SLF Named “Best Law Firm for Startups” by BroadStreet Times
For the full article, http://broadstreettimes.com/best-resources-for-startups/
Corporate
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Netflix’s Facebook app could be illegal – Maybe.
Netflix’s Facebook app is up and running in all 46 countries where it offers service — all except America. Because of a law referring to “prerecorded video cassette tapes or similar audio visual materials.”
The video streaming service is blocked from creating a Facebook app in America because of a 1980s law. The law, Video Privacy Protection Act (VPPA), is meant to protect consumers’ privacy, and lawmakers are currently dealing with how to update it, but as of now it creates a difficult obstacle for video streaming companies like Netflix.
Oddly, the VPPA has no bearing in current times, as it arose during the failed Supreme Court nomination of Robert Bork. In 1987, while Bork’s nomination hearings were taking place, , a freelance writer for the Washington City Paper, Michael Dolan, talked a video store clerk into giving him Bork’s rental history. The city paper published the list – and Congress got upset and passed the VPPA. The law prohibits “a video tape service provider” from disclosing its customers’ “personally identifiable information,” without written consent from the consumer.
While the VPPA may be focused on the VHS world, Netflix said the vague language leaves the present-day situation unclear. Steve Swasey of Netflix said they’d rather be in compliance than have a problem on their hands under VPPA. Netflix is not a VPPA novice. The company disclosed that it paid $9 million to settle a 2011 lawsuit by customers who alleged that Netflix didn’t delete their personal account data after one year (another VPPA provision).
Hulu, on the other hand, has developed a go-around to VPPA. They allow users of their Facebook app to opt-in or opt-out of sharing their viewing history. It’s unclear as to exactly why Hulu can have an app and Netflix can’t, though it is arguable that the difference lies in the fact that Hulu does not have a hard product (DVDs, etc.) while Netflix does. Could that be the defining factor under VPPA? Since streaming did not exist in the 80s, it may come down to the spirit of the law – until an updated law takes its place.
by: Sheheryar Sardar, Esq. Benish Shah, Esq., Sardar Law Firm LLC
For more information on social media law, contact: Sardar Law Firm at sardar@sardarlawfirm.com.
Follow Sardar Law Firm on Twitter @sardarlawfirm
Follow Social Media Legal Twitter @socialmedia_law
Article source: http://socialmedialegal.wordpress.com/2012/03/29/netflixs-facebook-app-could-be-illegal-maybe/
+ Read more…Employers Asking for Facebook Passwords Could be Violating Federal Law (Really)
According to recent reports, certain employers across the country are demanding the social networking information from job applicants as part of the interview process — including photos and personal messages not shared with anyone else; they want user names and passwords for social networking and email websites from all applicants.
In one case, the Associated Press reported a statistician was asked for his Facebook user name and password so that the employer could review private components of his profile as part of the interview process for the job he was applying for. The Maryland Department of Corrections has begun asking applicants to browse through their Facebook accounts in the presence of an interviewer.
At least two other cases were identified where individuals who were applying for jobs were required to turn over Facebook passwords and user names in order to be considered for the job they were applying for, as well as a city that, until recently, required job applicants to provide access to their email accounts.
The first thought here is: is it okay for an employer to ask for my political views, sexual orientation, whether I’m in an inter-racial marriage or if I have kids, and so much more? Generally speaking, the rational part of the mind screams that this cannot possibly be okay.
Even Facebook came out against this practice. Facebook noted that the practice “undermines the privacy expectation and the security of both the user and the user’s friends” and could expose employers to lawsuits based on discrimination if the employer discovers the individual is a member of a protected group and then does not hire that person.
Turns out, that may actually be the case.
U.S. Senators Richard Blumenthal (D-CT) and Charles E. Schumer (D-NY) today called on the U.S. Equal Employment Opportunity Commission and the U.S. Department of Justice to launch a federal investigation into this trend by employers.
They argued that this trends represents a violation of personal privacy and could set a dangerous precedent, while making it more difficult for Americans to get jobs. It would also expose employers to discrimination claims because these social networking sites have information on things that employers are not supposed to ask about, or make a decision based on (religion, race, age, marital status, pregnancy status,, etc).
“I am alarmed and outraged by rapidly and widely spreading employer practices seeking access to Facebook passwords or confidential information on other social networks,” said Blumenthal. “A ban on these practices is necessary to stop unreasonable and unacceptable invasions of privacy.
by: Sheheryar Sardar, Esq. Benish Shah, Esq., Sardar Law Firm LLC
For more information on social media law, contact: Sardar Law Firm at sardar@sardarlawfirm.com.
Follow Sardar Law Firm on Twitter @sardarlawfirm
Follow Social Media Legal Twitter @socialmedia_law
Article source: http://socialmedialegal.wordpress.com/2012/03/28/employers-asking-for-facebook-passwords-could-be-violating-federal-law-really/
+ Read more…Uploading Images on Pinterest Can Get You Sued?
Pintrerest, one of the fastest growing sites in the social media world has created an interesting problem for users.
While scouring the web, you found high quality images on the latest trends in gothic interior decoration that captured your aesthetic. You save them onto your computer and upload them on your Pinterest profile. It immediately enhances your profile and attracts a legion of followers. Pinterest finds them unique enough to sell the images to third parties. In four weeks you are served with a demand letter by counsel for an interior decoration company that owns the photos for damages, threatening a lawsuit if you don’t pay up. What happened?
In a nutshell, you violated Pinterest’s User Agreement, and Pinterest isn’t responsible. The Boston Business Journal quickly determined it was better to be safe than sorry and within a day of posting images it used in its coverage of real estate development it deleted them. A quick analysis of Pinterest’s terms quickly leads to one conclusion: you must own or otherwise have the authority to grant Pinterest’s parent company “a worldwide, irrevocable, perpetual, non-exclusive, transferable, royalty-free license, with the right to sublicense, to use, copy, adapt, modify, distribute, license, sell, transfer, publicly display, publicly perform, transmit, stream, broadcast, access, view, and otherwise exploit” the image.
In simpler terms, you must either be the original owner or else have permission from the owner to allow Pinterest to utilize the image in any of the ways the user agreement sets out.
By using Pinterest, you are agreeing to something that many people and companies don’t fully realize: copyright ownership or licensing. In the social networking era, it’s become far too easy to copy images strewn across the web and make them our own. The problem is that it may open you up to liability. With the courts imposing fines of up to $150,000 for each song uploaded that is otherwise owned by a record label or recording artist, it’s not entirely impossible for owners of images to request damages that match the commercial value and potential of the images used. The law is still evolving in this realm, but with service providers and platforms such as Pinterest shielded from liability arising from its users’ conduct, it’s become all too important to be careful. If not, you may be paying a steep price for your Pinterest profile.
- Sheheryar Sardar, BroadStreet Times
Sheheryar Sardar, Esq., is a Partner at Sardar Law Firm LLC with substantial experience in entrepreneurship. For more information on contract law or digital media law, contact: Sardar Law Firm at sardar@sardarlawfirm.com.
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Article source: http://socialmedialegal.wordpress.com/2012/02/17/uploading-images-on-pinterest-can-get-you-sued/
+ Read more…Tweet Issues
During a Kansas Youth in Government field trip to the state Capitol on November 21, Emma Sullivan, a teenager, Tweeted: “Just made mean comments at gov brownback and told him he sucked, in person #heblowsalot.” She did actually say anything to Kansas Governor Brownback, and stated that the Tweet was in regards to a personal joke with friends.
The next day, Sullivan was called into the high school principal’s office regarding the incident. After noting that he needed to do “damage control,” the principal asked Sullivan to write a letter of apology to Governor Brownback and his staff. He set Monday as the due date for the letter.
With the support of many peers and her parents, Sullivan decided that she would not write an apology letter – and the school district agreed with her.
Sullivan’s predicament is one that is gaining serious publicity, with articles such as “Think Before You Tweet” circulating the corporate boardrooms, and now school systems, “Tweeting has largely replaced “talking” in many forms…But in this jump into social media, no one has stopped to think: this is social media, but it’s still media. How can this effect me, my business, or my job?“
Though Sullivan walked out of this situation with public and administrative support, it does the beg the question: when does (or can) Tweeting go too far?
- Scott Ellison, The BroadStreet Times
+ Read more…Prevent Piracy or Innovation?
On November 16, 2011 Congress began review of The Protect IP Act (PIPA) is a U.S. Senate bill introduced by Senator Patrick Leahy and its House counterpart Stop Online Piracy Act (SOPA). Since their introduction in May 2011, the bills have been met with severe backlash, with opposers calling them “innovation killers” and “patently unjust.” On the first day of hearings even Rep. Lamar Smith, a chief sponsor of the bill, expressed uncertainty over the bill’s scope.
The legislation has been opposed by the Electronic Frontier Foundation (EFF), Yahoo!, eBay, American Express, Google, Reporters Without Borders, and Human Rights Watch to name a few. Media-sharing services such as Vimeo and Flickr, along with crowd favorite e-commerce communities such as Etsy could be the types of sites at risk under the Stop Online Piracy Act. Fight for the Future published a 3-minute infographic video explaining the basics of the bills and their impact on everyday activities of online interactions.
The bills are designed to provide the government and copyright holders the power to block access to “rogue websites dedicated to infringing or counterfeit goods,” especially those registered outside the United States. If passed, PIPA and SOPA would allow the government to prevent public access to websites with “no significant use” other than copyright infringement, or enabling such infringement. It would also make unauthorized media streaming a felony and hold web publishers and hosting services responsible for curbing users from acts involving copyright-infringement.
All in all – it would make most everyday media usage a crime, hold people accountable even if they did not know it was going on, and it would focus energies away from real issues (such as lack of healthcare and a dying economy). SOPA would also get rid of the safe harbor provisions of the Digital Millenium Copyright Act, which grants Web sites immunity from prosecution as long as they act in good faith to take down infringing content upon notice.
Under the bill, the Justice Department would be allowed to obtain court orders demanding that American ISPs prevent users from visiting blacklisted websites. ISPs receiving such orders would have to alter records in the net’s system for looking up website names, known as DNS. The House bill would also enable the Justice Department to order sites like Google to remove allegedly “rogue” sites from search results. As with many other bills, the determination of what is “rogue” would be out of the hands of the general public, the companies hosting the content, and anyone with direct understanding of the content and its use. It would give unprecedented censorship power to the US government.
The potential censorship issues were met with strong arguments that some measure of law is needed to police the piracy and counterfeiting problems rampant on the Internet.
