Securities Fraud

In the United States, securities are traded on stock exchanges, such as the New York Stock Exchange and the American Stock Exchange, or on over-the-counter markets. The U.S. Securities and Exchange Commission is the primary federal agency that oversees the registration, listing and trading of public companies. Public companies are those companies who have stocks trading at stock exchanges. The Securities Exchange Act of 1934 is the primary federal legislation governing securities trading. Through the years, other legislation were enacted to provide additional protection to investors from fraudulent securities trading. Policies, rules and decisions by the SEC and court decisions also form part of securities fraud law.

The U.S. Crimes and Criminal Procedure Code classifies as a felony any violation or attempt to violate securities trading law and imposes accompanying penalties relating to securities trading fraud offense. The fine accompanying a securities fraud offense depends on the value of losses resulting from the fraudulent act, while incarceration is not more than 25 years. The filing of securities fraud cases has a statute of limitations of six years after the commission of the offense. In securities fraud, investors are induced to buy or sell stocks based on false information.

Securities fraud law is a complicated area of law because securities trading is a sophisticated industry ruled by financial experts. Many criticize the SEC as a reactionary body, rather than an enforcing agency, following events in the past two decades when many insider trading schemes almost brought the collapse of the American financial system. Because the SEC is a regulatory government body and securities traders are finance experts, many securities fraud schemes have been discovered in the past years. This is an indicator that sophisticated securities trader can find ways to circumvent regulatory policies and the acts may not be found until billions of dollars have been lost to unsuspecting investors.

One of the common securities trading fraud is the creation of dummy corporations. Investors are led to believe that there is an existing corporation, especially when the dummy company has a similar name to an existing company. Another common securities trading fraud is internet fraud, when false information is spread through social networks in order to inflate stock prices. Once the stock prices are inflated the fraudster disposes of the stock holdings before the unsophisticated investors realize the scheme.

Another common securities trading fraud is trading of securities by insiders, which include officers and directors. Trading of securities by insiders is not illegal per se. It is only when they trade the securities based on information they obtained as a result of their position in the company that the act becomes illegal. Insider trading is not easily detected, and, often, only revealed when the company has filed for bankruptcy or in the brink of financial collapse.

Securities trading fraud happens on a daily basis and goes undetected. For unsophisticated investors, it is best to employ the services of an expert securities fraud law attorney in order to shed light to a complicated web of regulations and policies. On the other side of the spectrum, when faced with charges of securities fraud, it a good idea to hire an expert securities trading law defense lawyer as the government is zealous in its pursuit against these fraudulent schemes.


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Intellectual Property Law - Legal Information and Resources

Intellectual Property

Intellectual property law protects ownership of creative works. Intellectual property law ensures creators that they can profit from their works, while others can't without their permission. Intellectual property law also induces individuals to produce creative works that are beneficial to society. Intellectual property is composed of patents, trademarks and copyrights and each provides protection for specific types of work. The U.S. Patent and Trademark Office has authority over patents and trademarks, while the U.S. Copyright Office has authority over copyrights. The two governmental agencies are under the authority of Congress.

A patent is granted to the owner of a work so that others cannot use the work for any purpose. Congress authorized the issuance of patents so inventors would feel safe to disclose their creations to the public. In the United States, a patent expires after 20 years from the date filing of an application. After 20 years, the patent will be public property and anyone has the right to use the patent. To apply for a patent, there are requirements that must be complied with. Among other requirements, an application must be filed within one year of certain acts, the description of the invention must be complete, and the invention must be new. Patent law in the United States is not applicable to some countries in the world. Thus, if the creator seeks global protection of his work, the creator must apply for patent in those countries. Not all creations will meet the requirements for patent protection. If a creation is obvious in design, not useful, or morally offensive, the application will be denied.

Trademarks protect symbols, names, and slogans used to identify goods and services. The purpose of obtaining trademark is to distinguish one's product from another. Trademark rights can be obtained by either (i) filing a mark with the Trademark Office or (ii) by actually using the mark in commerce or in association with a service. Filing a mark is not required although it can create a nationwide priority of rights in the mark against any other person who subsequently uses the same or confusingly similar mark. The requirement in filing a mark is the applicant's bona fide intent to use that mark for products or services. Without bona fide intent, the filing may be deemed invalid and the applicant may be subjected to penalties.

Copyright protects the expression of ideas and is granted to creators of original intellectual and artistic works. Copyright is automatic upon creation and, in the United States, lasts for the life of the creator, plus 50 years. Works that subject to copyright include books, pictures, sculptures, music, movies, and computer programs. By obtaining copyright, the creator has the right to reproduce his work, make derivative works, and distribute or sell the work to the public. In the case of music or movies, the creator has the right to perform the work publicly, and, in the case of sculptures, display the work to the public.

Patents, trademarks, and copyrights are lucrative properties that must be protected by law. It is therefore crucial to seek the assistance of intellectual property law experts in drafting documents and complying with requirements needed for applications. The major issue arising from intellectual property law is infringement, which is the unauthorized use of intellectual property. To prevent infringement, application for patents, trademarks and copyrights is necessary. When an infringement dispute goes to court, the person who filed and obtained the intellectual property protection is given preference over the party who didn't. Infringement cases, however, are expensive, so it is crucial to refer to an intellectual property law attorney first before proceeding with any litigation.

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