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Massacre Suspect to be Charged; Dow Trading above 13,000; Apple, Samsung Patent Trial of the Century; E-Mail Leads to Huge Network of Child Porn Spanning the Globe; Bill Clinton Front & Center at DNC.

Aired July 30, 2012 - 11:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

KYRA PHILLIPS, CNN ANCHOR: And hello everyone. I'm Kyra Phillips. It's 11:00 on the East Coast, 8:00 on the West. We're 30 minutes away from another court appearance by James Egan Holmes, and this is a big one. Formal charges in the Colorado theater rampage.

After a million dollar breakfast in Jerusalem, Mitt Romney looks for solidarity in Poland.

And look who is making waves in London. Two American swimmers in search of triumph, payback, and history.

We begin with that critical step in the state of Colorado versus with James Holmes. Ten days after the would-be neuroscientist allegedly shot up a movie theater premiere in Aurora, Colorado, he's back in court to be formally charged.

But unlike the memorable hearing a week ago, today's session is off-limits to cameras.

CNN's Jim Spellman joining me from outside the courthouse there in Arapahoe County, so, Jim, what do we expect to happen exactly, later this hour.

JIM SPELLMAN, CNN CORRESPONDENT: Sure, within the next 30 minutes, Kyra, James Holmes will make his way from the jail right here through an underground tunnel into the courthouse where he will hear the official charges against him.

We know from court filings, at a minimum, 12 counts of first- degree murder, numerous counts of attempted first-degree murder and other charges likely around that booby-trapped apartment that he allegedly left behind when he went to the movie theater.

Now, in addition to lawyers, prosecutors, and Holmes showing up here, people who were in that theater that night have arrived here. They want to make sure that their voice is heard. Take a listen.

(BEGIN VIDEO CLIP)

DON LADER, VICTIM'S RELATIVE: We're here to, we feel, to represent strength that the community has. We're here to represent a lack of fear of what this individual tried to cause. We're trying to show with our presence to the community that, yes, he's here, but we're here also. The man was a coward, we're here to show we have strength and that we're willing to fight back.

(END VIDEO CLIP)

SPELLMAN: At some point in the near future, also, we anticipate that the defense will ask for a competency hearing to see whether he is mentally well enough to go through a trial. Kyra?

PHILLIPS: So, the judge has imposed this media blackout -- no cameras in the courtroom. Why do you think the judge decided to do that?

SPELLMAN: Well, you know, he actually laid out these rules before the previous hearing and he said he would allow cameras in for the initial appearance that we saw last week and for the arraignment. That'll come in a couple days.

Otherwise, there's going to be too many hearings, so I just think he's trying to find a balance between this huge media circus here and letting people be informed.

But perhaps more significantly than having a TV camera in the courtroom, almost all of the pertinent documents in this case are sealed. And later today, news organizations, including CNN, will petition to court to have some of these documents unsealed so the public can get a better look at what's going on in this case, Kyra.

PHILLIPS: And a lot coming forward about his mental status, his mental health. We had many conversations last week about whether he was suffering from mental illness. We're learning more about this psychiatrist that he was seeing, Jim.

What more do we know about this parcel that Holmes had mailed his psychiatrist and could we learn more about this?

SPELLMAN: Last Monday, three days after the shooting at a mail room at the University of Colorado, this package arrived, containing a notebook addressed to a psychiatrist Holmes was seeing. That much we know.

The defense is saying, look, this is privileged communications between a doctor and a patient. We want to have that. The judge will decide on that part of this today.

It tells us that he was seeing a psychiatrist, but it doesn't tell us how long he was seeing her or why he was seeing her. So, we still have so many more questions about that and what degree of mental health care, Kyra, he may have been getting leading up to this.

And, of course, the big question everybody wants to know is, was there any kind of forewarning about this? We still don't have the answers to any of those questions, Kyra.

PHILLIPS: All right, out Jim Spellman, thanks so much. We'll talk more about that, though, and the legal ins-and-outs with attorney and CNN contributor Paul Callan. That'll be at the bottom of the hour.

Well, Mitt Romney's world tour moved into Poland today. The stop follows a day-and-a-half in Israel and a couple of days in London for the Olympics. The Republican presidential candidate is meeting with Polish leaders and visiting a World war II memorial before heading to Warsaw.

CNN's Sara Sidner in Jerusalem. So, Sara, Romney made some news there, mostly with talk about Iran. Let's talk about why he made the headlines.