“Doing nothing is not an option,” Rep. Mel Watt of North Carolina noted. “Not only are online piracy and counterfeiting drains on our economy, they expose consumers to fraud, identity theft, confusion and to harm.”
His sentiments were echoed by John Clark, the security chief for Pfizer, who testified about counterfeit drug sales on the internet. “I see counterfeited medicines as attempted murder,” said Clark.
Proponents of the bill also argue that if nothing is done, the US Copyright system will be rendered useless. However, it is unclear how the copyright system would fail when companies like iTunes, Pandora, Spotify, Grooveshark and Amazon are the mostly commonly used sources for legitimate music downloads.
The issues comes down to this: how many rights are we willing to give up here? Is it worth it? And does Congress understand the numerous options available on the Internet? After all, computer savvy users will always find a workaround; but the people who would be held accountable would be minor offenders, and under this bill, even accidental offenders.
With strong arguments on both sides of the bills, the answer remains unclear.
- Sheheryar T. Sardar, Esq., Originally published in The BroadStreet Times
+ Read more…Stop Piracy, or Innovation?
On November 16, 2011 Congress began review of The Protect IP Act (PIPA) is a U.S. Senate bill introduced by Senator Patrick Leahy and its House counterpart Stop Online Piracy Act (SOPA). Since their introduction in May 2011, the bills have been met with severe backlash, with opposers calling them “innovation killers” and “patently unjust.” On the first day of hearings even Rep. Lamar Smith, a chief sponsor of the bill, expressed uncertainty over the bill’s scope.
The legislation has been opposed by the Electronic Frontier Foundation (EFF), Yahoo!, eBay, American Express, Google, Reporters Without Borders, and Human Rights Watch to name a few. Media-sharing services such as Vimeo and Flickr, along with crowd favorite e-commerce communities such as Etsy could be the types of sites at risk under the Stop Online Piracy Act. Fight for the Future published a 3-minute infographic video explaining the basics of the bills and their impact on everyday activities of online interactions.
The bills are designed to provide the government and copyright holders the power to block access to “rogue websites dedicated to infringing or counterfeit goods,” especially those registered outside the United States. If passed, PIPA and SOPA would allow the government to prevent public access to websites with “no significant use” other than copyright infringement, or enabling such infringement. It would also make unauthorized media streaming a felony and hold web publishers and hosting services responsible for curbing users from acts involving copyright-infringement.
All in all – it would make most everyday media usage a crime, hold people accountable even if they did not know it was going on, and it would focus energies away from real issues (such as lack of healthcare and a dying economy). SOPA would also get rid of the safe harbor provisions of the Digital Millenium Copyright Act, which grants Web sites immunity from prosecution as long as they act in good faith to take down infringing content upon notice.
Under the bill, the Justice Department would be allowed to obtain court orders demanding that American ISPs prevent users from visiting blacklisted websites. ISPs receiving such orders would have to alter records in the net’s system for looking up website names, known as DNS. The House bill would also enable the Justice Department to order sites like Google to remove allegedly “rogue” sites from search results. As with many other bills, the determination of what is “rogue” would be out of the hands of the general public, the companies hosting the content, and anyone with direct understanding of the content and its use. It would give unprecedented censorship power to the US government.
The potential censorship issues were met with strong arguments that some measure of law is needed to police the piracy and counterfeiting problems rampant on the Internet.
“Doing nothing is not an option,” Rep. Mel Watt of North Carolina noted. “Not only are online piracy and counterfeiting drains on our economy, they expose consumers to fraud, identity theft, confusion and to harm.”
His sentiments were echoed by John Clark, the security chief for Pfizer, who testified about counterfeit drug sales on the internet. “I see counterfeited medicines as attempted murder,” said Clark.
Proponents of the bill also argue that if nothing is done, the US Copyright system will be rendered useless. However, it is unclear how the copyright system would fail when companies like iTunes, Pandora, Spotify, Grooveshark and Amazon are the mostly commonly used sources for legitimate music downloads.
The issues comes down to this: how many rights are we willing to give up here? Is it worth it? And does Congress understand the numerous options available on the Internet? After all, computer savvy users will always find a workaround; but the people who would be held accountable would be minor offenders, and under this bill, even accidental offenders.
With strong arguments on both sides of the bills, the answer remains unclear.
- Sheheryar T. Sardar, Esq., Sardar Law Firm LLC*
For more information on contract law or digital media law, contact: Sardar Law Firm at sardar@sardarlawfirm.com.
First published in The BroadStreet Times
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Article source: http://socialmedialegal.wordpress.com/2011/12/02/stop-piracy-or-innovation/
+ Read more…The International Landscape: A Broad View on Intellectual Property Protection
Despite the harmonization of intellectual property law and policy seen in the numerous international treaties between countries, there is no single copyright or trademark law that protects a work in every country in the world. To avoid legal problems, such as property theft, companies which conduct or seek to conduct business abroad should take the necessary steps to ensure that their IP is safe in every applicable country.
Before proceeding with securing international rights, a company should assess whether filing for protection is appropriate. Circumstances for determining what type of IP protection is best for a certain company vary, so seeking legal counsel is advisable. Several general questions can help guide the decision, such as whether or not you will be selling, distributing or outsourcing your product abroad, and what the likelihood if of your product being copied overseas. International protection is not inexpensive, and affordability should be a deciding factor. While every care and consideration should be taken in the decision, businesses should keep in mind that since certain actions can bar certain types of protection, it’s in a business’s best interest to consider IP protection as early as possible.
Once you have decided to protect your IP abroad, legal counsel can help you develop an overall protection strategy, conduct due diligence of potential foreign partners, record your U.S.-registered trademarks and copyrights with Customs and Border Protection, and secure and register trademarks and copyrights in the appropriate foreign markets.
As trademarks are territorial and a U.S. trademark does not grant protection in other countries, trademarks must be filed in each country where protection is sought. If a business is seeking trademark protection in numerous countries, it may be expedient to file an application under the Madrid Protocol, which offers trademark protection in many countries, including those beyond the European Union (e.g. Turkey, Iran). Another option for businesses seeking protection in several countries is a CTM, which must be applied for and provides protection for a trademark in all member countries of the European Union.
Although there is no such thing as an “international copyright” that will protect a work worldwide, most countries offer protection to foreign works under international copyright treaties and conventions. In the case that the work can’t be brought under an international treaty, a country may still offer protection under its national laws. Examples of international copyright treaties and conventions include the Berne Convention for the Protection of Literary and Artistic Work, the Universal Copyright Convention, the World Intellectual Property Organization (WIPO) Copyright Treaty; the WIPO Performances and Phonograms Treaty, and the Agreement on TradeRelated Aspects of Intellectual Property Rights. Since there are still some countries that offer little or no copyright protection to any foreign works, it may be advisable to consult www.copyright.gov for a list of policies specific to each country.
It is important to keep in mind that international protection and U.S. protection can differ in several ways with regards to IP. For example, the U.S. offers arguably less protection of an author’s moral rights than other countries. On the other hand, the fair use defense to copyright infringement under §107 of U.S. copyright law is significantly broader than international fair use exemptions, which have a tendency to be more specific in nature. Since policies can vary between countries, it is always advisable to conduct due diligence for the most up-to-date legal and procedural issues surrounding international protection. Failing to do so may result in product or name infringement and dilution in a jurisdiction where you have no judicial or legal remedies, possibly resulting in devastating economic consequences.
by, Sheheryar Sardar, Esq., Sardar Law Firm LLC*
For more information on contract law, contact: Sardar Law Firm atsardar@sardarlawfirm.com.
Follow Sardar Law Firm on Twitter: @sardarlawfirm
+ Read more…The International Landscape: A Broad View on Intellectual Property Protection
Despite the harmonization of intellectual property law and policy seen in the numerous international treaties between countries, there is no single copyright or trademark law that protects a work in every country in the world. To avoid legal problems, such as property theft, companies which conduct or seek to conduct business abroad should take the necessary steps to ensure that their IP is safe in every applicable country.
Before proceeding with securing international rights, a company should assess whether filing for protection is appropriate. Circumstances for determining what type of IP protection is best for a certain company vary, so seeking legal counsel is advisable. Several general questions can help guide the decision, such as whether or not you will be selling, distributing or outsourcing your product abroad, and what the likelihood if of your product being copied overseas. International protection is not inexpensive, and affordability should be a deciding factor. While every care and consideration should be taken in the decision, businesses should keep in mind that since certain actions can bar certain types of protection, it’s in a business’s best interest to consider IP protection as early as possible.
Once you have decided to protect your IP abroad, legal counsel can help you develop an overall protection strategy, conduct due diligence of potential foreign partners, record your U.S.-registered trademarks and copyrights with Customs and Border Protection, and secure and register trademarks and copyrights in the appropriate foreign markets.
As trademarks are territorial and a U.S. trademark does not grant protection in other countries, trademarks must be filed in each country where protection is sought. If a business is seeking trademark protection in numerous countries, it may be expedient to file an application under the Madrid Protocol, which offers trademark protection in many countries, including those beyond the European Union (e.g. Turkey, Iran). Another option for businesses seeking protection in several countries is a CTM, which must be applied for and provides protection for a trademark in all member countries of the European Union.
Although there is no such thing as an “international copyright” that will protect a work worldwide, most countries offer protection to foreign works under international copyright treaties and conventions. In the case that the work can’t be brought under an international treaty, a country may still offer protection under its national laws. Examples of international copyright treaties and conventions include the Berne Convention for the Protection of Literary and Artistic Work, the Universal Copyright Convention, the World Intellectual Property Organization (WIPO) Copyright Treaty; the WIPO Performances and Phonograms Treaty, and the Agreement on TradeRelated Aspects of Intellectual Property Rights. Since there are still some countries that offer little or no copyright protection to any foreign works, it may be advisable to consult www.copyright.gov for a list of policies specific to each country.
It is important to keep in mind that international protection and U.S. protection can differ in several ways with regards to IP. For example, the U.S. offers arguably less protection of an author’s moral rights than other countries. On the other hand, the fair use defense to copyright infringement under §107 of U.S. copyright law is significantly broader than international fair use exemptions, which have a tendency to be more specific in nature. Since policies can vary between countries, it is always advisable to conduct due diligence for the most up-to-date legal and procedural issues surrounding international protection. Failing to do so may result in product or name infringement and dilution in a jurisdiction where you have no judicial or legal remedies, possibly resulting in devastating economic consequences.
by, Sheheryar Sardar, Esq., Sardar Law Firm LLC*
For more information on contract law, contact: Sardar Law Firm atsardar@sardarlawfirm.com.
