Governor Newsom has just signed SB 54, which will require venture capital firms in the state of California to annually report the diversity of founders they are backing.  According to Tech Crunch’s reporting, SB 54 will result in amendments to the Business and Professional Code and also will amend part of the Government Code pertaining to venture capital. SB 54 goes into effect as of March 1, 2025, and requires the following aggregated information to be reported on all VC investments:

• The gender identity of each member of the founding team, including nonbinary and gender-fluid identities.
• The race of each member of the founding team.
• The ethnicity of each member of the founding team.
• The disability status of each member of the founding team.
• Whether any member of the founding team identifies as LGBTQ+.
• Whether any member of the founding team is a veteran or a disabled veteran.
• Whether any member of the founding team is a resident of California.
• Whether any member of the founding team declined to provide any of the information described above.

Failure to timely comply with the reporting requirement may result in the assessment of a penalty of One Hundred Thousand Dollars ($100,000.00) to be assessed against a “covered person.”  SB 54 defines “covered person” as any person who does both of the following:

• Acts as an investment adviser to a venture capital company.
• Meets any of the following criteria: (i)  Has a certificate from the Commissioner of Financial Protection and Innovation pursuant to Section 25231 of the Corporations Code.  (ii) Has filed an annual notice with the Commissioner of Financial Protection and Innovation pursuant to subdivision (b) of Section 25230.1 of the Corporations Code. (iii) Is exempt from registration under the Investment Advisers Act of 1940 pursuant to subsection (l) of Section 80b-3 of Title 15 of the United States Code and has filed a report with the Commissioner of Financial Protection and Innovation pursuant to paragraph (2) of subdivision (b) of Section 260.204.9 of Title 10 of the California Code of Regulations.

SB 54 provides that reports will be due by March 1st of each year. Tech Crunch reports that supporters of SB 54 have argued that this law will make venture capital more “transparent.”  According to Tech Crunch, less than 3 % of all venture capital investments go to women or black founders. Tech Crunch reported that SB 54 was opposed by the National Venture Capital Association and TechNet, though both organizations professed to support generally the concept of diversity in venture capital. Although the impact of SB 54 will go beyond just the software industry, this new law is likely to have a significant impact on companies in Silicon Valley, particularly those having diverse founders, as mandated reporting will likely incentivize venture capital firms to further focus on considering diversity in investment.  If your company has diverse founders, you will definitely want to keep this law on your radar screen going forward.

Silicon Valley Business Law Blog’s Kristie Prinz recently sat down for an interview with Beau Fernald, Fractional COO and Principal of Aware Insights LLC to discuss the topic of software implementation–a subject which is responsible for many business contract disputes across the software and digital health industries.

Why does software implementation cause so many business disputes?

One of the most common contract drafting mistakes businesses make in the software and digital health industries is failing to sufficiently define the parties’ mutual expectations for a software implementation.  Most digital health and software contracts, in fact, are completely silent on the issue, regardless of the time, financial or other requirements of the implementation, which may be extensive.  While Beau is not a business contracts lawyer and brings a different operational perspective to the issue of software implementation, he offers some additional insight on software implementation mistakes that SaaS, software, and digital health companies make, the consequences of those mistakes, and best practices on how to avoid them altogether.  Beau strongly agrees the contention that software implementation understandings need to be articulated and memorialized in a writing to avoid subsequent misunderstandings that may result in a legal dispute.

For more information on Beau Fernald, you can view his professional profile at:  https://www.linkedin.com/in/beaufernald/.   The Aware Insights LLC website is at: https://awareinsights.com.

Kristie Prinz recently sat down for an interview with Fractional COO Beau Fernald on software implementation.

 

I am excited to announce that my firm is adopting a number of new options for working with our clients. We received feedback asking for new fixed rate and subscription packages for specific business scenarios, and in response to that feedback we have designed a variety of new packages designed around those requests. These options are available for viewing upon request.  Existing clients who are working with us already under another billing arrangement will be able to switch to a new plan at any time upon request. I am confident that these new options will address new business needs of the technology and life sciences communities we serve. If you have an idea for a billing arrangement that the firm has not yet developed, we invite you to submit your ideas for consideration at kprinz@prinzlawoffice.com.

