Trade Secrets

From my weekly (AM) radio segment titled "Legal Minute".

For those of you who own a business or are thinking of starting a business, you need to know about some trade secret basics. A trade secret is any valuable business information that is not generally known to the public and is subject to reasonable efforts to preserve confidentiality. That means that if you do not take proper steps to protect the secrecy of your valuable business information then the information will forever lose its trade secret protection. One of the most famous trade secrets is the formula for Coca-Cola. They’ve done a very good job of keeping that recipe secret for decades. The best way of protecting your trade secrets is requiring the person to whom you disclose the secret to sign a non-disclosure agreement – or NDA. The NDA contains a promise by the recipient to keep your trade secret confidential. Call your lawyer for a proper form of NDA. Also keeping your trade secrets under lock and key or accessible by only those who have signed an NDA is a wise practice. A trade secret will be protected under law from exploitation by those who steal your trade secrets or those who breach the NDA.

Immigration Issues in the Neighborhood

From my weekly (AM) radio segment titled "Legal Minute".


So-called immigration reform may soon be coming to a neighborhood near you. The Department of Homeland Security estimates that there were 2.5 million more illegal immigrants living in the US in 2006 than in 2000. As President Bush has urged Congress to compromise on the divergent House and Senate versions of immigration reform bills, city councils seem to be taking matters into their own hands. Lawmakers in the southern California city of Escondido recently approved an ordinance that will prohibit landlords from renting their properties to illegal immigrants. The measure requires landlords to submit documentation to city authorities to prove their tenants' immigration status. If found in violation, landlords could face suspension of their business licenses and fines. Opponents called the new ordinance racist and said immigration enforcement should be handled by the federal government, not local governments. The ordinance takes effect Nov. 18th, but opponents said they plan to challenge the law in court before city officials begin enforcement. Escondido's ordinance follows passage of similar local immigration enforcement laws in Pennsylvania and New Jersey.

Childish Tactics

From my weekly (AM) radio segment titled "Legal Minute".




Childhood games of ‘rock, paper, scissors’ in the schoolyard is something we remember but in the courthouse? A Florida courthouse perhaps. In a recent case where a hotel investment firm sued an insurance company for allegedly not paying a claim fast enough after Hurricane Charley, attorneys for the parties fought at every turn. When it came time to select a location to depose a witness, the attorneys would not agree. As a result, the court was asked to intervene. The presiding U.S. District Judge was not amused. After chastising the attorneys for not being able to agree on even the simplest matter, the Judge issued his ruling stating that “the Court will adopt a new form of alternative dispute resolution calling for the attorneys to meet at a neutral site agreeable to both parties. If the attorneys cannot agree on a neutral site, they shall meet on the front steps of the courthouse. Each attorney is entitled to be accompanied by one paralegal who shall act as a witness. At that time and location, counsel shall engage in one (1) game of 'rock, paper, scissors.' The winner of this engagement shall be entitled to select the location for the deposition.” Perhaps they needed a time out.

R.I.P. Law

From my weekly (AM) radio segment titled "Legal Minute".


Just when you thought there were more than enough laws out there, we have a category of law that consists of funeral rules. Those making funeral arrangements for a loved one are under emotional stress and time constraints due to the short notice required for the planning. As a result, people are vulnerable to making poor business and financial decisions during such a time. So, in order to prevent funeral homes from taking advantage of their customers’ situations, the FTC passed regulations known as the “Funeral Rule”. The Funeral Rule is designed to protect people making funeral arrangements and to inform them of the economic choices they have in planning a ceremony. The Rule requires funeral providers to give their customers an accurate, itemized price list about funeral goods and services. It also prevents funeral providers from misrepresenting legal, crematory, and cemetery requirements; embalming for a fee without permission; requiring the purchase of a casket for direct cremation and so on. If funeral providers violate the Rule, they can be subject to penalties of up to $10,000 per violation.

On the Board

From my weekly (AM) radio segment titled "Legal Minute".


