Emboldened by New Resources and Expanded Authority, Feds Continue 10-Year Look Back at Chinese Investment
At a conference earlier this year on the Committee on Foreign Investment in the United States, or CFIUS, Assistant Treasury Secretary Thomas P. Feddo spoke with pride of the Committee’s increased funding, jurisdiction, expenditures, and more aggressive review activities.
Feddo began the speech by detailing how CFIUS has implemented the 2018 Foreign Investment Risk Review Modernization Act, or FIRMMA, which expanded its jurisdiction and increased its funding. The Committee has invested in new IT infrastructure and personnel, and since May of this year, the Treasury Department has been collecting filing fees for voluntary filers, a new policy which creates a funding mechanism to supplement its budget.
Feddo went on to discuss new rulemaking around foreign investment, including a proposed rule that would force any transaction to be filed with the Committee “if the foreign acquirer would need export control authorization to transfer the U.S. business’s products or technology to its home country.”1
Another topic was the Committee’s increased vigilance when it comes to monitoring and enforcement, noting an “unprecedented civil monetary penalty of $1,000,000 for repeated breaches of a 2016 CFIUS mitigation agreement, including failure to establish requisite security policies and failure to provide adequate reports to CFIUS.”
This fits with a recent trend in screening older cases that has been noted by journalist Jeanne Whalen of The Washington Post. In her Sept. 29, 2020, article, Whalen quoted Stephen Heifetz, a lawyer at Wilson Sonsini, as saying: “We’ve heard about matters going back almost 10 years. Historically, it was unusual for [CFIUS] to reach back more than three years. But there is in theory no time limitation, and we are increasingly hearing about long reach-back periods.”
CFIUS and national security figured prominently in President Trump’s order demanding that China’s ByteDance unwind its acquisition of TikTok. “While this executive order is one of a few seen under CFIUS, and only the fourth to unwind a completed transaction, it may be a harbinger,” we wrote in our Aug. 18, 2020 post. “Parties and counsel working on international deals must be acutely aware: this committee considers personal data a serious national security issue. It can and will block or unwind tech deals that give foreign access to Americans’ personal information.” See POTUS Uses CFIUS to Unwind TikTok Deal, Fears Chinese Government Will Get Americans’ Private Data by Dan Mogin and Jennifer M. Oliver.
As the headline of The Washington Post article said, “TikTok was just the beginning …”
But this isn’t the only corner of the federal government expanding its merger review program. Read more on the MoginRubin Blog.
Combating Plaintiff Reptilian Tactics in Complex Litigation: Discovery, Voir Dire, Direct and Cross-Examination
Combating Plaintiff Reptilian Tactics in Complex Litigation: Discovery, Voir Dire, Direct and Cross-Examination Plaintiff attorneys use "reptile theory" to get larger plaintiff verdicts by appealing to the primal region of jurors' brains focused on safety and self-preservation. "Reptile" tactics seek to subtly lead the jury to believe that the defendant put all of society in danger and that a plaintiff's verdict is the only way to keep the world safe for themselves and others. Its proponents credit reptile theory for $6 billion-plus in jury verdicts, including a single $50 million verdict in a wrongful death case. To be most effective, reptilian theory tactics are deployed during every phase of a case, including discovery, opening statement, direct- and cross-examination, and closing argument. Defense attorneys must spot when reptilian tactics are being used and develop strategies for nullifying them. Listen as our authoritative panel of litigators shares how to defend against these tactics and create the best opportunity for success at trial. Beth C. Boggs Managing Partner Boggs Avellino Lach & Boggs Matthew D. Gurbach Partner Bricker Graydon Kathryn Whitlock Partner Bricker Graydon LIVE Webinar June 27th 2023| 1:00PM Eastern This Strafford production has been specially selected for HB audiences. What is the underlying basis for "reptilian" theory trial tactics? How are plaintiffs' attorneys leveraging reptile tactics to influence jurors? How can defense attorneys counter plaintiffs' use of reptilian tactics? Reptilian tactics in litigation: how to spot them Defense strategies: from discovery through closing argument
Combating Plaintiff Reptilian Tactics in Complex Litigation: Discovery, Voir Dire, Direct and Cross-Examination
