On 26 June 2023, the International Sustainability Standards Board (“ISSB”) published its inaugural International Financial Reporting Standards Sustainability Disclosure Standards (the “ISSB Standards”) (read our previous blog post on this here).  In August 2023, the UK Financial Conduct Authority (“FCA”) published Primary Market Bulletin 45, confirming its intentions…

Continue Reading Corporate Reporting in the UK: The International Sustainability Standards Board

August 28, 2023

Latin America, Public Policy

Executive Summary:

  • The new fiscal framework introduced by President Lula da Silva in March 2023 was approved by the Brazilian National Congress, the first major legislative victory for the administration.
  • Congress made adjustments to the text in order to reduce the framework’s main vulnerability: its over reliance on revenue increase.
  • As a next step, the administration will likely continue to push its revenue-increase agenda to sustain the new framework while congressional leadership might opt for a debate on spending cuts, including a potential reform of the federal government payroll cost.

Analysis:

On Tuesday, August 22nd, the House of Deputies of the Brazilian National Congress held a final vote on President Lula da Silva’s proposed new fiscal framework for the country (discussed in this blog post). The bill was approved with 379 votes in favor and 64 against, a demonstration of the political strength of the Speaker of the House, an ally of President Lula.

The new fiscal framework is part of an economic policy focused on three main goals: fiscal stability to reduce inflationary pressures and allow the Central Bank to continue to reduce the benchmark interest rate (SELIC), tax revenue increase to sustain the new framework, and the approval of a major tax reform to simplify the Brazilian tax system on consumption (discussed in this blog post).

The approval on Tuesday is the first major legislative victory of the administration, that has seen more successes than losses in its initial months (discussed in this blog post).Continue Reading Brazil’s New Fiscal Framework Approved by Congress

Update on the Digital Asset Industry

Despite reduced enthusiasm in the trading markets over the past couple of years, technological innovation and advancement from all corners of the crypto[1] space has continued to thrive—including layer 2 scaling solutions for the Ethereum and Bitcoin blockchains, improvements to crypto mining equipment, novel applications for non-fungible tokens (NFTs), decentralized finance (DeFi) protocols, and decentralized autonomous organizations (DAOs), just to name a few.[2] 

As we discussed previously, while open source innovation is a tenet of the crypto industry and the underlying blockchain technology that empowers it, companies involved in this technology should consider securing intellectual property rights for their innovations.  This could include obtaining patents for inventions that complement or are adjacent to open decentralized public ledgers such as Bitcoin and Ethereum.

Patenting Activity for Cryptoassets and Other Blockchain Technology

As the graphs below indicate, patenting activity for cryptoassets and other blockchain-related innovations experienced a year-over-year increase for several years, though activity has tapered more recently.

The diagram below indicates that major payment processors (including Mastercard, VISA, and Alipay), banks (Bank of American and Capital One), and various retailers and technology conglomerates are among the top applicants for patent filings in this space.Continue Reading Patenting for Blockchain and Crypto Tech

Earlier this month the Biden Administration released its long-anticipated Executive Order on Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern (“EO”), which imposes (1) prohibitions on certain outbound investments in the semiconductors and microelectronics, quantum information technologies, and artificial intelligence sectors, and (2)…

Continue Reading Covington Alert: U.S. Launches Outbound Investment Screening Targeting China with Further Developments Forthcoming

The Federal Election Commission (FEC) officially dipped its toes into the ongoing national debate around artificial intelligence (AI) regulation, publishing a Federal Register notice seeking comment on a petition submitted by Public Citizen to initiate a rulemaking to clarify that the Federal Election Campaign Act (FECA) prohibits deceptive AI-generated campaign…

Continue Reading FEC Seeks Comment on AI Petition After Earlier Deadlock, But New Rules Remain Elusive

Introduction

In early 2023, two final judgments in three related intellectual property matters were made public by the Supreme People’s Court of China (the “SPC”).[1] These judgments represent a significant development in the protection and enforcement of intellectual property rights (“IPRs”) in China, with particular implications for foreign-invested enterprises. This article provides a brief review of these high-profile cases and offers recommendations for foreign companies navigating the commercial landscape in China.

The Cases: A Brief Overview

Golden-Elephant Sincerity (“GES”), a foreign-invested chemical company, holds proprietary rights to trade secrets and two patents concerning the production of melamine.[2] In April 2014, it was revealed that Shandong Hualu-Hengsheng Chemical Co., Ltd. (“SHH”) was involved in developing a melamine production line that was strikingly similar to GES’s own design. Mingda Yin, GES’s former chief engineer, was implicated in the unauthorized transfer of confidential information to SHH, raising serious legal and ethical concerns.

