Posted in Articles

China introduces new rules to “purify” online video content

With effect from 1 July 2017, new rules have been introduced by the China Netcasting Services Association (“CNSA”) which increase the regulatory scrutiny applied to online video content. The rules, which are aimed at video hosting services which allow users to upload content, are drafted broadly, meaning that almost all video content will be affected.

To learn about these effects and insights into them, please read the article written by our colleagues Horace LamEdward Chatterton, and Reking Chen.

 

Posted in Articles

Virtual currency gets regulated under anti-money laundering laws

Virtual currency for the 1st time falls under Italian anti-money laundering law with the decree implementing the European 4th AML Directive. The long awaited Italian legislative decree implementing the European 4th anti-money laundering (AML) directive (the “Italian AML Decree“) is now in place and you can read here about the impact on the gaming sector and here on the broader scope of changes introduced. To learn about the changes for virtual currency as well as the legal ramifications surrounding the law, please read the full article written by our colleague  Giulio Coraggio.

Posted in Reports

Israel Privacy and Data Protection Law

Our friends at Yigal Arnon & Co summarized two recent developments in Israeli Law: the first concerning the ILITA’s announcement nullifying database registration application fees and annual maintenance fees, the second on the New ILITA directive on Direct Mail and Direct Mail Services. To learn more about these recent developments please read the full memorandum.

 

 

Posted in Articles

US lawmakers introduce bill to address cybersecurity flaws in the Internet of Things

A bipSmart technology with global logisticsartisan group of US senators has introduced the Internet of Things (IoT) Cybersecurity Improvement Act of 2017, which seeks to impose baseline cybersecurity standards for IoT devices sold to the US government.  The bill, defines “Internet-Connected Device” to mean “a physical object that—(A) is capable of connecting to and is in regular connection with the Internet; and (B) has computer processing capabilities that can collect, send, or receive data.” The reach of the bill’s legislation would be quite broad notwithstanding its limitation to devices placed with government agencies. The bill implements the baseline security requirements by requiring the Director of the Office of Management and Budget to coordinate with certain government agencies to prepare and issue guidelines regarding the security of IoT devices placed with federal agencies.

To read more about the bill and its implications, please read the article written by our colleagues Amanda Fitzsimmons and Vinny Sanchez.

 

Posted in Articles

New Ruling by the Supreme Court of Israel Marks a Potential Setback For Private Enforcement Against Alleged International Cartels

Recently, in a class action filed against several alleged member of the alleged international LCD cartel, the Supreme Court of Israel issued a decision, relating to the procedural matter of service. Although private enforcement of alleged international cartels has been on the rise in recent years; the decisions represents a potential setback for plaintiffs seeking to bring private actions against international cartels. To learn more about the backgroundthe casethe decisionand its lasting implications read the article from our friends at Tadmor & Co. Yuval Levy & Co.

Posted in Reports

GDPR-ready contract terms: access our standard templates

One of the larger tasks facing organizations as they prepare for the new EU General Data Protection Regulation is how to tackle data governance and compliance controls in the supply chain. This is often the Achilles heel for compliance risk, and the very prescriptive requirements of GDPR will require a thorough review of due diligence, contracting and ongoing contact management and audit practices.

GDPR imposes stringent requirements for controllers appointing processors, including prescribing terms that must be stipulated in a contract or other legal act (Article 28). The European Commission and supervisory authorities have the power to adopt standard contractual clauses to meet these new requirements.

As a result, organizations need contract language that helps them tackle the sizeable
“re-papering” challenge and ensure supply chains are GDPR ready for May 25, 2018.

DLA Piper has been collaborating with the International Regulatory Strategy Group (IRSG), a UK-based body led by practitioners from the financial and professional services industry. IRSG aims to be one of the leading cross-sectoral groups in Europe for the financial and related professional services industries to discuss and act upon regulatory developments.

Together with IRSG, we have created a standard set of template GDPR processor terms intended to meet the requirements of GDPR Article 28 and also build in controller-to-processor standard contractual clauses for restricted transfers. Although the IRSG is largely made up of organizations in the financial services sector, the terms are not sector specific and serve as a useful resource for organizations across all sectors.

To obtain the templates free of charge, or for further information, please contact Jeremy Lustman (jeremy.lustman@dlapiper.com).

