Law and Justice

Posts Tagged ‘Laws’

Many states have enacted “mini-I-9” laws. Employers, especially companies that operate in more than one state, must closely monitor their compliance with the employment eligibility and verification laws for each state in which they do business.

The most common regulation states have imposed on businesses in recent years is requiring employers to use the federal E-Verify system to confirm workers’ immigration status and employment eligibility or work authorization, specifically illegal immigrant employment eligibility, work authorization and immigration status.

E-Verify is an Internet-based system operated by Department of Homeland Security (DHS/U.S. Citizenship and Immigration Services (USCIS) in partnership with the Social Security Administration (SSA). E-Verify is currently free to employers and is available in all 50 states. E-Verify provides an automated link to federal databases to help employers determine employment eligibility or work authorization of new hires and the validity of their Social Security numbers.

Employers or “Designated Agents” (e.g., payroll companies) must register online and agree to the terms of participation to use E-Verify. [Registration includes agreeing to the DHS/Immigrations and Customs Enforcement (ICE) Memorandum of Understanding (MOU). A discussion of the ICE E-Verify MOU is outside the scope of this post.]

E-Verify will soon be required of all federal contractors. DHS is now promulgating “final” E-Verify regs. I present an E-Verify overview and update in this post.

(The National Conference of State Legislatures does a remarkable job of monitoring these new developments and I include a variation of their chart and summary of the new state legislation below.)

Review of Relevant State Laws

State Laws Requiring Use of E-Verify

Arizona
Arizona

The Arizona Fair and Legal Employment Act (HB 2779), enacted in 2007, prohibits employers from knowingly hiring unauthorized workers and requires all employers to use the Basic Pilot Program to verify employment eligibility. It establishes substantial penalties and threatens noncompliant employers with suspension and potential revocation of their business licenses. Effective date Jan. 1, 2008.

Colorado
Colorado HB 1343 (signed 6/6/2006) prohibits state agencies from entering into contract agreements with contractors who knowingly employ illegal immigrants and requires prospective contractors to verify legal work status of all employees. The contractor must confirm that the Basic Pilot Program has been used to verify the status of all employees. If the contractor discovers that an illegal alien is employed, the contractor must alert the state agency within 3 days.

Georgia
The Georgia Security and Immigration Compliance Act, SB 529, covered employment, enforcement, and benefits and was signed by the Governor on April 17, 2006. The bill requires public employers, contractors and subcontractors with 500 or more employees to participate in E-Verify for all new employees beginning July 1, 2007. The law is phased in for public employers, contractors and subcontractors with 100 or more employees effective July 1, 2008; and for all employers by July 1, 2009.

Idaho Executive Order
On December 13, 2006, Governor Jim Risch issued an executive order requiring that state agencies participate in the E-Verify system. Also, all workers employed to the state through contractors must also be from companies that have been verified to have eligible employees.

Minnesota Executive Order
Governor Tim Pawlenty issued an executive order on Jan. 7, 2008, stating that all hiring authorities within the executive branch of state government as well as any employer seeking to enter into a state contract worth in excess of $50,000 must participate in the E-Verify program. The Executive Order’s effective date is January 29, 2008.

Mississippi
Mississippi SB2988 (signed 3/17/08) requires public and private employers to participate in E-Verify. The phase-in period is: all government agencies and businesses with more than 250 employees by July 1, 2008; companies with 100 to 250 employees by July 1, 2009; those with 30 to 100 employees by July 1, 2010; and all remaining companies by July 1, 2011. An employer violating the law is subject to the cancellation of public contracts, ineligibility for contracts for up to three years, and loss of business license for up to one year. The law also makes it a felony to accept or perform employment knowing or in reckless disregard of the immigrant’s ineligibility to work, with penalties from one to five years of imprisonment and/or $1,000 to $10,000 in fines.

North Carolina
All state agencies, offices, and universities must use E-Verify, required by SB 1523 in 2006. This applies to employees hired on or after January 1, 2007, except for employees of local education agencies hired on or after March 1, 2007.

Oklahoma
The Oklahoma Taxpayer and Citizen Protection Act of 2007 (HB 1804) addressed multiple issues: transporting and harboring, driver’s licenses, public benefits, law enforcement and employment. It made it a felony to transport or harbor unauthorized immigrants, with exceptions for health or benefits guaranteed by federal law. It requires public employers, contractors and subcontractors to participate in a federal electronic employment verification system and requires income tax withholding for independent contractors who do not have valid Social Security numbers. The law became effective Nov. 1, 2007.

Rhode Island Executive Order
On March 27, 2008,Governor Carcieri issued an executive order requiring executive agencies to use E-Verify; and for all persons and businesses, including grantees, contractors and their subcontractors and vendors to use E-Verify.

Utah
SB 81 was signed into law 3/13/08. The law address multiple issues, including driver’s licenses, law enforcement, harboring and transporting, public benefits and employment. It requires public employers to register and use the Basic Pilot program for new employees; state contractors must use Basic Pilot effective July 1, 2009. The law makes it a Class A misdemeanor to conceal, harbor, transport or shelter undocumented immigrants, though church, charitable and humanitarian assistance groups are exempted.
Encourages the Use of E-Verify (1)

Tennessee
HB 729, signed into law on June 26, 2007 and effective January 1, 2008 states that employers who “knowingly employ, recruit or refer for a fee for employment an illegal alien” are subject to a temporary suspension of their business license; repeat offenders are subject to a one-year suspension. Employers who comply with the requirements of the current I-9 process or who verify new hires through the E-Verify within 14 days of employment are shielded from sanctions.

One State Limits The Use of E-Verify
Illinois
Illinois enacted HB 1744, which bars Illinois companies from enrolling in any Employment Eligibility Verification System until accuracy and timeliness issues are resolved. Illinois also enacted HB 1743, which creates privacy and antidiscrimination protections for workers if employers participating in E-Verify don’t follow the program’s procedures.

State Laws Targeting Employers On Immigration Status

Current Litigation Over State Laws: Federal Pre-emption
Two lawsuits now making their way through the federal court system could restrict states’ ability to continue to crack down on businesses that hire unauthorized workers. One is a court challenge to the 2007 Arizona employer sanctions law filed by a coalition of Arizona trade groups. In February, a federal judge denied the coalition’s request to delay implementation of the law with a temporary restraining order, and the plaintiffs took their case to the U.S. Ninth Circuit Court of Appeals. Oral arguments are scheduled for this summer and a decision is expected in the fall.

Another lawsuit making its way through the federal courts originated last year in Hazleton, PA, where a local ordinance enacted in 2006 denies business permits to employers who hire illegal immigrants and fines landlords who rent to them. In a ruling issued last summer, a federal judge struck down the Hazleton ordinance, saying it treads on federal terrain and violates illegal immigrants’ constitutional right to due process.

The town is appealing the decision, and the case will be heard in the U.S. Third Circuit Court of Appeals this summer. A decision in this case is also expected in the fall.

