A US appeals court has reversed its 2002 Winter Storm decision that allowed third parties outside the US to attach electronic funds transfers handled through intermediary banks in New York, removing a source of uncertainty and disruption in international commerce. New York partners Lawrence Newman and David Zazlowsky report.
China’s intellectual property tribunals are growing more sophisticated and taking infringement claims seriously. But even as more companies go to court, fresh challenges to enforcing IP rights are emerging. Hong Kong partner Loke-Khoon Tan offers a status report on IP protection in the world’s largest market.
The Australian government says it will make it easier for individuals to transfer medical records between health service providers and for providers to share patient information when it is within necessary for treatment. Sydney partner Ann-Marie Allgrove reports.
In a surprise decision, the Federal Court of Australia Credit has ruled that card companies are subject to goods and services tax (GST) on the interest they receive from cardholders on outstanding balances. Sydney partner Amrit MacIntyre explains.
Banks can be sued for negligence and liable for damages if hackers are able to access online client accounts because the banks failed to use “multi-factor” identification systems, a US federal judge has ruled. Chicago partner Brian Hengesbaugh reports.
The Netherlands count numerous domestic and foreign closed-end real estate funds that have the legal form of a limited partnership. A pending bill of law in the Netherlands will, once into force, enable Dutch limited partnerships to opt for legal personality. The election for legal personality will not change the current Dutch income tax treatment of the limited partnership and its partners, our Amsterdam lawyers expain.
Some US courts are giving the Equal Employment Opportunity Commission wide latitude to demand companywide information about policies and practices related to discrimination in the workplace. US employment partners Lou Michels and Jenni Field suggest strategies for dealing with such demands.
US group health plan sponsors need to amend business agreements with service providers, review plan participant information systems and take other steps to ensure they are in compliance with a new HIPAA law that requires them to notify participants if their “unsecured” protected health information has been breached. New York partner Pia Flanagan reports .
Employers considering dismissals need to ensure they can prove union membership was not the reason, follow disciplinary protocols and be careful what they say. As our Hong Kong employment partners explain, Cathay Pacific paid a high price when it discharged pilots after a labor disagreement.
Singapore’s Ministry of Manpower is advising companies to take advantage of government-subsidized employee retraining programs, reinstate salaries and develop flexible wage systems. It also issued guidelines to help companies prepare for raising Singapore’s retirement age to 67. Associate principal Kelvin Poa explains.
Following a record year for FCPA prosecutions, US officials continue to step up enforcement of the far-reaching statute. To avoid increasingly stiff penalties, global companies need strong training programs to ensure employees, third-party agents and distributors comply. Washington DC partner Elizabeth Stern explains.
US Immigration and Customs Enforcement is targeting 1,000 companies involved in critical infrastructure related to public safety and national security in a new audit program. Washington partner Carl Hampe notes, ICE often asks for information companies are not legally required to produce without a subpoena.
In a crackdown on tax evasion, France is planning to develop a blacklist of countries that don’t cooperate with its tax enforcement efforts. Companies operating in those countries will be subject to higher withholding and more extensive transfer pricing documentation. Our European Wealth Management lawyers explain.
Singapore has improved its position as an international financial center by signing more than a dozen protocols permitting Singaporean banks to share financial information with taxing authorities in other countries. Principal Edmund Leow explains the changes as well as the safeguards for taxpayers and financial institutions.
In Japan, parent companies that influence working conditions in subsidiaries can be required to bargain with representatives of the subsidiaries’ employees even though they don’t employ them directly. Failure to do so can result in criminal fines and sanctions for unfair labor practices. Tokyo partner Hideo Ohta and foreign associate Georgina Stevens report.
Mexico is considering changes to its maquiladora tax policies that could cost US companies with consignment manufacturing agreements their tax advantages. Chicago partner John McLees and Mexico tax director Hector Reyes-Freaner explain the implications in this new analysis.
