Our Insights

Protecting Trademark Rights in Foreign Countries

Posted on under Articles, Copyright and Trademark.

Businesses and non-profit organizations that provide their products or services in at least one foreign country should consider protecting their trademarks in the countries in which they operate.  A U.S. trademark registration will not likely deter others in foreign countries from infringing a trademark if the trademark is not protected in the foreign country.  International law provides several mechanisms to protect trademarks in foreign countries.  Under the Madrid Protocol, a trademark that is registered in a member country may be registered in other member countries by filing one application.  The primary advantage of the Madrid Protocol is that it eliminates the need to retain counsel in the foreign countries, which can save time and costs.  A disadvantage is the limited geographic scope of the Madrid Protocol.  For example, other than the United States, only one other country in North and South America is a member of the Madrid Protocol. Continue reading “Protecting Trademark Rights in Foreign Countries” →

Parent-Subsidiary Veil-Piercing

Posted on under Articles, Employment.

Liability exposure is a common concern of both for-profit and tax-exempt entities.  To minimize liability risk, parent entities create subsidiaries to engage in activities that would otherwise expose the parent to liability.  In the tax-exempt context a parent may incorporate a subsidiary to operate a specific charitable program, such as a residential facility for the disabled, a thrift store, or a school.  This structure is advantageous to the parent because only the assets of the subsidiary would be at risk for the liabilities of the charitable program.  Tax-exempt entities with limited resources may be dissuaded from creating subsidiaries due to the misconception that the parent must operate entirely independent of the subsidiary.  While certain functions must be separate, the law allows considerable overlap without compromising the liability shield provided by separate corporate personalities. Continue reading “Parent-Subsidiary Veil-Piercing” →

Should Churches Incorporate and Seek Confirmation of Tax Exempt Status from the IRS?

Posted on under Articles, Churches and Religious Organizations, Nonprofits.

A client recently brought to my attention a website article that said that churches should not be “501(c)(3) corporations.” It contained dire warnings about Big Brother muzzling the church if it becomes a 501(c)(3) organization. The article contained numerous factual errors and a considerable amount of confusion about the issues involved. I see these same misunderstandings surface from time to time, usually when a member of a congregation is trying to understand some of the legal work we are doing for a church and searches the Internet and finds these unreliable websites. In this article, I will address the most common misunderstandings in order to put the unfounded fears to rest. The comments addressed to “churches” in this article are applicable to other similar religious organizations including synagogues, temples, and the like. Continue reading “Should Churches Incorporate and Seek Confirmation of Tax Exempt Status from the IRS?” →

Retaliation: Take Steps to Prevent Retaliation Claims

Posted on under Articles.

Alliance for Children and Families, April 15, 2011

Take Steps to Prevent Retaliation Complaints from Employees
Become familiar with the issue, educate managers, and adopt prevention strategies

There’s an increasingly prevalent trend within employment law that should be of particular concern to all employers: more employee lawsuits are being won on grounds of retaliation than for any other reason. Continue reading “Retaliation: Take Steps to Prevent Retaliation Claims” →

Consumer Product Safety Improvement Act and Resale Shops

Posted on under Articles, Churches and Religious Organizations, Employment, Nonprofits.

Operators of resale shops should be aware of the Consumer Product Safety Improvement Act (CPSIA).  The CPSIA, enacted in 2008, makes it illegal to sell any recalled product or any children’s product that contains lead or phthalates exceeding certain limits. Under CPSIA, a children’s product includes any consumer product designed or intended primarily for children aged 12 years of age or younger.  Numerous products could fall within the scope of CPSIA, such as toys, furniture, clothing, jewelry, and books.  Provisions of CPSIA lower allowable levels of lead and phthalates in children’s products in 2009 and 2010.  In August 2011, the total allowable lead content of children’s products is scheduled to become even more stringent.  This standard is subject to change every five years based upon available technology. Continue reading “Consumer Product Safety Improvement Act and Resale Shops” →

Sales Tax Liability and Voluntary Disclosures

Posted on under Articles, Computer & Internet, Employment, Nonprofits.

It is a common misconception that online sales are not subject to state sales taxes.  However, states may impose sales taxes on any sale, online or traditional, if the seller has nexus with the state.  Nexus can be a difficult legal doctrine to apply, so sellers should obtain a legal opinion to determine if they are subject to a state’s sales taxes.  Nexus usually entails a physical presence in the state, which can be as insignificant as sending independent sales representatives to the state. Continue reading “Sales Tax Liability and Voluntary Disclosures” →

Liability Protections for online service providers under the DMCA and CDA

Posted on under Articles, Computer & Internet, Copyright and Trademark.

The Digital Millennium Copyright Act (DMCA) and the Communications Decency Act (CDA) provide significant liability protections for those who host interactive online media.  The cumulative protections provided by these two acts can potentially eliminate liability for copyright infringement and defamation. Continue reading “Liability Protections for online service providers under the DMCA and CDA” →

Avoiding Liability when Disciplining Pastors or Church Members

Posted on under Articles, Churches and Religious Organizations.

A pastor resigns his position at Old Church, a prominent church that ordained the pastor several years earlier. Shortly thereafter, the pastor founds New Church in a growing neighborhood of the community. The pastor is ordained by New Church and begins his pastoral duties. Several years elapse, and rumors begin to circulate in Old Church that the pastor has engaged in marital and financial misconduct. The elder board of Old Church sends the pastor a letter threatening to rescind his ordination. The letter requests that the pastor appear at a hearing before the elder board to defend himself. Continue reading “Avoiding Liability when Disciplining Pastors or Church Members” →

The L3C: An Innovation in Charitable Funding?

Posted on under Articles, Employment, Nonprofits.

The L3C, or low-profit limited liability company, is a new legal entity that could dramatically enhance funding sources for charitable and educational projects. The L3C could be useful to anyone who wants to further charitable or educational objectives. The L3C is a substantial development because it is extremely rare that the legal system creates new types of legal entities. Conducting business with a separate legal entity is a concept that dates to the Roman Empire. Over the past few centuries, however, legal entities have slowly adapted in response to the needs of the business community. The creation of the limited liability company in the 1970s and 1980s is one of the more recent examples. Continue reading “The L3C: An Innovation in Charitable Funding?” →