Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Insider Trading Policies and Cybersecurity
Cybersecurity has been a high priority topic for the SEC the past few years. In September 2017, the SEC created a Cyber Unit within its Enforcement Division. This Cyber Unit had over 225 active investigations at the SEC's 2018 fiscal year end. The SEC has focused in particular on cybersecurity risks facing public companies.
The SEC twice issued cybersecurity guidance to public companies in 2018. The SEC used one of these pronouncements to opine on the need for insider trading policies to account for cyber-related incidents. Specifically, in February 2018, the SEC issued "Commission Statement and Guidance on Public Company Cybersecurity Disclosures" ("Cybersecurity Release") outlining its views on cybersecurity disclosure requirements for public companies under the federal securities laws. The Cybersecurity Release reinforced and expanded upon cybersecurity disclosure guidance issued by the SEC's Division of Corporation Finance in 2011. It further addressed a new topic — the application of insider trading prohibitions in the cybersecurity context. Later in 2018, the SEC issued a Report of Investigation that emphasized the need for public companies to implement a system of adequate internal accounting controls to address cyber-related fraud and to calibrate those controls to the current risk environment.
The Cybersecurity Release advised that information about a company's cybersecurity risks and incidents may constitute material nonpublic information. Directors, officers and other corporate insiders therefore could violate the insider trading laws, should they trade their company's securities in breach of their duty of trust or confidence while in possession of such material nonpublic information. As a result, the SEC recommended companies have policies and procedures crafted to prevent trading on the basis of material nonpublic information relating to cybersecurity risks and incidents.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?
"Holy Fair Use, Batman": Copyright, Fair Use and the Dark Knight
The copyright for the original versions of Winnie the Pooh and Mickey Mouse have expired. Now, members of the public can create — and are busy creating — their own works based on these beloved characters. Suppose, though, we want to tell stories using Batman for which the copyright does not expire until 2035. We'll review five hypothetical works inspired by the original Batman comic and analyze them under fair use.