Asimov law, legal implications and AI
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What does Trigger Cut have to do with Brexit?
Who is Trigger Cut? Trigger Cut is a rock band from Bern, Switzerland. They have played several shows throughout Europe and received critical acclaim for their live performances. While Trigger Cut may not be a household name, they have a dedicated following in the alternative rock community and have earned a reputation for their high-energy live shows and innovative sound.
And they were recently denied entry to the United Kingdom to perform at several concerts on their tour. Why you may ask. Well, let's start with the rules.
As of 1 January 2021, following the UK's departure from the European Union, there are new travel restrictions and requirements for EU citizens visiting the UK including artists.
Here are the key things you need to know:
Passport Requirements: EU citizens visiting the UK will need a valid passport. ID cards are no longer accepted.
Visa Requirements: EU citizens can visit the UK for up to 6 months without a visa. You may need to apply for a visa if you plan to stay longer or work.
Travel Insurance: EU citizens are advised to purchase travel insurance that includes health coverage for the duration of their stay in the UK.
But what about artists trying to enter the UK? If you are a musician planning to perform in the UK, you can enter the country using a "certificate of sponsorship" (COS) from each venue you want to perform in. This is an alternative to the "permitted paid engagement" (PPE) exemption, which is free, but has more limited eligibility criteria.
Will drone taxis (eVTOLs) become a reality?
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Do You Drink Milk?
Remember that milk carton you had to drink every day at lunchtime at school to keep your bones from disintegrating into dust? Gen Z, though, isn't into it.
According to a recent study in the USA, Gen Z, a generation that was - in the USA - not exposed to the once-pervasive Got Milk? ads are more interested in the expanding range of milk replacements or beverages that contain no milk at all.
In 2022, they spent 20% less on milk than the average American, although still eating yogurt, cheese, and other dairy items.
Many thanks to Colin Verba and Judgement War Productions for the production of Morning Musing #542
Gwyneth Paltrow VS Terry Sanderson
Sanderson accused Paltrow of "slamming" into him, while skiing. He claimed this crash left him with broken ribs and symptoms of a brain injury. Sanderson sued for $ 3 million.
What is ChatGPT?
ChatGPT is a large language model created by OpenAI, a leading AI research institute founded in 2015 by tech luminaries like Elon Musk, Sam Altman, Greg Brockman, and others. ChatGPT is based on the GPT-3.5 architecture, which allows it to understand and generate human-like responses to a wide variety of questions and prompts.
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Attorney Host Program: Attorney Becker’s Charlotte-Cologne Experience
BridgehouseLaw’s Attorney Host Program (AHP) provides enriching professional opportunities for attorneys to work from a different BridgehouseLaw office. In early 2023, I was selected as part of the pilot program for BridgehouseLaw’s Attorney Host Program from Charlotte, North Carolina, and for the past two months, I have been living and working in the German city of Cologne.
The past two months I have spent in Cologne have been fantastic for my professional development.
Working from BridgehouseLaw’s U.S. Desk in its Cologne office, I have developed my German language abilities, gained exposure to and understanding of German and European Union law, and provided international legal advice to BridgehouseLaw Cologne’s clients. I have observed German legal proceedings, written legal opinions submitted to the German court, and even traveled to the U.S. Consulate General in Frankfurt to learn and observe the practice of U.S. international notaries. Of all my experiences these past two months, the most valuable has been the opportunity to observe and work closely with two of BridgehouseLaw’s German attorneys and partners, Attorney Kevin Villwock and Attorney Michael Heinze.
Contributing to BridgehouseLaw Cologne’s international practice has been an immensely rewarding experience. I have greatly enjoyed working with BridgehouseLaw Cologne’s team of professionals and providing U.S. legal advice to its clients via client meetings, legal memos, or otherwise.
On a personal level, I would be remiss if I didn’t mention the unique cultural experiences I’ve had in Cologne, from celebrating Karneval to attending an FC Köln soccer match—all of which have made me appreciate what it means to be a Kölner.
I am now excited to return to BridgehouseLaw’s Charlotte office, equipped with new and developed skills to serve my international clients as well as BridgehouseLaw Cologne’s clients from abroad. Und nach Köln sage ich, bis zum nächsten Mal!
Caitlin Becker, Attorney at Law, BridgehouseLaw Charlotte
For the First Time, the United States Department of Labor Grants U & T Visa Certification Authority to OSHA
The Occupational Safety and Health Administration (OSHA) has historically been responsible for enforcing occupational health and safety laws that allow workers to perform jobs under safe protocols that provide them with recourse when subject to workplace retaliation.
On February 13, 2023, U.S. Secretary of Labor Marty Walsh joined OSHA Assistant Secretary Doug Parker to sign a memorandum that provides OSHA with the authority to issue certifications in support of applications for U nonimmigrant status and T nonimmigrant status visas.
