Neil-Siskind-lawyer-picture

The Shifted Path of Capital Principle- by NEIL SISKIND

I’ve developed the economic principle, “The Shifted Path of Capital Principle”, to explain that, in the modern U.S. economy, capital often flows from the Fed, to banks, and then directly into assets (as opposed to moving from the Fed, to banks, and into the broader economy through investments by businesses in their respective operations, as in prior U.S. economies and eras), which leads to potentially dangerous asset inflation, without more general economy-wide inflation, and even with economy-wide deflation, due, also, in part, to the shifted path of capital.

In the old economy (or, the Industrial and Post-Industrial Eras), assets, such as homes and stocks, were beneficiaries of industry and inventiveness, hard work, and prosperity. These factors, or characteristics, led to earnings growth for companies, and wage growth and income growth for employees and executives, and, in turn, led to higher stock prices for companies and rising home demand from, and rising home prices for, employees and consumers. This path of capital, from business investment and growth outward to the larger economy, also led to higher product prices, as demand grew, and as U.S. labor was finite. Eventually, inflation set-in, interest rates increased, and the economy slowed. Stock prices would reflect earnings declines (or earnings growth, if company pricing-power permitted for price increases to outpace inflation), and home prices would level-off or decline as interest rates rose and as demand slowed. Eventually, as interest rates declined, a new up-cycle in the economy would begin.

In the modern economy (or, the digital economy), dollars flow more directly from the Fed into assets. Dollars flow directly from the Fed to banks, and then into homes which are used by investors as generators of income and profit, rather than as places to live as the result of employment, income growth, and economic prosperity, as has, historically, been the norm. Houses and apartments become trading vehicles and short-term income generators. On the equities side, dollar denominated debt is incurred by companies to buy their own company stock to push up the price and their EPS. This flow of debt capital directly into stocks- instead of into companies’ operations, where it leads to earnings growth through productivity, ingenuity, and capex, resulting in sales, pricing power, and stock price growth- works to “directly” (rather than through a more indirect “trickle through”) and, some might say, “artificially”, cause stock prices to rise, irrespective of any growth in earnings, or even in revenues.

At the same time as inexpensive debt capital is being used by businesses and investors to inflate assets, it’s also being used by businesses to deflate prices and wages.

The combination of cheap debt and a higher stock price is used by companies to increase “scale” through heightened marketing and acquisitions. The scale allows for lower input costs, and, thus, lower consumer prices, and lower wages as competition declines. The scale provides for higher profits, due to a greater industry presence and more revenues driven by size and low prices, and fewer competitors. Big companies grow bigger, and small competitors have lesser and lesser abilities to compete because technology causes consumers to care less about location, convenience, and relationship than about price, alone.

All of the above, taken together, means that the path of capital leads to less price and wage inflation, and more investment-oriented, or even risk-oriented uses of capital. Asset and debt inflation displace price and wage inflation, as capital flows directly from the Fed to banks, and from banks to assets- instead of into capex, innovation, productivity, and wage growth.

In the modern economy, a mature economic cycle means less price and wage pressures, and more asset bubbles and financial imbalances from misallocations of cheap credit. As the Fed looks at accepted economic indicators to evaluate inflationary pressures, it misreads signals to indicate a low level of economic risk (because of low price inflation), and then keeps rates too low for too long, as asset imbalances grow- until it’s too late to ease-out of the situation or achieve a soft landing.

Flat and inverted yield curves are misread to only reflect low inflation expectations (including misreading flat and inverted curves to reflect low term premiums due solely to low inflation expectations), rather than portend asset crashes, and reflect investors’ expectations of eventual slower or negative growth.

When the Fed does decide to act because it sees credit and asset bubble risks, this divergence in how debt capital has affected prices and assets (to cause product and wage de-flation vs. asset in-flation) puts the Fed into no-win scenarios. Raising interest rates where economic growth and inflation are muted, but where assets grow pricey, causes public and political outrage because the Fed is deflating assets that have been the engine of the economy (such as real estate) while pushing already low growth and low inflation even lower through higher costs of capital. The Fed’s attempts to limit systemic risk from crashing asset prices where the Fed has let asset bubbles fester is difficult where price and wage growth and overall inflation are muted.