Canada is considering using the shame of a blacklist and a two-year prohibition against hiring foreign workers for violators to encourage compliance with its foreign workers program. And as members of our Toronto employment team explain, the proposals will increase the risks and costs for employers.
In the tough economic climate, employees worldwide are resorting to more extreme measures to protest redundancies. As Frankfurt partner Guenther Heckelmann explains, German unions are borrowing ideas from performance art to put pressure on employers.
The Spanish Supreme Court says trade unions are entitled to salary data about the workers they represent. But in a bow to privacy concerns, the court limited the information to standard salary scales, not each worker’s actual remuneration, Barcelona associate Silvia Escuain reports.
The EU Commission says a tax incentive given to Spanish companies that purchased significant stakes in EU companies outside Spain constituted unfair state aid. Spain was ordered to abolish the tax break and recover aid given under the law, Barcelona partner Pedro Aguarón reports.
UK unions are required to tell employers as soon as reasonably practical if they have taken a strike vote, whether the vote passes or not. But a recent Court of Appeals decision suggests unions may have some flexibility on the scope of their disclosures, as London partners John Evason and Monica Kurnatowksa report.
Malaysia has revised its Automotive Policy to attract foreign investments and hasten integration into the global market. Changes include lifting a freeze on manufacturing licenses and expanded tax exemptions. Kuala Lumpur partners Adeline Wong, Brian Chia and Chew Kherk Ying report.
The Hong Kong government has begun public consultation on proposals for a corporate rescue regime for companies facing short-term financial difficulties. As partners from our Financial Restructuring & Insolvency Practice explain, the proposals borrow heavily from the UK and Australia’s voluntary administration regimes.
The US IRS has issued guidance for US citizens relinquising their citizenship and long-term green card holders who surrender their green cards, and who are subject to the "exit tax". The tax due is based on a “mark to market” valuation of unrealized gains on all assets worldwide, Zurich associate Marie-Therese Yates reports.
If you’re thinking of using viral marketing methods to gather e-mail addresses for a promotional event, beware. A Spanish live entertainment ticketing and marketing company has been fined EUR30,000 for doing just that. Read Madrid partner Maite Diez’s report.
UK employers whose pay scales are determined (in whole or in part) by length of service should consider whether they can demonstrate that longer service correlates to better performance. A recent appellate court ruling will make it easier for employees to challenge such pay plans as discriminatory against women, our London lawyers report.
A SGD1.7 million fine against 16 regional bus operators for price-fixing suggest that a “honeymoon” period for enforcement of Singapore’s 2006 competition law is over. As Singapore principals Ai Ai Wong and Ken Chia report, two dozen investigations are under way.
Amendments to Poland’s Telecommunications Law have increased consumer protection against service provider abuses. Warsaw partner Marek Rosinski outlines the new requirements for service providers and the additional powers given to government regulators.
If your company recently sold shares in an EU subsidiary to an EU purchaser, you may be eligible for refunds VAT paid on the transaction under a European Court of Justice ruling. European tax partners Mark Delaney, Folkert Idsinga and Nicole Looks explain.
Broad new Mexican tax reforms raised the corporate income tax and VAT rate, reduced how long income taxes may be deferred in consolidation regimes, and make mandatory electronic filing of business tax documents. Our Mexico tax team provides an overview.
Russia’s new bankruptcy laws expose CEOs and shareholders to unlimited subsidiary civil liabililty in addition to administrative and criminal liabilitiesif they fail to file for bankrutpcy in a timely manner or maintain incomplete or inaccurate books, among other things. Our Moscow partners explain.
Spain has introduced a new REITs regime that offers tax breaks on dividends and capital gains to individual shareholders not based in tax havens. Our Spanish lawyers discuss the law’s features, and explain why REIT investments will be an attractive residential investment structure.
Expect more formality at virtual signings (or closings) for transactions in the UK. And take extra care to ensure that it is clear which version of a document signatures relate to. London associate Jeremy Levy reports a controversial case and how it is affecting the execution of transactions.
