February 28, 2013 by Robert Tharp at 3:45:00 pm
I give God 10 percent. Why do you get 18?
That was a St. Louis minister’s response when faced with a restaurant tab that included a mandatory 18 percent tip for a group meal. The pastor’s note – written on the restaurant receipt in lieu of the tip – went viral after an Applebee’s waitress snapped a picture of it and posted it on the Internet, stoking public discussion about the widely reviled mandatory gratuity.
Although many restaurants say a mandatory gratuity is imposed as a way to protect wait staff from the possibility of being under-compensated for the hard work that goes into serving a large group, the practice often draws the ire of customers. And patrons aren’t alone in their disdain for mandatory tip policies. They are equally unpopular with many servers for income tax reasons.
Often compensated at a sub-minimum wage rate, many servers rely on tips to supplement their wages. But because mandatory “tips” are viewed by the IRS as a “service charge,” the money typically goes to the business, not the person serving the table, explains Dallas attorney Celeste Yeager, vice chair of the Hospitality Industry Team at Gardere Wynne Sewell LLP. “For these employees, it can negatively affect pay classification, causing tremendous income tax headaches,” says Yeager. “For these and other reasons, as an industry, it is time for restaurants and bars to consider stopping the practice of imposing automatic tips.”
February 1, 2013 by Robert Tharp at 3:15:00 pm
From pizza delivery businesses and neighborhood bars to car dealerships and major retailers, the NFL’s Super Bowl has become a perennial marketing opportunity and cash cow. But businesses that try to crib on the NFL’s closely guarded and trademarked words, “Super Bowl,” without permission can expect to get stiff-armed by the league’s legal team. Ever notice how so many advertisements and marketing materials have migrated to using “The Big Game” as a legal euphemism for Super Bowl Sunday?
The experience of Roy Fox is the latest example of the NFL’s Dick Butkus approach to guarding its trademarks. More than a year ago, the Indiana man had the premonition that one day the Super Bowl would feature a unique rivalry between two brothers who also happen to be head coaches: Jim and John Harbaugh. His idea: trademark the word “HarBowl” for t-shirts and other merchandise, and watch the money roll in. So Fox plunked down a $1,000 trademark application fee and set the application in motion.
Fox soon started getting calls from the NFL’s legal team, threatening the non-lawyer with stiff financial penalties if he didn’t voluntarily give up his trademark application for “HarBowl.” Clearly a true NFL fan and not a lawyer, Fox proceeded to negotiate his position all the way down to zero. He unsuccessfully offered to give up the trademark in exchange for some Indianapolis Colts tickets and an autographed photo of NFL commissioner Roger Goodell. As the legal blitz showed no sign of letting up, Fox finally took a knee and abandoned the effort.
Trademark and copyright attorney Amanda Greenspon of Dallas-based Munck Wilson Mandala says trademark owners of all kinds are obligated by law to protect and enforce their trademarks or risk losing them, but the NFL is widely known for its aggressive protection of its intellectual property.
“The NFL would have had to argue that it’s confusingly similar to the `Super Bowl’ trademark or some other mark they already own,” she says. “I don’t think it’s as clear-cut as the NFL makes it sound, but it takes would have taken some resources to go up against the NFL.”
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