Mondaq Business Briefing articles from January 2006

Mondaq Business Briefing archives from January 2006

Information And Consultation Regulations - First Reported Decision.(employment law)
January 2, 2006... Last year we advised you in a series of factsheets of the meaning and potential impact of the Information and Consultation Regulations (the Regulations). Recently, the Central Arbitration Committee (CAC) has delivered its first reported...

Employment rights awards limit increases.(Brief Article)
January 3, 2006... The Government has put an order before Parliament to increase rates in cases and rights within the Employment Tribunals jurisdiction. The key changes, due to come to effect on 1st February 2006,are: the limit on the amount of a weeks...

Legislation on Prospectus Liability Proposed to be Amended.
January 3, 2006... The Ministry of Finance recently issued the Report of the Prospectus Liability Working Group (the "Report") concluding that the current Finnish laws regulating prospectus liability are insufficient mainly because of lack of clarity and that...

General Daily Minimum Wages 2006.(in Mexico)
January 3, 2006... The National Commission for Minimum Wages announced the increases of 4% in the general minimum daily wages for the three geographic areas of the Mexican Republic. As you may know, Mexico is divided in three geographic areas as per the...

A Real Estate Investment Trust for the UK - some questions and answers.
January 3, 2006... Please find attached some Q & As that we have produced following the recent publication of the draft legislation on the introduction of the REIT from 1 January 2007 and the seminar that the Revenue ran on the proposals. The deadline for...

Avoiding the Worst of Delay Claims on Wind Projects.
January 3, 2006... This article appears in the December 2005 edition of North American Windpower (www.zackin.com/naw) and is reposted here with their permission. In this article, an experienced construction attorney provides his insights on the type of claim...

Developments in Hydrogen Production, Technology and Use Under the Energy Policy Act of 2005.
January 3, 2006... Introduction Recent articles in the New York Times1 and elsewhere underscore the fact that the rising price of gasoline and heating fuels and the awareness of, and growing consensus about, the threats of global warming have reached a...

Stockholders Have no Right to Bring Action for Lost Merger Premium.
January 3, 2006... In Consolidated Edison, Inc. v. Northeast Utilities, the U.S. Court of Appeals for the Second Circuit recently held that stockholders of Northeast Utilities (NU), the target company in a failed merger, have no right as third-party beneficiaries...

Federal Streamlined Sales Tax Legislation Introduced in Senate.
January 3, 2006... Originally published December 22, 2005 Senators Michael Enzi (R-WY) and Byron Dorgan (D-ND) introduced alternative versions of federal streamlined sales tax legislation (S. 2152 and S. 2153, respectively) on December 20, 2005. Both bills...

Hybrid Claims Found Invalid.(IPXL Holdings, L.L.C. v. Amazon.com, Inc)
January 3, 2006... Addressing for the first time the validity of a single claim covering both an apparatus and a method of using that apparatus, the U.S. Court of Appeals for the Federal Circuit followed Ex parte Lyell, a Board of Patent Appeals and Interferences...

Section 409A and Private Company Stock Options.
January 3, 2006... Originally published December 28, 2005 On December 23, 2005, the IRS issued Notice 2006-4 which provides interim guidance with respect to the application of the new rules for non-qualified deferred compensation under Section 409A to stock...

Tis Not the Season to be Jolly - Loss of Taxpayer Confidentiality May Cause Chilling Effect.
January 3, 2006... Will there be a lump of coal in corporate stockings? A recent federal report held that states have inadequate safeguards in place to protect confidential taxpayer information from unauthorized use and disclosure. 1 Alarming! But what is perhaps...

The Streamlined Sales and Use Tax Agreement - Developments Since October 1, 2005.
January 3, 2006... Since the Streamlined Sales and Use Tax Agreement ("SSUTA") and the Governing Board came into effect on October 1, 2005, over 200 businesses have registered under the Central Registration System ("CRS") to collect sales and use taxes for...

Invest in Antigua? - Expropriation and Investment Risk, January 2006.
January 3, 2006... It is significant that during his recent visit to Antigua, Mr. Augustin Carstens, Deputy Director, International Monetary Fund stressed, "Clearing longstanding arrears would go a long way toward normalising - and facilitating access to -...

