The 10 Bits Of Legal Advice Every Tech Client Should Get ' On Day One
May 30, 2006
You've seen it so many times: New tech clients have great dreams. They're always sure that their invention will make millions, as soon as you, their attorney, introduce them to people who can provide the funding that will develop, market and advertise the invention.<br>Counsel, unfortunately, must play their role, and discharge their responsibilities, and end these dreams with a splash of reality. This is the way of the world: While some startup firms will taste success, most, for a host of reasons that fit each company according to the company's situation, will not. <br>So as a new client sits across your desk, what advice must you give? Below is my take on the e-commerce advice that counsel must dispense, whether or not the client wants to hear it ' including how to work best with counsel to get results at a reasonable cost.
Employment Agreements and Severance Arrangements
May 30, 2006
Section 409A of the Internal Revenue Code was enacted on Oct. 22, 2004 in an effort to regulate executive pay practices through the federal tax system. Failure to account for ' 409A's impact can seriously and adversely affect the economics of employment agreements, severance agreements, and other similar plans or other arrangements providing for a deferral of compensation. Consequently, this article details how ' 409A applies to these arrangements.
Quarterly State Compliance Review
May 30, 2006
This edition of the Quarterly State Compliance Review looks at some amendments to state business entity laws that went into effect, and court decisions dealing with business entities that were issued, during the last three months. Included are several amendments to New York's business entity laws, including changes to its publication requirement. Also included are Delaware Chancery Court decisions dealing with indemnification and hedge funds.
Cyber Rentals
May 30, 2006
The Internet has profoundly changed the way real-estate rental transactions are executed, mostly for the better. Besides putting significant amounts of rental information into the hands of potential tenants and allowing virtual tours of available rental properties, the Internet allows prospective renters and landlords to submit rental applications and negotiate contracts online. Properly executed, an Internet real-estate rental application may save time and money for the potential tenant and landlord. Improperly executed, such an application may result in legal difficulties, including unenforceable contracts and negligence claims.
Recklessness Under the Federal Securities Laws
May 30, 2006
Whenever the Enforcement Division of the Securities and Exchange Commission (SEC) investigates potential fraudulent conduct, one of the key issues it must address is whether there is evidence of scienter; in the words of the Supreme Court, 'a mental state embracing intent to deceive, manipulate, or defraud.' (Ernst & Ernst v. Hochfelder, 425 U.S. 185, 193-194, n.12 (1976)). In some cases ' for example, where an individual engages in insider trading, or This article offers guidance for executives and others on the interpretation and application of recklessness in SEC enforcement actions, as well as in private litigation, charging securities fraud. We first provide an overview of the concept of recklessness as it has evolved in the case law, and its use in the statutes the SEC enforces. The article next suggests business practices that may help deter claims of fraud based on allegedly reckless conduct. As will be seen, although the contours of recklessness are ill-defined and tend to shift with the facts of each case, some helpful governing principles can be identified.
Slouching Toward WIPO
May 30, 2006
Ten years ago, delegates at a Diplomatic Conference at the World Intellectual Property Organization (WIPO) in Geneva concluded two treaties to modernize member nations' intellectual property laws to accommodate the realities of digital technology. The WIPO Copyright Treaty (WCT, passed Dec. 20, 1996, and effective March 6, 2002), and the WIPO Performers' and Phonograms Treaty (WPPT, passed Dec. 20, 1996, and in force May 2, 2002), collectively known as the WIPO Internet Treaties, provide for the expansion of existing rights and the creation of new rights in subject matter protected by copyright.<br>Canada, under the guidance of successive governments led by the Liberal Party of Canada, chose to consult widely with stakeholders over the direction it should take in legislating. The result was a lengthy consultation process culminating in a bill ' Bill C-60, An Act to Amend the Copyright Act, 1st Session of the 38th Parliament, 2005 ' that implemented Canada's obligations under the WIPO Treaties, but departed from the DMCA view of those treaties in several key respects, including the scope and ambit of anti-circumvention laws. While lobbyists for rights-holder organizations ' and the U.S. Trade Representative ' denounced Bill C-60 as non-compliant with the WIPO Internet Treaties, none took such claims seriously.
In the Courts
May 30, 2006
Recent rulings of interest to you and your practice.
Criminal Enforcement of FBAR Filing Requirements
May 30, 2006
With this year's June 30 deadline for the Foreign Bank Account Reports (FBAR) fast approaching, it's worth considering the federal government's increased attention to the FBAR rules. Though criminal and civil enforcement relating to persons failing to comply with FBAR reporting requirements has been rare, the IRS (now the agency principally responsible for FBAR compliance) appears to be gearing up to investigate and prosecute willful violators. This new emphasis, together with the IRS's ever-expanding ability to obtain once secret information from foreign jurisdictions, suggests that we will be seeing more investigations and prosecutions in this area.
New Rules for Electronic Records?
May 30, 2006
A recent decision by a Ninth Circuit Bankruptcy Appellate Panel rejected the prevailing standard for authenticating electronically stored records and imposed stringent requirements that may help defend against computerized evidence in a broad range of cases, including white-collar prosecutions. In re: Vinhnee, 2005 WL 3609376 (B.A.P. 9th Cir. Dec. 16, 2005). Although decisions of the Panel, which consists of three bankruptcy judges, are binding precedent only for bankruptcy courts in the Ninth Circuit, Vinhnee's persuasive analysis has the potential to change the use of electronic evidence in other courts.