If the two appellate courts hand down similar rulings; either both upholding the local laws, or both asserting federal authority, the battle over federal preemption could end there. But if the courts hand down opposing decisions – one supporting state authority and the other backing federal preemption – the debate will likely go to the Supreme Court. The consequence: no clear direction for state lawmakers for at least a year or two.

Many legal experts say the bills being passed in state capitals are not constitutional, and many of the new laws are being challenged in court. The U.S. Constitution gives federal law “supremacy” over state statutes. My personal understanding of the fundamental “pre-emption” issue is that the federal laws do not pre-empt these state laws. Frankly, this is a very complex constitutional issue.

The 1986 Immigration Reform and Control Act (IRCA) explicitly prohibits states from imposing sanctions on businesses that hire unauthorized workers. But one phrase in the 1986 law – a seven-word parenthesis allowing states some leeway in the matter of “licenses and similar laws” – has created a contested gray area.

Many states have taken the IRCA parenthesis to mean they have the authority to suspend or revoke the business licenses of employers who hire unauthorized workers. Businesses and many constitutional lawyers disagree.

“You have this complex overlay of statutes and regulations and court cases, and you’ve got this federalism question of what has traditionally been federal power and what the states can do,” Jan Ting, a Temple University law professor, told the Washington Post. “There could not be an area of law that is less clear than this.”

Because states have until recently stayed away from imposing sanctions for immigration violations, federal preemption has rarely been tested and few court precedents exist.

Private Rights of Action
While E-Verify requirements have so far proven the most popular method to deter the hiring of illegal immigrants, some states are beginning to make use of another tool: giving employees a “private right of action.” Oklahoma was the first state to pass such legislation, in 2007, allowing fired U.S. workers to sue their employers if unauthorized workers were subsequently found to be working in their place. Mississippi, Utah and South Carolina followed with similar provisions this year, allowing fired workers to sue if they are then replaced by illegal immigrants. Some say the laws could open businesses to lawsuits if they employ any unauthorized workers, whether or not they have hired them to replace fired legal workers. Other states are expected to adopt this approach next year.

Also still in place are provisions mandating that all businesses in Arizona enroll in E-Verify and allowing prosecutors to investigate anonymous tips made against businesses alleged to be employing unauthorized workers.

State Felony Laws
Companies should also be concerned about a Mississippi law that makes it a felony for illegal immigrants to accept unauthorized employment. Violators are subject to imprisonment from one to five years and fines of between $1,000 and $10,000. And while the measure seemingly applies only to unauthorized workers, if I had clients who do business in Mississippi I would be strongly cautioning them. I have many clients, both individual and business, where the kind employer assists driving the very good employee to work because the employee does not have a valid state driver license because s/he lacks immigration status. In my opinion a business can be prosecuted for aiding and abetting a felony or harboring a felon under this law.

Oklahoma also imposed felony penalties, in 2007 – in that case, against anyone caught transporting, concealing, harboring or sheltering illegal immigrants in any location,
including any building or means of transportation. Utah, Missouri and South Carolina passed similar measures this year, and many fear the provisions could be used against employers who knowingly hire unauthorized workers.

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Nevada Mortgage Laws About Deficiency Judgment

NEVADA MORTGAGE LAWS:
In this session, we are going to discuss in somewhat greater details the Nevada Mortgage Laws and how to handle the looming foreclosure crisis which has state of Nevada in the highest ranks in USA.

NRS 40.430 Action for recovery of debt secured by mortgage or other lien; “action” defined.
Nevada has only One Action Law for the recovery of any debt, or for the enforcement of any right secured by a mortgage or other lien upon real estate. That action must be in accordance with the provisions of NRS 40.430 to 40.459, inclusive. In that action, the judgment must be rendered for the amount found due the plaintiff, and the court, by its decree or judgment, may direct a sale of the encumbered property, or such part thereof as is necessary, and apply the proceeds of the sale as provided in NRS 40.462.

What is One Action Rule of Nevada?
This section must be construed to permit a secured creditor to realize upon the collateral for a debt or other obligation agreed upon by the debtor and creditor when the debt or other obligation was incurred. A sale directed by the court pursuant to subsection 1 must be conducted in the same manner as the sale of real property upon execution, by the sheriff of the county in which the encumbered land is situated, and if the encumbered land is situated in two or more counties, the court shall direct the sheriff of one of the counties to conduct the sale with like proceedings and effect as if the whole of the encumbered land were situated in that county.

What this One Action Rule Does Not Include?
(a) To appoint a receiver for, or obtain possession of, any real or personal collateral for the debt or as provided in NRS 32.015.
(b) To enforce a security interest in, or the assignment of, any rents, issues, profits or other income of any real or personal property.
(c) To enforce a mortgage or other lien upon any real or personal collateral located outside of the State which does not, except as required under the laws of that jurisdiction, result in a personal judgment against the debtor.
(d) For the recovery of damages arising from the commission of a tort, including a recovery under NRS 40.750, or the recovery of any declaratory or equitable relief.
(e) For the exercise of a power of sale pursuant to NRS 107.080.
(f) For the exercise of any right or remedy authorized by chapter 104 of NRS or by the Uniform Commercial Code as enacted in any other state.
(g) For the exercise of any right to set off, or to enforce a pledge in, a deposit account pursuant to a written agreement or pledge.
(h) To draw under a letter of credit.
(i) To enforce an agreement with a surety or guarantor if enforcement of the mortgage or other lien has been automatically stayed pursuant to 11 U.S.C. § 362 or pursuant to an order of a federal bankruptcy court under any other provision of the United States Bankruptcy Code for not less than 120 days following the mailing of notice to the surety or guarantor pursuant to subsection 1 of NRS 107.095.
(j) To collect any debt, or enforce any right, secured by a mortgage or other lien on real property if the property has been sold to a person other than the creditor to satisfy, in whole or in part, a debt or other right secured by a senior mortgage or other senior lien on the property.
(k) Relating to any proceeding in bankruptcy, including the filing of a proof of claim, seeking relief from an automatic stay and any other action to determine the amount or validity of a debt.
(l) For filing a claim pursuant to chapter 147 of NRS or to enforce such a claim which has been disallowed.
(m) Which does not include the collection of the debt or realization of the collateral securing the debt.
(n) Pursuant to NRS 40.507 or 40.508.
(o) Which is exempted from the provisions of this section by specific statute.
(p) To recover costs of suit, costs and expenses of sale, attorneys’ fees and other incidental relief in connection with any action authorized by this subsection.

How Mortgage is Defined Under Nevada Laws?
NRS 40.433 “Mortgage or other lien” defined. A “mortgage or other lien” includes a deed of trust, but does not include a lien which arises pursuant to chapter 108 of NRS, pursuant to an assessment under chapter 116, 117, 119A or 278A of NRS or pursuant to a judgment or decree of any court of competent jurisdiction.

