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EALG BRIEFING NOVEMBER 2005 VOL. 2
NO. 5 A SUMMARY OF RECENT LEGAL DEVELOPMENTS
IN EUROPE AND THE UNITED STATES
AUSTRIA AUSTRIAN CARTEL ACT OF 2005 As of 1 January 2006 the new Austrian Cartel Act 2005 will enter into force, which will “implement” EC-Regulation No. 1/2003 into domestic Austrian law and bring about far-reaching changes vis-à-vis the existing anti-trust code. In essence, the presently applicable variety of rules governing different types of cartels will be replaced by three provisions which nearly literally incorporate the wording of Article 81 EC. For further details, please read the full article on the EALG News/Information web page or contact Dr. Armin Dallmann, Partner, Dallmann & Juranek, Vienna, Austria; a.dallmann@dallmann.cc ; http://www.dallmann.cc THE NETHERLANDSDUTCH SENATE IMPLEMENTS EUROPEAN ENFORCEMENT ORDER Efficient integration of the European Union requires a system whereby creditors can execute judgments in their favour on undisputed debts receivables in other EU countries quickly and without complications. The Dutch Senate has now passed the European Enforcement Order Implementation Act ("Uitvoeringswet Verordening Europese Executoriale Titel"). This bill simplifies the mutual acknowledgment and execution of judgments concerning undisputed debts receivable. This is accomplished by giving creditors the right to request an European Enforcement Order (Dutch: Europese Executoriale Titel - EET) from the judge who rendered the decision on their debt receivable. An EET is given in the form of a multilingual standard form, and is proof of the fact that the decision is an authentic European enforcement order. With this EET the creditor is able to have the judgment executed in any other member state. The creditor is no longer required to apply for an authorization of execution (exequatur). For further details, please contact Jurgen van Berkel, De Boort Hermes De Bont, Tilburg, Holland; j.vanberkel@devoort.nl; http://www.devoort.nl. THE NETHERLANDSSHAREHOLDER SUITS AUTHORIZED FOR INADEQUATE PUBLIC COMPANY REPORTS Shareholders in the Netherlands are being given more power against companies quoted on the stock exchange who issue inadequate annual reports. As of next year it will be possible for investors to directly submit a complaint to the courts. Under existing law they are required to summon the company, a procedure which takes more than two years and involves a high cost. This right will be regulated in the new Financial Reporting Supervision Act. The new law also expands the powers of the Authority for Financial Markets (AFN) by giving it the power to verify whether annual reports comply with government regulations, and to act in case of doubts as to the application of those regulations. The present rules concerning annual reports do not contain a mechanism to systematically look for inadequacies in the financial reporting. Under the new law the AFM will be given the power to initiate a procedure before the Companies Division if, in the opinion of the AFM, the financial reporting does not comply with the applicable regulations. As of this year these regulations will be the International Accounting Standards. For further details, please contact Jurgen van Berkel, De Boort Hermes De Bont, Tilburg, Holland, j.vanberkel@devoort.nl; http://www.devoort.nl. THE NETHERLANDSTHE DUTCH UNFAIR COMPETITION CRASH TEAM An entrepreneur faced with competitive obstructions in foreign markets can seek the assistance of the Dutch Unfair Competition Crash Team of the Netherlands Department of Economic Affairs. The Crash Team consists of a network of government entities that assist in solving competitive problems experienced by entrepreneurs. If necessary, the team contacts the foreign authorities concerned. The Unfair Competition Crash Team tackles such problems as discrimination during tender procedures; unlawful government support of foreign competitors; and unequal competition in foreign countries. For further details, please read the full article at the EALG News/Information web page, or contact Jurgen van Berkel, De Boort Hermes De Bont, Tilburg, Holland, j.vanberkel@devoort.nl; http://www.devoort.nl. NORWAYNEW LEGISLATION MAKES CORPORATE PENSION PLANS MANDATORY A new law will take effect in Norway as of January 1, 2006 that will require all employers to have a minimum pension plan for their employees. Under the law, the employers' contribution shall be a minimum of two per cent (2%) of the employee's salary up to appr. NOK 720.000 (USD 107.000, EUR 91.000). Instead of a pension plan based on an annual contribution from the employer, the employer may chose a plan where the employees are secured a certain payment of the same level as a contribution based plan as a whole. Employers are required to start making their contributions to their pension plans as of July 1, 2006. The new law is expected to have significant consequences for smaller businesses, which have generally not had pension plans for their employees. For further details, please read the full article at the EALG News/Information web page, or contact Hans Chr. Steenstrup, Partner, Advokatfirma Hartsang DA,.; hcs@hartsang.no, www.hartsang.no THE UNITED KINGDOM: ENGLANDTHE RUSH FOR NEW DOMAIN NAMES: ARE YOU READY FOR DOT EU? December 2005 sees the beginning of the registration process for the new .eu domain names. The programme is operated under the auspices of the European Registry of Internet Domain Names, “EURid”, by means of locally accredited registrars in each member state. A priority “sunrise” period for applications commences on 7th December and closes on 6th April 2006 after which it will be a free for all. This process of phased registration seeks to prevent cyber-squatting by people registering domain names corresponding to valuable brands and company names but there is still a risk that owners of UK or Community trade marks could be beaten to the punch by owners of the same trade mark, registered for different goods or services or registered in another member state. The risk of losing the race is even greater for owners of unregistered trade marks, brand names and company names. It is, therefore, essential that businesses make their applications as soon as possible For further details, please read the full article at the EALG News/Information web page, or contact Robert Stoker, Partner, Ricksons Solicitors, Manchester, Preston, Leeds, England; robert.stoker@ricksons.co.uk; http://www.ricksons.co.uk. THE UNITED KINGDOM: SCOTLANDTHINK SMALL: THE NEW APPROACH TO COMPANY LAW The Government hopes that the New Company Law Reform Bill will not only increase the UK's competitiveness as a place to do business but will also improve economic performance. Will this turn out to be the case? For more information, please read the full article at the EALG News/Information web page, or contact Catherine Feechan, Partner, Biggart Baillie, Scotland. cfeechan@biggartbaillie.co.uk; www.biggartbaillie.co.uk THE UNITED KINGDOM: SCOTLANDSIPPS: A DISCUSSION OF THE NEWLY POPULAR PENSION PLAN Since the passing of the Pensions Act 2004 and the unveiling of the new pensions regime, enforceable from 6 April 2006 (known as "A Day"), much of the hype surrounding the changes has been related to the increased desirability they have afforded to self-invested personal pensions (Sipps). Will common sense prevail? For additional details, please read the