IRS Rules That Income from Commodity Index Derivative Contracts Is Not Qualifying Income for Funds under Subchapter M.
January 3, 2006... Developments of Note 1. IRS Rules That Income from Commodity Index Derivative Contracts Is Not Qualifying Income for Funds under Subchapter M 2. Federal Banking Agencies Issue Proposed Guidance on Nontraditional Mortgage Products ...

Risky Business.(personal risk to directors and officers of public companies)
January 4, 2006... Published in Lexpert, October 2005. This article examines the increased personal risks faced by directors and officers of public companies. Our next article discusses how to manage these risks. The recent corporate scandals, and subsequent...

FRB - Philadelphia Publishes Study on Basel II Competitive Impact on US Credit Card Lending.
January 4, 2006... Developments of Note 1. FRB - Philadelphia Publishes Study on Basel II Competitive Impact on US Credit Card Lending 2. SEC Staff Provides Guidance on Broker-Dealer Financial Planning Activities under Recently Adopted Rule Relating to...

FERC Adopts Final Rules Under New Public Utility Holding Company Act.(Federal Energy Regulatory Commission)
January 4, 2006... On December 8, the Federal Energy Regulatory Commission (FERC) met its deadline in the Energy Policy Act of 2005 by adopting final rules implementing the repeal of the Public Utility Holding Company Act of 1935 (PUHCA 1935) and enactment of the...

Key Issues in HR Outsourcing.
January 4, 2006... Outsourcing of HR services is a growing segment of business process outsourcing, powered by companies seeking more efficient, cost-effective and harmonized processes to support the administration of human resources. And there are rewards for...

Parliament Passes Amendments to Insolvency Legislation.(Bankruptcy and Insolvency Act)
January 4, 2006... Bill C-55 Awaits Proclamation and Possible Changes On November 25, federal legislation was passed that, when proclaimed into force, will make significant amendments to the Bankruptcy and Insolvency Act (BIA) and the Companies' Creditors...

Supreme Court Holds That Time Spent Traveling To and From Work Areas to "Don and Doff" Protective Gear Is Compensable.
January 4, 2006... By Mary Ann B.Oakley (Atlanta) Originally published December 2005 In the first decisions issued by the Supreme Court under Chief Justice Roberts, the Court ruled that, under the Fair Labor Standards Act (FLSA), employees must be paid...

OFCCP Issues New Regulation Regarding Definition of Internet Job Applicants for Federal Contractors.(Office of Federal Contract Compliance Programs)
January 4, 2006... By David John Santeusanio (Boston), Todd D. Steenson (Chicago) and Paul Martin Thomas (Washington, D.C.) Originally published December 2005 The United States Department of Labor's Office of Federal Contract Compliance Programs (OFCCP)...

Second Nassau Conference Slated for February 2006.
January 4, 2006... The second Nassau Conference will take place February 7 and 8, 2006 at the British Colonial Hilton in Nassau. The two-day event, which attracted nearly 150 delegates in its inaugural year, will cover a broad range of topics under the theme...

Severance Pay Arrangements May Be Affected by New Deferred Compensation Rules.
January 4, 2006... By David O'Leary (Chicago) Originally published December 2005 On October 22, 2004, the American Jobs Creation Act of 2004 was signed into law. This legislation added Section 409A to the Internal Revenue Code, fundamentally changing the...

Green Light, Red Light or Blue Light? New Mexico Supreme Court Sends Mixed Signals with Kmart Decision.
January 4, 2006... Originally published December 30, 2005 On the eve of the New Year, the New Mexico Supreme Court handed down its long-awaited decision in the Kmart case involving the state's power to subject an out-of-state intangible holding company to...

"Inherent Conception" Not Sufficient to Defeat Novelty.
January 4, 2006... The U.S. Court of Appeals for the Federal Circuit vacated a judgment of invalidity under s. 102(g) based on the district court's misapprehension of the law governing conception, but it affirmed partial summary judgments that claims-in-suit were...

HHS Issues Final Part D Electronic Prescribing Rule and Related Proposed Rules.
January 4, 2006... Summary Action: On November 7, 2005, the Centers for Medicare & Medicaid Services ("CMS") issued a final rule for electronic prescribing of drugs covered under the new Medicare prescription drug benefit. Impact: The rule establishes...