Proposed legislation would prohibit Swedish employers from gathering personal information on employees based solely on their consent, including criminal histories and insurance records. It would also preclude actions such as drug testing and locker searches unless properly justified. Stockholm partner Sten Bauer reports.
Only financial institutions and individuals who are legal residents of Vietnam may trade foreign currency-denominated government bonds, under new State Bank of Vietnam guidelines. They are prohibited from using government funds to purchase the bonds, report our Vietnam lawyers in this article.
A new law in Chile that empowers courts to sanction employers that “arbitrarily” violate a list of fundamental employee rights will make it more difficult for employers to terminate workers for economic reasons or poor performance. Santiago associates Catarina De La Barra and Nancy Ibaceta report.
Employers in Spain bound by collective bargaining agreements that tie mandatory annual salary increases to the consumer price index may be allowed to rescind this year’s raises if the actual CPI turns out to be less than estimates at the beginning of the year. Madrid employment associate German Martinez reports.
New antitrust laws introduce stiffer penalties, grant immunity to whistleblowers denouncing cartels and give Chilean competition authorities more intrusive investigative powers. Santiago lawyers Antonio Ortuzar Sr. and Alberto Vergara explain this major shift in public policy.
Distributors of “high risk” products, such as eyeliners or toothpaste, must submit a list of ingredients to health authorities before putting products on the market in Singapore if the products contain ingredients restricted under the ASEAN Cosmetic Directive, reports principal Andy Leck.
Vietnam plans to establish a new agency that will edit and translate all foreign programs, including live sporting events, before they air on pay TV, special counsel Elizabeth Nightingale and partner YeeChung Seck of our Vietnam offices explain.
For the first time, Japan’s Fair Trade Commission has fined non-Japanese participants in a cartel, sending a clear signal to foreign companies that they can be pursued for anti-competitive conduct under a broader definition of what constitutes “Japanese sales.”
A proposed UK equality law would allow employers to promote workers from a protected group if they “reasonably think” the group is underrepresented, expand protection of disabled workers and allow employees to bring discrimination claims on more than one ground. London partner Sarah Gregory explains.
The EU has expanded its ecodesign regulations governing the manufacture and import of electrical or electronic products. London partner Graham Stuart explains the new rules and their implications, and identifies steps companies can take to ensure compliance.
US employers can take steps to limit their liability under the Lilly Ledbetter Fair Pay Act, which significantly extends the statute of limitation in pay discrimination cases. That could include changing compensation systems and improving record-keeping, as Chicago Partner Doug Darch explains.
The Belgian government is requiring drug companies to test with users the clarity, readability and ease of use of the information they provide to patients, and adapt the materials based on what they find. Brussels counsel Annabelle Bruyndonckx reports.
Uzbekistan has adopted new laws and criminal penalties aimed at curtailing the production, import and sale of counterfeit, defective and illegal medicines. Moscow partner Alexey Trusov reports.
Chinese tax officials have started targeting multinational companies for taxes on expatriates who work in the country under secondment arrangements. If the policy sticks, it could cause a massive shift in how expatriates are assigned to Chinese subsidiaries. China partners Brendan Kelly and Andreas Lauffs report.
Termination of employees for economic reasons is difficult and rare in Japan. So companies faced with the need to reduce labor costs generally downsize by offering generous severance packages that encourage employees to voluntarily resign. Tokyo partner Hideo Ohta explains the factors to consider and risks to expect.
Under new Hungarian law, pharmaceutical companies will be eligible for tax deductions of up to 20 percent on their R&D expenses. Budapest partner Helga Biro explains the cuts, which get more generous in 2011, are intended to promote investments in R&D.
A new race discrimination law requires Hong Kong employers to justify giving expatriate employees more generous pay and benefits by proving their skills or experience is not available in Hong Kong. Hong Kong partner Jennifer Van Dale and special counsel Diana Purdy-Tsang report.
