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September 2000 Vol. 9, Issue 2
Yes, Software Piracy Is Copyright Infringement When you buy software, you purchase the right to use it, with certain restrictions. If you copy, distribute or install the software in ways that the license does not allow, you are violating federal copyright law, which carries both civil and criminal penalties. Copyright protection is not limited to books, songs and movies: It includes computer software. Worldwide, more than 38 percent of all software in use is illegally copied. In 1998, piracy cost the software industry $11 billion in lost revenues. More importantly, software piracy can be very expensive to your business in the long run. Since 1988, the Business Software Alliance (BSA) has been a voice of some of the world's leading software developers regarding enforcement of their copyrights. Its members include Adobe, Apple, Autodesk, Bentley Systems, CNC Software/Mastercam, Corel Corporation, Macromedia, Microsoft, Network Associates and Symantec. Since BSA started its enforcement of copyright laws on behalf of its clients, it has collected over $40 million in fines. Most BSA investigations begin with a call to BSA's hotline, 1-888-NO PIRACY, or a posting on its website, http://www.bsa.org. After an initial investigation of the lead, BSA typically contacts the company reported, although in some cases it pursues a software raid using U.S. Marshals and local law enforcement officials to seize evidence. What is surprising to many organizations is that unauthorized copying can result in stiff penalties, which can cost organizations much more than if they had bought the software programs in the first place. A copyright owner, typically the software publisher, is entitled to say how and under what circumstances the software may be reproduced, distributed and installed. In a civil case, the copyright owner can stop you from using the pirated software and request monetary damages. The owner can choose between actual damages, which include the amount the owner has lost because of your infringement plus all amounts you have profited, and statutory damages, which can be as high as $150,000 for each work copied. The government can criminally prosecute you for copyright infringement and, if convicted, you may be fined up to $250,000 or given a jail term of up to five years or both. My advice? Purchase genuine software products and install them in accordance with the license agreement, which should be kept in a safe place. When purchasing software that is installed by someone else, be sure that your vendor provides you with all original disks, manuals and certifications, as well as proof that your use is properly licensed. Know what is going on at your company. Ignorance of the actions of an employee is not a defense to copyright violations. Louis Wagner is Co-chairperson of the BDB Intellectual Property Practice Group. He can be reached by e-mail or at 330.258.6453 if you need further information on these or any other intellectual property issues. Ohio Estate Tax Changes By passing Senate Bill 108, the Ohio General Assembly recently brought Ohio closer to joining the ranks of death tax-friendly states. Senate Bill 108 reduces the number of Ohio estates that will pay estate tax. It does so by increasing the current estate tax credit of $500 (which shelters only $25,000 of assets). Even so, Ohio continues to resist the national trend and has refrained from becoming a "sponge tax" state. Currently, 38 states have a death tax structure known as the "sponge" or "pick-up" tax. The sponge/pick-up states impose a death tax equal to the amount of the state death tax credit permitted for federal estate tax purposes. This approach eliminates any additional state death tax and instead reallocates a percentage of the federal tax from the federal government to the state. Although Senate Bill 108 does not adopt the sponge tax
law, the new credit is expected to eliminate Ohio estate tax for 64
percent of Ohio estates in 2001 and for 78 percent of Ohio estates in
2002. Also, the act calls for the creation of a joint House-Senate committee
to study the effects of Ohio joining the ranks of sponge tax states
by 2006. For now, the change in Ohio's estate tax is as follows:
Family Business Estate Tax Deduction Although this is a positive move, the federal law is complex and restrictive. For this reason, the QFOBI provisions are not frequently utilized. For example, to be eligible for this deduction, the adjusted value of the qualified family-owned business, when added to any qualifying gifts of those interests, must exceed 50 percent of a specially-calculated number based on the decedent's adjusted gross estate. Ohio's provisions mirror this requirement. Like the federal law, the Ohio law requires the Department of Taxation to recapture from the heir some or all of the QFOBI tax savings when a qualifying heir ceases to remain materially involved in the operations of the business for the requisite 10 years from the decedent's date of death for any reason other than the heir's death. With the federal estate tax undergoing an overhaul (and possible elimination), it is hard to predict how the Ohio General Assembly will further amend Ohio's estate tax laws. At least for now, though, the trend is toward reducing the effect of state taxation on Ohio estates. Dianne Blocker Braun is an associate practicing in the Trusts and Estates Practice Group and is resident in the Canton, Ohio office. For more information on this or other trust or estate planning topics you may reach Dianne at 330.491.5222 or by email at dbraun@bdblaw.com OSHA Decides Not To Review Employer Self-Audits During Job Site Inspections By Vincent J. Tersigni,
Esq. Under the new formal policy, OSHA will not use self-audit reports as a means of identifying hazards upon which to focus during an inspection. In addition, when a voluntary self-audit is coupled with a good-faith attempt to correct an existing hazard, the audit may have the effect of eliminating a potential willful violation and result in penalty reductions. Encouraging Employers to Fix Hazards OSHA's position on this issue is consistent with the approach of the Environmental Protection Agency which has had a similar enforcement policy in place for many years regarding environmental audits. Vincent J. Tersigni is a shareholder in the
Akron, Ohio office and a member of the Employment Law Practice Group.