Given recent headlines, it’s helpful to know what are the functions and responsibilities of the boards of directors or board of trustees. Boards of directors occupy twin roles involving support and governance. The primary functions of the Board are to: provide continuity to the organization, select the CEO, govern the organization with broad policies and objectives, acquire resources for operations, and account to the public for activities and expenditures of the organization. Other responsibilities of the Board include acting as the court of appeal for disputes within the organization, enhancing the organization’s public image and assessing the Board’s own performance. The support role of the Board is designed to ensure the organization’s success while the governance role of the board is to protect the shareholders and the public interest. Both of these board roles are distinguished from management of the organization which is a function reserved for the CEO. Directors on the board are each bound to fiduciary duties – similar in nature to those of agents or trustees. In the US, the Sarbanes Oxley Act introduced new standards of accountability for Boards and we may see more of that in the wake of the recent scandals.

Do Lawsuits Suit You?

From my weekly (AM) radio segment titled "Legal Minute".


We’ve all heard it before in movies, the dramatic “you’ll be hearing from my lawyer” before storming out of a room. But in real life, the decision to pursue a legal matter in court is an important one. Before contacting a lawyer, we should consider whether we have a case at all. If so, what are our damages? Is the statute of limitations in effect? What sort of lawyer will we need? Should we file in State or Federal court? Who is the defendant? Every lawsuit begins with a complaint. Then, the other party has an opportunity to respond in an answer. The other side may argue that the case has no merit and should be thrown out of court. If they don’t succeed, we move into discovery where each side tries to discover more facts about the other. At that point, an offer of settlement is often made. If the case doesn’t settle, we move forward to trial before a jury or a judge, known as a bench trial. Lawsuits are time consuming and becoming tangled up in a legal action can have a heavy financial and emotional toll. Lawsuits don’t always fit well.

Protecting Your Privacy - Part II

From my weekly (AM) radio segment titled "Legal Minute".


When E.T. phoned home, it was cute. When telemarketers phone home, it’s downright annoying. To avoid receiving unwanted calls, registering on a National Do Not Call List or a Do Not Call Registry sounds appealing. However, if we receive calls about either of these programs then they are definitely scams as confirmed by the FTC. Recently, the FTC amended the Telemarketing Sales Rule to give consumers more control over the calls they receive at home. Under the amended Rule, the FTC is creating a National Do Not Call Registry and that is the only legitimate registry out there to combat intrusive callers. The FTC has never hired any private companies to engage in calling consumers about the registry. So, we must be wary of the scams. The only safe procedure by which to ensure that we will not receive unwanted calls is to visit the FTC’s National Do Not Call Registry located at www.donotcall.gov. The site is available in English and Spanish and we can register both our home and cell phone numbers.

Protecting Your Privacy - Part I

From my weekly (AM) radio segment titled "Legal Minute".


Technology can be a blessing but it’s a curse when it comes to preserving our personal privacy. Let’s start with spam – one of the most common and intrusive privacy violations. The CAN-SPAM Act of 2003 was a win for consumers. CAN-SPAM stands for the title of the law: Controlling the Assault of Non-Solicited Pornography and Marketing Act. The Act sets forth strict requirements for those who send commercial email, imposes penalties for spammers who violate the law and for companies whose products are promoted by spammers. It also gives consumers rights to ask emailers to stop spamming them. The FTC is the nation’s consumer protection agency and is charged with enforcing CAN-SPAM along with the Department of Justice. The most we can do to protect ourselves from spam is to keep our email address unlisted. There is no such thing as a National Do Not Email Registry- the FTC confirms that it’s a scam. Send problematic spam to the can by filing a complaint at www.FTC.gov.

Counterfeit is Never in Style

From my weekly (AM) radio segment titled "Legal Minute".


For those of us planning to enjoy off-season travel in Europe this year, we may be looking forward to finding some great bargains on designer items. However, we cannot give into temptation when street vendors in Europe or the US entice us with fake Fendi, Gucci or Louis Vuitton. This doesn’t only apply to ladies; men also fall prey to great looking knock-off designer luggage, wallets and briefcases. Buying fakes is criminal and the profits are often used by criminals to fund illegal activity such as drug smuggling and terrorism. Most of Europe and the US are cracking down hard on counterfeiters and tourists who buy their goods. In the US buying counterfeit goods is criminally and civilly punishable under Federal law with fines and prison time. In Europe, Italy and France gave new meaning to fashion police by increasing penalties for counterfeiting in 2005. Any person caught in these countries buying or wearing fake designer goods will be penalized anywhere from 10,000 to 300,000 Euros. Remember, counterfeit is never in style.

Making Your Mark

From my weekly (AM) radio segment titled "Legal Minute".

