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Mistakes Happen. To Head Them Off, Training Program for Sales Team is a Must
Chuck Modell's article, "Mistakes happen. To head them off, training program for sales is a must," was published in the November/December 2014 edition of Franchise Times magazine.
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How Many FDDs Do I Need? New Rules on Disclosing Multi-Unit Franchising Arrangements
On September 16, 2014, the North American Securities Administrators Association (“NASAA”) adopted the Multi-Unit Commentary (the “Commentary”) that provides guidance on how multi-unit franchise arrangements are to be disclosed in Franchise Disclosure Documents (“FDDs”). Multi-unit franchise arrangements are known by a myriad of names—including area development, subfranchising, and area representation—but the new guidance is crystal clear: if you are a franchisor with multi-unit franchise arrangements, you will have additional work to do in your next franchise renewal cycle, and may actually have to create multiple versions of your FDD and filings in the registration states.
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Non-Signatory Owner-Operator Bound to Franchise Agreement
Earlier this month, in Everett v. Paul Davis Restoration, Inc., Nos. 12-3407, 13-1036, 2014 U.S. App. LEXIS 21059 (7th Cir. Nov. 3, 2014), the United States Court of Appeals for the Seventh Circuit held that an owner-operator of a property damage restoration services franchise was bound to the terms of a franchise agreement she had never executed because she received a direct benefit from the franchise agreement. Everett follows the trend in other jurisdictions to bind non-signatories to contractual provisions under the doctrine of equitable estoppel.
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It’s Time Again to Restate Your Retirement Plans, According to the IRS
Every six years, employers are required to restate their retirement plans. This includes 401(k) plans and all other qualified plans. (Plans that are “individually drafted” need to be restated every five years and are on a different schedule.) The deadline for completing this process is April 30, 2016, but as a practical matter, companies need to start the process soon.
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Insurance Coverage for Punitive Damages
The article, “Insurance Coverage for Punitive Damages,” surveys the various states’ laws on coverage for punitive damages and addresses issues to consider that may affect whether coverage is found under a policy. Specifically, the choice of law analysis that is applied by a state could make a difference on whether a court will allow or deny coverage for what can be very significant damages.
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New “Responsible Contractor” Requirements in Minnesota
Earlier this year, Governor Mark Dayton signed a controversial new bill into law which is known as the “Responsible Contractor” law. The Responsible Contractor law, which purports to “enhance accountability and transparency” in the procurement of public construction contracts, will impose onerous certification requirements upon contractors who bid on those contracts.
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Employees in California Entitled to Paid Sick Leave in 2015
Under the Healthy Families, Healthy Workplaces Act of 2014, California joined Connecticut as one of two states that require employers to give employees paid sick leave. The California statute will take effect July 1, 2015, and applies to employers that have one or more employees in California. Those employees will be entitled to take up to six days of paid sick leave for personal and family members’ medical reasons.
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Five Things You Need to Know About Trademark Disputes in China
1) Even if you aren’t selling in China, you may need to register your trademark
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Some companies have chosen not to register their trademarks in China, on the assumption that it is unnecessary if they don’t plan to sell their products in the Chinese marketplace, even though their products are manufactured in China. These same companies have been caught flat-footed when their products are manufactured in China for export and resale elsewhere. -
A Knowing Glance… Worthy of Copyright?
The 9th Circuit Court of Appeals, which includes California, is famous for being vigilant when it comes to Silicon Valley and Hollywood. The Court is often in the vanguard about issues involving intellectual property rights. That’s why the February 2014, decision in Garcia v. Google has shaken the movie industry to its core.
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Allocation
“Allocation,” The Reference Handbook on the Commercial General Liability Policy, 2nd Ed., Chapter 13 (ABA 2014)
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Why Employers Should be Concerned about the NLRB General Counsel’s McDonald’s Decision
On July 29, 2014, the National Labor Relations Board General Counsel announced that he would authorize complaints against McDonald’s USA, LLC in over 40 unfair labor practice cases where the legal employers were McDonald’s franchisees. Many employers have incorrectly assumed that this development is relevant solely to franchisors and franchisees. However, the NLRB’s decision in this matter has potential to cause significant ripples in a number of industries.
