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California Employers, Forget About Non-Compete Agreements for Your Employees!

Published: September 27, 2023

by Nikki Mahmoudi
The Labor & Employment Law Blog

On September 1, 2023, California Governor Gavin Newsom signed SB 699 into law, which will bolster California’s prohibition of non-compete agreements.

The prohibition of non-compete agreements is not new news. Non-compete agreements were not enforceable prior to SB 699 being signed into law under California Business and Professions Code section 16600. The Code section explains how every contract restraining anyone from engaging in a lawful profession, trade, or business of any kind is void, except under limited statutory exceptions. SB 699, which will be codified as Business and Professions Code section 16600.5 and go into effect on January 1, 2024, reiterates existing law and extends the reach of California’s restriction on non-compete agreements. The new law:

Award-Winning AI Art Not Copyrightable

Published: September 14, 2023

by Jo Dale Carothers, Ph.D.
The IP Law Blog

Last year, Jason M. Allen won first place at the Colorado State Fair (the “Competition”) for the two-dimensional artwork entitled Théâtre D’opéra Spatial (the “Work”), which he produced with the aid of Artificial Intelligence (“AI”). Despite receiving this accolade and Allen’s arguments that he contributed significant creative elements to the AI-generated Work, his attempts to copyright the work have been unsuccessful.

PTO Allows Another Bite at the Apple

Published: August 31, 2023

by Audrey A. Millemann
The IP Law Blog

On July 24, 2023, the United States Patent and Trademark Office changed its procedures for the PTO Director’s review of certain decisions by the Patent Trial and Appeal Board.  The decisions in question are those decisions of the Patent Trial and Appeal Board to deny or grant petitions to institute proceedings under the America Invents Act.  Those proceedings include inter partes review and post grant review.  This change follows two years of an interim process and public comment period.

Social Media Giants and Copyright: Instagram’s Ninth Circuit Win Sets Precedent Against Photographers

Published: August 17, 2023


The IP Law Blog

The Ninth Circuit recently revisited the issue of “embedding” content by a website and its implication for copyright infringement claims. On July 17, 2023, the Ninth Circuit issued its opinion in Hunley v. Instagram, LLC, and affirmed the trial court’s ruling that Instagram, a social media platform, could not face liability for secondary infringement under the “Server Test” because plaintiffs could not prove infringement of their copyrighted photographs since the third-party news platforms had “embedded,” but did not store, the copyrighted photos on their own websites. The Court ultimately reasoned that because the plaintiff posted their photos on Instagram and essentially stored a copy of those images on Instagram’s servers, Instagram did not violate or infringe on the plaintiff’s rights since Instagram had a sublicense to display photos posted onto their platform and the third-party news sites had “embedded” the content in their articles.

California Medi-Cal Enrollment Appeals: An Uphill Battle but an Essential Tool

Published: July 25, 2023

by Jeanne L. Vance
Healthcare Legal Updates

In our practices, we are seeing an increasing number of denials or de facto denials of Medi-Cal provider enrollments. The consequences of a Medi-Cal enrollment denial can be quite serious. First, a provider may not receive reimbursement for services provided to Medi-Cal beneficiaries when it is not an enrolled provider. Second, it takes a long time to advance applications through the California Department of Health Care Services (“DHCS”) enrollment application review process (in some instances nine months or even longer), so re-filing can mean an extended period of no reimbursement. Third, a provider or other providers that are affiliated with the denied provider may have to disclose the denial, however innocuous, on enrollment applications in the Medicare and Medicaid programs forever. Failure to do so may itself cause additional denials in the future, so it is also important to keep track of the denial.

Court Orders Monetary Sanctions after Plaintiff Fails to Provide any Response to Allegedly Overbroad Discovery Requests

Published: July 20, 2023

by Eric Caligiuri
The IP Law Blog

In Buergofol GmbH v. Omega Liner Company, Inc., 4-22-cv-04112 (DSD Jul. 13, 2023) (Karen E. Schreier), the court granted the defendant’s motion to compel and awarded monetary sanctions after the plaintiff failed to respond at all to discovery requests that the plaintiff had objected to as overbroad because the court ruled the plaintiff “still had an obligation to respond to the extent it did not object.”

CA Supreme Court Holds Compelling Arbitration of Individual PAGA Claim Does Not Strip Standing to Litigate Representative Claims

Published: July 18, 2023


The Labor & Employment Law Blog

Yesterday, the California Supreme Court, in Adolph v. Uber Technologies, Inc., addressed the United States Supreme Court’s decision in Viking River Cruises, Inc. v. Moriana, 142 S.Ct. 1906 (2022). The much-anticipated Adolph decision, addresses the question of whether an “aggrieved employee,” who has been compelled to arbitrate individual PAGA claims (i.e. Labor Code violations allegedly suffered by the plaintiff in an individual capacity), loses standing to pursue non-individual PAGA claims (i.e. Labor Code violations allegedly suffered by other employees) in court. 

Feast or Famine: The Importance of Contemplating Failure in Commercial Real Estate Transactions

Published: July 12, 2023

by Mark E. Ellinghouse
Real Estate Legal Updates

Every spring, usually on the first weekend of good weather, I rush to the local nursery and spend what feels like a week’s worth of wages on new plants, soil, fertilizer, and irrigation lines. I can’t wait to get the seedlings in the dirt, connect the water, and watch the home-grown, organic produce flow from Mother Earth based only on my sweat equity. And every summer, usually around the Fourth of July, I face the cruel realization that my green thumb was apparently lost at childbirth.  The return on investment for 12 cherry tomatoes, 6 strawberries and a shriveled zucchini just isn’t there. Not everything goes to plan.