When You Should Call A Lawyer

You wake up one morning after a thunderstorm-filled night to find your driveway filled with roofing shingles, the problem being they’re from your roof and you didn’t order them. You don’t think twice …you call a roofer.

You turn on your kitchen tap only to find a torrent of water flowing from beneath your sink into the cabinet below. Unless you’re handy with plumbing, you don’t think twice…you call a plumber.

Every time you turn on your microwave or your air conditioner cycles on, one of your circuit breakers blow. You don’t think twice…you call an electrician.

Well, and I’m not merely being self-serving here, there are times when you should not think twice…you should call a lawyer. Here are some examples  of when you should call a lawyer: [These are not meant to be all-inclusive.]

1. You have children. In the event that you and your partner and not your kids happen to be traveling on the wrong plane at the wrong time or be in the wrong country at the wrong time or hit an icy patch of road and meet your demise, who will take care of your child or children. You should have a friend or relative you can trust and who shares your values and who your children know be selected as a guardian and you should have a clause naming that guardian included in you and your partner’s wills. Of course let the guardian know first.

2. You have irresponsible children. If you have one or more children who like to spend lots of money on the wrong things and, in the event of your demise, stand to obtain lots of money, you might want to set up your will or trust in such a way that they can’t use your money when you’re dead in ways that you would not want them to use your money when you were alive.

3. To have a will and/or trust prepared.

4. When you start a business. One of my favorite things not to do is incorporate and then call a lawyer and ask them to trademark your name. First, ask a lawyer to see if the name is available, then incorporate or set up a limited liability company (whichever is appropriate in your circumstances) in that name, assuming that it’s available, and then, if you wish to register that name as a trademark, do so in the corporate or limited liability company’s name. See http://markscounsel.com/tips-from-a-seasoned-lawyer/

5. When you start a business. To enjoy the advantages of protecting yourself from personal liability from the liabilities of the business, either incorporate it or form a limited liability company. If the business is intended to remain in the hands of a small group of original owners or is created for a limited purpose, such as to build a building and then sell it, a limited liability company offers the advantage of simplicity in terms of legal requirements. However, if you intend to seek additional investors in the business in the future or sell the business to Google, then incorporate as you can issue securities (shares) in the business to those investors and raise capital as that business grows. [Note that there are other ways to finance a business, e.g., though loans or lines of credit with a financial institution.] Also, note that if you incorporate in Delaware or Nevada, if your company actually does business in Illinois, you will need to file an application for authority to transact business in Illinois, pay franchise taxes here and, in doing so, perhaps disclose information that you incorporated in Nevada to avoid disclosing.

6. When you start a business. If you have partners, you probably want a partnership agreement with them. If you hire a key employee, e.g., a programmer who will have access to your business’ key data and operations, you probably want to have her sign an employment agreement. If your business involves an innovative product or service you will probably want all of your employees to sign confidentiality and non-disclosure agreements.

7. When you develop that innovative product or service, whether you’re an individual, a corporation or a limited liability company, you will need to protect it from being stolen by your employees or your competitors. There are things you can do to do this, by protecting it as a trade secret, by patenting it, or by copyrighting it; if it is in the form of computer code, or if it’s a board game or recording or motion picture, for example.

8. When you sell those goods or services, to protect your brand by registering that brand as a trademark or service mark. See http://markscounsel.com/dont-wait-to-register-your-mark/

9. When you set up your website, if you hire a developer to do it for you, to make sure that you own the rights to it. See http://markscounsel.com/selecting-domain-name/

10. When you get a demand letter from a lawyer, whether it’s asking you to stop having your dog poop on your neighbor’s lawn or asking you to stop infringing a competitor’s trademark or asking you to stop using a domain name, don’t try to handle it yourself. Even if you think the claim is baseless, obviously, the sender doesn’t believe so, otherwise he wouldn’t have gone to the expense of retaining a lawyer to write a letter and, presumably, that lawyer didn’t take the complainant’s money if he didn’t think the complainant had a winnable case. So, get a lawyer involved and quickly. As unpleasant as dealing with the matter may seem at first, going to court, which you may be able to avoid, will be a lot more unpleasant and expensive.

11. When you buy or sell a house or condo. You should have a lawyer review the contract or prepare the contract if you are selling it yourself. He may raise issues that could get you a better price on either the purchase or sale or advise you on how to do so.

12. There are many other instances I could raise. I don’t practice matrimonial law so I won’t advise you to get a prenup or whether you need a divorce lawyer; if you’re not sure, call a lawyer…

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YOUR SECURITY IN THE CLOUD

The issue of computer security and your privacy when using your computer or mobile device went beyond the technology pages and blogs earlier this month when it was revealed that intimate images of dozens of celebrities including actress Jennifer Lawrence and supermodel Kate Upton were leaked online by an anonymous hacker who claimed to have stolen materials from more than 100 entertainers. These include nude photographs of the two young women identified above as well as other movie and television personalities and were reportedly accessed through a security weakness in the celebrities’ iCloud accounts.

