Weekly IP Buzz for the Week Ending March 27, 2020

In this week's post, we see how the current global pandemic of coronavirus raises issues surrounding breach of contract as people are forced to make changes affecting social interaction, the economy, and business. As the government imposes regulation to stop the spread of disease, people and businesses are finding themselves in breach of contract situations without guidance outside the four corners of their contracts.

The U.S. Small Business Administration (SBA) is offering loans to small businesses struggling in the current conditions surrounding COVID-19.

Also, the closure of the iconic Four Seasons Restaurant in 2019 has led to the sale of associated brand-related intellectual property and connected social media accounts.  This raises interesting questions about the role of intellectual property and social media in today's Internet-dominated world.

When a Pandemic Leads to Breach of Contract: What Are Your Defenses?

As governments around the globe push out regulations to help stop the spread of illness in unprecedented ways, businesses and people alike feel the effects of the changes in a myriad of ways.  In a chain reaction of unexpected events, breach of contract in a pandemic situation easily becomes a common occurrence with parties attempting to abide by government protocols for immediate action.

Some of the hardest hit companies are in the hospitality industry, as most of the scheduled conferences, proms, weddings, and conventions for several weeks are canceled.  Restaurants have closed and had to lay off staff and refuse deliveries from vendors.  And while hospitality struggles, there are vendors and purchasers in other industries that are having their businesses and supply chains interrupted because of the COVID-19 pandemic. 

In some of the instances mentioned, along with many others, the events and orders canceled constitute a breach of contract for which the terminating customer would be liable for damages. Of course, the terminating party likely believes their breach is excused because of the circumstances caused by the pandemic and must rely on contractual impossibility provisions or legal doctrines justifying nonperformance.  However, for a number of reasons a terminating party faces challenges that make their chances of success uncertain. 

Read the full article here.

Is Your Small Business Suffering? Consider SBA Low Interest and Disaster Loans

While there is unlikely to be any segment of business unaffected by the recent events, it’s possible that our smaller businesses may be hit harder, or have a tougher time weathering the storm.  With that in mind, we wanted to share a short summary of resources.

The U.S. Small Business Administration (SBA) is offering low-interest Economic Injury Disaster Loans up to $2 Million for small businesses and non-profits affected by disaster to help meet working capital needs or normal business operating expenses through the recovery period.  The loans can be used to pay fixed debts, payroll, accounts payable, and some other bills that might be hard to pay because of the disaster.

Read more here.

Closure of the Four Seasons Restaurant Leads to Sale of Intellectual Property

As technology and the Internet continues to dominate today’s interconnected world, the closure of the iconic Four Seasons brand restaurant raises new issues in the legal world of intellectual property.  Because the closure of the Four Seasons Restaurant has now led to the associated sale of its trademark and social media accounts, it raises new issues about the role that social media accounts and brand-related property will play in similar future sales.

Despite its closure, however, the Four Seasons brand name still invokes images of well-to-do patrons and high-end cuisine.  As such, it seems fitting that the owners of the Four Seasons brand now look to sell intellectual property and social media accounts connected to the restaurant.

Find the full article here.

Click to read the previous Weekly IP Buzz on Thriving Attorney.

For more posts, see our Intellectual Property Law Blog.

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In addition to Thriving Attorney, Darin M. Klemchuk is founder of Klemchuk LLP, a litigation, intellectual property, and transactional law firm located in Dallas, Texas. Click to read more about Darin Klemchuk's practice as an intellectual property lawyer.