U & T Visa Certifications
The Victims of Trafficking and Violence Protection Act of 2000 established two types of immigration benefits available to certain victims of crime. The U nonimmigrant status (U visa) provides temporary status to victims of an enumerated list of “qualifying criminal activities” (QCAs) who have suffered substantial physical or mental abuse as a result of the criminal activity. The T nonimmigrant status (T visa) provides temporary status to certain victims of human trafficking who have or are willing to assist law enforcement authorities in the detection, investigation, or prosecution of trafficking crimes.
Effective March 30, 2023, this authority will allow OSHA to authorize certifications when the agency, during a workplace safety investigation, identifies certain criminal activities, including forced labor, involuntary servitude, witness tampering, perjury, murder, manslaughter, blackmail, trafficking, extortion, felonious assault, obstruction of justice, conspiracy, or solicitation to commit any of the listed crimes.
What does this mean for employers?
This grant of authority may change the nature of OSHA workplace investigations. OSHA’s new grant of authority will permit the agency to issue U & T visa certifications during their inspections when the agency identifies QCAs. It is important for employers to note that OSHA inspections are serious activities that have the potential to raise grave ramifications.
Resources
Click here to access the U.S. Department of Labor’s February 2023 press release concerning this news.
Click here to learn more about worker protections and rights.
Michelle Aguilar, Law Clerk, BridgehouseLaw Charlotte
2023 Select USA Investment Summit
We are happy to announce that Reinhard von Hennigs will be a featured speaker at the 2023 #SelectUSASummit! Learn more about the top FDI event in the USA: http://www.selectusasummit.us
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The Baby Food Crisis
Baby food shortage has become a major concern for parents and caregivers due to contamination issues and the closure of a significant manufacturing facility.
The crisis, which started in February 2022, has since evolved into a political and legal challenge for the government.
The House Oversight Committee has summoned the FDA to testify about their response to the baby food crisis, particularly in light of recent revelations that FDA officials knew about a positive bacterium test in a Reckitt factory months before the public recall announcement.
Navigating NFTs: Understanding the Basics and Legal Implications
What Are NFTs?
NFTs are unique digital assets that are created on a blockchain network, such as Ethereum, using smart contracts. These smart contracts are self-executing computer programs that automate the process of creating, buying, and selling NFTs.
Each NFT is one-of-a-kind and contains a unique digital signature, known as a hash, that is stored on the blockchain. This makes NFTs tamper-proof and ensures that the ownership and authenticity of the asset can be easily verified.
NFTs are similar to cryptocurrencies in that they are based on blockchain technology, but they are different in that they are not interchangeable. Each NFT is unique and represents a specific asset or piece of content.
How Do NFTs Work?
The process of creating an NFT typically involves the following steps:
1. Creation of the digital asset: The first step is to create the digital asset that will be represented by the NFT. This can be anything from an image, video, music, or any other form of digital media.
2. Minting of the NFT: Once the digital asset is created, it is then "minted" as an NFT. This involves using a smart contract to create a unique digital signature or hash that is stored on the blockchain.
3. Sale or auction of the NFT: The NFT can then be sold or auctioned off to interested buyers. The ownership of the NFT is then transferred to the buyer, who can prove ownership and authenticity using the digital signature stored on the blockchain.
Legal Implications of NFTs
As with any new technology, NFTs raise several legal issues that must be addressed. Some of the most significant legal implications of NFTs include:
1. Intellectual Property Rights: NFTs represent a new way for creators to monetize their intellectual property, which raises several issues around copyright, trademark, and other intellectual property rights. For example, if a digital artwork is sold as an NFT, who owns the copyright to the original artwork?
2. Tax Implications: NFTs are subject to taxes, which can vary depending on the jurisdiction. For example, in the United States, the sale of NFTs is subject to capital gains tax.
3. Fraud and Misrepresentation: As with any valuable asset, NFTs are vulnerable to fraud and misrepresentation. There have already been several cases of fake NFTs being sold, which highlights the need for greater transparency and regulation in the NFT market.
4. Smart Contract Liability: Smart contracts are not infallible, and errors in the code can lead to unexpected outcomes. This raises the issue of liability for damages caused by smart contract errors.
Have you tried fritz-kola?
Fritz-kola is a German-based company that produces and sells high-quality, all-natural, and sustainably sourced soft drinks. The company was founded in 2002 by two friends, Lorenz Hampl and Mirco Wolf Wiegert, who were dissatisfied with the taste and quality of the soft drinks available on the market at that time.The name Fritz-kola is actually a combination of two different sources of inspiration for the founders of the company, Lorenz Hampl, and Mirco Wolf Wiegert. The founders decided to listen to their future customers to choose the drink’s name. They came up with a list of possible names that were related to Hamburg and northern Germany: Alster kola, after the lake; Elbe kola, after the river; Northern kola… and Fritz, the name of the ordinary German par excellence.
Thank you, Colin Verba, for producing this Morning Musing
Jack Daniels v. Bad Spaniels
In Morning Musing #536, Reinhard von Hennigs showcases how the Supreme Court heard arguments on March 23, 2023, in the case of Jack Daniel’s Properties v. VIP Products
Dehydrated Beer?