The Judicial Proceedings Are An Affirmative Defense
1. The commencement of or participation in a judicial proceeding in violation of NRS 40.430 does not forfeit any of the rights of a secured creditor in any real or personal collateral, or impair the ability of the creditor to realize upon any real or personal collateral, if the judicial proceeding is:
(a) Stayed or dismissed before entry of a final judgment; or
(b) Converted into an action which does not violate NRS 40.430.
2. If the provisions of NRS 40.430 are timely interposed as an affirmative defense in such a judicial proceeding, upon the motion of any party to the proceeding the court shall:
(a) Dismiss the proceeding without prejudice; or
(b) Grant a continuance and order the amendment of the pleadings to convert the proceeding into an action which does not violate NRS 40.430.
3. The failure to interpose, before the entry of a final judgment, the provisions of NRS 40.430 as an affirmative defense in such a proceeding waives the defense in that proceeding. Such a failure does not affect the validity of the final judgment, but entry of the final judgment releases and discharges the mortgage or other lien.
4. As used in this section, “final judgment” means a judgment which imposes personal liability on the debtor for the payment of money and which may be appealed under the Nevada Rules of Appellate Procedure.

How Surplus Money is Distributed?
NRS 40.440 Disposition of surplus money. If there is surplus money remaining after payment of the amount due on the mortgage or other lien, with costs, the court may cause the same to be paid to the person entitled to it pursuant to NRS 40.462, and in the meantime may direct it to be deposited in court.
FORECLOSURE SALES AND DEFICIENCY JUDGMENTS
I have been asked about deficiency judgment many times. In Nevada, the time period for filing a deficiency judgment by your lender is only 6 months. However, they can file this deficiency judgment and can enforce it later against you. I have been asked frequently about the laws of deficiency judgment in Nevada. This is a concise summary of all of the laws of deficiency judgment. Please read carefully and seek the help of a licensed attorney before doing anything or filing any action.

What is an Indebteness?
NRS 40.451 “Indebtedness” defined. “indebtedness” means the principal balance of the obligation secured by a mortgage or other lien on real property, together with all interest accrued and unpaid prior to the time of foreclosure sale, all costs and fees of such a sale, all advances made with respect to the property by the beneficiary, and all other amounts secured by the mortgage or other lien on the real property in favor of the person seeking the deficiency judgment. Such amount constituting a lien is limited to the amount of the consideration paid by the lienholder.

NRS 40.453 Waiver of rights in documents relating to sale of real property against public policy and unenforceable; exception. Except as otherwise provided in NRS 40.495:
1. It is hereby declared by the Legislature to be against public policy for any document relating to the sale of real property to contain any provision whereby a mortgagor or the grantor of a deed of trust or a guarantor or surety of the indebtedness secured thereby, waives any right secured to him by the laws of this state.
2. A court shall not enforce any such provision.

How Deficiency Judgment is Awarded?
NRS 40.455 Deficiency judgment: Award to judgment creditor or beneficiary of deed of trust.
1. Upon application of the judgment creditor or the beneficiary of the deed of trust within 6 months after the date of the foreclosure sale or the trustee’s sale held pursuant to NRS 107.080, respectively, and after the required hearing, the court shall award a deficiency judgment to the judgment creditor or the beneficiary of the deed of trust if it appears from the sheriff’s return or the recital of consideration in the trustee’s deed that there is a deficiency of the proceeds of the sale and a balance remaining due to the judgment creditor or the beneficiary of the deed of trust, respectively.
2. If the indebtedness is secured by more than one parcel of real property, more than one interest in the real property or more than one mortgage or deed of trust, the 6-month period begins to run after the date of the foreclosure sale or trustee’s sale of the last parcel or other interest in the real property securing the indebtedness, but in no event may the application be filed more than 2 years after the initial foreclosure sale or trustee’s sale.

What is the Procedure for a Hearing of a Deficiency Judgment in Nevada? NRS 40.457 1. Before awarding a deficiency judgment under NRS 40.455, the court shall hold a hearing and shall take evidence presented by either party concerning the fair market value of the property sold as of the date of foreclosure sale or trustee’s sale. Notice of such hearing shall be served upon all defendants who have appeared in the action and against whom a deficiency judgment is sought, or upon their attorneys of record, at least 15 days before the date set for hearing.
2. Upon application of any party made at least 10 days before the date set for the hearing the court shall, or upon its own motion the court may, appoint an appraiser to appraise the property sold as of the date of foreclosure sale or trustee’s sale. Such appraiser shall file with the clerk his appraisal, which is admissible in evidence. The appraiser shall take an oath that he has truly, honestly and impartially appraised the property to the best of his knowledge and ability. Any appraiser so appointed may be called and examined as a witness by any party or by the court. The court shall fix a reasonable compensation for the appraiser, but his fee shall not exceed similar fees for similar services in the county where the encumbered land is situated.
NRS 40.459 Limitations on amount of money judgment. After the hearing, the court shall award a money judgment against the debtor, guarantor or surety who is personally liable for the debt. The court shall not render judgment for more than:
1. The amount by which the amount of the indebtedness which was secured exceeds the fair market value of the property sold at the time of the sale, with interest from the date of the sale; or
2. The amount which is the difference between the amount for which the property was actually sold and the amount of the indebtedness which was secured, with interest from the date of sale, whichever is the lesser amount.
NRS 40.462 Distribution of proceeds of foreclosure sale.
1. Except as otherwise provided by specific statute, this section governs the distribution of the proceeds of a foreclosure sale. The provisions of NRS 40.455, 40.457 and 40.459 do not affect the right to receive those proceeds, which vests at the time of the foreclosure sale. The purchase of any interest in the property at the foreclosure sale, and the subsequent disposition of the property, does not affect the right of the purchaser to the distribution of proceeds pursuant to paragraph (c) of subsection 2 of this section, or to obtain a deficiency judgment pursuant to NRS 40.455, 40.457 and 40.459.
2. The proceeds of a foreclosure sale must be distributed in the following order of priority:
(a) Payment of the reasonable expenses of taking possession, maintaining, protecting and leasing the property, the costs and fees of the foreclosure sale, including reasonable trustee’s fees, applicable taxes and the cost of title insurance and, to the extent provided in the legally enforceable terms of the mortgage or lien, any advances, reasonable attorney’s fees and other legal expenses incurred by the foreclosing creditor and the person conducting the foreclosure sale.
(b) Satisfaction of the obligation being enforced by the foreclosure sale.
(c) Satisfaction of obligations secured by any junior mortgages or liens on the property, in their order of priority.
(d) Payment of the balance of the proceeds, if any, to the debtor or his successor in interest.
? If there are conflicting claims to any portion of the proceeds, the person conducting the foreclosure sale is not required to distribute that portion of the proceeds until the validity of the conflicting claims is determined through interpleader or otherwise to his satisfaction.
3. A person who claims a right to receive the proceeds of a foreclosure sale pursuant to paragraph (c) of subsection 2 must, upon the written demand of the person conducting the foreclosure sale, provide:
(a) Proof of the obligation upon which he claims his right to the proceeds; and
(b) Proof of his interest in the mortgage or lien, unless that proof appears in the official records of a county in which the property is located.
? Such a demand is effective upon personal delivery or upon mailing by registered or certified mail, return receipt requested, to the last known address of the claimant. Failure of a claimant to provide the required proof within 15 days after the effective date of the demand waives his right to receive those proceeds.
4. As used in this section, “foreclosure sale” means the sale of real property to enforce an obligation secured by a mortgage or lien on the property, including the exercise of a trustee’s power of sale pursuant to NRS 107.080.
NRS 40.463 Agreement for assistance in recovering proceeds of foreclosure sale due to debtor or successor in interest; requirements for enforceable agreement; fee must be reasonable.
1. Except as otherwise provided in this section, a debtor or his successor in interest may enter into an agreement with a third party that provides for the third party to assist in the recovery of any balance of the proceeds of a foreclosure sale due to the debtor or his successor in interest pursuant to paragraph (d) of subsection 2 of NRS 40.462.
2. An agreement pursuant to subsection 1:
(a) Must:
(1) Be in writing;
(2) Be signed by the debtor or his successor in interest; and
(3) Contain an acknowledgment of the signature of the debtor or his successor in interest by a notary public; and
(b) May not be entered into less than 30 days after the date on which the foreclosure sale was conducted.
3. Any agreement entered into pursuant to this section that does not comply with subsection 2 is void and unenforceable.
4. Any fee charged by a third party for services provided pursuant to an agreement entered into pursuant to this section must be reasonable. A fee that exceeds $2,500, excluding attorney’s fees and costs, is presumed to be unreasonable. A court shall not enforce an obligation to pay any unreasonable fee, but may require a debtor to pay a reasonable fee that is less than the amount set forth in the agreement.
5. A third party may apply to the court for permission to charge a fee that exceeds $2,500. Any third party applying to the court pursuant to this subsection has the burden of establishing to the court that the fee is reasonable.
6. This section does not preclude a debtor or his successor in interest from contesting the reasonableness of any fee set forth in an agreement entered into pursuant to this section.
7. As used in this section:
(a) “Creditor” means a person due an obligation being enforced by a foreclosure sale conducted pursuant to NRS 40.451 to 40.463, inclusive.
(b) “Debtor” means a person, or the successor in interest of a person, who owes an obligation being enforced by a foreclosure sale conducted pursuant to NRS 40.451 to 40.463, inclusive.
(c) “Third party” means a person who is neither the debtor nor the creditor of a particular obligation being enforced by a foreclosure sale conducted pursuant to NRS 40.451 to 40.463, inclusive.

