer has his handsful in terms of getting these votes

0:25:40.359 --> 0:25:42.680
<v Speaker 1>scheduled and and and the hours of that will take

0:25:42.720 --> 0:25:45.240
<v Speaker 1>when they come back from recess. And then Durban in

0:25:45.320 --> 0:25:49.560
<v Speaker 1>committee has about eight nominees to consider. But after those

0:25:49.600 --> 0:25:52.040
<v Speaker 1>eight nominees he will have run out of his list

0:25:52.080 --> 0:25:54.440
<v Speaker 1>from the White House, which is why the White House

0:25:54.520 --> 0:25:58.120
<v Speaker 1>nominating more people to be seech is so important. Let's

0:25:58.119 --> 0:26:03.080
<v Speaker 1>talk about the this circuits that could flip. Yeah, so

0:26:03.280 --> 0:26:08.000
<v Speaker 1>Biden has one opportunity here to split a circuit, to

0:26:08.119 --> 0:26:11.280
<v Speaker 1>change the balance on on a circuit. So the third circuit,

0:26:11.400 --> 0:26:15.240
<v Speaker 1>there is one Republican appointee leaving that court. If Biden

0:26:15.280 --> 0:26:19.280
<v Speaker 1>replaces that appointee, which is own, the circuit will be

0:26:19.320 --> 0:26:22.080
<v Speaker 1>split seven seven. So we'll shift the balance there from

0:26:22.080 --> 0:26:27.040
<v Speaker 1>a Republican appointed majority to a split courts and evenly

0:26:27.119 --> 0:26:31.359
<v Speaker 1>divided court between Republican and Democratic appointees and I should

0:26:31.560 --> 0:26:34.320
<v Speaker 1>make sure to note that a party of appointing president

0:26:34.440 --> 0:26:39.240
<v Speaker 1>isn't always an exact proxy for judges ideology, but it

0:26:39.400 --> 0:26:42.399
<v Speaker 1>is one of the only indicators that we have, so

0:26:42.600 --> 0:26:46.600
<v Speaker 1>it can be helpful for judging how something like on

0:26:46.760 --> 0:26:50.320
<v Speaker 1>bank rehearing will will go when the entire court is

0:26:50.840 --> 0:26:55.560
<v Speaker 1>deciding an issue. The circuits that are now Republican majority

0:26:55.680 --> 0:27:01.280
<v Speaker 1>are the Fifth, the six, seven, eight, and the eleventh.

0:27:01.600 --> 0:27:04.840
<v Speaker 1>That's correct. Does it appear as if the mid terms,

0:27:05.000 --> 0:27:09.960
<v Speaker 1>if the Republicans take back the Senate, how difficult is

0:27:10.000 --> 0:27:13.800
<v Speaker 1>it going to be for Biden to get his nominees through.

0:27:14.560 --> 0:27:16.840
<v Speaker 1>I'm glad you bout that up, because that is really

0:27:17.160 --> 0:27:20.880
<v Speaker 1>what is being people moving. The progressive groups that I've

0:27:20.920 --> 0:27:24.200
<v Speaker 1>I've spoken to our groups that watched judicial nominations, professors

0:27:24.200 --> 0:27:28.159
<v Speaker 1>that watch judicial nominations really say that that is the

0:27:28.200 --> 0:27:31.639
<v Speaker 1>important factor here because if it's the Senate changes hands,

0:27:31.840 --> 0:27:36.560
<v Speaker 1>there's a very high likelihood that nominations are going to

0:27:36.640 --> 0:27:40.240
<v Speaker 1>become much more difficult for the administration, and Republicans have

0:27:40.440 --> 0:27:43.560
<v Speaker 1>promised as much. Lindsey Graham kind of alluded to this

0:27:43.760 --> 0:27:47.840
<v Speaker 1>during Jackson's vote in the committee. He said the process

0:27:47.960 --> 0:27:52.240
<v Speaker 1>that the Democrats started will rear its head if Republicans

0:27:52.240 --> 0:27:55.880
<v Speaker 1>are in charge and promise they would talk about studies differently.