Italian law prohibits employers from reducing employee salaries even if they agree and it saves their jobs. In tough economic times, this makes it harder for companies to cut labor costs without resorting to layoffs. Milan partner Massimiliano Biolchini explains.
A new French “accreditation scale” rewards reliable, low-risk importers and exporters with streamlined customs procedures, allowing for faster market entry of their goods. Paris partner Therese-Anne Amy explains how the system works.
New implementation rules for China’s amended patent laws clarify transition issues and, for the first time, make it possible to pursue patent enforcement actions based on offers to sell infringing goods. Hong Kong partner Joseph Simone and special counsel Jing He report.
As financial troubles persist, state legislators and courts are finding more creative ways to deny taxpayers refunds even if they prevail on the legal merits. Palo Alto partner J. Pat Powers and Chicago associate Matthew Mock review recent cases and steps to take to avoid a phyrric tax court victory.
Since the enactment of its first competition law package in 1996, Russia law has made significant progress towards unification with competition legislation in the developed countries. With the recent enactment of what are called the “second anti-monopoly package of laws,” the Russian Anti-Monopoly Agency has begun to transition to being an active industry regulator. Partners Marat Mouradov and Ivan Smirnov explain the new laws and what they mean.
French taxpayers with undeclared assets in Switzerland should consider regularizing their tax status now, as a new treaty allows France to obtain information on banking assets to curb tax fraud, report partners from our Paris, Geneva and Zurich offices.
China health authorities have announced the first part of the country’s new Essential Drug List and a set of regulations designed to improve the efficiency of drug manufacturing, procurement and prescription under the nation’s major healthcare reform program. China partner Winston Zee and special counsel Andrew Chiu report.
New rules require foreign producers of essential drugs to comply with Russia’s pricing regulations and tell the government how much they charge for the drugs in other countries. Our Russian pharmaceutical and healthcare partners report.
If you want to use a shape mark to define your brand, be sure to educate the public about the mark if you want to protect it in Australia. Sydney partner Ross McLean offers a cautionary tale about one chocolatier’s costly fight over a seahorse.
The Hong Kong government is asking for public input on the first major reforms to its privacy laws in more than a decade. Members of our Hong Kong Privacy and Data Protection Group outline the key changes being considered.
Malaysia is moving toward tighter regulation of the practice of traditional medicines with new registration requirements for practitioners and the creation of a new regulatory council. Kuala Lumpur partner Chew Kherk Ying explains.
Participating, even unwittingly, in accounting fraud may expose you to clawback provisions under Sarbanes-Oxley, requiring you to return bonuses paid on revenue generated by the fraud. Our US Corporate & Securities lawyers offer one CEO's cautionary tale.
The US Energy and Treasury departments have outlined application procedures to help sponsors, investors and lenders understand its renewable energy projects cash grant program and the tax treatment of sale-leaseback transactions designed to encourage accelerated development of such projects, report lawyers from our New York office.
State sales tax laws aimed at capturing revenue from Internet sales are growing in the US even as they are being challenged in court. Companies that rely on internet sales are caught between a rock and a hard place in deciding how to respond, reports Chicago partner Theodore Bots.
Foreign institutions that wish to sell information that could influence China’s financial markets need to meet new guidelines with respect to their creditworthiness and business processes and be willing to share customer contracts with the government, explain lawyers in our China offices.
Changing levels of lease incentives, specific clauses that avoid “poison pills” on expiries, and reporting energy use are some examples of the market trends, commercial practices and legal developments impacting the real estate industry in this dynamic time, explains Australian partner John Fabbro in this report.
The Netherlands is considering increasing the penalties for hiding income from its tax authorities. Those who want to “come clean” to avoid criminal charges and higher penalties need to act before they suspect authorities are on to their incomplete or inaccurate filings, Amsterdam partner Peter van den Oord explains.