The 2006 IFLR Guide to Private Equity & Venture Capital.
January 4, 2006... By Paulus Hiden and Janne Juusela Finland - A Hub For Fenno-Baltic Funds? Introduction Although some may regard Finland as being slightly remote from continental Europe, it has had an active private equity industry for a long...

Registration Of Yachts In Malta With VAT At 5.4%.
January 4, 2006... The Maltese VAT Department has just published a guideline about the taxation of yachts which are lease-purchased to third parties by a Maltese International Trading Company (herein called an ITC). For the purposes of these guidelines, a...

Material Adverse Effect Conditions: Treat Them as Boilerplate at Your Peril.(merger or acquisition agreements )
January 4, 2006... Most merger or acquisition agreements use the concept of a "material adverse effect" (MAE) or "material adverse change". Typically, the agreement will have a purchaser's condition that no MAE shall have occurred in the acquired business before...

M&A Trends of 2005-Our Top 10 List.
January 4, 2006... Mergers and acquisitions are back! If 2005's strong resurgence of M&A activity in Canada continues, 2006 M&A activity is likely to be brisk. This is our top 10 list of the trends that emerged last year. 1. Hostile Bids In the last...

Increase In Estate Tax Exemption Highlights Changes For 2006.
January 5, 2006... Effective January 1, 2006, each taxpayer's federal estate tax (and generation skipping tax) exemption (sometimes referred to as the "unified credit") will increase from the current $1.5 million to $2 million. This is a result of the 2001 Tax...

Commission Publishes Green Paper on Damage Actions for Breach of the EC Competition Rules.
January 5, 2006... On December 19, 2005 Commissioner Kroes published a Green Paper summarizing possible ways of facilitating damage actions in national courts for breach of the EU competition rules ("the Damages Green Paper").1 Contrary to the expressed desire of...

Irreparable Harm Presumed on Strong Showing of Likely Infringement.
January 5, 2006... The U.S. Court of Appeals for the Federal Circuit upheld a preliminary injunction finding that infringement is likely and that the harm and public interest favors enjoining a generic drug maker. Pfizer, Inc. v. Teva Pharmaceuticals, Case No....

"A" Means "One-and-Only-One".(calcium phosphate composition)
January 5, 2006... Applying well-settled principles of claim construction, the U.S. Court of Appeals for the Federal Circuit has held that the use of the term "a" in connection with the restrictive clause "consisting of" describes a singular claim element....

Reporting Requirements Under the Labor-Management Reporting and Disclosure Act of 1959: Reports of Gifts to Union Officials.
January 5, 2006... The Labor-Management Reporting and Disclosure Act of 1959 ("LMRDA") establishes reporting requirements for employers, union officers, and employees of labor organizations.1 The LMRDA requires employers to file LM-10 forms with the Department of...

Qualified Retirement Plans: November 2005 Developments.
January 5, 2006... Additional time is provided by IRS for certain qualified plan amendments. IRS Notice 2005-95 (IRB 2005-51, 12/02/205) cleared up uncertainties concerning the timing of some required qualified plan amendments and added extensions in two...

Tax Relief for Telecommunications Service Subscribers.
January 5, 2006... By Raymond P. Carpenter (Atlanta) and Eric Fishman (Washington, D.C.) Originally published January 4, 2006 For over a century, telephone service subscribers have been subject to a federal excise tax (FET) on communications services....

Charitable Contributions: Deductibility and Other Federal Income Tax Issues.
January 5, 2006... Originally published November 2005 Organizations asking for your financial support often mention that contributions "may be tax deductible." The deductibility of charitable contributions for federal income tax purposes is subject to a...

Update: EPA's New All Appropriate Inquiry Rule Makes Important Changes in Due Diligence on Contaminated Properties for Prospective Purchasers.
January 5, 2006... Originally published Winter 2005 This update aims to inform prospective purchasers of properties challenged by real or threatened environmental contamination of new opportunities and obligations with regard to pre-purchase due diligence...

Dell Wins the Legal Battle in India.(patent infringement case with Arun Kumar )
January 6, 2006... Preface DELL is a global brand name in the area of Computer hardware, software and IT consulting services. Dell got embroiled in a passing off action against an Indian company using the 'Dell' as its corporate name. After a long legal...