SARA SIDNER, CNN INTERNATIONAL CORRESPONDENT: Well, certainly, Mr. Romney had some tough talks on Iran. He also made very, very clear that he fully supports Israel. He said that he would respect Israel's decision to defend itself, even if that was that Israel decided to do a pre-emptive strike on Iran to keep Iran from building a nuclear weapon.

He also talked about the fact that he believes the United States should never openly criticize Israel, that it should treat Israel as one of its closest allies, especially because what is happening in the region, including what's happening in Syria, what's happened in Egypt, and what is happening with Iran.

Mr. Romney being very clear that he believes, no matter what Iran denies, that Iran is working towards nuclear weapon capability.

(BEGIN VIDEO CLIP)

MITT ROMNEY, REPUBLICAN PRESIDENTIAL CANDIDATE: We must not delude ourselves into thinking containment is an option. We must lead the effort to prevent Iran from building and possessing nuclear weapons capability.

We should employ any and all measures to dissuade the Iranian regime from its nuclear course. No options should be excluded.

We recognize Israel's right to defend itself and that it is right for America to stand with you.

(END VIDEO CLIP)

PHILLIPS: Now, just to give you some idea and, obviously, President Obama also has a stance on Israel and Iran and what has happened over this past few weeks is there have been a large number of people from the Obama administration coming into Israel in what many people deem the "don't bomb Iran" tour where the Obama administration has been trying to calm the tension between Iran and Israel, trying to get Israel to back away from the idea of a pre-emptive strike and, instead, let diplomatic maneuvers, as well as the increased sanctions, run their course.

Mitt Romney trying to differentiate himself in some ways, but he did back down a little. He certainly stopped short of saying that he would endorse a strike by Israel on Iran.

But some tough talk. He also talked about Jerusalem and made some very controversial statements, saying that he believed Jerusalem was the capital of Israel, that being controversy because no sitting president since 1967 has actually recognized Jerusalem as Israel's capital.

The Palestinians believe that East Jerusalem is their capital in a two-state solution, so the Palestinians pretty upset with what Romney had to say when he was standing just outside the wall of the Old City.

PHILLIPS: Sara Sidner, thanks so much.

And later today, Romney will meet with former Polish president, Lech Walesa. Remember that Walesa was also the leader of the Solidarity movement which famously unionized the shipyards in Poland.

On the campaign trail in the U.S., Romney has blamed unions for costing American jobs and has accused President Obama of being in the pockets of union bosses.

Well, one of the other issues that Mitt Romney stirred up in Israel was the location of the U.S. embassy. Right now, it's in Tel Aviv and not Jerusalem. He talked about moving the embassy during his speech and, later, when he spoke down with our Wolf Blitzer.

(BEGIN VIDEO CLIP)

WOLF BLITZER, HOST, "THE SITUATION ROOM": Do you consider Jerusalem to be the capital of Israel?

ROMNEY: Yes, of course, a nation has the capacity to choose its own capital city, and Jerusalem is Israel's capital.

BLITZER: If you become president, would you move the U.S. embassy from Tel Aviv to Jerusalem?

ROMNEY: I think it's long been the policy of our country to ultimately have our embassy in the nation's capital, in Jerusalem. The decision to actually make a move is one, if I were president, I would want to take in consultation with the leadership of the government, which exists at that time.

So, I would follow the same policy we have in the past. Our embassy would be in the capital, but that's -- the timing of that is something I'd want to work out with the government.

(END VIDEO CLIP)

PHILLIPS: Now, Israelis and Palestinians both claim that Jerusalem is the capital, but what's interesting is that there's a U.S. law that states Jerusalem is the capital and that the embassy should be there, but no president has ever enforced that law.

You can see more of Wolf Blitzer's interview with Mitt Romney later today in "The Situation Room."

So what are Democrats saying about Romney's trip? Here's Obama campaign adviser, Robert Gibbs.

(BEGIN VIDEO CLIP)

ROBERT GIBBS, OBAMA CAMPAIGN ADVISER: Mitt Romney wondered aloud whether London was ready for the Olympics and I think it's clear that voters in this country wonder aloud whether Mitt Romney is ready for the world.

And I think the world is not yet ready for Mitt Romney. I think there's -- literally to go overseas, stand in the country of our strongest ally in the Olympics that they've been preparing years for and question whether or not they're ready, does make you wonder whether or not he's ready to be commander-in-chief.