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No Clean Slates: Unpacking the Complications of Juvenile Expungements in the Wake of In Re Welfare of J.J.P
Nic Puechner's article, "No Clean Slates: Unpacking the Complications of Juvenile Expungements in the Wake of In Re Welfare of J.J.P" appeared in vol. 40, issue 3 of William Mitchell Law Review.
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The Burden of Proof Remains With the Patentee in a Licensee’s Declaratory Judgment Action
The Supreme Court held in a recent unanimous decision that “when a licensee seeks a declaratory judgment against a patentee to establish that there is no infringement, the burden of proving infringement remains with the patentee.” Medtronic, Inc. v. Mirowski Family Ventures, LLC, 134 S. Ct. 843 (2014).
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There Can Be No Induced Infringement in the Absence of Direct Patent Infringement
In Limelight Networks, Inc. v. Akamai Technologies, Inc., the Supreme Court held that a defendant is not liable for inducing patent infringement under 35 U.S.C. § 271(b) when no one has directly infringed a patent under § 271(a) or any other statutory provision.
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Setting the Standard for Indefiniteness of Patent Claims
The Supreme Court recently resolved a question about definiteness with hopes that courts and the patent bar will not be left “at sea without a reliable compass.” In Nautilus, Inc. v. Biosig Instruments, Inc., 134 S. Ct. 2120 (2014), the court held that § 112 of the Patent Act requires “that a patent’s claims, viewed in light of the specification and prosecution history, inform those skilled in the art about the scope of the invention with reasonable certainty.”
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Computer-Implementation of Abstract Idea Not Patent-Eligible
Depending on the details involved, obtaining patent protection for business methods and software may have become more challenging. It has been well established that one cannot obtain a patent which simply protects an abstract idea. That said, in Alice Corp Pty Ltd. v. CLS Bank Int’l, the Supreme Court recently raised the standard of obtaining patent protection for computer-implemented patent methods.
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Patent Troll Legislation: Apparently More Difficult Than Expected -The Wait Continues
Over the past few months, patent trolls, frivolous litigation, non-practicing entities and patent reform have regularly been in the news. Unfortunately, the news and speculation will continue, as legislators are finding it challenging to come up with a solution. For now, nothing will change, but stay tuned.
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Will Copyright Law Stem the Tide of Multimedia Advertising?
The modern world is obsessed with multimedia; everywhere you look people are tweeting, checking Facebook, watching television, or simply surfing the internet. In each case, the user is subjected to an overwhelming number of advertisements. Businesses have a prominent link into consumers’ lives through multimedia but copyright law may have recently presented a significant obstacle to the practice of multimedia advertising. On February 26, 2014, the Court of Appeals for the Ninth Circuit issued a decision that could dramatically hinder the ability of a business to advertise via multimedia.
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Franchising Without Spamming Under Canada’s Anti-Spam Legislation
Canada’s Anti-Spam Legislation, S.C. 2010, c. 23 (Can.), and the regulations promulgated thereunder (“CASL”), is poised to become one of the toughest anti-spam laws in the world when it comes into force on July 1, 2014. And you do not need to be a spammer or even located in Canada to fall under CASL. In fact, CASL will complicate the relationship and marketing and communication strategies between franchisors located outside of Canada and their potential franchisees or customers. Beginning July 1, 2014, no commercial electronic message (“CEM”) may be sent from or received in Canada unless the sender of that message has received either express or implied consent from the recipient (whether an individual or entity), or the CEM is otherwise exempt under CASL. The new law applies to virtually any company that sends any electronic message that, based on the content of the message, has a commercial purpose. The primary difference between the United States’ CAN-SPAM Act and CASL is that the former requires an opt-out procedure for the recipient (e.g., an “unsubscribe” link in a commercial message) whereas the latter requires the recipient opt-in before receiving the message. This article summarizes the scope of CASL, the stiff penalties for non-compliance, and suggestions for complying with CASL.
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Terminating International Master Franchisees
International expansion of a franchise system is often accomplished through master franchising, in which the master franchisee develops the territory, sells franchises, trains franchisees, and supports and oversees the franchisees in the market as if it were the franchisor. However, sometimes the relationship between the franchisor and master franchisee deteriorates, leading the franchisor to terminate the master franchisee. Larkin Hoffman’s franchise litigation team received a favorable decision this year on a very significant international franchise termination case, which led to a number of lessons learned.
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