Subsequent investigations revealed that Mingda Yin may have provided GES’s confidential information to two additional companies responsible for the design and/or engineering of SHH’s production line, Ningbo Fareast Chemical Group Co., Ltd. and Ningbo AT&M Environmental & Chemical Engineering Design Co., Ltd.

GES, along with other plaintiffs, filed a series of civil lawsuits against the alleged infringers for patent infringement and misappropriation of trade secrets.[3] While the lower courts’ judgments were not entirely favorable to GES, the cases were then appealed to the SPC, and the SPC overruled the judgments of the lower courts and granted enhanced remedies in support of all of the plaintiffs’ requests.Continue Reading Landmark Judgments in Chinese Intellectual Property Law: Implications and Strategic Considerations for Foreign-Invested Enterprises

Updated August 8, 2023.  Originally posted May 1, 2023.

Last week, comment deadlines were announced for a Federal Communications Commission (“FCC”) Order and Notice of Proposed Rulemaking (“NPRM”) that could have significant compliance implications for all holders of international Section 214 authority (i.e., authorization to provide telecommunications services from points in the U.S. to points abroad).  The rule changes on which the FCC seeks comment are far-reaching and, if adopted as written, could result in significant future compliance burdens, both for entities holding international Section 214 authority, as well as the parties holding ownership interests in these entities.  Comments on these rule changes are due Thursday, August 31, with reply comments due October 2.

Adopted in April, the FCC’s item proposing the new rules also includes an Order requiring all holders of international Section 214 authority to respond to a one-time information request concerning their foreign ownership. Although last week’s Federal Register publication sets a comment deadline for the proposed rules, the reporting deadline for the one-time information request has not yet been established.  However, because the FCC has fulfilled its statutory obligations regarding the new information collection presented by the one-time reporting requirement, carriers — as well as entities holding an ownership interest in these carriers — should prepare for the announcement of the reporting deadline.

The FCC’s latest actions underscore the agency’s ongoing desire to closely scrutinize foreign ownership and involvement in telecommunications carriers serving the U.S. market, as well as to play a more active role in cybersecurity policy. These developments should be of interest to any carrier that serves the U.S. market and any financial or strategic investor focused on the telecommunications space, as well as other parties interested in national security developments affecting telecommunications infrastructure.

Proposed Rule Changes for International Section 214 Authority

The FCC’s proposed changes to its regulation of international Section 214 authorizations generally concern additional compliance, disclosure, and reporting requirements. The FCC’s proposed rule changes are far-reaching, but the most notable of the proposals concern the following:Continue Reading Comments Due August 31 on FCC’s Proposal to Step Up Review of Foreign Ownership in Telecom Carriers and Establish Cybersecurity Requirements

Germany’s hospital system is reported to be of high quality but is also very expensive by international standards. Hospitals and healthcare payers such as health insurances are exposed to increasing economic constraints. One particular point of criticism is, for example, the current system of Diagnosis Related Group (DRG)-based fees.

Patient treatments are compensated based on the DRGs which effectively leads to a lump-sum payment system per diagnosis (with certain exemptions). This system has pros and cons. As a downside, it is reported to create incentives for over-treatments to generate DRG-based fees per patient.

At the same time, many hospitals in Germany are at risk of closure and insolvency due to financial challenges. The German federal states have thus asked the federal government for financial support to finance the restructuring of the hospital system and prevent hospitals from bankruptcy.

German federal and state governments have been discussing an intended hospital reform for months. Provided that no additional money flows into the healthcare system, the principle for this reform is “outpatient care before inpatient care”. The financial volume incentive shall therefore be minimised and a concentration on larger hospitals and medical institutions shall optimise or at least improve the current structures and quality of medical care in Germany. This shall also be accompanied by a reduction of the general number of hospitals in Germany.

On 10 July 2023, the key objectives of the envisaged hospital reform plans (Eckpunktepapier: Krankenhausreform) have been agreed on: (1) Ensuring security of supply (in particular public responsibility for ensuring the provision of healthcare, so-called “Daseinsvorsorge”), (2) securing and increasing the quality of treatment, and (3) reducing bureaucracy. Particularly, this is to be reflected in the following key measures:Continue Reading Germany plans significant hospital reform with broad impact on life sciences companies

This note provides highlights of the UK’s recently released and remarkably sweeping Energy Security Bill.  If enacted, the Bill will have profound impacts on energy investments and the pace and scope of the energy transition in the UK.  Before detailing the Bill, some political context may be useful.

The Uxbridge …

Continue Reading UK Energy Policy – Hedging on the Energy Transition?

On July 18, 2023, Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel announced that she has circulated a proposal to the FCC’s commissioners to create “a voluntary cybersecurity labeling program that would provide consumers with clear information about the security of their Internet-enabled devices.”

According to the text of her announcement…

Continue Reading FCC Chairwoman Rosenworcel Announces Proposed Voluntary Cybersecurity Labeling Program for Smart Devices