(END VIDEO CLIP)

PHILLIPS: So what do the American people really think? Well, our latest poll of polls shows Obama out front by four points with 99 days left to go until election day.

(COMMERCIAL BREAK)

PHILLIPS: And it's day six of the summer games. Are you getting into the Olympic spirit yet?

Here's a few of the events that you can watch today -- the men's gymnastics team final, the U.S.'s toughest competition, China and Japan; women's indoor volleyball, the U.S. faces off against Brazil in a rematch of the 2008 gold medal game; and in swimming, all eyes will be on our Missy "The Missile" Franklin in the women's 200-freestyle prelims and the women's 100-backstroke.

Well, maybe all eyes, in case you're seeing a big glare from that shiny grill that Ryan Lochte was sporting. Zain Verjee, what is up with our swimmer here?

ZAIN VERJEE, CNN CORRESPONDENT: Yes, I know. You know, he has a fabulous smile, a nice white grin, and then you take a closer look, Kyra, and you've got that grill there. You've got the stars and the stripes. You've got some diamond-studded things in his teeth there. He looks pretty cool, I think.

You know, if you just look, you can see it was on the top row. They wouldn't give him a medal until it was out, but as soon as he got the gold, he put it back in. So I don't know whether that's cool or not. I think he's too cool for school.

You mentioned Missy Franklin, by the way, Kyra, and I just found out something interesting about her. Now, if you look at my shoes here, I wear -- Scotty, just pass me my shoe. No, my shoe. It's too early for that. No, my shoe.

Kyra, this is a size 10. Missy Franklin has size 13 feet, so she's got real flippers, basically. So, hopefully she'll be able to win.

So this is my idea of the grill. I don't think you're laughing about the shoe, are you, Kyra?

PHILLIPS: I actually am digging the high-tops there. It's so you, Zain. And, if people here really knew they would come rolling in here with her big -- her skis, we should say, even though we loved her shoes, we could never borrow them.

OK, so we've got your fabulous high-tops. We've Ryan's stunning patriotic grill. Let's talk, though, about him and Michael Phelps. A lot of people watching these two. How about you? What are you paying attention to?

VERJEE: Yeah, I mean, what was interesting, as I interviewed Ryan Lochte's mom a couple days ago, and she said they're actually really close friends and they're sharing a room together in the Olympic village.

And, you know, they're great friends and they hang out and they play cards together, but when it comes down to the swimming pool, you know, the game is on.

So, they're great competitors, but Ryan Lochte is certainly looking a lot stronger than Michael Phelps who's proving that he's actually human, Kyra.

PHILLIPS: Well, we had little heart -- speaking of human, we had a little heartbreak, watching our women's gymnast, Jordyn Wieber. You know, we profiled her last week and we were all paying close attention to this pretty remarkable young lady.

VERJEE: I know. It was really disappointing. She just left the place in tears, actually. She doesn't even want to talk to journalists or anyone. She issued a statement later and said she was disappointed.

But basically what happened, she just kind of messed up, mainly on the floor exercised. She had a wobbly handstand on the uneven bars. She just didn't perform well.

So, everyone was stunned, especially the rest of her team members who really thought that she'd manage to grab gold.

PHILLIPS: All right, well, we've got to wrap up with the opening ceremony and this mystery woman. We were laughing so hard today because there she is, just, you know, cruising with the posse there like nobody's business, like she belongs, smiling from ear to ear.

VERJEE: I know. I know. Think of it, imagine if, you know, Kyra Phillips just wandered onto the pitch when the U.S. team finally came out with all of the stars. And then everyone was just talking about this redhead and that was it, you know.

But yes, that's basically what happened. The woman came in and nobody knew who she was. She was basically someone who was taking part in the Olympic ceremonies.

And I thought, if she wanted to blend in, Kyra, she could have at least maybe worn a yellow sari or something, but there she was in red and turquoise.

PHILLIPS: Do we know anything about her? Do we know who she is or ...

VERJEE: Yeah, her name is Madura, according to the Indian press and she's from Bangalore and she just got really excited and, you know, you can't blame her, but that was a little embarrassing, ten seconds of fame around the world and she's going to be getting in trouble. Next thing we know, she'll have a grill.

PHILLIPS: And be wearing your high-tops. Zain Verjee, thank you so much.

VERJEE: Thanks, Kyra.

