Chester’s
World of Innovation & Trade Law
April 2008
________________________________________

Editor-In-Chief
J. F. (Jim) Chester, JD/LL.M

Articles Editor
Miranda Anger, JD
________________________________________


Export
Better to Ask for Forgiveness than Permission... Except When Exporting!

In March, a Minnesota company pleaded guilty and was sentenced in federal court in connection with submitting false export license applications to the United States Department of Commerce involving proposed shipments to India.

U.S. Magistrate Franklin Noel sentenced MTS Systems Corp., of Eden Prairie, to two years probation and a $400,000 fine. The company pleaded guilty March 12 to two misdemeanor counts of false certification or writing. MTS manufactures and sells test systems throughout the world, including some determined to be involved in unregulated nuclear activities in India.

In 1998, the United States imposed economic sanctions on India prohibiting American companies from exporting certain goods and services to various Indian entities without first obtaining an export license.

MTS did not initially apply for a license because the MTS employee in charge of export compliance stated that it was “extremely unlikely” that it would gain approval for the export unless the customer could make a “strong and convincing” argument that this test system would not and could not make a significant contribution to India’s nuclear energy programs. The license application did not reflect the corporate knowledge of nuclear end-use, the omission of which made the application false.

The rules governing exporting goods to foreign countries are constantly changing and complex. If you have questions about international trade, contact Chester/Associates at trade@tradelawfirm.com.


Source: US BIS
___________________________________

UPCOMING SEMINARS

Fundamentals of International Trade Regulation
Keynote Speaker: Jim Chester
Date: May 1, 2008
Time: 6 P.M. – 8 P.M.
Place: NAPM- Wichita, Kansas
EMAIL tandcjackson@cox.net FOR INFO

----------------
Fundamentals of International Trade Regulation
Keynote Speaker: Jim Chester
Date: July 24, 2008
Time: 6 P.M. – 8 P.M.
Place: NAPM- San Antonio
EMAIL BWolfe@swri.org FOR INFO
___________________________________

Patent
Presidential Support of Patent Reform Bill

Earlier this month, the Bush Administration shared a letter with members of the Senate, expressing its views on the Patent Reform Act of 2007 (S. 1145).

The letter states the Administration strongly opposes S. 1145 in its current form, but strongly supports passage of balanced patent modernization legislation. Any changes must be carefully considered and balanced to encourage all innovators and business models. The Administration opposes S. 1145 because it does not strike the right balance for all innovators. Unless the provisions limiting inventors’ rights to obtain damages are significantly revised, the Administration believes the resulting harm to the U.S. intellectual property (IP) system would outweigh the bill’s many useful reforms.

The Administration continues to strongly support the passage of patent modernization legislation that improves patent quality and reduces litigation costs. In fact, the Administration agrees with many of the bill’s provisions—and believes that those provisions pertaining to applicant quality submissions are the only ones that serve to maximize quality in the U.S. IP system. Working together, the Congress and the Administration can and should enact legislation that will promote innovation throughout all sectors of the economy.

If you have questions about intellectual property protection, contact Chester/Associates at IP@tradelawfirm.com.

Source: USPTO
___________________________________

International Business

Customs: Both Here and Abroad

Customs and Border Protection (“CBP”) representatives are critical to the success of CBP’s strategy of extending America’s zone of security outward beyond U.S. borders. These individuals are the CBP subject matter experts at embassies across the world. They provide in-country support for CBP.

In August 2004, CBP began placing representatives at foreign embassies to oversee CBP operational programs. Countries with CBP representatives include: Canada, Mexico, China, The Netherlands, Dominican Republic, Panama, Egypt, Philippines, Germany, Singapore, Hong Kong, South Africa, India, Thailand, United Kingdom, and Japan.

U.S. missions and foreign governments benefit from the program by having in-country expertise. This brings:

* Improved international supply chain security.
* Expanded cargo security awareness.
* Expediting the legitimate flow of passengers and cargo between countries.
* Greater technology awareness between CBP and foreign counterparts.
* Increased passenger security for airlines of both countries.


