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January 26, 2012

IP Law This Week: You Should Read...

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We've seen a large number of well-read intellectual property law advisories and updates over the past few days on JD Supra.

The work covers a broad range of IP news and related business commentary, as written by some of the leading lawyers and law firms in the field.

For your reference, here's a look at some of the most popular updates:

Is Super Bowl Protected by Trademark or Copyright Law? Try Both. (Davis Wright Tremaine)

Restoration of Copyright in Foreign Works Passes Constitutional Muster (McDermott)

Defense Attorneys' Fee Standards Set in Pennsylvania Trade Secret Suits (Littler)

A Comparison of US and EU Biosimilars Regimes (Fenwick & West)

America Invents Act - Already Making its Mark (Venable)

How to Protect Your Brand Without Being a Trademark Bully: Lessons from The North Face and Coke (Foley Hoag)

A Major Brew-haha on Tap (Greenberg Glusker)

Curtain Call: Supremes Bow to Congressional Authority on Copyright Terms (Bracewell & Giuliani)

New Jersey Adopts Uniform Trade Secrets Act: Implications for Your Intellectual Property Portfolio (Schnader)

SOPA and PIPA Legislation Stalled in Congress (Mintz Levin)

Copyrighting Web-Based Software Applications (Scott & Scott)

Megaupload shut down by US authorities (Baldwins)

Indictments of Megaupload Are a Greater Threat to Web Users Than Piracy (Ifrah Law)

District Court Allows False Marking to be Re-pleaded as Consumer Protection Claim (Loeb & Loeb)

IP Buzz - January 2012 (Venable)

Incontestable - December 2011/January 2012 (Finnegan)

Becoming Immune to Reputation Damage: Tips from Kim Kardashian? (Greenberg Glusker)

Key Moments In Social Media Law (Morrison & Foerster)

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Also see our recent roundup on Google+: Livin' In a post-SOPA/PIPA World - Lawyers Weigh In On the Week That Was...


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December 29, 2011

2012 Laws: Updates To Ring In the New Year

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Out with the old, in with the new. A splendid end-of-year sentiment to be considered between glasses of champagne (or non-alcoholic sparkling cider, if you prefer)...

However, when the 'new' includes new laws, rules, and regulations it usually means you need to stay apprised of the changes and how they affect the way you do business, or live your life.

And so, from JD Supra, a year-end update of 2012 updates:

Here's what lawyers and law firms have been writing about new laws for 2012. Included below: roundups we've published throughout December on our business law blogs...

Blog Roundups

- Employers & Business Owners: Are You Ready for 2012? (Small Business Support)

- NLRB Poster Rule Delayed. Again. [New date: April 30, 2012] (Small Business Support)

- California Transparency in Supply Chains Act Takes Effect January 1, 2012 (Corporate Law Report)

- Doing Business in California in 2012: Do You Know These New Laws? (Small Business Support)

- Changes to 401(k), ERISA, and Health Care Plans in 2012: Are You Ready? (Small Business Support)

- Federal Rule Bans Cell Phone Use by Commercial Drivers [As of January 3, 2012] (Small Business Support)

- Proxy Voting: Institutional Shareholder Services 2012 Guidelines Released (Corporate Law Report)

- Russia and the WTO: Accession Means Trade Barriers Lowered, IP Protections Raised, More... (Corporate Law Report)

Additional, Recent Law Firm Updates

- Significant Changes To California Employment Law Effective January 1, 2012 (Bryan Cave)

- 2012 California Construction Law Update (Farella Braun + Martel)

- Ohio Minimum Wage Increases Effective January 1, 2012 (Fisher & Phillips)

- Group Health Plans: Year-End Action Items, Upcoming Changes (Morgan Lewis)

- Outlook for 2012 After the Death of the Super Committee (Marc J. Lane)

- Predicting Where the South Florida (Miami) Economy Will Be in 2012 (Rosa Eckstein Shechter) 

- Social Security Tax Break Temporarily Extended (Ford & Harrison)

- Top Ten Tax Tips for 2012 (Darrin Mish) 
 
- New Year, New Rules [re: Employee Handbooks] (Kristin Simpsen, McAfee & Taft)

- Congress, President Extend Endangered Medicare and Medicaid Programs (McDermott)

- CMS Issues Proposed Sunshine Act Regulations (Duane Morris)

- Wave of Legislation, Case Law is Poised to Alter the Environment for Tort Cases in 2012 (Daniel E. Cummins)

- Software Audits Will Increase In 2012: How Targets Can Prepare (Scott & Scott)

- Postage Rates May Significantly Increase in 2012 Affecting The Cost Of Sending Notices (zLien)

- All I Want for Christmas is a New Radio Station: Window for FM Auction Opens Jan. 3 (Davis Wright Tremaine)

- California Amendment Mandates A.G. Notification For Major Data Breaches (Loeb & Loeb LLP)

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We'll add new updates as they come in. See you in the New Year!



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September 30, 2011

Hiring, Firing, and Social Media in the Workplace: Lawyers Sound a Note of Caution

Have you heard? Social media is big! No, really, it's true; and that includes BIG in the workplace and workforce.

Screen shot 2011-09-30 at 3.27.03 PM.png Don't take our word for it, we're just reporting what we read on Facebook, Twitter, LinkedIn, and our iPad (which needs an 2.0 upgrade ASAP).

For example this, from a much-shared article (Employers are liking -- and hiring -- social media workers) in the Los Angeles Times earlier this week:

"'This was the year when companies large and small began to realize the importance of social media, and there has been lots of investment in social media,' said Augie Ray, a former Forrester Research analyst who now handles social media for insurance group USAA."

Social media is (are?) big in the workplace even if companies large and small haven't yet begun to understand the importance of these robust communications platforms. Why? Because their employees are on LinkedIn, Facebook, and Twitter. And that (according to lawyers and law firms on JD Supra) is when things can get sticky.

Culled from recent updates on JD Supra, here's a look at some of the legal issues that can arise from social media in the workplace.

On Hiring & Firing

"Every human resources staff member knows that, especially when interviewing a potential new employee, some topics are strictly off limits. Asking one of these 'off limits' questions can put your company at serious risk of being sued for discrimination. The trouble is, by resorting to the use of social media, this kind of 'off limits' information can be collected from a potential employee even before his or her interview..." (From The Use of Social Media in Hiring Decisions: Tempting Fruit from a Poisonous Tree by McNees.)

"There are subjects that are considered off limits for employers to ask job applicants about. Under federal law, Title VII of the Civil Rights Act prohibits discrimination when making employment related decisions. A company cannot make hiring, discipline and termination decisions based on any of the following protected factors: race, color, national origin, religion and gender. The Age Discrimination in Employment Act (ADEA) adds to the list with a prohibition on discrimination against individuals who are 40 years or older. And, finally, the Americans With Disabilities Act of 1990 prohibits discrimination against "qualified disabled" individuals. Employment decisions are defined broadly and include promotion, demotion, compensation, and transfers.

