Weekly IP Buzz for the Week Ending November 13, 2020

In this week's post, we see a new bill proposes to limit the Executive Branch’s authority regarding shutting down the Internet and wireless communications. 

Plus, the role of IP due diligence in mergers & acquisitions.

Proposed Bill Seeks Shift in Government Power to Shut Down the Internet

In today’s day and age of incoming 5G, widespread wireless communications, and ever-present access to the Internet, it is interesting to note that the Executive Brach has had the power to shut down the Internet since 1934. 

According to the 1934 Communications Act, the Executive Branch may shut down wireless communications in case of a broadly defined national emergency.  Specifically, if the President declares that the United States is at war, or there is a threat of war, or a state of public peril, disaster, or emergency; then the Executive Branch may shut down wireless communications, including the Internet, in order to preserve the neutrality of the United States.

That may now change, however, as a bill with bipartisan support has recently been introduced that would amend Section 706, which grants the Executive Branch such powers.  Congresswomen Anna G. Eschoo (D-CA) and Morgan Griffith (R-VA) have penned the Preventing Unwarranted Communications Shutdowns Act, which would limit the ability to shut down the Internet.  While the Executive Branch may still shut down the Internet, the new bill would require that the Executive Branch also notify the Pentagon, Congress, and the Federal Communications Commission within twelve hours of the proposed shutdown.  The bill also limits the circumstances for a shutdown to be limited to specific threats to human life or national security.

Read more here.

Why is IP Due Diligence Important?

These days, the most important group of assets of a company is often its intellectual property (“IP”), which includes patents, trademarks, trade dress, copyrights, trade secrets, domain names and other proprietary information and materials. Due to its mercurial nature, IP requires special consideration and attention in acquisition transactions, whether as part of an asset purchase, a stock purchase, a merger, or an investment in a company.

Failure to include all IP assets in a due diligence investigation can have a significant impact on the true value of the acquisition.

For an acquiring company, IP due diligence is crucial. Otherwise, the acquiring company cannot correctly value the selling and might significantly overpay for the assets it acquires. Even worse, the acquiring company could be purchasing an IP infringement lawsuit.

See 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 publishing 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 as well as IP mediation services. For more on the latest developments in IP law, see Ideate blog and IP Questions Answered blog.