What is the future of beer? I could also phrase the question differently. Do you drink instant coffee? Some may think it has something to do with the fact that you drink one in the morning and one in the evening, or you need more of the one product in the morning if you had overconsumed the night.
But the common denominator is instant beer and instant coffee are on the market. Who would've thought?
Can You Still Apply for an ESTA if You’ve Been to Cuba?
Over the past few years, the United States announced changes with regard to ESTA eligibility for people who have been to Cuba. In January 2021, the Trump administration included Cuba in the U.S. Department’s State Sponsors of Terrorism List. This has also affected the way that travelers can gain entry into the United States via ESTA.
Foreign travelers from countries included in the Electronic System for Travel Authorization (ESTA)—a visa waiver program for over 40 countries including European Union member states—who visited Cuba during or after January 2021 are required to request a visa at the Consulate General or Consular Section of the U.S. Embassy in their home country.
What is a State Sponsor of Terrorism?
The U.S. Department of State determines the countries that have repeatedly provided support for acts of international terrorism and designates them pursuant to three U.S. laws. The four primary categories of sanctions resulting from designation under these authorities include (1) restrictions on U.S. foreign assistance; (2) a ban on defense exports and sales; (3) certain controls over exports of dual-use items; and (4) miscellaneous financial and other restrictions.
Which nations are designated by the Secretary of State as State Sponsors of Terrorism?
Four countries are currently designated by the U.S. Department as State Sponsors of Terrorism:
- Cuba (Designated on January 12, 2021)
- North Korea (Designated on November 20, 2017)
- Iran (Designated on January 19, 1984)
- Syria (Designated on December 29, 1979)
Why does this matter?
· Foreign travelers from countries included in the ESTA program who visited Cuba on or after January 2021 are required to request a visa at the Consulate General or Consular Section of the U.S. Embassy in their home country.
o This requirement will likely have negative impacts on Cuba’s tourism industry because it may disincentivize travel to Cuba.
· Cuba’s inclusion on the State Sponsors of Terrorism list limits foreign investment and creates substantial obstacles to delivering humanitarian aid to the island.
· The U.S. government is limited in its ability to support Cuban individuals and businesses.
· In addition to being penalized under the above-referenced legal authorities, designation on the State Sponsors of Terrorism list also implicates other sanctions laws that restrict trade with state sponsors.
Office Lunch
At BridgehouseLaw, we traditionally have an all-office lunch on the last day of the month. But, since Founder & Chairman Reinhard von Hennigs will be traveling next week, we decided to do it a week earlier.
We enjoyed good company, wonderful conversations, delicious food, and a beautiful view of the Queen City at the Charlotte City Club.
Guess who has been ransomware attacked??
Ferrari!
Reinhard von Hennigs muses about what happened in his first Morning Musing of 2023.
Thank you to Colin Verba and Judgement War Productions LCC for the post-production and editing.
The Chinese Connection 4
We hope you enjoyed the Chinese Connection Morning Musing series.
Did you learn something? Let us know your thoughts, please.
Do you have any topics you wish Reinhard would muse on?
Thank you, Colin Verba and Judgement War Productions LLC for producing this video series.
The Chinese Connection 3
We hope you enjoy the third installment in the compilation of Morning Musings with a Chinese connection.
Compiled and edited by Colin Vebra and Judgement War Productions LLC
The Chinese Connection 2
We proudly present part 2 of the Chinese Connection. Let us know your thoughts.
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The Chinese Connection 1
The Chinese connection is a new 4 part series compiled with past Morning Musings by Reinhard von Hennigs.
Thanks to Colin Verba and Judgement War Productions LLC for putting this series together.
Are your Employee Handbooks up to date? Why are they important?
Are your Employee Handbooks up to date?
Why are they important?
Voice-over provided by: Crystal L. Bagnardi McBride, SPHR, GPHR ... Thank you, Crystal, for your internship. May your bridges lead to success!!
Thank you ColinVerba & Judgement War Productions LLC
"Best for Business"
... that's what Business Facilities Magazine said about North Carolina.
According to the magazine, NC's economic strategy, world-class education, and Research & Development resources, incentives, and programs make our state the "Best for Business".
Boom Supersonic is planning on building jets in Greensboro, Wolfspeed announced plans for a semiconductor materials factory in Chatham County. Eli Lilly plans an expansion in Cabarrus County and Macy's Inc. a facility in Rowan County.
EDPNC
Brittney Griner Story Raises Additional Legal Concerns for the International Sporting Community
The Winter Olympics in Milan, Italy will start on February 6, 2026. The international sporting federations have until September 2023 to submit their official Winter Olympic 2026 qualification systems and events to the International Olympic Committee. Olympic-hopeful athletes must compete in predetermined qualifying sporting events to be eligible for consideration as accredited Olympic athletes.