It is very easy to see how someone with a Facebook page may post about these protected factors. Thus, the challenge for employers who are researching job applicants, or monitoring the social media activity of their employees, is not to let this protected status information bleed into their employment decisions. Under federal and state law, employers should not make employment decisions that are "motivated by" a person's membership in a protected class..." (From Social Media Research + Employment Decisions: May Be a Recipe for Litigation by Sheppard Mullin)

In the Workplace

"If you're planning to monitor your employees, do so with caution. Although workplace surveillance is legally acceptable to some extent, the more invasive the surveillance becomes, the more likely it is to be considered in discordance with privacy laws. Companies should have policy explicitly describing employees' diminished expectations of privacy. Policies should state that any personal communication on social networking sites conducted at work is not private, that computers and any other devices are to be used solely for company business, that communications are monitored to ensure compliance, and that these policies apply not only to internal communications, but also to external cloud-based communications.

As a caveat, though, be warned that social media policies cannot uniformly discourage employees' rights to concerted activity. The National Labor Relations Board (NLRB) actively enforces employees' rights to discuss working conditions. People today use social media to organize, which can be associated with the right to unionize and the right to congregate, neither of which may be legally denied..." (From Draw the Line by attorney Curtis Smolar at Ropers Majeski)

Enter the NLRB

The National Labor Relations Board has indeed written much about social media usage in the workplace - most recently issuing a series of memoranda on the topic. Much of the Board's commentary intersects with online activity and employee rights protected by the National Labor Relations Act (NLRA):

"In at least four cases, the NLRB overturned the termination of employees based on their social media activities because the activities involved active, online conversations among multiple employees regarding work conditions. Therefore, they were 'concerted activities' for which the employees could not be terminated under Section 7 of the NLRA. The NLRB also found that several anti-blogging and disruptive behavior employment policies were illegal under Section 8(a)(1) of the NLRA on their face because the policies were blanket prohibitions of protected activity.

There are several commonalities worth noting among these cases. First, they all involved employees who criticized specific employment practices or work conditions, which is traditionally viewed as protected activity under the NLRA. Additionally, all of these employees engaged in online discussions after work hours, on their own personal computers and media pages, and off work property, which are all factors the NLRB considered in gauging whether the online activity was protected. Most importantly, every case involved online discussions among multiple employees, which made the discussions 'concerted activities' under the NLRA. The involvement of multiple employees appears to be the most important factor in determining whether the activity is protected. Additionally, the NLRB did not consider the minimal use of derogatory language in an online post to be an adequate reason for termination." (From Social Media and the National Labor Relations Act: A Trap for Unwary Employers by Bryan Cave)

So What's an Employer To Do?

Proceed with caution, it would appear. And have a solid knowledge of which employee rights are protected, including during the hiring and firing process. Common sense goes a long way, too. Do you have an internal social media policy that maps well to employee rights? That might well be a good first step. From law firm Fisher & Phillips:

"The lesson to be taken from these Advice Memos is that disciplining employees for comments they make in social media is neither prohibited, nor is it without risk. Any decision to discipline or terminate employees for social media postings should be carefully weighed and reviewed with your labor counsel before implementation. It should be some comfort to know that, based on a careful reading of the most recent Advice Memos, the rules for determining when activity is protected have not changed. Purely individual gripes aired through social media are no more protected now than they were before Facebook became the rage..." (From Not As Bad As We Feared: NLRB Issues Guidance On Social Media.)

Also see: The Best Defense is a Good Offense: Proactive social media policies and what they can do for you by Len Brignac at king Krebs)
...

We regularly compile legal roundups on this topic. Read them here:

- Social Media in the Workplace: an NLRB Guidance Update
- Social Media and The Law: Friday Reading List
- Social Media and the Law - Employer Dos and Don'ts from the NLRB
- Social Media in the Workplace: Legal Issues, Business Policies

...

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February 2, 2011

Hart Scott Rodino 2011 Threshold Revisions - Antitrust Law Update

iStock_000000701787XSmall.jpg[Update, July 2011: also see additional updates: Hart-Scott-Rodino Rules: DOJ And FTC Final Changes To Merger Reporting...]

Here's what lawyers and law firms on JD Supra are reporting about the Hart-Scott-Rodino Act antitrust threshold revisions for 2011, as announced by the FTC on January, 21:

- Hart Scott Rodino Antitrust Threshold Revisions Announced for 2011 (by Howard Morse, Cooley LLP):

"The Federal Trade Commission (FTC) announced new Hart-Scott-Rodino Act (HSR) thresholds for reporting proposed transactions to the Department of Justice (DOJ) and FTC, on January 21, 2011. The critical "size-of-transaction" threshold will increase from $63.4 million to $66.0 million, when the changes take effect, 30 days after publication in the Federal Register, which should occur shortly. The HSR Act allows the FTC and DOJ to review proposed mergers and acquisitions before they are consummated to determine if they may violate antitrust law. The thresholds are adjusted annually for changes in GNP..." Read on>>

- Hart-Scott-Rodino Thresholds Revised, Effective February 24 (by Francis Fryscak, Cooley LLP):

"Once the new thresholds take effect, the "size of transaction" test will reach those transactions in which the value of the voting securities (or assets) to be held as a result of the acquisition will exceed $66 million (compared to the current $63.4 million threshold). The "size of-person" test will require, in most cases, that at least one party (together with affiliates under common control) has total assets or annual sales of at least $131.9 million, and another party (together with affiliates under common control) has total assets or annual sales of at least $13.2 million..." Read on>>

- Notification Threshold Under Hart-Scott-Rodino Act Increased to $66 Million (by McDermott Will & Emery):

"The adjustments will affect parties contemplating HSR notifications in various ways. Parties may be relieved from the obligation to file a notification for transactions closed after February 24, 2011, that fall below the adjusted base threshold. For example, a transaction resulting in the acquiring person holding voting securities or assets valued at less than $66 million would not be reportable on or after the effective date. The adjustments will also affect various exemptions under the HSR rules. For example, acquisitions of foreign assets and voting securities of foreign issuers will now be exempt unless they generated U.S. sales in excess of $66 million, or in the case of foreign voting securities, the issuer has assets in the United States valued in excess of $66 million..." Read on>>

- Federal Trade Commission Revises Hart-Scott-Rodino Thresholds (by Wilson Sonsini Goodrich & Rosati):

"The new "size-of-person" thresholds will be $131.9 million in total assets or net revenues (up from $126.9 million) for one person (acquiring or acquired), and $13.2 million in total assets or net revenues for the other person (up from $12.7 million).