Posted in Articles

Trade secrets are more important, and trade secret litigation is more common: 7 questions to ask yourself about protecting your company

In today’s business environment, trade secrets have become much more important, and trade secret litigation much more common.  Three long-term trends– (i) reduction in patenting and corresponding increase in keeping technical information secret; (ii) ease and frequency of trade secret theft; and (iii) better and more venues for trade secret litigation– make the identification, protection and enforcement of trade secret rights more critical than ever.

What do you need to be considering to protect your company in this environment? Here are seven questions to ask in an Intellectual Property and Technology Alert written by our colleagues Paul Steadman and Ferlillia V. Roberson.

Posted in Articles

SEC report on tokens as securities: seven takeaways

One of the more interesting phenomena in early-stage investing is the recent emergence of initial coin offerings (ICOs), token generation events (TGEs), or similar distributed ledger or blockchain-enabled means for raising capital. Much has been written about whether the tokens issued in these structures involve “securities”, and last week, the SEC issued a report on tokens as securities, using The DAO (a crowdsourced venture capital platform created by Slock.it and based on the Ethereum blockchain) as a lens for analyzing the issue.

For an overview of the SEC’s report and the top 7 takeaways from the SEC’s analysis, please read the Corporate Governance Alert written by our colleagues Andrew D. Ledbetter and Trenton C. Dykes.

 

 

Posted in Articles

How to Avoid Startup Legal Headaches

This post is part of Acuity’s Master Class Series, dedicated to shedding light on financial and other influential industry topics. 

Entrepreneurs are known for breaking boundaries and taking risks, but when it comes to startup legal matters, proceeding with caution is the smartest approach. Acuity recently sat down with Brian Gordon, a Partner in our Atlanta office, to discuss the legal side of startup funding.

Q&A Lightning Round With DLA Piper

Q: First off, tell us a bit about DLA Piper and what you offer to local startups.
DLA Piper is a global law firm, helping our clients with legal needs all around the world. Our Atlanta office represents businesses of all types (from private equity and venture capital funds to Fortune 100 companies) throughout the world on regional, national and international matters. DLA has a long history representing emerging technology companies; we love representing these clients as they seek to raise money and need creative legal solutions to grow their business.

Why do startups need to educate themselves about the legal side of funding?
The choices that early stage companies make at the beginning can have drastic effects down the road. Every company is different, and it’s important to get sound legal direction right from the beginning. Think through the key facets of your business and what potential roadblocks you will face in the fundraising process or eventual sale. For example, should your startup operate a C Corp or an LLC? This choice should be strategic as it can have major implications for the future of the business.

Do founders NEED to talk to an attorney when determining their business structure?
In an ideal world, yes. Your business entity will drive a lot of the conversation during the fundraising process. For example, most institutional investors like to invest in C Corps, so if you started out as an LLC, you’ll hit a roadblock when you go to raise money. Switching business structure costs time and money down the line, so why not just start out the right way? Also, it makes the most sense to lock down a team of advisors who understand your expected path and can help you anticipate what will happen if things don’t go as planned. Your CPA can help with this, but they are typically more focused on the immediate consequences of business structure and less on the overall ecosystem of fundraising and M&A. Seek legal advice early whenever possible.

What are some of the biggest legal pitfalls you see when people are setting up their company or raising funds?
I would say people trip up in a two main areas. First is equity raising. An early stage company needs to be extremely careful when managing and tracking their cap table. During these very early stages of a business, entrepreneurs will make big promises to get their big idea moving forward. Unfortunately, they often don’t fully understand the consequences of those promises nor do they have the documentation to back it up.

Second is intellectual property. Early stage entrepreneurs need to make sure that whatever intellectual property is being developed for and by the company is owned by the company. This strategy needs to be fully outlined and documented. Make sure your founders sign their IP to the company and that employees have the appropriate assignment provisions. All too often, a company will go out to raise money only to realize they have no idea whether they own their intellectual property. It’s a painful realization and difficult to fix retroactively.

So those are two key pieces of the puzzle: making sure you know who owns the company and making sure the company owns its assets. For most early stage companies, the key asset is intellectual property.

Continue Reading

Posted in Articles

LaTam Law – Legal Insights on Issues Important to Latin America

 

As business between Israel and Latin America continues to grow exponentially, we wanted to share some of DLA Piper’s LaTam resources with you:

For more information on our LaTam practice or for additional resources, please contact Jeremy Lustman (jeremy.lustman@dlapiper.com) or Naomi Maryles (naomi.maryles@dlapiper.com).

 

 

LexBlog