DBL Law Announces New Managing Partner€¦ · DBL Law Announces New Managing Partner A report on...

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DBL Law has named Robert (Bob) Hoffer as its new Managing Partner. He succeeds James Dressman III who held the Managing Partner position from 2012 thru Feb. 2019. Hoffer joined DBL Law in October 1978. His employment law practice covers issues impacting employers on a daily basis, including compliance with state and federal employment laws. He has represented employers of all sizes, including some of the largest in Kentucky and the Greater Cincinnati area, and has represented hospitals and physicians for over 30 years on employment and medical negligence issues. Bob was recognized by Kenton County Fiscal Court as a 2018 Pioneer Award honoree for his outstanding community leadership and demonstration of the highest standards of personal integrity. He was selected to Super Lawyers for 2013-2019 and was named the 2012 Distinguished Lawyer of the Year by the Northern Kentucky Bar Association. The Dan Beard Council, Boy Scouts of America, presented Hoffer with the Trailblazer Award in 2015. He was recognized by Covington Catholic High School as the Northern Kentuckian of the Year in 2012. The Northern Kentucky Chamber of Commerce awarded Bob the Leader of Distinction Award in 2009. Bob is a graduate of Covington Latin School (1972), Xavier University (1976) and Northern Kentucky University Chase College of Law (1980). He is chair of the St. Elizabeth Healthcare Foundation and a member of the St. Elizabeth Healthcare Board of Trustees. Bob and his wife Diane reside in Fort Mitchell, KY. They have four children and four grandchildren. Jim Dressman will remain an active DBL Law partner, representing profit and nonprofit entities and organizations in financial transactions, business mergers and asset acquisitions and sales, real estate acquisitions, and simple and complex development projects. Jim also provides guidance for entity structuring, reorganization and employee buy/sell arrangements and management and owner succession, and advises clients with general business and tax matters, estate planning and probate matters. The Practice of Excellence 2 ADMINISTRATIVE Compliance with State and Federal Laws is Key After Hemp Legalization 1 FIRM & ATTORNEY NEWS DBL Law Announces New Managing Partner A report on emerging legal trends from the attorneys of DBL Law DBL Law Announces New Managing Partner Spring 2019 DRESSMAN BENZINGER LAVELLE psc Crestview Hills: (859) 341-1881 Cincinnati: (513) 241-4110 Louisville: (502) 572-2500 THIS IS AN ADVERTISEMENT Other attorneys may provide services advertised in this newsletter 3 EMPLOYMENT & LABOR Department of Labor Proposes to Raise Salary to Make More Workers Eligible For Overtime REAL ESTATE Electronic Signatures: Be Careful What You Agree to A report on emerging legal trends from the attorneys of DBL Law 6 EXCEL TITLE Covered or Not: How Title Insurance Can Protect Your Real Estate Investment © 2019 Dressman Benzinger LaVelle psc. All Rights Reserved. EXCELLENCE is a publication of Dressman Benzinger LaVelle psc. The contents are intended to provide information of general interest and should not be construed as legal advice. Questions about individual situations should be discussed with the attorney of your choice. @DBLLAW DBLLAW.com 8 EMPLOYMENT & LABOR Mandatory Workplace Arbitration Gets Green Light from Kentucky Legislature 5 EMPLOYMENT & LABOR EPL Insurance -- Make Sure You Ask The Right Questions 7 INTELLECTUAL PROPERTY Common Law Trademark vs. Federally Registered Trademark 4 FIRM & ATTORNEY NEWS Awards and Recognitions EMPLOYMENT & LABOR City of Cincinnati Adopts Salary History Ban NON-PROFIT Sales Tax Lifted From KY Nonprofit Fundraising

Transcript of DBL Law Announces New Managing Partner€¦ · DBL Law Announces New Managing Partner A report on...

Page 1: DBL Law Announces New Managing Partner€¦ · DBL Law Announces New Managing Partner A report on emerging legal trends from the attorneys of DBL Law DBL Law Announces New Managing

DBL Law has named Robert (Bob) Hoffer as its new Managing Partner. He succeeds James Dressman III who held the Managing Partner position from 2012 thru Feb. 2019. Hoffer joined DBL Law in October 1978. His employment law practice covers issues impacting employers on a daily basis, including compliance with state and federal employment laws. He has represented employers of all sizes, including some of the largest in Kentucky and the Greater Cincinnati area, and has represented hospitals and physicians for over 30 years on employment and medical negligence issues.