If the transaction value exceeds $263.8 million (up from $253.7 million), the size-of-person threshold no longer applies, and a transaction is subject to HSR solely on the basis of the value of voting securities or assets to be acquired..." Read on>>

- Antitrust Alert: New HSR Thresholds for 2011 (by Fenwick & West):

"Filing fee thresholds also have been adjusted: (i) $45,000 for transactions below $131.9 million, (ii) $125,000 for transactions of $131.9 million or more but below $659.5 million, and (iii) $280,000 for transactions of $659.5 million or more..." Read on>>

- New HSR Filing Thresholds for 2011 (by Morrison & Foerster):

"The FTC also announced the revised thresholds for Section 8 of the Clayton Act that prohibits, with certain exceptions, interlocking directorates where one person serves as a director or officer of two competing corporations if two thresholds are met. Under the revised thresholds, effective when published in the Federal Register, Section 8 may apply when each of the competing corporations has capital, surplus, and undivided profits aggregating more than $26,867,000 and each corporation's competitive sales are at least $2,686,700..." Read on>>

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Additional legal updates - stay in touch:

- Mergers & Acquisitions Law via: RSS | LinkedIn
- Antitrust & Trade Law via: RSS | LinkedIn
- Securities Law via: RSS | LinkedIn


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January 24, 2011

Nonprofit Corporate Law: Recent Updates

For your reference, here's a reading list of recent commentary and analysis by lawyers and law firms on JD Supra covering the various aspects of running a non-profit organization:

- The Dodd-Frank Act and Implications for Nonprofit Organizations (by Venable LLP):

"While many of the provisions of the Dodd-Frank Act apply specifically to financial services firms and their related activities, the Act does include a handful of key provisions that may impact generally the nonprofit community. In addition, the Dodd-Frank Act makes sweeping changes in how financial products and services are regulated that will impact a number of nonprofit organizations directly due to new regulations and compliance requirements.

Nonprofit leaders should look carefully at the provisions of the Dodd-Frank Act and determine whether their organization's fall under any of its provisions and, to the extent that they do not, how they may address practices required under the Act, even if not mandated by law. In addition, there are a number of opportunities for nonprofits in the areas of financial literacy and consumer education. Of course, there also will be no shortage of opportunities for financial services industry trade associations to weigh-in on issues of importance to their memberships.

This article will provide some general background and review the main provisions most likely relevant to nonprofit organizations..." Read on>>

- Key Nonprofit Corporate Law Developments in 2010 (by McDermott Will & Emery):

"The year 2010 witnessed an extraordinary series of developments in nonprofit corporate and charitable trust law as they affected the governance and operation of hospitals and health care systems. This is consistent with a decade-long trend that has made corporate law and governance key legal feasibility considerations for nonprofit organizations.

These developments reflect the following general trends: (a) increased oversight from state and federal charity regulators; (b) greater focus on corporate governance practices; (c) closer scrutiny of the exercise of business judgment by boards; (d) the evolution of system structures and business combinations; (e) the governance implications of an economy in transition; and, notably, (f) the challenges and opportunities arising from the March, 2010, enactment of the Patient Protection and Affordable Care Act (PPACA).

Based on these trends, our ''top ten'' list of major nonprofit corporate law developments for health care providers in 2010 is as follows..." Read on>>

- New Limits on Online Marketing: The Implications for Nonprofit Organizations (by Venable LLP):

"Many nonprofit organizations that market online may rely upon recurring charges for enrollment in membership offers, and other subscription programs, as well as online processing of payment transactions. But now, online advertisers, marketers and merchants will have to comply with a new set of requirements under the "Restore Online Shoppers' Confidence Act," S. 3386 (the "Act"). The Act was signed into law by President Obama on December 29, 2010. As a result, nonprofit organizations with online sales - especially ones with third party marketing relationships or that sell "continuity" programs (e.g., recurring periodic billing) - will need to review their online activities carefully under the new law to ensure compliance..." Read on>>

- Board Members Beware - SEC Regulatory Authority May Cast Wide Net (by Thompson Coburn LLP):

"Governmental board members and board members of nonprofit organizations may be "in the sights" of the Securities and Exchange Commission (SEC) if their organizations are involved in the issuance of municipal bonds, including tax-exempt bonds. Federal statutes known as the Dodd-Frank Wall Street Reform and Consumer Protection Act recently adopted by Congress (the Act) amended the Securities Exchange Act of 1934 (the 34 Act) to add a new requirement that "municipal advisors" register with the SEC. The definition of municipal advisor, as interpreted by the SEC, is potentially quite broad and could include appointed members of the governing body of an issuer of municipal bonds or the entity borrowing the proceeds thereof. For example, the Act could apply to the board members of a local industrial development authority or a private college..." Read on>>

- The Director's Dozen: Prudent Activities for Governing Boards of Nonprofit Corporations (by Foley Hoag):

"Directors of nonprofit corporations owe fiduciary obligations to the corporation. They are bound by Massachusetts law to perform their duties as directors in good faith, in a manner reasonably believed to be in the best interests of the corporation, and with such care as an ordinarily prudent person in a similar position would exercise under similar circumstances. As stewards of the nonprofit corporation, directors are required (1) to act with care in their oversight and, (2) to keep the interests of the corporation paramount above their own personal interests when acting for, or on behalf of the corporation. These legal duties are known as the duty of care and the duty of loyalty.

The following guidelines describe some actions directors should take to fulfill their legal duties..." Read on>>

- New Limits on Nonprofit Securities Exemption (by Warner Norcross & Judd):

"Effective Jan. 1, 2011, debt securities of nonprofit organizations will qualify for the nonprofit exemption from registration in Michigan only if the maximum offering amount is $500,000 or less and the securities are sold exclusively to bona fide members of the organization without payment of a commission or consulting fee.

The process for completing a registration by qualification of nonprofit organization debt securities has been simplified, however, and may be accomplished by filing the offering documents with the Michigan Office of Financial and Insurance Regulation (OFIR) and paying a $250 flat fee. For nonprofit organizations, the registration fee will not be calculated based on the offering amount in Michigan. The registration filing must be made at least 20 business days before making offers or sales in the state..." Read on>>

- Yellow Flags, Red Flags: What's a Board to Do? (by McDermott Will & Emery):

"In two recent instances, a nasty and salacious controversy between a reputable nonprofit health care organization and its CEO has served to shine a bright (and unfavorable) light on the subject of board responsiveness to suspicious conduct or events.

Both instances fueled intense media scrutiny and prompted an internal legal investigation of the underlying facts. One spawned competing litigation complaints filed by the board and the CEO, respectively, and allegedly sparked an IRS examination. The other involved a state attorney general review of the board's responsive conduct, the results of which review were made publicly available. Both instances resulted in extraordinary financial and reputational damage to the involved institutions and individuals. Most notably, in both instances warning signs were presented to individual board members (if not the full board) long before events prompted the full board to commence an investigation..." Read on>>

...


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January 13, 2011

Massachusetts Ibanez Foreclosure Decision: What Lawyers Are Saying

For your reference, here's a look at what JD Supra lawyers are saying about the recent Massachusetts Supreme Judicial Court decision in U.S. Bank, Nat'l Ass'n. v. Ibanez, "where two mortgage foreclosures were invalidated because the foreclosing lenders were not able to produce sufficient proof of mortgage ownership."

- MA Supreme Judicial Court Affirms Land Court Ruling in Ibanez Decision (by Partridge Snow):

"The SJC is one of the first state supreme courts to weigh in on the evidence necessary for foreclosing lenders to demonstrate that they validly hold mortgages they are attempting to foreclose. Last week the suspense ended. On January 7, 2011, the SJC issued its opinion in the Ibanez case that makes clear that the foreclosing lender must be able to document ownership of the mortgage to be foreclosed before issuing notices of foreclosure. Importantly, however, the SJC did not restrict evidence of mortgage ownership to fully executed assignments in "recordable form," as the Land Court had found...