0:27:56.320 --> 0:27:59.240
<v Speaker 1>You know, that obviously remains to be seen what what

0:27:59.359 --> 0:28:02.280
<v Speaker 1>that would look like, but we can use the Obama

0:28:02.280 --> 0:28:07.160
<v Speaker 1>administration as kind of proxy. And Republicans really stymied Obama's

0:28:07.200 --> 0:28:11.280
<v Speaker 1>judicial nomination's efforts and that definitely could happen with with

0:28:11.359 --> 0:28:14.000
<v Speaker 1>Biden as well. So it's been something that we've been

0:28:14.000 --> 0:28:18.440
<v Speaker 1>talking about for Biden's entire administration of how much could

0:28:18.440 --> 0:28:22.560
<v Speaker 1>they get done in these two years before mid term

0:28:22.760 --> 0:28:27.680
<v Speaker 1>threaten Democrats swims on a majority. I didn't understand what

0:28:27.880 --> 0:28:30.560
<v Speaker 1>Graham was really saying, because look, as you say, the

0:28:30.720 --> 0:28:34.760
<v Speaker 1>Republicans president Obama's nominations. I didn't understand what he was

0:28:34.800 --> 0:28:40.160
<v Speaker 1>complaining about, right well, I mean, this confirmation process for

0:28:40.440 --> 0:28:43.760
<v Speaker 1>Jackson definitely brought up a lot of the woes of

0:28:43.800 --> 0:28:47.520
<v Speaker 1>the confirmation process in the past, and it seems like

0:28:47.800 --> 0:28:50.760
<v Speaker 1>maybe in the heat of the moment this comment was

0:28:50.760 --> 0:28:53.360
<v Speaker 1>was brought up. Um. An interesting thing to note though,

0:28:53.480 --> 0:28:56.480
<v Speaker 1>is that Graham has been pretty supportive of Biden's JUDENTSI

0:28:56.600 --> 0:29:00.080
<v Speaker 1>nominees uh In in committee and on on the on

0:29:00.120 --> 0:29:02.880
<v Speaker 1>the floor so whether or not that would change if

0:29:02.880 --> 0:29:07.720
<v Speaker 1>Republicans are in control would be a really interesting uh

0:29:08.240 --> 0:29:11.000
<v Speaker 1>change for for Graham in terms of the fact that

0:29:11.040 --> 0:29:14.080
<v Speaker 1>he's supported a lot of the nominees. Well, well, Democrats

0:29:14.080 --> 0:29:16.680
<v Speaker 1>have have been controlling this about it. As you know,

0:29:16.880 --> 0:29:21.480
<v Speaker 1>he supported Judge Jackson for her nomination to the d

0:29:21.560 --> 0:29:24.640
<v Speaker 1>C Circuit. I have no idea what happened to make

0:29:24.720 --> 0:29:27.320
<v Speaker 1>him so bitter. In the meantime, this is the first

0:29:27.320 --> 0:29:30.160
<v Speaker 1>time I've seen Grandma's questions all year. He doesn't come

0:29:30.240 --> 0:29:35.360
<v Speaker 1>to digital nominations hearing, so he typically votes by proxy

0:29:35.560 --> 0:29:39.360
<v Speaker 1>when the meetings come around, and so it was pretty

0:29:39.920 --> 0:29:44.160
<v Speaker 1>weird for the first time to see him in committee

0:29:44.360 --> 0:29:47.080
<v Speaker 1>questioning a nominee and it happens to be Supreme Court

0:29:47.120 --> 0:29:50.320
<v Speaker 1>nominee a year and two finds administration, and it just

0:29:50.760 --> 0:29:55.800
<v Speaker 1>is a huge contrast to the voting pattern that I've seen.

0:29:56.120 --> 0:30:00.160
<v Speaker 1>So it was really interesting and I'm just as curious

0:30:00.240 --> 0:30:04.320
<v Speaker 1>about the motive as everybody else. Thanks Madison. That's Bloomberg

0:30:04.400 --> 0:30:10.320
<v Speaker 1>Law reporter, Medicine alder impossible. Foods. Meat free burgers are

0:30:10.360 --> 0:30:14.640
<v Speaker 1>becoming a staple in US restaurants and grocery stores now

0:30:14.680 --> 0:30:18.200
<v Speaker 1>for the first time a lawsuit will test Impossible Foods

0:30:18.240 --> 0:30:23.280
<v Speaker 1>patented technology in court. My guest is Leonard Spenson of Birch, Stewart,

0:30:23.360 --> 0:30:28.360
<v Speaker 1>Colash and Birch. Tell me about this huge portfolio of

0:30:28.440 --> 0:30:33.560
<v Speaker 1>patents that Impossible Foods has. Well, they have a large portfolio.