full article at the EALG
News/Information web page, or contact Mairi Black, Solicitor,
Biggart Baillie, Glasgow, Scotland; mblack@biggartbaillie.co.uk;
http://www.biggartbaillie.co.uk
MODERNISING THE PLANNING SYSTEM: THE WHITE PAPER The Scottish Executive in particular sees planning as a tool to achieve social objectives. A commitment to revamp the planning system was set out in the Partnership Agreement entered into following upon the last election in Scotland. This committed the Executive "to improve the planning system, to strengthen the involvement of local communities, speed up decisions, reflect local views better and allow quicker investment decisions". The forthcoming bill expected early in 2006 promises significant changes. It will be interesting to see over the next three to five years whether there really is a change of attitude on the part of those who are users of and are involved in the planning system. For additional details, please read the full article at the EALG News/Information web page or contact Murray Shaw, Partner, Biggart Baillie, Glasgow, Scotland; mshaw@biggartbaillie.co.uk; http://www.biggartbaillie.co.uk THE UNITED KINGDOM: SCOTLANDTHE SCOTTISH LEGACY OF TRANSCO? Transco Plc made Scottish Legal history in 2002 by being the first company to be prosecuted for the common law crime of culpable homicide in Scotland. The charge was thrown out after the Scottish Appeal Court hearing in June 2003. Transco will always be associated in the UK with the £15 million fine imposed in August 2005 for the fatal Larkhall explosion. But what will the true legacy be? For additional details, please read the full article at the EALG News/Information web page or contact David Stevenson, Partner, Biggart Baillie, Glasgow, Scotland; dstevenson@biggartbaillie.co.uk; http://www.biggartbaillie.co.uk UNITED STATESUS-EU SIGN INTERIM WINE AGREEMENT Through an exchange of letters the United States and the European Union have signed an interim agreement related to the wine trade between the United States and Europe. The agreement is a precursor to the broader Wine Agreement, announced in September, 2005, and ensures that wine exports between the U.S. and EU will not be disrupted pending the signing and entry into force under the Wine Agreement. The Wine Agreement itself provides for recognition of existing current wine-making practices; a consultative process for accepting new wine-making practices; U.S. limitation of the use of certain "semi-generic" terms in the U.S. market; EU allowance under specified conditions the use of certain regulated terms on U.S. wine exported to the EU; recognition of certain names of origin in each other's market; simplification of certification requirements; and defining parameters for optional labeling elements of U.S. wines sold in the EU market. The Wine Agreement does not address the use of "geographical indications," which is considered a form of intellectual property. The Agreement does provide for a second phase of negotiations to address other outstanding U.S.-EU wine trade issues. For additional details, contact Ronald N. Cobert, Partner, or Andrew M. Danas, Partner, Grove, Jaskiewicz and Cobert, Washington, D.C.; rcobert@gjcobert.com; adanas@gjcobert.com; http://www.gjcobert.com. UNITED STATESNEW YORK AMENDS LAW TO ALLOW INTERIM REMEDIES IN INTERNATIONAL ARBITRATION New York State has enacted a new law which is intended to ensure that companies involved in international arbitrations in New York are afforded the same provisional remedies as are available in domestic U.S. arbitrations. Although New York is an important commercial center, since 1982 New York state courts have only been able to issue and enforce provisional remedies, such as attachments of assets and injunctions, in domestic arbitration cases. The new law overturns the 1982 court ruling that set forth this restrictive interpretation of New York law. The amended law now allows New York state courts to act on "an application for an order of attachment or for a preliminary injunction in connection with an arbitration that is pending or is to be commenced inside or outside" the state of New York, "whether or not it is subject to the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards." Importantly, the new law allows a New York state court to issue provisional remedies in arbitration cases occurring in New York that involve foreign parties, as well as arbitration cases occurring elsewhere that involve assets or parties located in New York. The law provides that any provisional remedies are only enforceable if the arbitration is commenced within thirty (30) days of its issuance. After that time period, the order will expire and attorneys fees and costs may be awarded to the other side. For additional details, contact Ronald N. Cobert, Partner, or Andrew M. Danas, Partner, Grove, Jaskiewicz and Cobert, Washington, D.C.; rcobert@gjcobert.com; adanas@gjcobert.com; http://www.gjcobert.com. The Euro-American
Lawyers Group (EALG) is an association
of Law Firms founded in 1985. The members of the EALG
believe that they can best serve their clients' interests overseas
by co-operating with like-minded firms who have local knowledge
of, and immediate access to, the legal system operating in their
own jurisdiction. Eagle's philosophy
is that local representation is vital in today's dynamic market
where both legislation and commercial practice is changing regularly
at both the national and international levels. The EALG
has steadily developed since its inception in 1985. It
now comprises twenty seven (27) law firms working in 20 different
jurisdictions. Each member has their own network of local
contacts. With member
firms throughout
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