Regardless of the fact that Lawrence appears clad largely in blue paint in X-Men First Class and Upton was clad also only in paint in the 2011 Sports Illustrated Swimsuit Issue the law recognizes a right of privacy against intrusion upon an individual’s physical solitude and the appropriation of an individual’s likeness for commercial benefit. While an individual may choose to take a “selfie” or make a sex tape of herself with her partner, she has the right to not have those images disclosed publicly and, as a celebrity, it is more than likely that those images would be offered for sale for someone’s commercial benefit.

So, here’s the problem, how do you, whether you’re Jennifer Lawrence or the girl (or guy next door) with a cell phone ensure that the images one takes on one’s phone or, any information that you input onto that phone or your computer; everything from your texts and e-mails, your vacation plans, your financial information, your sources, if you’re a journalist, or your briefs, if you’re a lawyer, stay private. In the case of the celebrity hack, the accounts were compromised by a very targeted attack on user names, passwords and security questions.

Which brings us to you and me. On August 6th of this year, Molly Wood, the technology columnist for the New York Times, reported that hundreds of millions of email addresses and other types of personal identification were found in the hands of Russian hackers. She wrote, assume that your personal information is stolen, and recommended that you change your password for sites that contain sensitive information like financial or credit card data.

Here lies the conundrum. If you log in to a typical site that holds financial or credit card data, that site will usually pose a series of security questions such as “Where did you go on your honeymoon?,” “What is the name of your dog?,” “What was the first car that you owned?,” “In what hospital were you born?,” “What was the name of your elementary school?” or “What city would you like to visit?” Now go to your Facebook profile or page. There you will likely find the name of your hometown, pictures of your dog and maybe your vacation photos. Now, let’s recall how Jennifer Lawrence’s photos were obtained; through a targeted attack on user names, passwords and security questions. Unless you grew up in New York City, a hacker could easily run through the names of the elementary schools in your hometown, if he could find your birthplace, he could easily run through the names of the hospitals there; I haven’t lived in Washington D.C. in many years and I can still identify the names of eight hospitals located there at the time that I lived there. If someone can get on your Facebook page, they could probably find out the name of your dog and from your photos what city you would like to visit. So a brute force attack could probably get through the bar posed by your security questions. As for your password, it is suggested that it not be based on dictionary words and that even a word obscured with symbols and numbers can be cracked relatively quickly. So use a password like 4J@2stiI. That’s a great idea….now try to remember it and use a different similarly designed password for Google, Twitter, Instagram, Facebook, your bank, your investment account, Uber, etc. Unless you’re an idiot savant, I doubt that you can. So Molly Wood suggests using a password manager; i.e., a site that creates a unique password for each website you visit and stores them in a database protected by a master password that you create. Here, I must disagree with Ms. Wood. Would you hand over the keys to your home to someone who knocks on your door and promises that he’ll take care of your house? I doubt it. People ensure the security of their home to either companies with a long-standing reputation for safety like ADT (They’ve been around since 1874.) or leave their keys with a trusted neighbor or relative whom they know very well. The value of your investment account or bank account or personal reputation, all of which may be accessed by someone with your password, may be much greater than that of your house. Would you leave your password with a company that may not be around in three years? Even the most innocent photo that you put in your iCloud account or Google Drive may not be so innocent if you’re pictured associating with someone about whom someone might draw the wrong inferences, for example, an attractive colleague at work or someone who is later indicted, e.g., an Illinois politician.

So, what should you do?

1.Pick a strong password with a combination of numbers and letters, capitals and small letters and punctuation marks that you can remember. Use at least eight or more characters. Don’t use the same user name/password combination for multiple websites.

2. Play with the security questions. For example, you went to Pyongyang on your honeymoon, your dog’s name is FreddyMercury, the first car that you owned was a Tucker, your were born in the Damascus Hospital for the Criminally Insane, your elementary school was the Chernobyl grammar school and the city you’d most like to visit is Mogadishu. Answers like these will be more difficult to guess than if your dog’s name was Fluffy, your first car was a Ford, you were born in St. Joseph’s Hospital and the city you’d most like to visit is Paris. Don’t everyone use these examples or the won’t work.

3. Use two-factor authentication. This works with Google. If someone tries to access your Google account on another computer, including you, Google will send a one-time code via text message to your cell phone. If you happen to be using checking your Gmail in a public library, this can be embarrassing. You then enter that code to log in. Two-factor authentication should become standard as it essentially generates a random multi-digit number that you must key in to gain entrance to a web site that resides in the cloud and if your cell phone has a “kill switch,” in the event it is stolen, and you activate that “kill switch” it becomes useless as a key to your personal records located in the cloud.