In the modern economy, if the Fed fails to raise interest rates in a timely manner (by choice or by external pressures) where inflation is not justifying such action, a business cycle will still come to an end, only in a different manner- despite investors’ preferring not to recognize this. If growth and inflation are low and the Fed maintains low interest rates to extend business cycles, asset prices and debt will become inflated, and, instead of economic slowdowns, we get asset crashes and financial crises, which can be triggered by any variety of events.

One way or another, sooner or later, a business cycle ends.

Recommendations for achieving maximum financial stability-

Because of the shifted path of capital, the Fed’s assumptions about, and regular and standard measurements of financial risks to the general public and to the financial system, should also shift:

The shifted path of capital in the modern economy must be understood, embraced, and recognized at earlier stages of an economic cycle so that entire economies and financial systems don’t have to be compromised by interest rate hikes to control asset prices in economies which do not, otherwise, call for rate hikes due to low growth and/or low inflation. Indicators of asset inflation, instead of, or along with, indicators of price and wage inflation should be more closely monitored and addressed by the Fed.

Because of the shifted path of capital, legislators should better understand the path of capital once it leaves the Treasury, and the reason for the path, and create laws and policies that better protect the public and the financial system in this new economic paradigm, or else take necessary legislative measures to reverse the trajectory of this modern paradigm:

Mere awareness of and de-risking from the shift in the path of capital through the economy earlier-on in cycles (through the Fed’s early identification of pockets of instability and then raising of interest rates in response) is not enough, especially since it’s unrealistic to expect the Fed to be able to time monetary policy precisely enough, and since such a policy, alone, would significantly shorten business cycles. Legislators and policy makers must understand the underlying reasons for the shift, where liquidity provided to businesses by the Fed and banks, now, very often bypasses what is believed to be supply side stimuli (i.e. businesses- and, in particular, businesses’ investments in their operations, as opposed to in their stocks), and goes directly into assets and asset growth activities, allowing for stock prices to rise, even when earnings don’t, and allowing deflation to take hold where only the largest companies that scale the fastest and the largest by acquiring other smaller assets in their respective industries, or through other growth initiatives, thus, achieving the lowest prices and downward wage pressures from less competition, can survive; and, they must understand the shift on the consumer side, allowing for (or causing) the cost of shelter to detach from incomes. With these understandings, legislators must create new federal legislation to maximize more long-term sustainable growth without the constant risk of asset bubbles followed by asset crashes from the Fed tightening on monetary policy to control asset and credit bubbles, while, otherwise, preferring to keep rates low to encourage economic expansion. New legislation should include changes to the Fed’s mandates, and changes to the Fed’s policies, tools, and the Fed’s standards of measurements of economic risks from low interest rates and liquidity (such as looking at wage inflation, which may be slow to come, if ever, even as assets grow out of control), and changes to bank regulations; or else, once legislators understand the underlying economic reasons for the shift, if the shift is deemed to be a net-negative evolution of our economy, attempt to use legislation and regulations to have the root causes of the shift minimized or reversed by creating changes to investor, borrower, and bank incentives, and to make structural changes to the economy.

Advertisements

Synchronized Global Slowth

A phrase first coined in 2018 New York City business attorney, Neil Steven Siskind, “synchronized global slowth” (or “synchronous slowth”) is the occurrence or condition of multiple emerging market and developed market economies commencing a downward trajectory of economic and GDP growth, or actually contracting to a point of slow, stagnant, or negative economic and GDP growth, at simultaneous, or nearly simultaneous times, largely, or, at least in part, due to rising interest rates and/or stricter lending regulations (such as rising reserve requirement ratios and stricter bank balance sheet requirements) in the larger, more developed or fully developed economies, such as the United States and China, resulting in diminished liquidity in those economies, and, thus, diminished liquidity and less available dollars in smaller, or emerging economies, in turn. Slowing consumer demand and business spending in the larger more developed economies that result from a constrictive monetary policy, results in less export business for the smaller emerging economies which often depend on the larger economies to buy their goods, and in further economic slowth. Rising interest rates in the larger developed markets force weaker emerging markets to, likewise, consider raising their own interest rates to protect their respective currencies, even as their economies weaken- further expanding the breadth and enhancing the depth of global economic slowth. Currency issues resulting from rising rates or tighter lending rules, play a particularly large role in “synchronized global slowth” as the U.S. dollar strengthens from rising interest rates, making repayment of the dollar-denominated debt of many countries more costly to repay, creating additional global slowth. Political factors, such as trade disputes in large economies leading to trade barriers, including, tariffs, may also play a role in the occurrence of “synchronized global slowth”.

