Rules and Regulations Compliance

Rules and Regulations Compliance

Rules and regulations compliance and data management are key issues driving the manufacturing industry's ability to meet consumers' needs and commercial contracts, and governing laws in different plant locations. Many industries, including manufacturing, face challenges of managing, protecting, and securing of all the company's information assets. As technology advances, the increase of digitally created and managed drawings, records, and communications makes users consider how all systems meet with the regulatory and legal environments. All company data must be managed in a trusted, secure, and reliable form (Macarthur Stroud International, 2004). Riordan Manufacturing must prepare for potential legal action should it occur. For all the previously discussed recommendations, from sales and marketing to human resources and even the operational and logistical suggestions, Riordan Manufacturing must consider the legal ramifications and potential legal risks involved in the implementation of any changes. Not only should Riordan Manufacturing consult with the legal department; each suggestion must retain a level of legal scrutiny even before presenting suggestions to upper management.

Potential Legal Issues

Currently Riordan Manufacturing leverages the legal advice of the law offices of Litteral and Fink, who manages not only their litigations but also all legal advice. It is the direction of this document that any proposed recommendations be reviewed by the legal team at Litteral and Fink and that all advice provided be considered, creating legal compliance will not only provide piece of mind but also ensure a limited potential for future litigation. The following is a list of potential legal issues or concerns for Riordan Manufacturing:

Corporate Tax Issues

Two of the top corporate tax issues in today's economy are "research and development tax credit" and "transfer pricing". The R&D tax credit has been an area of dispute for quite some time; while transfer pricing is a strategy of shifting profits from high-tax countries to low-tax countries (Reuters, 2012).

Employee Compensation Issues

Riordan should not expect any legal issues concerning employee compensation, provided the organization adheres to the local laws that pertain to fair compensation. With Riordan operations in China, the organization must abide by the satisfactory standards as established by the host country of Riordan's operations. However, if the organization is sending U.S. citizen employees abroad, they are to be compensated in accordance with their contracts, which are to be established prior to their deployment.

Company Patent Infringement Issues

There are two areas of patent infringement that affect Riordan Manufacturing, other companies infringing on Riordan's patents and Riordan infringing on other companies patents. Regardless, according to Neustel Law Offices (2012) there are ways to avoid and detect patent infringement.

Avoiding patent infringement. There are several steps for Riordan to take in order to avoiding patent infringement.

1. Start research into patents early in the concept stage. By looking into the issue before starting production, Riordan can avoid options that carry a high risk of infringement liability.

2. Do not ignore potential litigation. If Riordan develops a product and refuses to consider the possibility of patent infringement, the possibility exists of being convicted of deliberately copying the product.

3. Search for patents Riordan might be infringing upon. The U.S. Patent office can be searched online. Use keywords, inventors, industry, and any other information related to the product. Reviewing competitor's patents will often reduce future liability

4. Screen all potential patent violations before sending them to the legal office. This step has the potential to save Riordan $5,000-15,000 per patent reviewed. Things to look for in a patent screening are

a. Patent expiration date. In the U.S. design patents expire 14 years after the issue date

b. Maintenance Fees: If maintenance fees have not been paid, the patent becomes invalid. This is something for Riordan to watch on their own patents as well.

c. Review the patent for patent claims, or what the patent covers. If Riordan's new product does not fall into the covered claim, then it is time to send the patent to the legal office for official review.

5. Once the patent in question has been sent to the legal office there are several more steps that need to be taken. It is important for Riordan to remember any conversations concerning the potential for patent infringement are not covered under attorney client privilege.

d. Preliminary Patent Infringement Review. This is a brief review performed by the legal office to see if there are reasonable reasons for a patent suit by the patent owner. Fees for the review range from $600-2,500.

e. Formal Infringement Review is the next step. If Riordan's attorneys decide there is significant reason based on the preliminary review indepth research is the next step. This involves patent history and validity claims. While the fees for this type of review are costly, it can save Riordan significant costs in the future.

f. Patent Invalidity Review is the final formal stage. Once the legal office decides there is potential for patent infringement the search begins for validity. If there are many reasons to invalidate a patent claim, including preexisting patents.

Labor Law Issues

Two important issues currently being addressed in readings on the Internet about Labor law is that of wage-and -hour litigation and court decisions.