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Managing 'Perfect Storm' Litigation for a Franchise System
A “perfect storm” is a detrimental or calamitous situation or event arising from the powerful combined effect of a unique set of circumstances. A confluence of events, including major litigation against the franchisor, can create a “perfect storm” setting for a franchise system. In this setting, the franchise system may find itself in a no-win situation in which all potential solutions or avenues of escape lead to a result that is tantamount to death of the system: bankruptcy, closure of the system, or a dramatic change in the system's business and sources of revenue. When the litigation cannot be settled or otherwise resolved, management of the franchise system and counsel must take extraordinary steps to manage and solve the problems.
A hypothetical example of perfect storm litigation is a system that relies on a group of patents that provides franchisees with a competitive advantage in the system's market. Patent litigation is instigated by a national competitor that asserts infringement claims based on its own patents and also seeks to invalidate the system's primary patents based on inequitable conduct when the patent applications were first filed. While there is often significant uncertainty in patent litigation, the franchise system being sued might be facing a perfect storm if it cannot settle. A jury trial that results in a judgment in favor of the plaintiff and invalidity of the system's patents may be a risk the system cannot take.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs
A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.