RIGHTS OF GUARANTOR, SURETY OR OBLIGOR IN REAL PROPERTY

NRS 40.465 “Indebtedness” defined. As used in NRS 40.475, 40.485 and 40.495, “indebtedness” means the principal balance of the obligation, together with all accrued and unpaid interest, and those costs, fees, advances and other amounts secured by the mortgage or lien upon real property.
NRS 40.475 Remedy against mortgagor or grantor; assignment of creditor’s rights to guarantor, surety or obligor. Upon full satisfaction by a guarantor, surety or other obligor, other than the mortgagor or grantor of a deed of trust, of the indebtedness secured by a mortgage or lien upon real property, the paying guarantor, surety or other obligor is entitled to enforce every remedy which the creditor then has against the mortgagor or grantor of the mortgage or lien upon real property, and is entitled to an assignment from the creditor of all of the rights which the creditor then has by way of security for the performance of the indebtedness.
NRS 40.485 Interest in proceeds of secured indebtedness upon partial satisfaction of indebtedness. Immediately upon partial satisfaction by a guarantor, surety or other obligor, other than the mortgagor or grantor of a deed of trust, of the indebtedness secured by a mortgage or lien upon real property, the paying guarantor, surety or other obligor automatically, by operation of law and without further action, receives an interest in the proceeds of the indebtedness secured by the mortgage or lien to the extent of the partial satisfaction, subject only to the creditor’s prior right to recover the balance of the indebtedness owed by the mortgagor or grantor.

NRS 40.495 Waiver of rights; separate action to enforce obligation; available defenses.
1. The provisions of NRS 40.475 and 40.485 may be waived by the guarantor, surety or other obligor only after default.
2. Except as otherwise provided in subsection 4, a guarantor, surety or other obligor, other than the mortgagor or grantor of a deed of trust, may waive the provisions of NRS 40.430. If a guarantor, surety or other obligor waives the provisions of NRS 40.430, an action for the enforcement of that person’s obligation to pay, satisfy or purchase all or part of an indebtedness or obligation secured by a mortgage or lien upon real property may be maintained separately and independently from:
(a) An action on the debt;
(b) The exercise of any power of sale;
(c) Any action to foreclose or otherwise enforce a mortgage or lien and the indebtedness or obligations secured thereby; and
(d) Any other proceeding against a mortgagor or grantor of a deed of trust.
3. If the obligee maintains an action to foreclose or otherwise enforce a mortgage or lien and the indebtedness or obligations secured thereby, the guarantor, surety or other obligor may assert any legal or equitable defenses provided pursuant to the provisions of NRS 40.451 to 40.463, inclusive.
4. The provisions of NRS 40.430 may not be waived by a guarantor, surety or other obligor if the mortgage or lien:
(a) Secures an indebtedness for which the principal balance of the obligation was never greater than $500,000;
(b) Secures an indebtedness to a seller of real property for which the obligation was originally extended to the seller for any portion of the purchase price;
(c) Is secured by real property which is used primarily for the production of farm products as of the date the mortgage or lien upon the real property is created; or
(d) Is secured by real property upon which:
(1) The owner maintains his principal residence;
(2) There is not more than one residen

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Surviving in the law field gets tougher from the day one tries to enter the school of law. Getting admission requires fulfilling entire formalities along with earlier creditable basic high school record, clearing the admission test for the law school and even recommendations from people. The same is applicable for business studies a student is required to prove his quantitative skills and efficiency in microcomputers to get admitted. A dedicated and hard work during the courses ensures students with excellent results which in turn to provide better career opportunities.

A law person has various prospects for different types of career that he would like to accept. Depending on his caliber and willingness to work hard a lawyer can decide upon practicing law in an exclusive law firm or he may choose to be an in house lawyer. An exclusive law firm requires an extensive knowledge of one particular area in law where as an in house lawyer is required to deal with entire aspects of legal issues that relate to the particular company in which he is involved.

While undergoing training in one of the law schools a student would learn about different aspects of law like civil law, criminal procedures, constitutional law, contracts, property, professional responsibility, basic federal income taxation, legislative and administrative interpretation and many others. The syllabus is cautiously devised to ensure that students receive exhaustive training to deal with maximum situation in the professional front. Similarly Masters Degree in Business administration imparts education in business for global society, corporate finance, managerial accounting, information resource management, strategic management, master’s project and other similar relevant courses. Anyone pursuing both law and business studies simultaneously has an advantage of studying some courses that are counted towards both degrees and hence a considerable amount of work is reduced for these students.

