Monthly Archives: June 2020

ILN Today Post

Temporary Layoffs during the COVID-19 Crisis – Updated

Companies have asked “Can an employer do temporary layoffs?” and want the answer in a short, summary format – and the ILN has answered – 17 member jurisdictions have weighed in with concise responses to help guide your business in the current crisis.

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The Courts Are Really Back in Action, as RSS Witnessed

June 1, 2020 — The Quebec courts, including the Superior Court, Commercial Division, District of Montreal, declared that they were resuming their activities in progressive fashion as of Monday, June 1.

This morning, June 1, Jean-Pierre Sheppard and Lauren Flam, from our Commercial Litigation Team, attended court on behalf of a shareholder involved in a dispute within a family company. RSS obtained an order forcing the other shareholder/director to cease unilaterally declaring dividends, withdrawing funds from the company’s bank accounts and from using the company’s credit facilities.

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WIPO introduces new business online-service that provides evidence of an intellectual asset’s existence

On 27 May 2020 WIPO launched new online business service, WIPO PROOF1, that provides tamper-proof evidence of the existence at a point in time of any digital file, including data sets, in any format.

The WIPO PROOF service generates tamper-proof evidence proving that a digital file existed at a specific point in time, and that it has not been altered since that time. An evidence in this case will be a digital WIPO PROOF token which consists of a date- and time-stamped digital fingerprint of the file (or data).

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ILN Today Post

MSME definition further revised by Union Cabinet

Subsequent to the revisions made in the definition of MSMEs during the INR 20 lakh crores economic package announcement made in May 2020, the government on Monday i.e. 01st June 2020 further revised the definition of MSMEs.
From now on, enterprises with investments up to INR 50 crore with a turnover of less than INR 250 crore will now be defined as ‘medium’ units. Whereas under the economic stimulus package, the revised definition for medium enterprises was kept at a turnover of INR 100 crore and investment up to INR 20 crores. Below is the tabular representation of the definition of MSMEs classification:
Micro Enterprises
Enterprises with an investment less than INR 1 crore and turnover less than INR 5 crore turnover
Small Enterprises
Enterprises with an investment less than INR 10 crore and turnover less than INR 50 crore turnover
Medium Enterprises
Enterprises with an investment less than INR 50 crore and turnover less than INR 250 crore turnover
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For the Unwary, Paycheck Protection Program May Create False Claims Act Liability

The Paycheck Protection Program (“PPP”) provided forgivable loans to assist small businesses with expenses during the COVID-19 shutdown, seemingly creating a lifeline for many of these enterprises.  As explained here, a borrower could obtain a loan equal to the lesser of $10 million or the sum of its average monthly payroll costs for 2.5 months, (reduced to the extent that any individual was paid more than $100,000 per year) plus the balance of any Economic Injury Disaster Loan received between January 31, 2020 and April 3, 2020.  Like many federal programs, however, participation in the PPP program requires an extensive series of certifications that could expose borrowers to liability under the under the False Claims Act (“FCA”), a Civil War era statute, that the government has continued to use to combat both government contract and health care fraud.  Borrowers must, therefore, remain mindful of the key aspects of the FCA as they use PPP funds and as they apply for loan forgiveness.

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ILN Today Post

Llinks Client Alert – Antitrust and Competition (June 2020)

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