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Newsletter May 2008

CORPORATE

Greater Flexibility of NV Law: Less Extended Purchase of Own Shares for Listed Companies

Pursuant to the amended EC Directive as regards the formation of public limited liability companies and the maintenance and alteration of their capital, the greater flexibility of NV law to be implemented will decrease for listed companies. In the amended bill submitted to the Senate, the originally more extended option for companies to purchase their own shares has been limited for listed companies to 50% of the issued capital, and the originally more extended option to grant loans has been limited because the general meeting of listed companies must pass a resolution approving this by a vote of 95%. read more

Representation in a Conflict of Interests Situation
In this judgment of 21 March 2008 the Supreme Court limits the effect of the lack of representative authority in the event of a conflict of interests.
This has to do with the provision concerning a conflict of interests set out in Section 2:256 of the Dutch Civil Code ("BW"), which reads as follows: "Except where the articles of association provide otherwise, in all events in which the company has a conflict of interests with one or more directors, the company shall be represented by supervisory directors. The general meeting shall always have the authority to appoint one or more other persons for this purpose." read more

EMPLOYMENT

Refusal to Supplement Wages in the Event of Incapacity for Work
Pursuant to Section 7:629 of the Dutch Civil Code ("BW"), if an employee is unfit for work, the employer has to continue paying at least 70% of his wages. If the incapacity for work was caused by the employee's intent, this obligation to continue to pay wages lapses. Apart from the statutory obligation to continue to pay wages, the employer may also grant a supplement to wages over and above the statutory requirement under a CAO or individual employment agreement. Is the existence of intent a requirement for the refusal to give a non-statutory supplement, just as for Section 7:629 of the BW? read more

INTELLECTUAL PROPERTY

Copyright: ECJ Gives Substance To Distribution Right
An author may only invoke his distribution right if a transfer of ownership takes place of the copyright-protected work. read more

Msnlock Infringes Microsoft's MSN Trademarks
Unicaresoft must assign its msnlock domain names to Microsoft. The judge has ruled that Microsoft's well-known trademark MSN has not degenerated into a generic name for chatting. This judgment makes clear that referring use of another party's trademark in a domain name will not be permitted all that quickly. read more

Mere Decoration Does Not Infringe
The decision of the Court of Justice of the European Communities of 10 April 2008 is a milestone in the dispute between Adidas at the one side and Marca Mode, H&M and others ("Marca c.s.") at the other side, with the use of stripes on apparel as central issue. read more

PERSONAL DATA PRIVACY

Opinion of the Article 29 Working Party on Privacy and Search Engines

Any internet user will agree that search engines play an essential role in making information available on the Internet. A downside of search engines, however, is that they pose a potential threat to privacy: not only are search engines capable of combining personal data offered on the Internet by various parties, so that a detailed picture of an individual is created, but they also collect and analyse the various search enquiries made, so that a detailed picture of search enquiries can be obtained and, consequently, of the interests of an individual user of the search engines. read more

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