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The expression, ‘intellectual property’ has come to be internationally recognized as covering mainly two branches, namely; ‘industrial property’ and ‘copyright’. Patents, industrial designs and trade marks used to be considered as different kinds of industrial property. In Bangladesh (during the time of the then British regime), the first legislation of its kind, on copyright was introduced in 1914, which was mainly based on the British Copyright law of 1911. After the independence from Britain new law on copyright was promulgated in 1962. The Copyright Ordinance 1962 has been replaced by the new copyright act of 2000. Now in our country, Copyright law is regulated by the Copyright Act 2000. This is done because of the prevailing situation in Bangladesh and around the world.

 

In case of patent and designs we have law which we inherited from our Colonial ruler. Patent rights are created by statute and governed by the Patent and Designs Act 1911. We have also law related to trademarks and it is regulated by the Trademarks Act 1940.

 

Intellectual property has acquired an internationally recognized character. Now it is regarded as “one of the most important sectors” of international law, having its source in various international conventions. At present, each and every country is trying to shape or reshape their legislature, relating to intellectual property; in the light of those international conventions.

 

The convention establishing the World Intellectual Property Organization (WIPO), concluded in Stockholm on July 14th, 1967, provides that, ‘intellectual property’ shall include rights relating to:

1.            literary, artistic and  scientific works,

2.            performances of performing artists, phonograms and broadcasts,

3.            inventions in all fields of human endeavor,

4.            scientific discoveries,

5.            industrial designs,

6.            trade marks, service marks and commercial names and designations,

7.            protection against unfair competition,  

And all other rights resulting from intellectual activity in the industrial, scientific, literary or artistic fields. (Article 2/VIII) 1

 

Intellectual property protects application of ideas and information that are of commercial value.2

 

By virtue of a number of international conventions such as the, Berne Convention and the Universal Copyright Convention, copyright acquired in one country extends to other countries which are member of these conventions. Other intellectual properties are beginning to acquire the same nature as well.

The principles of intellectual property law are substantially the same in all countries with little variation to meet the national requirements of each of the countries.

Bangladesh, as a least developed country, has also enacted intellectual property law in its national legislature.

 

The Trade Related aspects of Intellectual Property rights (TRIPs) were included as integral part of World Trade Organization (WTO) due to pressure and interest of basically transnational companies and developed countries to ensure maximum profit or interest out of intellectual property in international trade.3 The TRIPs Agreement has been called the most ambitious international intellectual property convention ever attempted. TRIPs agreement has established the protection of intellectual property as a major part of the multinational trading system embodied in the WTO. As one commentator observer, intellectual property is now a key component of this trading system, “the protection of intellectual property is one of the three pillars of the WTO”.4

 

Bangladesh is now enjoying the transitional period that has been fixed by WTO under the light of TRIPs. So, we do not have a clear idea about the relation between intellectual property rights and economical development. But, it is certain that after the expiration of transitional period, Bangladesh will have to face a serious and severe situation because of the weak legal framework relating to intellectual property.

 

Now, in brief, the main features of intellectual property laws are given below:

 

1.      The Patents and Designs Acts, 1911:-

     (Act no. 11 of 1911)

The salient features of our existing Act are as follows;

                          Part-1; of the Patents and Designs Act, 1911; is about of patent. This part starts from section-1 and extends to section-42.

                          Section 2(8) contains the definition of invention; it proceeds as – invention means any manner of new manufacture and includes an improvement and all alleged invention. In sub-section (10) of the same section, provides the explanation of manufacture, “manufacture includes any art, process or manner or producing, preparing or making any article and also any article prepared or produced by manufacturer.”

                          Section-3 of the Act provides about the manner and mode of an application for patent. According to section-3(1); a patent application can be made by any person, whether he is a citizen of Bangladesh or not. An application can be made, alone or jointly with any other person.

                          According to section-4 of the Act; there are some provisions about specification. Wection-4(2) states that, a complete specification must particularly describe and ascertain the nature of the invention and the manner in which the invention is to be performed.

                          Section-10 of the Act, discusses about the topic, “grant and sealing of patent”. According to section-10(1); if there is no opposition of the patent application or, in case of opposition, if the determination is in favor of the grant of a patent, a patent shall, on payment of the prescribed fee, be granted, subject to such conditions if any as the Government thinks expedient, to the applicant, or in the case of a joint application to the applicants jointly, and the Controller shall cause the patent to be sealed with the seal of the Patent Office.

                          Term of patent, is laid down in section-14(1) of the Act. The duration of patent is sixteen years from its date. Section 15 of the Act; also provides rules regarding extension of the term of patent.

                          If any patent has been ceased, owing to the failure of patentee to pay any prescribed fee within the prescribed time, the patentee may apply to the controller in the prescribed manner for an order for the restoration of the patent. Section-16 of the Act deals with the matter, restoration of lapsed patent.

                          Section-22 of the Act contains provisions of “Compulsory Licenses and Revocation”. Both the Govt. and High Court Division are empowered to grant compulsory license or revocation of patent. Any person interested may present a petition to the Govt., alleging that the demand for a patented article in Bangladesh is not being met to an adequate extent and on reasonable terms and praying for the grant of a compulsory license, or in the alternative, for the revocation of the patent.

                          According to section-25 of the Act, if any patented invention or the mode which it is exercised; is mischievous to the state or prejudicial to the public; Govt. can declare the patent, revoked, by notification in the official Gazette.

                          Section-26 of the Act; provides the grounds, on which; a patent can be revoked by the High Court Division. Section-26(2) also provides, who can present a petition for revocation of a patent.

                          Section-30 of the Act; declares that; an innocent infringer of a patent; is exempted from liability or damages for infringement.

                          Part-II of the Act; describes all about ‘Designs’ or industrial designs.  According to section-43(1); any person claiming to be the proprietor of any new or original design not previously published in Bangladesh, can apply to the Controller for the registration of that particular design.

                          According to section-47(1); the proprietor of a registered design, shall subject to the provisions of this Act, have copyright in the design during five years from the date of registration.

                          Section-51(A) of the Act; narrates that, any person interested may present a petition for the cancellation of the registration of a design. Such petition should be presented to the High Court Division.

                          Part-III of the Act; is about, Patent Office and proceedings there at.

                          According to section-59 of the Act; every register kept under this Act shall at any convenient times be open to the inspection of the public, subject to provisions of this Act.

                          Section-65 of the Act; states that, in any proceeding under this Act, the Controller shall have the powers of a Civil Court for the purpose of receiving evidence, administrating oaths, enforcing the attendance of witness compelling the discovery and production of documents, issuing commissions, for the examining of witnesses and awarding costs and such award shall be executable in any Court having jurisdiction as if it were a decree of that Court.5   

 

2. The Trade Marks Act; 1940:

     (Act No. V of 1940)

The basic principles of the Trade marks Act are described below:

            Section-2 of the Trade marks Act contains definitions that are related to this Act. As to, section-2(k); trade mark means a mark used or proposed to be used in relation to goods for the purpose of indicating or so as to indicate a connection in the course of trade between the goods and some person having the right, either as proprietor or as registered user, to use the mark whether with or without any indication of that identity of that person.

