Month: October 2006

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Going “Stealth”: Executive Compensation in Chapter 11 After Dana

A rose by any other name may still smell as sweet, but execs at Dana
Corp. recently discovered that calling executive compensation by
another name did not pass the smell test in court. S.D.N.Y. Bankruptcy
Judge Burton Lifland recently denied Dana's proposed executive
compensation package as contrary to the provisions of the Bankruptcy
Code. [1]  Nearly one year after BAPCPA, has the Dana case finally ushered in a new approach to evaluating executive compensation plans, as envisioned by Congress?

Executive Compensation After BAPCPA

The Bankruptcy Abuse Prevention and Consumer Protection Act, enacted
last October, added some severe restrictions on the ability of Chapter
11 debtors to adopt so-called "pay to stay" executive compensation
plans. [2]

New Code section 503(c) establishes the guidelines for insider
retention, bonus, and severance plans, also known as KERPS. [3] Under
the new evidentiary standards,the Code bars bonuses to corporate
insiders as an inducement to stay … Read the rest

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Ford-GM Merger/Alliance Talks: Bigger is Not Necessarily Better

Automotive News recently reported that General Motors Corp. and Ford Motor Co. have discussed a possible merger or alliance.[1]  Neither company will comment on the talks [2], leading some followers to believe the reports are mere "speculation" and reflect "[n]ostalgia for the glory days of the American automobile industry."[3]  Nostalgia and speculation aside, the merger/alliance rumors are enough to incite the interests of industry followers and American car buyers as to the possible benefits of such a relationship.

A merger would combine "two of the world's most recognized brands."[4]  The combined company would account for "an astounding 41 percent of the U.S. auto market."[5]  An alliance could force innovative thought and encourage novel business decisions, as it seems to some that "[t]he old school way of doing things at Ford and GM isn't working."[6]  If nothing else, a merger would combine name recognition and product lines.  However, the merger process

… Read the rest
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The Online Movie Rental Battle

I. Introduction

Should
the concept of movie rentals via the internet be protected by a
patent?  Netflix, Inc. seems to think so.  That is what prompted them
to sue Blockbuster, Inc. for infringing their patents by starting up
Blockbuster Online.  But Blockbuster thinks Netflix has invalid patents
and that the monopolization of the online movie rental business would
not be fair.  These are the issues that recently came up in Netflix,
Inc. v. Blockbuster, Inc.  [1].

II. Analysis

Netflix is suing Blockbuster for infringing their patents by
starting Blockbuster Online which also allows consumers to rent movies
through the internet, similar to what Netflix offers.  [2].  Netflix has two patents that describe methods for renting items for ordering digital video discs (DVDs) via the internet.  [3].  Blockbuster feels there is nothing original about renting movies to customers through the internet.  [4]. 
To obtain a patent, the patentee

… Read the rest
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Confirmed test results: A new uphill battle for American cyclist Floyd Landis

I. Introduction

It goes by
many different headlines: doping, steroids, performance enhancing drugs
(PEDs).  It is an issue that rears its head in competitive sports time
and time again.  A controversy has been building for years and is
currently unfolding: allegations of a champion American cyclist having
used PEDs during the Tour de France.  But the American cyclist that the
French accused for so long is retired, and his former teammate now sits
opposed to the pointing finger of the cycling world.  This time the
cycling world has some evidence to support its claims.  [1] 
This article analyzes the charges that the current Tour de France
champion cyclist Floyd Landis faces and the course of appealing those
charges. 

II. The alleged doping is the type that enhances the athlete's recovery and energy levels

Floyd Landis has tested positive for synthetic testosterone. 
Synthetic testosterone use conjures thoughts of oversized men

… Read the rest