Neil S. Siskind, Real Estate Lawyer

Neil S. Siskind
Attorney at Law
http://siskindlawfirm.com

Neil Siskind is the Founder & Chairman of The Fatherhood Assignment
Neil-Siskind-photo
Learn more at:  http://www.neil-siskind-the-fatherhood-assignment.org/

Review Neil Siskind’s personal and professional references at: http://siskindlawfirm.com/neil-siskind-bio/

Volunteer, Pro Bono, and Government Background:
Learn about how we try to give back http://www.neilsiskindsupports.com

Neil Siskind’s Volunteer Work: Volunteer, Memorial Sloan Kettering Cancer Center
Donate to one of my needy public classrooms: http://www.donorschoose.org/NeilSiskindGiving
Help Neil Siskind make sick children’s wishes come true: Neil-Siskind/Help-Make-A-Child-Smile.htm

Neil Siskind’s Pro Bono Work: Protecting New York’s senior citizens from fraud and financial abuse www.savingseniorcitizens.com siskindsenior-logo

Champion Children – The Siskind Law Firm We seek to inspire people with stories of  children who have overcome challenges: http://siskindlawfirm.com/champion-children/
FreeStart Business – The Siskind Law Firm We seek to help put war veterans and senior citizens in the right direction so that they can face the challenges of  the modern economy: http://siskindlawfirm.com/free-start-business/

Neil Siskind’s Philanthropic Work:
-Hudson Riverfront Land Preservation
-Founder, The Fatherhood Assignment: A think tank to educate the public about, and advocate for the children of absentee fathers. http://www.neil-siskind-the-fatherhood-assignment.org/

Neil Siskind’s Government Work:
Suffolk County District Attorney’s Office, Boston, MA, 1994, Intern
Office of Senator Christopher J. Dodd, Newington, CT, 1992, Intern
Hartford County Department of Probation, Hartford, CT, 1991, Intern

Neil Siskind’s Community Assistance:
Established and operated a temporary legal clinic offering inexpensive legal services to struggling Long Islanders during the recession to help clients resolve debt, plan estate matters, organize finances, start small businesses and obtain governmental assistance such as Medicaid.

Neil Siskind’s linkedin URL: Neil Siskind- linkedin

 

As part of a long career as a business attorney, Neil Siskind has handle hundreds of real estate transactions. Such transactions have included purchases and sales of office buildings, shopping centers and apartment buildings, negotiations of office leases and retail leases, and purchases and sales of condominium, co-ops and single family homes.

Neil’s experience was initially obtained in New York’s most prominent real estate law firms and continued in the representation of businesses who have been primarily engaged in real estate investments or who have had real estate issues as ancillary to their non real estate operations. A qualified business lawyer must have strong real estate experience in order to handle the needs of business owners in all industries. Often business owners have their own personal investment or residential real estate related issues that they want their known counsel to handle. Neil Siskind has the real estate experience that businesses and their owners need.

Issues such as title, tax, tenant, landlord, partnership and construction issues must be handled with a detailed and experienced real estate eye. While many residential real estate lawyers are not qualified to handle an apartment building purchase or office lease, most commercial real estate lawyers have never even handled the purchase of a co-op apartment. Neil Siskind has handled a large volume of all such transactions.

A good business attorney has diversity and depth in his background and has a catalog of skills to call upon. Neil owns and manages his own real estate which gives special insights into an investor’s or business’s needs in a transaction from an ownership viewpoint. Neil Siskind is an experienced business and real estate lawyer who can handle commercial and residential transactions.