Bob was recognized by Kenton County Fiscal Court as a 2018 Pioneer Award honoree for his outstanding community leadership and demonstration of the highest standards of personal integrity. He was selected to Super Lawyers for 2013-2019 and was named the 2012 Distinguished Lawyer of the Year by the Northern Kentucky Bar Association. The Dan Beard Council, Boy Scouts of America, presented Hoffer with the Trailblazer Award in 2015. He was recognized by Covington Catholic High School as the Northern Kentuckian of the Year in 2012. The Northern Kentucky Chamber of Commerce awarded Bob the Leader of Distinction Award in 2009.

Bob is a graduate of Covington Latin School (1972), Xavier University (1976) and Northern Kentucky University Chase College of Law (1980). He is chair of the St. Elizabeth Healthcare Foundation and a member of the St. Elizabeth Healthcare Board of Trustees. Bob and his wife Diane reside in Fort Mitchell, KY. They have four children and four grandchildren.

Jim Dressman will remain an active DBL Law partner, representing profit and nonprofit entities and organizations in financial transactions, business mergers and asset acquisitions and sales, real estate acquisitions, and simple and complex development projects. Jim also provides guidance for entity structuring, reorganization and employee buy/sell arrangements and management and owner succession, and advises clients with general business and tax matters, estate planning and probate matters.

The Practice of Excellence

2 ADMINISTRATIVECompliance with State and FederalLaws is Key After Hemp Legalization

1 FIRM & ATTORNEY NEWSDBL Law Announces New Managing Partner

A report on emerging legal trends from the attorneys of DBL Law

DBL Law Announces New Managing Partner

Spring 2019

DRESSMAN BENZINGER LAVELLE pscCrestview Hills: (859) 341-1881 Cincinnati: (513) 241-4110Louisville: (502) 572-2500

THIS IS AN ADVERTISEMENTOther attorneys may provide services advertised in this newsletter

3 EMPLOYMENT & LABORDepartment of Labor Proposes to Raise Salary to Make More Workers Eligible For Overtime

REAL ESTATEElectronic Signatures: Be Careful WhatYou Agree to

A report on emerging legal trends from the attorneys of DBL Law

6 EXCEL TITLECovered or Not: How Title Insurance Can Protect Your Real Estate Investment

© 2019 Dressman Benzinger LaVelle psc. All Rights Reserved. EXCELLENCE is a publication of Dressman Benzinger LaVelle psc. The contents are intended to provide information of general interest and should not be construed as legal advice. Questions about individual situations should be discussed with the attorney of your choice.

@DBLLAWDBLLAW.com

8 EMPLOYMENT & LABORMandatory Workplace Arbitration GetsGreen Light from Kentucky Legislature

5 EMPLOYMENT & LABOREPL Insurance -- Make Sure You Ask The Right Questions

7 INTELLECTUAL PROPERTYCommon Law Trademark vs.Federally Registered Trademark

4 FIRM & ATTORNEY NEWSAwards and Recognitions

EMPLOYMENT & LABORCity of Cincinnati Adopts Salary History Ban

NON-PROFITSales Tax Lifted From KY Nonprofit Fundraising

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by Mitchel T. Denham

[email protected]

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The Agricultural Improvement Act of 2018 (commonly referred to as “the Farm Bill”) legalized and regulated industrial hemp across the nation. Even with this new “legalization” there remains a patchwork of state and federal law which apply to both growing and processing this new crop.

Kentucky is ahead of the curve. The Kentucky Department of Agriculture (KDA) implemented the Industrial Hemp Pilot Project in 2014 and it has since grown exponentially. In 2015, the KDA approved 1,742 acres planted. That number is set to skyrocket to 42,000 approved acres for 2019. KDA filed its application for approval the same day the Farm Bill was signed into law. There is little doubt that it will be granted.

