Archive for July, 2013

Mitsubishi Allegedly Violates Contract with Southern California Edison

In 2012, nuclear plant Southern California Edison located in San Onofre was shut down following a radioactive leak, which SCE attributes to allegedly faulty steam generators supplied by Mitsubishi Heavy Industries.  SCE generated power for approximately 1.4 million homes in California, and has since announced that the nuclear plant will not reopen.

Southern California Edison has taken legal action against Mitsubishi, claiming the company violated its contract; SCE also alleges gross negligence in the design and repair of the steam generators.  SCE states in its claim that the steam generators have a 20-year warranty, and that after only one year of use one of the generators leaked a small amount of what was described as ‘radioactive coolant.’  Mitsubishi calls the claims against their company ‘legally unsound’ and ‘inappropriate.’

In a notice of dispute filed against Mitsubishi, SCE claims that equipment was not sufficiently tested, and that the leak was due to Mitsubishi not designing a system for prevention of premature wear.  Enormous harm to California power customers was also alleged by an SCE spokesperson.  According to news articles, if Mitsubishi fails to respond to SCEs claim within 90 days, the companies may settle the contract dispute through arbitration.

Spokeswoman for SCE Maureen Brown said that Mitsubishi, “did not deliver what they promised,” and that the claim is about gross negligence.  The Japanese heavy equipment manufacturer said that it did not believe its earnings would be impacted by the dispute.

As Los Angeles business attorneys, we are highly capable in contract disputes, as these are some of the most common types of disputes among businesses both small and large.  In all business matters related to contracts, agreements, mergers and acquisitions, intellectual property and more, count on our dedicated team of professionals at Spotora & Associates.

The Influence of Netflix; What Does it Mean for the Future of Television?

There’s no doubt that the popularity of Netflix is growing, considering it is the premier provider of internet-based television and movie content in the United States today. According to news reports, Netflix is focused on developing new original content for viewers. It’s resurrection of some popular television shows that have been dropped by various television networks or cancelled has led to some controversy, however viewers are ecstatic over being able to watch some of the shows they would otherwise not be able to view.

Netflix has not only acquired rights to existing television shows and movies, they have also begun creating their own original content. In fact, the content provider has even created additional seasons for some of those shows and movies that had been dropped or canceled by various networks.

According to Forbes, the tidy little world once enjoyed by big networks and local stations in which there was a level playing field is crumbling, falling victim to digital leakage. Of course Netflix isn’t the only player here, considering YouTube, Apple, Google Fiber, cable companies and even a new breed of start-ups like Fullscreen and Maker Studios, both in the process of creating their own networks and channels for YouTube.

Ultimately, Netflix now has the power to react directly with audience viewing preferences, developing new episodes when viewers’ favorites are for one reason or another forced off of the television airways. Will this cause a shift in how the networks determine which shows to eliminate, and which to keep on the air? Considering internet-based providers like Netflix may be wrestling over the rights to develop original new content based on the television networks’ original efforts, television networks may be rethinking their decisions.

At Spotora & Associates, we focus on business and entertainment issues including copyrights, acquisitions and mergers, contract agreements, employment, and more. Our Los Angeles business attorneys are ready and capable of meeting all of your business needs.

BottleRock Music Festival Vendors File Suit, Claim Breach of Contract

The 2013 BottleRock music festival was held in Napa on the Expo grounds from May 8 to 12, said to be biggest such event in Napa’s history with an estimated attendance of 120,000.  Even with what seems to be huge success for the financially troubled music festival, numerous vendors are claiming breach of contract, worried that they will not get paid for their services.  Some reports indicate that organizers of the festival owe $2.3 million for vendors’ services.

According to an article at Napa Valley Register, festival organizers Bob Vogt and Gabe Meyers, along with BottleRock, are being sued to the tune of $202,000 by the vendor who provided hand washing stations, fencing, and portable/luxury toilets and restrooms.  The San Jose-based company, United Sites Services, is claiming breach of contract and said in the complaint that their company was to be paid for services upon receipt of invoice.  The complaint goes on to say that United Sites Services has not been paid even after repeated requests.

In addition to the $202,000 reportedly owed to the portable toilet service company, several other vendors have yet to be compensated for their services; designated charities who were promised donations have yet to see them, and $630,000 in wages have not been paid to 142 union workers.  Nearly one month ago, the first lawsuit was filed against the music festival by Bauer’s Intelligent Transportation, a bus company.