Neil S. Siskind
Attorney at Law
http://siskindlawfirm.com
Neil Siskind’s personal and professional references can be found at: http://siskindlawfirm.com/neil-siskind-bio/

Neil Siskind, Experienced Business Attorney

Neil S. Siskind
Attorney at Law
http://siskindlawfirm.com

Review Neil Siskind’s personal and professional references at: http://siskindlawfirm.com/neil-siskind-bio/

Volunteer, Pro Bono, and Government Background:

Learn about how we try to give back http://www.neilsiskindsupports.com

Neil Siskind’s Volunteer Work: Volunteer, Memorial Sloan Kettering Cancer Center

Neil Siskind’s Pro Bono Work: Protecting New York’s senior citizens from fraud and financial abuse www.savingseniorcitizens.com

siskindsenior-logo

Champion Children – The Siskind Law Firm We seek to inspire people with stories of  children who have overcome challenges: http://siskindlawfirm.com/champion-children/

FreeStart Business – The Siskind Law Firm We seek to help put war veterans and senior citizens in the right direction so that they can face the challenges of  the modern economy: http://siskindlawfirm.com/free-start-business/

Neil Siskind’s Government Work: Office of Senator Christopher J. Dodd, Newington, CT, 1992, Intern
Hartford County Department of Probation, Hartford, CT, 1991, Intern
Suffolk County District Attorney’s Office, Boston, MA, 1994, Intern

Neil Siskind’s linkedin URL: http://www.linkedin.com/profile/

New York Lawyer, Neil S. Siskind has been an attorney in New York for nearly 20 years. Neil has worked in prominent New York law firms and acted as In-House Counsel to a major manufacturing, licensing and distribution organization for over 10 years before starting his own law practice.

Working in law firms is a very different experience than acting as a company’s  In-House Counsel.  As an In-House lawyer, a lawyer is more involved in day to day business matters that affect a business’s operations than a law firm attorney would be.  It creates a holistic view and approach to business matters. Law firm lawyers tend to see pieces of issues after they unfold, rather than being part of issues from the moment they materialize.

It is important for your attorney to have In-House experience so that he or she is able to approach legal issues in ways that are practical to a client’s operations. Yet, the law firm experience is vital towards knowing how to handle things in a professional manner and with the appropriate amount of distance. Neil Siskind has experience in both capacities.

Moreover, a lawyer that has actually owned and operated businesses is priceless. Neil Siskind has owned several of his own businesses and handles his own investments and has experienced for himself the fortunes, misfortunes and challenges of business ownership. This gives a lawyer like Neil Siskind the ability to view transactions and conflicts from an entrepreneur’s and client’s perspective. Many attorneys have never owned a business and do not fully understand the stresses and urgency of an entrepreneur, which can make counsel to a business owner vague, academic and ineffective. To advise a business owner without ever having been one leaves a major gap in the necessities of small business counsel.

Contact New York Lawyer, Neil Siskind if you need business counsel that has been tested in various environments and comes with the experience of having himself been in the business trenches.

Neil S. Siskind
Attorney at Law
http://siskindlawfirm.com
Neil Siskind’s personal and professional references can be found at: http://siskindlawfirm.com/neil-siskind-bio/
Neil Siskind supports his community: http://www.neilsiskindsupports.com

Neil Siskind, Attorney, New York: Celebrity Brand Deals

By: Neil Siskind, New York Lawyer http://www.siskindlawfirm.com

Over the course of the past 20 years, celebrity-based and celebrity-driven fashion brands have exploded. In the 1950’s and 60’s, celebrities, such as Sophia Loren and Jackie Kennedy, were photographed wearing certain brands which created national buzzes for the respective brands and designers. But the appearance of Brooke Shields in a Calvin Klein Jeans television commercial in 1980 marked the real beginning of the modern-day phenomenon in the fashion industry where great brand exposure is not simply an “ancillary effect” of famous people voluntarily associating themselves with fashions – but is the main motivation for celebrities to wear certain brands in public. They are well-compensated for doing so, in one way or another.

There are a variety of methods that can be used for celebrities to push and promote brands. A celebrity may be compensated to appear in a brand’s commercial (think Michael Jordan for Hanes), a celebrity may be engaged as a paid “brand endorser” (think of athletes who wear only one brand of sneaker or exclusively use one brand of tennis racket), or a celebrity’s name can actually be used as the name of a product (think Donald J. Trump suits or Cindy Crawford furniture).