0:30:34.240 --> 0:30:37.600
<v Speaker 1>I think it's still the biggest patent portfolio of any

0:30:37.680 --> 0:30:42.600
<v Speaker 1>of the players in this cultured meat laboratory meat market.

0:30:43.040 --> 0:30:48.440
<v Speaker 1>UH covers various different aspects of the product. They've got

0:30:48.520 --> 0:30:51.240
<v Speaker 1>patents that are directed in patent applications on that are

0:30:51.280 --> 0:30:54.600
<v Speaker 1>still pending, that are directed to a meat product itself,

0:30:55.160 --> 0:30:59.920
<v Speaker 1>two parts of the manufacturing process. I think what distinguishes

0:31:00.000 --> 0:31:03.680
<v Speaker 1>them from other companies is they have multiple patents and

0:31:03.760 --> 0:31:07.720
<v Speaker 1>patent application still pending directed to the meat product itself,

0:31:08.120 --> 0:31:13.000
<v Speaker 1>and it's all around the key aspect of their meat,

0:31:13.040 --> 0:31:17.640
<v Speaker 1>which is this scheam containing protein, and they claim they've

0:31:17.640 --> 0:31:21.480
<v Speaker 1>developed that, they've isolated the purpose for it, isolated the

0:31:21.520 --> 0:31:24.200
<v Speaker 1>compound and they're using it in their product. And that's

0:31:24.200 --> 0:31:28.120
<v Speaker 1>what gives the meat, this artificial or culture laboratory meat.

0:31:28.120 --> 0:31:30.360
<v Speaker 1>That's what gives it the texture and taste and smell

0:31:30.560 --> 0:31:34.720
<v Speaker 1>of real meat. So again that's what distinguishes them from

0:31:34.760 --> 0:31:37.320
<v Speaker 1>I think all the other players in the fielders they

0:31:37.360 --> 0:31:41.960
<v Speaker 1>have some patent protection around a key ingredient, and then

0:31:42.000 --> 0:31:46.720
<v Speaker 1>they can develop product patterns around that key ingredient. Is

0:31:46.760 --> 0:31:49.760
<v Speaker 1>that what you refer to as its crown jewel? Yes,

0:31:50.440 --> 0:31:53.240
<v Speaker 1>because if you if you compare their patent portfolio to

0:31:53.400 --> 0:31:56.280
<v Speaker 1>others sort of in the field, most of them are

0:31:56.600 --> 0:32:00.960
<v Speaker 1>focused on process parameters. There may be some particular techniques

0:32:01.000 --> 0:32:03.720
<v Speaker 1>that they used to make the meat. They may have

0:32:03.840 --> 0:32:06.720
<v Speaker 1>an attempt to get some claims to the products based

0:32:06.800 --> 0:32:10.280
<v Speaker 1>on a combination of particular ingredients. But I don't think

0:32:10.280 --> 0:32:13.440
<v Speaker 1>there's anybody else out there that has one special ingredient

0:32:13.520 --> 0:32:16.680
<v Speaker 1>that they think distinguishes them from everybody else and that

0:32:16.800 --> 0:32:20.720
<v Speaker 1>they can use to sort of protect their particular niche

0:32:20.720 --> 0:32:23.080
<v Speaker 1>in the market. I'd say this is the start of

0:32:23.200 --> 0:32:26.160
<v Speaker 1>the industry, right, it's growing now. How unusual is to

0:32:26.200 --> 0:32:29.160
<v Speaker 1>have a patent dispute at this time, I think it's

0:32:29.160 --> 0:32:34.200
<v Speaker 1>relatively unusual at this beginning of the technology or the

0:32:34.240 --> 0:32:37.200
<v Speaker 1>whole industry. Of course, there's lots of startup companies that