BottleRock reportedly still owes compensation to other entities including Napa Valley Expo, the City of Napa, and Landmark Event, a staffing company.  United Sites Services took quick legal action due to the company’s concerns that BottleRock may have little or no money left, and perhaps the company would be able to recover at least a portion of the compensation owed to them.

Business tort litigation can often be the result of numerous breach of contract claims.  Regardless of what side of a claim your company is on, it’s important to have a capable and skilled Los Angeles business litigation attorney in your corner.  Contact the Law Offices of Spotora & Associates for unsurpassed legal guidance and representation.

Trade Secret Theft Made Easier Thanks to Today’s Digital Technology

Not too long ago, the theft of intellectual property involved the actual physical taking of documentation and other paperwork.  Today, rapid advancements in digital technology have made it possible for thieves to steal trade secrets with hardly an effort; all they have to do is download documents onto a flash or thumb drive, a process that takes mere seconds and can be hidden in a pocket or the palm of a hand.

As highly regarded Los Angeles intellectual property attorneys, we know that California businesses now face a much tougher time protecting their private property than in the past, as trade secret theft has become easier for thieves.  Not only that, it seems that the motives for theft of trade secrets has changed.  While competitor jealousy or extortion were once the most common motives for theft of trade secrets, today it’s often done for personal gain, or to supply data to sources overseas.

Recently, charges of trade secret theft were brought against a 36-year-old native Indian who was a former employee of Becton, Dickinson and Co., a med-tech manufacturer.  The ex-employee was allegedly working on a project involving Vystra, an innovative disposable pen used to inject drugs.  The former employee was arrested after leaving Becton, Dickinson and Co., facing criminal charges after the FBI alleged that prior to leaving the firm, he downloaded thousands of files related to the Vystra pen, intending to use the files in India for personal purposes.

If convicted, the former employee could face up to 10 years in prison and fines of up to $250,000.

While this individual is facing criminal charges, in most cases trade secret disputes are handled in civil court.  When a company alleges harm to or theft of intellectual property, it is necessary for the company to demonstrate that the material which is compromised or stolen qualifies as a trade secret.  In other words, that material must give the company a competitive edge or have monetary value.

Today, keeping your company’s business information private isn’t an easy task.  In fact, a large percentage of California business owners engage the support of an attorney to help develop strategies to protect the security of their data, and resolve intellectual property disputes.

Companies in need of a capable and experienced Los Angeles intellectual property lawyer can rely on the professionals at Spotora & Associates.

Registered Your Company’s Trademark with the USPTO? What You Should Know

As experienced Los Angeles business attorneys, we want to make business owners aware of what you should know if you have registered your company’s trademark with the USPTO (United States Patent and Trademark Office).  You may believe this is the end of it, that your name and/or logo is now protected – nothing could be further from the truth.  At the point that you have registered your company’s trademark is when you need to have your business lawyer become more involved.

Business owners enjoy numerous benefits by registering the company on the Federal Principal Register; however, the enforcement of the “rights” you enjoy are largely up to yourself and your Los Angeles business lawyer, who will help you “police” the mark so that others don’t infringe.  Some of the advantages your company will enjoy through registration on the FPR include:

  • ŸYou will have a basis in foreign countries should you desire to obtain registration
  • If another company infringes on your mark, name, or logo, you have the ability to file a lawsuit requesting the person/business to stop; they will also pay for any damages that result due to their unauthorized use of your trademark
  • Others will receive notice of your company’s ownership of the mark
  • A legal presumption is created that the mark is your company’s to use exclusively in regards to specific services and/or goods listed in the trademark registration, and that you own the mark

While the USPTO examining attorney generally works to prevent other companies or individuals from obtaining federal registration of a mark that is the same as your company’s or one that is similar in a way that would be confusing to consumers, ultimately it is up to the business owner to take administrative action if or when you learn that someone else is currently infringing on your trademark, or trying to register a mark the same as or “confusingly similar” to your own.

Essentially, it is up to you and your Los Angeles trademark attorney to ensure that your trademark is properly maintained after being registered with the USPTO.  Contact the Law Office of Spotora & Associates today with any questions you may have about trademarks and registering with the USPTO.