PHILLIPS: Well, as you watch the games, you've probably notice a lot of empty seats at certain events. Well, it's triggered a lot of angry response from fans who actually missed out on getting tickets.

Organizers say that the problem is due to officials, athletes, sponsors, and the media who aren't using their accredited seating. Well, now, British soldiers are using some of the seats after they finish their security shifts and organizers also are releasing more tickets for sale that were returned by sport federations.

Well, coming up on "Pier Morgan Tonight," Piers is going to talk with Olympic swimmer Michael Phelps about his grueling training, his life outside the pool and how he feels about representing the U.S. at the games.

(BEGIN VIDEO CLIP)

MICHAEL PHELPS, U.S. OLYMPIC SWIMMER: You know, I think, you know, to be -- for me, to be an American is, you know, it's one of the greatest things in the world for me. For me, just because I've been able to grow up with everything, the freedom.

You know, in my eyes, this is the greatest country in the world. And, you know, throughout my career, I've been able to, you know, travel overseas and to represent my country the best way that I could.

And, you know, be able to wear the Stars-and-Stripes when you step up onto the box or, you know, when you step off of an airplane or, you know, when you hear the national anthem play, it's one of the greatest feelings in the world because you know that there are people at home who are supporting you and watching you.

(END VIDEO CLIP)

PHILLIPS: And you can see the rest of Michael Phelps interview with "Piers Morgan Tonight," 9:00 p.m. Eastern, right here on CNN.

(COMMERCIAL BREAK)

PHILLIPS: Well, in Syria, more signs that President Bashar al- Assad's grip on the country may be slipping and the focus right now is on the fight for Syria's largest city, Aleppo. Just on the outskirts, rebels have won control of a government military base and, with it, gained some heavy arsenal.

But right now the city is seeing a mass exodus. The U.N. says that more than 200,000 people have fled in just two days.

Defense Secretary Leon Panetta, who's on a tour of the Middle East, says this is about the battle for Aleppo.

(BEGIN VIDEO CLIP)

LEON PANETTA, SECRETARY OF DEFENSE: If they continue this kind of tragic attack on their own people in Aleppo, I think it ultimately will be a nail in Assad's coffin.

(END VIDEO CLIP)

PHILLIPS: Let's get right to our Mohammed Jamjoom. He's monitoring all the latest developments. So, Mo, let's talk about his military base that rebels have captured. Put into perspective how crucial that is.

MOHAMMED JAMJOOM, CNN CORRESPONDENT: Hi, Kyra. It's important, strategically, and it's important, symbolically.

Now, strategically, as this battle for Aleppo, Syria's largest city and commercial hub, as it intensifies and goes on, you have this base that is on the northern outskirts of Aleppo. Strategically, it's important because it's the last Syrian regime outpost on the road to the northern entrance to Aleppo. So, that's why it's important for that reason.

Symbolically, it's important because right now the rebels are engaged in this fight with the Syrian regime to try to control Aleppo. Many people have been surprised that the rebels would be able to make as many inroads as they did, to hold the neighborhoods that they have been, even while these clashes are going on.

So, the fact that now they control this military base, this seems to be a big victory for them and it really gives them a big boost of morale at a time when they are fearful of the onslaught that they are facing by the Syrian regime.

Because when all is said and done, they are really outgunned by the military might that the Syrian regime has, Kyra.

PHILLIPS: So put it in perspective now. We're talking about this mass exodus of people. We're talking about the number of military of Assad's regime defecting. Can you put it into perspective because there's conflicting reports on who actually has the upper hand right now? JAMJOOM: Well, that's right. There's been confusion as far as what we're hearing on the ground. Syrian state television announced earlier that there were neighborhoods that had been held by the rebels, neighborhoods like Salahadeen that were now under the control of the Syrian military.

But the Free Syrian Army rebels that we've been speaking with are saying, no, that's not the case, that they've been able to repel these forces that are trying to advance onto those neighborhoods.

In the meantime, there's a humanitarian crisis that's going on. The U.N. has said that about 200,000 people have fled Aleppo in the last three days. We've had reports of families, men, women, and children, up to six people, getting on motorcycles, trying to get out of the city, trying to get to the countryside or across the border to Turkey because it's so bad.

I've spoken to residents there today. They say there are still fuel shortages. There are still food shortages. They have no wheat. They have no bread. There are families that are huddled in public buildings, trying to make sure they're safe from the onslaught, from the consistent and continuous shelling that's been going on.

