THIS ISSUE'S HEADLINES

U.S. Supreme Court Opens the Door to ÒGeneric-dot-ComÓ Trademarks

Why LLC Operating Agreements Protect You and Your Business


Turbocharge Your Business and Investment Decisions Ð Resource Center Expands


PLDO COVID-19 Updates and Information



U.S. SUPREME COURT OPENS THE DOOR TO ÒGENERIC-DOT-COMÓ TRADEMARKS

Booking.com, an online travel agency that books hotel reservations and provides other services to customers, filed an application with the U.S. Patent and Trademark Office (the ÒUSPTOÓ) to register the trademark ÒBooking.com.Ó The application was rejected based on the well-established principle that generic terms are not subject to trademark protection. The decision was appealed to the Trademark Trial and Appeal Board, which upheld the USPTO decision. Both found that ÒbookingÓ was a generic term on its face and adding Ò.comÓ did not add any indication of the source of the services. On appeal, the Federal District Court reversed the earlier decisions based upon all of the evidence presented, which included consumer surveys. The U.S. Court of Appeals agreed based on a finding that the public would associate the trademark ÒBooking.comÓ with the company that had filed the original application and not with online reservation services generally. The government appealed this decision to the U.S. Supreme Court. In an 8 to 1 decision, the Supreme Court agreed with Booking.com.

In his latest advisory, PLDO Partner William F. Miller, explains the Supreme Court decision and why it significantly expands trademark protection for domain names used by certain brands. To access the advisory, click on U.S. Supreme Court Opens the Door to ÒGeneric.ComÓ Trademarks. If you would like further information on this decision or other business issues, please contact Attorney Miller at 508- 420-7159 or email wmiller@pldolaw.com.

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WHY LLC OPERATING AGREEMENTS PROTECT YOU AND YOUR BUSINESS

Forming a limited liability company, or ÒLLC,Ó does not require an attorney. Articles of organization are filed with the Secretary of State and the LLC is then created; no attorney necessary. However, while registration with the Secretary of State is all that is necessary before an LLC can legally operate, in reality, no LLC should be without an operating agreement drafted by an attorney. An operating agreement dictates how the LLC will be governed and provides the terms of the relationship among the governing members. Crucially, the operating agreement also names the owners, their respective percent of ownership and how much they each contribute to start the LLC.

Admittedly, at the start of a new business, the business owners are looking for every avenue to save costs. Hiring an attorney to draft an operating agreement may seem like an unnecessary expense when there is no cash flow yet and the business partners have known each other for years. However, the decision to forego an operating agreement because you trust your partners is penny wise and pound foolish.

Several months or even years after the LLC is formed and the business started, issues often arise among business partners who have known each other for years. For example, there may be confusion about each partnerÕs responsibilities, each partnerÕs exact ownership of the LLC, or about each partnerÕs respective investments (especially when partners invest differing amounts). Without an operating agreement governing these issues in writing, the partners may have to resort to litigation to resolve their issues and recoup their investments. Litigation is costly and time consuming and can threaten the underlying business. But litigation, and the uncertainty that leads to it, can be avoided from the outset by hiring an attorney to draft an operating agreement that reflects the business partnersÕ particular needs in managing their LLC. This small investment can provide long-term stability to the business and head off disputes among partners before they occur. For more information about this issue or other business matters, please contact Attorney Joshua J. Butera at 401-824-5100 or email jbuterea@pldolaw.com.

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TURBOCHARGE YOUR BUSINESS AND INVESTMENT DECISIONS Ð
RESOURCE CENTER EXPANDS

PLDOÕs team of business attorneys routinely assist entrepreneurs and investors, whether they are seeking to start or invest in a venture; finance a new business opportunity; negotiate an investment deal; or determine the most advantageous business valuation methods. We are privileged to help and proud that often times we become long-term partners with business clients, assisting in governance and compliance matters, recommending policies and business strategies and assessing potential risks - all in order to guide and help them succeed and grow. Sharing knowledge and insight through our library of advisories and other resources is part of our commitment and services in order to help our clients make informed decisions. Three of our latest informational essays regarding legal and business issues important to entrepreneurs, owners and investors by PLDO Managing Principal Gary R. Pannone are now available below.

If you would like to learn more about these issues or have other questions or concerns, please contact Attorney Pannone at 401-824-5100 or email gpanone@pldolaw.com, and visit our online library of additional resources by logging onto Inside Business - Powered Up For Success.

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PLDO COVID-19 UPDATES AND INFORMATION

To help keep people abreast of legal issues that have arisen as a result of the COVID-19 crisis, PLDO’s teams of employment, business and estate and tax attorneys have provided multiple webinars, e-news alerts and advisories. To access our library of information, please visit PLDO COVID-19 Resources and do not hesitate to contact your PLDO attorney directly in our Rhode Island, Massachusetts or Florida offices or call our toll free number at 866-353-3310 to discuss your legal matter.

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