The effects of the Ibanez case on the industry are uncertain. On the one hand, the holding -- that to fulfill the statutory power of sale requirements, a foreclosing party must be "[t]he mortgagee or his administrators, successors or assigns" -- does no more than apply legal principles and requirements already well established in Massachusetts law. The SJC acknowledged as much, by stating that the ruling is not limited to prospective foreclosures because it does not reflect a change in the law. On the other hand..."

Read Patridge Snow's complete analysis of Ibanez here>>

- Banks Lose Important Foreclosure Case In Massachusetts High Court (by Sheppard Mullin):

"One of the arguments made by US Bank and Wells Fargo was that, because they held the mortgage note, they had a sufficient financial interest in the mortgage to allow them to foreclose. The law of many states provides that the mortgage follows the note, so that if a party has possession of the note, it is presumed to have good title to the mortgage. Massachusetts, however, is not one of those states. In Massachusetts, where a note has been assigned but there is no written assignment of the mortgage underlying the note, the assignment of the note does not carry with it the assignment of the mortgage. Rather, the holder of the mortgage holds the mortgage in trust for the purchaser of the note, who has an equitable right to obtain an assignment of the mortgage, which may be accomplished by filing an action in court and obtaining an equitable order of assignment. In the absence of a valid written assignment of a mortgage or a court order of assignment (neither of which were provided by either US Bank or Wells Fargo), the mortgage holder remains unchanged..."

Read all of Sheppard Mullin's Ibanez analysis here>>

- Apocalypse Now? Will The Massachusetts Ibanez Case Unravel Widespread Irregularities In The Residential Securitized Mortgage Market? (by Richard Vetstein):

"The Ibanez ruling clearly invalidates a common practice in the sub-prime mortgage securitization industry of assigning the promissory note and mortgage in blank and not recording it until after the foreclosure process has started. The Court held that there must be evidence of a valid assignment of the mortgage at the time the foreclosure process starts which would establish the current ownership of the mortgage...

...The major problem for banks is mounting evidence is that originating lenders never transferred a vast number of loans into the securitized trusts in the first place. Josh Rosner, a well respected financial analyst, issued a client advisory in October 2010, advising of widespread violations of pooling and servicing agreements on mortgages. Mr. Rosner counseled that although PSA's require transfer of the promissory notes into the securitized trusts, that hardly ever occurred in the white hot run-up of securitized loans in the last decade. He also says that the mortgage assignments which must accompany each note are routinely ignored or left blank. (This was the major problem in the Ibanez case).

Before the Ibanez ruling came down Bloomberg News said the best scenario is that the disputes are deemed as legal technicalities, which would cause a one-year delay in foreclosures. In the medium case, years of litigation will ensue. In the worst case, the problem becomes systemic, causing ―the mortgage market to grind to a halt as title insurers refuse to insure mortgages involving existing homes Well, we now know from the Ibanez decision that this is hardly a ―legal technicality. So we are in the medium or worst case scenarios. For those thousands (or millions?) of defaulted loans which were ―assigned in blank. I'm simply not sure if or how mortgage lenders are going to be able to cure the title defects they created. It's going to take some major effort and creative lawyering, that's for sure..."

Read Richard Vetstein's complete analysis of Ibanez here>>

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Also see:

- US Bank, N.A. v. Ibanez, Slip Opinion, SJC-10694 (posted by George Bourguignon):

"The Massachusetts Supreme Judicial Court has issued its long awaited decision related to foreclosure defense: US Bank, N.A. v. Ibanez. This decision was decided in the consumer's favor and ruled that the prior foreclosures that occurred in Springfield, Massachusetts were not proper. The court affirmed that the banks did not have title to the mortgage when they published the required notices of the expected foreclosure sale or actually conducted the foreclosure sale. It is reported that this case will establish that many prior foreclosures were conducted improperly..."

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January 5, 2011

Net Neutrality, the FCC, and Title II: What Lawyers are Saying

[Updated January, 24, 2011:]

Copy: FCC's Report & Order on Net Neutrality (194 pages; posted by Gerry Elman):

"On Dec. 23, 2010, the FCC released this controversial order on broadband industry policies. Whether the FCC has jurisdiction and power to govern this subject matter, and whether this achieves the objective of net neutrality, is hotly debated." See report>>

- Net Neutrality at the FCC: A Critique of the Legal Reasoning of its Net Neutrality Order (by Davis Wright Tremaine LLP):

"The rules are based on the FCC's determination that regulation is necessary to assure the continued growth and development of the Internet. That is a departure from previous FCC administrations, for whom, with a few exceptions, "Hands off the Internet" was not just a slogan, but a policy.

Among those deregulatory programs, most relevant for present purposes are those classifying broadband Internet access as an "information service," rather than a "telecommunications service." The "classification orders" reflected the FCC's view that broadband should be exempt from traditional common carrier / public utility regulation (e.g., the obligation to provide just, reasonable, and nondiscriminatory service upon request, transfer of control oversight, and possible regulation of rates, among others). The FCC viewed such regulation as a deterrent to broadband investment..." Read more>>

- FCC Approves Controversial Net Neutrality Rules (by Sheppard Mullin):

"According to the Order, the rules can be summarized as achieving three main objectives: (i) transparency; (ii) no blocking; and (iii) no unreasonable discrimination. More specifically, 'fixed and mobile broadband providers must disclose network management practices, performance characteristics, and terms and conditions of their broadband services.'..." Read more>>

- FCC Net Neutrality Announcement-December 1, 2010 (by Owen Kurtin):

"Yesterdayʼs announcement by Federal Communications Commission Chairman Julius Genachowski that the Commission will pursue enactment of rules to ensure unblocked, non-discriminatory access to the Internet without attempting to re-classify broadband from its existing classification as Communications Act of 1934 Title I 'Information Service' to Title II 'Telecommunications Service' is a victory for net neutrality proponents and common sense, as well as a vindication of the position we took in May. The rules may be adopted at a full Commission meeting on December 21..." Read more>>

- Why Net Neutrality Rules and Broadband "Third Way" Reclassification Are Unnecessary and Unlawful (by Glenn Manishin, Duane Morris LLP):

"The highly polarized debate over so-called net neutrality at the Federal Communications Commission exposes serious philosophical differences about the appropriate role of government in managing technological change. Neither side is unfortunately free either from hyperbole or fear-mongering.1 And neither side is completely right..." An 18-page analysis by noted tech policy lawyer, Glenn Manishin. Read more>>

 Net Neutrality from the JD Supra Archive:

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December 29, 2010

The Legal Year in Review: What Lawyers Are Saying

For your interest, here's a "Year in Review" reading list from lawyers and law firms on JD Supra. Covering HR, taxes, banking & finance, IP law, business, and other topics, this diverse collection of posts includes analysis of important legal developments in 2010, with suggestions of what to do in the new year:

- Top Trademark Trends in 2010 (by Erik Pelton):

In IP Law: "In 2010, many of the biggest news stories touched on the world of trademarks in some manner. Facebook and Apple were active taking steps to register and protect a variety of trademarks. But the most notable trademark story of 2010 was the release - and subsequent retraction - of a new GAP® logo. Here are the 10 most significant trends in trademarks for 2010..." Read more>>