When we start or manage our own business- making our mark in the community is important. One of the ways to do this effectively is by owning a trademark of our own. Trademarks and service marks are names, words and symbols used by vendors of goods or services to identify and distinguish their goods or services from those offered by others. Trademarks are used on goods and service marks are used for services. McDonalds is a well-recognized trademark as is the Nike swoosh. Symbols, characters and unique product shapes can be trademarks as well. Tony the Tiger who appears on frosted flakes is an example of a trademarked character used to represent a product. A trademark can also aid in domain name ownership. All states protect unregistered trademarks under non-statutory common law. However, protection of trademarks used in commerce is available under the Federal Trademark statute known as the Lanham Act. Federally registered trademarks are best but the law is complex so seek the help of an attorney to assist.

Right of Publicity

From my weekly (AM) radio segment titled "Legal Minute".


We all have many rights in common. One of them is that we each have an individual right to control the use of our own name and likeness. This right is known as a right of publicity. The right of publicity allows us to prevent the use of our name or likeness for commercial purposes. For example, imagine as you walked down the street, you were stopped and asked by a major fast food chain if you would like a free burger in exchange for allowing the chain to take your smiling picture with the burger in hand. Then imagine that your picture was later used by the fast food chain in a nationwide TV ad campaign and all you got out of it was the free burger. In addition to being rather upset, you would have a right of publicity claim against the fast food chain. The right of publicity is often confused with our individual right of privacy. The two rights do intersect but they are not the same. The right of publicity gives us a property right in our identity. The right of privacy protects us if we suffer emotional harm from the publication of private facts that are embarrassing, intimate or portray us in a false light. If you believe that your rights have been infringed upon, seek advice of counsel about these issues.

Monopoly is No Game

From my weekly (AM) radio segment titled "Legal Minute".


We’ve all played Monopoly but in real life, it’s not a game. So what is a monopoly in real life? Some may say Microsoft but, seriously, real life monopolies are concentrations of wealth in the hands of a few. Monopolies negatively impact competition in the marketplace. If we form a monopoly then we are anti-competitive. Without competition, there is no price control. In other words, if we want to buy something under a monopoly, we have to pay the monopolist’s price for it. We would have no choice and no price protection. Monopolies also lead to sluggish markets and a loss of entrepreneurship and innovation. Congress passed the anti-monopoly law over 100 years ago. The U.S. Constitution applies that law to all business in all states. The problem these days, is how do we identify what sort of conduct by businesses might lead to a monopoly? Federal agencies are hosting public hearings this year to discuss how to better identify and enforce anti-competitive conduct. Aggressive pro-consumer programs will come under scrutiny as well as loyalty discounts such as buy 3 get one free offers. One thing is certain, however; there are no “get out of jail free” cards for monopolies.

Home Improvement

From my weekly (AM) radio segment titled "Legal Minute".


Summer is the time to start those home improvement projects. As we purchase new windows, contract for a new roof or buy anything else for our home, we must remember to ask about the warranties up front. If we don’t check our warranties then we’ll find ourselves in a mess should we discover that our home improvement items have defects. Anytime we buy a new product for personal, family or household use we are protected under State and Federal warranty laws. The benefit to us of this protection is that every product we purchase must carry some type of warranty. If there is no warranty then that’s a bad sign and should be a red flag. When we have a warranty we can make a claim with the manufacturer for a repair, replacement or perhaps a refund if we discover that the product is defective. Product warranties are free to us as consumers and extend for a reasonable period of time- usually thirty or ninety days. Under the law, product warranties are supposed to be hassle-free. We don’t need to fill out a registration card to receive our warranty. If we’re asked to do this then it’s illegal. Good luck on the home improvement!

Art and Morality

From my weekly (AM) radio segment titled "Legal Minute".

What if someone went and sprayed hot pink graffiti all over the Lincoln Memorial? The act would be an outrage. All civilized cultures throughout the ages recognize the moral duty to protect works of fine art. Federal and state law recognizes this duty and imposes it on all of us. The law give protection to the moral rights of artists. What that means is that each work of fine art carries with it a moral right of its creator requiring that no person deface, alter or destroy a work of fine art intentionally or with gross negligence. Gross negligence would be something like – letting your kids run around with water balloons in the Guggenheim. California gives any creator of fine art (and their heirs) a legal right of action during the artist’s life and for 50 years after death. So what is fine art anyway? Well, that depends on recognized standards and, if there are none, upon opinions of artists, art dealers, collectors and museum curators. For fine art, such as murals, that exist on buildings scheduled for demolition, the artist is entitled to receive notice and the opportunity to remove his or her work of art. Opinions may differ as to what is fine art but not on the desire that all fine art should be protected.