Follow Sardar Law Firm on Twitter: @sardarlawfirm
Article source: http://socialmedialegal.wordpress.com/2011/09/26/the-international-landscape-a-broad-view-on-intellectual-property-protection/
+ Read more…Social media has schools on defense
Our very own social media maestro, Sheheryar T. Sardar, got interviewed by Business Insurance about schools going on the defensive with social media.
Take a read at this excerpt: Social media has schools on defense
The circumstances under which a school might find itself in court over an item of social media content are fairly easy to predict, experts said.
If a university athletic department actively monitors its students’ social media accounts and fails to recognize or act on information that could have predicted or prevented a loss—property damage, personal injury or death—the school could be sued for negligence or dereliction of duty, said Stephen Marcellino, a partner in the New York and White Plains, N.Y., offices of Wilson Elser Moskowitz Edelman Dicker L.L.P.
“Once you take on that kind of policing activity, it creates an obligation,” Mr. Marcellino said. “One could easily posit a liability theory in terms of discharge of duty. It’s almost a case of “Be careful what you wish for.’”
On the other hand, acting too swiftly on information obtained through social media monitoring also might not be advisable. Even if every post by every student under surveillance were authenticated, experts worry whether school and athletic administrators can correctly interpret the content of each post.
Jennifer Whittington, executive director of the Bloomington, Ind.-based University Risk Management Insurance Assn., said a student suspended or kicked off a team for a post that he or she did not author or that was taken out of context could file a claim against the school for reputational damage or lost future financial benefits linked to their athletic talents.
A university also could face litigation based on how it determines which students to monitor. Sheheryar Sardar, a partner at the New York-based Sardar Law Firm L.L.C. and author on using social media, said a school that monitors only some of its students—such as athletes—and not the rest could be accused of discrimination or violating students’ 14th Amendment right of equal protection.
“It’s just not advisable for any school to regularly monitor a student’s social media use,” said Alyssa Keehan, senior risk counsel for the Chevy Chase, Md.-based United Educators Insurance, a Reciprocal Risk Retention Group. “Social media, really, is just another medium for behavior; and just as you can’t feasibly monitor every student’s behavior 24/7, it’s unreasonable to try to do that with social media postings.”
Article source: http://socialmedialegal.wordpress.com/2011/08/09/264/
+ Read more…This Quarter in Venture Capital: Dealflow and Funding At Highest Levels
The venture capital database CB Insights has just released its report of investment from the second quarter of 2011, and based on the deals it’s tracked, venture capital funding is at a nine-quarter high – both in terms of the amount of funding and the number of deals. Compared to this time last year, deals are up 25% and funding up 29%.
Of course, those wanting to point to this as yet another sign of a tech bubble will have ammo here, but the data from the report demands a bit more of a nuanced assessment. Even though investment is up, early stage VC funding is down. In fact, the overall portion of VC deals to early stage companies (primarily Series A deals) dipped to a five quarter low. It will be interesting to watch the impact of this over the next few months because, as CB Insights points out, “it’s possible companies who’ve raised their Seed rounds might be orphaned.”
Across all Internet companies tracked in the CB Insights’ database, deals were up 28% year-over-year and funding grew 69% as compared to the second quarter of 2010. Of course, a number of “mega-deals” in the group buying industries… read more here.
Article source: http://globaldealflow.wordpress.com/2011/07/22/this-quarter-in-venture-capital-dealflow-and-funding-at-highest-levels/
+ Read more…Top 5 Mistakes to Avoid for Start-ups
July 30, 2011
Book launch party! Sandstorm: a leaderless revolution in the digital ageJuly 26, 2011
How to Start Your Own Start-Up
Entrepreneurs Event @Sardar Law FirmArticle source: http://newyorkentrepreneurlaw.wordpress.com/2011/07/21/top-5-mistakes-to-avoid-for-start-ups/
+ Read more…Finra authorizes regulatory notice on non-traded REITs, private placements
Finra is continuing to shake up the way broker-dealers show the value of illiquid investments such as non-traded real estate investment trusts and private placements on clients’ account statements.
Last week, the board of governors of the Financial Industry Regulatory Authority Inc. authorized staff to issue a regulatory notice on the amendments to the rule.
The proposed amendments would change how client account statements showed an illiquid securities estimated value.
For example, the proposals include requiring broker-dealers to subtract upfront fees and expenses that are deducted from the offering proceeds if par value is listed as the estimated value of the shares. At the moment, shares of non-traded REITs, for example, are listed at par.
Another proposal would permit broker-dealers to use par value for the investment only under the initial offering period, and not during the secondary period.
And broker-dealers … read more here.
Article source: http://globaldealflow.wordpress.com/2011/07/21/finra-authorizes-regulatory-notice-on-non-traded-reits-private-placements/
+ Read more…10 Ways to Avoid the Biggest Mistakes an Entrepreneur Can Make (#s10-5)
July 30, 2011
Book launch party! Sandstorm: a leaderless revolution in the digital ageJuly 26, 2011
How to Start Your Own Start-Up
Entrepreneurs Event @Sardar Law FirmArticle source: http://newyorkentrepreneurlaw.wordpress.com/2011/07/20/10-ways-to-avoid-the-biggest-mistakes-an-entrepreneur-can-make-s10-5/
+ Read more…Trend: Registering Businesses in Singapore
The recently released Monthly Digest of Statistics Singapore, by the Department of Statistics, Ministry of Trade Industry, shows a sharp increase in the number of new companies registered in Singapore in the year 2010. 29,798 new companies were registered in 2010, recording an 11.4% increase over the previous year total of 26,414 companies. So far for the year 2011, until the end of second quarter 16,047 new companies have been formed in Singapore. Of all the various types of business entities registered in Singapore, Companies – including Exempt Private Limited, Private Limited and Public Limited – account for a larger share, with an average of over 53%. Registration of new Business Firms, such as Sole Proprietorship and Partnerships, fall behind Companies despite the relaxed regulatory requirements. Rikvin consultancy explains the reasons why businesses are registered as companies in Singapore.
In the era of globalization, protection of investment, innovation and intellectual resources is crucial to ensure a protracted growth and sustainability amidst…Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/07/19/prweb8652877.DTL#ixzz1SaVP8PaE
Article source: http://globaldealflow.wordpress.com/2011/07/20/trend-registering-businesses-in-singapore/
+ Read more…Simple Facts: Microloans & Entrepreneurs
The Small Business Administration’s Microloan Program is a means for an entrepreneur, start-up, or already existing business to acquire a small, short-term (6 year maximum) loan of up to $50,000 (with the average being about $13,000). They are a relatively easy to obtain and smart alternative to traditional bank loans meant to spur business growth. They are easy to obtain in that they are generally issued to those small businesses that have been denied a bank loan, and smart too, because not only do they provide the necessary capital to start of expand a small business, they also arm you with the know-how to use that capital.
Microloans are mainly issued to provide working capital, but are equally useful for the purchase of inventory or supplies, furniture or fixtures, or machinery or equipment. However, microloans are not all-purpose: they must not be used to pay existing debts or to buy real estate. To obtain a microloan, borrowers must provide collateral and sign a personal guarantee of repayment. Collateral can usually be provided in the form of a business’ current assets, or else by cash flow or personal credit. Overall though, they are designed as a means for small businesses to gain access to capital, and as a result, lenders are very inclusive in who they accept. (For a list of excluded businesses, visit: http://www.sbaloans-123.com/sba-microloan.)
Loans are not acquired through the SBA directly, but through an intermediary. These lenders are non-profit, local companies with business management and technical assistance expertise. This expertise is at your disposal, as the intermediaries are required to offer management and technical assistance training. In fact, many lenders mandate such training before a borrower is accepted for a microloan. To apply for a microloan, visit your local intermediary lender. For help with finding a lender, contact your local SBA office, a list of which can be found here: http://www.sba.gov/about-offices-list/2.
Microloans are not a gift and they do accrue interest of between 7% and 14% depending on the determined degree of risk to the lender. Similarly, the length of the loan is determined by the amount borrowed where the largest loans are given the longest length (again, max 6 years). Still, they exist to encourage small business growth, and as such, are a helpful resource for the entrepreneur looking to get his/her business off the ground.
For for more information, contact Sardar Law Firm LLC.
Article source: http://newyorkentrepreneurlaw.wordpress.com/2011/07/19/simple-facts-microloans-entrepreneurs/
+ Read more…Foreign entrepreneurs?
NEW YORK (CNNMoney) — Giving more foreign entrepreneurs visas could help lower unemployment and jumpstart the economy, a nonpartisan research organization said.
The politically charged recommendation comes out of the Startup Act, a sweeping proposal released by the Kauffman Foundation Tuesday.
The Act proposes giving foreign entrepreneurs more access to visas and extending green cards to foreign students that graduate from U.S. universities with STEM degrees (science, technology, engineering, and mathematics).
“The startup engine is sputtering,” said Robert Litan, vice president of research and policy at the Kauffman Foundation and one of the authors of The Startup Act. The number of startups that employ people has been declining as has the number of jobs that new firms are generating, he said.
Opponents to immigration reform argue that letting foreigners into the country would mean fewer jobs for Americans. But proponents counter that the United States needs foreign entrepreneurs who start companies and create jobs. Read full article here.
Article source: http://globaldealflow.wordpress.com/2011/07/19/foreign-entrepreneurs/
+ Read more…Arab Spring & Social Media: about time a book got it right.
Arab Spring Social Media: about time a book got it right.
In Social Media on July 2011 at 12:08 am
Sandstorm distills how social media played a role in creating a global generationthat catalyzed a historic “leaderless revolution” in the greater Middle East. The Arab Spring, notably Tunisia and Egypt, harnessed the power of social media as a means to facilitate the grievances of the masses. Pervasive unemployment, endemic poverty and widespread corruption finally compelled the people in the region to mobilize and demand change. The speed of technology, with its aggregation of social media across multiple platforms transformed the people’s protest into a geopolitical movement. The youth created a change so powerful that its demand for economic growth and prosperity can no longer be ignored. This book recognizes this new reality and emphasizes the power of social media as a means to unify disparate voices for the creation of a new social and economic contract.Article source: http://socialmedialegal.wordpress.com/2011/07/16/arab-spring-social-media-about-time-a-book-got-it-right/
+ Read more…Facebook ‘Face Recognition’ Feature Draws Privacy Scrutiny
Facebook ‘Face Recognition’ Feature Draws Privacy Scrutiny
In Social Media, Technology Issues and the Law on July 2011 at 3:34 am
European Union data protection regulators said on Wednesday that they would investigate Facebook over a feature that uses face-recognition software to suggest people’s names to tag in pictures without their permission, and a privacy group in the United States said that it planned to file a complaint with the Federal Trade Commission over the feature.