In the case of the latter-most example above, celebrities enter into trademark and copyright license agreements with manufacturers who then create product using a celebrity’s name, and sell the product to retailers for sale to the public.

In some cases, celebrities actually create and manufacture product lines of their own, as opposed to licensing the use of their names to third-party manufacturers. Examples of this would be the Sean John line, where Sean John (Diddy) Combs initially controlled the product line (and may still do so), and Kathy Ireland, who, in many cases, personally owns and oversees design and manufacturing of her lines.

Products can have more success when they are “celebrity-driven”, as opposed to being “named after” a celebrity. The apparel brands Sean John and Rockawear were great successes, whereas if these brands were named “Puffy” or “Jay-Z”, it is easy to imagine that they would have faltered.

The celebrity-branded-product industry has become increasingly important to celebrities themselves, and not only to manufacturers. This is especially true in the music industry where selling albums and CD’s is no longer a reality, due to the digital music industry. Musicians can no longer count on making millions of dollars from album sales, but need to rely on making themselves into brands so that they can demand large sums for personal appearances, television guest spots, concerts and merchandising. This merchandising aspect is one substitute for the album sales revenues of the past. This is why you see musicians today “acting-out” in public and creating public spectacles, and aggressively flaunting their attractive physical attributes. They are forced into such behaviors in order to draw media attention and increase their values as celebrity brands in order to enhance and maximize their non-album sales revenues.

Celebrity merchandising and licensing requires a good understanding of your product, your target market, retailer needs, and profit margins, so that you select the right celebrity with whom to work, and pay the right price for the rights. You need to decide if your money is best spent using trademark and copyright licensing strategies, or, instead, using your own trademark and having the respective celebrity appear in commercials. If you decide to license, you need to determine if you want a product line named after the celebrity, or if you would prefer to use a new trademark you create, for which a particular celebrity’s career and persona will be the driving forces.

If you are a celebrity, whether you be an actor, musician, or athlete, you need to evaluate your brand appeal, and identify the right partners to whom you will grant the rights to use of your name and likeness, in exchange for royalties or equity. You also should determine if, instead, you want to actually be involved in and control product design, production, and distribution through your own business entity, rather than licensing rights to another company. In either case, you also should consider if you want your name to be the brand, or if you want to create a trademark using something other than your own name, but for which your persona is the driving force.

Call Neil Siskind at The Siskind Law Firm http://siskindlawfirm.com/ to discuss your licensing strategy and needs.

Neil S. Siskind
Attorney at Law
http://siskindlawfirm.com
Neil Siskind’s personal and professional accolades can be found at: http://siskindlawfirm.com/neil-siskind-bio/
Neil Siskind supports his community: http://www.neilsiskindsupports.com

Neil Siskind is the Founder & Chairman of The Fatherhood Assignment
Neil-Siskind-photo
Learn more at:  http://www.neil-siskind-the-fatherhood-assignment.org/

-Neil Siskind’s Volunteer Work: Volunteer, Memorial Sloan Kettering Cancer Center
Donate to one of my needy public classrooms: http://www.donorschoose.org/NeilSiskindGiving

-Memorial Sloan Kettering Cancer Center, My Fundraiser- Help Neil Siskind help children with cancer to be more comfortable: http://mskcc.convio.net/site/TR?px=3182108&fr_id=2632&pg=personal

-Help Neil Siskind make sick children’s wishes come true: Neil-Siskind/Help-Make-A-Child-Smile.htm

-Neil Siskind’s Pro Bono Work:

Protecting New York’s senior citizens from fraud and financial abuse: www.savingseniorcitizens.com

siskindsenior-logo

Champion Children – The Siskind Law Firm We seek to inspire people with stories of  children who have overcome challenges: http://siskindlawfirm.com/neil-siskind-champion-children/

FreeStart Business – The Siskind Law Firm We seek to help put war veterans and senior citizens in the right direction so that they can face the challenges of  the modern economy: http://siskindlawfirm.com/neil-siskind-champion-children/

Neil Siskind’s Philanthropic Work:


-Hudson Riverfront Land Preservation
Neil Siskind is the Conservator of the Neil S. Siskind Nature Preserve
Neil-Siskind-Picture

The Neil S. Siskind Nature Preserve is over 7 acres of environmentally-pristine waterfront land in a magnificent setting along New York’s majestic Hudson River. The Preserve includes a variety of species of animal and plant life, and is a precious example of the thoughtful maintenance of New York’s priceless open spaces. The land’s uses are limited to outdoor recreation such as hiking and climbing, and the study of ecology, nature and land use. The Neil S. Siskind Nature Preserve allows for the intelligent contemplation of our valuable natural resources and the most effective ways to maximize them and keep them protected.

