On June 21, the U.S. Supreme Court decided South Dakota v. Wayfair, allowing states to tax online sales even if the retailer does not have a physical presence in the state. This decision, abandoning a 26 year-old precedent (based on a case heard 25 years before that) has shaken the retail industry. This case will create new challenges for online retailers, and is being welcomed by their brick and mortar competitors. The focus of this development has been on the online sale of goods, but it will also impact the software and cloud computing industries as well, forcing this sector of the economy to also face the changed online tax landscape.
In a recent article (Hebrew) on the rapidly evolving food-tech industry in Israel, Barry Schindler analyzed the status of M&A in the industry, stating that food-tech companies are still very young, which is why investments tend to be smaller compared with parallel companies in the bio and hi-tech industries. He continued to say that we will be seeing more significant M&A activity with regard to Israeli food-tech companies, thanks to their significant development.
Barry J. Schindler is the co-chair of Greenberg Traurig’s Global Patent Prosecution Group and an active member of the firm’s Israel Practice. Barry works with food-tech and other technology based companies in Israel on a regular basis
Team of GT attorneys represented Canon Inc. in their first ever acquisition in Israel.
The Japanese giant acquired Israeli Video Analysis Company BriefCam.
Leading the deal were Tel Aviv office shareholders Joey Shabot and Ephraim Schmeidler. Additional team members in Tel Aviv included Aaron Katz, Jonathan Orlinsky, Devora Snyder, and Saar Warner-Lipton. In the United States, the team included Barry Schindler, co-chair of Greenberg Traurig’s Global Patent Prosecution Group, as well as Josh Malino, Lennie Bersh, Mindy Leathe, Noam Lipshitz, Stephen Pepper, Cyril Brennan, Marc Harrison, and Zack Luber, as well as George Qi, co-managing shareholder in the firm’s Shanghai office.
GT is the only major international firm with an office in Israel.
David J. Dykeman authored an article titled “5 Tips to Protect Your Medtech Startup’s Innovations.” The article was published in Medical Design & Outsourcing as well as MassDevice.
In our Feb. 9th blog post, we highlighted some of the amazing technology being used at the 2018 Winter Olympics in Pyeongchang, South Korea. While awe-inspiring, the use of these technologies can give rise to legal challenges that may need consideration.
Effective May 25, 2018, the European Union’s General Data Protection Regulation (GDPR) imposes sweeping new requirements for many website operators that collect and process information about individuals living in the European Economic Area (EEA). U.S. companies with e-commerce and other web activities reaching persons living in the EEA need to understand GDPR, since penalties for violations can reach the greater of four percent of global revenue or EUR 20 million.
The CFTC has asserted that Bitcoin is, and other virtual currencies may be, commodities under the Commodity Exchange Act. As such, pursuant to Section 2(c)(2)(D) of such Act, “off exchange” financed retail transactions in virtual currency are prohibited unless an exception applies. One exception found in Section 2(c)(2)(D)(ii)(III)(aa) provides, in relevant part, that such a prohibition shall not apply to a “contract of sale that results in actual delivery [of the commodity] within 28 days.” On December 15, 2017 the CFTC issued a proposed interpretation and requested comments on the meaning of “actual delivery” in the context of virtual currencies and retail financed transactions.
This GT Advisory discusses whether secured financing can be maintained while satisfying the CFTC’s interpretation of “actual delivery”. Moreover, the advisory considers whether the “actual delivery exception” is available for retail finance transactions that are not “contracts of sale.”
To read the full GT Advisory, please click here.
Florida Governor Rick Scott recently was in Israel leading a delegation of business and academic leaders, under the auspices of Enterprise Florida, focused on enhancing economic development and trade between Florida and Israel. GT, which has eight offices in Florida, is the only international law firm with a registered, full-service office in Israel, and had two attorneys, Fred Karlinsky and Gary Epstein, included in the delegation. GT had the opportunity to participate in the delegation programming. In addition to hosting a client dinner with the governor and delegation members, Gary also spoke about legal aspects of doing business in Florida and participated in a panel discussion on Florida as a Gateway to Latin America. Additionally during the trip, the delegation was also hosted for a dinner at the home of Simon Falic, a client of the Miami and Tel Aviv offices, attended a reception at the residence of the U.S. Ambassador to Israel, David Friedman, visited Yad Vashem and Har Herzl, where a wreathe was laid at the tomb of Shimon Peres, toured a desalination plant designed and operated by IDE, a client of the firm, and engaged in various other activities.
In Tel Aviv, Greenberg Traurig has hosted or participated in multiple economic missions from various jurisdictions, including Nevada, Virginia, Miami-Dade County, and numerous others.
Best wishes for a wonderful Chanukah!
חנוכה שמח מגרינברג טראוריג
On Nov. 22, UK Chancellor Phillip Hammond announced dramatic changes to the UK real estate market in the 2017 Budget. The Government has announced an intention to extend the scope of UK tax so that disposals of all UK commercial and residential property by non-resident companies, JPUTs, individuals, and other persons are subject to UK tax with effect from April 2019. In addition, the Budget proposes to extend the UK tax net to profits derived by non-residents on disposals of companies, JPUTs and other vehicles, including REITs and funds, which derive over 75 percent of their gross value from UK property. Companies will be subject to corporation tax and other non-residents will be subject to capital gains tax.