Law and the Business of Furniture
Jerry Cohen Hello. I'm Jerry Cohen and with this blog I'll be providing insight and solutions regarding legal matters affecting the furniture industry, including operational issues, trends, and current and proposed legislation. I’ve worked on the business and legal side of the furniture industry which gives me an unusual perspective on the complexities we face. My firm and I currently counsel furniture manufacturers and national, regional and local retailers with their corporate, commercial and intellectual property transactions, as well as day to day matters. In the course of our work we deal on a regular basis with federal, state and local authorities, attorneys general, financial institutions (such as banks, asset based lenders, hedge funds and private equity); licensors and licensees; the media; sale promoters; creditors and debtors, landlords, and others. Have a comment? Add it to this blog or write to jcohen@homefurnishingslaw.com
What Your Business Should Know About the Affordable Care Act
The bulk of the Affordable Care Act (ACA) kicks in next year, and employers are bracing for the impact that providing the required health care insurance to employees will have on their business. Here are some facts to help you plan ahead.Required Coverage. Businesses with more than 50 "full-time equivalent" employees must offer coverage or be subject to a penalty. Both full time and part... Read More
Comments (0)SIX NEGOTIATING AND DRAFTING TIPS FOR LICENSEES (AND A BONUS)
In an earlier post I provided several tips to help Licensors avoid many common pitfalls. To even the playing field, this post will discuss tips for Licensees. 1. Why Are You Licensing: Know why you're licensing a brand. "Everyone else is doing it" is not a good enough reason because of financial risks and resources required. Are you looking for brand recognition, a new or fresh look to... Read More
Comments (0)7 Negotiating and Drafting Tips for Licensors
It seems that a day doesn't go by without an announcement of another licensing deal. Licensing has become a driving force in the furniture industry, but if licensors want to succeed they need to be mindful of the many pitfalls to avoid. My next post will discuss tips for licensees.1. Defensive Strategies for Low Sales and Royalties: If the licensee markets the product poorly, the licensor will... Read More
Comments (5)U.S. Senator’s Proposed Amendment to the Lacey Act
Many in the furniture industry have commented that, despite the Lacey Act's praiseworthy goal of discouraging illegal logging, the statute can be vague and overreaching. We're familiar with the Gibson Guitar case in which the company may be charged for allegedly violating the Act. In his Huffington Post article titled "Repeal the Lacey Act? Hell No, Make it Stronger," Henry Juszkiewicz,... Read More
Comments (2)LENDING TO A BUSINESS, RELATIVES AND FRIENDS
When lending money, the IRS (and common sense) requires that you follow a few rules. One such rule demands that you charge what the IRS deems to be an adequate interest rate on loans totaling at least $10,000. Failing to charge such an interest rate can trigger "below market loan" rules which may result in gift tax consequences for you and income tax consequences for both you and the bor... Read More
Comments (0)Retailers Beware: 1.8 Million Reasons To Be Careful About Comparison Advertising
To grab the attention of customers that are not in the mood to part with their dollars, many retailers resort to comparison pricing advertisements. This creates pitfalls that retailers should be aware of. Michaels Stores, a large retail chain, recently ran afoul of New York's deceptive advertising statutes and settled the case for $1,800,000. Admittedly, Michael's may have gotten carried away. The... Read More
Comments (2)SOCIAL MEDIA: SOMEONE STOLE MY CONTENT, NOW WHAT?
What's a frustrated author to do? You work hard to create original content for your website, blog or other platform that will resonate with your audience and then learn that someone has ripped you off. Or conversely, you come across someone else's content or photograph that's perfect for your online use -- can you post it? Although the law is still catching up with the internet and social media,... Read More
Comments (5)WHEN TO USE A NON-COMPETE AGREEMENT
There's a place and purpose for Non-Compete Agreements but perhaps not as widely as currently being used. In my view, a non-compete is appropriate for certain officers and management, but not for most staff and salespersons. Here's why (if you would like to see a typical Non-Compete Agreement, email me at the address below). 1. What is it? Just like it sounds, the Non-Compete Agree... Read More
Comments (2)LICENSOR AND LICENSEE DISPUTES – TRADEMARK ISSUES
Licensed furniture collections are all the rave as reported here in Furniture/Today. As these relationships multiply and mature, disputes between licensors and licensees are arising with more frequency. One area ripe for disagreement relates to the licensee's use of the licensed trademark. 1. LICENSOR.(a) Concerns: Licensors are obligated by law to carefully control and police the use of their... Read More
Comments (0)HIRE ACT – Is It Meaningful for the Furniture Industry?
What it is: The “Hiring Incentives to Restore Employment Act” (HIRE), which was recently enacted, provides tax incentives for hiring and retaining employees (it also provides incentives for purchasing equipment and certain business assets). How it works: Employers are exempt from paying the 6.2% Social Security portion of FICA taxes through the end of 2010 for employees that are hired betwe... Read More
Comments (4)HOW AICO PROTECTS ITS DESIGNS FROM INFRINGEMENT
Larry Rinaldi, President of Amini Innovation, Corp. (“AICO”), doesn’t believe in the adage “imitation is the sincerest form of flattery.” Designing product for its clients is a challenging creative process that AICO performs exceptionally well. Rinaldi exclaims, however, that infringement of its designs is distracting, costly and frustrating, which explains why AICO devotes its attention and re... Read More
Comments (1)CIT’S BANKRUPTCY: WHAT YOU NEED TO KNOW (PART 2)
1. Background: Last month we discussed “What CIT Groups’ Bankruptcy Will Mean For You.” Since then, CIT Group Inc. has filed for bankruptcy protection hoping to restructure its debt and remain in business (although dependent on the holding company that has filed for bankruptcy, CIT’s operating subsidiaries remain outside of Chapter 11 and are currently serving customers). If you would lik... Read More
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