Taiwan’s Ministry of Finance has issued welcome new guidance reversing unpopular tax authority practice that required foreign companies to pay taxes on income realized while performing services for Taiwanese customers outside of the country, explains Taipei partner Dennis Lee in this report.
Foreign multinationals selling goods or services in China should review new guidance on what constitutes monopolistic practices when developing pricing strategies. Our China partners explain that the policies apply to actions taken both inside and outside the country.
French labor laws that allow employees to refuse work when they fear for their health or safety are not intended to apply to a flu pandemic. But employers need to take steps to protect and educate employees in order to satisfy this exemption, our Paris Employment team reports.
BSI British Standards has issued standards for the management of personal information to help small businesses comply with the UK Data Protection Act after BSI survey found one in five small businesses had breached the law at least once. London partner Harry Small reports.
Companies buying assets involving the transfer of employees covered by EU TUPE protections should draft the purchase agreement to limit exposures to equal pay claims in the event employees who remain with the seller are eventually paid more to do the same work. Our London partners explain.
A new Thai law requires service providers, including corporate users, to retain specific types of user traffic data to aid authorities in computer crime investigations, reports partner Dhiraphol Suwanprateep.
Doing business with Chinese consumers via the Internet generally requires companies to consider a local presence and, in many cases, local partners. It is a challenging regulatory environment with major pitfalls for the uninformed. Palo Alto partners Lothar Determan and Alan Marson review the issues.
Colombia has adopted a new competition regime that extends the review period for merger control decisions, increases penalties for violations and offers leniency for those who bring violations to the government’s attention. Bogota partner Maria Carolina Pardo Cuellar reports.
Thailand's Social Security Fund may unfairly discriminate against employees who hold the title "director" for local operating purposes, denying benefits that they should be able to receive. Bangkok partner Suriyong Tungsuwan lists factors such employees should ask the Fund to consider when applying for assistance under the Social Security program.
If your company sponsors foreign workers for visas in the US, you may want to prepare for possible unannounced visits by immigration authorities. Avoid unnecessary complications by reviewing compliance protocols and assigning personnel to host auditors. Washington partners Elizabeth Stern and Carl Hampe explain.
Today’s difficult financial climate is compelling companies to defer accounts payable, optimize cash flow, cut costs to improve financial efficiency, as well as promote sales to keep revenues at desired levels. Partner Arseny Seidov looks at upfront discount mechanisms and incentive payments that companies could apply in the Russian market.
Companies that sell goods or services or interests in land to consumers in Australia would need to review their approach to contracting with consumers and the terms of their contacts under legislation designed to regulate terms in consumer contracts, reports Sydney partner Penny Ward.
Producers of “borderline” medical products — drug-delivery products and medical devices incorporating ancillary substances or ancillary human blood derivative — should review new EC guidance to determine the correct route for regulatory approval required to market their products. London associate Julia Gillert and trainee solicitor Lucy Knight report.
In cross-border insolvencies, knowing where a company’s center of main interests (COMI) is located is key to evaluating insolvency risks, assessing clawback claims and more. A European Court of Justice decision sheds new light on how to apply the UNCITRAL Model Law, partners in our London office report.
Responding to concerns about privacy and data protection raised by expanding use of smart chips, the European Commission has recommended a set of principles to guide users in the development and deployment of radio-frequency identification applications, report our Global Privacy lawyers.
In China, some contracts require government approval, but it was unclear whether refusing to ask for approval was bad faith subject to damage claims. The Supreme People’s Court has clarified this and other contract law issues, as Hong Kong partner Andrew Aglionby explains in two reports.
China's 10-year plan to reshape its healthcare system will create both challenges and opportunities for many players in the healthcare industry, as Hong Kong special counsel Andrew Chiu explains.
Asking for certain information when handling credit card purchases can expose retailers to class-action lawsuits in the US. Partner Lothar Determann reports, it pays to know the rules — and make sure your employees do, too — when handling consumer transactions.
