Claims Trading Restrictions Dealt Setback
December 22, 2006
In recent years, debtors in large corporate bankruptcies have sometimes sought and obtained, in varying degrees, authority at the outset of bankruptcy cases for severe restrictions on trading in claims against the debtors by substantial claimholders. In practice, however, these debt-trading orders have chilled the market for trading in debt securities and served to entrench existing management by effectively precluding substantial investors from acquiring meaningful positions in the debtor's debt securities.
Why Most Document Retention Policies in the Digital Era Are Ineffective
December 19, 2006
Many companies have document retention policies in which paper and electronic documents are discarded or deleted after specified time periods, depending on the content and type of document. Those policies serve to keep sensitive information from getting into the hands of others, as well as to control the amount of physical and digital memory space needed to store documents. <i>See Arthur Andersen LLP v. United States</i>, 544 U.S. 696, 704 (2005). Some companies, for example, automatically delete e-mails older than 3 months, unless specifically saved by an employee. <i>See Hynix Semiconductor, Inc. v. Rambus, Inc.</i>, No. C-00-20905 RMW, 2006 WL 565893, at *11 (N.D. Cal. 2006). Courts, including the U.S. Supreme Court, have recognized that there is nothing wrong with such policies, even where they might result in the destruction of documents that might be material in a later lawsuit, as long as that lawsuit was not reasonably foreseen at the time the documents were destroyed. <i>See Arthur Andersen</i>, 544 U.S. at 704 ('It is, of course, not wrongful for a manager to instruct his employees to comply with a valid document retention policy under ordinary circumstances.'); <i>Samsung Elecs. Co. v. Rambus, Inc.</i>, 439 F. Supp. 2d 524, 543 (E.D. Va. 2006) (citing <i>Arthur Andersen</i>).
Cybersecurity Researcher Addresses 'Misplaced' Fears: Q&A with Professor Fred H. Cate
December 19, 2006
<i>The Privacy and Data Protection Legal Reporter</i> spoke recently with Professor Fred H. Cate, distinguished professor of law and adjunct professor of informatics at Indiana University, in Bloomington, IN, about what he sees as the hyperbole that, at times, overtakes the public discussion about ID theft and electronic security. As the director of Indiana University's Center for Applied Cybersecurity Research, Cate is a leading researcher and consultant on issues such as phishing, consumers' use of passwords, and cybersecurity.
Online Banking's Battle Against Phishing
December 19, 2006
Online banking, which has seen explosive growth in recent years, has made it faster, cheaper, and more convenient than ever before for consumers to manage their financial affairs. It also holds the promise of significant cost savings for the financial services industry, as rising numbers of customers are expected to shift from over-the-counter services to online transactions.
Web Sites' CDA '230 Immunity: An Ever-Expanding Universe?
December 19, 2006
The federal Communications Decency Act of 1996 ('CDA') immunizes Web site operators and other interactive computer service providers from liability for third parties' tortious acts. Pub Law No. 104-104 (Feb. 8, 1996) 110 Statutes at Large 56 '509, codified at 47 U.S.C. '230. 47 U.S.C. '230 shields providers and users of interactive computer services from responsibility for third-party content.
Fried Frank Set to Open Office in Hong Kong
December 12, 2006
Four years ago, it was the law firm merger everybody was talking about. Then it didn't happen. <br>Now the firm is turning its attention to Asia. It is set to announce today the opening of a Hong Kong office. Six partners recruited from British firm Simmons & Simmons, led by China region managing partner Huen Wong, will launch the office for Fried Frank. Another three from Simmons & Simmons, including China corporate head Stephen Mok, will come aboard early next year.
Alternative Routes To U.S. Markets Impact Reporting Requirements For Chinese Companies
November 30, 2006
According to the U.S. Securities and Exchange Commission's Web site, there are currently 144 domestic Chinese companies registered with the Commission. This number is deceiving, however, since more and more Chinese companies are entering the U.S. through business combinations with U.S. domestic listed companies or through off-shore holding companies, utilizing the wholly-owned foreign enterprise (WOFE) structure. While the end result is the same ' a listing on a U.S. exchange ' the decision to 'domesticate' in the United States or remain a 'foreign private issuer' can have significant ramifications for the company's ongoing regulatory compliance obligations. Foreign private issuers continue to enjoy certain levels of relief from the U.S. compliance regime by virtue of the fact that they are also required to comply with their local, or 'home country', reporting requirements.
China's World Trade Compliance
November 30, 2006
Board of Editors member, Prof. Usha Haley, spoke at the U.S.-China Economic and Security Review Commission Hearing on China's World Trade Compliance. In Part One, she addressed subsidies, their forms and complications. In Part Two, she covers how profitable and available those subsidies are and how profitable companies are that serve the China market.
IP News
November 30, 2006
Highlights of the latest intellectual property news from around the country.