These athletes normally prepare and train for the Olympic qualifiers by participating in non-qualifying international sporting events or playing for international teams during the off-season. These international experiences allow athletes to sharpen their athletic abilities while learning the “competition’s” sports ideology and abilities. While the non-qualifying events are primarily used to help the athletes train, these events are also used by the sporting federations to work out any complications that may arise from multiple nations and athletes converging into one geographic area that has its own distinct culture and laws. Each participant is expected to uphold the laws and values of their home country while respecting the values and laws of the host nation.
WNBA star, Brittney Griner, is a two-time Olympian who won gold medals for women’s basketball in 2016 and 2020. When Griner wasn’t playing for the NBA’s Phoenix Mercury team, she spent her off-season time playing for UMMC Ekaterinburg, a Russian Premier League women’s basketball team. When Griner was detained and incarcerated in Russia for violating a host country law, which in America wouldn’t have resulted in much more than a fine, the NBA, sporting associations, and fellow athletes were stunned. This athlete was at the mercy of the host nation without any real recourse to be returned to her home nation. It took multiple legal actions and over 9 months of diplomatic negotiations to secure her release back to her home country.
Prior to Griner’s 294-day confinement, many professional coaches encouraged this type of international athletic cross-competition. After Griner’s release, the global sporting world breathed a collective sigh of relief. However, international sporting federations and governing organizations should review current participation policies to ensure there are legal protections in place that allow for the timely return of athletes from the host country to their home country if a detainable violation were to occur. With International sporting events happening more frequently over the next 3 years, in preparation for the Olympic qualifiers, the potential for international athletes to find themselves involved in host country legal troubles increases.
Currently, Lake Placid, New York is hosting the 2023 FISU World University Games from January 12-22, 2023. This is the second time Lake Placid has been selected to host the FISU games; the first time was in 1972. This event brings 50 countries represented by 2,500 athletes from 600 universities across the globe to approximately a 5 mi 2 / 13 km 2 area. Lake Placid hosted the Winter Olympics twice as well, in 1932 and 1980. While the town may be accustomed to hosting international events, this could be the first time in the United States for many of the athletes. The FISU rule book mandates that host countries provide an attaché/interpreter to assist visiting athletes with local legal questions. Is this enough protection for visiting athletes who may find themselves in violation of US laws they don’t know about or understand?
Crystal McBride, LawClerk, BridgehouseLaw Charlotte
Expanded EV Incentives for 2023
The U.S. expects to see a significant increase in new Electric Vehicle (“EV”) infrastructure projects thanks to a major piece of legislation passed in August of last year.
The Inflation Reduction Act of 2022 (“IRA”) was passed to address rising inflation by reducing the federal deficit, lowering prescription drug prices, and investing in clean domestic energy production. As part of the bill, the Federal government aims to raise nearly $750 Billion, with nearly $400 Billion authorized for spending on energy and climate change initiatives. As part of this spending package, Federal authorities have created several financial incentives for EV investment including tax credits, federal grants, and loans. Each incentive offers individuals and businesses ways to maximize their investments in new EV technology.
The various EV tax credits offer the most widely available incentive by giving businesses and individuals a tax credit for purchasing and putting into service EVs meeting certain criteria. Individuals with a modified adjusted gross income within certain defined thresholds are eligible to receive a total tax credit of up to $7,500. A similar credit is available to businesses that purchase and put into service EVs, providing a maximum of $7,500 for vehicles under 14,000 pounds and a maximum of $40,000 for vehicles over 14,000 pounds. These tax credits depend on certain sourcing requirements for critical minerals and location requirements for final assembly which will be set out by the Treasury Department later this year.
In addition to the vehicle tax credits, the IRA also provides a manufacturing EV tax credit for specific qualified advanced energy projects. These projects include reequipping, expanding, or establishing certain manufacturing and industrial facilities for producing light-, medium-, and heavy-duty EVs, FCEVs, EV charging stations, and hydrogen fueling stations. Qualifying projects are eligible for up to a 30% tax credit for project investments.
The IRA has also expanded upon the Advanced Technology Vehicle Manufacturing Loan Program (“ATVM Program”) which provides treasury rate loans to qualifying automotive and component manufacturers for certain EV projects. Through this program, automotive and component manufacturers work closely with the Department of Energy Loan Programs Office (“LPO”) to ensure that the project meets the necessary requirements Eligibility requirements include Manufacturing eligible vehicles or components; building new facilities, improving existing facilities, and/or engineering integration related to the manufacture of ATVs or components; be located in the United States; and provide a reasonable prospect of repayment. By working with the LPO, a qualified manufacturer can tailor its project to the requirements of the ATVM Program to maximize the funding it can receive.
The final category of financial incentive is the IRA’s grant programs including the Heavy-Duty Zero Emission Vehicle (ZEV) and Infrastructure and Port Electrification grants. These grant programs may cover up to 100% of the total project costs and are run by the Environmental Protection Agency (“EPA”). Each program has specific criteria for eligible contractors and recipients so those interested in potential funding through the grant should consult with legal counsel to determine whether they are eligible.