Price: $25. Special: Free Viewing Click here to view If your small business is not in the life sciences or high technology industry, then you may think that your company has no intellectual property that you should be concerned about.  However, the reality is that most small businesses today have intellectual property, regardless of the industry that they are in. This program was created to educate small businesses on what types of intellectual property they may have in their business and some of the issues that they need to be aware of.  Program highlights include explaining what constitutes a copyrightable work, common copyright issues that arise for small businesses, how to ensure that you own the rights in design materials that you have developed, and  how to protect your business ideas and plans.  The program is primarily intended for business owners who have a “low tech” business and are not regularly dealing with intellectual property issues in their company,  so no prior knowledge of intellectual property is assumed.

The speaker for this event is Kristie Prinz, the Managing Principal of the intellectual property and e-commerce boutique law firm, The Prinz Law Office, located in Silicon Valley, CA, who has extensive experience in working with entrepreneurs, start-up companies, and small businesses in the Silicon Valley. Ms. Prinz is a frequent speaker and media contributor on intellectual property-related issues.  Her media interviews and appearances include Dow Jones, CNN Radio, American Public Radio’s “Marketplace,” IP360, California Lawyer, Genetic Engineering & Biotechnology News, and Sky Radio.  She also authors the California Biotech Law Blog and the Silicon Valley IP Licensing Law Blog, and has been a regular contributor to the “Ask the Lawyer” column on intellectual property law for Lawyers.com. Ms. Prinz is an active member of the American Bar Association, where she serves as Chair of both the Programs and VOIP Committees of the Science and Technology Section.  She is also active in the Cyberspace Committee of the ABA and California State Bar’s Business Sections and in the Silicon Valley Chapter of the National Association of Women Business Owners, where she recently finished a three-year term as a member of the board of directors.  Her other activities include currently serving on the Advisory Board for the Silicon Valley Chapter of Licensing Executives Society.  Ms. Prinz previously served as chair of the ABA’s Copyright Licensing Subcommittee for the Intellectual Property Law Section, and has served multiple terms on the Copyright Law and Corporate IP Management Committees for the Intellectual Property Owners Association. Ms. Prinz graduated summa cum laude with a BA in Political Science and Spanish from Furman University, and she is a graduate of Vanderbilt University School of Law. Time: approximately 33 minutes.

Price: $45.  Special: Free Viewing

Click here to view

 

 

Nondisclosure agreements are perhaps the most overlooked agreements at any business.  However, companies overlook these agreements at their own peril.  This presentation examines what you really need to be considering in these agreements.  Webinar highlights include an overview of  the elements that should be in a well-drafted nondisclosure agreement and some of the tricks and traps that businesses often fall into in negotiating these agreements.

This webinar is based on a program, which was first presented to several clients in 2008 and 2009 in order to educate them on the issues involving nondisclosure agreements.

The program is designed to educate businesses on the important aspects of a nondisclosure agreement and to inform them about some of the issues that they need to watch out for in these types of agreements.

The speaker for this event is Kristie Prinz, the Managing Principal of the intellectual property and e-commerce boutique law firm, The Prinz Law Office, located in Silicon Valley, CA, who has extensive experience in negotiating and drafting nondisclosure agreements for high tech and life sciences clients.

Ms. Prinz is a frequent speaker and media contributor on intellectual property-related issues.  Her media interviews and appearances include Dow Jones, CNN Radio, American Public Radio’s “Marketplace,” IP360, California Lawyer, Genetic Engineering & Biotechnology News, and Sky Radio.  She also authors the California Biotech Law Blog and the Silicon Valley IP Licensing Law Blog, and has been a regular contributor to the “Ask the Lawyer” column on intellectual property law for Lawyers.com.

Ms. Prinz is an active member of the American Bar Association, where she serves as Chair of both the Programs and VOIP Committees of the Science and Technology Section.  She is also active in the Cyberspace Committee of the ABA and California State Bar’s Business Sections and in the Silicon Valley Chapter of the National Association of Women Business Owners, where she recently finished a three-year term as a member of the board of directors.  Her other activities include currently serving on the Advisory Board for the Silicon Valley Chapter of Licensing Executives Society.  Ms. Prinz previously served as chair of the ABA’s Copyright Licensing Subcommittee for the Intellectual Property Law Section, and has served multiple terms on the Copyright Law and Corporate IP Management Committees for the Intellectual Property Owners Association.

Ms. Prinz graduated summa cum laude with a BA in Political Science and Spanish from Furman University, and she is a graduate of Vanderbilt University School of Law.

Time: approximately 26 minutes.

