Law Firm News

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Law Firm News

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Marshall, Gerstein & Borun, L.L.P.

MGB Sponsors 2006 NetIP National Conference
Marshall, Gerstein & Borun will be a sponsor at this year’s Network of Indian Professionals of North America (NetIP) National Conference held on September 1-3 at the Chicago Marriott Downtown. In addition, firm partner Nabeela McMillian, will be speaking on a panel entitled “The Future of Healthcare Delivery” on Saturday, September 2 at 1:00 PM.

NetIP is a professional, non-profit organization dedicated to the overall achievement and advancement of South Asian professionals. It has been recognized by political, civic and community leaders around the country as a leading international organization for Indian professionals.

08-18-2006

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Hiscock & Barclay, LLP

"Advanced LLC Issues"
Hiscock & Barclay's Christopher Bonner will be a presenter at the National Business Institute's seminar, ""Advanced LLC Issues"", on August 18, 2006 at the Marx Radisson Syracuse Hotel & Conference Center.

This seminar goes beyond the basics of establishing and operating an LLC, and digs deeper into some of the more complex scenarios arising from LLC ownership and management.

Segments of the program include: Current Updates and Emerging Trends, Advanced Tax Issues for LLCs, Undertstanding the World of Minority Rights and Fiduciary Obligations, Walking the Ethical Line, and Mastering Estate Planning Issues.

08-18-2006

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Wiley, Rein & Fielding, L.L.P.

WRF Partner Comments on Response to Data Security Breaches
Wiley Rein & Fielding Privacy Practice chair Kirk J. Nahra was quoted extensively in a two-part story in the E-Commerce Times on information security threats and remedies for mobile devices. The story, which highlighted WRF’s work related to privacy and security compliance for companies in heavily-regulated industries such as healthcare, insurance and financial services, addressed responses to such threats within the federal government and private business.

Following a recent wave of data security breaches within several branches of the government—including the highly publicized theft of a Veterans Affairs (VA) employee laptop containing names, Social Security numbers and birth dates of up to 26.5 million veterans—the Office of Management and Budget (OMB) issued “Memo M-06-16.” The memo required all government agency heads to perform assessments of all mobile data and remote-access provisions to ensure compliance with existing and new security standards. In the private sector, security companies are exploring solutions to keep pace with the ever-changing demands of mobile device protection—while their clients respond internally to the risk.

While the OMB memo was a quick and decisive response to recent breaches of security, its focus may have been too narrow, said Nahra. “This is a perfect example of both good news and bad news in how the government—and many private companies—react to security issues,” he said. “This memorandum is primarily a reactive step in connection with specific problems that have arisen. In the sense that it is a prompt and aggressive reaction, it is good news. Security programs need to be re-evaluated constantly.”

The bad news is that there wasn’t any overall effort to review security practices or look ahead to other kinds of potential problems,” Nahra continued. “The [Government Accountability Office], for example, has been identifying specific shortcomings with numerous government agencies on information security issues for several years now, without any significant resources being devoted to fixing this problem. It often takes an incident like the VA incident—which was bad an obviously could have been much worse—to prompt action.”

The incidents in question affect not only government agencies, but all companies that rely on mobile devices for data storage. “One of the biggest challenges—particularly on the security front—is to stay abreast of changing circumstances…[and respond] to specific problems that arise,” said Nahra.

For example, there has been a plethora of stories recently about stolen laptops. A responsible company would be reviewing these problems and identifying what changes can be taken in the company’s own dealings with laptops, [such as] increased encryption, reduced storage of data, and harder passwords. Companies need to be re-assessing their security programs on an ongoing basis.

08-18-2006

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Kirkpatrick & Lockhart Preston Gates Ellis LLP

Chinese Ministry of Information Industry Issues New Rules on Foreign Investment in PRC Telecom Industry
The Chinese Ministry of Information Industry (the ""MII""), the telecom industry regulator in China, released a notice on its website on July 26, 2006 entitled Notice on Strengthening Management of Foreign Investment in Value Added Telecom Business (the ""Notice""). The Notice sets out certain detailed rules to regulate foreign investment in the telecom industry and addresses the non-equity cooperation between foreign investors and local license holders. These arrangements have been used in the telecom industry in recent years.