- Privacy and Data Protection Year In Review (by McDermott Will & Emery):

In Privacy Law: "Privacy and data protection are an exploding area of focus for international and U.S. regulators. Most businesses are now well aware that if their information practices are not already regulated, they likely will be soon. This article gives in-house counsel and others responsible for privacy and data protection in the United States and Europe an overview of the major developments in this area in 2010, as well as a prediction of what is to come in 2011..." Read more>>

- Top 10 FCPA Investigations of 2010 (by Thomas Fox):

In Securities Law: "While enforcement actions can provide the some of the DOJ/SEC most current thinking on FCPA compliance best practices the public information made available during investigations can provide to the FCPA, Bribery Act or other compliance professional many opportunities for teaching points and lessons learned by others. So with the opportunity for many educational occasions in mind we present our favorite investigations of 2010..." (also see Part II of this post). Read more>>

- HR Resolutions for 2011 (by Warner Norcross & Judd):

In Employment Law: "Review Your Employee Handbook. This is a good item to have on your to-do list every year, given how often the landscape changes with new laws, regulations and court interpretations. Particular attention should be paid to your Equal Employment Opportunity and workplace harassment policies (see discussion below). You should also address confidential information and how employees are expected to handle it..." Read more>>

[Also from Warner Norcross, see: It Is Time To Start Thinking About Those New Year's Resolutions]

- 2011 Forecast (by Sanford Millar):

In Tax Law: "In 2011 we can expect greater emphasis on international reporting and tax compliance. Foreign finanicial institutions will further gear up for imposition of the FATCA (Foreign Account Tax Compliance Act) making it harder to open and maintain foreign accounts. U.S. taxpayers will face new disclosure rules for foreign finanicial assets. These assets will need to be scheduled for tax return purposes if they are $50,000 or more. Foreign held trusts, corporations and partnerships will need to be disclosed. More indictments are likely resulting from the UBS and related cases..." Read more>>

- Tax Relief Act of 2010: Year-End Planning and Beyond (by Duane Morris LLP):

In Tax Law: "On December 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (the "Act"). In addition to extending the Bush income tax cuts until December 31, 2012, the Act contains numerous changes to the federal estate, gift and generation-skipping transfer (GST) tax laws, which also will expire on December 31, 2012. Here is a summary of the estate, gift and GST tax provisions included in the Act. It is important to note that one change in particular - namely, the elimination of any GST tax on certain 2010 transfers - may require action before year-end..." Read more>>

- Death Sentences Are Given Less, Fewer Executions in 2010: DPIC Report (by Terence Lenamon):

In Criminal Law: "The Death Penalty Information Center has issued its annual report on the state of capital punishment in this country. According to the DPIC, the forty-six (46) executions that were conducted this year constitute a twelve percent (12%) decrease in the death penalty. (In 2009, there were 52 executions in the United States; in 2000, there were 85.) Capital punishment therefore declined in the first decade of the 21st Century. However, there are 3261 people still living on American Death Rows today and each of them still faces a sentence of death..." Read more>>
 
- Looking To End Of Year And 2011 (by Sands Anderson):

In Auto Law: "Increased sales for the closing weeks of 2010 are encouraged by the availability of 0% financing, often coupled with a rebate. This coupled with manufacturer incentives to dealers to move product, should help drive sales upward, but will only cut losses in a year that will be one of the slowest in decades. The optimism for 2011 is based on more durable premises- new and better products (especially from the U.S. "Big Three"), some increased availability of consumer financing (even for the sub-prime market), and the U.S. consumers "aging fleet". " Read more>>

- A Collection of Venable's Credit Counseling and Debt Services Legal Articles and Presentations from the Second Half of 2010 (by Venable LLP):

In Banking & Finance Law: "During the second half of 2010, there has been a great deal of federal and state activity touching on credit counseling and debt services, including: new rules for debt relief services under the Federal Trade Commission's Telemarketing Sales Rule and mortgage assistance relief services rulemaking; major enforcement actions by the FTC, state regulators, and state Attorneys General against DMP providers, debt settlement companies, mortgage foreclosure consultants, and lead generators..." Read more>>

- Looking Ahead to 2011: Year End Employee Benefit Plan Compliance Items (by Dinsmore Shohl):

In Employment Law: "While the tri-agencies of Treasury, Labor and Health & Human Services (the "Departments") have issued a flurry of regulations and model notices, many issues are still in need of further clarification. In the interim, the Departments have indicated that employers should still take steps toward good faith compliance with the law..." Read more>>

- Health Care Reform Checklist (by Warner Norcross & Judd):

In Health Law: "As the year draws to a close, employers should review what actions they've taken with respect to health care reform for 2010 and begin planning for changes in 2011. This checklist will hopefully make the daunting task a little easier..." Read more>>

- Lights Out for the DREAM Act in 2010 (by Ronald Shapiro):

In Immigration Law: "The Development, Relief and Education for Alien Minors Act (the "DREAM Act") fell five votes short of the necessary 60 votes for obtaining consideration on the Senate floor on Friday (Dec. 17th) bringing down the curtain on any further legislative action in 2010. However, President Obama vowed that his administration would not give up on passing some form of legislation offering a path to citizenship for the children of illegal aliens who either secure a college education or enlist in military service..." Read more>>

- Mopping Up 2010 and What to Expect in 2011 (by Ron Gitter):

In Real Estate Law: "A look back at the important developments in New York co-ops and condos for 2010 and what to expect in 2011..." Read more>>

- Top 10 Expert Rulings of 2010 (by IMS ExpertServices):

In Law Practice: "The most important judicial action involving expert witnesses in 2010 came in the year's waning days. On Dec. 6, the Supreme Court agreed to hear a case that could decide the standard for use of expert testimony when a court is weighing whether to certify a class action. The case was already notable, having certified the largest employment class action in U.S. history. But that was not the only significant court case involving expert witnesses during 2010..." Read more>>

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Related:

- Popular Legal Topics in 2010
- What Surprised You In 2010? Perspectives from Legal Professionals
- Tax Relief Act of 2010: What Lawyers Are Saying
- Year-End Tax Planning: What Lawyers Are Saying


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December 21, 2010

Tax Relief Act of 2010: What Lawyers Are Saying

For your reference, here's a JD Supra reading list to do with the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 signed into law by President Obama on December 17 of this year:

- Tax Relief Act of 2010 passed by Congress (by Schottenstein Zox & Dunn Co., LPA):

"The Tax Relief Act provides extensive tax relief for taxpayers at all income levels. Estimated to cost $858 billion, the Act includes a two-year extension of the Bush-era tax cuts, an extension of the alternative minimum tax (AMT) patch, a temporary payroll tax reduction, restoration of the estate tax for individuals with estates in excess of $5 million and extensions of several other tax breaks..." Read more>>

- 2010 Tax Relief Act (by Thompson Coburn LLP):

"The Act, which only covers years 2010 through 2012, contains a wide variety of income and other tax-related provisions. Included here is a brief summary of the gift, estate and generation-skipping transfer (GST) tax provisions followed by a few planning considerations, some of which need to be implemented no later than December 31, 2010..." Read more>>