University Licensing.
January 6, 2006... Introduction What do Yamaha synthesizers, gene splicing and DSL have in common? They are all based on technology licensed from universities. As these examples show, universities often develop and license new cutting edge technologies. In...

U.S. Patent & Trademark Office Pending-Patent-Application Backlog at Historic Proportions.
January 6, 2006... In the Performance and Accountability Report for Fiscal Year 2005, the U.S. Patent and Trademark Office (USPTO) reported 406,302 patent applications were filed in fiscal 2005, while only 165,485 patents were granted. Even when considering the...

Showing of Intent to Appropriate Goodwill Required to Recover Profits or Attorneys' Fees.(Western Diversified Services Inc. and Hyundai Motor America Inc. patent infringement case)
January 6, 2006... The U.S. Court of Appeals for the Tenth Circuit held that the willfulness required to support an award of profits or attorneys' fees includes showing the defendant intended to benefit from the goodwill of the trademark owner. Western...

Fixed-term Employees Entitled to Enhanced Redundancy Rights.
January 6, 2006... Contractual redundancy schemes often differentiate between permanent and fixed-term employees, in many cases excluding fixed-term employees from enhanced benefits. However, a recent employment tribunal decision suggests that this practice might...

European Commission Reviews Rules on Dominance.
January 6, 2006... As part of its programme to modernise competition law, the European Commission has now turned its attentions to Article 82 of the EC Treaty. Article 82 (and its equivalent Chapter II of the Competition Act in the UK) prohibits companies that...

Is It a Material Adverse Effect?(Metropolitan Corporate Counsel)(Reprint)
January 6, 2006... Published in The Metropolitan Corporate Counsel, January 2006. You are general counsel to a large healthcare products company that has agreed to acquire a medical devices company in a public merger for $25 billion in cash and stock. The...

Environment calendar - January 2006.
January 9, 2006... The environment calendar highlights key dates for proposed and existing legislation and policy and closing dates for consultation papers relating to major environment issues in the EU and England. It will provide a useful tool for...

The New Planning Gain Supplement: Development Tax and Infrastructure.(land value taxation)
January 9, 2006... The Government has now published a consultative document on the introduction of a Planning Gain Supplement (PGS) as proposed by the Barker Report last year. The intention is to tax the increase in land value resulting from detailed planning...

US Jobs Creation Act.
January 9, 2006... Originally published December 2005 The US Jobs Creation Act of 2004 enacted section 409A of the US Internal Revenue Code of 1986, imposing penal income tax charges on 'non-qualified deferred compensation' (see below) which is not...

2005: A Year of Changes in M&A.
January 9, 2006... Published in American Lawyer: Guide to Global M&A, January 2006. The past year has been an active year in the Finnish M&A market, which has seen, among others, several transactions in regard to Finnish listed companies (Pohjola, Saunalahti,...

Subsequent Assignment Does Not Negate "Work-for-Hire" Status.(Twentieth Century Fox Film Corp. and Entertainment Distributing's patent infringement case)
January 9, 2006... The U.S. Court of Appeals for the Ninth Circuit has affirmed a finding that Dwight Eisenhower's 1948 account of World War II, Crusade in Europe, was a "work-for-hire" even though Eisenhower signed a contract transferring title in the work after...

More Than Mere Access and Similarity Necessary to Establish Use of Trade Secrets.(Dr. Stratienko filed patent infringement case against Cordis Corp.)
January 9, 2006... In an eagerly anticipated trade secret case, the U.S. Court of Appeals for the Sixth Circuit affirmed the district court's grant of summary judgment to the defendant and agreed the plaintiff, a doctor, "failed to proffer sufficient evidence of...

Certifiers' High Wire Balancing Act.(Lord Reid's breach of contract case)
January 9, 2006... It was an architect who was at the centre of the House of Lords case that, over 30 years ago, laid down the fine line that must be walked by anyone who certifies building work. In the words of one of the judges, Lord Reid, the certifier...

Filing of Patents Set to Get Cheaper and Easier.
January 9, 2006... Finally, the Government of India has amended the Rules, rolling back the official fee hike for patents. The amendments in the Rules have been published, but will come into force only when notified in the official gazette. The fee for...

