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Patent law reform has recently moved to the forefront of the federal legislation calendar as the country calls on Congress to protect inventors and consumers from intellectual property trolls (“IP trolls”). IP trolls may also be known as patent assertion entities. These IP trolls include individuals or entities that do not necessarily generate innovations themselves, but rather buy and hold patents, copyrights, or trademarks. Then, the IP trolls instigate infringement litigation against parties who use the otherwise idle intellectual property. Are you in litigation against an IP troll for alleged infringement? Do you have a non-active patent that may interest IP trolls? At the Law Offices of Salar Atrizadeh, an attorney with experience and knowledge in intellectual property law and infringement litigation can help you understand your legal rights and remedies.

What Are the Negative Effects of Intellectual Property Trolls?

IP trolls target idle intellectual property and file lawsuits, which the majority of consumers find to be frivolous and unjustified (i.e. lacking any merit or good-faith cause to sue). Recently, President Obama signed the America Invents Act (“AIA”) into law in an effort to protect against such frivolous litigation. The AIA is the first attempt by the federal government to curtail intellectual property claims by such IP trolls. For example, the AIA requires that IP trolls file individual actions for infringement, rather than a single action against multiple defendants. This requirement will substantially increase the cost of litigation for IP trolls, and, perhaps hinder them entirely. Indeed, some cases may reach extremely high litigation costs. For example, MPHJ Technology Investments, LLC, a Texas-based patent-licensing company, recently sued consumers for scanning any document to send by email. MPHJ sent consumers letters demanding $1,200 to cover the cost of wrongfully scanning documents, which they claim to be a patented process calling for royalties (i.e., payments to the patent holder for using the patented technology). Otherwise, MPHJ threatened the consumers with litigation. A complaint filed in a Vermont state court aims to protect consumers from such patent troll litigation in the first lawsuit of this kind.

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As part of California’s laws against unfair competition, the state provides a remedy to businesses that are victims of trade libel. Trade libel constitutes published false communications regarding the quality of services of products that a business provides, resulting in financial loss to this business. Are you a victim of false representations regarding your products or services? Have you sustained financial damages as a result of these false representations? If you answered “yes” to either question, you may have a claim for trade libel against these false representations! At the Law Offices of Salar Atrizadeh, an attorney with experience and knowledge in business law and trade libel suits can help guide you through the legal remedies.

What Are the Necessary Elements of a Trade Libel Suit?

To maintain a suit for trade libel, a plaintiff must first prove that another party published a false statement. A published statement is not limited to a printed book. Indeed, “published” can include anything from communications over the internet to advertisements. While the specifics of what constitutes “published” is a controversial area of law, courts will generally find that if a third party has access to a communication, that statement is deemed published. Such a communication can be either written or spoken to satisfy this requirement. Next, the statement must actually be false. If a defendant makes a statement about a business that results in financial damages, the business cannot file a lawsuit if the statement was true. Additionally, the defendant must know that the statement is false. While there are remedies available if a defendant negligently makes statements that cause financial harm to a business, to maintain an action for trade libel, the defendant must knowingly make the false statement. The false statement must also cause financial loss to the business. Such a loss can include a loss of reputation if the business can establish that the reputational decline will lead to a loss of future business, and as such, a future financial loss. Finally, a person making a false statement must intend to communicate the statement as a fact, not merely as an opinion. Therefore, a customer who expresses an opinion that a business provides a service of a poor quality is not subject to a trade libel suit.

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In general, subletting your apartment is a great way to save the cost of rent when you leave for a period of time–for example, to go on vacation or study abroad. However, subletting your apartment without considering the legal implications or local requirements can lead to a legal nightmare. At the Law Offices of Salar Atrizadeh, an attorney with knowledge and expertise in real property litigation and transactions can review applicable real property law with you and ensure that subletting your apartment is in your best interest

What Should I Do Before Subleasing My Apartment?