-Founder & Chairman, The Fatherhood Assignment: A think tank to educate the public about, and advocate for the children of absentee fathers. http://www.neil-siskind-the-fatherhood-assignment.org/

Neil Siskind’s Government Work:
Suffolk County District Attorney’s Office, Boston, MA, 1994, Intern
Office of Senator Christopher J. Dodd, Newington, CT, 1992, Intern
Hartford County Department of Probation, Hartford, CT, 1991, Intern

Neil Siskind’s Community Assistance:
Established and operated a temporary legal clinic offering inexpensive legal services to struggling Long Islanders during the recession to help clients resolve debt, plan estate matters, organize finances, start small businesses and obtain governmental assistance such as Medicaid.

Neil Siskind’s linkedin URL:Neil Siskind

Neil Siskind, Lawyer, New York: Don’t Lose The Real Estate In The Mix

By Neil Siskind, New York Lawyer
http://siskindlawfirm.com
Neil Siskind’s personal and professional references can be found at: http://siskindlawfirm.com/neil-siskind-bio/

Volunteer, Pro Bono, and Government Background:

Learn about how we try to give back http://www.neilsiskindsupports.com

Neil Siskind’s Volunteer Work: Volunteer, Memorial Sloan Kettering Cancer Center
Neil Siskind’s Pro Bono Work: Protecting New York’s senior citizens from fraud and financial abuse www.savingseniorcitizens.com

siskindsenior-logo

We seek to inspire people with stories of  children who have overcome challenges: http://siskindlawfirm.com/champion-children/
Champion Children – The Siskind Law Firm

We seek to help put war veterans and senior citizens in the right direction so that they can face the challenges of the modern economy: http://siskindlawfirm.com/free-start-business/
FreeStart Business – The Siskind Law Firm

Neil Siskind’s Government Work: Office of Senator Christopher J. Dodd, Newington, CT, 1992, Intern
Hartford County Department of Probation, Hartford, CT, 1991, Intern
Suffolk County District Attorney’s Office, Boston, MA, 1994, Intern

Neil Siskind’s linkedin URL: http://www.linkedin.com/profile/

The purchase of a business’ assets may include the purchase of real estate as one of those assets. You may be purchasing a large business where the real estate is an insignificant piece of the purchase. When the focus is on the enormous details involved in buying a business, the real estate can be overlooked. Moreover, if there is a small problem with the real estate, no one wants to see that kill the purchase and sale of the main asset, the business itself.

When buying assets of a business, there must be a contract like in any other real estate purchase, that provides for all of the potential real estate issues. This can be done within the same contract as the asset purchase, but may be better done in an entirely separate real estate contract. These two separate contracts should refer to each other, be cross-defaulted, and the closing of the assets under each should be contingent on the closing of the other. The buyer should do the due diligence on the real estate just as would be done on the real estate if it were being bought without a business. This can not get lost in the mix. Even if the real estate is insignificant to the overall business deal, failure to get financing for the real estate may put the buyer in a predicament. Further, if the real estate has risk for future financial obligations, such as a rise in condo maintenance or in city taxes or the property is in need of a new roof in 2 years, the buyer may be taking on more than that for which he or she bargained.

From the seller’s standpoint, you do not want a piece of real estate to provide an “out” to a buyer for an otherwise big and legally solid agreement. Make sure that you know the facts about your property and provide for limited ways for a buyer to cancel your larger business deal for small real estate issues.

Call The Siskind Law Firm http://siskindlawfirm.com/ to discuss your business transactions and get the assistance you need.