0:32:37.280 --> 0:32:43.560
<v Speaker 1>end up in litigation in various fields biotechnology, in pharmaceuticals,

0:32:43.600 --> 0:32:46.240
<v Speaker 1>but at the beginning of the industry itself. I think

0:32:46.280 --> 0:32:49.600
<v Speaker 1>this is kind of unusual if you're compared to let's say,

0:32:49.720 --> 0:32:52.360
<v Speaker 1>crisper technology. I don't know if you're familiar with that,

0:32:52.440 --> 0:32:55.680
<v Speaker 1>but that's one of the gene editing technologies that's pretty new,

0:32:55.960 --> 0:32:59.280
<v Speaker 1>and there are fights over who has the rights to

0:32:59.320 --> 0:33:02.760
<v Speaker 1>the key patents on that technology. Right now, they're fighting

0:33:02.800 --> 0:33:04.880
<v Speaker 1>in Europe and they're fighting in the United States over

0:33:04.880 --> 0:33:07.520
<v Speaker 1>who should get the patents. But you don't see patent

0:33:07.600 --> 0:33:14.239
<v Speaker 1>infringement litigations against each other. Saying for plant biotechnology, I

0:33:14.280 --> 0:33:17.240
<v Speaker 1>was involved in that way back when, and until recently

0:33:17.280 --> 0:33:20.160
<v Speaker 1>still planned by a technology that was used to genetically

0:33:20.200 --> 0:33:23.520
<v Speaker 1>engineer things like corn and soybean, and it took a

0:33:23.520 --> 0:33:26.240
<v Speaker 1>while before they got to where they were suing each

0:33:26.240 --> 0:33:30.440
<v Speaker 1>other over patents. I mean they were again trying to

0:33:31.280 --> 0:33:34.640
<v Speaker 1>get positions so that they would have each company would

0:33:34.640 --> 0:33:38.320
<v Speaker 1>have their own patent portfolio, but to actually have patent

0:33:38.320 --> 0:33:40.160
<v Speaker 1>infringe in suits took a while. Now, part of that

0:33:40.280 --> 0:33:44.240
<v Speaker 1>might be because in those technologies, the product that would

0:33:44.240 --> 0:33:48.520
<v Speaker 1>actually go out to the market required more government approval,

0:33:48.880 --> 0:33:50.560
<v Speaker 1>So like if it was a drug it would take

0:33:50.760 --> 0:33:55.480
<v Speaker 1>FDA approval, or if it was genetically engineered corn and soybean.

0:33:55.560 --> 0:33:58.760
<v Speaker 1>They were part of agricultural approvals that you had to

0:33:58.760 --> 0:34:02.360
<v Speaker 1>go through, so that may be delayed the time to market,

0:34:03.120 --> 0:34:07.520
<v Speaker 1>whereas these products they're not as regulated. There's some groups

0:34:07.520 --> 0:34:09.640
<v Speaker 1>they have to go through, but it's not as regulated,

0:34:09.680 --> 0:34:12.160
<v Speaker 1>so they're faster to market. And maybe that's by the

0:34:12.239 --> 0:34:14.840
<v Speaker 1>reason why you see the litigation so early in the

0:34:14.880 --> 0:34:17.640
<v Speaker 1>industry is because people are getting to the market pretty quickly,

0:34:18.360 --> 0:34:21.280
<v Speaker 1>and then people who have patent positions want to protect

0:34:21.280 --> 0:34:25.480
<v Speaker 1>those markets. They're suing a competitor mo Chief food Works

0:34:25.680 --> 0:34:28.680
<v Speaker 1>for infringement. Tell us a little about the lawsuit. Well,

0:34:28.840 --> 0:34:32.879
<v Speaker 1>Possible Foods has, like we discussed before, they have a

0:34:32.880 --> 0:34:37.960
<v Speaker 1>pretty wide ranging portfolio of patents, and they sued on

0:34:37.960 --> 0:34:41.399
<v Speaker 1>one particular patent. It covers the claims are to a

0:34:41.440 --> 0:34:45.040
<v Speaker 1>beef replica product and it contains a certain percentage of

0:34:45.040 --> 0:34:49.160
<v Speaker 1>the heat containing protein, and they sued Moti Food Works,

