Defective Pet Foods: New Litigation Theories Or Just the Same Old Chow? An Animal Law Attorney Argues for More Than Market Value Damages
May 30, 2007
One of the biggest stories in product liability in the past month has been the recall of tens of thousands of cans of food sold to consumers to feed to their companion animals. The news has attracted public attention because it is a tragedy of potentially epic proportion: Somewhere between 20 (according to the FDA) and 20,000-plus (by extrapolating statisticians) of the nation's nonhuman family members have developed serious illnesses and/or died from eating food containing something very toxic that has caused renal failure (still being debated). Furthermore, in the litigation arena, plaintiffs' attorneys ranging from sole practitioners to the large class action law firms most often in the headlines have all filed actions representing both individual clients and broad-ranging classes of thousands of individuals affected by the poisoned food. (At the time of this writing, more than 30 cases had supposedly been filed across the country.)
Rethinking Mandatory Arbitration of Employment Disputes
May 29, 2007
For a number of reasons discussed below, employers truly interested in turning back the clock on the 1991 amendments to Title VII would be well served to cease using mandatory arbitration agreements and instead have their employees execute waivers of their right to jury trials. It is juries that employers generally fear, not the courts themselves. Prior to the 1991 amendments, employers felt no imperative to exempt themselves from the civil justice system available in the courts. Thus, employers do not now need to flee the court system altogether in order to avoid jury trials, and there is certainly no reason for them to require their employees to agree to the wholesale replacement of court litigation with mandatory arbitration.
Internet Expands Trademark Infringement
May 25, 2007
It should strike no one as a surprise that the fluidity of using trademarks on the Internet expands the incidence of trademark-infringement claims and lawsuits. And along those lines, novel Internet trademark claims spring from the innovative but unlawful use of trademarks in e-commerce. Logically, then, it follows that Internet domain names, hyperlinks, meta tags and framing marks enlarge the number of trademark-infringement opportunities.
Climate Change: Issues for Policyholders
April 30, 2007
In a ruling characterized as 'one of its most important environmental decisions in years' and a 'strong rebuke to the Bush Administration,' the U.S. Supreme Court held recently that the U.S. Environmental Protection Agency has authority to regulate emissions of greenhouse gases ('GHG') that contribute to climate change. Linda Greenhouse, <i>Justices Say E.P.A. Has Power to Act on Harmful Gases</i>, New York Times, Apr. 3, 2007 (discussing <i>Massachusetts v. Environmental Protection Agency</i>, No. 05-1120 (U.S. Apr. 2, 2007)). The Supreme Court's ruling in <i>Massachusetts v. EPA</i> could trigger long-anticipated regulation of GHG emissions in the United States, dramatically changing the regulatory environment in which U.S. businesses operate.
Ninth Circuit Follows TTAB Policy: Questions Remain As to What Kinds of Unlawful Acts Bar Trademark Rights
April 30, 2007
The Ninth Circuit, in a case of first impression in that circuit, recently adopted the long-standing policy of the U.S. Patent and Trademark Office's ('PTO') Trademark Trial and Appeal Board ('TTAB') that 'use in commerce only creates trademark rights when the use is <i>lawful</i>.' <i>CreAgri Inc v USANA Health Sciences Inc.</i>, 474 F.3d 626 (9th Cir. 2007). The Ninth Circuit in <i>CreAgri</i> noted that 'at least one [other] circuit has adopted and applied this rule. <i>See United Phosphorous, Ltd. v. Midland Fumigant, Inc.</i>, 205 F.3d 1219, 1225 (10th Cir. 2000).'
Backdating Investigations
April 30, 2007
As federal investigators examine the stock option programs of more than 160 companies, innumerable other companies launch internal investigations. As top executives resign, shareholders file dizzying numbers of derivative class action suits. Finally, as the Securities Exchange Commission and Department of Justice bring enforcement actions and criminal charges, the media is vilifying the so-called stock option backdating scandal as the biggest example of corporate abuse since Enron. The option backdating media frenzy focuses upon investigations by federal prosecutors and other regulatory agencies into public companies that have employed stock option compensation plans for corporate executives and employees.
Backdated Options
April 30, 2007
On Feb. 8, 2007, the Internal Revenue Service ('IRS') made an usual offer to employers: on very short notice ' by Feb. 28, 2007, employers could inform the IRS of their intent to pay the back taxes and penalties owed by (non-insider) employees who exercised stock options with 'an exercise price of less than fair market value of the underlying stock on the date of grant in 2006.' Under this Program, companies with backdated options programs were 'allowed' to calculate and pay, by June 30, 2007, on behalf of their employees who exercised such options, a 20% penalty tax, and an additional 1% interest on underpayments, owed by such employees under ' 409A of the Internal Revenue Code ('IRC').
Competition Law and Distribution in East Asia
April 27, 2007
While franchise lawyers, both domestically and in foreign jurisdictions, tend to focus their primary attention on matters of importance that are specific to franchise relationships, most are keenly aware that franchising is essentially just a form of distribution. Therefore, laws and regulations of broader impact can often be of critical importance. While distribution systems may often escape the applicability of franchise laws, franchise relationships nevertheless often have to deal with those affecting distribution generally.