Should you have any questions regarding this new policy or other OSHA
issues, please contact him at 330.258.6552 or via e-mail at vtersigni@bdblaw.com
The Ohio Legislature has recently enacted a new statute that will provide property owners with an alternative means of avoiding probate on their real property at their death. Newly enacted §5302.22 of the Ohio Revised Code creates what is known as a Transfer on Death Deed. This deed allows individuals to hold title to real estate while providing for a beneficiary designation upon their death. When the property owner passes away, the interest in the real property vests immediately in the named beneficiary, thereby avoiding probate. Ways to Avoid Probate The Transfer on Death Deed can be created by any person who owns an interest in real property, regardless of whether or not the individual owns the entire interest or a portion. To create the new beneficiary designation, the owner must re-title the deed in his or her name with language granting one or more beneficiaries the right to the property upon death. Under the statute, each named beneficiary must be specifically identified. In other words, a parent cannot simply direct that the property pass to his or her "children" or "lineal descendants." Instead, the owner must specify the particular name of each child or lineal descendant to whom he or she would like the property to pass at death. An owner of the real estate is free to change the transfer on death beneficiaries at any time by recording another deed. Thus, the owner can eliminate originally named beneficiaries and add additional beneficiaries as they are born or determined to be appropriate. Once the landowner has decided whom he or she wishes to name as the beneficiary, the deed must be executed with the same formalities as those of any other deed. Although the deed does not need to be delivered to the beneficiary, it must be recorded with the appropriate County Recorder's Office. Failure to record the deed may nullify the transaction. After a deed is recorded, the grantor retains full ownership of the property. The statute is clear that the transfer on death beneficiary has no interest whatsoever in the real estate until the owner's death. Thus, the interest in the property owned by the transfer on death beneficiary is not subject to attachment, nor is it transferable through the estate of the named beneficiary, and the spouse of a named beneficiary will have no interest in the property itself. Retaining Full Ownership David W. Woodburn is a member of the Real Estate and Construction Practice Group and the Trusts and Estates Practice Group. If you need further information on this issue, David can be reached at 330.258.6506 or by e-mail. Defining "Stigma" In A Real Estate Transaction The recent decision of the 5th District Court of Appeals in Spinelli v. Bair confirmed that when selling a home, sellers need only disclose physical defects and thereafter refrain from engaging in fraud when responding to inquiries from potential purchasers. Alleged Crimes by Former Owners A notorious Stark County family, the Sextons, once lived in the home. The deviant activities of the Sextons were well publicized in the local newspapers and subsequently sensationalized and chronicled in a nationally published book titled THE HOUSE OF SECRETS. When local law enforcement officials began an investigation of the Sextons, the family fled to Florida, where two family members were murdered by other family members. Many of the Sexton family members were convicted of murder or other crimes in Florida and are serving prison sentences in that state. The sellers, who held title to the property twice removed from the Sextons, did not disclose that the Sextons had once owned the home. The sellers knew of the book and the crimes in Florida, but they did not have personal knowledge that any of the alleged events actually occurred in the home being sold in Ohio. Plaintiffs sued, alleging that the property was "stigmatized" and materially damaged as a result of the alleged events, the notoriety of the Sextons and the published book. What the Seller Must Disclose If you are purchasing a home, you should closely review the Residential Disclosure Form, obtain inspections to identify physical problems with the property and specifically inquire about any items important to your purchase decision. If prior owners are important, check the chain of title in the public record. If events or crimes are important, ask your realtor, the seller's realtor and the seller, and check with all local safety entities, such as police and fire departments. If you are selling a home, you must accurately complete all required disclosure forms for physical defects and be honest when responding to any specific inquiries from potential purchasers about other issues if the answer is within your personal knowledge. Scott A. Richardson is an Associate in the Canton office.