0:34:49.160 --> 0:34:52.160
<v Speaker 1>who has just recently come out with a products started

0:34:52.160 --> 0:34:56.320
<v Speaker 1>promoting and commercially selling the product, and they sued Motif

0:34:56.880 --> 0:35:01.120
<v Speaker 1>for infringement of this one patent legend that it contains

0:35:01.120 --> 0:35:04.160
<v Speaker 1>a heat containing protein and it contains the other ingredients,

0:35:04.160 --> 0:35:07.600
<v Speaker 1>but really focusing on this team containing protein, and part

0:35:07.600 --> 0:35:12.279
<v Speaker 1>of the evidence that they submitted with their complaint were

0:35:12.360 --> 0:35:17.040
<v Speaker 1>quotes just from the website of Motif food Works showing

0:35:17.160 --> 0:35:21.440
<v Speaker 1>that they're promoting their product as having a heat containing protein.

0:35:21.680 --> 0:35:25.960
<v Speaker 1>And then Impossible Foods also enclosed copies of documents from

0:35:26.120 --> 0:35:32.799
<v Speaker 1>the regulatory paperwork that Motif filed showing that in that paperwork,

0:35:32.960 --> 0:35:36.000
<v Speaker 1>according to the Impossible Foods, they admitted that they contained

0:35:36.880 --> 0:35:41.279
<v Speaker 1>a heam compound similar to we're the same as which

0:35:41.320 --> 0:35:44.560
<v Speaker 1>covered by the patent of Impossible Foods. So it's a

0:35:44.600 --> 0:35:48.680
<v Speaker 1>straight patent infringement student it's pretty standard type of suit.

0:35:49.120 --> 0:35:53.320
<v Speaker 1>How expensive is this kind of patent litigation? Patent litigation

0:35:53.400 --> 0:35:56.600
<v Speaker 1>is expensive, yes, so that's also maybe part of the

0:35:56.600 --> 0:35:58.600
<v Speaker 1>reason why you don't see it in the young industry,

0:35:58.640 --> 0:36:03.000
<v Speaker 1>as it's expensive. But Impossible Foods is pretty well financed.

0:36:03.400 --> 0:36:07.479
<v Speaker 1>You can just read from the industry newsletters and such

0:36:07.560 --> 0:36:10.600
<v Speaker 1>that they're they're well financed, so I guess they're able

0:36:10.640 --> 0:36:13.160
<v Speaker 1>to afford it, and they hired a big time law firm,

0:36:13.239 --> 0:36:16.160
<v Speaker 1>well known law firms, so it's not cheaper than bring

0:36:16.200 --> 0:36:19.359
<v Speaker 1>a lawsuits like this. If they win, what effect does

0:36:19.400 --> 0:36:22.800
<v Speaker 1>it have? If they win, they will get money damages,

0:36:23.120 --> 0:36:26.120
<v Speaker 1>which at this stage probably would not be that huge

0:36:26.200 --> 0:36:29.680
<v Speaker 1>of an amount of money total, because Motif is just

0:36:29.719 --> 0:36:32.440
<v Speaker 1>getting into the markets. There's probably not that many sales.

0:36:32.480 --> 0:36:35.000
<v Speaker 1>So you might even question at the beginning whether the

0:36:35.040 --> 0:36:39.279
<v Speaker 1>amount of damages that Impossible Foods could get, whether the

0:36:39.400 --> 0:36:42.200
<v Speaker 1>amount of damages would equal the cost of bringing the lawsuit.

0:36:42.280 --> 0:36:45.920
<v Speaker 1>But they could potentially also get an injunction to stop

0:36:46.480 --> 0:36:50.640
<v Speaker 1>Motif food Works from selling their products. I mean, does

0:36:50.680 --> 0:36:53.600
<v Speaker 1>it have an effect on their position in the industry,

0:36:53.920 --> 0:36:58.600
<v Speaker 1>on the validity of their patents? Is there any broad effect? Well,

0:36:58.760 --> 0:37:01.080
<v Speaker 1>does heam containing comp and a sort of the crown

0:37:01.200 --> 0:37:03.360
<v Speaker 1>jewel for Impossible foods, And I'm sure they want to

0:37:03.360 --> 0:37:07.560
<v Speaker 1>stop anybody that even alleges that they're using a stimilar

0:37:07.640 --> 0:37:10.120
<v Speaker 1>kind of compound. So it would at least send a

0:37:10.160 --> 0:37:13.360
<v Speaker 1>message out to the industry that they are going to

0:37:13.400 --> 0:37:17.040
<v Speaker 1>be aggressive and protecting their patent portfolio, and they're going

0:37:17.080 --> 0:37:20.360
<v Speaker 1>to be aggressive and going after anybody that is using

0:37:20.360 --> 0:37:22.720
<v Speaker 1>a compound that they think is covered by their patents.

