EU draft directive on privacy

Privacy laws – enforcement to get teeth ?

We may all agree that data protection and privacy laws are becoming an increasingly important area of law, as brought into very sharp focus by the extent of the News of the World hacking scandal.

The problem with data protection, on an everyday basis, is the sheer scale of the problem. It is one thing having laws in place, another thing entirely to police those laws when the resources needed to do so consistently would need vast resources.

The Data protection Act has been around for some time, and from time to time there are indications and posturing suggesting that the Information Commissioners Office (ICO) plan to get tough. The difficulty however is that most small businesses don’t really take this seriously. Many are still partially if not fully unaware of their obligations, and those that are, may understandably think there is safety in numbers. Most businesses understand the threats to their business by data theft but few really understand or implement the requirements to protect data of customers and others in the way in which the Act requires.

So, we take with a  pinch of salt the latest development whereby the European Commission is pushing for the power to fine businesses up to 5% of  turnover for breach of privacy laws. This would be actioned under the Data Protection Directive which will be published in daft in early 2012.

This planned change is clearly largely aimed at larger organizations and is also mooted to contain stipulations, in draft, that would mandate organisations with over 250 employees to have full-time staff dedicated to data protection.

In the current economic conditions, these onerous provisions may prove to be a political hot potato with companies of all sizes struggling just for survival. Don’t get us wrong, data protection and privacy are very important, but until there is a consistent and sensible approach, we don’t think the issue will be improved for the protection of consumers, which is the ultimate aim surely. As things stand, this looks reminiscent of the confused and complicated approach to Health and safety law, with many small companies not even aware of obligations or understanding them in a practical and sensible way.

What do you think ?

Hands still in the cookie jar ?

Hands still in the cookie jar

The EU Privacy and Electronic Communications Directive came into force earlier this year but businesses were given 1 year to get their act together before any enforcement would be considered. Many readers will be aware that so-called cookies provide a wealth of data for website owners who know what they are doing and allow very targeted marketing to that person.

You may have noticed that when you visit websites, you may mysteriously see adverts for products or similar products you looked at days or weeks ago. This is due to cookies. However, on the other side of this coin is the fact that many think this is a gross invasion of privacy, especially as many people are unaware that data is being collected.

The basis of the new law is that cookies can only be collected if the visitor is specifically made aware that this will happen and given the option of agreeing to this or leaving the site. This in many cases means pop-ups on a website, something which many find frustrating and which reduces the speed and usability which has made the internet such an indispensable daily tool.

 The Information Commissioner’s Office (ICO) has released some new guidance for business this week since it appears that many businesses are still either completely unaware of the new rules, ignoring the rules or struggling to comply. The ICO has indicated that even when the 1 year grace period is over, there will not be a hard approach to compliance but this could perhaps be taken as a signal by many businesses not to take the law seriously, especially given the resources needed to properly police the law would be immense given the millions of websites just in the UK.

This is an interesting area and one we will return to in the New Year.

If you are a business taking steps to comply or struggling to comply with the legislation, we would love to hear from you with details of your approach. If you have any views on whether this legislation is likely to be properly enforced or not, again, please contribute to the blog.

How ignorant are the public about online activity ?

Ignorance of the law & online activity

It is worth remembering that for most if not all aspects of English law, ignorance of the law is not a defence. When it comes to online activity, there seems to be a combination of factors in that the public think that the internet is perhaps unpoliceable, that there is safety in numbers and perhaps other factors.

A study of 2,000 Brits made the following findings :-

  • 41% only are confident that what they do online is lawful
  • Only 17% of  16 to 24 year olds were similarly confident
  • Only 30% of web users confirmed that they understand what copyright means and that it is not legally permissible to copy material like photos, music or videos
  • Over 60% state that they are unaware it is a serious unlawful and possible illegal activity to break the terms of an injunction order and a similar number think that you can say what you like about others on the web.

We find the above figures really surprising – is there perhaps a degree of denial going on here ? Just a hunch but our own view is that whilst it is probable that a percentage of younger people are really pretty ignorant of the law, what is more likely a driving force is a general perception that the internet is too big and too fast moving to result in consequences and that there is safety in numbers.

Both of these assumptions are wrong. When it comes to unlawful downloading of music, some big companies are deliberately flexing their muscles in showing they will go after numerous people for breaches and the types of consequences that can arise is well evidenced by the prison sentences handed down for individuals who incited the London riots online.

What do you think about this issue ?

IP Rights – the basics

Intellectual Property Rights overview

Your intellectual property rights are one of your most valuable business assets. If you fail to protect your intellectual property rights, you may be failing to protect your business. A failure to protect your own rights will lead to other taking advantage of your competitive edge.

 If others are trying to copy anything that you have protected or are trying to use these rights without your permissions, it is called infringement. Infringement such as counterfeit goods can ruin a company’s goodwill in the marketplace.

As well as protecting your own intellectual property rights, you should ensure that you do not infringe anybody else’s rights.