- President Signs Tax Relief, Unemployment Insurance Reauthorization and Jobs Creation Act of 2010 (by Luce Forward):

In this 11-page alert: "Individual Tax Rate Provisions; Alternative Minimum Tax Relief; Individual Deductions and Credits; Education Benefits; Stock/Bond Provisions; Disaster/Economic Development Incentives; Estate and Gift Tax Provisions; Business Incentives; Social Security Tax Cut; Energy Incentives; Business Tax Relief; and, GO Zone Disaster Relief..." Read more>>

- Tax Relief and Job Creation Act Becomes Law (by Dinsmore & Shohl LLP):

"For businesses, the 2010 Tax Act increases bonus depreciation to 100 percent, allowing the immediate deduction of all investment, for qualified investments (generally, machinery, equipment and furniture, computer software and certain leasehold improvements) made after September 8, 2010 and before January 1, 2012, and permits 50 percent bonus depreciation for qualified property placed in service during calendar year 2012..." Read more>>

- President Signs the 2010 Tax Relief Act Giving Taxpayers a Measure of Tax Certainty (by Manatt Phelps):

"The 2010 Tax Relief Act provides much-needed certainty for individual and business tax planning over the next two years. In theory, it should inject billions of dollars into the U.S. economy..." Read more>>
  
- Significant Modifications Made to the Federal Estate & Gift Tax (by Fox Rothschild):

"The exclusion from estate tax is increased to $5 million and is further indexed for inflation for decedents dying after 2011. The maximum federal estate tax rate as well as the generation skipping transfer tax rate are each set at 35 percent. The gift tax continues to remain in effect with the applicable exclusion remaining at $1 million per individual for taxable gifts made during 2010 and subject to a 35 percent rate. For gifts made after 2010..." Read more>>

- How the New Estate Tax Law Affects You and Your Estate Plan (by Darlynn Morgan):

"Well for many of my clients, it means business as usual. The folks worth over $10 million have historically planned for estate taxes, as their net worth has always pushed them over the Bush-era exemption level. So nothing changes there. And of course anyone with a net worth under $5 million (or $10 million for couples) can now rest easy knowing they will legally escape the grasp of Uncle Sam should they pass away over the next two years. Yet what's important to remember is that this new tax law is not permanent..." Read more>>

- Extension on 100% Tax Exemption for Gain on Certain Qualified Small Business Stock (by Foley Hoag LLP):

"The 2010 Tax Relief Act extends a tax benefit whereby gains from the sale of certain qualified small business stock ("QSBS") can qualify for a total exclusion from federal income taxation. This tax benefit was set to expire on December 31, 2010. The new law would extend the benefit to stock acquired from qualifying issuing corporations after September 27, 2010 and on or before December 31, 2011, provided certain holding and other requirements are satisfied. Under the extension..." Read more>>

- Payroll Changes Require Immediate Action as Result of New Tax Package (by Partridge Snow & Hahn LLP):

"The Act provides a two percentage point payroll tax cut for employees, reducing their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid. This reduced Social Security withholding will have no effect on the employee's future Social Security benefits..." Read more>>

- President Obama Signs 2010 Tax Relief Act (by Morrison & Foerster):

"The Act extends the Bush era tax rates for individuals. In addition to extending favorable rates, it also has some important business incentive provisions that our clients should be aware of. Finally, the Act includes temporary modifications to the estate, gift and generation-skipping transfer tax rules. This Client Alert summarizes the key provisions..." Read more>>

Also see earlier alerts:

Tax Relief Act Has Small Bus Investment Incentive (Sanford Millar)
Extension of the Bush Tax Cuts (Venable LLP)
Details of New Tax Bill Beginning to Emerge (Luce Forward)

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December 16, 2010

Cloud Computing and Business: A JD Supra Legal Reader

For your reference, here's what lawyers and law firms are writing about cloud computing. A business law reading list:

- A Legal Guide to Cloud Computing (by Scott & Scott LLP):

"Even though cloud computing promises huge cost savings, the risks associated with cloud computing are significant. One of the main characteristics of a cloud-based service is that customer data is being stored and processed by the vendor. This basic design feature creates business risks, regulatory responsibilities, and legal risks which need to be identified and addressed by both the customer and the vendor. Each party must completely understand these risks in order to have a successful cloud computing deal..." Read more>>

- Safely Storing Confidential Customer Data in the Cloud (by Dinsmore & Shohl):

"...Businesses should understand, both from a legal and technological perspective, how to use cloud computing safely to store personal data about their customers. Some privacy and data security laws have been in place for years. For instance, HIPAA regulates the privacy and security of medical information, the Graham-Leach-Bliley Act controls how financial institutions must safeguard customer data, and the European Union's privacy directives regulate..." Read more>>

- Who is Mining the Store? Corporate Governance and Data Privacy/Security Issues (by Fox Rothschild):

"The key component to the successful implementation of cloud computing is the agreement between the customer and the third-party service provider. To avoid costly mistakes, a customer must craft an agreement that addresses anticipated problems such as: (i) where will the data reside and will it be backed up? (ii) who will have access to the data and will there be different levels of access? (iii)who will supervise the project and will there be monitoring and auditing of the policies and procedures? and (iv) what security measures are in place?" Read more>>

- Cloud Computing: The Issues Are Cloudy in the Clouds (by John Watkins):

Includes "a list of issues that one might wish to consider asking a vendor or otherwise considering in entering into a possible cloud computing arrangement: What contractual obligation will you assume to protect my data? What contractual obligation will you assume regarding uptime, if any?"  Read more>>

- How a data-escrow agreement with your hosting provider can potentially save your business (by Jason Molder):

"...the hosting provider is typically required to mirror the data you store with it (at an agreed-upon frequency) with yet another third party, the data escrow agent. The data escrow agent then holds a copy of the data, should access to it ever be necessary. Both the data escrow agreement with your hosting provider, and the terms of the actual escrow agreement with the data escrow agent, should address in detail who can access the data, when, and under what terms." Read more>>

- When Cloud Computing Meets E-Discovery Obligations (by Carlton Fields):

"A company utilizing a cloud vendor should make every effort to avoid a situation in which it is charged with the ability to preserve and produce electronically stored information (ESI) but lacks the authority - or at least the clear authority - to discharge its obligations..." Read more>>

- Protecting Innovation in Cloud Computing (by Christopher Palermo):

"...does cloud computing require fundamental changes in the way that practitioners approach patent drafting and claiming, or other issues of innovation or intellectual property protection? This article concludes that the answer is no, but that special sensitivity is needed to the particular technical context of cloud computing inventions in performing the ordinary services of patent counsel." Read more>>

Cloud Computing and Outsourcing: Is Data Lost in the Fog? (by Morrison & Foerster):

Written June, 2009 - "...at this point in its development, outsourced cloud computing fails to address important questions of legal risk associated with knowing where data is stored and transmitted. This Alert discusses several of these issues, which must be considered by companies turning to third-party cloud computing solutions." Read more>>

- The Ethics and Security of Cloud Computing (by Jack Newton, Clio):

Focused on considerations in the legal profession, but offering insights and perspective of value to all businesses. Includes overviews of the benefits of cloud, ethics issues, a security checklist, a privacy checklist... Read more>>

(Also see from Clio: Is Cloud Computing Green Computing?)