A group of privacy watchdogs drawn from the European bloc’s 27 nations will study the measure for possible rule violations, said Gérard Lommel, a Luxembourg member of the so-called Article 29 Data Protection Working Party. Authorities in Britain and Ireland said they are also looking into the photo-tagging function on the world’s most popular social networking service.
“Tags of people on pictures should only happen based on people’s prior consent and it can’t be activated by default,” said Mr. Lommel. Such automatic tagging suggestions “can bear a lot of risks for users” and the European data protection officials will “clarify to Facebook that this can’t happen like this.”
Facebook said on its blog on Tuesday that “Tag Suggestions” was available in most countries after being phased in over several months. When Facebook users add photos to their pages, the feature uses facial-recognition software to suggest names of people in the photos to tag based on pictures in which they have already been identified. Before the feature was introduced…read original article here.
Article source: http://socialmedialegal.wordpress.com/2011/07/06/facebook-%E2%80%98face-recognition%E2%80%99-feature-draws-privacy-scrutiny/
+ Read more…What Entrepreneurs Should Know About Angel Investors
Angel investors have an interesting rep. Most startups see them as a source of free money; someone that is wealthy and just wants to give away money. Unfortunately, there are few Willy Wonka style investors out there (offering Charlie the entire factory just for being a nice boy). Getting an Angel investor to invest in your business takes as much work as getting any other investment or loan.
When trying to secure Angel investors for your startup, here are some essential tips to understand.
- Narrow Your Search to One Type of Investor. It is inefficient to try to reach out to large numbers of Angel investors. Narrow your search to those Angel investors that would be interested in your industry. If you are a fashion label, look for people that are interested in fashion – don’t go to an Angel investor networking event made for tech startups. Similarly, if you are a specialized tech venture it won’t be helpful to talk to an Angel that has no interest in the technology field. Just like you narrowed down the scope of your business, narrow down the list of Angels.
- Investors Invest in People, Angels are No Different. Almost all investors invest in the team behind the idea as much as they invest in the idea itself. Why is that? No one wants to entrust their money to a team of people that do not understand the best ways to use that money. So while your idea may be groundbreaking, if the Angel investor thinks that your team is not strong enough, they are unlikely to invest.
- Introductions are Important. More than VCs and PEs, Angels want to invest in someone they know. But not all entrepreneurs have access to high-net worth individuals. But the way to go about it is to find someone who does know that individual. Get an introduction and then build a relationship with the Angel before turning to them with a proposal for money. Asking the right questions for advice on your idea helps in two ways: (1) you are getting free advice; (2) you are showing the Angel that you are intelligent enough to know what the right questions are. It goes a long way to help your credibility.
- You May be a Creative or a Techie, but Business Know-How is a Must-Have. One of our favorite arguments from entrepreneurs without solid business plans is that they are not business-majors. While that is an absolutely acceptable answer if you don’t want to go into business, it throws a wrench in the system when you are trying to get investors. If you tell an investor, Angel or not, that you are not a “business person” what they hear is “you are incompetent to run a business.” All professional investors know that without a business plan, startups fail. If you don’t know how to do it yourself, get someone business-minded on board to help you develop a solid business plan and exit strategy. This also shows that you can pinpoint your own short-coming and are business savvy enough to remedy the situation by adding a new component.
- Angels aren’t “Quiet” Investors – they Usually Like Playing a Few Innings. This just means that Angel investors don’t want to hand over money and then walk away. They are interested in your company, your team, and your success for more reasons than just the money they invested. They also prefer to invest in local opportunities because they have the chance to interact with their investments. So if you are a startup based in NYC, it doesn’t make sense to seek out an Angel investor in Silicon Valley and vice versa. But this is a good thing for the startups as well; you want your Angel investor to be more than just money – you want someone who will help mentor, guide, and provide access.
Don’t get frustrated if you get rejected the first time around, and don’t burn bridges. Maintain a relationship and continue working hard; some thing WILL turn up.
by: Benish Shah, Esq. Sheheryar Sardar, Esq., Sardar Law Firm LLC
For more information, contact: Sardar Law Firm at sardar@sardarlawfirm.com.
Article source: http://newyorkentrepreneurlaw.wordpress.com/2011/05/23/what-entrepreneurs-should-know-about-angel-investors/
+ Read more…Why you should never use legal documents on the Internet. Seriously.
Why you should never use legal documents on the Internet. Seriously.
In Entrepreneurs and Social Media, Technology Issues and the Law on May 2011 at 7:10 pm
With the Internet so accessible it is easy to forget the unreliability of the content found online. Specifically, when it comes to legal documents, if found online, one should never use them. Let’s discuss why it’s a bad idea to use legal documents found on the Internet:
(1) Unknown author: while the Internet allows you to be whoever you want, this causes many users a lot of distress. Since you do not know who wrote the document, it could have been written or scanned by anyone. Also you do not know when this document was uploaded so it might also be outdated. Also, since this document could have been written by anyone, the wording and terminology could be completely incorrect and prove to be embarrassing with the person you are working with. This could cause you a potential loss of business and reputation.
(2). Not relevant: legal documents, while usually the same basic format, are typically structured on a case by case basis. The document that you find online is likely to not fit your situation exactly, which can do more harm than good if it is ever disputed.
(3). Wrong state: statutes vary from one state to the next, what is legal in one state may not be legal in yours. By using a document found online you could be potentially breaking the law.
(4). Copyright: Often legal documents will contain copyright laws and depending on the state, if caught using a document with a copyright, many fines could potentially be imposed.
(5). Lack of validity: Specifically divorce papers and incorporation documents are invalid when placed online. They are designed to look official but often do not follow the correct format. Many states have strict rules against submitting any document that is not officially recognized by the state.
If you decide to use a legal document found on the Internet, consult with a lawyer first before taking any further steps. This will save you a lot of personal and possible legal trouble in the long run.
Article source: http://socialmedialegal.wordpress.com/2011/05/23/why-you-should-never-use-legal-documents-on-the-internet-seriously/
+ Read more…What Startups Need to Know About Angel Investors
Angel investors have an interesting rep. Most startups see them as a source of free money; someone that is wealthy and just wants to give away money. Unfortunately, there are few Willy Wonka style investors out there (offering Charlie the entire factory just for being a nice boy). Getting an Angel investor to invest in your business takes as much work as getting any other investment or loan.
When trying to secure Angel investors for your startup, here are some essential tips to understand.
- Narrow Your Search to One Type of Investor. It is inefficient to try to reach out to large numbers of Angel investors. Narrow your search to those Angel investors that would be interested in your industry. If you are a fashion label, look for people that are interested in fashion - don’t go to an Angel investornetworking event made for tech startups. Similarly, if you are a specialized tech venture it won’t be helpful to talk to an Angel that has no interest in the technology field. Just like you narrowed down the scope of your business, narrow down the list of Angels.
- Investors Invest in People, Angels are No Different. Almost all investors invest in the team behind the idea as much as they invest in the idea itself. Why is that? No one wants to entrust their money to a team of people that do not understand the best ways to use that money. So while your idea may be groundbreaking, if the Angel investor thinks that your team is not strong enough, they are unlikely to invest.
- Introductions are Important. More than VCs and PEs, Angels want to invest in someone they know. But not all entrepreneurshave access to high-net worth individuals. But the way to go about it is to find someone who does know that individual. Get an introduction and then build a relationship with the Angel before turning to them with a proposal for money. Asking the right questions for advice on your idea helps in two ways: (1) you are getting free advice; (2) you are showing the Angel that you are intelligent enough to know what the right questions are. It goes a long way to help your credibility.
- You May be a Creative or a Techie, but Business Know-How is a Must-Have. One of our favorite arguments fromentrepreneurs without solid business plans is that they are not business-majors. While that is an absolutely acceptable answer if you don’t want to go into business, it throws a wrench in the system when you are trying to get investors. If you tell an investor, Angelor not, that you are not a “business person” what they hear is “you are incompetent to run a business.” All professional investors know that without a business plan, startups fail. If you don’t know how to do it yourself, get someone business-minded on board to help you develop a solid business plan and exit strategy. This also shows that you can pinpoint your own short-coming and are business savvyenough to remedy the situation by adding a new component.
- Angels aren’t “Quiet” Investors – they Usually Like Playing a Few Innings. This just means that Angel investors don’t want to hand over money and then walk away. They are interested in your company, your team, and your success for more reasons than just the money they invested. They also prefer to invest in local opportunities because they have the chance to interact with their investments. So if you are a startup based in NYC, it doesn’t make sense to seek out an Angel investor in Silicon Valley and vice versa. But this is a good thing for thestartups as well; you want your Angel investor to be more than just money – you want someone who will help mentor, guide, and provide access.
Don’t get frustrated if you get rejected the first time around, and don’t burn bridges. Maintain a relationship and continue working hard; some thing WILL turn up.
by: Benish Shah, Esq. Sheheryar Sardar, Esq., Sardar Law Firm LLC
For more information, contact: Sardar Law Firm at sardar@sardarlawfirm.com.Article source: http://globaldealflow.wordpress.com/2011/05/20/what-startups-need-to-know-about-angel-investors/
+ Read more…Why You Shouldn’t Use Legal Documents from the Internet. Seriously.
Entrepreneurs need to bootstrap, there is no doubt about that. But, often, the bootstrapping is done in the wrong arenas, which can cause grief in the not-so-far future of a startup. One of the main culprits is online legal forms, which seem like the free answer to entrepreneurial legal woes; instead those forms end up adding to those woes.
With the Internet so accessible it is easy to forget the unreliability of the content found online. Specifically, when it comes to legal documents, if found online, one should never use them. Let’s discuss why it’s a bad idea to use legal documents found on the Internet:
(1) Unknown author: while the Internet allows you to be whoever you want, this causes many users a lot of distress. Since you do not know who wrote the document, it could have been written or scanned by anyone. Also you do not know when this document was uploaded so it might also be outdated. Also, since this document could have been written by anyone, the wording and terminology could be completely incorrect and prove to be embarrassing with the person you are working with. This could cause you a potential loss of business and reputation.