Obviously, one way to avoid these issues is not to put your personal information on the “cloud.” The problem with this is that your Gmail, Google browsing history, Facebook posts, on-line banking records, credit card statements, mobile phone calling records, tweets, Amazon purchases and buying preferences and Instagram photos are all on the cloud and, chances are, you don’t want to give up using Google, sending out e-mails, banking on-line, social networking or sending photos to your friends. Anil Somayaji, an associate professor at Carleton University in Ottawa is quoted as saying, “The thing with the cloud is when it gets compromised, it can get really compromised.” Cloud providers could go bankrupt, change their policies in a way that prevents you from accessing your data or suffer a security breach themselves. Somayaji goes on to say, while he thinks services like Microsoft, Google and Yahoo are “really good” and have good policies, “they’re just one software glitch away from blowing away all the email you’ve ever had.

 

So this is what I recommend. Buy a back-up hard drive or a DVD or a USB key and maintain a spare copy of your photos and important documents and e-mails. I save these documents and e-mails in .PDF format so that they are easily accessible as software versions change or in the event that I or someone else who needs access to those files in the future is using a different OS from the one that I am using now. Don’t carry the back-up with you; if at home, keep it in a locked fire-safe box and, if you are leaving town for an extended period, and you have a safe-deposit box, put it there. If the back-up is in the Office, at least keep it in a secure locked drawer, and if you can do it safely, bring it home on weekends and on vacation and follow the procedure noted above. Encrypt access to the back-up drive if possible. If you’re going on vacation or working at a Starbuck’s leave the backup disk in one of the safe locations noted above. Wait until you return home or to the office to back up your data. Also, perform a back-up every day that you use your computer. If you have a mobile phone, the principle involved is the opposite. Here, you are carrying the drive with all your personal information and it is with you all the time. Here, to protect yourself, make sure that phone has a “kill switch” and a password so no one else has access to your phone other than you. Then back up the data on your phone to the cloud using the password tips noted above.

And remember, if you travel, the border is a privacy-free zone and the government, namely the U.S. Customs and Border Protection Agency, has the right to take a look at your laptop computer, open up the folders on that computer and peer inside as it can do with your luggage. And if you travel to China, as I noted back in April of 2012, the Chinese have installed key-logging software on visitors’ laptops which renders password protection useless. In addition, Bluetooth and Wi-Fi connections can be used to remotely access computing devices, which include smartphones, tablets and laptops. That New York Times has quoted a former counterintelligence official as stating, “If a company has significant intellectual property that the Chinese and Russians are interested in, and you go over there with mobile devices, your devices will get penetrated.” Chinese hackers have been known to access computing devices’ microphones and cameras remotely. In fact, an official of McAfee, the computer security company, was quoted as stating that if any employee’s device was inspected at the Chinese border, it can never be plugged into that company’s network again.

So the bottom line is you can’t avoid the cloud, but if the information is really personal and of an intimate nature or otherwise potentially embarrassing or, for whatever reason, you are never going to want to disclose it to the world, don’t put it on Facebook or Tweet about it and lock it up outside the cloud where neither thieves nor hackers can have access to it. The celebrities who had their intimate photos hacked should have treated them as if they were the galleys to their autobiography or their diary or as Apple treats its product development plans; in the most secure manner, out of the rest of the world’s reach and not in a data center combined with the confidential information of thousands of other people and likely accessible to a 20-year old something male with a great deal of technical computer knowledge. Just ask the NSA…Edward Snowden was 29 when he walked off with their secrets.

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THE .TV DOMAIN NAME & THE STORY OF THE INTERNET

Actually, Al Gore didn’t invent the Internet. But we (the United States) did. The predecessor was something called the ARPANET, the concept for which was devised by one J.C.R. Licklider who was hired by the U.S. military to interconnect their main computers at Cheyenne Mountain, Colorado, which was the command center for the North American Aerospace Defense Command, Strategic Air Command headquarters, and the Pentagon in Washington, DC. His successor, Robert Taylor, took the ARPANET live in 1969 connecting the University of California, Los Angeles and the Stanford Research Center. By 1981, there were 213 hosts on the ARPANET and two years later it adopted the TCP/IP protocol, which is used by the Internet to specify how data should be packetized, addressed, transmitted, routed and received at the destination. That same year, the military portion of ARPANET was broken off and became MILNET.  However, because the other side of the ARPANET was government funded, it was limited to non-commercial uses. The final restrictions on carrying commercial traffic ended in 1995 when the National Science Foundation ended its sponsorship of a major part of the Internet backbone, which was initially created to link researchers to the Foundation’s funded supercomputing centers.

