Ohio passes new law providing safe harbor to businesses suffering a data breach and amends Ohio law to allow records and contracts secured by blockchain technology

By Ryan Graham on September 7, 2018

Implementing a cybersecurity framework may begin to pay off for companies doing business in Ohio. As anyone following data privacy litigation knows, litigation stemming from data breach incidents can prove to be extraordinarily burdensome and expensive. Ohio is the first state to pass a law that will limit a business’s exposure in data breach litigation if the businesses has voluntarily adopted an identified cybersecurity framework.

In terms of the particulars, Ohio recently passed S.B. 220, which provides an affirmative defense against tort claims to businesses sued by data breach plaintiffs. The law will be codified at R.C. 1354.01–1354.05 and will go into effect on Nov. 2, 2018.

The law will provide a business with a “legal safe harbor” if the business adopts and complies with a “recognized cybersecurity framework.” The act lists a number of qualifying safe harbor cybersecurity frameworks including, but not limited to: Continue Reading

Sixth Circuit finds insurance coverage for phishing losses

By Donna Ruscitti on July 30, 2018

“The risk of loss due to some form of cyberattack should prompt employers to consider insuring against those losses. But, not all cyberinsurance policies are created equal.” Our colleague, Brian Hall, writes in the most recent Employer Law Report blog post which discusses the recent 6^th Circuit case, American Tooling Center, Inc. v. Travelers Casualty and Surety Co. of America.

“When shopping for insurance to cover potential losses due to cyber activity, businesses will need to make sure that they understand exactly what the policy terms mean and what events will trigger coverage under the policy and which will not. In addition, it is important to know what the policy will pay once a triggering event occurs. For instance, will it pay for regulatory fines, the cost of sending data breach notices, the cost of identity theft services for customers, or business interruption?”

Read the full post at Employer Law Report.

Big changes for internet shopping

By Mark Snider on June 22, 2018

On June 21, 2018, the U.S. Supreme Court ruled in Wayfair v. South Dakota that internet and catalogue retailers can be required to collect sales taxes from customers in states where they have no physical presence. In plain English, in most situations, no more tax-free shopping on the internet. Buyers have always technically been required to pay a use tax to their state if no sales tax was collected by the seller. This decision overrules two older decisions that allowed retailers to avoid collecting sales tax on customers outside of its home state and outside other states where the retailer had employees, a store, a warehouse or some other physical presence. This is likely the most significant state and local tax case in 25 years and will have a profound impact on businesses who sell taxable goods or services online. Further, there are implications for mergers and acquisitions and could have a chilling effect when the potential buyer of a company realizes that the target has major sales tax exposure. Continue Reading

UPDATE: All fifty states now have data breach statutes

By Ryan Graham on May 3, 2018

On July 1, 2018, all fifty states will have active data breach statutes that govern the notification process for companies that experience a data loss incident. Alabama and South Dakota both recently passed data breach laws, representing the last two states to enact data breach legislation. As with other data breach statutes, Alabama and South Dakota have imposed slightly different requirements on businesses that experience a breach event, contributing to the increasingly rich tapestry of state laws governing data breaches. Continue Reading

The federal landscape on self-driving cars

By Jill Okun on January 24, 2018

Motivated by the unprecedented spike in automotive fatalities in 2015, mostly caused by human error, the United States Department of Transportation (DOT), through the National Highway Traffic Safety Administration (NHTSA), has embraced self-driving cars as a means to significantly reduce motor vehicle crashes. In so doing, the DOT stands behind developing a regulatory framework which encourages the safe development, testing and deployment of automated vehicles. Because current legislation and policies have not caught up with technology, Congress and the DOT are hoping to create legislation which balances technology and car manufacturers’ freedom to test, evaluate and deploy driverless cars with ascertaining the best ways to operate and govern these vehicles on U.S. roadways.

ADA Website filings show no sign of slowing down

By Bob Morgan on January 9, 2018

Regardless of industry, website accessibility has become an area of focus for ADA litigation. My colleague, Jamie LaPlante, was recently interviewed by the Bristol Herald Courier regarding a filing against Highlands Union Bank in the U.S. District Court in Abingdon, Virginia, where the plaintiff is a blind man from Fairfax county. The case follows a similar fact pattern to the 2017 Florida case against Winn-Dixie where a federal judge ruled the supermarket chain failed to make its website accessible due to the site’s lack of integration with screen reader technology. The last few years have seen an increase in threats of litigation and filings of lawsuits of this nature. We thought it was worth sharing this with you; check out the full article here.