Current regulations require all who grow, handle, or process industrial hemp to be licensed by the KDA and to comply with strict rules related to Tetrahydrocannabinol (THC) testing, handling, and transferring hemp. These regulations and their interplay with federal regulations can be complicated. As a result, many compliance questions abound, but the importance of compliance cannot be understated. Violating the regulations can result in a five year ban from the program. Thus, Kentucky growers, processors, and brokers need to ensure compliance to maintain their licenses and to stay on the right side of law enforcement. Below are a few requirements related to Kentucky laws and regulations.

Know if your product is in the KDA’s Industrial Hemp Program.Out-of-program materials include stripped hemp stalks, dried roots, cannabinoid extracts such as CBD oil, and crushed grain. Any person may transfer or sell these products outside of KDA’s program. But federal law may apply, such as the Food, Drug and Cosmetic Act. Other state laws may also apply. In-program transfers include whole stalks that include the leaf and seed, unprocessed floral material, viable seeds, and rooted hemp plants. Transfers of these materials are required to comply with state and federal law. This includes ensuring that the material is transferred to and from an entity licensed by the KDA or another state’s industrial hemp program.

Grower Specific Requirements. Growers must specify the anticipated amount of acreage, the source of the seed, and the exact GPS coordinates of the growing site. A background check is required along with an application fee. Growers must maintain a crop that is under 0.3% THC and comply with strict testing requirements. When transferring in-program material, the harvested hemp must be accompanied by a copy of the grower’s license and may only be transferred to another entity that is licensed by the KDA or by another state.

Processor and Handler Specific Requirements. The KDA requires applicants for processor’s and handler’s licenses to identify their operations’ location, marketing plan, and what products they intend to produce, in addition to other requirements. Processors and handlers may only purchase hemp from a licensed grower and, may only transfer in-program material to or from other licensed entities.

Additional laws and regulations apply depending on the products being produced. For example, if a processor intends to produce food products, it must comply with the Kentucky Food, Drug, and Cosmetic Act and corresponding regulations. It must also comply with the Food and Drug Administration (“FDA”) laws and regulations.

Marketers and Brokers. It is illegal to market or broker the sale of industrial hemp in Kentucky without a license. Marketing includes efforts to advertise and gather information about the needs or preferences of potential consumers or suppliers. Kentucky permits licensed entities to use “agents.” This term is not defined in the statute, but the KDA has indicated that it will not permit a person to be an agent of multiple licensees. Therefore, an employee or independent contractor of a licensed entity who is not marketing or brokering for any other licensee would likely be considered an agent of the licensee. However, a person or entity cannot broker or market hemp for multiple licensees without their own license.

THC Testing. All persons handling hemp must ensure the THC level is below 0.3% or they risk losing their crop or worse— prosecution by federal, state, or local law enforcement. The KDA has specific testing requirements throughout the growing, harvesting and production process. Testing seeds, pre-harvest testing, and post-harvest testing. If the crop tests above the prohibited level, additional tests are required. The growers or processors usually pay for these tests. Crops not coming into compliance may be burned and potentially referred to law enforcement. Due to the variance in some of the tests, current KDA guidance permits growers to market material falling under a range of 0.4% THC. However, if transferring outside of Kentucky, one must ensure compliance with the destination state’s regulations and THC marketing thresholds.

Conclusion. There are additional compliance considerations too numerous to list. Regulations are subject to rapid and dramatic changes to keep up with this growing industry. To ensure compliance with federal and state law, it is important to get advice from knowledgeable attorneys. This could be the difference between running a profitable industrial hemp business and facing Draconian sanctions such as removal from the program or criminal charges.

DBL Law SPRING 2019

Compliance with State and Federal Laws is Key After Hemp Legalization

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On March 7, 2019, the Department of Labor announced a proposed change to the FLSA regulations that would make more workers eligible for overtime. The DOL is proposing to raise the overtime exemption from $23,700 which was set in 2004 to $35,308. Therefore, most employees who are paid a salary of less than $35,308 ($679 per week) would receive time-and-a-half pay when working more than 40 hours a week.

The DOL believes that the expanded overtime rule will give overtime eligibility to just over one million workers. The DOL indicated that it was seeking a middle ground between a 15- year – old figure that had not kept pace with pay trends and the much higher cap of $47,476 that was sought by President Barack Obama in 2016. The proposed threshold was determined by the same formula as the 2004 rule, based on the 20th percentile of full-time workers in the South, the census region with the lowest overall income.