First, it is important to make sure that the area you live in allows for subletting and short-term leases. In some cities, such as New York City, it is illegal to rent for shorter than 30 days. California allows for subleases, unless a rental agreement specifically prohibits subleasing. To avoid future legal conflicts, make sure to check with your landlord to ensure the lease agreement allows for subleases. Additionally, it helps to consult an attorney who can review the law that applies in your area so you are aware of your rights and responsibilities under a sublease agreement. Even after you sublet your apartment, you are still responsible to your landlord for the property. For instance, if a subtenant causes damage to the property the landlord can initiate a lawsuit against you to collect a judgment for the cost of the damages. Therefore, it is in your best interest to make sure that the subtenant is a reliable tenant. As such, it is a good idea to ask for a security deposit. This way, if a subtenant does damage the property you have the authority to keep the deposit to cover any maintenance or repairs.

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In April 2012, President Obama and the United States Congress signed the JOBS Act into law. The Jumpstart Our Business Startups (“JOBS”) Act goes a long way towards accelerating and promoting crowdfunding. Crowdfunding is the practice of raising capital for a project or business by seeking small amounts of money from several individuals or small groups. Do you operate a small business? Are you looking for new ways to gather revenue for your growth and development? Are you an individual investor looking for your next investment project? If you answered “yes” to any of these questions, then the 2012 JOBS Act allows you to redefine your approach to future investments and business.

How Will the JOBS Act Change How Small Businesses Operate?

Since the JOBS Act passed into law, crowdfunding has increased through platforms such as Kickstarter, Indiegogo, and Fundable. These platforms have helped launch all sorts of small businesses, including startup companies, film projects, music projects, and non-profit organizations. Crowdfunding has essentially redefined traditional notions of how small businesses gather funds to support projects and growth. As such, in order to take advantage of this new opportunity, small businesses must learn to market their operations and projects to the masses. Reaching a wide array of people helps these businesses appeal to the individual investors who participate in crowdfunded business. Successful crowdfunding requires a small business to establish and maintain supporters at all stages of a project or throughout the course of a company.

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As of January 1, 2012, under California Corporations Code §§ 2500-3503, traditional business corporations may organize as “Flexible Purpose Corporations.” Whereas previously, corporate directors were bound to manage corporations strictly for economic gain, this new organizational model grants directors the freedom to manage the corporation for social and environmental benefits. This gives corporations the opportunity to organize and operate as socially-aware entities, while preserving their right to maintain a for-profit operation.

What Are the Advantages of Flexible Purpose Corporations?

To qualify as a flexible purpose corporation, a company must operate so as to have a positive effect on one of the following: the community, society, environment, its employers, customers, creditors, or suppliers. Flexible Purpose Corporations also maintain greater freedom because in certain circumstances the company can waive out of extensive annual reporting requirements. Supporters of flexible purpose corporations explain that serving as a shareholder for such a corporation is increasingly beneficial because such shareholders are able to embrace the rewards of serving a greater societal interest.

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The Internet has become an expansive worldwide network and users have the freedom to access this network from multiple devices and locations. In light of this growing network, many forms of commerce have also moved to the Internet. E-commerce or commercial transactions that take place over the Internet, have become a growing part of international markets and businesses. However, this growing market has also led to the proliferation of online fraud. In addition, by gaining access to this worldwide network, also referred to as the Internet, online fraud is able to harm users and markets on a larger scale.

What Factors Indicate Online Fraud?

In order to begin to prevent online fraud with e-commerce, it is important to be able to recognize online fraud. There are certain indicators that can help online consumers recognize fraudulent activity. First, multiple orders within the same day, hour, or minute from the same user, address, or credit card will generally point to fraudulent activity. Also, shipping addresses to suspicious locations, such as abandoned buildings or P.O. boxes, may be indicators of fraudulent activity. Anonymous email accounts associated with online users placing purchases indicate a higher likelihood of online fraud. These indicators do not necessarily suggest that the online activity is absolutely fraud. Instead, these indicators help protect online consumers by arming them with early signs that can help prevent future harm.

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The U.S. Copyright Act, codified under 17 U.S.C. § 101 et seq., protects copyrighted works from infringement from wrongful users. This federal law aims to protect unique works while still allowing for creativity and future creations. To that end, individuals charged with copyright infringement can avoid liability entirely under a valid fair use defense. The fair use exception, which is codified under 17 U.S.C. § 107, provides that instances of work that fall within this exception do not constitute infringement.

