Posts in Business

The art of preventive negotiation in a license agreement is not practiced solely by means of pen and paper (or word processor); but instead, starts much earlier. The care and attention devoted to the earliest stages of a deal are highly worthwhile. A friend and fellow LES member is fond of saying: “No deal without a meal.” This is emblematic of the fact that a license agreement is no more than an attempt to put in writing what the parties have agreed they are desirous of achieving, and how they propose allocating rights and responsibilities to achieve those ends. Trust is an essential component, and this is built up over time… The term sheet should be focused only on the major terms of consequence. It should not descend to tactics and operations or else it runs the risk of invading the rightful province of detailed negotiation and drafting of the agreement itself, and a needless redundancy. Tactical details are for later, when the investment is clearly justified. Likewise, premature focus on the tactical raises the risk that negotiation of the ultimate agreement becomes a rehash of the term sheet, which risks not only duplication of effort, but inconsistency, misunderstanding, and deviation from the strategic objectives underlying the alliance.

To get the case off the ground, the court will decide whether Equifax can be sued in the first place – it’s tricky, because different federal circuits disagree about when this can happen. So, courts in Delaware, Illinois and Washington DC (for example) would allow the plaintiffs to proceed merely because their data is at risk after a hack. This is pretty easy to show. On the other hand though, New York, Conneticut and North Carolina would need to see not just a leak, but that the leaked data has actually been misused afterwards. Equifax HQ is in Atlanta, the 11th circuit. Although those courts have a history of recognising that difficulty (and so supporting data victim lawsuits), it hasn’t yet come down firmly on the question of risk vs misuse.

Law firm partners are no longer safe in their positions once they attain equity partnership.   That security is a thing of the past.   If you are a law firm partner, I provide below 7 questions that you can answer that will help you determine if you are about to be de-equitized. This article discusses how to determine whether you are at risk of losing your partnership interest and if so, some steps to strengthen your position.   My next article will give you ways to protect yourself should you be in a situation where your equity partnership share could be taken away.

The basement inventor is increasingly rare, although I am old enough (and lucky enough) to know several. Invention in the “real world” is often a messy, team effort of multiple inventors, employers, contracts, research agreements, and funding agreements. As the complexity of invention multiplies, so do opportunities for unintentionally losing or jeopardizing intellectual property rights… There is often more than meets the eye when it comes to ownership of inventions. The benefits of collaboration far outweigh the disadvantages. However, you can take steps to ensure a smooth collaboration by keeping a few legal principles in mind…

As it related to the Google incident, it was first reported that a memo authored by a Google employee, titled “Google’s Ideological Echo Chamber”, was being circulated among Google employees. Later that day, the memo was obtained by the media and made public. The memo’s author was identified in the press as a senior employee named James Damore. In the memo, Damore criticized the efforts of tech companies, Google included, to employ programs and hiring practices concentrating on diversity. Specifically, Damore was critical of tech company initiatives which had the goal of recruiting and employing female engineers.

Giving a lawyer a critique of their work can be difficult. Yet, you cannot improve lawyer performance or achieve quality work product goals without providing feedback. In this article, I will share with you some of the things that I have learned about giving effective feedback in my years of managing lawyers with staff sizes ranging from 10 to over 2,000.

Twitter®, Instagram®, Facebook®, Pinterest® and other social media websites and apps are great avenues for advertising and promotion of one’s business and brand. However, in using social media to promote one’s business, there are a number of pitfalls that one must avoid. Using social media in relation to a business is not the same as using social media for personal, non-commercial use… The issues with using someone else’s copyrights, right of publicity and trademark in social media to promote a business is that the business is arguably profiting off of someone else’s property that does not belong to them. That can and does create a significant amount of conflict. Profiting from another’s property is what separates the use of social media in business from just personal use.

Seattle, WA-based real estate tech firm Redfin went public after an initial public offering that exceeded expectations, reaching $15 per share and a total valuation of $138.5 million. The company offers a tech platform for real estate transactions available through its website and mobile app and relies on salaried employees instead of commission-based real estate agents. Between 2015 and 2016, revenues have surged by 43 percent from $187.3 million up to $267.2 million in 2016.

Lawyers are constantly bombarded by challenges that naturally create fear and anxiety. Many lawyers don’t recognize these fears and fail effectively to deal with them. This causes many lawyers to be unhappy and to provide less than outstanding service to their clients. I identify many of these looming fears and present some practical tips for dealing with them… The consequences of these fears include drinking too much alcohol to relax, being snippy or yelling at people at work, eating too much and getting poor sleep.   You can deal with this stress in much more productive ways and be happier doing so.

  This is going to be a different ride Most high technology companies have a good grasp of the challenges and solutions for dealing with patent trolls. However, successful high technology startups face a threat beyond patent trolls: large corporate patent asserters looking to license their patents. Companies like Microsoft, Qualcomm, and IBM regularly assert their patents for strategic benefit…

Lawyers often wonder how to enhance their marketability and in the process, generate more revenue or improve their image.   After all, success at a firm is about “revenue generation.”  Success in a corporation or in the government also depends on your credibility and your ability to be a “go-to” person within the company or government agency.   To be a successful lawyer, you need to have a brand.  I explain below 6 easy ways to make your mark… Law firms are fighting for a smaller pool of work and as a result, are required to compete for that work at more competitive rates. If you want to get the work and charge higher rates, there must be a reason for the client to hire you. In other words, it’s your brand that counts.

Experience shows that most unfair competition or trade secret theft issues can be resolved without the need for litigation; often, an exchange of letters between the parties’ respective attorneys is sufficient to resolve the matter. However, litigation is sometimes unavoidable, and when it occurs, the employers involved are often surprised by how fast an unfair competition case can move to a practical conclusion, and how little time there might be to prepare for the crucial court hearing… The TRO hearing is often the be-all and end-all of unfair competition litigation because, if it is granted, the unfair competitive activities are immediately stopped, any stolen trade secrets are returned, and the competitive damage to the plaintiff-employer is contained or stopped. The case is usually thereafter resolved by a settlement. Essentially, if the TRO is granted, there typically is not much else of consequence to litigate between the parties.

Employers should think twice before including the unenforceable provisions in employment contracts merely for their deterrent effect. Such a practice is risky. If an employer terminates an employee who refuses to sign an agreement that contains an unenforceable non-compete provision, such action would constitute a wrongful termination in violation of public policy and would entitle the employee to recover tort damages, including punitive damages, as well as economic damages… Given the strong protections against non-competes in California, it is too risky to require employees to sign employment agreements that contain these provisions. All employment agreements entered into with employees who live or work in California should be carefully reviewed to ensure compliance.

There are not many things an employer can do to prevent unfettered competition by a former employee. B&P Section 16600 states that “every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.” The statute provides three exceptions, none of which apply to the typical employer/employee relationship: (1) a person who sells the goodwill of a business or sells substantially all of its operating assets may lawfully agree to refrain from carrying on a similar business; (2) a partner may, upon the anticipation of the partnership dissolution or disassociation from the partnership, lawfully agree not to carry on a similar business; and (3) any member of a limited liability company may lawfully agree not to carry on a similar business.

As discussed elsewhere in this Take 5, although California employers generally cannot restrict an employee’s ability to work elsewhere, California employers can protect their trade secrets and confidential information. One pillar of a successful plan to do so is having an employee departure protocol.