California Business, Insurance And Environmental Law Blog

California entrepreneurs may not be surprised to know that startups fail 90 percent of the time. However, it can still be hard to recognize when a startup is failing and needs to be scrapped. One sign that a company doesn't have a bright future is that it doesn't know its customers. Specifically, the business doesn't understand what problem its target market has that needs to be solved.

Business owners who don't adapt to changing market conditions could be doomed to failure. While it may seem annoying to have to change a marketing or other strategy on a whim, the market is not going to change to accommodate a company. Therefore, the company must change to fit inside of its niche. Even if market conditions remain stable, it is still on a startup founder to execute an an idea in a timely manner.

Suffering from an injury is a burden, and having insurance that doesn't hold up its end of the agreement only makes that person's suffering worse. Insurance companies that operate in California have a duty to investigate and settle claims with their insureds fairly. Failure to do so is known as operating in bad faith. Thankfully, there are steps that can be taken to hold an insurer liable for acting in bad faith.

There are a variety of bad faith tactics that insurance companies will use. One common tactic is unreasonable delay. Insurance companies know that many insureds are relying on their settlement to meet basic needs. By dragging their feet, insurance companies hope an insured will eventually settle a lowball offer to get it all over with or simply drop the claim entirely. Some states give insurance companies up to 60 days to accept or deny a claim.

Many California residents use content and services provided by AT&T Inc. or Time Warner Inc. In addition to owning DirecTV, AT&T is the second largest wireless provider in the nation and has 25 million service subscribers. Time Warner owns HBO and CNN. AT&T has sought to buy Time Warner for $85 billion, but the Department of Justice has blocked the transaction after citing concerns that the AT&T would control too much of the wireless and television market. The Justice Department asserts that AT&T would raise prices for millions of consumers.

The lawsuit filed against AT&T by the Justice Department is heading to trial. The government had proposed settlements to avoid the trial, but AT&T rejected solutions that would have required it to sell DirecTV or Time Warner to sell Turner Broadcasting.

The technology sector in California holds intellectual property assets with values that reach billions of dollars. Companies of all sizes should take a proactive approach to protecting and managing their copyrights, patents and trade secrets. During a merger or acquisition, the stakeholders' understanding of their rights could keep the process on track and avoid delays or disputes.

To focus on these vital assets, companies should develop employee agreements that build thorough protections. Both inbound and outbound licensing agreements require careful consideration as well. Companies might also benefit from crafting strategies for applying for patent protection. In some situations, maintaining an asset as a trade secret could provide more long-term protection than a patent.