Neil S. Siskind
Attorney at Law
http://siskindlawfirm.com
Neil Siskind’s personal and professional references can be found at: http://siskindlawfirm.com/neil-siskind-bio/
Neil Siskind supports his community: http://www.neilsiskindsupports.com

Neil Siskind: LLC Operating Agreements- Overlooked Too Often

By: Neil Siskind, New York Lawyer http://www.siskindlawfirm.com

Neil Siskind is the Founder & Chairman of The Fatherhood Assignment
Neil-Siskind-photo
Learn more at:  http://www.neil-siskind-the-fatherhood-assignment.org/

Review Neil Siskind’s personal and professional references at: http://siskindlawfirm.com/neil-siskind-bio/

Volunteer, Pro Bono, and Government Background:
Learn about how we try to give back http://www.neilsiskindsupports.com

Neil Siskind’s Volunteer Work: Volunteer, Memorial Sloan Kettering Cancer Center
Donate to one of my needy public classrooms: http://www.donorschoose.org/NeilSiskindGiving
Help Neil Siskind make sick children’s wishes come true: Neil-Siskind/Help-Make-A-Child-Smile.htm

Neil Siskind’s Pro Bono Work: Protecting New York’s senior citizens from fraud and financial abuse www.savingseniorcitizens.com siskindsenior-logo

Champion Children – The Siskind Law Firm We seek to inspire people with stories of  children who have overcome challenges: http://siskindlawfirm.com/champion-children/
FreeStart Business – The Siskind Law Firm We seek to help put war veterans and senior citizens in the right direction so that they can face the challenges of  the modern economy: http://siskindlawfirm.com/free-start-business/

Neil Siskind’s Philanthropic Work:
-Hudson Riverfront Land Preservation
-Founder & Chairman The Fatherhood Assignment: A think tank to educate the public about, and advocate for the children of absentee fathers. http://www.neil-siskind-the-fatherhood-assignment.org/

Neil Siskind’s Government Work:
Suffolk County District Attorney’s Office, Boston, MA, 1994, Intern
Office of Senator Christopher J. Dodd, Newington, CT, 1992, Intern
Hartford County Department of Probation, Hartford, CT, 1991, Intern

Neil Siskind’s Community Assistance:
Established and operated a temporary legal clinic offering inexpensive legal services to struggling Long Islanders during the recession to help clients resolve debt, plan estate matters, organize finances, start small businesses and obtain governmental assistance such as Medicaid.

Neil Siskind’s linkedin URL: http://www.linkedin.com/profile/

Article:

Often a New York limited liability company (“LLC”) will be formed by individuals in the anticipation of starting a business. But many parties fail to create the agreement between them that determines how the business will be operated (the operating agreement). Of course, any attorney prefers to see such a company, once formed, or even prior to being formed, have an operating agreement. While this has obvious legal implications, aside from the legal implications the parties will benefit greatly insofar as everyone has explained and agreed to their respective responsibilities. Even if a document and no legal value, it is still a great idea to put such things in writing so that no one has any misunderstandings as to what is expected of them. While their will nevertheless be disagreements, and even disputes, having a written agreement and understanding of duties and responsibilities will unquestionably limit the disagreements as well as the fall-out therefrom.

Under NY law, if an LLC does not have an operating agreement, the NY LLC law will determine how many situations are handled. While in many cases, the law provides for a fair and even-handed resolution of events, there will no-doubt be situations where the statute just will not do. For example, the NY LLC statute provides that upon death of an LLC member, his/her estate may act in the decedent’s place for LLC matters. But the remaining members may not want to work with an estate- or with any person or party other than he or she with whom they started the business. Thus, an operating agreement may provide that upon death of a member, the member’s interests in the company are assigned to the remaining members. Or perhaps the agreement may provide that until an estate is settled, the deceased member loses his/her voting rights. In any event, the point is that there are many situations where the LLC statute would make a remaining member miserable.

Many people enter into a partnership with the best of intentions and positive thoughts. But many do not leave the partnership in this same state of mind. Moreover, an agreement is as helpful to people who are closely-knit and thinking positive thoughts as it is for sophisticated investors who have strict profit expectations. Agreements can secure a bond of trust when expectation are clear and acknowledged.