All of this happening while the fight for Aleppo is still going on. It's a very dire and critical situation there and one side is saying, hey, we have control of the neighborhoods, and the Syrian regime is saying, no, we've cleared these neighborhoods of those terrorists.

What we know is the fierce clashes continue, even at this hour. Kyra?

PHILLIPS: Mohammed Jamjoom, thank you so much.

And the U.N. now estimates that nearly 17,000 people have died since last March when the revolt in Syria began.

All right, let's talk about India. One of the worst blackouts in a decade. More than 350 million people across Northern India are in the dark and it's sweltering heat. The area's power grid, apparently crashed earlier today, stalling hundreds of trains and creating a traffic nightmare on the streets.

Hospitals and airports are reportedly running on backup generators, but many backup power systems have run out. India's power minister has now ordered an investigation into what caused the region's entire power grid to fail, but the country's top business lobby says that this is a reminder of India's need to upgrade its power infrastructure as energy demands increase.

(COMMERCIAL BREAK)

PHILLIPS: Well, any minute now, the man accused of killing 12 moviegoers and wounding dozens more is going to due to hear the charges against him. James Eagan Holmes is in court for the second time since his arrest, but this time, news cameras are waiting outside.

The judge has clamped down on media coverage, gagging the lawyers and sealing the case file. New organizations are appealing. Holmes is not expected to enter a plea nor are prosecutors expected to announce whether they will seek the death penalty. We do expect talk of the suspect's mental competency, however, and Holmes' lawyers will try to get back a letter he mailed to his psychiatrist.

Paul Callan joining me now with his insights. He's a former New York prosecutor, now a civil and criminal trial lawyer and CNN contributor. Boy, lots to talk about here, Paul.

PAUL CALLAN, DEFENSE ATTORNEY: An awful lot.

PHILLIPS: Yeah. Why don't we -- do you think this case hinges right now on the question of his sanity?

CALLAN: Oh, it most definitely does because, let's face it, the evidence against him is overwhelming. There's, you know, a theater full of witnesses and he's caught by the police and they have evidence about the apartment being wired, bombs set up.

So, you know, factually, I think it's not going to be hard to prove he committed this act, so the only real issue is, was he sane? And we'll see that today. We'll probably hear talk about whether he's even competent to stand trial. That's the first issue that you have to face in court.

PHILLIPS: OK. Well, let's talk about his psychiatric treatment and how this could play a factor in the trial. You know, we were talking a lot in the past couple weeks about his mental state. Could he be suffering from mental illness?

You know, there's a lot of reporting that has been done outside of CNN about that and his psychiatrist. What do you find interesting? What are you paying attention to with regard to the psychiatrist he was seeing and what we could see as pretty crucial elements as we go forward in his trial?

CALLAN: Well, you know, Kyra, there are lots of interesting issues here. You've got the psychiatrist who was supposedly treating him at the University of Colorado, works for the university. She treats graduate students.

Interestingly, her specialty field is schizophrenia. I say interesting because there's a lot of reporting that indicate that people who suffer from mental illness sometimes see that mental illness become very, very severe some time in their 20s. And sometimes violent incidents occur with schizophrenics. I'm not saying that happens with all schizophrenics, but it's a widely reported phenomena. So she's an expert in schizophrenia. If he's a schizophrenic, that's an intriguing issue because it will probably, most certainly indicate an insanity defense in the case.

PHILLIPS: Is it possible she could have been giving him medication? CALLAN: It's quite possible, and of course, there was a lot of talk as to whether he was medicated at his last court appearance because he looked groggy and sleepy. I was of the opinion that the authorities probably had not given him drugs, but who knows. He may have taken the drugs shortly before the incident, if he was on drugs. If he had been diagnosed at suffering from some form of severe mental illness, he might be on heavy duty psychotropic or other medications. That remains to be seen.

PHILLIPS: Let's talk about how medical privilege plays into all that, because we have been talking about this package that he sent her prior to that fateful Friday.

CALLAN: Another fascinating question, Kyra, because a doctor, of course, when the doctor communicates with a patient -- and psychiatrists are doctors, they're medical doctors -- there's a privilege that attaches. Anything you say to the psychiatrist, they can never reveal it to anyone, and even the police, even their spouse, even without your permission. But there's one exception. If you reveal to a psychiatrist that you intend to hurt somebody else, they have an ethical, moral, and legal obligation to warn the potential victim.