Pursuant to a press release from the DOL, the proposed change to the regulations is open to a 60-day public comment period and is expected to become effective in January 2020. More information about the proposed rule is available at www.dol.gov/whd/overtime2019. The DOL encourages public comment. Submit comments about the proposed rule electronically at www.regulations.gov. Once the rule is published in the Federal Register, the public will have 60 days to submit comments for those comments to be considered.

The Commonwealth of Kentucky and the State of Ohio have both adopted the Uniform Electronic Transactions Act (“UETA”). See KRS 369.101, et seq. and ORC 1306.01, et seq., respectively. In doing so, both states recognize the validity – and enforceability – of electronic signatures, giving them the same legal effect as manual/handwritten signatures. The convenience of the UETA makes contract execution simpler, so be careful what you agree to.

Under the UETA, an electronic signature is defined as “an electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.” In Kentucky and Ohio, electronically “written” signatures are often typed as “/s/” followed by an individual’s name, e.g., “/s/ John Smith,” but could be established by a simple email or voicemail. Notably, the UETA does not apply to certain transactions absent prior agreement, such as the execution of wills and deeds, for example.

Like manual/handwritten signatures, electronic signatures are only attributable to the person who electronically signed. Proof of electronic signature may be established by a showing of the “efficacy of any security procedure” used in determining the identity of the electronic signatory. As the Supreme Court of Kentucky explained in Sawyer v. Mills, 295 S.W.3d 79, 88 (Ky. 2009), these security procedures should demonstrate an “intent to attach or logically associate the electronic signature to the agreement, that is, an intent to execute the contract.”

Also important to note that the provisions of the UETA setting forth the effectiveness of electronic signatures may be altered by the parties to a transaction. In other words, should the parties wish only to recognize manual/handwritten signatures as effective, they may do so by agreement. Ultimately, the broad language of the UETA makes the statute user-friendly. But be careful what you agree to, because your traditional, blue-ink signature is no longer necessarily required for enforceability.

DBL Law SPRING 2019

Electronic Signatures: Be Careful

What You Agree To

Department of Labor Proposes to Raise Salary to Make More Workers Eligible For Overtime

by Kelly Holden

[email protected]

by Justin Knappick

[email protected]

by Jon Connor

[email protected]

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David Kramer, a partner and Chair of DBL Law's Civil Litigation practice group, has become a Fellow of the American College of Trial Lawyers, one of the premier legal associations in North America.

William (Bill) Brammell has been named a partner in the Louisville office of DBL Law where he practices primarily in the areas of civil and commercial litigation, and white collar criminal defense.

Three DBL Law partners are among the 288 recognized as 2019 Leading Lawyers according to Cincy Magazine. For 14 years, registered lawyers in Southwest Ohio, Northern Kentucky and Southeast Indiana have been invited to submit ballots nominating the best among their colleagues. Results are fact-checked and approved by an advisory board. Self-nominated lawyers are not included. Making the 2019 list from DBL Law by specialty practice area are Jim Dressman, Banking, Christopher Markus, Business Litigation, and Mark Guilfoyle, Employment & Labor.

Partner Jim Dressman has been named one of Cincinnati’s 300 Most Powerful Business Leaders by Cincinnati Magazine.

DBL Law SPRING 2019

Firm & Attorney News more at dbllaw.com/news

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The City of Cincinnati adopted an ordinance prohibiting employers from asking about or relying on prior salary history of prospective employees in setting starting pay. The new law, adopted on March 13, 2019, goes into effect on March 13, 2020. Key provisions under the ordinance will apply to any employers located in the City of Cincinnati who employ at least 15 employees or more within the city.An employer may not: • Inquire about an applicant’s salary history; • Screen job applicants based on their current or prior compensation or their salary history; • Rely on salary history when deciding to offer employment, when determining salary or other compensation, or when negotiating an employment contract, or • Refuse to hire, otherwise disfavor, or retaliate against an applicant for not disclosing her salary history.Employers are allowed to ask whether applicants have salary expectations and may inquire about prior productivity information such as sales and revenue reports. Cincinnati employers should review and update their hiring practices to reflect this new law. For additional guidance on addressing the new law, contact any of our labor and employment attorneys for more information.

by Kelly Holden

[email protected]

City of Cincinnati Adopts Salary History Ban

Andrew Pellino, a partner in DBL Law’s Civil Litigation practice group, has been selected to be a part of the Leadership Kentucky Elevate Class of 2019.