Meanwhile, back in 1984 the ARPA-Internet and the DARPA research community set up domains, which were described as administrative entities for the new networks. The idea was that in the future most of the top level names would be very general categories like “government”, “education”, or “commercial”.  The motivation is to provide an organization name that was free of undesirable semantics. Note that now .XXX is a domain name. Hence, .GOV, .EDU, .COM, .ORG and .MIL were formed. The following year the Internet Assigned Numbers Authority (IANA), which was initially formed under a U.S. Defense Department contract and later operated under a U.S. Department of Commerce contract, established country code top level domains. The first three were .US, .UK and .IL (for Israel). Other country code domains followed. Some countries require that the users of the domain have a local presence, such as .CA (Canada) or .DE (Germany.) Others are open to anyone.

One country whose domain name is open to anyone is the country of Tuvalu. Located midway between Hawaii and Australia, it has a population of just under 11,000, has a land mass of 10 square miles and consists of three reef islands and six atolls. 10% of Tuvalu’s total government revenue comes from royalties generated from the right to sell its country code top level domain name .TV, which, because it is an abbreviation for television, has become popular to denote the on-line video outlets of various brands. Late last month, Amazon announced that it would pay over a billion dollars for a website that streams people playing video games. The website is called TWITCH and the address is TWITCH.TV. Want to watch major league baseball games live on your mobile device; subscribe to MLB.TV. Want to view extreme slip and sliding; there’s REDBULL.TV.

So as online video becomes more popular, subscribers of .TV websites help support the inhabitants of Tuvalu and can feel a little less guilty as climate change threatens to engulf that country whose highest point is 15 feet above sea level.

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MONKEY CAN’T OWN COPYRIGHT IN SELFIE

If a monkey steals your camera and takes a “selfie,” does it own a copyright in the resulting image? According to the U.S. Copyright Office it does not. And your cat doesn’t have ownership of its cat videos either. See http://www.theguardian.com/technology/2014/aug/22/monkey-business-macaque-selfie-cant-be-copyrighted-say-us-and-uk

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ILLINOIS OUTLAWS PATENT TROLLS

Troll under Fremont BridgePatent trolls beware!

The state of Illinois enacted a measure this week making it illegal to demand a royalty payment from a company if the complainant doesn’t hold or represent the patent holder itself, or if the patent that is the subject of the demand has been invalidated in a court proceeding or has expired. Also, now illegal is the use of any written communication, including an email, to falsely accuse someone of infringing a patent with the intent of forcing a settlement.

The state legislator who sponsored the measure stated that it will help companies that “aren’t in a position to hire pricey legal representation and embark on lengthy court battles against harassing fraudsters.” BTW, that state legislator is a mathematician, not a lawyer.

 

 

 

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E-MAIL & THE ATTORNEY/CLIENT PRIVILEGE

I have previously written on the dangers of using e-mail, which is, probably other than texting, the most convenient form of communications available today, providing a largely free means to send someone correspondence, images, legal documents, etc., instantly, anywhere in the world.I wrote that the FISA court could allow the government’s acquisition of all telephone and e-mail communications to and from a country of foreign policy interest, e.g., Russia or Venezuela, including communications made to and from U.S. citizens and residents without a showing of probable cause.

I wrote that Employers are entitled to monitor employees’ e-mail when they are using their company’s e-mail systems. While employers should warn employees of this fact in writing, logging on to one’s own Yahoo or Gmail account will not cloak you from your employer’s prying eye. Since you are using your employer’s computer network to do so, he or she is still entitled to monitor the system.

Well, now comes a new threat to the use of e-mail as a communications means. In prosecuting an extortion case against one Thomas DiFiore, “a reputed boss” in a New York crime family, prosecutors informed Mr. DiFiore that they would be reading the emails sent to his lawyers from jail and using their content as evidence against him. This practice, according to the July 22nd New York Times, is not limited to New York City but has been adopted by federal prosecutors across the country. In Texas, according to the Times, this practice has extended to recording attorney-client calls from jails. Prosecutors in Brooklyn, New York once filtered lawyer e-mails out from inspection but “budget cuts no longer allow for that.”

So, say you have been incarcerated, let’s assume wrongly, and would like to prepare a case to get yourself exonerated. How do you communicate with your attorney to build that case? You can have your attorney drop by the jail and visit you, but apparently a visit to a surgeon accused of Medicare fraud, (not to minimize it but not exactly a violent crime, except to taxpayer’s pockets) from Manhattan to Brooklyn by the surgeon’s lawyers took five hours, including travel time and waiting for jail personnel to retrieve the surgeon/defendant. A look at minimum security institutions on the Federal Bureau of Prisons website reveals that the closest minimum security prison camp to Chicago is in Duluth, Minnesota, an 8 hour drive or a $269.00 plane trip according to Google Maps. According to the surgeon’s lawyer, confidential postal mail takes up to two weeks to reach a Defendant; and Brooklyn is a lot closer to Manhattan than Duluth is to Chicago. Oh, and the surgeon’s lawyer is a public defender being paid $125.00/hour.