Combating Plaintiff Reptilian Tactics in Complex Litigation: Discovery, Voir Dire, Direct and Cross-Examination Plaintiff attorneys use "reptile theory" to get larger plaintiff verdicts by appealing to the primal region of jurors' brains focused on safety and self-preservation. "Reptile" tactics seek to subtly lead the jury to believe that the defendant put all of society in danger and that a plaintiff's verdict is the only way to keep the world safe for themselves and others. Its proponents credit reptile theory for $6 billion-plus in jury verdicts, including a single $50 million verdict in a wrongful death case. To be most effective, reptilian theory tactics are deployed during every phase of a case, including discovery, opening statement, direct- and cross-examination, and closing argument. Defense attorneys must spot when reptilian tactics are being used and develop strategies for nullifying them. Listen as our authoritative panel of litigators shares how to defend against these tactics and create the best opportunity for success at trial. Beth C. Boggs Managing Partner Boggs Avellino Lach & Boggs Matthew D. Gurbach Partner Bricker Graydon Kathryn Whitlock Partner Bricker Graydon LIVE Webinar June 27th 2023| 1:00PM Eastern This Strafford production has been specially selected for HB audiences. What is the underlying basis for "reptilian" theory trial tactics? How are plaintiffs' attorneys leveraging reptile tactics to influence jurors? How can defense attorneys counter plaintiffs' use of reptilian tactics? Reptilian tactics in litigation: how to spot them Defense strategies: from discovery through closing argument
Product Liability Claims Against Overseas Manufacturers and Suppliers Lacking Presence or Assets in the U.S.
Product Liability Claims Against Overseas Manufacturers and Suppliers Lacking Presence or Assets in the U.S. How Businesses Outsourcing Production Protect Themselves. What Injured Plaintiffs Can Do to Recover. Many products sold by U.S. businesses are made thousands of miles away by a company that has no presence or assets within the United States. If that finished product or a component in that product causes personal injury or property damage due to a defect or failure to warn, both the injured party and the U.S. seller may wish to recover damages from the overseas producer either directly or by way of indemnification. Before contracting with overseas producers, and in particular those in China, businesses must carefully negotiate and meticulously document their arrangements. U.S. plaintiffs--whether businesses or individuals--seeking redress from manufacturing defendants that have no, or intentionally superficial, presence within the U.S. must first identify recoverable assets before they attempt to file suit in the U.S. or another jurisdiction. Dan Harris Founder Harris Bricken Kenneth Krys Executive Chairman & Founder KRyS Global CLE On Demand This Strafford production has been specially selected for HB audiences. How does a business manufacturing overseas protect itself on the front end? Can injured plaintiffs leverage the agreements between the U.S. company and its non-U.S. manufacturer to obtain recovery? What should be considered before filing suit in the U.S. against a non-U.S. company? Will a U.S. judgment be enforceable outside the U.S.? What are the important issues with products made in key places like Mexico or China? Are the issues different with Canadian companies? Protections for businesses outsourcing production Structural protection Due diligence Contracts Identifying and recovering assets in non-U.S. jurisdictions Procedural and jurisdictional hurdles Importance of local contacts
New State Data Privacy Laws in California and Other States: Corporate Counsel Compliance Guidance
New State Data Privacy Laws in California and Other States Corporate Counsel Compliance Guidance Currently, there is no omnibus federal privacy law in effect in the United States--only issue or industry-related laws such as the Gramm-Leach-Bliley Act for financial institutions and COPPA for children online. Instead, privacy laws consist of a patchwork of various state laws with ever-growing complexity. In 2023, California, Virginia, Colorado, Connecticut, and Utah comprehensive state privacy laws are scheduled to go into effect along with several other states proposing legislation. All five privacy laws define "personal data" and "personal information" broadly and California now covers human resources and business-to-business data subjects in addition to traditional consumers. Virginia, Colorado, Connecticut, and Utah borrow some key terms and definitions from the EU General Data Protection Regulation and others from the California regime. All give residents more control over their personal data, especially regarding third-party disclosures and use for advertising.The California Privacy Rights Act (CPRA) amends and broadens the California Consumer Privacy Act that was passed in 2020. The CPRA is the only one of the five state privacy laws that creates a private right of action, which is limited to certain data security incidents. it contains increased penalties for violations related to a minor's data. Also, CPRA creates a new enforcement and rulemaking body, the California Privacy Protection Agency. Both California and Colorado are actively promulgating regulations that add obligations and limitations beyond what the underlying laws require.Although the other states' laws have similarities with the CPRA, there are significant differences that every company and its counsel should be aware of in the event they meet pertinent size and revenue thresholds and utilize personal data in those states. It is critical to have thorough knowledge of which state privacy laws apply, how to comply, and ways to avoid regulatory investigations to minimize costly claims and business disruption. Alan Friel Partner Squire Patton Boggs Myriah V. Jaworski Member, Data Privacy/Cyber Security Group Clark Hill CLE Webinar On Demand This Strafford production has been specially selected [...]