Through the IRA, the government is offering significant incentives for individuals and businesses to invest in clean energy initiatives such as EVs. The BridgehouseLaw team is ready to assist those interested in taking advantage of these incentives by breaking down funding requirements and helping our clients maximize the return on their investments. If you would like to learn more about the different IRA EV incentives, please contact our office today.
Thomas Joa, Attorney, BridgehouseLaw Charlotte
Mariah Carey - the queen of Christmas?
Since the 1994 release of “All I Want for Christmas is You”, Mariah Carey has become inextricably linked with the Christmas holiday season. Shortly after the release of this song in 1994, it topped the charts in twenty-six countries, including Mexico and Germany. Even now, every year the song surges in popularity as the holidays approach.
In 2021, Mariah Carey filed a trademark application with the U.S. Patent and Trademark Office through her company Lotion LLC. The application sought to protect three phrases: (1) “Queen of Christmas,” (2) “Princess Christmas,” and (3) “QOC.” The application sought to use these phrases exclusively for a range of products, including makeup, clothing, jewelry, dog accessories, and even coconut milk. Such a broad trademark registration would prohibit the sale of merchandise in this range of products with any of the three phrases by other businesses in the United States.
Since the application’s filing, two artists made public statements against the application: Darlene Love, who said she was titled Queen of Christmas by David Letterman in the late 20th century, and Elizabeth Chan.
Elizabeth Chan is a musician based in New York who has exclusively made music for Christmas for at least ten years and felt that she would be uniquely affected by Mariah Carey’s trademark application. As a result, she sought legal counsel through the law firm WilmerHale to file a motion in opposition to Mariah Carey’s application on May 17, 2021. As grounds for opposition, Mariah Carey’s legal team highlighted that media sources have dubbed Ms. Chan the “Queen of Christmas” since at least 2014. Further, Ms. Chan has also used the brand “Princess of Christmas” referring to her daughter, Noelle, in connection with the sale and licensing of music, books, and entertainment services since approximately 2017. As such, U.S. consumers have come to associate “Queen of Christmas” and “Princess of Christmas” with Ms. Chan’s brand through her business, Battery Park Media LLC.
In reaction to the opposition filing, Mariah Carey’s legal team sought three separate extensions to reply to the motion in opposition, all of which were granted. Despite these extensions, they failed to file a motion in opposition and were notified of their default on October 5, 2022.
As a result, on November 14, the Trademark Trials and Appeals Board issued a default judgment against Mariah Carey denying her trademark application for the three phrases, as her legal team failed to file a timely response to Elizabeth Chan’s opposition. In an interview with Variety magazine before the news of her success, Ms. Chan stated, “I feel very strongly that no person should hold onto anything around Christmas or monopolize it in the way that Mariah seeks to in perpetuity. . . . That’s just not the right thing to do. Christmas is for everyone. It’s meant to be shared; it’s not meant to be owned.”
Caitlin Becker, Attorney, BridgehouseLaw Charlotte
image: New York Post
Beer Ban in Qatar
For many people, beer is one of the first things they associate with a soccer match and an integral part of the stadium experience. Prior to the 2022 FIFA World Cup, the US beer company Budweiser was granted an exclusive license to sell its beer at stadiums in Qatar. However, just two days before the first match of the tournament, Qatari authorities decided to ban beer from all of the World Cup stadiums. Only Bud Zero, Budweiser’s alcohol-free beer, can be sold at the stadiums during the tournament. The only exceptions to this beer ban are designated VIP areas that cost thousands of dollars, and specifically designated FIFA Fan Areas.
In the months leading up to the tournament, the host country Qatar and FIFA had agreed that alcoholic beer would be allowed at the stadiums. Qatar is a Muslim country with severe laws regarding alcohol. The intoxicating beverage is generally forbidden and can only be sold in limited areas like hotels. Despite its earlier agreement, Qatar changed course without explanation, moving to restrict the sale and consumption of alcohol during the World Cup.
The deal between Budweiser and FIFA had a value of US$75 million and allowed Budweiser to sell beer exclusively in the areas surrounding the stadiums. Prohibiting the sale of beer at the stadiums could be construed as a breach of contract and result in a lawsuit filed by the beer company.
Budweiser and FIFA began their sponsorship relations in 1986, when the World Cup took place in Mexico. In 2026, when the USA, Canada, and Mexico will host the tournament, Budweiser will be the official beer supplier. Following Qatar’s decision Budweiser acknowledged the move via its official Twitter page, tweeting “Well, this is awkward.” The company later deleted the tweet.
Prior to the ban, Budweiser shipped its beer to the Gulf state, creating a huge logistical problem once Qatar backed out of the deal. A few days after the ban, Budweiser announced that it would ship the unsold beer to the country that wins the World Cup.