DMCA agent requirements changing by end of year

By Bob Morgan on October 4, 2017

In December 2016, the United States Copyright Office introduced an online registration system and electronically generated directory to replace the office’s old paper-based system and directory for filing DMCA agent information. The office no longer accepts paper designations. To designate an agent, a service provider must register with and use the office’s online system.

While the change to an electronic directory is noteworthy, those with existing DMCA agent registrations (filed to the old, paper-based registry) must submit new DMCA agent filings before the end of 2017. Per the US Copyright Office website, any service provider that has designated an agent with the office prior to Dec. 1, 2016, in order to maintain an active designation with the office, must submit a new designation electronically using the online registration system by Dec. 31, 2017. Any designation not made through the online registration system will expire and become invalid after Dec. 31, 2017. Until then, the copyright office will maintain two directories of designated agents: the directory consisting of paper designations made pursuant to the office’s prior interim regulations which were in effect between Nov. 3, 1998, and Nov. 30, 2016 (the old directory), and the directory consisting of designations made electronically through the online registration system (the new directory). During the transition period, a compliant designation in either the old directory or the new directory will satisfy the service provider’s obligation under 17 USC § 512(c)(2) to designate an agent with the copyright office. During the transition period, to search for a service provider’s most up-to-date designation, begin by using the new directory. The old directory should only be consulted if a service provider has not yet designated an agent in the new directory. Continue Reading

Rivalry in the Athleisure Industry – lululemon and Under Armour battle over criss-cross straps

By Porter Wright on August 16, 2017

Patent infringement lawsuits are rather unusual in the fashion industry in part because design patents are difficult, expensive, and slow to obtain. In an industry that is constantly evolving to keep up with consumer trends, the year+ length of time from application filing to design patent registration is a lifetime. The latest development gaining momentum in the fashion industry is a niche known as “athleisure.” This trend, as suggested by the term, is defined by clothing designed not only for hardcore workouts or athletic activity, but also to be worn in other low impact settings, such as at the workplace, school, or other casual or social settings. Athleisure apparel caters to those, typically women, who want to be comfortable but still want to be trendy.

This athleisure market feeds a growing multibillion dollar industry which increases the demand on big time players to carve out their stake with continuously innovative items.

But what is considered innovative and novel?

Supreme Court holds ban on disparaging trademarks is unconstitutional – a victory for The Slants

By Porter Wright on June 20, 2017

On Monday, June 19, 2017, the Supreme Court released a decision in a high profile trademark case rejecting the Lanham Act’s rule against disparaging trademarks as being facially invalid and unconstitutional.

The Lanham Act, since its enactment in 1946, has contained a provision stating that a trademark should not be refused registration on the principal register unless it “consists of … matter which may disparage or falsely suggest a connection with persons, living or dead, institutions, beliefs, or national symbols, or bring them into contempt, or disrepute.” (See 15 U.S.C. §1052). Since the enactment of the Lanham Act, courts have routinely found that the disparagement rule does not violate the First Amendment because it does not preclude actual use of the mark in commerce nor prevent the establishment of common law trademark rights, but is rather just a bar to federal registration.

‘This could be heaven or this could be hell’ for Hotel California

By Porter Wright on June 9, 2017

Nearly 50 miles south of San Diego in Mexico lies an eleven room hotel which is currently making waves for its name, Hotel California, which is also the name of the Eagles classic single and album. The boutique hotel was originally named Hotel California at its 1950 opening but has since undergone several name changes. Ultimately the original name, Hotel California, was revived sometime after a Canadian couple bought it in 2001.

Although the Baja hotel has been around for over 60 years many of us are more familiar with Hotel California being associated with one of America’s greatest rock bands, the Eagles. Both the song and album, “Hotel California,” have arguably become legendary. The album won the 1977 Grammy Award for record of the year and is one of the best-selling albums of all time.