Environmental Update (January 2006).
January 9, 2006... Originally published January 2006 New Source Review The US Environmental Protection Agency took another significant step toward a complete overhaul of the federal "new source review" air permitting program. The agency proposed a...

A Month in Money Laundering - November 2005.(Calendar)
January 9, 2006... Welcome to the November 2005 edition of A Month in Money Laundering This edition includes news on the United Kingdom Financial Services Authority's plan for inspection of anti-money laundering controls in private equity firms (3 November),...

Health and safety calendar - January 2006.(Brief Article)
January 9, 2006... The health and safety calendar highlights key dates for proposed and existing legislation and policy and closing dates for consultation papers relating to major health and safety issues in the UK and EU. It will provide a useful tool for...

DOL Finalizes USERRA Regulations Detailing the Reemployment Rights of Military Service Members.(Department of Labor)
January 10, 2006... On December 19, 2005, the United States Department of Labor (DOL) issued final regulations implementing the Uniformed Services Employment and Reemployment Rights Act of 1994 ("USERRA" or "the Act"). The regulations respond to a number of...

McDermott's 2005 Top 10 Life Science Decisions.
January 10, 2006... The United States' most influential courts have made 2005 a vintage year for decisions affecting the life science and pharmaceutical sectors. As the year draws to a close, the time is ripe to review the most significant decisions and evaluate...

Family Offices Not Exempted from Hedge Fund Registration.
January 10, 2006... The Securities and Exchange Commission ("SEC") on December 8, 2005, issued a no-action letter relevant to all family offices. In the no-action letter, the SEC (among other things) declined to adopt a complete exemption for family offices that...

Communications Law Bulletin - December 2005.
January 10, 2006... The Month in Brief In Washington, the dawning year wears a gray and dispirited aspect. The Federal Communications Commission ("FCC" or "Commission") faces 2006 with two new commissioners, but no relief from its Republican-Democratic split...

Coal To Liquids: The New Black Gold?
January 10, 2006... By Todd Alexander and Jeffrey Harrison, in Houston The prospect that oil prices might remain high for the foreseeable future is forcing both governments and the private sector to explore other sources of transportation fuels besides oil....

"Hooligan Marks" - Badges of Antagonism: No One Loves Them, We Don't Care.
January 10, 2006... On 11 November the Trade Mark Registry refused registration of the following mark: The mark was applied for by a company called Sporting Kicks Ltd to cover among other things clothing, footwear, headgear and badges. The sign featured...

Bill C-37 - A National Do-not-call Registry In Canada?
January 10, 2006... This article was originally published in Blakes Bulletin on Communications Law, December 2005 Article by Sunny Handa & Maria Amore, [c]2005 Blake, Cassels & Graydon LLP Many businesses today rely on telemarketing as an important...

Banking law Frequently Asked Questions on United States.
January 10, 2006... How is a "bank" defined for the purposes of US law? What types of bank or banking institutions have evolved? U.S. law generally defines a "bank" to mean an organization engaged in the business of receiving deposits and making commercial...

First Construction Economic Indicator Of The Month - Construction PMI Fell To Seven-Month Low In December, Reflecting Weaker Growth Of New Orders.
January 10, 2006... Latest data signalled a slowdown in growth of UK construction activity in December. The headline Construction Purchasing Managers' Index[R] (PMI)[R] - a seasonally adjusted index designed to measure the overall health of the construction...

Construction Industry To Benefit From New Drive On Skills.(IBP Training & Employment)
January 10, 2006... The construction industry in Hampshire and the Isle of Wight is set to benefit from a new project to improve skills in the sector. IBP Training & Employment have been awarded a [pounds sterling]450,000 contract, funded through the European...

Ennstone Thistle Chief Executive Moves To Tulloch.
January 10, 2006... Tulloch Ltd have appointed Ciaran Kennedy to a new post of Chief Operating Officer to drive the company forward in its growth plans. Mr Kennedy has been Chief Executive of Ennstone Thistle at their Dundee HQ for the past four years, having been...

