Business and Tax Lawyer Blog

In May, Sports Clips reached a billion dollars in haircuts. While only franchising for 16 years, Sports Clips is the number one hair care provider for men’s and boy’s haircuts. With over 780 stores in 38 states, Sports Clips continues to grow with 120 new stores projected to open this year. By focusing on a niche market, Sports Clips has been able to create and refine the haircut experience. In recent years, Sports Clips has ranked in the top 10 in Forbes’ Top 20 Franchises to Start and in the top 50 “fastest growing” franchises in Entrepreneur Magazine’s Franchise 500.

One unique business practice which has lead to Sports Clips' success is its use of non-exclusive licensing agreements. Through careful use and implementation of non-exclusive licensing deals, Sports Clips has partnered with organizations such as the NBA, MLB and NHL. Often times, these organizations are seen as having competing business interests and often employ the use of exclusive licensing arrangements. Non-exclusive license agreements typically have less restrictive terms binding one or both of the parties. However, in exchange, these agreements are usually much less profitable for one or both of the parties than an exclusive licensing deal.

To learn more about this article, visit Sport Clips Reaches "Billion Dollars" in Haircuts.

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The State of Florida defines a partnership as the association of two or more persons to carry on as co-owners of a business for profit. Under Florida's Uniform Partnership Act ("UPA"), no filing is required to form a partnership. Therefore, people often find themselves in "inadvertent partnerships" as case law holds that "intent" of the parties defines the relationship. Specifically, the requisite intent to the formation of a partnership is not the subjective intent to be partners, but rather if the parties intended to conduct a for-profit business as co-owners.

One fundamental misstep that befalls most partnerships is their failure to put the partnership agreement ("PA") in writing, even though it is not required. The UPA provides much flexibility with respect to the parties' relationship within the PA. In the absence of a writing, or PA, the statute itself attempts to provide a body of default rules that would best serve a small, informal partnership. Therefore, partners should spend time anticipating issues (whether positive or negative) and address them in the partnership agreement.

Other issues facing partnerships pertain to payment of taxes, the difference in payment for employees and business partners, as well as the division of labor between the parties.

One key to a successful partnership is being able to identify each partner's strengths and weaknesses, and adjust to fit each partner in the day-to-day operations. It is also beneficial to hire a skilled attorney to help identify potential issues in order to negotiate a partnership agreement that's main purpose is to avoid conflict.

To learn more about this article, visit Fix a Strained Business Partnership Now.

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Major film studios and record labels have gone before Congress to request more protection against foreign websites that profit from counterfeit and bootlegged products. The Senate's Judiciary Committee responded by proposing a new bill, referred to as (S968). The proposed bill would force online advertisers, e-billing companies and search engines to stop supporting sites found to be "dedicated" to copyright or trademark infringement.

Because the internet is global, piracy-sites can operate without scrutiny from countries that either choose to turn a blind eye, or refuse to recognize U.S. Copyright and Trademark rights. Senate Bill 968 would allow federal agents to direct U.S. companies that direct traffic, process payments, and serve advertisements online to end their support. However, federal court must first determine if a website is dedicated to infringing activities. In addition, Copyright and other mark owners would be able to seek injunctive relief against those U.S. companies that do not comply.

Once a site is deemed "dedicated" to infringing, the enforcement measure would make companies that operate name servers to re-direct online users away from it. However, this measure will not stop people from going to the site, because they are accessible through numerical addresses and foreign domain servers.

The concept behind SB 968 has been used to crack down on online-gambling websites. Yet some industry insiders are concerned that the bill, if enacted, could create an undue restraint on commerce, as well as undermine measures to create a more reliable and secure domain-name system.

To read more on this article, visit Policing the Internet.

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After years of litigation and multiple appeals, including a petition to the United States Supreme Court, the case against LFP Publishing Group (d/b/a Hustler magazine) is coming to a close.

The case was brought by Maureen Toffoloni on behalf of her daughter's estate. Ms. Toffoloni is the mother of Nancy Benoit, who was murdered in 2007 by her husband, professional wrestler Chris Benoit. In March of 2008, Hustler magazine published nude photos of Nancy Benoit that were made 20 years prior to her death. Nancy Benoit immediately requested that the photographer destroy the film and negatives so the images could never be published. However, the photographer kept a videotape of the images, which were later lifted from the video and released by Hustler.

Initially, a federal district court dismissed the right-of-publicity suit filed by Ms. Toffoloni, finding that the images related to a legitimate matter of public concern. This decision was reversed by the 11th U.S. Circuit Court of Appeals, explaining that the magazine's constitutional rights had to be balanced “with an eye toward that which is reasonable and that which resonates with our community morals.”

At issue was whether the right of privacy implicated in the 14th Amendment to the U.S. Constitution was trumped by the freedom of press provided for in the First Amendment.

Most states recognize the right to privacy against "the appropriation of another's name and likeness ... without consent and for the financial gain of the appropriator." The Supreme Court's affirmation of the 11th Circuit's decision granted Ms. Toffoloni with the legal authority (known as the right of publicity) to control such images "in order to maximize the economic benefit to be derived from her daughter's posthumous fame." The trial to determine the amount of damages involved is set to begin on June 13, 2011.

To read more regarding the history of this case, visit Mom's Privacy Suit Over Old Hustler Pix of Murdered Daughter Gets Green Light.

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Bank of America has agreed to a $20 million settlement for wrongfully foreclosing on 160 service members without checking on their military status. The suit was filed by the U.S. Department of Justice against BAC Home Loans Servicing, formerly Countrywide Home Loans Servicing. Allegedly, the lender did not consistently check the active duty status of borrowers on whom it foreclosed. The Justice Department asserts that Countrywide knew, or should have known, about their military status prior to initiating foreclosure proceedings. The Servicemembers Civil Relief Act was implemented by Congress in order to protect military personnel from civil requirements, such as mortgage payments, pending trials, outstanding credit-card debt and taxes.

To learn more about this article, visit BofA unit to pay $20M settlement.

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The ever popular iPhone has officially outranked Blackberry in the battle of the smartphones. However, Apple is still in 2nd place as smartphones utilizing Google's Android OS account for over 36 percent of the U.S. market share. In a twist of irony, Palm, the company responsible for launching the smartphone movement, has continued to lose users in recent years. In fact, Palm's current market share is last among all other smartphones.

To read more on this article, visit iPhone passes Blackberry among users.

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