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May 2011

Fortune Law's Briefing Update

Dear Subscriber,  Budget briefcase

  

 

Welcome to our briefing update for May 2011. This month is all about what London is famous for - the high life! We focus on cocktails and corporate hospitality with a theme on London bars and all things liquid.

 

We act for a number of entrepreneurs and business consortia who operate in the nightclub and restaurant sector, advising them on all manner of legal issues including licensing, employment contracts, supplier agreements and financing arrangements.

 

Our client of the month is none other than Alex Kammerling, who has recently launched a new Ginseng spirit called Kammerling's. For those of you who know your alcohol, Kammerling's is distilled in a similar way to gin. 4 types of ginseng root (Red Korean, White Panax, Siberian, American) are added to a small pot-still along with freshly peeled grapefruits and 41 other botanicals (including Echinacea, Ginko Biloba, Goji berries and Schizandra) and distilled with 100% grain spirit. This distillate is then added to a herbal infusion (containing manuka honey, wormwood and gentian) and blended with annatto seeds (for colour), water and a touch of sugar to 33% ABV.

 

Confidentiality is key in our line of work so we cannot disclose anything further. However, read on to find out how and if original cocktails can be protected from being copied in our article of the month.

 

Our offer this month is a fixed fee on confidentiality agreements so you can be sure that your new business idea will be safe from unscrupulous competitors or those who can't resist sharing the next big thing. See the footer coupon below.

 

In line with the corporate hospitality theme, our legal update sets the scene regarding the new Bribery Act about to come into force and how that might affect how you entertain your clients and suppliers.

 

Further information

 

If you have any questions in relation to any of the matters set out in this briefing update or wish to speak to us in respect of any other legal issues do not hesitate to call or email us on 0207 440 2540 or info@fortunelaw.com. We are always happy to help.

  
 
Fortune Law provides businesses with "a one stop shop" service dealing with commercial property, commercial litigation, employment, corporate and commercial law.
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Issue: 16

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In This Issue
Featured Client - Kammerlings
Corporate Hospitality and the Bribery Act 2010
Cocktails and Intellectual Property
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Featured Client

http://www.kammerlings.com

 

Alex Kammerling
Alex Kammerling

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 "This has been my first time working directly with a firm of Solicitors so I don't have a benchmark, but Fortune Law have been a joy to deal with have delivered everything I have asked for and more! They are at the end of the phone when I have needed them and are quick to respond to E-mails. They understand that as a start-up company, cash-flow is tight and have been fully transparent with fees and capping certain activities so that costs don't spiral."     

Get to know us! Click here to visit our website!
Fortune Law provides businesses with "a one stop shop" service dealing with commercial property, commercial litigation, employment, corporate and commercial law.

Corporate Hospitality and the Bribery Act 2010 

Bribery Act

There has been some corporate unrest in recent months about the wide drafting of the new Bribery Act 2010 (the "Act"), which comes into force on 1 July 2011.  Much of this concern has related to corporate hospitality such as rugby matches and client parties, perhaps the most enjoyable part of working life.  The Act has been controversial in many respects. It was hurriedly pushed through under the old Labour regime and has now been re-assessed by the new Coalition government. It appears to cover everything under the sun. 

 

So, the million pound question is: if I take the Managing Director of a prospective customer or client to Wembley, am I a criminal?  Well, the answer is: maybe...

 

What is Bribery?

 

There are a number of offences under the Act, the relevant being offering, promising or giving a bribe or requesting, agreeing to receive or accepting a bribe.

 

Bribery means promising or giving a financial or other advantage to a person to induce a person to perform improperly a function of a public nature or an activity which is connected to business, performed in the course of employment or on behalf of a body of persons.  That person must be expected to perform the activity in good faith, impartially or be in a position of trust by performing it.

 

Liability under the Act is extended to senior officers, manager and directors if they consent or connive to the bribery.  Further, the failure of a business to prevent bribery by those acting on its behalf automatically places liability on to that business (with no need to prove negligence, guilt or involvement by the "directing mind and will" of the business), unless it can show that has adequate procedures in place in prevent such conduct. 

 

The penalties

 

In the Magistrate's Court, if convicted of a general bribery offence, an individual can be liable to up to 12 months in prison, a fine of up to £5,000, or both.  In the Crown Court, it's the same, but up to 10 years in prison and an unlimited fine.  A business cannot be sentenced to imprisonment, but the same fines apply.

 

An organisation, if convicted of failing to prevent bribery by a person acting on its behalf, is liable to an unlimited fine.

 

Gifts and hospitality

 

Gifts, such as cash, presents, political or charitable donations and hospitality, such as meals, hotels, invitations to arts and sporting events, can be used as bribes if there is an intention, for example, to influence a business decision. 