KY Governor Matt Bevin has lifted the burden from thousands of Kentucky nonprofits that have been collecting 6% sales tax for ticket sales and items sold for fundraising purposes. An emergency clause in House Bill 354 enabled the amendment to KRS 139.010 to take effect as soon as the Governor signed it March 26.

“Our nonprofit clients are relieved by this news,” remarked Kelly Holden, DBL Law Nonprofit Group practice leader. “Since the passage of House Bill 487 took effect July 1, 2018, most have been forced to collect additional fees to ensure their fundraising efforts remained viable to those they serve.”

Sales Tax Lifted From KY Nonprofit Fundraising

by Kelly Holden

[email protected]

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Over the last several years there has been a significant increase in the amount of employment claims brought against employers throughout this country. Due to the poten-tial for significant liability exposure, as well as court costs and attorneys’ fees accompanying such claims, employers have explored various ways to protect their businesses and assets.

To address this need, several years ago, the insurance industry introduced Employment Practices Liability (EPL) coverage. There has been dramatic growth in the number of employers who are purchasing EPL insurance, whether through a separate policy or as a rider to a general liability policy. Generally, purchasing EPL insurance is a good business decision and wise investment, but not all plans are created equal. Prior to purchasing EPL coverage, you should ask a number of questions of your insurance agent to ensure that you know what you are purchasing.

Question 1: What is covered?First and foremost, you should ask your agent to delineate exactly the type of claims covered by the EPL policy. Typically, claims filed with the Equal Employment Opportunity Commission, state civil rights agencies, as well as lawsuits filed in state or federal court for discrimination, will be covered under the policy. However, claims for breach of contract, non-compete agreements and wage and hour claims are normally not covered and, therefore, are specifically excluded by the policy. We have seen occasions where clients initially have not clearly understood the terms of their insurance. They faced an unpleasant surprise when an employee later filed a claim that was not covered by the EPL policy. Question 2: What is the deductible?Prior to purchasing EPL coverage, you should also determine the deductible or retention level on the policy. This is the amount of dollars that the employer must expend before the insurance company pays any expenses, and can range from $2,500 to $250,000, depending upon the particular policy. You should also determine whether attorneys’ fees and expenses are credited against the deductible.

The amount of the deductible or retention may make a policy

worthless depending upon the size of the employer and the number of claims that an employer may experience. Many employers with a high retention level do not realize that in addition to paying the premium for the policy, they are also required to pay the retention amount before their insurer is obligated to pay any money in defense of the claim.

Question 3: Can you choose our own attorney/law firm?Another area of concern for many employers is their choice of defense counsel. If you have corporate or employment counsel you would prefer to use to defend claims, it is imperative that you negotiate this with the insurance company prior to the purchase of the policy. Many insurance companies will add a rider to their policy to allow counsel to

be selected by the employer. There are plenty of insurance companies who will let you choose your counsel.

You may need to arrange that your counsel is placed on the insurance company’s panel of attorneys, but this can be negotiated. However, make sure it is specifically negotiated at the purchase of the policy. Otherwise, the insurance company, in most cases, will require that it select the lawyer or law firm and thereby refuse to allow your

counsel for defense of the case. The obvious result is that you will be required to pay the legal fees of the attorney selected by the insurance company up to the amount of your deductible before the insurance company begins paying for such attorney fees.

Question 4: How are claims settled?The final issue which employers should clarify prior to the purchase of policy is who has the right to settle claims. Some policies give exclusive claim settlement rights to the insurance company. In these instances, a claim may be settled without your authorization. This can be particularly problematic due to the impact it may have on the remaining workforce.

ConclusionAlthough, for many employers, EPL insurance has proven to be a wise business decision, it is vital to ask insurance agents the right questions prior to purchasing such coverage. By doing so, you can be assured that your policy coverage not only meets your expectations, but also the needs of your business.

