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Browse below for news, legal insights, information on presentations and events, and other resources from the Weintraub Tobin legal team.


Employers Beware: The Deadline to Comply with Notification Requirement of California’s New Non-Compete Law is Rapidly Approaching!

Last October, California Governor Gavin Newsom signed AB 1076 into law and it became effective as of January 1, 2024.  AB 1076 was the Legislature’s attempt to codify the California Supreme Court’s 2008 decision, Edwards v. Arthur Anderson LLP, which held that non-compete agreements in the employment context are unenforceable unless they fall within one of the three narrow statutory exceptions dealing primarily with the sale of business interests.  AB 1076 makes clear that requiring an employee to enter into a non-compete is unlawful and can subject the employer to penalties of up to $2,500 per violation.

California Supreme Court Determines PAGA Cases May Not be Dismissed Due to Issues of Manageability

Long-time blog readers and CEN watchers will recall that for the last several years, we have been watching several cases discussing whether Private Attorneys General Act (“PAGA”) claims may be stricken as unmanageable. First, in the Fall of 2021, an appellate court determined that trial courts have inherent authority to strike or limit PAGA claims that could not otherwise be made manageable in order to “preserve judicial resources [and to] prevent trials from becoming excessively complex and time-consuming.” (See Wesson v. Staples the Office Superstore, LLC (2021) 68 Cal.App.5th 746).  Just a few months later, a different appellate court disagreed, concluding that while a court may limit the presentation of evidence to ensure a manageable trial, courts had no authority to strike or limit PAGA claims due to unmanageability. (See Estrada v. Royalty Carpet Mills, Inc. (2022) 76 Cal. App. 5th 685.)

Commercial Real Estate Outlook for 2024: Slow and Steady Wins the Race

The classic fable of The Tortoise and the Hare is well-known across mainstream culture. Yet despite the story’s reliable and surprisingly universal thesis, it appears to have become commonplace for investors to look for faster and bigger results in lieu of slow and steady returns. And with recent high rates of return triggered by sustained low interest rates and pent up demand following the Great Recession, the commercial real estate sector seems to be no exception to this hare-like approach. It should therefore come as little surprise that, given high interest rates, increased construction costs, and political turmoil, many commentators on the 2024 commercial real estate market predict negative results for the upcoming year.[1]

When Is Trade Secret Protection the Right Choice?

Companies rely on intellectual property (“IP”) rights to protect their valuable information, creations, and branding. IP rights come in several forms: copyrights, trademarks, patents, and trade secrets.

As the U.S. Copyright Office explains, copyrights protect “original works of authorship including literary, dramatic, musical, and artistic works, such as poetry, novels, movies, songs, computer software, and architecture.” Copyright protection exists at the time of creation of the artistic or literary work, but before enforcing the rights against an infringer, it is necessary register the work with the U.S. Copyright Office.

2024 Brings Expansion for Medicare-Payable Mental Health Providers

In connection with the federal Consolidated Appropriations Act of 2023, marriage & family therapists (“MFTs”) as well as licensed professional clinical counselors (“LPCCs”) are eligible to receive payment from the Medicare program for covered behavioral health services with dates of services commencing January 1, 2024.  This change was intended to help address healthcare practitioner shortages and expand access to behavioral health services for Medicare beneficiaries.

Nirvana Stuck in Lawsuit Over ‘Nevermind’ Album Cover

In 1991, the grunge band, Nirvana, was one of the most popular musical acts in the U.S. with its anthem Smells Like Teen Spirit, which was featured on its album, Nevermind. Many will remember the cover of Nevermind that featured a naked baby swimming underwater and reaching for a dollar bill on a fishing hook. Three months after its release, Nevermind rose to the top of the Billboard 200 rankings and has sold over 30 million copies. The picture on the album was licensed for use on other merchandise, such as t-shirts, and was also the subject of various parodies. Now, 30 years later, Nirvana, its surviving members, and its record companies face a civil lawsuit for distributing child pornography by the now-grown man who was depicted on the album cover.

MERRY CHRISTMAS!

Every year, I write about patents that have to do with Christmas. Here are a few I have found, some of which were issued in 2023 and others of which are older.

Design patent D990,096 is a rather strange patent entitled “Elf Hand.”  The design looks like a prickly glove with four claws on the end of a round dowel. It is not very appealing. The listed prior art includes a backscratcher, so maybe that is what this is for.

Federal Circuit Vacates VLSI’s $2.2 Billion Damage Award Against Intel

On December 4, 2023, the Court of Appeals for the Federal Circuit vacated a $2.18 billion damage award against defendant Intel Corporation because it found plaintiff VLSI Technology LLC had erred on its damages calculation, that one of the asserted patents was not infringed, and that Intel was wrongly barred from raising a defense that it had a newly acquired license to the asserted patents.

AI Training and Copyright Infringement: Lessons from the Ross Intelligence Case

The Delaware District Court’s Ruling on cross-motions for summary judgment in the case of Thomson Reuters v. Ross Intelligence Inc will provide guidance for similar AI training/copyright infringement cases and, as a bonus, it provides a bit of clarity (or muddies the waters… depending on your point of view) in the application of a post-Warhol fair use defense.