Source: US CBP
___________________________________


Business
Changing the Hiring Process

Legislation providing enforcement tools to ensure a legal workforce and end document fraud and identity theft was recently introduced under the title, the New Employee Verification Act. The Act would offer a secure and efficient way to protect employers from hiring illegal immigrants and protect employees from identity theft.

The New Employee Verification Act would replace the current paper-based, error prone work status verification process with a paperless and reliable Electronic Employment Verification System (EEVS). This user-friendly system would allow employers to enter EEVS data through an electronic portal that has already been proven effective in enhancing child support enforcement. Employers that avoid and ignore the law would face much stiffer penalties.

If you have questions about the laws governing different business practices, please contact Chester/Associates at biz@tradelawfirm.com.

Source: H.R. 5515
___________________________________

International Intellectual Property

IPR Report Card: Russia and China

The Office of the U.S. Trade Representative recently released its annual “Special 301” report on the adequacy and effectiveness of intellectual property rights (IPR) protection by U.S. trading partners.

Russia remains a focus of U.S. trade policy in the area of intellectual property. Large-scale production and distribution of IP-infringing optical media and minimally-restrained Internet piracy are the major problems requiring more enforcement action. The coming months will be critical, as Russia moves to implement a variety of improvements to which it committed as part of a bilateral agreement with the United States on Russia’s eventual accession to the World Trade Organization (WTO).

USTR also announced the results of an unprecedented year-long review of strengths and weaknesses in IPR protection and enforcement in key Chinese provinces. While the U.S. continues to work with China to strengthen that country’s IPR regime, high levels of copyright piracy and trademark counterfeiting remain of concern. The U.S., Canada, EU, Japan, and Mexico recently sought consultations under the WTO to address a number of discrete deficiencies in China’s IPR regime.


Source: USTR
___________________________________

Trademark
New World Records

A record 39,945 international trademark applications were received in 2007 by the World Intellectual Property Organization (WIPO), representing a 9.5% increase on figures for 2006. Applicants from Germany, for the 15th consecutive year, led the list of top filers, followed by users in France, the United States of America (USA) and the European Community (EC).

China remained the most designated country in international trademark applications reflecting increasing levels of trading activity by foreign companies in China.

The largest share of the 39,945 international trademark applications received by WIPO in 2007 was filed by companies in Germany (6,090 applications or 15.2% of the total). These were followed by companies in France, which accounted for 3,930 applications or 9.8% of the total. Users in the USA ranked third with 3,741 or 9.4% of the total representing an 18.8% increase.

Are you interested in trademark protection? Contact Chester/Associates for all your trademark needs at ip@tradelawfirm.com.

Source: WIPO
___________________________________

Business

SBA Announces Emerging 200

The U.S. Small Business Administration recently announced the selection of 11 cities to participate in the Emerging 200 initiative, a jobs and growth stimulation effort targeting promising inner-city small businesses. The designated cities where the program will begin are Boston, Philadelphia, Baltimore, Memphis, Atlanta, Chicago, Milwaukee, Albuquerque, New Orleans, Des Moines and Oakland.

Research shows that small firms with fewer than 20 employees created 80 percent of the net new jobs in the economy from 1990 to 2003, and also that small businesses in inner cities added nearly three times the number of new jobs than larger companies between 1995 and 2002.

The SBA Emerging 200 initiative will enable entrepreneurs from the 200 companies to participate in an intensive and comprehensive curriculum focused on developing winning, local strategies and attracting capital to fuel growth.

If you have questions about resources available for starting a new business, contact Chester/Associates at biz@tradelawfirm.com.


Source: SBA




No claim to government works. Otherwise, © Chester/Associates, PLLC 2007

The material in this newsletter is for informational purposes only. It is not legal advice, and does not create an attorney-client relationship. To subscribe, or to be removed from this subscription list, send an email to: chestersworld@tradelawfirm.com.

---------------------------------------------------

Chester/Associates, PLLC
Trademarks — Transactions — Trade
6060 N. Central Expressway, Suite 560
Dallas, Texas 75206
Ph 214.800.2845
Fx 214.242.3769
Em jfchester@tradelawfirm.com
Toll Free 877.34.WORLD
www.tradelawfirm.com