The 411 on DBAs

From my weekly (AM) radio segment titled "Legal Minute".


Owners of start ups are wise to start off on the right track. One item on the to do list is filing a Fictitious Business Name statement or DBA, doing business as, statement. This is a requirement under state law for any person or company who is in business for profit. Filing a DBA is useful when we want to collect funds or market our business under another name. For example, my firm is known as “Zent Law Group” but we also have a DBA under the name ZLG which is sometimes used for marketing and collection purposes. Filing the DBA statement is easy. Run a search on the internet, download the appropriate forms and file the statement with our county. Filing the DBA early in the startup phase is best in order to have exclusive rights in the county to use the DBA name. It’s helpful to keep a few rules in mind when filing DBAs. For individuals, the DBA must exclude our last name and the suggestion of other owners (such as John Doe brothers or John Doe and associates). For companies and partnerships, the DBA must exclude the name on the articles of incorporation or certificate of partnership. No DBA statement is required for non-profits. For more help on filing, check the state code or contact your business lawyer.

Say No to Junk Fax

From my weekly (AM) radio segment titled "Legal Minute".

We all get junk fax, even if we have a home fax machine. In the spring of 2005, President Bush signed the Federal Junk Fax Prevention Act which allows organizations to fax ads to consumers and businesses with which the organization has a qualifying established business relationship. Critics of the law claim that the standard is too loose. California’s answer was a far more restrictive standard when Governor Schwarzenegger recently signed legislation that will impose significant burdens on businesses communicating with consumers via fax machines. Under the new law, unsolicited commercial faxes can be sent only with the express prior consent of the recipient. There is no exception for any established business relationship and the law applies to both intra-state and interstate faxes. There’s a fine of $500 fine for violation of the ban with triple damages for willful violation. The burden is now on the sender of unwanted faxes if they are sending to Californians. It pays to live in the golden state. The new law takes effect on January 1, 2006.

Drink Responsibly

From my weekly (AM) radio segment titled "Legal Minute".

During this season of holiday parties and year-end celebrating, alcohol is everywhere, so everybody needs to remember the laws regarding drunk driving. California has two basic drunk driving laws found in Vehicle Code sections 23152(a) and 23152(b). 23152(a) makes it a misdemeanor to drive under the influence of alcohol and drugs. 23152(b) makes it a misdemeanor to drive with a blood alcohol level of .08% or greater. Drinking and driving can result in being convicted of both offenses but the punishment will be singular. Punishment varies by facts but generally, for the first offense, it will consist of a fine, a 90 day license restriction in addition to a DMV suspension, attendance at DUI school for up to 9 months and probation for up to three years. Vehicle Code section 23153 sets forth the felony DUI provisions where an injury results from the drunk driving. The Penal Code sections 191.5 and 192 describe the crime of vehicular manslaughter where a death results from the drunk driving. Be safe on the road this season.

Personal Finance Woes

From my weekly (AM) radio segment titled "Legal Minute".

Many folks spend beyond their means during this time of year and before they know it, they are being swallowed up in debt. The way out used to be declaring personal bankruptcy under Chapter 7 which permitted the canceling of all debts. But, Congress made some key changes to the personal bankruptcy laws. One of the most notable changes to Chapter 7 is that the debtor – the person filing the bankruptcy – prove that his or her income is less than the state median income. In addition, the consumer cannot obtain relief under Chapter 7 if his or her current monthly income, less all debts and allowable expenses, is greater than $100 per month. Debtors who meet this threshold would be shifted out of Chapter 7 and into a 5 year repayment plan under Chapter 13. The creditor has some duties as well. Under the new law, credit card companies are required to inform consumers up front what they are expected to pay, and what penalties they will face if they are late on a payment. Stricter laws make personal bankruptcy a last resort. Spend wisely.

Notes on Copyrights

From my weekly (AM) radio segment titled "Legal Minute".