Now, getting back to the fact pattern here, was he telling the psychiatrist in this package that he intended to do harm to other people? Obviously, if the psychiatrist knew about this, she would have had an obligation to warn. But the talk is, in the earlier reports are that maybe the psychiatrist didn't even see the material before the attack. Under those circumstances, I think what was in the package probably would remain shielded by the medical privilege, and we won't see it, law enforcement won't see it, but that's going to be argued in court.

PHILLIPS: You tend to wonder, in sessions, that he had with his psychiatrist prior to that, what was said, what was discussed. Did he ever, you know, threaten those types of actions prior?

CALLAN: You know, I have seen this in many cases we handle. My law firm defends psychiatrists in malpractice cases. A lot of times they get sued for situations where a patient commits suicide or a patient hurts somebody else, and the claim is the psychiatrist had a duty to have the person hospitalized for their own protection, for society's protection, and didn't act. So this is going to be a big issue in the trial. Was something said in those sessions that would have made a psychiatrist seek hospitalization for Holmes?

PHILLIPS: That's going to be fascinating to watch. I know Colorado has executed only one inmate since 1967, so it will be interesting to see if prosecutors will seek the death penalty.

We'll talk about all of this, Paul, throughout the day today, and in the weeks forward. Thanks, Paul, so much.

CALLAN: Nice being with you, as always, Carol.

PHILLIPS: Pleasure. We have a reporter in the courtroom, so you're going to get all the news from today's hearing as soon as it's over.

Even after an Aurora-style rampage, many American consider the Second Amendment's right to bear arms absolute. Antonin Scalia isn't one of them. A conservative bulwark on the highest court of the land, Scalia said the Constitution writers themselves put limits on what kinds of weapons that Americans should be allowed to own. He spoke yesterday on FOX News.

(BEGIN VIDEO CLIP)

ANTONIN SCALIA, U.S. SUPREME COURT JUSTICE: Obviously, the amendment does not apply to arms that cannot be hand carried. Its' to keep and bear, so it doesn't apply to cannons. I supposed there are hand-held rocket launchers that can bring down airplanes that will have to be -- it will have to be decided.

(END VIDEO CLIP)

PHILLIPS: Scalia is the longest-serving member of the current Supreme Court.

(COMMERCIAL BREAK)

PHILLIPS: We're keeping a close eye on the market for you this morning. Right now, Dow Industrials, looks like, are down about 20 points. This comes after a key day on Friday when the Dow finished above the 13,000 mark for the first time since May.

Alison Kosik at the New York Stock Exchange.

We had a good Friday, shall we say, and a little sketchy today.

ALISON KOSIK, CNN CORRESPONDENT: A little sketchy today. Just makes you realize that it's just 13,000. It's just a nice, warm, fuzzy, round number. There are hopes today that the world central banks are going to take some sort of step this week to stimulate the economy. Not just the Fed is meeting this week, but the ECB in Europe is also going to be meeting.

What everybody wants to know is what does 13,000 really mean to you and me? Mostly, it's just a psychological level. When people see the Dow pass the big, round levels, it makes people feel more confident, more likely to invest. We're on the right track, but the health of the stock market and the economy itself don't necessarily going hand in hand. You look at the jobs market. Hiring is still slow. Economic growth is still slow along with that huge list that keeps growing and growing about the problems in Europe. So we still need to see a lot of things resolved for the upper trend to continue. But 13,000 isn't all that bad, is it, Kyra?

PHILLIPS: No, it's not. Let's talk about Apple and Samsung, as being called the patent trial of the century.

KOSIK: Oh, yes. Huge cat fight. This is a really high-profile case. What it all boils down to is who copied who and who invented what? Apple said Samsung made a deliberate intention to copy the iPhone and iPad and Samsung was warned a couple years ago its decision were too similar to Apple's. What Apple wants is $2.5 billion in sales, damages, and profits. Samsung said the inspiration for Apple's iPhone design came from Sony plans for its smartphone. They also said Apple wants to stifle competition and limit consumer choice.

But the big decision for the judge to decide is just how strong the patents are that these companies had and whether one can be called the genuine innovator. Jury selection begins today -- Kyra?

PHILLIPS: Alison, thanks so much.

For more business news, go to CNNmoney.com.

