Birmingham Non-Profit Attorneys & Lawyers

What Are Cumulative Dividends?

If a dividend is sharing company profits to shareholders, then a cumulative dividend is a distribution made to the holders of special "preferred" shares regularly. It is unrelated to company profits.

Regular or "noncumulative" dividends are voluntary. This means the Board of Directors has the option of awarding them. This usually depends on how the company has performed each year.

However, paying cumulative dividends is mandatory. If the company can't pay out a cumulative dividend in any given fiscal year, the amount for that year is carried forward. It must always be paid out before any payments to common shareholders.

Not all "preferred shares" have the right to receive cumulative dividends. Some cumulative preferred shares carry limitations. For example, the company may only have to pay cumulative dividends if it liquidates. In addition, paying out cumulative dividends doesn't ta

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Key Takeaways

• Definition & Importance of Trademark Licensing: Trademark licensing allows a trademark owner to grant rights to a third party to use their mark under agreed conditions, which can help expand brand presence while generating revenue.
• Types of Trademark Licenses: Includes exclusive, non-exclusive, and sole licenses, each providing different levels of rights and restrictions for the licensee.
• Key Elements of a Licensing Agreement: Must include quality control provisions, payment structure, geographic scope, duration, renewal conditions, and breach remedies.
• Trademark Licensing Strategies: Businesses can use licensing to expand market reach, enhance brand value, and enter new industries or product categories.
• Legal Considerations & Risks: Trademark owners must maintain control over the use of their mark to avoid dilution or loss of rights.
• Industry-Specific Licensing Examples: Fashion, entertainment, tech, a

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What Is Unfair Competition?

Unfair competition occurs when another company uses wrong or deceptive business practices to gain a competitive advantage. The major category of unfair competition relates to intentional confusion of customers as to where the product came from, while the secondary category relates to unfair trade practices. Some of the most common forms of unfair competition include:

• Bait-and-switch selling technique, such as substituting a lower-cost product from a different brand for a more expensive, higher-quality product.  
• False advertising or making false claims about a product to promote it.
• Misappropriation or use of confidential information, such as stealing a competitor's special formulation or other trade secrets.
• Trade dress violation, or copying the physical appearance of a product and/or packaging in the attempt to fool a customer into buying it.

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Key Takeaways:

• The DMCA protects digital creators by outlining processes like takedown notices to address unauthorized content use.
• Safe harbor provisions shield service providers from liability if they meet specific criteria, such as promptly addressing copyright complaints.
• Rights holders must provide detailed information when filing DMCA takedown notices to ensure compliance.
• Platforms utilize technical protection measures, like content-matching technology, to enforce copyright rules.

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