A U.S. District Court Judge in Atlanta ruled in 2012 that an inmate, in prison for conspiring to import fake prescription drugs, had no reasonable expectation of privacy in using email. In a decision involving the reputed crime boss, the New York judge overseeing the case ruled that the government was allowed to review the e-mails writing that, “The government’s policy does not unreasonably interfere with his ability to consult [his] counsel.”

So that call from jail is going to cost more than the proverbial “dime” and e-mail may not always be the best means to communicate important information. It’s probably not a good idea to post it on Facebook either. See http://nyti.ms/1nSGKwD

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NEW DOMAIN NAMES MAY BRING OPPORTUNITIES AS WELL AS CHALLENGES

On June 16, 2012 under the heading, “New Domain Names Bring New Challenges To Protecting Your Brand” I wrote about the challenges to brand protection likely to arise from the approval by ICANN, the Internet Corporation for Assigned Names and Numbers, of the new generic top level domains. Owners of business and non-profit entities will no longer be limited to such domain names as.net, .com, .org, .edu, .xxx, or .us (if located in the U.S.) or .ca (if located in Canada) or .co.uk (if located in the United Kingdom.)

Well that was two years ago and over 160 new extensions are available now.

The list includes but is not limited to:

.ACADEMY

.AGENCY

.BOUTIQUE

.BUILDERS

.BUZZ

.CAREERS

.CATERING

.CLOTHING

.CLUB

.COFFEE

.COMMUNITY

.COMPANY

.COMPUTER

.CONDOS

.CONSTRUCTION

.CONTRACTORS

.COOL

.DATING

.EDUCATION

.ENTERPRISES

.EQUIPMENT

.EVENTS

.EXPERT

.FOUNDATION

.GALLERY

.GRAPHICS

.GURU

.INDUSTRIES

.INSTITUTE

.INTERNATIONAL

.LIGHTING

.MANAGEMENT

.MARKETING

.NINJA

.PHOTOGRAPHY

.PRODUCTIONS

.PROPERTIES

.PUB

.REPORT

.SERVICES

.SINGLES

.SOCIAL

.SOLUTIONS

.SUPPORT

.SYSTEMS

.TECHNOLOGY

.VACATIONS

.VENTURES

.ZONE

So if you’re a marketing guru who’s opened a new boutique advertising agency or an app developer who has creating a new dating site for singles that is cool and has created buzz here’s your opportunity to select an innovative domain name that maybe your customers can find. On the other hand, if you’re AIRBNB and you want to direct your customers to your condo rentals, AIRBNB.CONDOS may not be a crazy domain concept. But see http://t.co/x1Jpq1E2YN

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BRINGING YOUR BRAND TO CHINA

I previously reported on the problem Tesla faced when it started to sell its cars in China. See http://www.chinaeconomicreview.com/tesla-starts-offering-cars-china Well, apparently Tesla’s Chinese trademark problems are not unique. See also http://markscounsel.com/update-apple-pays-small-fortune-to-use-ipad-trademark-in-china/

Last month, the New York Times reported that as established brands expand into China, they often find that they are competing with unauthorized copies of themselves. For example, adjacent to Shanghai municipality is the city of Suzhou, with a population of over 4 million. In Suzhou you will find the Haiyatt Suzhou, a deluxe hotel offering suites, conference facilities and Western cuisine. But it is not a Hyatt nor does it have any relationship with the American Hyatt chain. In Shenyang, a city of 6 million located in Northeast China and the headquarters of China’s largest software company as well as a locale for operations of General Motors and Michelin, there is a deluxe Marvelot hotel. It may be a marvelous place to stay but it is not a Marriott. In Shanghai you can find a Peninsula hotel, part of the luxury Peninsula hotel chain. 10 minutes away is the Hengsheng Peninsula International Hotel, which is not part of that chain.

In the case of the Marvelot, it was a Marriott hotel and, when its franchise ended in 2006, Marriott pursued legal action against its former franchisee to protect its name. The hotel was prohibited from using the Chinese form of Marriott as a stand-alone word. In the case of Haiyatt, the hotel names look and sound different when they are spelled in Chinese characters.

The New York Times article quoted a Harvard Law School professor who is director of its East Asian Legal Studies Program as stating that throughout Chinese history, skillful reproduction has been highly regarded.

Therefore, in seeking to protect your trademark in China, you should protect the English version of your mark, the Chinese translation of your mark as well as any Chinese language derivations of your mark. For example, in the case of VIAGRA, you would register VIAGRA, a Chinese character name for VIAGRA and, since VIAGRA  is commonly known as “Wei Ge” (meaning, “great brother”), in China, you would also register that name as well.

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E-MAILS AND LITIGATION

The e-mail read, “I don’t want to cook the books anymore” and when the author of that e-mail heard that an Ernst & Young employee who was auditing those books was leaving the company wrote in another e-mail “Can you find us another clueless auditor for next year?” The response, “That’s the plan. Worked perfect this year.”