This is not the first time the World Cup has been accompanied by a dispute over beer. The beer industry faced similar issues during the 2014 World Cup because the purchase of alcoholic drinks at stadiums used to be forbidden in Brazil. Under pressure from FIFA, the country passed a new law that allowed beer to be sold at the stadiums during the tournament. Jerome Valcke, FIFA’s general secretary at that time, said that alcoholic drinks are part of the FIFA World Cup and that FIFA would not negotiate about it. It seems as though FIFA’s opinions have changed since then.
Niklas Melljes, Law Clerk, BridgeouseLaw Charlotte
image: Marketwatch
Offshore to Reshore: U.S. Businesses Shift Strategies
The COVID-19 pandemic continues to change the business environment in new ways. We’ve become familiar with some changes, such as increased remote work and disruption to global supply chains. Now, we’re seeing U.S. companies increasingly protect themselves from disruptions by reshoring.
For decades, U.S. companies moved business operations and manufacturing to countries in Asia or Latin America in order to produce under cheaper and more efficient conditions—a process called offshoring. After the COVID-19 pandemic caused the collapse of global supply chains in 2021, manufacturing and distribution in many parts of the world were either interrupted or stopped completely. Numerous U.S. companies were not able to offer their clients their goods anymore because integral components or finished products could not be delivered to the United States. Although supply chain issues have calmed down in recent months, remaining lockdowns continue to affect global supply chains. For example, China, which contributed pre-pandemic roughly 20% of U.S. imports annually, is placing more and more cities under lockdown, which has caused the price of U.S. imports from China to rise dramatically due to supply bottlenecks.
To resolve issues that are ultimately but indirectly caused by the U.S. practice of offshoring, U.S. businesses are increasingly reshoring or bringing manufacturing back to the U.S. in order to decrease dependency on supply chains. The recent trend in reshoring is especially advantageous for small businesses, which do not have the financial resources and endurance to afford doubled or tripled prices for various components they need.
Although the COVID-19 pandemic has catalyzed the shift from offshoring to reshoring, this trend was already emerging before the pandemic hit. Between 2010 and 2020, more than one million jobs were brought back to the United States through reshoring. The COVID-19 pandemic has brought to the forefront the inherent risks of dependence on global supply chains, which can be disrupted by a variety of factors—pandemics, yes, but also political instability and seemingly random events such as the March 2021 blockage of the Suez Canal due to a stuck container vessel.
By turning to reshoring, U.S. companies are demonstrating their ability to adapt, to strengthen supply chain resilience, and to diminish associated vulnerabilities. Reshoring enables businesses to react immediately to the ever-changing needs of the market thanks to the proximity of customers. Shipping costs also decrease through reshoring, although this is partially absorbed by the business to adjust for the higher cost of production in the U.S. due to higher salaries and rent. The rising tensions between China and U.S. is another incentive for U.S. businesses to reshore, as trade policy is ever-changing. For example, recently, the U.S. imposed new restrictions on U.S. companies selling advanced semiconductors to China.
It is important to note that the recent U.S. reshoring trend varies across industries. For example, the textile industry, which requires mostly manual labor, is not likely to return because of the significant wage gap between Asia and the United States.
Although reshoring is considered especially advantageous for small businesses, larger businesses are also reshoring. In December 2021, General Motors announced plans to spend upward of $4 billion USD to expand electric vehicle and battery production in Michigan. Toyota is also about to invest $1.3 billion USD in a battery plant in North Carolina, which is expected to create approximately 1,750 jobs.
Reshoring not only helps to protect U.S. businesses from disruptions, but it also contributes to the U.S. national economy via job creation and development. Federal an
d state governments have therefore been keen to introduce incentives to U.S. businesses partaking in reshoring. Lastly, as U.S. businesses are increasingly scrutinized for their environmental impacts, reshoring manufacturing reduces global fossil fuel consumption from shipping.
Although the COVID-19 pandemic might be about to end, the reshoring trend is expected to remain.
Penal Consequences for Putin’s Supporters in Germany?
Could supporters of Russia’s war in Ukraine menace legal consequences in Germany in the future? Since Russia’s attack on February 24, 2022, on Ukraine, many demonstrations have occurred in Germany, mostly in solidarity with the Ukrainian people. But there are also demonstrations organized by members of the huge Russian community in Germany (around 2 million people) and other parties, which support Putin’s side in the war.
Organizing and participating in a public gathering is both in Germany and in the U.S. a constitutional right, even if it occurs in favor of a country that has initiated a war of aggression. But what happens, if pro-Russian demonstrators in Germany start to deny the war crimes that take place in Ukraine?
As a result of German’s WWII reckoning, there is already a criminal law in Germany that prohibits condoning, denying, or trivializing the Holocaust in public or during a public gathering in a way that is likely to disturb the public peace (§ 130(3) Strafgesetzbuch (StGB); German criminal code). Other nations, which penalize the denial of the Holocaust, are Israel and Austria. A similar criminal law does not exist in the United States but such action may constitute grounds for a cause of action under civil law in certain circumstances.
