Author: Marisol Escobar

Guidance

Don’t Miss an Episode of Our New Video Series, Cracking the CCPA Code

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The California Consumer Privacy Act of 2018 is arguably the most expansive piece of privacy legislation in U.S. history. It imposes a number of obligations on covered businesses, including a duty to disclose the categories of personal information (PI) they collect, sell, or share about California consumers, and gives those consumers a right to opt out of the sale of their PI, a right to the deletion of their PI, and the right to receive... Read more »
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Guidance

First ICO Qualified by the SEC Under Regulation A+

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On July 10, 2019, Blockstack Token LLC (“Blockstack”), a wholly-owned subsidiary of Blockstack PBC, a Delaware public benefit corporation, became the first company to have its Regulation A+ token offering  qualified by the U.S. Securities and Exchange Commission (“SEC”).[1] Blockstack is a technology company that offers an open-source blockchain-based network for developers to build and publish their own decentralized applications. According to Blockstack’s website, over 165 applications have been built on the Blockstack platform. Purchasers... Read more »
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Guidance

New Development: CFIUS’s Jurisdiction Has Expanded to Cover Non-Controlling Investments in Certain Industries

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On August 13, 2018, the Foreign Investment Risk Review Modernization Act of 2018 (or FIRRMA for short) was signed into law, ushering in an unprecedented expansion in the jurisdiction of the Committee on Foreign Investment in the United States (or more commonly known as CFIUS). As our colleagues, Chuck Comey and Jim Ryan, mentioned in an earlier article, the enactment of FIRRMA capped months of escalation in the U.S./China trade relations. The expanded jurisdiction of... Read more »
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Guidance

Why Board Resolutions Mustn’t Be Forgotten

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In this article, which originally appeared on corporatesecretary​.​com, Morrison & Foerster corporate attorneys discuss (1) the implications to a company of failing to obtain and document board approval of certain actions, (2) the areas where board approval is most likely to be neglected, and (3) best practices for board resolutions and approvals.
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Funding

Negotiating a Series A Term Sheet

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The prospect of navigating your first preferred stock term sheet negotiation with an institutional investor can be daunting. You will likely be confronted with a number of provisions that you have not encountered before or have limited experience with. Understanding and assessing the materiality of these terms and having a well-thought-out negotiating strategy are critical to finalizing the term sheet quickly and effectively. Doing so will allow you to move to definitive documents and closing... Read more »
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Expansion/IP

New California IoT Law Requires Security for Connected Devices

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When Governor Jerry Brown signed Assembly Bill 1906 and Senate Bill 327 into law on Friday, California took major strides toward regulating the Internet of Things, the network of internet-connected devices that includes everything from televisions and cars, to refrigerators, fitness trackers, and baby monitors.[1]  As of January 1, 2020, “reasonable security feature[s]” must be included in all “connected devices” sold or offered for sale in California, specifically those devices capable of connecting directly or indirectly to the internet and... Read more »
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Expansion

Director Duties and Augmenting the Corporate Brain

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Artificial intelligence and machine learning (for ease of readability, this article uses “AI” to refer to the broad category of machine learning and artificial intelligence) are poised to impact all aspects of society and business. Everything from personal assistants and chat bots to programs designed to assist venture funds with portfolio selection is coming to market while researchers (both at companies and in academic institutions) continue to target the development of general or strong AI.... Read more »
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Formation

Introducing the Public Benefit LLC

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Four years after Delaware first enacted its Public Benefit Corporation (PBC) statute, the state has taken another step forward in advancing legal entity forms for social enterprises. In August, Delaware added a new legal entity to its code: the Public Benefit Limited Liability Company, or PBLLC. As its name suggests, the PBLLC legislation closely tracks the PBC legislation, so its material features will be familiar to most social entrepreneurs and impact investors. In essence, a... Read more »
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