Neil S. Siskind, Attorney at Law
http://siskindlawfirm.com
Neil Siskind’s personal and professional references can be found at: http://siskindlawfirm.com/neil-siskind-bio/

Neil S. Siskind, Attorney, New York: How Trademark Licensing Works For Everyone

By: Neil Siskind, New York Lawyer http://www.siskindlawfirm.com

Neil Siskind is the Founder & Chairman of The Fatherhood Assignment
Neil-Siskind-photo
Learn more at:  http://www.neil-siskind-the-fatherhood-assignment.org/

Review Neil Siskind’s personal and professional references at: http://siskindlawfirm.com/neil-siskind-bio/

Volunteer, Pro Bono, and Government Background:
Learn about how we try to give back http://www.neilsiskindsupports.com

Neil Siskind’s Volunteer Work: Volunteer, Memorial Sloan Kettering Cancer Center
Donate to one of my needy public classrooms: http://www.donorschoose.org/NeilSiskindGiving
Help Neil Siskind make sick children’s wishes come true: Neil-Siskind/Help-Make-A-Child-Smile.htm

Neil Siskind’s Pro Bono Work: Protecting New York’s senior citizens from fraud and financial abuse www.savingseniorcitizens.com siskindsenior-logo

Champion Children – The Siskind Law Firm We seek to inspire people with stories of  children who have overcome challenges: http://siskindlawfirm.com/champion-children/
FreeStart Business – The Siskind Law Firm We seek to help put war veterans and senior citizens in the right direction so that they can face the challenges of  the modern economy: http://siskindlawfirm.com/free-start-business/

Neil Siskind’s Philanthropic Work:
-Hudson Riverfront Land Preservation
-Founder, The Fatherhood Assignment: A think tank to educate the public about, and advocate for the children of absentee fathers. http://www.neil-siskind-the-fatherhood-assignment.org/

Neil Siskind’s Government Work:
Suffolk County District Attorney’s Office, Boston, MA, 1994, Intern
Office of Senator Christopher J. Dodd, Newington, CT, 1992, Intern
Hartford County Department of Probation, Hartford, CT, 1991, Intern

Neil Siskind’s Community Assistance:
Established and operated a temporary legal clinic offering inexpensive legal services to struggling Long Islanders during the recession to help clients resolve debt, plan estate matters, organize finances, start small businesses and obtain governmental assistance such as Medicaid.

Neil Siskind’s linkedin URL: http://www.linkedin.com/profile/

Article:

Licensing of Intellectual Property includes the licensing of trademarks, patents and copyrights. This article is related to trademark licensing only. Subsequent articles will address copyright and patent licensing.

Trademark licensing occurs when a trademark (or service mark) owner grants permission to a third party to use the owner’s trademark in commerce in connection with the sale of products and service.

Why would a trademark owner grant such permission? This often occurs where a trademark owner has built “brand equity” such that the trademark has value in the market. As such, the trademark owner wants to exploit or capitalize on that value. One reason to use a licensing model rather than the mark’s owner engaging in the manufacture of products or performance of services itself is for the purpose of limiting risk. By collecting royalties where the licensee takes all the inventory risk or operational risk, the licensor can make a profit without significant expense. Secondly, a licensor may have access to distribution channels of his main categories of products, but not for other categories of products. Thus, licensing will give the branded products instant access to markets.

A licensee benefits from a license because the licensee can instantly get brand recognition on products, where it may otherwise take years, and millions of dollars to do so. Moreover, a licensee may already be selling product through a distribution channel and can instantly sell more product by putting a well-known name on the product being sold. The opportunity to do any of the aforesaid come with a price, such as upfront payments and royalty fees, that the licensee has to calculate to ensure that using the brand of another on the licensee’s own products or services makes financial sense. The additional sales may come at a cost that does not make financial sense.

Licensing of a trademark or brand can benefit parties on both sides of a transaction if they weigh the costs and risk against the profit potential.

Notes: Future articles will examine trademark licensing in more depth. I will also compare franchising to licensing in future articles.

Call The Siskind Law Firm to discuss your transaction whether you be the perspective  licensor or licensee.

Neil S. Siskind
Attorney at Law
http://siskindlawfirm.com