(2). Not relevant: legal documents, while usually the same basic format, are typically structured on a case by case basis. The document that you find online is likely to not fit your situation exactly, which can do more harm than good if it is ever disputed.
(3). Wrong state: statutes vary from one state to the next, what is legal in one state may not be legal in yours. By using a document found online you could be potentially breaking the law.
(4). Copyright: Often legal documents will contain copyright laws and depending on the state, if caught using a document with a copyright, many fines could potentially be imposed.
(5). Lack of validity: Specifically divorce papers and incorporation documents are invalid when placed online. They are designed to look official but often do not follow the correct format. Many states have strict rules against submitting any document that is not officially recognized by the state.
If you decide to use a legal document found on the Internet, consult with a lawyer first before taking any further steps. This will save you a lot of personal and possible legal trouble in the long run.
Article source: http://newyorkentrepreneurlaw.wordpress.com/2011/05/20/why-you-shouldnt-use-legal-documents-from-the-internet-seriously/
+ Read more…Privacy… What?
Privacy has always been a big deal, with social media, the question is – where does the right to privacy exist and who guarantees this right?
Justice William O. Douglas established in the 1960s that the right to privacy is a right so fundamental to the individual, is it located in the, “penumbras” and “emanations” of the Constitution. Yet living in the age of the Internet, the line between what is and isn’t private is dimmed. In an Internet filled with endless, open possibilities, can privacy exist? Shouldn’t the individual be guaranteed some form of privacy on the Internet, where they can freely express themselves or an aspect of their life without having to face the consequences later on by the public eye?
California began the quest to figure out this privacy conundrum in 2003 with its Online Privacy Protection Act (Calif. Bus. Prof. Code §§ 22575-22578), which “requires an operator, defined as a person or entity that collects personally identifiable information from California residents through an Internet Web site or online service for commercial purposes, to post a conspicuous privacy policy on its Web site or online service and to comply with that policy.” In Nebraska it is prohibited to, “knowingly making a false or misleading statement in a privacy policy, published on the Internet or otherwise distributed or published, regarding the use of personal information submitted by members of the public” (Nebraska Stat. § 87-302(14)).
While California says that privacy can exist within social media, New York courts say otherwise. In a recent case, Romano v Steelcase Inc(2010), Katherine Romano had suffered an injury, which would permit her from doing activities such a dancing, yet the defendant, after acquiring a Notice for Discovery and Inspection CPLR 3120, accessed her private Facebook account, revealing an “active lifestyle.” Thus the New York Supreme Court ruled in the defendants favor, establishing that nothing put on the Internet is completely private.
While this setting of limitations on our privacy may not be convenient, it needs to be known that we unfortunately give up these privacy rights when we enter into a contract with social media. By making the choice to publish our lives on Facebook and Myspace, is it our responsibility to be aware of how exactly we are being protected? These social media sites clearly warn their users that “complete privacy is not guaranteed,” so one cannot argue that they were uninformed.
- Research contributed by Amy OmarArticle source: http://socialmedialegal.wordpress.com/2011/05/20/privacy-what/
+ Read more…ISLAMIC FINANCE & INVESTMENT: THE NEXT WAVE
With the legal market saturated with lawyers in every conceivable practice area, from corporate to litigation, there are few opportunities to distinguish one’s own practice. Islamic finance however, is gaining ground as a mainstream vehicle for individual and institutional investments, mergers, property development and acquisitions. Islamic finance refers to principles of funding and investment based on the Shari’ah, a corpus of rules derived from The Qur’an, Islam’s holy text. Islamic finance is known as Fiqh al-Muamalat (Islamic rules on transactions). The basic principle of Islamic banking is the sharing of profit and loss and the prohibition of riba (usury). Common Islamic concepts are profit sharing (Mudharabah), safekeeping (Wadiah), joint venture (Musharakah), cost plus (Murabahah), and leading (Ijarah). In sum, Shari’ah compliance typically relates to the prohibition on interest as security in the future event of financial delay or default.
To circumvent the use of interest, Shari’ah-compliant transactions have found innovative ways to finance. For example, in an Islamic mortgage transaction, instead of loaning the buyer money to purchase the real estate, a bank may purchase the real estate from the seller, and re-sell it to the buyer at a profit, while allowing the buyer to pay the bank in installments. In this context, there are no additional penalties for late payment and therefore, no use of interest arises. In order to protect itself against default, the bank asks for strict collateral. The real estate is registered to the name of the buyer from the start of the transaction, called Murabahah.
Another innovative approach applied to real estate loans is called Musharaka al-Mutanaqisa, which enables banks to institute a floating rate in the form of rental. The bank and borrower forms a partnership entity, both providing capital at an agreed percentage to purchase the property. The partnership entity then rents out the property to the borrower and charges rent. The bank and the borrower will then share the proceed from this rent based on the current equity share of the partnership. Concurrently, the borrower in the partnership entity also buys the bank’s share on the property at agreed installments until the full equity is transferred to the borrower and the partnership ceases to exist. If default occurs, both the bank and the borrower receive the proceeds from an auction based on the current equity. This method allows for floating rates according to current market rate such as the BLR (base lending rate).
There are a variety of emerging, more complex financial arrangements that call for the application of Islamic legal principles. As Western and Islamic institutions grow in their financial ventures, U.S. lawyers should keep apprised of its developments and potential income opportunities.
Article source: http://globaldealflow.wordpress.com/2011/04/27/islamic-finance-investment-the-next-wave/
+ Read more…Losing Your Idea Through Social Media
Before presenting an idea to an investor, companies usually ask them to sign a Non Disclosure Agreement (“NDA”). The NDA is viewed as critical to protect the company or individual,and their idea. In the small world of entrepreneurship, the fear of losing is a cashable idea is daunting.
And then, an entrepreneur decides to take his idea to every social media platform that she/he can find. They leak seemingly simple information such as, “working on my new idea!” and “can’t wait to get investors interested in bio tech in Eastern Europe.” Suddenly, coupled with a series of other posts on the same topic, another person puts the pieces together and voilà – the idea is gone. There is no protective NDA, no contract, and no proof that it was your idea that was stolen.
The desire to engage with others through social media has tapped into the excitement of sharing every brilliant idea you have with your closest online friends – all 800+ of them. However, if you were to put all of those people into a room, you would be more secretive about your idea – afraid of losing it to someone else.So next time you want to post on a social media platform about you newest business idea… Remember that you are giving a green light to the loss of your idea – and no NDA to prevent it.
by: Benish Shah, Esq. Sheheryar Sardar, Esq., Sardar Law Firm LLC
For more information, contact: Sardar Law Firm at sardar@sardarlawfirm.com.
Possibly related posts: (automatically generated)
Article source: http://newyorkentrepreneurlaw.wordpress.com/2011/04/25/losing-your-idea-through-social-media/
+ Read more…American Investors & Middle East Private Equity
The current economic climate has forced American investors to reassess their general investment strategies in the Middle East private equity market (MEPE). Legal protections are becoming more pronounced due to the tightening of credit. Vested parties are conducting critical due diligence, assessing both the creditworthiness of the debtor parties and Return on Investment (ROI).In this capacity, legal conditions have become more nuanced than ever. Investors want iron-clad financing contracts, which are affecting the increased use of vendor financing and earn outs. Vendor financing refers to a loan from one company to another which is used to buy goods from the company providing the loan. The benefits to the vendor include increased sales and earned interest, while the risk involves potential payment delay or default. Earn outs, by way of example, involves the acquiror company paying 60–80% of the purchase price up front, with the remaining 20–40% structured as an earn-out and paid out over time as the acquired company achieves certain levels of sales or profitability.
In both vendor financing and earn outs, financial sponsors are seeking to increase value-added investments in tight debt markets. One solution may involve larger equity checks and the use of mezzanine financing, although both will result in higher transaction costs and decreased leveraged returns.
Incorporating legally accurate and umambiguous definitions and provisions is therefore highly encouraged, particularly when defining the parameters of measuring future financial performance. This will minimize disputes, present and future costs, while preserving strict contracting.
Improving Corporate Governance
Corporate governance refers to a set of processes, customs, policies, and institutions affecting the way a company is directed, administered or controlled. It also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed.
Applying the concepts behind corporate governance to the Middle East private equity market, companies and institutions serving as investors must continue to provide meaningful minority protections, enhanced risk management systems and timely and reliable information flows. In this financially volatile climate, private equity must manage working capital and cash flows, while focusing on the operating results of portfolio companies.
Financial sponsors will therefore pay greater attention on contractual rights to facilitate leadership and oversight, thus ensuring prompt financial reporting.
However, investors should be cautioned that insolvency laws in the Middle East are poorly understood and rarely tested. The learning curve remains steep, with sponsors and investors continuously seeking guidance on various alternative scenarios. The widen breadth of such analysis may impact the structuring and documentation of deals. The investor will need to pay strict attention to contract rights regarding exits, deadlocks, dispute resolution and rescue funding.
Increasing Value-Added Legal Services
Value added advisory legal services in these difficult times are highly recommended due to the need for thorough documentation and advice regarding new private equity structures. The Middle East has seen a sharp increase of legal services over the past decade due to the increasingly sophisticated private equity client base. International best practices and industry standards have been adapted to a region characterized by family ownership, minority investments, carve outs and foreign ownership restrictions.
This year has presented a new set of legal challenges for private equity. While deal pipelines and investment risk may have weakened, private equity should gradually emerge into a formidable force for Middle East financing, particularly in sectors that are relatively recession resistant such as healthcare and education. Depressed sectors such as hospitality and real estate may allow for bargains. As long as price volatility and credit tightening continues, private equity players should continue to retain legal services as an integral component of their business strategy.
By, Sheheryar T. Sardar, Esq.
Sardar Law Firm LLC
New York, New YorkArticle source: http://globaldealflow.wordpress.com/2011/04/25/american-investors-middle-east-private-equity/
+ Read more…Social Stock Trading: Sardar Law Firm on VOA
Ayesha Tanzeem of Voice of America interviews Sheheryar Sardar on the risks associated with social media in stock trading and securities. (Video and content belongs to VOA).
+ Read more…Social Stock Trade
Ayesha Tanzeem of Voice of America interviews Sheheryar Sardar on the risks associated with social media in stock trading and securities.
For more information contact:
Sardar Law Firm LLC
917-740-5097
sardar@sardarlawfirm.comArticle source: http://globaldealflow.wordpress.com/2011/04/04/social-stock-trade/
+ Read more…Hiring ICs v. Employees – Social Media Interns?
