Have to love a United States District Court complaint that starts as follows:

“The publicized origin story of Square, Inc. is a fabrication. The business now known as Square was not created solely by Jack Dorsey and James McKelvey. It was Professor Robert Morley— and Dr. Morley alone— who invented the Square card reader, and Dr. Morley coinvented the corresponding magnetic stripe decoding algorithms of the Square app. Dr. Morley had over a decade of experience in the credit card industry, spanning card reader technology,
industry contacts, and business operations. In contrast, Messrs. Dorsey and McKelvey had no noteworthy experience in the credit card industry. Dorsey, Morley, and McKelvey worked together in a joint venture with the goal of entering the mobile credit card transaction industry inventing the Square card reader, which enabled Square’s entry into the mobile credit card transaction industry, Dr. Morley contributed his technological expertise and knowledge of the credit card industry to the joint venture. But Messrs. Dorsey and McKelvey betrayed the joint venture by incorporating Square, Inc., dictating the ownership of the newly incorporated company, and cutting Dr. Morley completely out of the enterprise.And in an attempt to whitewash these transgressions, Square has embroiled Dr. Morley in years of litigation and proceedings before the United States Patent and Trademark Office— forcing him to defend himself against the company he helped create. This lawsuit seeks justice for Dr. Morley, redress and redemption.”

For you startup litigation geeks:

Count One – Breach of Joint Venture Agreement

Count Two – Breach of Fiduciary Duty

Count Three – Unjust Enrichment

Count Four – Patent Infringement

Count Five – Consturctive Trust

Count Six – Civil Conspiracy

Count Seven – Negligent Misrepresentation

Count Eight – Fraud

Count Nine – Fraudulent Nondisclosure

Count Ten – Correction of Inventorship

Count Eleven – Conversion

Count Twelve – Misappropriation of Trade Secrets


We are all keeping our eye on the public and private initiatives surrounding the Brooklyn Tech Triangle.

President of Downtown Brooklyn Partnership, Tucker Reed, has in essence, proposed a reverse eminent domain of City owned buildings in Downtown Brooklyn to fuel the area’s need for startup real estate:

“With a footprint of over 1.2 million square feet of commercial space surrounding Cadman Plaza, municipal-owned and occupied buildings such as the Brooklyn Municipal building at 210 Joralemon Street, 65 Court Street and the U.S. Post Office and Courthouse at 271 Cadman Plaza East could be repurposed to create a new urban campus for entrepreneurs and start-ups as well as new retail opportunities to activate the ground level experience. By reactivating these assets, government could avoid having to spend additional money to renovate these aging facilities, while modernizing its footprint in newer, more efficient buildings built by partners in the private sector.”


Andrew Greenstein, counsel at Knight Capital, suggests in his
Three Quick Steps To Avoid Startup Death By Trade Secret Misappropriation Lawsuit“, the following:


1. I hereby confirm that I have not retained any documents or information relating to the business of any of my prior employers, in any form (including personal email and electronic files), that I obtained in my role as an employee of my prior employers.

Confirm  Unable to Confirm 

2. I hereby confirm that I have performed a search of my home computer, hard drives, USB drives, email, and paper files to confirm that I do not possess the information described above.

Important: If you need to perform a search before completing this document, please inform [NAME] so that you can do so.

Confirm  Unable to Confirm 

3. I hereby confirm that I have not disclosed or used, and that I will not disclose or use, any non-public documents or information relating to the business of any of my former employers during my work at [COMPANY].

Confirm  Unable to Confirm 

4. I hereby confirm that I am not subject to an agreement that prohibits me from working for a competitor of any prior employer.

Confirm  Unable to Confirm 


HealthTechAn 108 Slide and Graphic driven presentation that is packed with information and packaged with acute organization.


My latest post on Hague Child Abduction practice here, with full text of December 13, 2013 marked up for emphasis.

Of particular importance:

Mr. Medina argued that the United States is the children’s “habitual residence” because the amount of time that the children have spent here is a substantial part of their lives. Mr. Medina clearly cannot rely on the length of the children’s stay in the United States after their allegedly wrongful retention on February 2, 2013, as establishing that the United States is their “habitual residence.”


RT @RezaC1: 5 Secrets to Landing the Perfect Partnership: http://t.co/vCqFWSBveK #startups #hl74 add solid legal docs


As reported in the Huffington Post:

“It’s estimated that New York’s startup community consists of at least 200 active startups founded by Israelis alone, including Conduit, Taboola, Kaltura and Fiverr. The majority of these Israeli-founded startups have raised at least $10 million in funding each: Conduit raised $110 million, Taboola raked in $40 million, Kaltura $68 million and Fiverr counts $20 million under its belt. With Israel on the fast track to revolutionizing the tech landscape, in the next decade we can expect to see even more cash flowing into Israeli startups – and importantly, their counterparts in NYC.”


MT @marksbirch: A comprehensive NYC list


RT @AlleyWatch Structuring Your Financing as the Purchase and Sale of Convertible Notes: http://t.co/wiVCIK3LS3 #startups #hl74

“Generally, if the company and investors can agree on the pre-money valuation and therefore the price per share, there is no reason not to do an equity financing. You should be able to get through the other terms; valuation is often the most difficult term to negotiate. Convertible notes can be very useful when there is great disagreement between the company and the investors over the pre-money valuation of the company. It allows the company and investors to bridge the valuation gap. The valuation is not set, and so the company and the investors can still do a deal.”