New Tax Requirements for Nonqualified Deferred Compensation
November 01, 2004
The implementation of nonqualified deferred compensation arrangements providing for distributions upon certain types of arguably foreseeable "hardships" (<i>eg</i>, to pay for college) or in return for a "haircut" forfeiture, cut against the notion that the revenue deferral effect on the government is outweighed by the benefit of permitting the accumulation of additional retirement funds, as these arrangements provide benefits which may not be used for purposes of retirement. The American Jobs Creation Act (the "Act") was passed by the House of Representatives on Oct. 7, 2004, and received final approval from the Senate on Oct. 11, 2004. President Bush is now expected to sign the Act into law before the end of 2004. The Act enumerates an array of requirements intended to curb perceived abuses in the realm of executive compensation. In many ways, the thrust of the new requirements is to conform a number of aspects of the operation of nonqualified deferred compensation arrangements to those applicable to tax-qualified "401(k)" plans. Consequently, to be tax-effective under the new requirements of the Act, deferred compensation arrangements will need to operate in a fashion more akin to true retirement arrangements.
Document Destruction Horror Stories
November 01, 2004
Three recent cases involving government inquiries provide sobering lessons about electronic evidence to corporations and their lawyers. The most notorious, <i>U.S. v. Arthur Andersen, LLP</i>, resulted in criminal convictions. Another, <i>In the Matter of Banc of America Securities LLC</i>, involved SEC enforcement action. The third, <i>United States v. Philip Morris</i>, arose in a Department of Justice civil suit. If nothing else, the cases demonstrate that corporations exposed to such investigations must implement effective and well-maintained information management systems.
First-Year Off Hook In Representing Dot-Com
November 01, 2004
Heller Ehrman White & McAuliffe has agreed to settle a suit charging that the firm drove a now-defunct dot-com into the ground by making a first-year associate its lead attorney.
Is Your Client A Spammer?
November 01, 2004
We've covered the CAN SPAM Act fairly extensively from a "what is it" type of perspective. In this article, Board of Editors member Jonathan Bick provides some practical advice on how to advise those clients who want to send marketing e-mails lawfully (it just doesn't seem right to say "spam lawfully.
NY Federal Court Sends 'Typosquatter' To Prison
November 01, 2004
Several months ago, U.S. District Judge Michael Mukasey of the Southern District of New York sentenced one of the most notorious "typosquatters," John Zuccarini, to two and a half years for violating the Truth in Domain Names Act, which was enacted by Congress last year. <br>Although his arrest and conviction remain the most significant actions taken under the statute, the Domain Names Act adds another possible step that can assist companies that are victimized by typosquatting on the Internet.
Content Agreggator Agreements With Online Music Services
November 01, 2004
Legitimate online music services have struggled to provide content from the fragmented independent music world. Until recently, independent artists were not very present on the legitimate online music services. This is partly because the major labels control the best-known recordings, partly because the major labels usually support online distribution with significant marketing budgets and partly because it is not very efficient for an online service to negotiate agreements with thousands of independent artists. <br> But after securing licenses from the major labels, the major online services sought to differentiate their offerings by adding independent artists. This created opportunities for a few companies to enter into "middleman" distribution agreements with many independent artists, and then enter into a licensing agreement with an online service for the artists' content. (Aggregators may also represent smaller independent labels, but this article will focus on independent artists who are also copyright owners.)
Workplace E-mail: Employers Beware!
November 01, 2004
E-mail has become a way of life. Its advantages in the business world are widely known: It is an inexpensive, easily distributed medium, which can be accessed, even wirelessly, almost instantaneously anywhere in the world. In this fast-paced global economy, these features are highly desired. E-mail in the workplace is a double-edged sword, however, and the problems associated with workplace e-mail, particularly in connection with litigation-related discovery, have been recognized with increasing frequency by courts and litigants around the country.
U.S. Recognition of International Financial Restructurings
October 29, 2004
There has been a significant increase in litigation in the U.S. under Section 304 of the U.S. Bankruptcy Code. It is through that statutory mechanism that foreign issuers, having sold debt in the U.S., restructure the debt under foreign restructuring regimes and then return to the U.S. for "recognition." Recognition under ' 304 has been read to cut off claims and litigation by U.S. creditors in U.S. courts, avoid U.S. judgments for collection, and hence can pave the way for the foreign company to access the U.S. capital markets in the future.
Making the Case for a 'Good Faith' Chapter 11 Filing
October 29, 2004
The distinction between recourse to Chapter 11 protection as a legitimate means to maximize the value of a company's assets and/or to restructure its financially troubled yet otherwise viable operations, on the one hand, and clear bankruptcy abuse, on the other, is sometimes murky. A court called upon to make such a distinction is obliged to "get into the debtor's head" and investigate the board's motives for commencing a bankruptcy case and, in some cases, to decide whether the debtor's otherwise permissible use of the powerful provisions of federal bankruptcy law is impermissible because the debtor's motives are antithetical to the basic purposes of bankruptcy.
Practically Applying Business Intelligence
October 27, 2004
With more than 38,000 open matters at any given time, summarizing and analyzing practice, client and attorney information was nearly impossible to do efficiently using manual process and flat reporting. We decided it was time to implement reporting-based business intelligence (BI) software. <br>Over a 1-year period, we reviewed software and services from four vendors, including our accounting system vendor and third party providers. We selected Redwood Analytics because they are business and finance professionals that specialize in developing data warehouses and analytic cubes (note: defined below) specific to law firm performance.
