Business Briefs

Eminem – importance of IP indemnities in agreements

The Court of Appeal[1] has ruled that the National Party must pay Eight Mile Style, the production company of prominent rapper Eminem, damages of $225,000 for breaching the copyright of Eminem’s song ‘Lose Yourself’. This decision highlights the importance of including intellectual property (IP) indemnity clauses in a contract.

An IP indemnity is designed to protect against loss for a breach of another’s IP rights. In this case, the National Party had bought the track ‘Eminem Esque’ to use in its 2014 election campaign advertisements. It relied on assurances from the licensor that it was not breaching copyright. The court found that using the track was, indeed, a breach of copyright.

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Employing people with a past

How the clean slate legislation works

Employing staff is never a simple process. Finding people with the right skills and personality to fit into your team can be challenging. Today’s employers go through a rigorous process when recruiting; most believe it’s better to put time into getting the right person than to have to deal with the consequences if things don’t work out.

One aspect of all staff recruitment is background checks on applicants. This is more important in some roles than others.

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Are restraint of trade clauses worth the bother?

Have an expertly-drafted agreement

Restraint of trade clauses are common in the sale and purchase of a business and in some employment agreements. In a business context, they offer protection to a buyer who has acquired a business and prevent the seller from directly competing against the buyer. A restraint provision in an employment context is designed to protect the employer’s business interests when key employees leave. There’s a general perception that these clauses are difficult to enforce, so why bother?

Non-competition restraint – sale of a business

The purpose of a non-competition restraint in regard to the sale of a business is to ensure that the purchaser is able to retain the benefits of the business they have purchased including existing and potential customers. It prevents the seller from establishing, working for or being involved in a similar business. Non-competition restraints are routinely used in the sale and purchase of businesses.

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Over the fence

Cattle rustling now a crime

As noted in the Autumn edition of Rural eSpeaking, the newly minted Crimes Amendment Act has introduced two new offences aimed at addressing cattle rustling. The legislation came into force on 12 March 2019.

rustling

Federated Farmers has estimated that livestock thefts cost the farming community more than $120 million every year. Cattle rustling also causes biosecurity concerns associated with the movement of stock as well as the safety of farmers as firearms and other weapons are often involved with this kind of offending.

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Resource management system review

Complex task ahead

In contrast to the review of the NAIT system that we discussed in our previous post, it will be challenging for the government to get a consensus on the recently announced review of the resource management system. The four leading political parties have differing views on how to manage resource management issues. In particular, the Coalition government has three partners – all of which have somewhat contrasting policy positions.

The review will be undertaken by a resource management review panel made up of people with skills in relevant areas. The panel is chaired by Tony Randerson QC, a retired Judge of the Court of Appeal. Additional members will be appointed in the coming months.

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NAIT review

Significant changes post-M.bovis

The NAIT (National Animal Identification and Tracing) system was first introduced in 2012 and came into effect progressively until it was fully implemented on 29 February 2016.

NAIT

Any completely new system is likely to need a review after being in operation for a period of time. Within 18 months of NAIT’s final implementation date, the outbreak of Mycoplasma bovis in this country gave the regime a real test and, not surprisingly, the system was found wanting in some respects.

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Property briefs

Building report conditions

If you have read an agreement for sale and purchase, you are likely to have seen the term ‘building report condition’. But do you know what a building report condition actually allows you to do, and what it doesn’t?

A building report condition gives you, as the buyer, the opportunity (10 working days is the standard, but this can be lengthened or reduced) to have a suitably qualified building inspector go through your soon-to-be-settled property and report on various elements of the building including the integrity of the construction materials used and its weathertightness.

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The secret lives of tenants

The ‘KFC test’ and tenant privacy

Following publicity in 2018 that some property managers were using the ‘KFC test’ to vet prospective tenants, landlords’ protection of their tenants’ privacy has come under scrutiny by the Privacy Commissioner. Any unlawful intrusion into your tenants’ private lives can be a costly mistake. If you are a landlord, it is timely to ask yourself, “How can I best protect my property without risking a privacy breach?”

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Subdivisions

Steps to take for a successful project

Subdivisions are more common than you think. A subdivision can range from the carving up of hundreds of acres of rural land for housing, developing land in a prime commercial area, selling half your quarter-acre section or simply wanting to extend your boundary a few metres. Whatever the scale of your subdivision, there is a common thread of stages to be ticked off – we explain below.

subdivision

Getting your land ready to subdivide

The first thing is to line up your professionals – discuss the project with us, arrange finance with your bank, consult your accountant and speak with a surveyor. If you are undertaking a large commercial development, you may want to line up buyers early on. A real estate agent can help with this so that you avoid cashflow issues half way through.

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Postscript

Claiming legitimate business expenses

With the recent media coverage about the claiming of business expenses, we thought it timely to remind you to always keep in mind what expenses are tax-deductible and what are not.

expenses

If you’re self-employed, there is very useful information here at Business NZ: https://bit.ly/31WdFgS

For those of you who work in a corporate environment, your organisation will no doubt have an expenses policy to ensure all claims are legitimate.

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