He successfully represented the sellers in the case described in this
article. He can be reached at 330.491.5253 or srichardson@bdblaw.com
BDB Mergers In Boca Raton, Florida And Canton, Ohio The firm's Boca Raton, Florida, office has merged with the Donohue Law Firm, which practices exclusively in the areas of estate planning, wills and trusts, probate, taxation, probate and trust litigation, and pre- and postnuptial agreements. The merger will enable both organizations to enhance the services they provide to their clients. We are delighted that the members of the Donohue firm will be joining our team in Boca Raton. The merger makes estate planning services, a growing area of need for our clients, available directly through the Boca Raton office. Mary Sue Donohue has an outstanding background in the law, and her previous experience as a bank trust officer adds an invaluable perspective to her work in the trusts and estates area. The merger of the Donohue Law Firm with Buckingham, Doolittle & Burroughs, LLP makes expertise in probate and trust law and income, gift, estate and generation-skipping transfer taxation more accessible to the clients we serve through our Boca Raton office. We can now meet the estate planning needs of owners of closely held businesses, our historical client base, along with the growing group of professionals, executives and others whose net worth make estate planning a major consideration. The following attorneys will be joining Buckingham, Doolittle & Burroughs, LLP in the merger: Mary Sue Donohue, a Shareholder in the firm, has practiced law for over 25 years in the states of Florida and South Dakota. She prepares estate plans, revocable and irrevocable trusts, and estate tax returns and handles probate litigation matters. A third-generation attorney, she received her J.D. from the University of South Dakota in 1975 and her B.A. from Boston University in 1972. George Weinstein, Of Counsel with the firm, is an attorney and certified public accountant who specializes in estates, trusts, tax and financial planning. A 1949 graduate of Dartmouth College, he received his J.D. from Yale University Law School in 1953 and his M.B.A. from Columbia University in 1954. He has been Adjunct Professor of Law at the University of Miami School of Law and is a member of the Florida and Connecticut Bar Associations. Christopher Gagic, an Associate with the firm, has extensive experience in estate planning, probate and trust administration, tax and guardianship. He received his B.A. in 1994 from McMaster University, Hamilton, Ontario, and his J.D. from the Western New England School of Law in Springfield, Massachusetts, in 1997. The Canton office merged with the law firm of Richard J. Lolli Co. LPA. Mr. Lolli joins the firm as a Shareholder in the Business and Real Estate and Construction Practice Groups. He will continue to maintain an office in Alliance, Ohio. Mr. Lolli represents individuals and small and medium-sized businesses, including partnerships and closely held corporations. He prepares estate, wealth management and business succession plans, wills and trusts, and handles probate matters. In his real estate practice, he represents developers, builders, buyers, sellers and title companies in both residential and commercial real estate transactions. Mr. Lolli has over 24 years of experience in real estate, government, business and estates law. He served as Assistant Law Director for the City of Alliance, Ohio, from 1984 to 1986. He is the founder and served as President of Colonial Title Agency, Inc., a statewide title agency, from 1985 until joining Buckingham, Doolittle & Burroughs, LLP. While a student, Mr. Lolli served as Statewide Director of Youth Operations for the Taft for Senate Committee, as an intern-clerk for Senator Robert Taft, Jr., in Washington, D.C., and as a Title Examiner for Midland Title Security in Cleveland. New Chief Operating Officer Named At BDB Richard A. Merolla has become Chief Operating Officer of the firm. He will have overall responsibility for the firm's operational and financial affairs, including administrative and law firm operations, financial and tax planning, risk management, financial reporting and budgeting. He will assist the firm in creating practice group and department plans, and will work with the President and Board to attract established Shareholder and Of Counsel candidates. Rick will also be responsible for financial analysis and financial reporting, as well as tax planning, compliance issues and benefit plan preparation. He will have overall responsibility for preparing and monitoring the annual operating and capital budgets, and will set and maintain the firm's internal financial and administrative controls. Working with the Administrative Directors of the firm, Rick will plan the firm's space and technology, marketing, human resources and accounting needs for all six office locations. He has come to the firm from Deloitte Consulting, where he was a Senior Manager in the company's Public Sector practice. He has significant experience with large-scale system implementation projects, including universities and city and state government operations. He previously was Finance Director for the City of Akron, Ohio, and was project sponsor during an office automation project and the implementation of a new financial system. He has managed accounting, treasury, tax collection and audit and budgeting operations. Rick has a Master's degree in economics from the London School of Economics and Political Science, and a Bachelor of Science degree in economics and mathematics from Cleveland State University. New Attorney Joins BDB Canton Office Robert Newbold has joined the firm as a Shareholder, practicing in the Business Practice Group. Mr. Newbold was previously the President of FranSource, Inc., a franchise development and support company, and has extensive experience in the area of franchise law. He has represented a variety of franchise clients ranging from personal-service companies to full retail outlets, from development and FTC disclosure procedures through transfer of interest, termination and renewal. He has drafted numerous franchisor corporate policy and procedure manuals, employee handbooks, operational guidelines for franchisee sale and support, and international and master franchise license agreements. Mr. Newbold has handled a variety of issues involving FTC compliance, NASAA guidelines and directors' guidance, as well as the negotiation and drafting of documents for the sale of companies. He has developed corporate guidelines pertaining to the Americans with Disabilities Act, the Family and Medical Leave Act, COBRA compliance and employee benefits.
