Protecting IP, Finding Investors, Navigating Legislation Drive Discussion at Foley’s Emerging Automotive Technologies Program

emerging

Fully connected and self-driving cars are here. Improvements to alternative energy sources for vehicles continue to advance at a rapid pace. The automotive industry is potentially facing dramatic new legal and regulatory challenges. And the road ahead shows no signs of slowing down.

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Equity Compensation and the Rise of Restricted Stock Units

RSUs

In recent years, equity compensation programs have increasingly been using restricted stock units (RSUs).  A manufacturing company recently made news when it granted RSUs worth millions of dollars to thousands of its employees in connection with its IPO.  Statistics show the trend toward RSUs is widespread.  In a recent survey of 325 companies, 72% reported using RSUs in their long-term incentive compensation programs compared to only 37% ten years earlier.[1]  At the same time, the prevalence of restricted stock – a similar but less flexible form of equity – decreased significantly, falling to 13% of companies in 2017 from 41% ten years earlier.[2]

What exactly are RSUs?  How do they differ from restricted stock?  And why are they so popular?  Read on to find out.

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Your Webpage Is About to Violate the Law -- And Other Changes to Prop 65 Warning Requirements

Prop 65

Big changes are coming to a regulation that, while well meaning, cost businesses selling products in California more than $50M in 2017 and similar amounts in prior years.  California’s Safe Drinking Water and Toxic Enforcement Act of 1986, more commonly known as Proposition 65 (“Prop 65”), is getting a makeover – new warnings, shifting burdens and more specific internet and catalog safe harbor requirements that take effect August 30, 2018.  Unfortunately, the makeover will not deter Prop 65 “enforcers” and their counsel who will continue to burden business with enforcement litigation that does little to further the stated goals of the regulation.  And now with the new internet and catalog warning requirements, these individuals can “hunt” from the comfort of their own homes.  What does this all mean?  Now more than ever, businesses that sell products in California should seek advice from experienced counsel to help them navigate and comply with this challenging and changing regulation.

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New Product Safety Requirements and Recall Procedures Adopted in Mexico:  Time for Manufacturers to Update their Compliance Programs in Mexico

factory

The commercial and legal environment on product safety in vehicles, auto parts and other products has substantially changed in Mexico in 2018. Manufacturers carrying out business activities in Mexico should now be implementing increased efforts to comply with and properly react to new legislation, policies, recall procedures and safety standards that are now applicable in Mexico.

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Shhh ... Don't Tell Anyone: Tips on NDAs

NDA

The Non-Disclosure Agreement (“NDA”) is a document that is very often prone to misuse in commercial practice. Often, when business teams from two companies get together, the first thing they do, almost as a box-checking measure, is toss over one company’s standard two-way NDA, without much thought as to whether the NDA should, in fact, be a two-way NDA or whether there is even any need for the NDA at all.

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