On October 20, 2022, the German parliament voted to amend and extend § 130 StGB. Passage 5 thereof now penalizes condoning, denying, or trivializing genocide, crimes against humanity or war crimes publicly or during a public gathering. To be punishable under the amended § 130(5) StGB, an act must relate to a certain national, racial, religious, or ethnic group in a way that is likely to incite someone to hate or act with violence against this group or members of this group or to disturb the public peace. The passed bill provides for fines as well as imprisonment up to three years, whereas the maximum imprisonment for sanction regarding the Holocaust in § 130(3) StGB is five years. The rationale behind this discrepancy is the significance of the Holocaust in German history, which justifies more severe penalties.
According to statements by politicians with expertise in law, it is now possible that pro-Russian supporters could be penalized based on this new law if they, for example, condone or deny war crimes committed by Russian soldiers during a demonstration.
Notably, the new law does not prohibit a person from denying that a specific war constitutes a crime of aggression. The crime of aggression, which is aggression that constitutes a manifest violation of the Charter of the United Nations as determined by its character, gravity, and scale, is penalized as a crime under international law (§ 13 Völkerstafgesetzbch (VStGB); Code of Crimes against International Law). As such, whether a war constitutes a crime of aggression under § 13 VStGB is, to some extent, a subjective assessment. Because the new § 130(5) StGB does not prohibit a person from denying that war is a crime of aggression, such assessments should not be stymied and will not be punished.
Despite possible consequences to pro-Russian demonstrators, the war in Ukraine did not cause the amendment to § 130 StGB. Rather, the amendment to § 130 StGB results from the European Commission’s initiation of initiated treaty violation proceedings against Germany in December 2021. In the European Commission’s opinion, Germany violated the EU resolution 2008/913/J1 from November 28, 2008, which aimed to fight specific forms and expressions of racism and xenophobia.
Although the newly-amended law might affect upcoming demonstrations, the actual coverage of § 130(5) StGB will be determined by the court's decisions.
Breast Cancer Awareness Month
As fall begins and the leaves change, people and businesses turn their attention to the vital issue of breast cancer. According to the World Health Organization, breast cancer is the world’s most common cancer, accounting for 12% of new cancer cases worldwide in 2021. While breast cancer is caused by genetic abnormalities, only 5-10% of breast cancers are caused by abnormalities inherited from parents. The remaining 85-90% of breast cancers are due to genetic abnormalities resulting from the aging process. For this reason, 1 in 8 U.S. women will develop invasive breast cancer during their lifetime. Given the disease's broad impact, breast cancer charities have been working for decades to increase awareness and raise the funds necessary to fight back.
Each October people around the world participate in Breast Cancer Awareness Month, an international health campaign created to raise awareness and funds for research, prevention, diagnosis, treatment, and cure of breast cancer. Throughout the month, major breast cancer charities across the globe host a variety of events to raise awareness and show support to all those who have been affected by breast cancer. From providing free informational material to hosting discussions by survivors, October is full of activities and resources that support any level of involvement.
For those looking to participate in Breast Cancer Awareness Month, the National Breast Cancer Foundation has a host of information and resources on its website. In addition, to fundraising and outreach, you can check with your local breast cancer charity about events in honor of National Metastatic Breast Cancer Awareness Day on October 13, and National Mammography Day on October 21. Finally, you can show support for all those who have fought and continue to fight against breast cancer by wearing pink and displaying the pink ribbon around your office all month long. No matter how you participate, each contribution makes a difference so talk to your local breast cancer charity about getting involved today.
Bunnycide in Switzerland?
The Federal Supreme Court of Switzerland in Lausanne has decided: The German discount retailer Lidl is not allowed to sell their Easter chocolate bunnies in Switzerland anymore. The Federal Supreme Court even ordered Lidl to destroy all such items still in stock. But what happened?
Initially, the Commercial Court of Aargau dismissed the action in 2021. On September 29, 2022, the Federal Supreme Court of Switzerland published its decision to allow Lindt’s complaint. Lindt registered so-called three-dimensional shape marks for the bunnies with a bunny wrapped in gold foil, a red collar with bow and bell, and the imprint “Lindt Goldhase”. To fall under the Swiss trademark law, the brands must be established in the market and public known according to the Federal Supreme Court. Lindt submitted a survey that proved this requirement in the Federal Supreme Court’s view. Further, a survey commissioned by one litigant is adequate evidence if the survey has been conducted correctly and following scientific standards, the Federal Supreme Court stated, deviating from the Commercial Court of Aargau’s judgment.
The Federal Supreme Court found that the bunnies of the two producers were confusable for potential clients and that the form and shape of Lidl’s bunnies are comparable to that of Lindt’s bunnies. The Federal Supreme Court reasoned that Lidl bunnies were indistinguishable from the Lindt bunnies in the public’s mind because of the overall impression, despite existing differences in their outer appearance.
The Federal Supreme Court ordered the destruction of all remaining Lidl bunnies. The Federal Supreme Court reasoned that the destruction is proportionate because the chocolate itself does not have to be discarded but can be reused to create another product.