(COMMERCIAL BREAK)

PHILLIPS: Well, I just want to warn you the issue we're going to talk about now is disturbing, and quite frankly, it's horrific and disgusting. But awareness is key here. It's child porn, traded like baseball cards by predators online. Like that of a petrified 18- month-old infant, naked from the waist down, holding a stuffed toy bunny. It's that little boy's picture and the man who e-mailed the photo. It was just the start of a massive international operation that so far has led to nearly four dozen arrests. And it's helped authorities track down 140 children. We're talking about a huge network of child porn that spans the globe.

And those are just some of the horrifying details from "Boston Globe" Reporter Jenifer McKim's months-long investigation.

And, Jenifer, I really want to be proactive here. I want to talk about these predators and these kids. But at the same time, I want to be proactive and talk about what we can do as parents to hopefully prevent this when it comes to our kids.

This 18-month-old little boy, his picture was crucial to unraveling this child porn network, right?

JENIFER MCKIM, BUSINESS REPORTER, THE BOSTON GLOBE: Exactly.

(CROSSTALK)

PHILLIPS: Explain.

MCKIM: So this picture was part of a series of photos that had been traded by a lot of people around the world that were taken by a daycare provider in the Netherlands. But a Milford man sent the photo on a forum that was used widely by people who like these kinds of really sick photos. Instead of sending it to someone like himself, it got in the hands of federal investigators. When they saw this picture of this little boy -- they see these pictures all the time. These are investigators who this is the work they do. But the boy was so young and so scared, and the actual quality of the photo made them think it was a picture that had been taken recently. And no one had seen it, so they started to investigate where it came from. It turned out. After sending it all around the world, it ended up being this picture of a boy in the Netherlands.

PHILLIPS: You even talked about this in your article, that online child porn has become so popular, and so huge, the trafficking, that authorities can't even keep up with it.

MCKIM: Exactly. And the head person in HSI in Boston likes to say, he could put all his investigators on this full time and wouldn't be able to stop the problem. It's just exploded over the last couple years with the use of the Internet and the anonymity it gives people, and it allows people who have this kind of illness to be able to find like-minded people, and actually kind of promote their illness.

PHILLIPS: And you point out in your article that most of these pornographers are unmarried, white men. How are they getting access to these kids? I mean, talk to me now as a parent. You're a parent. How are they getting time with these children?

MCKIM: Well, that's the thing. This is not -- when I first got into the story, I thought this was going to be a business story, people providing this information, but basically, they call it homemade product. It's a horrible thing to say, but basically, they're finding their neighbors, their own children, family members. It's child abuse, but it's then photographed and sent around the world.

PHILLIPS: So what do we do? Do we need to screen every babysitter, every daycare center, every -- I mean, we have seen, with priests and pastors -- and what do we do as parents?

MCKIM: Well, what we should, and we do, and I think we try to do that more and more. You need to do your due diligence when you have a babysitter, when you have -- even someone in your own family who makes you uncomfortable. I have been speaking to therapists and they say, if you have a bad feeling, you know, listen to yourself, and listen to your children. If they're not comfortable hanging out with some person, then listen to that kid. They talk a lot about how we teach our kids to be scared of strangers, but most of these things happen with people around them, people they know and trust, who are part of the family.

PHILLIPS: Final question, and I want to get his picture out there because apparently we got his mug shot. And we're talking about Robert Di Duca, this disgusting human being. This is where this investigation began. Nearly a year after he had sent the photo of that 18-month-old, he had returned online to a forum where he was being monitored. And just to give folks an idea of how sick, -- and by the way, he had children of his own, three boys, right, Jenifer? Married with three boys?

MCKIM: Three children. .

PHILLIPS: Three children.

MCKIM: Three children. I don't think they were all boys.

PHILLIPS: OK. Here's what he writes, "OMG, how many of you belong to a swim club or gym where you come across awesome little toddlers running around naked"? He posted this in October of 2010, according to the search warrant that led to his arrest. It goes on to say, "I love parents, especially daddies, who have no clue how sexy their little boys are."

I mean, you were talking about how investigators with whom you interviewed have PTSD and can't sleep at night because they have to deal with disgusting people like this.

MCKIM: Right, exactly. It's hard to -- I went through this process and spent a long time on it. I read a lot of federal indictments and things that were almost impossible to read for their terribleness. I go back and say, why am I writing this? Why is it important for them to know about it? These are the guy whose are doing this all the time. Basically, they said people should know because they need to watch out for their kids. They need to think about what they're doing. And also to know there are guys like these guys trying to go after them.

