Daily Archives: October 19th, 2016

California Halts Efforts to Seek Copyright Protection for Public Records

On June 21, 2016, we published a post discussing an effort by the State of California to obtain copyright protection for public records.  The proposed legislation sought to give copyright protection to public records created using taxpayer funds (such as maps, hearing transcripts, legislative reports, etc.), and would have authorized state and county governments to control and even prohibit their use.  The proposed legislation met with strong opposition, primarily from free speech and open government advocates.  Fortunately, the author of the controversial legislation (Assemblyman Mark Stone of Monterey Bay) saw the error of his proposal and has abandoned the proposed legislation.

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What is the Difference Between Business Entity Names, Trademarks, and Domain Names?

One of the most frequent questions we must address in our practice is what is the difference between business entity names, trademarks and domain names in terms of legal protection and intellectual property status.  A recent article in Forbes Magazine (republished from an article in Entrepreneur Magazine) has a good discussion on this topic.  The article can be found at this link:  http://fortune.com/2016/07/05/domain-names-trademarks.

We highly recommend this article to gain insight on this important subject.

Dissolution of California LLCs Will Be Easier and More Common Sense Starting January 2017

Consider the following two situations:

  1.  Two people form a California corporation as equal owners.  One of the owners later decides he/she wants to dissolve the corporation but the other owner objects.
  2. Two people form a California limited liability company (LLC) as equal owners (members).  One of the members later decides he/she wants to dissolve the LLC but the other member objects.

Under current California law, the owner who wants to dissolve the corporation in the first scenario can do so without having to resort to court action because a voluntary corporation dissolution can be initiated by 50% voting power.  However, under current California law, the member who wants to dissolve the LLC in the second scenario must file a costly and potentially time consuming lawsuit to obtain a court order to dissolve the LLC since the vote a majority of the members of an LLC (not just 50%) must vote to initiate a voluntary dissolution of an LLC under Corporations Code sections 17707.01 and 17707.02.  Such an anomaly clearly makes no sense.

Fortunately, Governor Brown recently signed legislation to end this anomaly.  Effective January 1, 2017, the LLC dissolution law will be harmonized with the corporate dissolution law.  Consequently, starting January 1, an LLC member with 50% voting power can initiate a voluntary dissolution of an LLC just as can be done with corporations.  Of course, just as is true with most other aspects of LLC operation and management, the members of an LLC remain free to draft their articles of formation and operating agreements to require a higher voting percentage than 50% for a voluntary dissolution, to require judicial dissolution, or to have other terms and conditions for voluntary dissolution.

New Rules for Trademark Trial and Appeal Board Practice

The Rules of Practice for the Trademark Trial and Appeal Board (TTAB) are changing effective January 14, 2017. The new rules will be applicable to all proceedings, including those filed before January 14, 2017 and pending on that date.  The new rules will apply to inter partes proceedings (oppositions, cancellations, concurrent use) and ex parte appeal proceedings.

More information about the new rules can be found on the TTAB website at this link:

https://www.uspto.gov/trademarks-application-process/trademark-trial-and-appeal-board-ttab?utm_campaign=subscriptioncenter&utm_content=&utm_medium=email&utm_name=&utm_source=govdelivery&utm_term=

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