Related: On Cloud Computing and the Legal Profession


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December 13, 2010

Year-End Tax Planning: What Lawyers Are Saying

For your reference, here's a look at what lawyers and law firms on JD Supra are writing about year-end tax planning [Updated 12/21]:

- Donate to Charity for Tax Benefits (by Darrin Mish, Tampa Tax Attorney):

"Most of us know that donations in cash will make you eligible for tax deductions. All charities will accept checks and most would also accept gifts designated for specific activities you like. If you wish to designate your gift toward a particular effort of your charity, just make your wishes known to them. You can also gain tax benefts is by giving gifts of property to your charity. All you need to do is itemize the gifts you gave on your income tax return and you can deduct the value of your gifts..." Read more>>

- Time for Corporations to Get Ready to Issue Annual ISO/ESPP Information Statements and File New Information... (by Sheppard Mullin):

"In January 2011, Employers must furnish each employee who exercised incentive stock options ("ISOs") or sold or otherwise transferred shares acquired under an employee stock purchase plan ("ESPP") during 2010 with a detailed information statement by January 31, 2011, and must also file an information return with the Internal Revenue Service (the "IRS") by February 28, 2011 (March 15, 2011 for corporations filing electronically)..." Read more>>

- Estate Planning Outlook: Are You Prepared for the Impending Tax Law Change? (by Partridge Snow & Hahn):

"As we write this, the federal estate and generation-skipping transfer ("GST") taxes are scheduled to be reinstated on January 1, 2011, with a federal estate tax exemption of $1,000,000 and a maximum tax rate of 55%. The GST exemption will be $1,360,000. After years of benefit from a rising exemption (from $1,000,000 in 2002 to $3,500,000 in 2009) and a year of total repeal in 2010, we find ourselves once again facing higher federal estate tax rates and a limited exemption..." Read more>>

- Why Now is the Time to Give: 2010 Presents Unique Gifting Opportunities (by Jackson Walker):

"Because the current federal gift tax rate is historically low, and because there is no generation-skipping transfer ("GST") tax applicable to generation-skipping transfers made this year, 2010 presents unique gifting opportunities for individuals wishing to make taxable gifts to children, grandchildren or other loved ones. However, time is of the essence..." Read more>>

- Year End Opportunities for Wealth Transfer and Tax Savings to Consider (by Lane Powell PC):

"Many of the current income tax rates were enacted as part of comprehensive tax legislation enacted in 2001. This legislation is scheduled to expire at the end of 2010 and it is uncertain what path the new Congress will take in January 2011. However, if Congress does not act, individual income tax rates will rise in 2011, returning to the rates applicable in 2001. As with the gift planning opportunities identified in the next section below, the strong potential for an increase in individual income tax rates in 2011 creates incentives for 2010 year-end tax planning strategies..." Read more>>

- 2010 Year-End Estate Planning Advisory (by Katten Muchin):

"If you wish to make gifts this year to take advantage of the 35% gift tax rate but would like to hedge against a possible retroactive reinstatement of the GST tax and a higher federal gift tax rate, you should consider making a gift to a "disclaimer trust" for your spouse. Before the end of this year you would create a lifetime trust for your spouse. The gift would not be subject to gift tax as long as your spouse is a U.S. citizen and the trust is created to qualify as what is known as a QTIP trust, which requires your spouse to receive all of the trust income currently..." Read more>>

- Federal Law Excludes 100% of Gains on Qualified Small Business Stock Acquired By December 31, 2010 (by Fox Rothschild):

"On September 27, 2010, President Obama signed the Small Business Jobs Act of 2010 aimed at encouraging investment in small businesses. One of the Act's most important provisions is the amendment of Internal Revenue Code Section 1202 that permits the temporary exclusion of 100 percent of the gains on the sale or exchange of qualified small business stock. However, taxpayers must act within limited time periods to take advantage of this provision as the 100 percent exclusion only applies to qualified small business stock acquired between September 27, 2010, and December 31, 2010..." Read more>>

- Year-End Executive Compensation Matters and Issues Going Forward (by Manatt Phelps):

"As we approach the end of the year, companies need to be mindful that their ability to correct documentary failures of Section 409A with little or no adverse tax consequences is rapidly closing and that new executive compensation reporting requirements will be required in the upcoming year, pursuant to the Dodd-Frank Act..." Read more>>

Additional year-end tax articles & alerts:


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October 19, 2010

Immigration Reform: News & Legal Info

Over the past few weeks we've seen an uptick of interest in an already hot topic - and so, for your reference, here's a reading list of Immigration Reform articles and news updates, as written by leading lawyers and law firms and posted on JD Supra:

- A Final Chance for 2010 Immigration Reform (by Ronald Shapiro)

"Just before Congress ended its last session to allow for re-election campaigning, Senators Robert Menendez (D-NJ) and Patrick Leahy (D-VT) introduced the Comprehensive Immigration Reform Act of 2010... If the Act should pass, it would tighten border security and immigration enforcement, while creating a path to citizenship and integration for undocumented workers."

- IMMIGRATION REFORM: The One Sided Debate (by Bashyam Spiro, LLP)

"The immigration debate over the past five years has focused solely on illegal immigration and illegal aliens. This debate has missed an entire demographic of immigrants - those who have followed the rules and are stuck in an inefficient system that keeps them in limbo for many years..."

- Why we need the DREAM ACT now! (by Nachman & Associates, P.C. )

"If passed, the DREAM Act would make it possible for 1 million young undocumented immigrants to become lawful permanent residents. The bill would permit immigrant students who graduate from US high schools, are of good moral character, arrived in the US as children, and have been in the country continuously for at least five years prior to the bill's enactment, the opportunity to earn conditional permanent residence..."

[Also see: DREAM Act Suspended by Filibuster...]

- The Myth of Special Treatment for Illegals (by Szabo, Zelnick & Erickson, P.C.)

March, 2009 analysis: "There's a common misconception that by illegally entering the U.S., illegal aliens are able to apply for permanent resident status sooner than had they remained in their home country and applied from abroad. The reality is that, for the vast majority of illegal aliens, there is simply no process that would allow for them to be considered for permanent resident status. This is why so many continue to live in the shadows and fringes..."

- What's Ahead for Immigration Reform, 2010 Style (by Fox Rothschild)

January 2010 analysis: "Serious and effective enforcement needs to include enhanced border control, sanctions against unscrupulous employers and an accurate E-verify system, among other things. It should include speedy and fair hearings for those subject to removal. But other troubling issues ahead include whether states and cities should pass their own immigration-related laws and have local police be the enforcers..."

- Implementing Immigration Reform in The Age of Belt-Tightening (by Siskind Susser Bland, P.C.)

March 2009 analysis: "Even if the funds were appropriated, the mammoth task of rolling out a legalization program along the lines being discussed would take time. In fact, it could take USCIS years to fully process the applications for the millions of individuals expected to apply. The proposals call for extensive background checks, English examinations, medical examinations, payment of back taxes, verification of residency in the US, etc. There are strong policy arguments in favor of these requirements, but achieving the goal of beginning to integrate these people into American society would be delayed an intolerably long period..."

