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News Briefs
Franchise Industry Watches Tax Nexus Case Carefully
The franchise industry is anticipating a U.S. Supreme Court decision in A&F Trademark, Inc., et al v. North Carolina, a case involving states' ability to tax businesses that are not based in that state. In the case, the Limited, Inc., a chain of clothing stores, which licensed its trademark through A&F Trademark, challenged a ruling by the North Carolina Secretary of Revenue that it owed corporate franchise and income taxes in the state. Ultimately, the North Carolina Court of Appeals upheld a ruling by the Wake County Superior Court that the presence of intangible property in North Carolina is sufficient nexus for the state to impose a state income tax. The appeals court rejected A&F's claim that its lack of offices, employees, tangible property, transactions with residents or customer service in North Carolina left it outside the definition of taxable nexus. The court said that the state's tax statutes defined the term “doing business” as “owning, renting or operating business or income-producing property in North Carolina including … [t]rademarks [and] trade names.”
The International Franchise Association (“IFA”) filed a brief seeking to overturn the lower court's decision. IFA argued that “this decision radically expands the classes of persons, relationships and transactions potentially subject to state income taxation. The decision has enormous implications for the many thousands of businesses engaged in interstate franchising and licensing of intangible property.”
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.
The Stranger to the Deed Rule
In 1987, a unanimous Court of Appeals reaffirmed the vitality of the "stranger to the deed" rule, which holds that if a grantor executes a deed to a grantee purporting to create an easement in a third party, the easement is invalid. Daniello v. Wagner, decided by the Second Department on November 29th, makes it clear that not all grantors (or their lawyers) have received the Court of Appeals' message, suggesting that the rule needs re-examination.