Hiring ICs v. Employees – Social Media Interns?
In Entrepreneurs and Social Media, Technology Issues and the Law on March 2011 at 6:44 pm
(1) Do you dictate the manner in which the service is carried out?
(2) Do you provide the tools necessary to complete the service?
(3) Do you directly supervise the service?
(4) Who sets the rate of pay?
(5) Are you able to evaluate the services rendered?
(6) Does the individual need prior permission for any absences?These questions will help determine your liability when choosing the appropriate classification.
Companies often choose to classify individuals as Independent Contractors because, generally, an employee is more expensive than an Independent Contractor. For an employee, employers must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment taxes on employee wages, none of which are they responsible for in the case of an Independent Contractor.
However, those initial savings may create issues down the road – especially if a former Independent Contractor chooses to petition the DOL for unemployment benefits as a past “employee” of your company. This may trigger a swift audit, and companies are often held liable for that worker’s employment taxes and workers compensation violation – combined with a potential substantial fine depending on whether you have a reasonable basis for having misclassified the worker.
As a rule, ensure that anyone working with you signs a comprehensive contract – whether it’s a partner, an employee, an Independent Contractor or a vendor. Without a contract, these problems became much more difficult to sort through.
Are you an entrepreneur? Check out “Getting Funded: Making Your Business Investment Ready” http://t.co/BEpdy9B – March 31, 2011 in New York City.
by: Benish Shah, Esq. Sheheryar Sardar, Esq., Sardar Law Firm LLC*
For more information on contract law, contact: Sardar Law Firm at sardar@sardarlawfirm.com.
Follow Sardar Law Firm on Twitter: @sardarlawfirm
Research assistance provided by Dave Shorten.
Article source: http://socialmedialegal.wordpress.com/2011/03/23/hiring-ics-v-employees-social-media-interns/
+ Read more…Independent Contractor v. Employee: Misclassification Can Cost You
(1) Do you dictate the manner in which the service is carried out?
(2) Do you provide the tools necessary to complete the service?
(3) Do you directly supervise the service?
(4) Who sets the rate of pay?
(5) Are you able to evaluate the services rendered?
(6) Does the individual need prior permission for any absences?These questions will help determine your liability when choosing the appropriate classification.
Companies often choose to classify individuals as Independent Contractors because, generally, an employee is more expensive than an Independent Contractors. For an employee, employers must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment taxes on employee wages, none of which are they responsible for in the case of an Independent Contractors.
However, those initial savings may create issues down the road – especially if a former Independent Contractors chooses to petition the DOL for unemployment benefits as a past “employee” of your company. This may trigger a swift audit, and companies are often held liable for that worker’s employment taxes and workers compensation violation – combined with a potential substantial fine depending on whether you have a reasonable basis for having misclassified the worker.
As a rule, ensure that anyone working with you signs a comprehensive contract – whether it’s a partner, an employee, an Independent Contractor or a vendor. Without a contract, these problems became much more difficult to sort through.
Are you an entrepreneur? Check out “Getting Funded: Making Your Business Investment Ready” http://t.co/BEpdy9B – March 31, 2011 in New York City.
by: Benish Shah, Esq. Sheheryar Sardar, Esq., Sardar Law Firm LLC*
For more information on contract law, contact: Sardar Law Firm at sardar@sardarlawfirm.com.
Follow Sardar Law Firm on Twitter: @sardarlawfirm
Research assistance provided by Dave Shorten.
Article source: http://newyorkentrepreneurlaw.wordpress.com/2011/03/22/independent-contractor-v-employee-misclassification-can-cost-you/
+ Read more…Protecting Your Blog from Violative Content
One of the most important statutes to consider when discussing the legal liabilities and obligations of the social networking sites is Section 512(c) of the Digital Millennium Copyright Act.
Section 512(c) removes liability for copyright infringement from websites that allow users to post content, as long as the site has a mechanism in place whereby the copyright owner can request the removal of infringing content. The site must also not receive a financial benefit directly attributable to the infringing activity.
This creates an interesting legal problem for most sites that allow users to post music, photos or video – from Flickr to Blogs that allow guest content. So what are 3 simple ways to protect your blog from violating this law?
(1) Post a legal disclaimer on your blog.
(2) If you are using your blog to generate revenues, including simple things such as Google Ads, do not accept content from users that have not provided releases for all the photos/videos/images/content that they are posting on your blog.
(3) Make sure that comments/content can be posted on your blog without approval. This includes posts in the “comments” portion of your site.
Are you an entrepreneur? Check out “Getting Funded: Making Your Business Investment Ready” http://t.co/BEpdy9B – March 31, 2011 in New York City.
by: Benish Shah, Esq. Sheheryar Sardar, Esq., Sardar Law Firm LLC
For more information on social media law, contact: Sardar Law Firm at sardar@sardarlawfirm.com.
Follow Sardar Law Firm on Twitter:@sardarlawfirm
Follow Social Media Legal at: @socialmedia_law
Article source: http://newyorkentrepreneurlaw.wordpress.com/2011/03/17/protecting-your-blog-from-violative-content/
+ Read more…Entrepreneurs & Contracts: the basics
Before you even start a company, or else plan on developing professional relationships with external agencies, prospective partners and employees, it is critical to understand the laws of contract. When there is a dispute, and often there is at least one during the development phase, all parties will look to the contract. As such, having a lawyer on board from the outset will always be an advantage for your business. Here is a brief list of issues to consider:
- Non-Compete Clauses: you want to protect your business by impeding your partners’ or employees’ rights to directly compete with your business if they leave. This would be framed within a specific time period, limited to a geographic area, but is very important because they possess inside knowledge of your competitive advantage.
- Non-Solicitation Clauses: you don’t want your partners or employees soliciting your colleagues or your customers away from your business.
- Non-Disclosure Agreements: NDAs are no unreasonable, so long as the language in the contract is clear on protecting your right to confidentiality.
- Moonlighting and Loyalty: This may or may not be necessary, depending on the nature of your business. A lawyer could assess its need once you discuss your goals.
- Ownership of Intellectual Property: You may want to protect any processes, templates, systems, or methods created by an employee by retaining any IP rights over them. A contract on the outset will provide necessary protections so that work product created under your business does not ultimately go to a competitor.
- Use, Licensing, Technology Transfer: Social media companies will likely need to outsource its products or services through other digital or online mechanisms, usually other companies. Often, partnerships are created to facilitate such business development. In this context, having contracts to protect the use and licensing of your work product, so that it doesn’t leak or be misused, will make your transitions to the next stage much more efficient. Similarly, if you are interested in commercially exploiting your methods, processes or inventions (Technology Transfer), you will need contracts to protect your financial interests.
Spending a little time on developing a legal structure through contracts, while slightly time-consuming, is a real investment in your new (or old) business. The health of your business can make or break based on the contract, often when you must make strategic decisions for the success of your business. Retaining a lawyer experience with entrepreneurs will only enhance the probability of that success.
Sheheryar Sardar, Esq., is a Partner at Sardar Law Firm LLC with substantial experience in entrepreneurship.
Are you an entrepreneur? Check out “Getting Funded: Making Your Business Investment Ready” http://t.co/BEpdy9B – March 31, 2011 in New York City.
For more information on social media law, contact: Sardar Law Firm atsardar@sardarlawfirm.com.
Follow Sardar Law Firm on Twitter: @sardarlawfirm
Follow Sheheryar Sardar on Twitter: @shezisardar
Article source: http://newyorkentrepreneurlaw.wordpress.com/2011/03/17/entrepreneurs-contracts-the-basics/
+ Read more…Corporate Social Media: Why Adoption Must Be a Collaborative Endeavor
Corporations tend to fragment specific tasks, and for good reason. Efficiency requires structural fragmentation, a calibrated process to move along something as complex as a large company, a living organism complete with working parts. Each department has its mandate and performs within the bounds of its directives, whether it’s marketing, compliance, communications, or accounting. But, as proven studies have shown that companies require cross-departmental collaboration to harness competitive innovation, such is the magic formula for also harnessing the exponential power of social media.
Some executives believe social media is merely a fad, a tool that inherently knows no bounds and therefore cannot be controlled. Others perceive a nominal value in its use and delegate it to the marketing or public relations department. Neither approach captures the potential of a company’s ability to leverage social media to fit its purpose. Leveraging social media is an operational mechanism, not merely a marketing tool. Every department and all levels of a company must engage collaboratively to facilitate and market its products, services and ethos. Social media is another channel to facilitate such collaboration. It provides each layer of a company, including the C Suite, an opportunity to engage internally and externally with its vendors, customers, advisors, stakeholders and constituents. If deployed strategically, social media can transform and export the brand of a company, changing an entire audience’s perception.
This doesn’t merely apply to technology or consumer or retail; traditional professional services such as banking, law and finance can benefit from sophisticated, yet regulated, use of social media as a means to improve corporate image, find client referrals, or opine about a large merger to showcase professional prowess on a truly democratized platform.
The advent of social media should not be taken as antagonist to corporate culture. Every company’s strategic arsenal should include social media as an organic dialogue to further embody the spirit and letter of its purpose. There is no company in the world that doesn’t include in its purpose a quality-oriented focus, whether the company is a service provider or a product developer. Social media must be weaved into the company culture as an expression of what the company does well – what it’s known for.
Social media however cannot be compartmentalized. Social media must be diffused across internal corporate barriers, yet involve each division in its implementation. Corporations are inherent social aggregators that must connect to its audience in a relevant way. Social media is a natural extension of that, carrying the message with even more visibility and impact than traditional media to a niche, but highly engaged and loyal audience. And it’ll cost less.
by: Sheheryar Sardar, Esq., Sardar Law Firm LLC
Are you an entrepreneur? Check out “Getting Funded: Making Your Business Investment Ready” http://t.co/BEpdy9B – March 31, 2011 in New York City.
For more information on social media law, contact: Sardar Law Firm at sardar@sardarlawfirm.com.
Follow Sardar Law Firm on Twitter: @sardarlawfirm
Follow Social Media Legalat:@socialmedia_law
Article source: http://socialmedialegal.wordpress.com/2011/03/15/corporate-social-media-why-adoption-must-be-a-collaborative-endeavor/
+ Read more…Social Media at Corporate Trainings
Social Media at Corporate Trainings
In Social Media on February 2011 at 4:12 am
(It’s not by SLF, but we love it. Great for mitigating social media risk, and for preventing social medial legal troubles)
Before the world of social media the most worrisome part of a corporate training was that some people may not pay attention. For the presenter, the critical concern was that attendees would take notes on the training, including highly prized trade secrets, and tell then to their friends how boring it was. But now, with bloggers and Tweets, the social media risk is much higher: how can a corporate event planner prevent company training materials from ending up on the social media platforms? After all, with a simple click of the “tweet” button, a bored attendee can tarnish the presenter’s reputation while simultaneously releasing potentially confidential information. The risk from social media use is high.
