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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.
New York's Latest Cybersecurity Commitment
On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.