Bob Hager spoke at the Construction Lien Law for Attorneys in
Ohio seminar in August. This seminar was designed for attorneys who
represent clients with claims related to construction or mechanic's
liens. Tom Hess made presentations on nursing home negligence at two seminars sponsored by Professional Education Systems, Inc. In addition, he spoke at a seminar sponsored by the Ohio Association of Medical Equipment Services on health care policy and at an Ohio Health Care Association seminar, where his topics were employee criminal background checks and resident advanced directives. Tom Hess will also speak on December 5, 2000, at a health-law seminar sponsored by the National Business Institute. Tom's topics are "Liability Insurance and Nursing," "Issues of Professional Responsibility," and "AIDS in the Workplace." Joel Mirman recently made a presentation at the seminar "Bridge the Gap: Practical skills for new Lawyers, " which was sponsored by the Ohio State Bar Association (OSBA). He spoke on interviewing and counseling clients. In addition, he spoke to the OSBA Banking, Commercial and Bankruptcy Law Committee on "Computer Sleuthing - Discovery of Electronic Data." George Weinstein, of the Boca Raton, Florida, office, taught a class in Estate Planning at the University of North Carolina College for Seniors in Asheville, NC. George has just completed his term as President of the Greater Boca Raton Estate Planning Council and is now serving as Director Emeritus.
Employment Law - October 11th
Creditors' Rights - October 19th
Health Law - November 2nd and
16th BDB seminar registration or information: On-line, visit our web site at http://www.bdblaw.com/new/events.html or call Lorna Henderson at 1.800.686.2825. Lorman Seminar registration or information:
BDB Attorneys In The News Donald B. Leach, Jr., Shareholder-in-Charge of BDB's Columbus office, has been certified as a member of The Million Dollar Advocates Forum. The Million Dollar Advocates Forum is recognized as the most prestigious group of trial lawyers in the United States. Membership is limited to attorneys who have won million and multi-million dollar verdicts, awards and settlements. The organization was founded in 1993 and has approximately 1800 members throughout the United States. Forum membership acknowledges excellence in advocacy and provides members with a network of experienced colleagues for referral and information exchange in major cases. Don Leach practices primarily in the areas of real estate and commercial law, with an emphasis on construction-related contracting, disputes and business matters. He is a frequent lecturer and author on construction and real estate topics. Congratulations to Peter T. Cahoon, Esq., who recently received a Quine Award from the University of Akron School of Law. This prestigious honor recognizes his outstanding efforts in the field of legal education. Peter has been an Adjunct Professor of Trial Advocacy at The University of Akron since 1993. Peter is a 1977 graduate of The University of Akron School of Law and is a Shareholder with BDB. He currently practices in the areas of criminal defense, "white collar" criminal investigations, domestic relations and juvenile matters, and attorney disciplinary cases. Joel H. Mirman, a Shareholder resident in BDB's Columbus, Ohio, office, has been appointed to the Columbus Bar Association Professional Ethics Committee. This committee of 36 comprises laypersons and Columbus Bar Association attorneys by presidential appointment. The work of the committee is to promote adherence to the highest standards of ethical conduct by attorneys and judges, and to gain and increase public confidence in the profession. It is a certified grievance committee dedicated to protecting the public from lawyers and judges whose professional conduct falls below the standards prescribed by the Supreme Court of Ohio. Joel presently practices in the Litigation Practice Group and chairs the Family Law Practice Group. His practice areas include civic litigation, general business litigation, employee termination matters, domestic relations/family law, taxation issues related to family law, and defense litigation. In addition to serving on this committee, Joel also serves on the Ohio Supreme Court Commission on Certification of Attorneys as Specialists (District 10/Franklin County). Vince Tersigni has been elected to serve a three-year term on the Akron, Ohio, Bar Association Board of Trustees. The board is responsible for running the bar association, which