Like any form of property it is possible to buy, sell and licence intellectual property rights.

Patents

If your company develop an inventive product or process which is innovative for your industry it will be possible to apply for a patent. A patent will protect your product or process and forbid anyone, apart from your company using or selling it without your permission. A patent will ensure that you will have the exclusive right to sell or use the product or process within the jurisdiction that the patent was invented.

Patents are granted for the territory in which they are applied within, therefore if you apply within the UK you will be granted exclusive use within the UK. It is possible however to apply for protection within the whole of the EU by virtue of the European Patent Convention or the Patent Co-operation Treaty.

Before you apply for your patent it is very important that you don’t publicly reveal your product or process.

There are certain restrictions in place for what is not able to be patented, these include:

  • Method of medical treatment or diagnosis;
  • A way of performing a mental act, playing a game or doing business;
  •  A literary, dramatic, musical or artistic work;
  •  A scientific or mathematical discover, theory or method;
  • A presentation of information, or some computer programs;
  • Anything immoral or contrary to public policy.

 A patent can be owned by the inventor, the inventor’s employer or anyone else who has bought or licensed the rights to the product or process.

A patent can last for up to 20 years but it does need to be renewed every year, a renewal fee will be due.

Trade Marks

 A trade mark is a sign which separates the goods and services of your company to its competitors. A trade mark can include:

  •  Words;
  •  Logos;
  • Pictures; or
  • All of the above.

If you successfully register your trade mark you will have the right to use said trade mark within the classes that it is registered. You will also be entitled to take legal action against anyone infringing said trade mark.

For it to be possible for a company to register a trade mark it must be:

  • Distinctive to your specific goods and services;
  • Not the same as any earlier trade mark you may have registered.

 There are restrictions in place as to what can and cannot be used in a trademark for it to be registered. An example of this will be pictures, logos or words which are likely to cause confusion to the public if used as a trademark. Trade marks which describe the goods in question by the use of a characteristic such as the geographical location of the goods or services are likely to be rejected. Trade marks to which the overwhelming characteristic is something to which has become standard in your line of work may also be rejected in the process of registering. It goes without saying that trade marks which are against the law or deceptive will not be freely registered.

It is possible that an application for a trade mark will be rejected by the owner of an earlier mark, if they consider that your trade mark is confusingly similar. On www.ipo.gov.uk there is a register of current trade marks to which it is advisable to check before submitting your application.

It is possible for two trade marks which are identical to be registered if they are within different classes of goods.

To apply for a trade mark your registration needs to be submitted to the Trade Marks Registry. This will register your mark within the UK. To get further trade mark protection within the EU, a trade mark may be registered with the Office of Harmonisation in the Internal Market (OHIM) for a Community Trade Mark.

It is possible to enforce some common law rights over your trade mark if you allow it to remain unregistered, however, you are far more protected if the trade mark is registered. Once registered you will need to pay a renewal fee every 10 years, however, a trade mark can last indefinitely .

To register a trade mark within the UK a TM3 form along with a fee will need to be submitted to the Trade Mark Registry.

 Copyright

 A copyright relates to the actual expression of an idea rather than simply the idea itself. A copyright can protect sound recordings, films, broadcasts, musical, dramatic and literary work.

 A copyright will arise automatically and you do not have to specifically apply for one to be registered. A © is sometimes exhibited to show a copyright and this will express when it was created and by whom.

It is a good idea to get a solicitor to look after a dated copy of the work to show that you have created and when it was created. This may mean that dispute which may arise over who owns the copyright is easily finalised.

A copyright is usually owned by the individual who created the piece of work, however, different rules will apply when the work was created in the course of employment. The general rule is that if the work was created in the course of employment then it is to be owned by the company, unless the employee or contractor’s working agreement specifies otherwise.

Design Rights

A design right is the physical appearance of an item, a design right may apply to industrial, commercial and hand crafted items. A design right has no concerns over how a product works or even if it works at all, just how it looks and the design of it.

You can register your design which will offer protection within the UK for a period of 5 years, to be renewed every 5 years for a period of 25 years. A design right unlike copyright will not arise automatically and an application will need to be submitted.

It is possible to get protection for the whole of the EU by way of a Registered Community Design, this is also awarded for an initial 5 years with a maximum protection period of 25 years.

Further, it may be possible for you to apply for a UK Design Right which will prevent any company or individual from copying your design. This right will last for up to 15 years from the creation of the design.

Unregistered community design is an automatic right which will protect your right for 3 years from the date is it made available to the public. You do not need to apply for this right.

Tweets can lose you your job

Tweeting your way to Unemployment – the US experience so far

It is no secret that today’s social society in no longer in the bar, but is online. With the rise of many major social media sites such as Twitter, Facebook, and Myspace, the web has made it easier to connect, contact and follow friends and families. It may however, also cost you your job.