PHILLIPS: Well, it is --

(CROSSTALK)

MCKIM: And thirdly, actually, that this little boy -- some people argue, the defense attorneys for people who are looking at child pornography, that these children are pictures, not real people. This little boy had parents who didn't know this was happening. It's really important to recognize that child pornography is about real kids.

PHILLIPS: And we're parents, and we can all relate to that.

Jenifer McKim, I know this took you months and months to work on, and it was not easy. But it was pretty incredible. And I think every parent definitely needs to read it.

MCKIM: Thank you very much.

PHILLIPS: You bet. Jenifer, thanks so much.

While it's difficult to pinpoint an exact number, according to the American Psychology Association, at least 300,000 children in the U.S. are sexually abused each year. Suspected abuse can be reported to the National Center for Missing and Exploited Children at cybertipline.com.

(COMMERCIAL BREAK)

PHILLIPS: Well, an expanded role for former President Bill Clinton in the upcoming election. He will be front and center at the upcoming Democratic convention in September in Charlotte.

CNN political director, Mark Preston, in Washington.

Mark, I guess that we should not be surprised there's a primetime slot for Clinton? MARK PRESTON, CNN CHIEF POLITICAL DIRECTOR: No, certainly not. There was a primetime slot for him as well in 2008. And there's been a lot of talk between the relations of President Clinton and President Obama and how frosted they have been, and a result of the brutal presidential campaign and the primary campaign between his wife, Hillary Clinton, and of course, Barack Obama. But President Clinton is very much in the fold. And we should not be too surprised to see this. In fact, we saw the Republican National Committee put out a point-by-point hit piece this morning touting President Obama's time in office and saying that President Obama is no Bill Clinton, which is very interesting -- Kyra?

PHILLIPS: Well, he has been playing a role until this announcement.

PRESTON: Well, he has, and he has been raising money. President Clinton has been raising money for President Obama. And a lot of people probably forget this, but looking back a few months, President Clinton narrated a 1.5-minute video where he praised President Obama for the action he took to take out Osama bin Laden. And in the middle of that video they question if Mitt Romney would have made the same decision. President Clinton has always kind of been there but certain this will be big night and he only has to up against the opening night of the NFL -- Kyra?

(LAUGHTER)

PHILLIPS: Meanwhile, Mitt Romney talking about his trip overseas raising $1 million in Israel this morning.

PRESTON: Yes, a lot of PAC money over there in Israel. And that is, of course, Americans living in Israel. It shows how well Mitt Romney is doing right now with the Jewish vote. There is a big fight for it right now. One of the things that he was able to do is to raise the $1 million from Sheldon Adelson, who is there. He's one of the wealthiest men in the world and happens to be the casino magnate who lives in Las Vegas. He attended the fundraiser. And so while Mitt Romney was raising money over there and able to do so, we know that President Obama will be raising money in New York, raising about $250,000. Meanwhile, Joe Biden, the vice president, is out in Chicago raising money. So as much as we talk about legislating here in Washington, D.C., it really has come down to the campaign right now -- Kyra?

PHILLIPS: All right. Mark Preston, thank you so much.

And the Democratic National Convention is being held in Charlotte, North Carolina, from September 3rd through the 6th. President Obama gives his speech on the last day of the convention. And you can expect full coverage here on CNN and on CNN.com/politics.

(COMMERCIAL BREAK)

PHILLIPS: Well, a couple in Crystal Springs, Mississippi, had to find a new place to get married after the church they attended banned the wedding. A few members of the First Baptist Church of Crystal Springs threatened to remove the pastor if he preformed the ceremony, because the couple is black. The pastor, who is white, ended up presiding over the wedding ceremony anyway at a separate church down the street. But still, the couple has a lot of questions about why a small minority was able to mess up their wedding plans.

(BEGIN VIDEO CLIP)

CHARLES WILSON, WEDDING BANNED AT CHURCH: Well, I listened to what you said about the congregation, and all of those people that were sorry. Well, we are God-fearing people, and we love Jesus and Christians. The thing I would say to the people and everyone else that is listening to what we are talking about is that, why didn't those people stand up in the beginning? If it was such a minority of people, why didn't the majority of them stand up and say, in God's house, we don't do this?

(END VIDEO CLIP)

PHILLIPS: Well, the church is holding meetings now to determine what to do if they get another request from a black couple.

Thanks for watching, everyone. You can continue the conversation with me on Twitter, @kyraCNN, or on Facebook.

NEWSROOM INTERNATIONAL starts right now.