Tech & Sourcing @ Morgan Lewis

A recent judgment from the Dubai Court of First Instance determined that part of an employee’s remuneration can be paid in cryptocurrency, but notably does not change the basic principle that cryptocurrencies cannot be the sole form of remuneration in an employee’s salary package.

As part of our Spotlight series, Dennis C. Gucciardo, who counsels medical device manufacturers throughout the product lifecycle in the US Food and Drug Administration (FDA) regulatory context, shares insight into some important considerations when creating, reviewing, and implementing medical device product warranties.

Financial regulators in the United Kingdom, European Union, and United States are proposing new rules to regulate how financial products are promoted on social media platforms. There is a particular focus on financial influencers, who are individuals or groups with large followings on social media that promote financial products or services, also known as "finfluencers.” Regulators are taking action against finfluencers promoting what they deem to be high-risk financial products, including cryptoassets, after a series of cases where financial products promoted online led to huge losses for consumers.

Although the metaverse as a retail market is a relatively new idea, both established and emerging fashion brands are trying to make the most of this new way of engaging with customers. Combining aspects of virtual reality, augmented reality, and mixed reality, the metaverse allows businesses to connect directly with consumers and to conduct business on a new global, digital platform.

The Digital, Culture, Media and Sport Committee (DCMS) of the UK Parliament published a call for evidence on the operation, risks, and benefits of non-fungible tokens (NFTs) and blockchain. The DCMS noted that digital assets such as NFTs provide for flexible ownership, making them attractive for wide adoption. But with limited NFT regulation in the United Kingdom, the DCMS is considering how investors may be exposed.

The UK’s Law Commission (the Commission) published a consultation paper on July 28, 2022, proposing certain reforms to private property law in relation to digital assets, which was in response to the UK government requesting the Commission to ensure that the law can accommodate digital assets as they continue to evolve and expand. The Commission acknowledged the increasingly important role digital assets play and that property rights are key for the proper characterization of novel and complex legal relationships involving digital assets.

As part of our Spotlight series, Dion Bregman (who wears many hats at Morgan Lewis, such as deputy leader of the firm’s intellectual property practice, leader of the firm’s Patent Trial and Appeal Board (PTAB) team, managing partner of the firm's Silicon Valley office, and co-leader of the firm’s technology industry team) shares some of his meta thoughts. As a follow up to Dion’s recent participation in a panel discussion, An Introduction to the Metaverse, Dion provides insight into some important developments, issues, and opportunities, as we all continue to focus on Keeping Up with the Metaverse. 

A new Morgan Lewis White Paper, Bipartisan Proposal Attempts to Provide Solutions for Comprehensive Regulation of Digital Assets, analyzes the proposed Responsible Financial Innovation Act (RFIA) in the United States from several different angles, including with respect to issues such as key definitions in this emerging space, jurisdiction, ancillary assets (which are not fully decentralized), stablecoin issuance, taxes, disclosures, and money transmission. 

On March 11, 2022, the UK Financial Conduct Authority (FCA), the Bank of England, and the Office of Financial Sanctions Implementation (OFSI) released a joint statement reiterating that all UK financial services firms, including the cryptoasset sector, are expected to ensure compliance with economic sanctions.

Non-fungible tokens (NFTs) have exploded in popularity over the past year. Use cases for NFTs have been growing as more industries are realizing the benefits they present. A report by blockchain specialist Chainalysis found that almost $41 billion was spent on NFTs in 2021—a number that is likely to continue growing.