The big controversy today is the use of social media in employment prescreening and employee evaluation. Your latest tweet about the girl you don’t like, last image you uploaded of you at a frat party hitting the beer bong, or even the use of emoticons, can cost you future employment or even worse, cause you to lose your current job.

In a study conducted in 2009 of 2,600 companies, 45% said they used social media sites to evaluate candidates for employment. 35% of them admitted that what they saw caused them to pass on offering the person a position. It is a known fact that you only get one chance to make a first impression, however, what if that first impression isn’t face to face? What if your candidacy is determined based solely on your Facebook page? How can you avoid missing your dream job over a blurb about your ex?

In this same study performed by Carerrbuilder.com, 53% of the companies stated they denied employment based on provocative or inappropriate photos. It is no secret that the internet offers the ability to “show what you got” but in a declining job market, you may want to cover up.

Out of these companies 44% claimed they denied employment based on photos showing the applicant drinking alcohol or using illicit drugs. It should be common sense that posts showing your new bong may cause controversy, however when you are looking for a company to consider you as a serious candidate for employment, you may want to remove them.

35% of the companies stated that they denied the candidates based on remarks and comments made about previous employers. In a world of social media, your Facebook page may one day replace your resume. If you want to be seriously considered for employment, boss bashing may not be the best route.

The rest of the study showed that 29% demonstrated poor communication skills, 26% posted discriminatory comments, 24% lied about their qualifications, and 20% shared confidential information about their previous employers. These were all reasons for the company to skip over the candidates.

At this point in time it is completely legal to utilize social media when screening for employees. In turn it there is no law against terminating an employee based on what was seen online either. If you go home and tweet about your boss you may find yourself packing your desk in the morning. Once you post online you turn your personal life into public information. Keeping a professional appearance online may keep your professional life in line.

Since this revolution in screening, there have been companies popping up around the globe specializing in social media background checks. Their sole purpose is to search potential candidates on all the popular social media sites and evaluate them based on the information found. There are no laws banning the use of this method coming in the near future as policing who views your page would be near impossible. So the best course of action when searching for a job would be to clean up your social media sites and become more presentable to those that may hire you.

Trademarks for beginners

Trade mark for beginners

New businesses often fail to recognise the value of strong trade marks and can easily overlook the need to secure trade mark protection. You are starting a new business. You have a good business idea and a name and/or logo that you think will help to sell your product to your client base. Remember that :-

  • Your brand name or company name is valuable so is worth protection.
  • registering your company name at Companies House provides limited protection to your company name but none to your logo and no protection for your trademark however distinctive. Importantly it gives you no rights in the name.

Don’t be put off. Register a trademark! It’s a relatively simple process . It distinguishes you from the crowd and may just capture the attention of the market and help your business to fly

A registered trademark permits you to display the mark on your goods and on all your publicity materials and premises.

It bars the use of the same or similar marks in relation to a business of the same or of a similar type or on very similar goods and services. Also worth noting is that :-

  • Trade marks are inexpensive and have a shelf life of 10 years
  • A trademark should distinguish the trademarked goods or services from those of competitors.
  • To check whether your trade mark is being used already, it is always advisable to search the Intellectual Property Office’s database at www.ipo.gov.uk/tm/t-find/t-find-text/. However, also be aware that such a search will only show obvious matches and is not consequently a definitive answer.
  • The ® mark  can only be used if you have a registered trademark whereas the symbol ™ is useable with both registered and unregistered trade marks.
  • Trade marks are limited to territories so a mark registered in UK affords protection only  in UK. If you have a product or service with international appeal it may be worth registering your trademark in other jurisdictions.
  • Avoid descriptive and generic marks or words and phrases in common usage
  • Your mark must not deceive or confuse potential customers
  • The best choice is imaginary or fanciful words or phrases
  • Proper names and words describing goods and services may be registered as a trademark.

There are 45 classes in which you may want to register your trademark .

Thanks to David Swede, commercial solicitor from Darlingtons Solicitors, for this article.

Corporate pass the parcel

HR director’s role in hacking inquiry – the blame game

No one has yet been found liable in civil terms or guilty in criminal terms, but the inevitable pleas of ignorance and finger pointing have started already. Aside from the considerable distaste caused by the hacking itself, this reminder of the darker side of human nature and survival instinct are also quite depressing.

In some cases, whilst no judgments can be made at this stage, it would seem surprising if the individuals did not know more than they acknowledge and excuses based on ignorance or stupidity would seem somewhat facile.

As an example of who may be in the firing line, along with numerous others, may well be Daniel Cloke , Head of news International HR and a director.  Due to his senior and integral role in the events surrounding the 2007 internal investigation into the affair, it is difficult to see what excuse he can make for examining 2,500 internal e-mails and finding no “smoking gun” . Mr Cloke may well argue that if the company’s city lawyers, who also saw these documents, didn’t find anything wrong, he was entitled to take their advice and come to the same conclusion… and so the game of pass the parcel may continue… it will be interesting to see if such an argument will hold any water if any civil or criminal proceedings are brought against Mr Cloke in the future.