0:37:22.719 --> 0:37:25.080
<v Speaker 1>So yes, would have that kind of an effect. I'm

0:37:25.080 --> 0:37:27.560
<v Speaker 1>sure it would cause young companies to pause, because a

0:37:27.600 --> 0:37:30.800
<v Speaker 1>young company getting food for patent infringement and it's expensive

0:37:30.800 --> 0:37:33.279
<v Speaker 1>for them to defend themselves also, so it's going to

0:37:33.360 --> 0:37:36.800
<v Speaker 1>give them some pause. How would it affect Impossible Foods

0:37:37.480 --> 0:37:41.320
<v Speaker 1>patent portfolio, and that's hard to say. Patent portfolio Impossible

0:37:41.360 --> 0:37:45.880
<v Speaker 1>Foods right now has not been challenged, So it would

0:37:45.880 --> 0:37:50.640
<v Speaker 1>provide an opportunity for somebody to challenge whether the Impossible

0:37:50.680 --> 0:37:53.600
<v Speaker 1>Foods patents are too broad or whether they really are valid.

0:37:54.000 --> 0:37:58.439
<v Speaker 1>So potentially have that effect, but that would also take

0:37:58.520 --> 0:38:01.840
<v Speaker 1>motif having enough need to fight that battle. There's a

0:38:01.880 --> 0:38:05.319
<v Speaker 1>related patent of impossible foods right now in Europe that's

0:38:05.400 --> 0:38:10.560
<v Speaker 1>under opposition. It's not the corresponding European patent to the

0:38:10.560 --> 0:38:14.160
<v Speaker 1>one that's in the Impossible Foods lawsuit, but it's related.

0:38:14.200 --> 0:38:15.600
<v Speaker 1>It's I don't know what you might want to call

0:38:15.600 --> 0:38:19.440
<v Speaker 1>it a cousin. They're connected through a complicated chain of

0:38:19.600 --> 0:38:25.279
<v Speaker 1>patent applications, and that patent in Europe is under opposition,

0:38:25.320 --> 0:38:29.439
<v Speaker 1>which means the European patent granted and some company, through

0:38:29.440 --> 0:38:31.960
<v Speaker 1>a law firm, filed an opposition and we just don't

0:38:32.000 --> 0:38:34.000
<v Speaker 1>know what company it is because they thought it just

0:38:34.080 --> 0:38:37.280
<v Speaker 1>through the law firm and they attacked the European patent

0:38:37.440 --> 0:38:42.279
<v Speaker 1>for being an unpatentable over prior art. It's not saying

0:38:42.280 --> 0:38:46.000
<v Speaker 1>it's not novel, it's it's obvious and for some reasons

0:38:46.000 --> 0:38:50.680
<v Speaker 1>relating to claim terminology, and the preliminary opinion of the

0:38:50.719 --> 0:38:54.760
<v Speaker 1>European Patent Office was that the claims were not valid,

0:38:54.960 --> 0:38:57.880
<v Speaker 1>that they were not novel, and that they were obvious

0:38:57.960 --> 0:39:00.520
<v Speaker 1>over a bunch of prior art. That was it. Now,

0:39:00.520 --> 0:39:03.640
<v Speaker 1>whether that prior art has any effect on the U.

0:39:03.719 --> 0:39:06.120
<v Speaker 1>S patent, I don't know. I haven't studied it carefully.