            The establishment of Trade marks Registry at Dhaka, appointment of the Registrar and Deputy Registrar are laid down in section-4 of the Act.

            According to section-5 of the Act; the registration of a trade mark, requires distinctiveness. Purpose of such distinctiveness is to distinguish those particular goods from the others, which have similarity in nature.

            Any mark, containing scandalous design; or be likely to hurt the religious susceptibilities of any class of the citizens, or to be contrary to any law for the time being in force or morality is prohibited for registration of that mark. Section-8 of the Act, say so.

            Section-16 of the Act; provides that; when an application for registration of a trade mark has been accepted and either has not been opposed or having been opposed, has been decided in favor of the applicant, the Registrar shall, registers the said trade mark.

            Section-18 of the Act, says that; the registration of a trade mark shall be a period of seven years, and may be renewed from time to time in accordance with the provisions of this section.

            According to section-20 of the Act; no person shall be entitled to institute any proceedings to prevent, or recover damages for the infringement of an unregistered trade mark.

            According to section-46 of the Act; any person aggrieved can apply to the High Court Division or the Registrar, for the cancellation or verification of the registration of a trade mark on the ground of any contravention of, or failure to observe a condition entered on the register in relation there to.

            Chapter-IX of the Act; is specially written down for textile goods.

            Chapter-X of the Act, states the provisions regarding offences and restriction of use of Royal Arms and state emblems.

            According to section-73 of the Act, any suit for the infringement of a trade mark or otherwise relating to any right in the trade mark; shall be instituted to a District Court having jurisdiction to try the suit.6

3.     THE COPYRIGHT ACT; 2000:

  (Act No. 28 of 2000)

A short overview:-

            Section-2 of the Copyright Act; provides all the definitions related to copyright and so on.

            According to Chapter II; section -9, 10 and 11; Copyright Board will consist and the post of Register has made. The board is a quasi-judicial body; while working, it would be deemed as a Civil Court.

            Definition of copyright is laid down in Chapter III; section 14 of the Act. Section 14(2) includes, ‘computer programs’ as a subject to this Act.

            Chapter IV; deals with the ownership of copyright and the rights of the copyright owner. This Chapter starts from section-17; ends to section-23.

            Chapter V of the Act; describes all about the term of different types of copyright. Generally the term extends from the lifetime of the author until sixty years from the beginning of the calendar year next following the year in which the author dies; is at section-22. The section also provides that, copyright shall subsist in any literary, dramatic, musical or artistic work (other than a photograph). Section-25 to section-32 of the Act narrates the duration of copyright for different types. For instance, posthumous work, cinematograph films, sound recordings, photograph, anonymous and pseudonymous works, Govt. works, work of any local body, work of international organizations.

            Section-50 of the Act; deals with compulsory licenses in works withheld from public.

            Chapter X of the Act is about, registration of copyright.

            Chapter XII; section-71, describes about infringement of copyright and section-72 of the Act; provides acts not to be infringement of copyright.

            Chapter XIV; is about Civil remedies, that are available against infringement of copyright. Exclusively, section-76 of the Act; provides, remedies against such infringement. According to section-81 if the Act; the Court of District Judge, is the Court of first instance of such proceedings.

            Chapter XV of this Act; describes offences and punishment. According to section-82 of the Act; any person who knowingly infringes or abets the infringement of copyright; shall be punishable with imprisonment for a term which shall not be less than six months. But, which may extend to four years and fine which shall not be less than fifty thousand taka but which may extend to Taka two lacks. But; where the infringement has not been made for gain in the course of trade or business; the Court may, adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term of less than six months or a fine of less than fifty thousand taka.

 

            According to section-95 of the Act; an order made by the Registrar is a subject to appeal to Copyright Board. According to section-96; against any order; made by the Board; any aggrieved person, within thirty days of such order can file a petition of appeal to the High Court Division.7

 

PROBLEMES AND INSUFFICIENCY OF THE EXISTING INTELLECTUAL PROPERTY LAWS:

 

PATENTS AND DESIGNS ACT:-

The defects are;-

Like any other national patent system, novelty is an essential requirement of an invention to be patentable under the existing law of our country. But it is clear from the definition of ‘invention’ in section-2(8) of the 1911 Act; the invention to be patentable need not have a commercial pecuniary success. In other words, utility of an invention is not required by this definition. Although lack of utility is a ground for revocation of a patent under section-26(f) of the Act, till now this has not been included in the definition of invention. The 1911 Act makes no difference between patentable and non patentable inventions. Considering the public interest certain items should be kept outside the domain of patent protection. Since under the existing law no item has been excluded from the domain of patent protection, any type of new invention may obtain patent protection although it should not be patentable for the greater interest of the public at large. Under the existing law, the application for a patent must contain a declaration that the applicant is the true and first inventor or the assignor or legal representative of such inventor. But the term, “true and first inventor” is left undefined. Thus any person importing an invention for the first time into Bangladesh or any person to whom an invention is first communicated from outside Bangladesh can claim to be the “true and first inventor” of that invention and thus, can take the advantage of the vagueness of the term. Here; a fact should be added that, such practice already has begun. Some pharmaceutical companies don’t having any research and develop cell, importing some drugs, and by claiming patent, under the ambiguity of the Act, getting patent. A statistic says that, at the 1st and 2nd week of March, 2006; on an average, 40 patents were granted by the patent office, in each week. Thus, the local producers are forced to remain non productive on that particular patented items. The standard of examination varies from country to country. In some countries like Netherlands, Germany, U.S.A. and Japan it is rigorously involving an extensive search for both novelty and obviousness among documents published in many countries, over a period of many years. But according to our existing patent law; examination is less rigorous involving for novelty only, and the extent of search is restricted. Term of patent protection shall, as laid down in section-14, be sixteen years from its date. But the term is not sufficient enough for the exploitation of the patent right. What constitutes infringement of patent isn’t defined in the Patents and Designs Act, 1911. Section-29(1) of the Act only says that, the patentee has a right to sue against the infringer during the continuance of the patent acquired by him. Section-30 of the Act says that, a patentee shall not be entitled to damages against an innocent infringer. But, ignorance of law is no defense. The infringer should pay for the project as compensation of damages. Under the existing law any process or manner of producing, preparing or making an article in patentable as appears from section-2 (8) read with section-2(16). But, the 1911 Act does not confer upon the patentee the exclusive right to exercise the process. The 1911 Act contains provisions regarding compulsory licenses of patent rights but the terms and conditions of conditions of compulsory licenses are not detailed in the Act.

 

TRADE MARKS ACT:-

1.            Section-22(3) of Trade Marks Act defined infringement in a very narrow sense though the act has provisions against infringement.

2.            Although Chapter X of the Act, describes about offences and restrictions of use of Royal Arms and state emblems but this chapter does not extends to the infringement of any registered trademark. Any deceptive use of any registered trademark; is not also included in this chapter.

3.            There is no provision for protection of internationally recognized trademark in our existing Trademark Act 1940.