 

The intention that accompanies the gift is critical and the timing of the gift is important.  For example, where another body is about to award a contract, the business should be even more careful of giving gifts than it would normally be, but it should also note that a reward paid after the event can still be a bribe.  All gifts should be bona fide and reasonable. 

 

The objective of the Act is not to criminalise hospitality and promotional expenditure in the main.  For example, where clients are invited to a football match or you host a client party and this is a genuine PR exercise or designed to cement a relationship, it is extremely unlikely to constitute an offence.  This has now been confirmed by the guidance on the Act.

  

If you need any advice or further information in relation to the Bribery Act 2010, its applicability to your business and protecting yourself or your organisation from liability, please do not hesitate to contact us on 0207 440 2540 or email us at enquiries@fortunelaw.com.

Cocktails and Intellectual Property

 cocktails2

Not many people take their cocktails as seriously as Eben Freeman, a famous New York based mixologist.  Freeman is most famous for his smoked-infused-Coke and bourbon cocktail (The Waylon), which involves smoking cola syrup over cherry-wood sticks.   Another technique he has pioneered is fat washing, which involves infusing the spirit with bacon prior to mixing.   Frustratingly for Freeman, this technique has been used by other bartenders and Freeman has found out the hard way that he has no option but to guard his secret recipes as closely as possible.  

 

The Options

 

Mixologists in the UK face similar issues to those in the USA.  Unfortunately, there is not much bartenders can do to stop others from copying their cocktails. 

 

The different categories of intellectual property (in the UK) are as follows:

 

1.    Trade marks:

 

This gives the owner the exclusive right to use the mark to identify goods or services and to prevent others from doing so.    A mark means any sign which is capable of distinguishing the goods or services of one undertaking from those of another.  It may consist of words, designs, letters, numbers or the shape of goods.

 

A sign is something which can be apprehended by the senses, such as taste or smell, but it must be capable of being represented graphically.  For that reasons, a trade mark may allow a mixologist to protect the name of a cocktail or drink. 

 

2.    Passing Off

 

This allows a person to protect the goodwill or reputation it attaches to goods or services by association with an identifying mark or "get-up".  It prevents misrepresentation by another person that his goods or services are those of the owner of the goodwill, for example.  Like a registered trade mark, this will not protect a cocktail recipe.

 

3.    Copyright

 

Copyright gives the right to the owner to prevent others copying their work.  It includes works such as literary, musical and dramatic works, sounds recordings and films.

 

A recipe (once published in the UK) will automatically be protected as a literary work.  If someone were to copy and publish these recipes, the copyright owner could enforce its copyright against them.   Take London's famous Savoy cocktail book, for example.  This recipe book held copyright when it was first released in 1930 and is still protected to this day.  Unfortunately, creating a cocktail from a recipe will not be infringement of that copyright.  Indeed, the purpose of publishing to book was to enable people to do so.

 

4.    Registered Design Right

 

This protects the original design of a product (or a part of a product) in terms of the appearance resulting from it features.  Although a cocktail could be a product, its appearance will be identical to that of many other cocktails so this right will not apply.  This might be of use, however, for protecting the design of a cocktail glass.

 

5.    Unregistered Design Right

 

Like Registered Design Right, this protects the design of any aspect of the shape or configuration of the whole or part of an article (not necessarily a product).  The main difference between the two rights is that Unregistered Design Right allows the internal of that shape or configuration to be protected.  Again, a cocktail recipe could not be protected, but an original cocktail glass design may.

 

6.    Patents

 

This is a monopoly right to use and exploit an invention which can be used industrially, such as mechanical apparatus and electronics or new production methods and processes.

Even if a barman managed to create a new, inventive process to produce a rum-based concoction, it would not be applicable for industrial use.

 

The best bet for all budding cocktail inventors is the law of confidence, i.e. secrecy.  Don't write down the recipe and keep it confidential.  Think Coca-Cola - it is rumoured that only two executives know the recipe and both cannot take the same plane in case of a crash and the secret is lost.  If a bar wants to hire you or a manufacturer to sponsor you and you need to divulge your secret recipe, although perhaps a drastic measure, make them sign a non-disclosure agreement. 

 

Please see this month's special offer on confidentiality agreements (NDAs) at the bottom of this newsletter. If you would like advice on any aspect of commercial or hospitality sector law, please do not hesitate to contact us on 0207 440 2540 or email us at enquiries@fortunelaw.com. 

 

Special Offer 

Fixed fee for confidentiality agreements or NDAs - £250 plus VAT

If you need an NDA to protect your new business, email skassam@fortunelaw.com to discuss

 

 

Offer Expires: June 30th, 2011 

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Please note that information contained in this briefing update does not constitute legal advice. All statements of law are applicable to the laws of England and Wales only. Copyright Fortune Law 2011. All rights reserved.