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18 JulSEC Clarifies Proper Verification Methods for Accredited Investors Under Rule 506(c)

The Securities and Exchange Commission recently released comments that further clarified specific proper verification methods for determining the accredited investor status of prospective purchasers in a Rule 506(c) offering. Recall that the four safe-harbor methods for verifying status are: Verification of the purchaser’s income through IRS forms that report the purchaser’s income Verification of the […]

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15 JulCan Entities Be Accredited Investors?

The answer to that question is yes. The flip side, of course, is that some entities can also not be accredited investors. In addition to the well-known definitions of an individual accredited investor, an entity accredited investor includes: A bank, insurance company, registered investment company, business development company, or small business investment company Employee benefit […]

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08 JulMovement to Eliminate Noncompetes in Massachusetts Makes Compromises

Last week, the Massachusetts State Senate approved a proposal to modify the law regarding noncompete agreements. The bill would, among other things, render all noncompetes with a duration up to six months presumptively reasonable, while all noncompetes longer than six months would be presumptively unreasonable. Noncompetes limited to the geographic area where the employee worked […]

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01 JulIncorporation Does Not Guarantee a Trademark

Entrepreneurs who are interested in protecting their startup’s trademarks should be aware that merely incorporating their company under the name they wish to have as a trademark does not necessarily mean that name is clear for a trademark. When you register a company with the state secretary, all the office is concerned with in regards […]

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24 JunDo You Have a Valid Non-Compete Clause?

The legality of non-compete agreements may be in its last months here in Massachusetts, but for now such agreements are still valid. However, there are two major requirements in order for a non-compete to be valid and enforceable: one, the agreement must be bargained and compensated for; two, the scope of the restrictions must be […]

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03 JunPatent Troll Target Strikes Back — Court Grants First Fee-Shifting Award

Last year, the Supreme Court in Octane Fitness, LLC v. ICON Health & Fitness, Inc. changed the legal standard by which courts could grant fee-shifting in patent infringement cases, or the awarding of the attorneys’ fees of the prevailing party, pursuant to the Patent Act’s fee-shifting provision. Prior to Octane Fitness, the Act permitted courts […]

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30 MayAnti-Patent Troll Bill Tabled by U.S. Senate

Last week, the Senate Judiciary Committee tabled consideration of the Patent Transparency and Improvements Act bill, the Senate version of the House of Representatives’ Innovation Act bill passed six months ago. Committee chairman Senator Patrick Leahy stated that removal of the bill was due to lack of support for a comprehensive deal, and the failure […]

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27 MaySupreme Court Says Failure to Defend Copyright Not Completely Fatal to Infringement Claims

Last week, the Supreme Court issued its opinion in Petrella v. Metro-Goldwyn-Mayer, Inc. (MGM), in a majority opinion held that the doctrine of laches could not operate to bar a claim for copyright infringement that occurred within the Copyright Act’s statute of limitation of three years. As a bit of legal background, the doctrine of […]

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23 MayWill Eliminating Non-Competes in Massachusetts Really Be Effective?

A recent blog post argued that Governor Deval Patrick’s proposal to eliminate non-competes will not have the positive impact on the Massachusetts economy promised by the bill’s name, “An Act to Promote Growth and Opportunity”, and in fact may end up having a negative impact on the Commonwealth. The article points out that non-compete agreements […]

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20 MaySecurities Exemption for Employee Equity Compensation

Even equity compensation given to employees and contractors must be registered under the securities laws unless an exemption to registration can be found. Fortunately, at the federal level the SEC provides such an exemption in the form of Rule 701. Rule 701 permits companies to grant compensatory equity awards, pursuant to a written compensation plan […]

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