Tulloch Reaps [pounds sterling]26 Million Contracts Harvest -- And More To Come.
January 10, 2006... Tulloch Construction Group will spring in to 2006 with a record forward workload of contracts secured totalling [pounds sterling]26 million. "It's a busy and exciting way to enter the New Year", said Tulloch chairman David Sutherland ."We're...

Galliford Try PLC - Trading Update.
January 10, 2006... Galliford Try plc, the construction and housebuilding group, is providing the following update to trading for the half year to 31 December 2005. Key Highlights Construction order book of [pounds sterling]1.1 billion exceeds [pounds...

Yorkshire Fittings Sprints Clear Of The Field.
January 10, 2006... Yorkshire Fittings has launched Tectite Sprint, a range of heat-free push-fit fittings for use in domestic and commercial potable water applications, heating and chilled water systems. The launch marks Yorkshire Fittings' latest and most...

Bethell Power Services Wins [pounds sterling]54 Million Of Work.
January 10, 2006... Bethell Power Services Ltd. has won [pounds sterling]54 million of specialised Electricity work in the last 6 months reasserting the business as one of the leading specialist electricity industry Service Providers. The latest contract award,...

Tees Valley Rok Wins People Award.
January 10, 2006... Tees Valley builder Rok, has been recognised as a top employer for the training and development of its staff. The company's Stockton office, part of the Rok Group, attained the 'Investors in People' (IiP) Standard, that is delivered through...

Plant Hire Company Picks Up New Business Thanks To Funding.
January 10, 2006... Caterham-based United Grab Hire, a company which provides specialist lorries to the construction and plant industry, has secured six figure funding from Bank of Scotland Corporate, enabling it to acquire DA Withers, a business that treats and...

New [pounds sterling]3.3m Primary School For Pupils Of Staffordshire.
January 10, 2006... Moss Construction, part of the Kier Group, has won a [pounds sterling]3.3m contract to provide a new state of the art school for the youngsters of Rugeley, on behalf of Staffordshire County Council. Work on the new Redbrook Hayes Primary...

Entegria Wins Hepworth Building Products Ltd.
January 10, 2006... Entegria, one of the UK's leading employee benefit consultancies, is delighted to announce that it has won a major new contract to provide a comprehensive pensions consultancy service to Hepworth Building Products Ltd, following its acquisition...

Robertson Construction To Build New Preparatory School for Glasgow Academy.
January 10, 2006... Robertson Construction has begun work on a [pounds sterling]6.5 million project to build a brand new preparatory school for The Glasgow Academy. Head Boy, Chris Millar and Head Girl, Shona Ambrose, along with the Rector of The Glasgow Academy,...

Information - How Well Do You Manage Yours?(PlumData)
January 10, 2006... In this article, Leigh Clark, managing director of Leeds based PlumData, talks about some of the common pitfalls awaiting organisations who have to manage ever-increasing amounts of electronic information, and the new technologies which...

Active Road Marking From Astucia Results In Dutch Award For Road Lighting Innovation.
January 10, 2006... The Netherlands Province of Noord-Holland has been awarded the Dutch Association for Lighting Knowledge's (NSVV) National Light-award 2005 for the innovative way it has applied Astucia's active marking road studs on the N200, a 3.5km stretch of...

New Brick CD To Help Boost Use Of Recycled Glass.
January 10, 2006... A multimedia CD will be launched in February, introducing brick makers and buyers to the significant benefits of using recycled glass as a fluxing agent. From Bottles to Bricks gives an overview of the practical and technical benefits of using...

STATS Appoints First Class Chemist.(Brief Article)
January 10, 2006... STATS Limited, an independent consultancy practice, is delighted to announce the arrival of Dr David Crofts to head the analytical team at the company's St Albans facility. David graduated from Imperial College, London with a first-class...

EPIC Journey Towards Environmental Improvement.(Environmental Performance Improvement Club)
January 10, 2006... Envirowise - independent providers of practical environmental advice for business - are working in association with CIRIA to develop an EPIC (Environmental Performance Improvement Club) to improve resource use and minimise waste in the...

Buncefield Investigation: Statement 10/1/06.(Dacorum Borough Council)
January 10, 2006... At a routine meeting at Dacorum Borough Council, the Buncefield Investigation Manager, Taf Powell, was invited to listen to the views of owners of businesses based near the Buncefield oil depot following the incident at the site on 11 December...