As reported in the March 7th issue of The Wall Street Journal these e-mails are the subject of a 106 count grand jury indictment issued on March 6th of this year against the now-closed New York law firm of Dewey & LeBoeuf LLP and the author of the first two e-mails was that firm’s former CFO Joel Sanders. Mr. Sanders, the firm’s Chairman and its Executive Director were charged with a number of crimes including grand larceny, securities fraud, conspiracy, and falsifying business records. Turns out the firm was 50 million dollars short of meeting the requirements of its bank loan and now the three former officials of that firm could face up to 25 years in prison.

The obvious joke here is that these lawyers better now find some good lawyers.

But there are some other lessons here other than not committing the crimes that the individuals involved are alleged of doing. Almost four years ago I warned on this site about misusing your employer’s e-mail system for personal purposes, a year ago I noted that the Supreme Court upheld the National Security Agency’s right to conduct electronic surveillance for foreign intelligence purposes, including surveillance of communications between persons located within the U.S. and persons located outside the U.S, which in the case of Clapper v. Amnesty International involved the foreign communications of journalists and attorneys, and on July 4th of last year I discussed government snooping in general.

But the Dewey & LeBoeuf case identifies a more elemental principle. E-mails are discoverable. Also discoverable is such other digital evidence as text messages, even deleted text messages, as well as videos and photos retrievable from your mobile device. Just as I wouldn’t post on the Internet that you were leaving town on certain dates on a vacation as doing so might invite a burglary or engage in adulterous activity on your cell phone and then hand the phone to your spouse while you were driving so that you would not be talking on it while behind the wheel. (The latter is a good thing, the former not so good.) I wouldn’t e-mail your marketing department and say; “Hey, I like that logo, it really pops….let’s use something similar for our brand.”

Note the following:

Rule 26 (a)(1)(B) of the Federal Rules of Civil Procedure provides that a party must, without awaiting a discovery request, provide to the other parties, among other things a copy—or a description by category and location—of all documents, electronically stored information, and tangible things that the disclosing party has in its possession, custody, or control and may use to support its claims or defenses, unless the use would be solely for impeachment. Rule 34 of the Federal Rules of Civil Procedure states that a party may serve on any other party a request to produce and permit the requesting party or its representative to inspect, copy, test, or sample the following items in the responding party’s possession, custody, or control: (A) any designated documents or electronically stored information—including writings, drawings, graphs, charts, photographs, sound recordings, images, and other data or data compilations—stored in any medium from which information can be obtained either directly or, if necessary, after translation by the responding party into a reasonably usable form. Electronically stored information discoverable here would include e-mail records, videotapes, sound recordings, etc.

Note that the materials sought must be relevant and non-privileged.

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COPYRIGHT INFRINGEMENT CANADIAN STYLE

Movie piracy is treated a little differently in the land of Olympic hockey gold. See www.cbc.ca/news/technology/teksavvy-ordered-to-hand-over-names-of-movie-downloaders-1.2546477

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INCORPORATING AS A SOCIALLY RESPONSIBLE ENTITY IN ILLINOIS

On January 1st of this year, the state of Illinois passed the “Benefit Corporation Act.” The benefits of becoming a Benefit Corporation are that it identifies your business as a socially responsible entity. However, to become one, in Illinois, certain requirements have to be met, some of which are summarized below.

The Illinois Business Corporation Act, which is applicable to Illinois for-profit corporations incorporated in that state, is still applicable to “Benefit Corporations” and such entities are subject to the duties, restrictions and liabilities of corporations incorporated under that Act and enjoy the powers and privileges afforded by that Act except to the extent that the “Benefit Corporation Act” takes precedence. A “Benefit Corporation” is an Illinois corporation that contains a statement to that effect in its articles of incorporation. A “Benefit Corporation” may terminate its status as such and cease to be subject to the “Benefit Corporation Act” by amending its articles of incorporation to remove the statement that the corporation is a “Benefit Corporation.”

A “Benefit Corporation” shall have a purpose of creating general public benefit. In addition, it may identify one or more specific public benefits in its Articles of Incorporation. A “General Public Benefit” is defined in the statute as “material positive impact on society and the environment, taken as a whole, assessed against a third-party standard, from the business and operations of a “Benefit Corporation.” A “Specific Public Benefit” means (1) providing low-income or underserved individuals or communities with beneficial products or services; (2) promoting economic opportunity for individuals or communities beyond the creation of jobs in the ordinary course of business; (3) preserving the environment; (4) improving human health; (5) promoting the arts, sciences or advancement of knowledge; (6) increasing the flow of capital to entities with a public benefit purpose; or (7) the accomplishment of any other particular benefit for society or the environment.