As part of its WTO commitment, the PRC government allows foreign investors to own up to 50% interest in a company operating a commercial website in China (the internet content provider (the ""ICP"")) subject to the approval of the MII. The MII has broad discretionary powers in the approval process. This has led many foreign investors to enter into contractual arrangements with local telecom license holders rather than go through the approval procedure.

The Notice appears to target such arrangements, especially those by foreign investors who directly operate ICP businesses without licenses, by setting out clear requirements on such cooperation. For example, local license holders are not permitted to provide resources, places or facilities to foreign investors directly operating ICP businesses without licenses. The Notice also provides that the domain name and trademark shall be owned by the local telecom license holder or its shareholder. The local telecom bureaus are to review the operations of the existing license holders in their areas and report the results to the MII by November 1, 2006. The MII has also offered to have consultations on its business policies with foreign investors who want to apply for ICP licenses.

Market players and prospective entrants may need to review and change the structure of their existing and proposed cooperation arrangements in order to comply with this Notice. There is still some uncertainty as to how the authorities will implement the new rules. In addition, there are concerns that this latest announcement may signal the beginning of a new round of regulations for foreign investment in the telecom industry.

08-18-2006

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Porter, Wright, Morris & Arthur, L.L.P.

Custer Battles and its principals cleared of fraud allegations
A Federal District Court Judge in Alexandria Virginia has cleared Custer Battles and its two principals, Scott Custer and Mike Battles, of allegations that they defrauded the United States by knowingly and intentionally submitting false claims in connection with services provided to the Coalition Provisional Authority in Iraq.

In an Opinion and Order dated March 16, docketed today, Federal District Court Judge T.S. Ellis set aside a jury verdict and ruled as a matter of law that Scott Custer, Mike Battles, the company they founded, Custer Battles LLC, and its related entities and subsidiaries did not violate the Federal False Claims Act in connection with services provided to the Coalition Provisional Authority in support of its Iraqi Currency Exchange, which was part of the Iraq reconstruction effort. In making this ruling, the Judge set aside a jury verdict and entered judgment for the defendants on claims that they had submitted false claims andfor records to the United States in violation of the Federal False Claims Act. The Judge did permit a jury verdict against Custer Battles, the corporation, with respect to a retaliatory discharge claim. This claim was not asserted against either Mr. Battles or Mr. Custer individually.

David Douglass, trial counsel for Custer Battles, stated ""As we have said all along, the evidence at trial showed that Custer Battles performed the services on the ICE Contract on time, on budget, and to the satisfaction of the Coalition Provisional Authority. There simply was no evidence of fraud or an intent to defraud the CPA nor were any false claims submitted to the United States."" Robert Rhoad, trial
counsel for Custer Battles, stated ""When you strip aside the rhetoric of Relators' counsel, the simple fact of the matter is that Scott Custer and Mike Battles did what they were contracted to do under unimaginably difficult circumstances. The allegations have been very painful to them personally and damaging to Custer Battles financially, and we are pleased for them by this result.

08-18-2006

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McGuireWoods LLP

Skip Fox Teaches Tax Courses at Northwestern University
Skip Fox (Charlottesville) taught eight courses at the ABA National Trust School and ABA National Graduate Trust School at Northwestern University, in Evanston, Ill., July 14-21.

08-18-2006

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Crowell & Moring LLP

“Federal Judge Rules that the Bush Administration’s Wiretapping Program is Illegal”
Crowell & Moring Litigation Group partner and former White House Counsel Beth Nolan speaks to reporter David Kerley about a federal judge's ruling that President Bush has violated the law by allowing warrantless wiretapping.

08-18-2006

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