Price: $25. Special: Free Viewing

Click here to view If your small business is not in the life sciences or high technology industry, then you may think that your company has no intellectual property that you should be concerned about.  However, the reality is that most small businesses today have intellectual property, regardless of the industry that they are in. This program was created to educate small businesses on what types of intellectual property they may have in their business and some of the issues that they need to be aware of.  Program highlights include explaining what constitutes a copyrightable work, common copyright issues that arise for small businesses, how to ensure that you own the rights in design materials that you have developed, and  how to protect your business ideas and plans.  The program is primarily intended for business owners who have a “low tech” business and are not regularly dealing with intellectual property issues in their company,  so no prior knowledge of intellectual property is assumed. The speaker for this event is Kristie Prinz, the Managing Principal of the intellectual property and e-commerce boutique law firm, The Prinz Law Office, located in Silicon Valley, CA, who has extensive experience in working with entrepreneurs, start-up companies, and small businesses in the Silicon Valley. Ms. Prinz is a frequent speaker and media contributor on intellectual property-related issues.  Her media interviews and appearances include Dow Jones, CNN Radio, American Public Radio’s “Marketplace,” IP360, California Lawyer, Genetic Engineering & Biotechnology News, and Sky Radio.  She also authors the California Biotech Law Blog and the Silicon Valley IP Licensing Law Blog, and has been a regular contributor to the “Ask the Lawyer” column on intellectual property law for Lawyers.com. Ms. Prinz is an active member of the American Bar Association, where she serves as Chair of both the Programs and VOIP Committees of the Science and Technology Section.  She is also active in the Cyberspace Committee of the ABA and California State Bar’s Business Sections and in the Silicon Valley Chapter of the National Association of Women Business Owners, where she recently finished a three-year term as a member of the board of directors.  Her other activities include currently serving on the Advisory Board for the Silicon Valley Chapter of Licensing Executives Society.  Ms. Prinz previously served as chair of the ABA’s Copyright Licensing Subcommittee for the Intellectual Property Law Section, and has served multiple terms on the Copyright Law and Corporate IP Management Committees for the Intellectual Property Owners Association. Ms. Prinz graduated summa cum laude with a BA in Political Science and Spanish from Furman University, and she is a graduate of Vanderbilt University School of Law. Time: approximately 33 minutes.

Price: $45.  Special: Free Viewing

Click here to view Nondisclosure agreements are perhaps the most overlooked agreements at any business.  However, companies overlook these agreements at their own peril.  This presentation examines what you really need to be considering in these agreements.  Program highlights include an overview of  the elements that should be in a well-drafted nondisclosure agreement and some of the tricks and traps that businesses often fall into in negotiating these agreements. This webinar is based on a program, which was first presented to several clients in 2008 and 2009 in order to educate them on the issues involving nondisclosure agreements. The program is designed to educate businesses on the important aspects of a nondisclosure agreement and to inform them about some of the issues that they need to watch out for in these types of agreements. The speaker for this event is Kristie Prinz, the Managing Principal of the intellectual property and e-commerce boutique law firm, The Prinz Law Office, located in Silicon Valley, CA, who has extensive experience in negotiating and drafting nondisclosure agreements for high tech and life sciences clients. Ms. Prinz is a frequent speaker and media contributor on intellectual property-related issues.  Her media interviews and appearances include Dow Jones, CNN Radio, American Public Radio’s “Marketplace,” IP360, California Lawyer, Genetic Engineering & Biotechnology News, and Sky Radio.  She also authors the California Biotech Law Blog and the Silicon Valley IP Licensing Law Blog, and has been a regular contributor to the “Ask the Lawyer” column on intellectual property law for Lawyers.com. Ms. Prinz is an active member of the American Bar Association, where she serves as Chair of both the Programs and VOIP Committees of the Science and Technology Section.  She is also active in the Cyberspace Committee of the ABA and California State Bar’s Business Sections and in the Silicon Valley Chapter of the National Association of Women Business Owners, where she recently finished a three-year term as a member of the board of directors.  Her other activities include currently serving on the Advisory Board for the Silicon Valley Chapter of Licensing Executives Society.  Ms. Prinz previously served as chair of the ABA’s Copyright Licensing Subcommittee for the Intellectual Property Law Section, and has served multiple terms on the Copyright Law and Corporate IP Management Committees for the Intellectual Property Owners Association. Ms. Prinz graduated summa cum laude with a BA in Political Science and Spanish from Furman University, and she is a graduate of Vanderbilt University School of Law. Time: approximately 26 minutes.