 

COPYRIGHT ACT:- 

Our existing copyright law has been enacted in line with the copyright law of India. It has been enacted to cope with the prevailing international set up of copyright system. So, preventive measures have been adopted to tackle the future complications in copyright sector.

 

 

NECESSARY PROPOSAL FOR REFORMATIONS: The term ‘intellectual property’ is still at its nascent stage in our country and people are not aware of the concept and importance of intellectual property. But, in international arena, the concept and coverage of intellectual property is growing so fast than any other brunches of law. We have intellectual property laws but these laws are not sufficient to tackle the challenges that are imminent and threatening us. Keeping in mind the Trade Related Aspects of Intellectual Property Rights (TRIPs) agreement and other relevant conventions the following reformation proposals can be made:

 

Reformations of the Patents and Designs act:

ü      The Patent and Designs Act, 1911 should be revised thoroughly.

ü      Essential requirements of patentable invention should be described clearly and there must be a clear distinction between patentable and non patentable inventions.

ü      The standard of examining a patent application should be made more effective.

ü      Term of patent protection shall, as laid down in section 14, be 16 years from its date. But the term should be extended to 20 years for patent and the term of a design, according to sec – 47(1) is 5 years from the date of registration, should be extended to 10 years.

ü      Existing Act does not have any definition of infringement, it should be included.

ü      The part of “designs;” have some confusing words, as in that part the term, “copyright” has frequently used. But it may create confusion. Such confusion should be effaced.

ü      The Act does not have anything to do about the protection “Geographical indication” which could result a huge loss of losing our culture & heritage. So, it should be included.

ü      Provisions relevant to PARIS convention should be incorporated.

ü      The administrative provisions and complications should be avoided. The complications should be made more subject to judicial decision.

ü      The provisions of offences and penalties should be revised and reformed with the need of the time.

 

Proposal for reformations of The Trademarks Act:

After studying present Trademark Act and different conventions, it is clear that our existing Trademarks Act 1940 should be amended as well. The following suggestions can be made:

ü      The reformed trademark law should have a wide view about the marks which can be registerable and which marks cannot be.

ü      Infringement of trademark should be defined more accurately. Besides, punishment for infringement should be made stricter.

ü      How will we protect our renowned trademarks in international market and reciprocally how other countries trade marks can enjoy protection in our local market, should be defined in our trademarks act, with an assertive view.

ü      Offences and penalties, in respect of violation of any provisions of this act, should be made more effective and harder.

ü      If any complication or confusion arises in practicing of the act, the judicial body should be involved with more vigilance.

 

Proposed reformations to the copyright law:

The Copyright Act 2000 has been enacted to cover the rules and to cope with the international copyright system. Our existing copyright law has been enacted in line with the copyright law of India. It has been enacted to cope with the prevailing international set up of copyright system. So, preventive measures have been adopted to tackle the future complications in copyright sector. From the face of the Copyright Act 2000, it seems that our copyright law has fulfilled the need of the time.

Though computer programs, tables complications including data base are recognized to have the copyright protection, there is no legal recognition for transaction carried out by means of electronic data or other means ‘e-commerce’ which involves the use of alternativeness to paper based  method of communication and storage of information to facilitate filing of documents with government agencies .

The growing global importance of the cyber law is posing new challenges and in view of the peculiarity involved in the fields, the understanding between the nations of the world by treaties or covenants, may be of considerable importance in the absence of which the implementation of the legislation would be near to impossibility. Our present act should be amended to fulfill the shortage.

 

Finally we can hope that a stronger protection system of the intellectual property rights, a qualified commission to observe the protection and thus policy making options to bring civil remedies for the violation of the rights and finally a complete law regulation in all sectors of intellectual property  rights will surely lead us to a better future.

 

Notes and References:

 

Background reading materials on intellectual property: WIPO (Pp-3, 4).

 

P.Narayanan.(pp-1). TRIPs agreement. John Madely hungry for trudeyzed books UK (2000) pp-96-97. The Patents and Designs Act 1911 The Trade Marks Act 1940 The Copyright Act 2000

 

 

William Allan Kritsonis, PhD

Professor

 

PUBLIC SCHOOL LAW

 EDUCATIONAL LAWS & POLICIES

 

PARENT’S RIGHTS

 

 INTRODUCTION

             Parents are an essential partner in the education of their children.  While constitutional law does not necessarily outline parental rights regarding education, Texas statutory law does.  In fact, in 1995 the Texas Legislature amended the Texas Education Code to include parent rights and responsibilities.  According to Chapter 26 of the Texas Education Code §4.001, “Parents will be full partners with educators in the education of their children (Walsh, Kemerer, & Maniotis, 2007).  The state cannot require all students to attend public schools, thus enabling the parents to right to choose where their children will be educated.  Parents may send their children to public, private, or home schools. 

 

            For the purpose of this report, we will present the case that relates to granting parents the right to choose which institution of learning their children will attend.  The findings are intended to be informative and beneficial in understanding the precedent set forth for parent rights and responsibilities regarding the education of their wards.

 

Case One

 

United States Supreme Court

 

PIERCE

 v.

SOCIETY OF SISTERS

268 U.S. 510

 

LITIGANTS

 

Plaintiffs-Appellants: Walter Pierce, Governor of Oregon

                                    Isaac H. Van Winkle, Attorney General of Oregon

 

Defendant-Appellee: Society of Sisters of the Holy Names of Jesus and Mary

                                    Hill Military Academy

 

BACKGROUND

 

            On November 7, 1922, the voters in Oregon passed an initiative to amend the Compulsory Education Act.  The amendment was aimed at creating a common American culture by eliminating any dogmas that may negatively influence the established norms of American society.  All children between the ages of eight and sixteen were required to attend public school.  Children who were mentally disabled, lived three miles from the nearest road and had already completed the eighth grade were excluded from attending school.  To enforce the law parents who did not send their children to public school were fined and faced 30 days in jail.   The initiative also targeted parochial schools, specifically Catholic schools, because the thought was that such parochial schools hindered assimilation.  Since the Society of Sisters worked with mainly orphaned and disadvantaged children they challenged the fairness of the Act.

 

FACTS

 

            The Society of Sisters was an Oregon corporation, organized in 1880, with power to care for orphans, educate and instruct the youth, establish and maintain academies or schools, and acquire necessary real and personal property. The Society’s bill alleges that the enactment conflicts with the right of parents to choose schools where their children will receive appropriate mental and religious training, the right of the child to influence the parents’ choice of a school, the right of schools and teachers therein to engage in a useful business or profession, and is accordingly repugnant to the Constitution and void. And, further, that, unless enforcement of the measure is enjoined the corporation’s business and property will suffer irreparable injury.

DECISION

 JUSTICE McREYNOLDS delivered the opinion of the Court.