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DBL Law SPRING 2019

EPL Insurance -- Make Sure You

Ask The Right Questionsby Kelly Holden

[email protected]

by Bob Hoffer

[email protected]

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Your real estate purchase is quite possibly one of the largest deals you’ll ever make. Unfortunately a thorough title exam doesn’t always guarantee a smooth transaction. A routine title examination assumes that the documents in public record are properly executed and that there isn’t anything in the record that could stand in the way of your dream. But there are a number of hidden hazards that you must be aware of—hidden hazards that may have occurred prior to your purchase. The only way to properly cover your bases: obtain adequate title insurance. Securing title insurance protects your interests, avoiding claims against your title and insulating you against loss.

So what kinds of real estate nightmares are you protected from?

Chain of title issuesWhen property is transferred in a transaction, a chain of title is created. But there may be a number of issues that can compromise this chain. Forgery and fraud may occur, jeopardizing your title. You may be given title by someone who doesn’t actually own the property. Or you may be sold a property from someone who doesn’t have the legal power of attorney to do so. Deliberate or not, issues with chain of title can significantly trip up your real estate venture. Title insurance will make sure the title gets perfected or at the very least make sure you are adequately compensated. Unknown heirsIn your purchase of a 100-acre farm for commercial real estate development, you probably didn’t realize a long-lost cousin was going to surface with a legal note. He claims he already owns 40 acres of your land. When problems like this arise, the title insurer may compensate you for your loss.

Adverse possessionAdverse possession rights can cause you a real estate nightmare. For example, you may purchase a property, have it surveyed, only to discover that your neighbor has taken over a corner of what you believe is legally yours. If the neighbor claims adverse possession and wins, what is your recourse? With adequate title insurance, you can make a claim against your insurance and be compensated for your loss.

Lien claimsWhat happens when you believe a prior lender was paid off, but they really weren’t? Or if your new construction project has massive mechanic’s liens you were unaware of? If these and other undiscovered liens crop up outside of the title examination, the expense of resolving these will be covered by your title insurance.

Other common title issues covered include:• Restrictive covenants• Human errors in public records processing and recording• Lack of legal right of access to/from the land• Local recordings that are not filed

Not CoveredThough title insurance covers a number of hidden

hazards, anything you would have known from a review of public records is not covered. These non-covered items include: • Deeds and wills with improper wording/ incorrect names • Mortgage(s) that is not released • Easements and utility issues • Back taxes that have not been paid • Legal action that is pending against the property • Exceptions noted on the policy

The good news: you can identify these exclusions and negotiate with the title insurer to try and obtain coverage to protect your interests.

The bottom line is that title insurance is critical to keeping your real estate interests in check. If something that historically occurred tries to erode your investment, your title insurance policy will protect you from devastating loss.

Covered or Not: How Title Insurance Can

Protect Your Real Estate Investmentby Patrick Hughes

[email protected]

DBL Law SPRING 2019

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by Mickey Sutton

[email protected]

DBL Law SPRING 2019

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What is a Trademark?

A trademark is any word, name, phrase, symbol, logo, design, or any combination thereof, used in commerce to identify and distinguish the goods or services of a business from those of another which indicates the source of the goods or services. In short, trademarks are used to signify the distinctiveness or source of a good or service.

How does a trademark differ from a trade name?

Simply put, a trade name is the official name under which a company does business. It is also known as a “doing business as” name, assumed name, or fictitious name. A trade name does not afford any brand name protection or provide you with unlimited rights for the use of that name. The trade name identifies the business while a trademark distinguishes and identifies the source of the goods or services of that business. When one secures a trade name, for example, by registering that name with the office of its secretary of state, that filing will prevent the office of the secretary of state from issuing the same trade name filing to another entity, however, importantly, such a trade name filing does not prevent another entity from using such a name, nor does it safeguard that company from any potential claim that such a trade name infringes on another’s trademark.

When Do Common-Law Rights Begin?

Common-law trademark rights begin when a mark is used in connection with goods/services provided in intrastate or interstate commerce. Subject to exceptions, common-law rights exist with respect to: (a) the goods/services with which a mark is used, (b) the geographical area in which a mark is used, plus (c) any natural zone of expansion, which is customarily determined by weighing the following factors: (a) How great is the distance from the user’s present geographical territory to the edge of the alleged zone of geographical expansion? (b) Does the user already have a large or small zone of use of the mark? (c) Is the mark already associated with the user in the alleged zone of geographical expansion? (d) What is the history of the user’s past geographical expansion?