Legal Issues With Blockchain in Banking and Fintech: Implementing New Applications | 5.24.2023
Legal Issues With Blockchain in Banking and Fintech: Implementing New Applications Leveraging DLT Platforms for Recordkeeping, Payments, KYC, and More; Concerns With Regulation, Privacy, Adaptation DLT is widely considered to be a disruptive force in the banking and financial services industries. Through a decentralized, peer-to-peer networked database, transactions are verified, monitored, and enforced without a third-party intermediary, reducing costs and providing real-time information to network participants. The best known use of blockchain is bitcoin, but banks and fintech companies are using DLT platforms for other purposes, including account records, trading and financial transactions, KYC protocols, and loan and payment processing. DLT is inherently more secure and less susceptible to fraud than centralized platforms, but there are challenges to implementing DLT. Counsel will need an understanding of the technology as well as the legal ramifications of blockchain, including concerns with privacy, integration into existing systems, regulatory uncertainty, and scalability. Listen as our authoritative panel discusses the potential applications of blockchain technology and its advantages over centralized platforms concerning authentication, data security, and cost-efficiency. The panel will also address the legal and logistical issues to consider in implementing DLT. Michael C. Egan Partner Cooley Rebecca J. Simmons Partner Sullivan & Cromwell CLE Live Webinar 90-minute premium CLE video webinar with interactive Q&A Wednesday, May 24, 2023 1:00pm-2:30pm EDT | 10:00am-11:30am PDTA This Strafford production has been specially selected for HB audiences. What is a distributed ledger, and how does it change the way transactions and information are documented? What are some of the current and proposed uses of blockchain in banking and fintech? What are the advantages of DLT and blockchain as to data security, efficiency, and fraud protection? What legal issues arise with DLT and blockchain that are not present with more conventional formats for transacting business? DLT/blockchain/smart contracts explained Regulatory framework Federal State International Applications in banking and fintech Recordkeeping KYC (know your customer) Trading platforms Raising capital Bitcoin and other virtual currencies Payments/money transmission businesses Other Challenges to implementation [...]
AI Image Generators and Copyright: Eligibility in the U.S., UK, EU, and More; Fair Use, Derivative Works, Liability
AI Image Generators and Copyright: Eligibility in the U.S., UK, EU, and More; Fair Use, Derivative Works, Liability AI programs are now readily available for all. Stability AI, Lensa, and other AI image creation tools create original works of art, raising the question of IP protection for such art. The United States requires human authorship in order to obtain copyright protection, and so far, the U.S. Copyright Office has declined to grant copyright registrations for AI-created works of art based on a lack of human authorship (one of these decisions is being challenged in Thaler v. Perlmutter (D.D.C. filed June 2, 2022)). While some countries take a similar approach to the US, others treat the issue of copyright eligibility for AI-generated art quite differently and provide at least some protection of computer generated works. Questions have also been raised as to whether AI-generated images constitute derivative works and whether such images and the AI generation tools used to create them infringe third-party copyrights, or whether the fair use doctrine or other defenses may apply. The first lawsuits involving image generators have now been filed raising copyright claims in addition to other claims. Listen as our authoritative panel of IP attorneys examines AI image generators and the associated copyright issues. The panel will discuss eligibility in the U.S. and the recent actions by the Copyright Office and contrast this with the approaches used in other countries. The panel will also address the recent cases that have been filed and the potential liability for copyright infringement in the U.S. and other countries. Michael R. Graif Member Mintz Levin Cohn Ferris Glovsky and Popeo Lisa T. Oratz Senior Counsel Perkins Coie Scott J. Sholder Partner Cowan DeBaets Abrahams & Sheppard CLE On-Demand Webinar This Strafford production has been specially selected for HB audiences. What hurdles confront counsel when demonstrating authorship of AI-generated works? How does copyright apply to AI-generated works? How does it differ across jurisdictions? What steps can counsel take to increase the likelihood of success when seeking copyright protection for [...]