Social Media Risk Strategy – Planners Plan a Tweet
Corporate training planners must understand that despite repeated emails that attendees may not use cell phones during the presentatio or publish training materials on the Internet, more than a few people in that room will turn to social media to alleviate boredom, or to express excitement. The only way to avoid the social media risk in real time is… read the rest of this piece on social media risk at corporate meetings here.
Article source: http://socialmedialegal.wordpress.com/2011/02/10/social-media-at-corporate-trainings/
+ Read more…Protecting Your Blog From Violative Content
Protecting Your Blog From Violative Content
In Technology Issues and the Law on January 2011 at 9:41 pm
One of the most important statutes to consider when discussing the legal liabilities and obligations of the social networking sites is Section 512(c) of the Digital Millennium Copyright Act.
Section 512(c) removes liability for copyright infringement from websites that allow users to post content, as long as the site has a mechanism in place whereby the copyright owner can request the removal of infringing content. The site must also not receive a financial benefit directly attributable to the infringing activity.
This creates an interesting problem for most sites that allow users to post music, photos or video – from Flickr to Blogs that allow guest content. So what are 5 simple ways to protect your blog from violating this law?
(1) Post a legal disclaimer on your blog.
(2) If you are using your blog to generate revenues, including simple things such as Google Ads, do not accept content from users that have not provided releases for all the photos/videos/images/content that they are posting on your blog.
(3) Make sure that comments/content can be posted on your blog without approval. This includes posts in the “comments” portion of your site.
by: Benish Shah, Esq. Sheheryar Sardar, Esq., Sardar Law Firm LLC
For more information on social media law, contact: Sardar Law Firm at sardar@sardarlawfirm.com.
Follow Sardar Law Firm on Twitter:@sardarlawfirm
Follow Social Media Legalat:@socialmedia_law
Article source: http://socialmedialegal.wordpress.com/2011/01/07/protecting-your-blog-from-violative-content/
+ Read more…Assess, Influence & Evolve: 2011
Social Media use surpassed expectations in 2010. Goldman Sachs is now pumping money into Facebook, Maryland has a law regulating social media use by political candidates, and New York courts don’t seem to attach privacy to Facebook use. With this, companies need to start taking social media risks very seriously, to follow the pace of social media. The varying forms of social media communication may differ in popularity on and off, but the existence of the social media mediums must become of paramount concern to businesses as they move forward. Effective corporate communication must incorporate social media, and here are 3 simple steps to help ensure that your company’s social medial lawyer can help you responsibly embrace advances in social media based communication:
(1) Assess
The first step of responsible corporate communication through the social media medium is the involvement of a corporate attorney to understand and analyze the risks to your company through the usage of social media. Without the involvement of a legal entity, the risks will not be apparent. A corporate attorney with an understanding of social media related law risks must assess: (1) how does this company use social media? (2) do company employees using social media on a personal level create a risk to the company? (3) do company managers create a risk to the company through social media usage? (4) how can the company develop policies and monitoring strategies to avoid potential risks?
(2) Influence
Upon developing a thorough understanding of a company’s social media usage and therisks involved, a social media lawyer would help companies develop a place to influence the company’s social media usage. Much like the usage of e-mails and instant-message type online discussions, social media usage can be monitored by companies when used on company laptops. Develop a written company policy that outlines the use of social media through company computers, and by those claiming to represent the company in the online world.
Encourage your employees to be responsible when using social media such as Twitter, Yammer, or Facebook to name a few. Read through blogs discussing your company or written by your employees. Comment on interesting blogs or Twitter posts about your company. Influence the online conversation on various social media platforms. Embracesocial media by participating in it.
(3) Evolve
Remember that social media is an evolving platform, as are the risks. With new additions to the social media world, new risks will inevitably arise. Your company must evolve with these advances and fads, while having a well-hashed out written policy on social media as a whole.
It is critical to evolve while developing a strong and resilient social media policy. But if you decided to assess, influence, and evolve – your company will benefit from the world of freesocial media publicity and corporate communication.
by: Benish Shah, Esq. Sheheryar Sardar, Esq., Sardar Law Firm LLC
For more information on social media law, contact: Sardar Law Firm at sardar@sardarlawfirm.com.
Follow Sardar Law Firm on Twitter:@sardarlawfirm
Follow Social Media Legal at:@socialmedia_law
Article source: http://socialmedialegal.wordpress.com/2011/01/06/assess-influence-evolve-2011/
+ Read more…Maryland’s Social Media Regulation: Political Candidates
Maryland’s Social Media Regulation: Political Candidates
In Social Media, Technology Issues and the Law on January 2011 at 9:40 pm
Article source: http://socialmedialegal.wordpress.com/2011/01/06/marylands-social-media-regulation-via-political-candidates/
+ Read more…Cyber Bullying
Cyber Bullying
In Social Media, Technology Issues and the Law on January 2011 at 9:31 pm
Social networking sites make cyberbullying, a type of bullying that occurs online, easier and more public than bullying through other online activities such as email and instant messaging. A 2009 study found that 17.3% of middle school students have been victims of cyber-bullying. Victims often experience a drop in grades, decreased self-esteem, and other symptoms of depression.
With last year’s rise in cyber-bullying, both within young adults and in the corporate environment, it begs the question: is there legal recourse?
Article source: http://socialmedialegal.wordpress.com/2011/01/06/cyber-bullying/
+ Read more…Social Media Helps PREVENT a Lawsuit?!
Social Media Helps PREVENT a Lawsuit?!
In Social Media, Technology Issues and the Law on November 2010 at 6:17 pm
With companies running afoul of most regulations and boundaries through social media use, it was almost refreshing to find this story of when social media is actually a PREVENTION tool for a lawsuit.
Rae Hoffman blogged a little note to the makers of Advil:
So, I bought a bottle of Advil when I was in the states due to the massive tooth pain I’ve been having. My best friend Stacey goes to borrow some and laughs her ass off when she starts reading the side of the bottle:
If you can’t see it… there is a huge box that says do not use if the seal is broken… closed off as its own statement. Then underneath, there are bullet points that instruct you to:
- have three or more alcoholic drinks every day while using this product
- take more or for longer time than directed
Hey Advil, you may want to consider adding a “Do not:” to the top of that bulleted list cause that reads as instructions, not warnings with the box around the top statement.
With all the social media and digital media monitoring tools out there, this is a god-send to companies. The people who could sue you, are actually the ones calling you out so you can fix a problem with your product.
Now that is the power of social media!
by: Benish Shah, Esq. Sheheryar Sardar, Esq., Sardar Law Firm LLC
For more information on social media law, contact: Sardar Law Firm at sardar@sardarlawfirm.com.
Follow Sardar Law Firm on Twitter: @sardarlawfirm
Follow Social Media Legal at: @socialmedia_law
Article source: http://socialmedialegal.wordpress.com/2010/11/10/social-media-helps-prevent-a-lawsuit/
+ Read more…Top 4 Legal Issues in Clean Tech (we know its not Social Media, but it’s still interesting!)
Clean technologies are receiving increased attention from a variety of stakeholders today. All levels of government, from local to federal, are providing tax abatements, grants and subsidies for the development of clean technologies involving solar, wind, carbon sequestration and nanotechnology. With global warming a household name and the “green” label in vogue, clean technology is enjoying a renaissance in the U.S.
Clean technology venture capital deals and financing have exponentially increased, from under $1 billion in 2002 to nearly $8.5 billion in 2008. Clean technology ventures currently leads the investment pack under the rubric of emerging industries, securing over $2billion in venture capital during the first quarter of 2010.
Challenges however remain. China has undercut U.S. solar panel developers with their rock-bottom prices while producing over four times as much megawatt power per panel in a quarter of the time. As a result, California companies now struggle to compete despite the favorable economic and regulatory environment afforded to them. Further, many of the latest iterations of clean technology such as ethanol-based fuel and wind power have yet to be fully scaled for mass production, or even proven as sustainable mechanisms for supplanting traditional fuel generation.
Despite the global volatility of the clean technology industry and the limited remedial effects of the domestic legal infrastructure, there are creative legal solutions that can be individually negotiated into any clean technology venture deal. These briefly addressed solutions, while not exhaustive, take into consideration both the capital-intensive nature of clean technology ventures and its lengthy beta-to-commercialization process.
1. Method of Financing. Does your CleanTech venture seek debt or equity financing or a hybrid of both? What are the “Market Terms” for such financing? For example, interest rates, warrant coverage and related issues such as registration rights, anti-dilution protection and the warrant strike price for shares of the venture are all terms that should be addressed in any financing deal structure.
2. Intellectual Property. Does your method, process or product have intellectual property protection? How is it distinct and unique from competing or similar technologies? Will it serve as collateral to any debt financing deal to the benefit of a lender in the event of default? Furthermore, IP litigation has become one of the most prolific and hotly contested areas of law, with grievances and lawsuits filed almost daily across the U.S. over who owns the rights to technical minutiae and against monopolistic behavior by competitors. For clean technology ventures operating on an international scale, additional IP issues arise in local or regional contexts, particularly under the European Union which tends vigorously enforce its anti-competitive regulations by mandating that technologies and know-how be open-source.
3. Licensing. In terms of technology, there is a distinction betweenintegrated products, those products that combine technologies into systems, andcomponent-based products, illustrated by example as renewable batteries, photovoltaic membranes, or nanochips. The degree of licensing to third parties will depend on how your product is characterized, the applied business model and the nature of the market in which it’s being introduced. If your product is a component, licensing will be a primary way to engage customers and clients since it cannot be economically viable unless it’s utilized in other computing, industrial or communication hardware or software aggregated on a systemic level.
4. Material Adverse Conditions. MAC clauses have received their fair share of attention across industries. As a contractual provision, MAC clauses define changes in the business, operations and conditions of a company that are material and adverse to the contracting party. MAC clauses come up in both debt financing deals as a “catch-all” safety event for lenders in the event of default and also with clients and customers who seek to limit their obligations under an agreement should an adverse condition arise. Case law has generally imposed a high standard on contracting parties seeking relief under MAC clauses, often hinging on the precise language of the clause itself. A “material” change must be substantial, taking into account the long-term perspective rather than, for example, a drop in quarterly earnings due to market conditions or strategic business decisions.