Rights Granted by Common Law.

If a common-law user is the first to use a mark (such a user is called the “senior user”) within a given geographical area, which may be as small as a few square blocks or as large as the entire U.S., the senior user has rights superior to junior users that: (1) use the same or a confusingly similar mark as the senior user, (2) provide the same or confusingly similar goods/services as the senior user, and (3) are within the same geographical

area as the senior user, or within any natural zone of expansion of the senior user. A junior user may use the same mark on the same goods/services outside of the senior user’s geographical area (plus any natural zone of expansion of the senior user), and can then be the senior user in its respective geographical area, if the junior user adopted the mark without knowledge of the senior user.

Why Register with the USPTO?

There are many benefits to federally registering a trademark, one of the most important being that it empowers the United States Patent and Trademark Office (“USPTO”) to police the mark by rejecting subsequent applications to register marks that conflict with the registered mark. A federal trademark registration also confers many benefits also not available at common law, including that it: (1) provides constructive notice of the registration as of the filing date of the application, which eliminates any allegation of good faith adoption of the mark after the application filing date, (2) creates a presumption of the mark’s (i) validity, and (ii) the owner’s nationwide, exclusive right to use the mark, (3) can become incontestable, subject to some exceptions, (4) permits you to legally use the official “registered” symbol with your mark. (5) permits owner to file a lawsuit in federal court to enforce a federal trademark; (6) permits an owner to file with U.S. customs to stop the importation of goods that are likely to be confused with that owner’s goods. For example, if one has a valid trademark for a brand of purses and someone else manufactures similar purses in China and tries to sell them under the registered trademark or one that is confusingly similar, U.S. Customs will stop the importation of those purses before they even hit the market.

Does Another User’s Federal Registration of a Mark Trump Another Prior User’s Common Law Rights?

Not necessarily. A federal registration of a trademark less than five years old is not eligible for “incontestable” status, but is prima facie evidence of the registrant’s exclusive nationwide right to use the mark for the goods or services for which it is registered. A prior user with only common law trademark rights can defeat the presumption, however, for any territory in which it can show that it (1) used the mark prior to the registrant’s date of filing and (2) acquired common law rights as a result of its use of the mark prior to the registrant’s use in that territory. Some decisions recognize that the preempted territory also includes the prior user’s “zone of natural expansion.” Because registration acts as nationwide constructive notice of use of the mark under Section 22 of the Trademark Act, the prior user can establish rights only in those territories in which it was operating prior to the registration date.

Common Law Trademark vs. Federally Registered Trademark

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The Practice of Excellence

Mandatory Workplace Arbitration Gets Green Light from Kentucky Legislature

ADVERTISING MATERIAL

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Thomas More Park 207 Thomas More ParkwayCrestview Hills, Kentucky 41017

Atrium Two, Suite 2500221 East 4th StreetCincinnati, Ohio 45202

2100 Waterfront Plaza321 West Main StreetLouisville, Kentucky 40202

DBL Law SPRING 2019

by Steve Burke

[email protected]

The recently-concluded Kentucky General Assembly gave a boost to businesses that want employees to sign mandatory arbitration agreements.

In 2018, the Kentucky Supreme Court had ruled that such agreements violated state statute. However, Senate Bill 7, which has been signed into law by Gov. Matt Bevin,amends Kentucky Law (KRS 336.700) to explicitly state that employers CAN require current or prospective employees to arbitrate or mediate disputes, instead of taking them to a court of law.

The new statute prohibits employers from forcing employees to waive basic contracutal rights or causes of action under federal or state law. It also will not replace or invalidate the terms of any collective bargaining agreement. However, employers have the option of requiring:

• An agreement for abitration, mediation or other form of alternative dispute resolution as a condition or pre-condition of employment.

• A former employee to waive an existing claim as a condition or precondition for rehiring.

• A current or prospective employee to sign an agreement reducing the lawful time for bringing certain employment claims, with some exceptions including a limit of 50 percent reduction.

• Consent to a background check or similar type of personal report.

The law preserves safeguards under the Federal Arbitration Act and/or the Kentucky Rules of Civil Procedure. Arbitrators also must disqualify themselves if they have a conflict of interest.

If you have a question about a particular policy, please contact a member of the DBL Law employment team.

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