The challenged Act, effective September 1, 1926, requires every parent, guardian or other person having control or charge or custody of a child between eight and sixteen years to send him “to a public school for the period of time a public school shall be held during the current year” in the district where the child resides, and failure so to do is declared a misdemeanor. The manifest purpose is to compel general attendance at public schools by normal children, between eight and sixteen, who have not completed the eighth grade. And without doubt enforcement of the statute would seriously impair, perhaps destroy, the profitable features of appellees’ business and greatly diminish the value of their property.

The Society’s bill alleges that the enactment conflicts with the right of parents to choose schools where their children will receive appropriate mental and religious training, the right of the child to influence the parents’ choice of a school, the right of schools and teachers therein to engage in a useful business or profession, and is accordingly repugnant to the Constitution and void. And, further, that, unless enforcement of the measure is enjoined the corporation’s business and property will suffer irreparable injury.

No question is raised concerning the power of the State reasonably to regulate all schools, to inspect, supervise and examine them, their teachers and pupils; to require that all children of proper age attend some school, that teachers shall be of good moral character and patriotic disposition, that certain studies plainly essential to good citizenship must be taught, and that nothing be taught which is manifestly inimical to the public welfare.

DICTA

Under the doctrine of Meyer v. Nebraska, 262 U.S. 390, we think it entirely plain that the Act of 1922 unreasonably interferes with the liberty of parents and guardians to direct the upbringing and education of children under their control: as often heretofore pointed out, rights guaranteed by the Constitution may not be abridged by legislation which has no reasonable relation to some purpose within the competency of the State. The fundamental theory of liberty upon which all governments in this Union repose excludes any general power of the State to standardize its children by forcing them to accept instruction from public teachers only. The child is not the mere creature of the State; those who nurture him and direct his destiny have the right, coupled with the high duty, to recognize and prepare him for additional obligations.

IMPLICATIONS

            The Society’s suit against Pierce was successful in establishing that the parents and guardians of students had a right to choose their children’s educational setting.  The ruling set the precedent for parents’ right to choose privately run schools and relieved parents from being forced, through penalties, to have their children educated in public schools.

Intellectual property is one of the major types of capital assets. It is usually the result of a human brain’s intellect. It can be either tangible or intangible. Idea, process, and theory are some of the most popular forms of intangible category. Included in the tangible type is product, invention, or any such kind of tangible medium such as discovery, creation, or a specific knowledge.

Based on several factors such as background, intellectual output, dynamic technology, and economic and social interests, intellectual property in Thailand is classified into two sections: Industrial Property and Copyright. Industrial property is again categorized into patent for invention and utility model and design, trade mark, integrated circuit, trade secret, trade name, and appellations of origin.

A member of the World Trade Organization (WTO), Thailand’s each intellectual property is unique and has different requirements. Hence, they possess different legal treatments. All of the laws pertaining to the development, promotion, and protection of them are managed by the Department of Intellectual Property (DIP), which in turn is under the control of the Ministry of Commerce of the Kingdom of Thailand.

Among the responsibilities of the DIP are: protection of intellectual property rights under the Patent laws, the trade marks laws, the law of copyrights, and the trade secrets law; formulating rights for the purpose of the promotion of the creation of new intellectual property works; developing information technology systems; and restructuring and modernizing laws in order to ensure maximum efficiency and protection.

Further, a special court operates here for the protection of intellectual property laws in the Kingdom of Thailand, namely, the IP & IT (Intellectual Property and International Trade) court system. Some of the prominent features of this court system are exclusive jurisdiction on the enforcement of both civil and criminal matters of intellectual property and exclusive jurisdiction on the enforcement of arbitral awards in intellectual property and international trade matters.

Now we will discuss laws related to some of the major types of intellectual property, such as, patent laws, trade marks laws, and copyright laws.

Patent Law

- A patent is usually provided for an invention that is new as well as innovative. In some instances, petty patents are granted for the purpose of the protection of designs

- Al though, Thailand not a member of the Patent Cooperation Treaty (PCT), residents, nationals, and those with ongoing business existence in the country with a membership from the Paris Convention or the World Trade Organization can file for a patent in Thailand. However, the application for patent could be filed only in the country where the product it has been originally invented.

- Among the documents mandatory for filing of patent application are deed of assignment, power of attorney (if required), statement showing applicant’s rights, and applicant’s information

- Procedures included in a standard patent filing include steps like filing of application for patent, publication, request for examination, and the registration of the patent. All of the patent-related documents are translated to the Thai language

- It takes a period ranging 2-5 years from the date of filing for the acquisition of patent. But, the duration of patent registration varies according to the nature of patent, such as, invention, design, and petty

Trademarks

- Collection marks, service marks, and certification marks are some of trademarks that can be registered in Thailand

- Trademarks applications are usually handled by the Trademark Division of the Department of the of Intellectual Property

- For applying for trademark, the applicant must have a permanent business location in the country. A non resident can apply only through a Thai resident by granting him the power of attorney

Copyright Laws

- Copyright is usually for the protection of original works of authors engaged in various art fields, such as, literature, music, and architecture. Apart from these, it also covers works related to other fields such as computer software

A large number of law firms operate in Thailand to provide world-class services for Thai intellectual property related works. Usually, the services in connection with them are offered by local Thai law firms.

Most significant among the services offered by majority of these law firms are protection regarding patents, domain names, trade mark, and copyright registration; intellectual property management covering several aspects like drafting, negotiation, and business support; and investigation regarding patents and copyright. Also, covered in the services are trademark registrations, infringement challenges, compliance and protection of trade secrets, licensing, and providing confidentiality with regard to agreements.

However, before approaching a law firm in Thailand for acquiring intellectual property law services, a thorough investigation must be conducted with regard to its professionalism, reputation, and the way it renders the services. The internet also serves as a great way to hunt for the most suitable Thai law firm, since many of the service providers have their sites on the web with such details as services they render and their fee.

Jan 17th, 2007 –

Bittorrent Tracker ThePirateBay, has recently declared that it will be looking for a new country to operate out of. However, the news here is that ThePirateBay has elected to buy their own country instead of finding one with relaxed copyright laws.

They found SeaLand, a micro-nation who’s sovereignty is in dispute, and launched the website BuySealand.com in order to try to raise funds to purchase it to the tune of 8 digits or more (10 million or more). However, the implication of such an action are clear: “We are the Pirate Bay, and we know what we are doing is illegal, so we are buying our own country to define our own laws”. This is a far cry from their traditional defense of “We are not doing anything illegal”.

The legality debate aside, the fund raising should be an interesting one to watch, with powerful social and ethical consequences if it succeeds.

Consider the implications of ThePirateBay being organically supported by a huge number of Internet users who would rather their money go to the for-profit PirateBay rather than into the hands of the original copyright owners of the video, music, books and software they are ultimately downloading through the PirateBay’s service. The irony is that the same wired folks who are donating money, are the first to blow whistles when it comes to any copyright infringement against apple, web developers, and designers. Ethically, it seems Internet users have severe double standards.

My argument here is simple: We are seeing a trend to where intellectual property rights are decreasing in value, and becoming harder to enforce. This is party due to the widespread prevalence of piracy, but also because of the potential ability of services like the PirateBay to thwart governments and define their own laws.

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