US Law Archives - Page 55 of 71

Software Patents: A Personal Story – Big Co Threatens Start-up

A real-life story about how a big company with a lot of money threatened a small start-up company with patent infringement.

The other day, I received a phone call from a friend who has been building a kick-ass startup. That friend had been contacted by a much larger competitor with what amounted to an ultimatum: shut down and come work for us, or we’ll crush you with a patent infringement suit. My friend’s startup didn’t cave in–in fact, my friend even went through the trouble of sharing a pile of incontrovertible prior art with the competitor. The competitor was unimpressed, and my friend’s startup is now facing a potentially ruinous lawsuit.

Baucus Healthcare Bill May Cause 70% Marginal Tax Rate

Harvard University Professor of Economics Greg Mankiw believes that Senator Max Baucus’ healthcare bill will impose a staggering tax on Americans of all income tax levels.

Jim Capretta looks at the Baucus healthcare bill and concludes that, because the subsidies phase out as income rises, it imposes an effective marginal tax rate on income of about 30 percent for many families. Add that figure to the income tax, the payroll tax, and the phase-out of the EITC and “the effective, implicit tax rate for workers between 100 and 200 percent of the federal poverty line would quickly approach 70 percent — not even counting food stamps and housing vouchers.”

Proposed Soda Tax: Coke Didn’t Make America Fat

Muhtar Kent, CEO of Coca Cola Company has a column in the October 7, 2009, Wall St. Journal about taxing soft drinks. The subtitle of the column is “Americans need more exercise, not another tax.”

Obesity is a complex issue, and addressing it is important for all Americans. We at the Coca-Cola company are committed to working with government and health organizations to implement effective solutions to address this problem.

But a number of public-health advocates have already come up with what they think is the solution: heavy taxes on some routine foods and beverages that they have decided are high in calories. The taxes, the advocates acknowledge, are intended to limit consumption of targeted foods and help you to accept the diet that they have determined is best.

In cities and states across America—and even at the federal level—this idea is getting increased attention despite its regressive nature and inherent illogic.

Bankruptcy Trustee Seeks to Set Aside Millionaire’s Transfers of Assets

There are fraudulent conveyance laws that prohibit a debtor from transferring the debtor’s assets for less than adequate consideration if: (i) the transfer makes the debtor insolvent, or (ii) the transfer occurs when the debtor is insolvent. One of the remedies available to a creditor who proves that a transfer of property was a fraudulent conveyance, is to set aside the transfer so that the creditor can use the legal collection process to realize the value of the property transferred.

Debtors who engage in fraudulent conveyances expose themselves and their co-conspirators, if any, to substantial legal problems and liabilities. A fraudulent conveyance can also be a crime.

Seattle real estate developer Michael R. Mastro filed for bankruptcy in what may be Western Washington state’s biggest personal bankruptcy. His schedules filed with the court listed total debts of $587 million and assets of $249 million.

The bankruptcy trustee James Rigby sued Mr. Mastro to set aside transfers of property that Mr. Mastro made before filing for bankruptcy.

In his suit, filed in federal bankruptcy court, Rigby says the transfers of the mansion, car and jewelry were done “with actual intent to hinder, delay or defraud creditors” after Mastro sensed his real-estate empire was collapsing. Mastro and his wife bought the mansion on Evergreen Point Road in 2006, according to county records. Through a series of transfers that began in June 2008 and involved no money, the home ended up under the ownership of a Delaware limited liability corporation.

The assets transferred include a mansion purchased for $15 million, a Rolls Royce and jewelry including five rings containing diamonds ranging from 9.68 to 27.8 carats. Sounds like Mr. Mastro has a whole lot a ‘splainin to do.

New Required FTC Blogger Disclosure

Overlawyered.com has an excellent article on how the FTC’s new ad rules will affect bloggers. Bottom line: the new rule is overly broad in scope, will have a chilling affect and it will be selectively enforced. The article includes quotes from and links to other articles on this subject.