As a CleanTech venture, a narrowly defined MAC clause, coupled with morecarve-outs, will impose a higher threshold on the contracting party should it want to void the agreement based on perceived adverse conditions.
The clean technology industry is growing and evolving at a frenetic pace. The legal framework is nascent at best. Emerging legal issues however, are becoming more nuanced as novel business cycles and disruptive technologies are upending the traditional corporate stratosphere. As legal issues sharpen, CleanTech ventures should understand from the outset that their financial success and competitive advantage is based not only on sky high visionary thinking, but the transactional details paving the road underneath.
Sheheryar Sardar, Esq. Benish Shah, Esq., Sardar Law Firm LLC
Article source: http://socialmedialegal.wordpress.com/2010/11/09/top-4-legal-issues-in-clean-tech-we-know-its-not-social-media-but-its-still-interesting/
+ Read more…Jurors: Have you commented on a blog?
Jurors: Have you commented on a blog?
In Social Media, Technology Issues and the Law on November 2010 at 9:24 am
One of the questions asked to the jury pool in Washington asked: “Have you ever written a letter-to-the-editor or ‘blog’ about any story you may have read or heard about relating to violent crime?”
While juror questionnaires are different in every trial, the question shows that simply commenting on a blog is now something that one has to keep track of – and it has an affect on jury status. The attorney on that particular case noted that the “blogging” question could help reveal whether potential jurors have pre-formed opinions about the case, the defendant, or violent crime in general. If a possible juror admits to having commented on a news story a violent crime, it raises a red flag for an attorney and allows them to probe more.
Attorneys said they were looking for fair and impartial jurors – not the type that would pass judgment based simply on a news story without listening to any of the evidence.
So start memorizing when and what you comment on, because remember, jury questions are answered under oath.
by: Benish Shah, Esq. Sheheryar Sardar, Esq., Sardar Law Firm LLC
For more information on social media law, contact: Sardar Law Firm at sardar@sardarlawfirm.com.
Follow Sardar Law Firm on Twitter:http://twitter.com/sardarlawfirm
Follow Social Media Legal at: http://twitter.com/socialmedia_law
Article source: http://socialmedialegal.wordpress.com/2010/11/08/jurors-have-you-commented-on-a-blog/
+ Read more…Social Media & Corporations: Assess, Influence, & Evolve
Sheheryar T. Sardar and Benish A. Shah discuss Social Media usage and risks for corporations, and the absolute need for corporate social media policies.
Social Media is akin to the e-mail era: it is so convenient that it will not fade away and social media law must follow the pace of social media. The varying forms of social media communication may differ in popularity on and off, but the existence of the social media mediums must become of paramount concern to businesses as they move forward. Effective corporate communication must incorporate social media, and here are 3 simple steps to help ensure that your company’s social medial lawyer can help you responsibly embrace advances in social media based communication:(1) Assess
The first step of responsible corporate communication through the social media medium is the involvement of a corporate attorney to understand and analyze the risks to your company through the usage of social media. Without the involvement of a legal entity, the risks will not be apparent. A corporate attorney with an understanding of social media related law & risks must assess: (1) how does this company use social media? (2) do company employees using social media on a personal level create a risk to the company? (3) do company managers create a risk to the company through social media usage? (4) how can the company develop policies and monitoring strategies to avoid potential risks?
(2) Influence
Upon developing a thorough understanding of a company’s social media usage and therisks involved, a social media lawyer would help companies develop a place to influence the company’s social media usage. Much like the usage of e-mails and instant-message type online discussions, social media usage can be monitored by companies when used on company laptops. Develop a written company policy that outlines the use of social media through company computers, and by those claiming to represent the company in the online world.
Encourage your employees to be responsible when using social media such as Twitter, Yammer, or Facebook to name a few. Read through blogs discussing your company or written by your employees. Comment on interesting blogs or Twitter posts about your company. Influence the online conversation on various social media platforms. Embracesocial media by participating in it.
(3) Evolve
Remember that social media is an evolving platform, as are the risks. With new additions to the social media world, new risks will inevitably arise. Your company must evolve with these advances and fads, while having a well-hashed out written policy on social media as a whole.
It is critical to evolve while developing a strong and resilient social media policy. But if you decided to assess, influence, and evolve – your company will benefit from the world of freesocial media publicity and corporate communication.
More articles on Social Media Law can be found here.
By: Benish Shah, Esq. & Sheheryar Sardar, Esq., Sardar Law Firm LLC
For more information, contact: Sardar Law Firm at sardar@sardarlawfirm.com.
Follow Sardar Law Firm on Twitter: http://twitter.com/sardarlawfirm
+ Read more…What Social Media Companies Should Know About the Contract
Sheheryar T. Sardar discusses Social Media companies and their potential contract issues.
Social media has grown exponentially in the last decade, with enterprising companies creating uncontested market space in the online and digital industries. Whether its new search engines or unique services offered to niche markets within the browsing population, social media has transcended all ages, incomes and geographic regions. Due to the fast-paced nature of social media, ambitious entrepreneurs often overlook the need for contracts for their business. While staying ahead of the competition is paramount, creating and maintaining contracts will only enhance your edge.
Before you even start a company, or else plan on developing professional relationships with external agencies, prospective partners and employees, it is critical to understand the laws of contract. When there is a dispute, and often there is at least one during the development phase, all parties will look to the contract. As such, having a lawyer on board from the outset will always be an advantage for your business. Here is a brief list of issues to consider:- Non-Compete Clauses: you want to protect your business by impeding your partners’ or employees’ rights to directly compete with your business if they leave. This would be framed within a specific time period, limited to a geographic area, but is very important because they possess inside knowledge of your competitive advantage.
- Non-Solicitation Clauses: you don’t want your partners or employees soliciting your colleagues or your customers away from your business.
- Non-Disclosure Agreements: NDAs are no unreasonable, so long as the language in the contract is clear on protecting your right to confidentiality.
- Moonlighting and Loyalty: This may or may not be necessary, depending on the nature of your business. A lawyer could assess its need once you discuss your goals.
- Ownership of Intellectual Property: You may want to protect any processes, templates, systems, or methods created by an employee by retaining any IP rights over them. A contract on the outset will provide necessary protections so that work product created under your business does not ultimately go to a competitor.
- Use, Licensing, Technology Transfer: Social media companies will likely need to outsource its products or services through other digital or online mechanisms, usually other companies. Often, partnerships are created to facilitate such business development. In this context, having contracts to protect the use and licensing of your work product, so that it doesn’t leak or be misused, will make your transitions to the next stage much more efficient. Similarly, if you are interested in commercially exploiting your methods, processes or inventions (Technology Transfer), you will need contracts to protect your financial interests.
Spending a little time on developing a legal structure through contracts, while slightly time-consuming, is a real investment in your social media business. Your business will make or break based on the contract, often when you must make strategic decisions for the success of your business. Retaining a contract lawyer will only enhance the probability of that success.
This article was published by Sunshine Suites, here.
You can follow Sardar Law Firm on Twitter: twitter.com/sardarlawfirm
+ Read more…Employment Law in a Downturned Economy
Sheheryar Sardar, Esq. recently spoke at New York University on employment law and discrimination issues. The event was sponsored by the Council on the Advancement of Muslim Professionals, New York chapter (CAMP-NY).Professionals of diverse backgrounds attended the event, keen on understanding how they can protect their rights under federal and state law in a precarious economic environment. The event included a powerpoint presentation distilling critical and timely information on the categories and elements of discrimination, what behavior violates the law, and how severance agreements should be understood. The event was followed by a lengthy and insightful Q&A session.
Look out for SLF’s next seminar. A copy of the presentation can be found here.
+ Read more…E2: Investor Visas
The SARDAR LAW FIRM offers strategic representation to individual and corporate clients in regards to E2 Investor Visas. Contact us at 631.838.0178 to set up a consultation, or email us at sardar@sardarlawfirm.com.
Investment Requirements
Foreign investors who invest a “substantial amount of capital” in a US business, and who will develop and direct the business may apply for the E2 investor visa, if their country of citizenship has the required treaty (Pakistan has this treaty) with the US. Foreign companies whose owners are nationals of a treaty country may potentially petition their employees for the E2 visa. Email us at sardar@sardarlawfirm.com for more information or a consultation.The investor must demonstrate that he or she has control of the enterprise by showing ownership of at least 50 percent of the business and possessing operational control through a managerial position or other means. The investor must have already invested in the US business or is actively in the process of investing in the business.
The investment must be substantial. The law does not specify a minimum dollar amount to qualify. Instead, “substantial investment” is defined as sufficient funds to ensure the investor’s financial commitment to the successful operation of the E2 enterprise and large enough to support the likelihood that the investor will successfully direct and develop the business. The investment enterprise must be more than a marginal business solely for earning the investor’s living.
The business must a real and operating enterprise. If the applicant is not the principal investor, he or she must be employed in an executive or supervisory capacity, or possess skills that are highly specialized and essential to the operations of the commercial enterprise. Ordinary skilled or unskilled workers do not qualify.
Non-Immigrant Intent Requirement
The E2 visa has a nonimmigrant intent requirement. Nonimmigrant intent means the applicant must intend to depart the United States when the E2 status terminates. However, holders of E2 visas may renew their visas indefinitely as long as they continue to own and operate their E2 enterprise or work for a qualifying E2 business in the case of an employee. Email us at sardar@sardarlawfirm.com or call 631.838.0178 for more information or a consultation.
Application Process
If the investor or employee is inside the US, he or she may apply directly to the US Citizenship and Immigration Services (USCIS, formerly INS) for a change of status, extension of stay, or change of employment without leaving the country.
The E2 category does not require a petition for employment, if the investor is outside of the US. This means the investor or employee may apply for the E2 visa on his or her own behalf directly to a US Embassy or Consulate abroad. The E2 visa may be issued for up to 5-year validity period and may be renewed indefinitely, as long as the applicant continues to satisfy the visa requirements. The actual length of the visa depends on the treaty between the US and the applicant’s country and the consular officer’s discretion.
You should understand that a change of status is not a visa. Once the person leaves the United States, he or she must apply for an E2 visa at a US consular office before returning to the United States. Only a consular office may issue a visa. The USCIS cannot issue a visa. Email us at sardar@sardarlawfirm.com or call 631.838.0178 for more information or a consultation.
+ Read more…