In discharging the duties of their positions, the Board of Directors, committees of the Board and the individual directors of a “Benefit Corporation”, in considering the best interests of that entity, shall consider the effects of any action taken by that entity on its shareholders, employees and work force as well as the employees and work force of its suppliers, the interests of its customers, community and societal considerations, including those of each community in which it has facilities or where its suppliers are located, the local and global environment, the short-term and long-term interests of the corporation and the ability of that corporation to accomplish its general public benefit purpose and any specific public benefit purpose.

In addition, its Board shall include a director who is designated as the benefit director, who in addition to the duties and rights that he or she would ordinarily have as a corporate director, shall prepare in the annual benefit report to the shareholders an opinion on whether the “Benefit Corporation” acted in accordance with its public benefit purposes over the previous year and whether the directors and officers acted in accordance with their duties set forth in the Act, including those set forth in the previous paragraph. In addition, each officer of the corporation shall consider the factors set forth in the previous paragraph if he has discretion to act with respect to that matter and it reasonably appears that the matter may have a material effect on either the general public interest or one of the specific public interests set forth above. Also, an officer may be designated as the benefit officer who shall have powers and duties relating to the purpose of the “Benefit Corporation” to create general public benefit or any of the specific public benefit purposes set forth in the above paragraph. He or she may also have the duty to prepare the annual benefit report. That report shall, among other things, set forth the ways in which the “Benefit Corporation” pursued general public benefit during the past year and the extent to which the general public benefit was created, the ways in which the “Benefit Corporation” pursued any specific public benefits set forth in its Articles of Incorporation which are part of its purpose to create, include an assessment of the overall social and environmental performance of the “Benefit Corporation” against a third-party standard, include the name of the benefit director and the benefit officer, if any, and an address to which correspondence to each of them may be directed, and it shall be sent annually to each shareholder and be posted on the public portion of its website, except that compensation,, financial and proprietary information may be omitted from that posting.

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THE NEED FOR AN “ELEVATOR SPEECH” FOR YOUR BRAND

In my blogs about branding I have previously written about “Using Color to Brand Effectively” (March 2, 2012) and “Selecting A Trademark and Creating A Brand Identity” (April 15, 2010). In that latter post I discussed the differences between descriptive trademarks, e.g., “HOTELS.COM,” which marks immediately convey to potential customers the nature of the product or service offered under that mark and which will go to work right away and sell your product (In the case of “HOTELS.COM” it does not take a great deal of creative thinking to identify the subject of that website, which is a place where you can book hotel rooms.) and arbitrary or fanciful marks, e.g., Apple, Google and Amazon which have no immediate significance to consumers (The owner of an arbitrary or fanciful mark needs to supplement it with advertising so that customers know what it refers to, e.g., in the case of Amazon, that it does not refer to a river but, instead, refers to an on-line retailer.) As I wrote previously, the problems with selecting a descriptive mark include, should you seek to register it, the high likelihood that the United States Patent and Trademark Office may refuse to do so on the ground that it is merely descriptive and require evidence of widespread consumer recognition of that mark as a brand name before reversing that refusal, and because descriptive trademarks are considered to be weak, a competitor could adopt a closely similar mark, and once this occurs, divert traffic from your website and business from your enterprise. For example, in the case of HOTELS.COM, just by thinking of related terms to “hotels” I found a site called TRAVEL.COM that offers some of the same functions as the former site.

So, in “Selecting A Trademark and Creating A Brand Identity” I recommended that you select an arbitrary or fanciful mark, build a strong brand recognition for the product or service that you offer in connection with that mark and create a mark that will not only become easily remembered but one in which your rights will be more readily enforced and given greater protection by a court not only against competitors using the same mark on the same products but against competitors using the same mark on related, and depending on the fame of your mark, possibly unrelated products.

This brings me to the point of this blog entry, that in creating a brand identity, you want to have an elevator speech that evokes that identity that you can quickly bring to customers’ minds. An elevator speech is a short summary used to quickly and simply define a person, profession, product, service, organization or event and its value proposition. In other words, you should not only have a trademark, a service mark or a logo to identify your product or service but you should also be able to give that product or service a short descriptive identity that can quickly convey to consumers why they should buy that product or service. That identity can be created by the product or service itself or by the advertising for that product or service but, like an elevator speech, it should be accurate and easy to remember and may be incorporated as part of a secondary trademark. Here are some examples and associations that come to mind:

APPLE-Innovative, easy to use, attractively designed

BMW-The Ultimate Driving Machine (The BMW 3 series has been on Car and Driver’s 10 Best List 20 times.)

VERIZON-(Cellular Phones) – Reliable Network

MERCEDES-BENZ-Luxury Automobiles

GOOGLE-Accurate, complete Internet search results and maps

TOYOTA-Reliable cars

When those associations become muddled or can’t easily be made anymore; when the consumer no longer can quickly call up the brand and mentally obtain a clear, positive message about what that brand, that trademark, represents, the brand, and in many cases, the business associated with the brand is in trouble.