Also see:

- The United States Needs Meaningful Immigration Reform, Not A Closed Door of Fear (by Copy Central 100 Montgomery)

- Can Reform Boost the U.S. Economy? (by Szabo, Zelnick & Erickson, P.C.)

- The Case for Immigration Reform (by Ronald Shapiro)

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August 9, 2010

What HR Professionals Are Reading Now (Employment Law Update)

Culled from JD Supra's Labor & Employment pages and our Legal Updates application on LinkedIn, here's a look at some of the top documents being read by HR professionals right now:

  1. Ninth Circuit Finds Insurance Agent is Independent Contractor, Not Employee ... [Ford & Harrison LLP]
  2. Why Every Business Should Have A Social Media Policy ... [Sheppard Mullin]
  3. Troublesome Changes to Temp Work Visa Forms ... [Ronald Shapiro]
  4. DOL Issues New Rules Regarding Service Provider Fee Disclosures ... [Katten]
  5. Defending the Muffin Man and Protecting Your Client From Intellectual Property Crimes ... [Fox Rothschild]
  6. FLSA Update: Clothes-Changing Exception Does Not Apply to Protective Gear ... [Dinsmore & Shohl LLP]
  7. Dodd-Frank Act Means No Summer Vacation for Compensation Committees ... [Manatt]
  8. Sorry boss, I didn't know you were having sex in the office!! ... [Drew Capuder]
  9. Health Care Reform: Grandfathered Plan Regulations ... [Thompson Coburn]
  10. DOL Expands Employees Who May Qualify for FMLA Leave ... [Katten]

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July 27, 2010

Dodd-Frank Act Legal Analysis - Finance Law Brief

We've seen a good amount of key analysis published on JD Supra relating to the recently passed Dodd-Frank Act. For your reference, here's a look at some of it:

Dodd-Frank Act:
A JD Supra Finance Law Brief

Securities Industry Practice Alert - The Dodd-Frank Wall Street Reform and Consumer Protection Act [Fox Rothschild]
The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) was signed into law by President Obama on July 21, 2010. The official purpose of the law is to "promote the financial stability of the United States by improving accountability and transparency in the financial system, to end 'too big to fail,' to protect the american taxpayer by ending bailouts, to protect consumers from abusive financial services practices and for other purposes." The Dodd-Frank act affects multiple industries and legislation, containing numerous amendments to existing laws and creating several new laws as well. This alert summarizes these areas.

The Dodd-Frank Act: Non-Binding "Say-on-Pay" at Public Companies [Foley Hoag]
Among the many elements of the massive Dodd-Frank Act are provisions applicable to public companies requiring defined "say-on-pay" votes. These are shareholder votes on executive compensation generally, and executive compensation relating to business combinations, known as "golden parachutes" ... Under the Act public companies must...offer shareholders the opportunity to vote on two resolutions... [more]

Dodd-Frank Redefines "Accredited Investor" [Sheppard Mullin]
Prior to the enactment of the Dodd-Frank Act ... the definition of an "accredited investor" under Rule 215 of the Securities Act of 1933 and Rule 501 of Regulation D included a natural person with a net worth of at least $1 million, either individually or jointly with the investor's spouse, and the value of such investor's primary residence was included in the calculation of his or her net worth for purposes of determining "accredited investor" status... [more]

[See also: Congress Changes the "Accredited Investor" Calculation - Effective Immediately - Warner Norcross & Judd]

Financial Reform Legislation Imposes New Requirements Relating to Asset-Backed Securities [Katten Muchin]
The bill contains, among other things, provisions addressing risk retention, conflict of interest issues, and the treatment of Nationally Recognized Statistical Rating Organizations (NRSROs) under existing securities laws... [more]

The Corporate Governance and Compensation Provisions of the Dodd-Frank Act [Morrison & Foerster]
The Act includes several important corporate governance and compensation provisions that will impact most public companies... Because many of these provisions - including Say-on-Pay - will likely impact the 2011 proxy season, it is important to begin preparing now for all of the new statutory requirements, the SEC's implementing regulations, and new stock exchange listing standards. [more]

Many Private Fund Managers Must Register as Investment Advisers under Financial Reform Legislation [Edwards Angell]
The Dodd-Frank Wall Street Reform and Consumer Protection Act... brings significant changes for managers of hedge funds, private equity funds, and - to a lesser but not insignificant extent--venture capital funds as it mandates investment adviser registration and reporting for many private fund managers... [more]

Corporate and Securities Alert: The Dodd-Frank Act: Provisions Affecting Corporate Governance And Executive Compensation Disclosures For All Public Companies [Fenwick & West]
The Act also makes significant changes to corporate governance and executive compensation rules for public companies in all industries. This alert summarizes these new requirements, their effective dates, and early impacts on companies in the technology, life sciences and clean tech industries. [more]


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April 19, 2010

HIRE Act 2010: What It Means to Businesses

For your reference, here's a look at the many legal implications of President Obama's Hiring Incentives to Restore Employment Act (HIRE Act) signed into law on March 18, 2010:

The HIRE Act: A JD Supra Business Law Brief

Hiring Incentives To Restore Employment Act Signed Into Law
...The Act exempts a qualified employer from paying the employer's share of the social security employment taxes (6.2 percent of the first $106,800 of wages) for wages paid in 2010 for any new employee hired after February 3, 2010, and before January 1, 2011, if the new employee (1) was previously unemployed and (2) does not replace another employee of the employer.
[By: Fox Rothschild | In: Labor & Employment Law]

Why Employment History Matters More for 2010 New Hires
...A qualified employee under the HIRE Act is an individual who: began employment with a qualified employer after February 3, 2010, and before January 1, 2011; has been unemployed or employed for less than 40 hours during the 60-day period ending on the date employment relating to the exemption begins; is not a family member of or related in certain other ways to the employer; and is not hired to replace another employee, unless that other employee was terminated for cause or quit voluntarily.
[By: McAfee & Taft | In: Labor & Employment Law]

Significant Tax Changes in Recently-Enacted "HIRE Act"
...The Act extends provisions from the American Recovery and Reinvestment Act of 2009 (the "Recovery Act") that double the amount small businesses can immediately write off their taxes for capital investments and purchases of certain capital expenditures made in 2010 from $125,000 to $250,000 under Internal Revenue Code Section 179.
[By: Sheppard Mullin Richter & Hampton LLP | In: Tax Law]

President Signs HIRE Act - Provides For Business Tax Incentives and New Withholding and Reporting Requirements For Foreign Financial Institutions
...The Act also includes a revenue offset imposing new withholding and reporting obligations on foreign financial institutions in an effort to combat the failure of U.S. persons to report income through the use of foreign financial accounts.
[By: Edwards Angell Palmer & Dodge | In: International Law & Trade]

HIRE Act Allows Direct Subsidies for Issuers of Certain Qualified Tax Credit Bonds
...The HIRE Act allows issuers of certain QTCBs to receive direct subsidy payments, not unlike those already available to issuers of Build America Bonds (BABs) and Recovery Zone Economic Development Bonds.
[By: Edwards Angell Palmer & Dodge | In: Finance & Banking]

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