How Do Courts Apply the Fair Use Exception?

Since courts have not adopted a test or set of factors to determine when the fair use defense applies, judges will look to the totality of circumstances on a case-by-case basis to determine whether the defense is appropriate. This exception allows the courts to avoid applying the statute so strictly that it prevents creativity. In Religious Technology Center v. Netcom On-Line Communication Services, Inc., the United States District Court for the Northern District of California found the fair use exception applies when a work is used for “criticism, comment, news reporting, teaching, scholarship or research.” Under the fair use exception, courts must consider the following factors: (1) purpose and character of the use; (2) nature of the work; (3) amount of the work used in comparison to the entire work; and (4) effect of the use on the potential value of the work. However, this is not a total list of considerations and courts will often look to any unique factors that affect the outcome of the case.

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A buyer who has ever committed to a wrong purchase knows the nagging feeling that accompanies the realization that committing to the purchase of a product was entirely unnecessary. Often informally referred to as “Buyer’s Remorse,” this feeling of extreme regret usually accompanies very expensive purchases, such as automobiles or real estate. Recognizing that consumers do not always make the soundest purchases, the California legislature has provided state laws that give consumers the right to cancel certain contracts after a short period of time (i.e., cooling-off period) if those contracts fall under the Buyer’s Remorse exception.

What Types of Contracts Fall Under the Buyer’s Remorse Exception?

Whether or not a contract falls under the Buyer’s Remorse exception is entirely up to the governing law in a jurisdiction. For example, California does not provide a cancellation period for automobile sales and leases. Unless a specific dealership or lease agreement provides otherwise, buyers do not have the option to cancel an automobile sale or lease without first showing legal cause. In looking to determine whether a buyer may cancel a contract after a showing of legal cause, courts will often look for instances of fraud, undue influence, illegality, or a breach of a duty. However, under California Civil Code section 1689.6(a), buyers maintain the right to cancel a contract from door-to-door sales within three days. The intent of this statute is to protect buyers from overly ambitious salespeople and give buyers the opportunity to reflect on their purchases without the overbearing presence of the salesperson.

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As cyberspace becomes a larger part of everyday life, the threat of cybercrimes becomes more prevalent. Consumers conduct all sorts of business over the Internet, which involves storing and transferring personal information on various online sites. Accordingly, the wealth of personal information available over the Internet has drawn in a new type of crime–phishing and spoofing. Cybercriminals disguise as other people, or legitimate business entities, and they entice consumers to give out personal information, such as bank account numbers. These tactics also help cybercriminals steal people’s identities.

What is the Difference Between Phishing and Spoofing?

Phishing is the practice of posing as a legitimate business entity to trick consumers into turning over personal information, such as passwords and bank account numbers. The cybercriminals then use this information to break into accounts and transfer money. They may also use this personal information to apply for credit cards, spend extravagant amounts of money, and ruin people’s credit. This is how cyber criminals perpetuate identify theft through phishing. With the right personal or financial information, cybercriminals disguise as other people, building up exorbitant debt against the victim.

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Copyright protection is commonly known to apply to inventions and artwork to protect original work from copyright infringement. However, copyright protections also extend to websites. Today, the Internet, and especially personal websites extend to all avenues of the marketplace. Individuals have blogs, businesses have websites to advertise and inform about their services, and professionals maintain websites with personal information and updates in their field of work. All of this content is subject to copyright protection and copyright infringement.

Why is it Appropriate to Copyright a Website?

Anytime a website contains unique and original content, it is subject to copyright infringement. Therefore, anytime a website owner is looking to protect the text, sound, or design contained on a website, it is appropriate to copyright the website. Website owners may also have the option to copyright portions of a website, specifically the portions of the website that are original rather than a template. Often several different parties will contribute to a website by working on different aspects. Therefore, to ease the copyright process, it is often helpful to determine authorship and ownership before creating the website. For instance, a developer may own the code for the site, a designer may own the graphical and creative aspects of the site, and the owner of the site may own the content or material. Establishing ownership will make it easier to copyright the different portions of the website.

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