Here are some examples of the latter;

SONY, which formerly was associated with such innovative products as the Walkman and the Trinitron television. What commercial impression does that brand evoke now?

MICROSOFT-If one thinks of it as identifying easy to use multi-function software, then the brand still has value. If one relates it to such failed products as the Zune or the “blue screen of death,” then that brand is in trouble.

NATIONAL SECURITY AGENCY-Its website describes its mission as, protecting national security interests by adhering to the highest standards of behavior. It was perceived as a super-secret agency that had the ability to see where our enemies had their missile placed or could listen in on terrorists’ plans. Now it’s perceived as listening in on our telephone calls and those made by foreign leaders for reasons unknown and invading our privacy.

BLACKBERRY-Once known as the wireless communications device favored by the President and leaders of business and finance and depicted in the movies as such; it may no longer exist by 2014, it’s phones perceived as being obsolete and unfashionable. Yet its Blackberry Messenger service has been downloaded 10 million times on Android devices and on the iPhone in the 24 hours since it was made available to users of those devices. Unlike Twitter, where messages are usually public, and Facebook – whose privacy settings are not used properly by many users and which for technical reasons is easier for authorities to access at a later date – Blackberry Messages are private to recipients and encrypted during transmission. See http://www.theguardian.com/uk/2011/dec/07/bbm-rioters-communication-method-choice and for that reason this service was used by both British rioters and Arab spring activists.

So the lesson here is not only do you need to create a positive identity for your brand, but you need to monitor it, maintain it, and reinforce it in people’s minds. When Toyota’s cars are viewed as unreliable or Apple fails to keep coming out with innovative products, those brands will be in trouble too. If BlackBerry can change its brand identity from that of a maker of cellphones to that of a provider of reliable highly secure communications (See “National Security Agency” above.) its brand identity and business may survive.

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ASYMMETRIC WARFARE, CYBERWAR & THE BLOWBACK

As we contemplate launching either a cruise missile attack or air attack against the Syrian regime in retaliation for their alleged chemical attack that killed hundreds of people in three Damascus suburbs last week, the Syrian Foreign Minister Walid al-Moallem warned that any U.S. or European military intervention would also be met with force through “all available means.” See http://www.cbc.ca/news/world/story/2013/08/27/syria-war-clouds-gather.html Those means could include asymmetric warfare.

It was almost a dozen years ago today that a bunch of guys with box cutters shut down our financial system and attacked our nation’s military headquarters, the Pentagon, in one version of asymmetric warfare. Well, in another form of asymmetric warfare, retaliation for our likely strike against the Syrian regime may have already begun. At this moment, the New York Times website is down and a group calling itself the Syrian Electronic Army, an online group that supports Syrian president Bashar al-Assad, has claimed responsibility for that attack on Twitter. See http://www.nbcnews.com/technology/new-york-times-hacked-syrian-electronic-army-suspected-8C11016739 In fact at this moment a “whois” search of the Times’ website identifies the Admin Name as
“Admin Name……….. SEA SEA” and the Admin Address as Admin Address…….. SYRIAN ARAB REPUBLIC

So when our weapons fall in Syria, the blowback may come to every one of us who uses the Internet or whose business uses the Internet. We are no longer protected from the unforeseen consequences of our foreign adventures by the oceans that separate our continent from the rest of the world.

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EARLY ADVENTURES IN NATIONAL SECURITY SURVEILLANCE

In last year’s Steven Spielberg film, Lincoln, there are a number of scenes where President Lincoln visits the White House telegraph office; e.g., one in which he, Secretary of War Stanton and the Secretary of the Navy receive reports of the Union’s assault on Fort Fisher and await reports on their assault on Wilmington, North Carolina and another where he is drafting instructions to General Grant.

Apparently, more was going on in that telegraph office than what was portrayed in that film. In a piece published last month in the New York Times at http://www.nytimes.com/2013/07/06/opinion/lincolns-surveillance-state.html it states that in 1862 Stanton wrote Lincoln requesting total control of the nation’s telegraph lines. Lincoln replied by granting Stanton broad discretion in that connection. [By October of 1861 there was instantaneous telegraph communications between California and Washington, D.C.] All of the nation’s telegraph lines were then rerouted through his office, where Stanton could collect news from generals, telegraph operators and reporters. Stanton was to arrest dozens of journalists on “questionable” charges and, therefore, was able to influence what newspapers did or didn’t publish. It wasn’t long before Congress took notice and in 1862 House Judiciary Committee called for restraint on the part of the administration. According to the Times piece, “as the war ended….information began to flow freely again.”

Except that the New York Times reported today that “the N.S.A. is temporarily copying and then sifting through the contents of what is apparently most e-mails and other text-based communications that cross the border.” See http://www.nytimes.com/2013/08/08/us/broader-sifting-of-data-abroad-is-seen-by-nsa.html?hp

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