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Contents April 2006

Welcome to the April edition of Simpson Grierson's xtech ezine.

Comic books and their characters are a feature of the childhood memories of many of us and many of the characters are still as popular as they were when we were much younger. Recently some comic superheroes were at the centre of a lawsuit against software developers. Our first article this month covers a dispute between Marvel Comics and both the developer and publisher of an online role playing game. What does this mean for other game developers and hosts? Can they be held accountable for the copyright infringements of their users?

Senior Associate (and Patent Attorney) Mark Hargreaves, along with Partner Don Holborow, of our national Information and Communications Technology Law Group provide a look at the benefits and risks patents pose and the commercial advantages that a sound patent strategy can have for your business.

Consultants provide a valuable service to Biotech companies, as they do with most knowledge driven organisations. Our third article looks at issues to be considered when engaging consultancy services. Much of this article is also applicable to other technology based companies.

The last article this month provides an update on the now finalised Reserve Bank Outsourcing Policy and what it means to those providing outsourced services in this area.

As always - please let us know if there's a topic you'd like to see covered in the ezine and feel free to forward this ezine to friends or colleagues. If you're not on the distribution list - why not sign up?

Regards,
Simpson Grierson's x-tech group

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Simpson Grierson's x-tech group provides suppliers and users of technology with specialist legal advice on information technology, intellectual property, telecommunications, biotechnology and the commercialisation of technology.

To contact us or if you would like to receive a list of all previous x-tech articles, or a hard copy of any articles please email x-tech@simpsongrierson.com or phone Amy Watkinson on +64 9 977 5446.

To read the articles in this ezine you will require Adobe Acrobat Reader. If you do not have Adobe Acrobat, please click on the Get Acrobat Reader logo to download your free copy.
IP / IT / Online Gaming: Kapow! Marvel versus the Gamers – Truth, Justice and the Protection of Copyright
In 2004 Marvel Entertainment took the unprecedented step of filing a lawsuit against the developer and publisher of the popular MMORPG, City of Heroes. Although the case settled, it may still hold important lessons for New Zealand creators and publishers of computer software.
Click here for the full article Written by Rob Batty and Earl Gray.
IP / Commercialisation / IT / Telco / Biotech: Are Patents a Risk to Your Business?
Patents were once the preserve of scientists and inventors. Now, however, all businesses should be aware of the benefits and risks they pose and the commercial advantages that a sound patent strategy can have, particularly for businesses reliant on technology or operating in the technology area.
Click here for the full article Written by Mark Hargreaves and Don Holborow.
Commercialisation / Biotech: Issues to Consider in a Life Sciences/Biotech Consultancy Services Agreement
This article outlines some of the key issues a life sciences or biotech company should consider before entering into its next consultancy services agreement.
Click here for the full article Written by Daniel Park, Jon Lewin and Mike Sage.
IT / Banking: Reserve Bank Releases Outsourcing Policy
In the March 2005 issue of FYI x-tech ("Reserve Bank Proposes Limits to Outsourcing by Banks" ), we reported that the Reserve Bank of New Zealand (RBNZ) had released a consultation paper on its proposed outsourcing policy for systemically important banks Following a round of submissions on a draft policy released in October 2005, the RBNZ released its finalised Outsourcing Policy in January 2006.
Click here for the full article Written by Jonathan Langley and Don Holborow.
Question of the month
Q: If my company has engaged an external supplier to carry out a system implementation project and I believe that the supplier is in breach of one or more of its key obligations, what can I do to help ensure that my company does not lose any right of recourse it may have by its subsequent actions?
A: The specific steps that should be taken will largely depend on the particular circumstances (including the relevant terms of the agreement) and for this reason it will be important to obtain suitable legal advice as soon as practicable after you believe that a breach has occurred. If you do not wish to take immediate action (eg terminate for breach), in most cases it will be important to ensure that you advise suppliers (ideally in writing) that your company reserves all rights in respect of the breach. This should be done each time that you take any action which might suggest that you have otherwise "forgiven and forgotten" the relevant breach.
Marc Cropper and Karen Ngan.
Related article : (March 2006) Who Does What and When - Recent UK Case Illustrates Importance of Clearly Recording Deliverables and Responsibilities in Your System Implementation Agreement.
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