0:39:06.120 --> 0:39:10.319
<v Speaker 1>The European patent is somewhat broader than the U. S

0:39:10.360 --> 0:39:14.319
<v Speaker 1>patent o im Possible Foods, but you can see that

0:39:14.400 --> 0:39:17.960
<v Speaker 1>there's potentially a similar line of attack in the United

0:39:17.960 --> 0:39:20.520
<v Speaker 1>States that could be used, similar to what was used

0:39:20.520 --> 0:39:23.960
<v Speaker 1>against that European pattern. The European opposition hasn't ended yet.

0:39:24.040 --> 0:39:26.520
<v Speaker 1>The evidence is pretty much already there. So if some

0:39:26.719 --> 0:39:30.040
<v Speaker 1>US company like motif I wanted to see if there

0:39:30.160 --> 0:39:33.040
<v Speaker 1>was a possible line of attack using the evidence that

0:39:33.120 --> 0:39:38.520
<v Speaker 1>was submitted in Europe that's already available. If Impossible Foods loses,

0:39:39.200 --> 0:39:43.839
<v Speaker 1>do its patents become questionable? Are there more lawsuits if

0:39:43.880 --> 0:39:46.560
<v Speaker 1>they lose? The case depends on the grounds they'd lose

0:39:46.560 --> 0:39:49.880
<v Speaker 1>the case. They could lose it because studuled jury, the

0:39:50.000 --> 0:39:54.040
<v Speaker 1>court determines that the motif product doesn't really infringe, it's

0:39:54.080 --> 0:39:57.600
<v Speaker 1>just not covered by the Impossible Foods patent. So in

0:39:57.640 --> 0:40:00.480
<v Speaker 1>that respect it would have some impact, but not serious

0:40:00.560 --> 0:40:03.560
<v Speaker 1>impact on the rest of portfolio. But suppose the court

0:40:03.600 --> 0:40:08.120
<v Speaker 1>finds that the Impossible Foods patent is invalid because it

0:40:08.200 --> 0:40:12.719
<v Speaker 1>covers prioritis either anticipated by or it's obvious over prior art.

0:40:12.800 --> 0:40:15.080
<v Speaker 1>I think it's not down because of prior art. Maybe

0:40:15.160 --> 0:40:18.759
<v Speaker 1>that prior art is potentially impactful against the other parts

0:40:18.760 --> 0:40:21.960
<v Speaker 1>of the portfolio of Impossible Foods because the current patent

0:40:22.120 --> 0:40:25.040
<v Speaker 1>that's in the lawsuit is drafted in one way and

0:40:25.080 --> 0:40:27.520
<v Speaker 1>that focuses on certain elements. So the prior arch could

0:40:27.600 --> 0:40:31.040
<v Speaker 1>knock out that patent, and maybe that priority would be

0:40:31.120 --> 0:40:34.359
<v Speaker 1>useful to attack other claims that other patterns owned by

0:40:34.360 --> 0:40:37.520
<v Speaker 1>Impossible Foods. But their portfolio is pretty broad. It might

0:40:37.520 --> 0:40:39.239
<v Speaker 1>not have that much of an impact because they have

0:40:39.280 --> 0:40:41.880
<v Speaker 1>a lot of different patents claiming the subject matter and

0:40:41.960 --> 0:40:44.960
<v Speaker 1>lots of different ways. But this is one of the

0:40:45.000 --> 0:40:49.240
<v Speaker 1>broader ones, I think, to the product itself. So potentially

0:40:49.280 --> 0:40:51.560
<v Speaker 1>it could have an impact, but they have a lot

0:40:51.600 --> 0:40:54.680
<v Speaker 1>of other patents in their portfolio that would still be standing.

0:40:54.960 --> 0:40:57.440
<v Speaker 1>Thanks so much for being on the show. That's Leonard's

0:40:57.480 --> 0:41:00.800
<v Speaker 1>Fanson of Bert Stewart, Colash and Bert. And that's it

0:41:00.960 --> 0:41:03.600
<v Speaker 1>for the edition of the Bloomberg Law Show. Remember you

0:41:03.600 --> 0:41:06.040
<v Speaker 1>can always at the latest legal news on our Bloomberg

0:41:06.120 --> 0:41:09.359
<v Speaker 1>Law Podcast wherever you get your favorite podcasts. I'm June

0:41:09.480 --> 0:41:11.400
<v Speaker 1>Russo and you're listening to Bloomberg