China's new rules on the tax treatment of corporate reorganizations present substantial opportunities for internal restructurings that many companies are contemplating in challenging economic times. Partners Jon Eichelberger and Brendan Kelly explain how transactions can qualify for special tax-free treatment.
China’s comprehensive new food safety law toughens standards for producing, selling, processing, inspecting, advertising and recalling food products. Producers, distributors, exporters and importers face increased product liability and severe sanctions for non-compliance, as lawyers in our China offices explain.
Competition issues need to be considered when seeking State stimulus support in the EU. Not all support requires European Commission approval, but some does, explain Brussels lawyers Nina Niejahr and Liesbeth D’Hespeel.
Two recent court decisions illustrate the difficulties of enforcing rights to well known trade marks in Malaysia in the absence of legislative or judicial recognition of the concept of dilution, our Singapore IP principals report.
Civil Justice Reforms in Hong Kong are encouraging parties to use mediation and ADR, and could expose those who resist to sanctions, lawyer in our China office explain.
Companies bidding for projects financed by the US government’s stimulus package need to be alert to “Buy American” provisions that limit what products they may use, Washington Trade partner Michael E. “Ted” Murphy reports.
Contemplating business immigration to Canada? Consider setting up an immigration trust to take advantage of significant tax exemption. Toronto associate Alan Diner reports.
The US SEC is stepping up efforts in holding executives accountable for foreign corruption activities even when undertaken by third parties. Associate Maria McMahon tells a cautionary tale of one US executive's case.
A dozen EU countries are preparing to add an "unsafe driving” symbol on medicine packaging to help reduce traffic accidents. Barcelona partner Montserrat Llopart reports that Spain has begun examining products likely to be affected.
Financial institutions contemplating joint ventures, acquisitions and consolidations need to consider whether their transactions will require antitrust filings in China and, if so, set aside plenty of time for review. The Ministry of Commerce has clarified who needs to file.
All operators in the supply chain are now responsible for toy safety in the European Community. Our International Trade Compliance lawyers report that those selling toys under their own name or modifying them in ways that affect safety assume manufacturer’s liability.
Tax authorities in China reportedly are drafting regulations to clarify the basic principle that intermediary holding companies lacking economic substance may be disregarded for the purpose of levying capital gains tax in China on share transfers. Partners Jon Eichelberger and Brendan Kelly report on two cases that preceded the draft regulations and highlight the need to carefully structure investments in China, amid greater anti-avoidance efforts.
In Netherlands, it has been unclear whether a longer recovery period for unpaid taxes on undisclosed foreign assets is in breach of EU fundamental freedoms. The ECJ rules that the extension constitutes a justifiable limitation — but not in all cases, explains Amsterdam associate Marnix Veldhuijzen.
An amended Swiss banking law has strengthened protection for clients, with measures such as guaranteed liquidity and increased coverage for preferential deposits, reports Zurich associate Richard Kuster.
In a downturn, building contractors and suppliers need to vigilantly monitor property developers for signs of financial difficulty. Sydney senior associate Tina Wyhoon lists 10 actions they could consider in Australia that may also be useful in many jurisdictions.
France has removed VAT charges from carbon credit trades amid suspicions they could be used in broader VAT fraud activities. Paris senior counsel Thierry Vialaneix explains this fraud risk makes Know Your Client checks prudent.
Offering a job at higher pay to an ex-pat employee in Hong Kong could run afoul of a new race discrimination law. Hong Kong partners Jennifer Van Dale and Diana Purdy-Tsang review the ordinance, and offer practical steps employers should take to assure compliance.
New rules for registering licensing agreements in Russia make it possible for any party to such agreements file for registration. All applicationsmust be in Russian, and there are other new requirements, report partners Eugene Arievich and Margarita Divina.
The global view
Review our list of recommended reading about developments in specific markets across the globe.