plays a significant role in Akron's legal community and has 1,500 members. Vince has been an active member of many bar committees and will chair the Labor and Employment Law Committee again this year. He also serves as labor counsel for the bar association. Vince's practice is focused on representing both public and private employers in labor and employment litigation, employment discrimination, non-competition litigation, wage-hour issues, unemployment compensation, civil rights and NLRB and OSHA matters. He advises employers regarding compliance with state and federal employment laws, preventing employment-related disputes, and implementing effective personnel policies. Vince frequently gives lectures on these topics. Steven A. Dimengo has been re-appointed chair of the Taxation Committee of the Ohio State Bar Association. He is a Shareholder and member of the Board of Managers with BDB and an Adjunct Professor in the University of Akron's Master of Taxation Program. Steve earned his undergraduate, law and masters in taxation degrees from the University of Akron. In the community, he has served on the Boy Scout Council and as a board member of both the Akron Community Service Center and the Urban League. Steve is also a member of the Ohio Society of CPAs and an officer of the Archbishop Hoban High School Board of Trustees. Robert W. Malone, a BDB Shareholder, member of the firm's Board of Managers and chair of its Mergers and Acquisitions Practice Group, has been appointed chair of the Federal Taxation Committee of the Ohio State Bar Association. After graduating from Mount Union College in 1973, Rob earned his law degree from The Ohio State University in 1976. A frequent lecturer on various subjects, including tax aspects of mergers and acquisitions and federal and state taxation issues, he is on the faculty of the University of Akron Master of Taxation program and is listed as one of the best tax lawyers in the country in the most recent edition of The Best Lawyers of America. Rob currently serves on the committee that monitors and proposes amendments for limited liability company legislation. In the community, he serves as president of the Akron Tax Club and as a trustee of both the Akron Art Museum and Planned Parenthood of Summit, Portage and Medina Counties. He is also a member of the Akron Estate Planning Council and the Akron Regional Development Board's Executive Committee. Terry Vincent, of the Cleveland, Ohio, office, will serve as a member of the Federal Taxation Committee of the Ohio State Bar Association. Terry earned his undergraduate, law and masters in taxation degrees from the University of Akron. He is a Principal Member of the firm practicing in the Taxation and Employee Benefits Practice Group and is an active member of the Cleveland Bar Association and has served as chair of its General Tax Committee. Tom Hess, a Shareholder resident in the Columbus office, has been appointed by Governor Robert Taft to a three-year term on the Ohio Board of Examiners of Nursing Home Administrators. The Board of Examiners is responsible for adopting standards for examination of nursing home administrators, and for taking action against non-compliant administrators. The Daily Bond Buyer recently reported the rankings by state for the top bond counsel. For the first six months of 2000, Buckingham, Doolittle & Burroughs, LLP was ranked in the top five for both the state of Ohio and the state of West Virginia. The rankings are based on the total principal amount of publicly sold bond issues for which the BDB Finance and Public Law Practice Group acted as bond counsel. The Buckingham, Doolittle & Burroughs, LLP Canton, Ohio, office was the proud recipient of an award for "The Most Giving Law Firm" from the Stark County Legal Aid Society. The award was presented to BDB attorneys Bill Emley, Dianne Blocker Braun and Art Leb.
We congratulate Bill, Dianne and Art on their selfless donation of the pro bono hours that led to this award. Karen D. Butera, Betty J. Konen and Craig B. Paynter were each selected to participate in the 2000-2001 Classes for Leadership Canton, Leadership Akron and Leadership Columbus. Karen is an associate attorney in the Canton, Ohio office. Betty and Craig are Shareholders and resident in the Akron and Columbus, Ohio, offices, respectively. This is a great opportunity for each of them to learn more about their community, meet key community leaders, and develop their own leadership skills. |
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