According to Lidl, the corporation currently has no chocolate bunnies in stock since it is a seasonal item only sold around. So, in actuality, no bunny needs to be destroyed or converted, and no bunnycide is necessary.
The Federal Supreme Court returned the case to a lower court for an assessment of whether Lidl is also obligated to pay
monetary compensation to Lindt.
monetary compensation to Lindt.
The Federal Supreme Court’s decision in favor of the trademark protection has “great importance for the Swiss market,” according to a Lindt representative.
On the other hand, Lidl is not satisfied by the Federal Supreme Court’s decision. Lidl has opted not to comment on the verdict based on the fact that the litigation has not yet been concluded.
The German Act on Corporate Due Diligence Obligations in Supply Chains
1. “Heal the world”?
On January 1, 2023, the German “Lieferkettensorgfaltspflichtengesetz (LksG)”, Act on Corporate Due Diligence Obligations in Supply Chains will come into force. This will mark a milestone within the EU to fight slave-like working conditions and vice versa to protect human rights worldwide. According to the German Federal Ministry for Economic Cooperation and Development, globally 79 million children suffer from exploitative working conditions and 25 million children provide forced labor. Since the appeal by the German government to incorporate due diligence instruments voluntarily was largely unsuccessful, the legislature now makes its former suggestions mandatory.
The goal of the LksG is to require the companies that trade and sell goods produced in other nations to run background checks on their suppliers to prevent European wealth based on exploitation.
2. Structure
a. Companies that must adhere to the LksG
The LksG will initially apply only to companies that employ at least 3,000 people globally regularly. Companies that have either their principal place of business, their branch office, their administration, or their registered office in Germany must abide by the LksG. Companies that have at least a branch office under Section 13d German Commercial Law Code in Germany must comply as long as their 3,000 employees are employed in Germany.
b. Definitions
According to Section 3 of the LksG, companies must adhere to due diligence obligations in an “appropriate manner” to minimize risks regarding human rights and environmental violations. Section 2 lists and clarifies the risks that the LksG aims to mitigate, referencing various international agreements. Central aspects of human rights protections in the LksG include:
(1) Prohibition of forced and slave labor and slavery;
(2) Employee rights, including occupational and safety as well as organizational and trade union rights;
(3) Prohibition of discrimination and unequal treatment; and
(4) Compliance with environmental standards and other environmental rights.
Environment-related aspects of the LksG aim to conserve the location of production as a habitat for the local population by reducing pollution. As such, the LksG uses the nexus of environmental rights to further its central goal: human rights protection.
There is a presumption that the risk for human rights, as defined in the LksG, is present if certain threshold facts exist that increase the likelihood of a violation. For instance, if there is evidence of employment of children, compulsory labor, or worker’s protection rules at the workplace.
c. Duties and Consequences
(1) Risk Analysis and Management
The first step for each company will be to implement compliance measures to evaluate the likelihood of the event, that risk as defined in Section 2 of the LksG exists within the supply chain. After this evaluation, a detailed plan outlining concrete measures to minimize risks must be created. The third step includes the implementation and thus, preventive measures for the future as well as actions to rectify already existing infringements.
(2) Compliance Mechanisms
First, companies themselves must assess the effectiveness of their risk prevention on an annual basis. Consequently, they have to publish on their website a report on their efforts to minimize human rights violations within their supply chain. Public opinion is considered equally important to company management as economic risks through fines. Second, companies are required to establish a complaint process to report violations of human rights or lack of compliance with environmental protection rules. Third, section 11 grants third parties, such as NGOs, the ability to file complaints for those who suffer due to the company’s insufficient practices. This should put an early end to corporate secrecy due to the investigatory practices of NGOs.
Fourth, there are specialized authorities to investigate and evaluate regularly whether all the measures required by the LksG have been implemented.
(3) Liability of Companies and Suppliers
Of course, companies will not be liable for any violation of human rights on this planet. Companies will only be responsible for what they can control within their supply chain. The supply chain consists of all products and services a company offers and includes any step necessary to produce or provide a service. Therefore any act of a direct or indirect supplier is ascribed to the obligated companies. Misconduct by either the company or by a supplier can have severe consequences: Primarily, companies that lack their own motivation to comply must pay fines of up to two percent of the company’s annual worldwide revenue. Further, an infringement can lead to the company becoming
ineligible for public contracts in the future. The degree of liability depends on the chance of knowing about the infringement and the opportunity to rectify the infringement. In this evaluation, the differentiation between direct and indirect suppliers is relevant. There is little to no chance of escaping liability if the respective supplier is active in a region or profession where human rights or environmental risks are common.
It is impossible to prevent any violation from happening and minimize any risk to zero due to the reliance on third-party actors. The liability, therefore, is excluded if the obligor company has acted by the LksG.
3. What to Expect
In February 2022, the European Commission accepted an official recommendation by the European Parliament to issue a guideline with even further requirements. Thus, a unified EU regulation is likely to come sooner rather than later. As soon as January 1, 2024, the current act in force will apply to companies with not 3,000, but 1,000 employees.
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