Kids who are growing up with iPods, Rhapsody and Napster often forget the original ownership of the music they download. The ownership of a musical composition is called a copyright, and that copyright exists at the moment a song is composed by its author. The musical composition is the melody of the song which may or may not include words, known as lyrics. Under the US Copyright Act, the copyright belongs to the author of the song and gives the author the exclusive right to make and publish copies of the song, make recordings of the song and perform the song in public. So, it is illegal to make an unauthorized copy of a song. There are some exceptions and they’re covered by the Audio Home Recording Act but it’s important to remember that it’s the author who holds the rights to those works. The only music that is free to everyone is music that is in the public domain. Very old songs such as religious hymns or classical music are examples of public domain works. We value art by respecting copyrights.

Protect Your Child Online

From my weekly (AM) radio segment titled "Legal Minute".


Kids today have more devices and access to computers than any generation. So, it can be tough for parents know their rights when it comes to what kids are doing online. Kids are also unsuspecting prey for online predators. That’s why the Federal government enacted the Children’s Online Privacy and Protection Act – or COPPA- back in 2000. COPPA applies to the online collection of personal information from children under the age of 13. Website operators cannot collect or use personally identifiable information about a child, such as full name, home address, email address, telephone number or any other information that would allow someone to identify or contact the child without meeting certain conditions. The conditions are that the website operator must have a privacy policy available on their website and direct notice must be provided to the parent about the proposed collection of the child’s personal information. Notice to the parent by email is acceptable. Then, the parent has the right to consent or withhold consent before any information about their child is collected. Parents also have the right to revoke a previous grant of consent. Keep our kids safe online and exercise your right to say no.

Clearing the Air

From my weekly (AM) radio segment titled "Legal Minute".


The Federal Clean Air Act has been around for a while and you probably know that it is designed to prevent environmental dirty air culprits such as smog and hazardous air pollutants. The Act is also, technically, designed to cut back on the use of fireplaces and woodburning stoves, a luxury that many enjoy during the winter months. Wood smoke contains air pollutants that can also be cancer causing. In an effort to comply with the Clean Air Act, the San Joaquin Valley Air Pollution Control District in California has devised a plan that will leave many of the Central Valley's 3.5 million residents out in the cold by banning wood-burning fireplaces and stoves. If approved, the new regulations would affect approximately 500,000 households that currently have traditional wood-burning fireplaces and stoves. Residents of such households are up in arms as they depend on the warm blaze during the Valley's cold winters to save on energy costs -- which, by the way, have skyrocketed in the state over the past several years. We could all use an oil or gas fired furnace as a safer alternative or there could be a lot of cold winters ahead.

Stop the Traffic

From my weekly (AM) radio segment titled "Legal Minute".


Human Trafficking is a crime that offends all of humanity and all countries must do their part to stop it. If you don’t know what it means, it means just what you would think- the forced sale of human beings into slavery or servitude, most commonly, as prostitutes, many of whom are children. Only weeks ago, President Bush signed the Trafficking Victims Protection Reauthorization Act in response to the issue. The Act, in its basic form, has been in effect since 2000. Prior to that, no federal law existed to protect trafficking victims and prosecute their traffickers. The new version of the law, however, expands the scope of the act to incorporate more resources for victims. In addition, the new law grants funds for state and local law enforcement agencies for the investigation and prosecution of human traffickers. On the international front, the United Nations established the a global program designed to assist member states in their efforts to combat human trafficking. If you think you have come in contact with a victim, stop the traffic by contacting the Trafficking Information and Referral Hotline.

Stare Decisis

From my weekly (AM) radio segment titled "Legal Minute".


During Samuel Alito’s confirmation hearings, when pressed for statements as to how he would rule on certain issues he stated that he would follow the doctrine of Stare Decisis. Stare Decisis is Latin for “to stand by that which is decided”. Stare Decisis is used to refer to a complex legal doctrine that requires the prior decisions of courts to be regarded as precedent. The motivation for the doctrine is that we need to maintain certainly, predictability and stability in the law. Although, there are exceptions to the doctrine. For instance, courts may deviate from precedent by overruling cases that may be contrary to public policy or for other reasons. Some argue that the doctrine interferes with judges’ rights to interpret the law and the legislature’s right to make the law. It is, however, a fundamental policy of jurisprudence that relevant precedent must be followed even if a case, if decided anew, might be decided differently. A party seeking to overturn precedent has a challenging task of proving that the existing precedent is no longer good law.