Misleading claims about neutral impact of products on climate and environment
Promoting products with expressions such as “climate neutral” has the potential to be misleading and to fall foul of competition law. Such was the verdict of the Landgericht (LG) [Regional Court of] Karlsruhe in a judgment dated July 26, 2023 (case ref.: 13 O 46/22 KfH). Germany’s Unfair Competition Act (UWG) deems business practices misleading […]
Delay in moving into family home does not always prevent it being exempt from estate tax
If an heir is unable to move into the family home immediately, it may still be possible for the property to be inherited tax-free if the delay is attributable to renovation work. That was the verdict of Germany’s federal court of appeal for tax matters, the Bundesfinanzhof (BFH) (case ref.: II R 6/21). Provided certain […]
Cologne tax court rules special funds can receive preferential tax treatment
Special investment funds are eligible for preferential tax treatment, according to a recent ruling of the Finanzgericht (FG) [Fiscal Court of] Cologne from August 24, 2022 (case ref.: 12 K 1540/19). German tax law allows special funds established under Luxembourg law to benefit from certain tax privileges. MTR Legal Rechtsanwälte, a commercial law firm whose […]
Voluntary disclosure – Hesse purchases Pandora Papers
The German state of Hesse has begun delving into the so-called “Pandora Papers” with a view to uncovering evidence of tax-related offenses. Anyone considering submitting a voluntary declaration for tax evasion ought to take action now. The name “Pandora Papers” refers to the millions of financial documents that were leaked in 2021 containing information about […]
Global minimum tax for companies operating internationally
International tax law is facing a major shake-up with the introduction of a global minimum tax on corporate income. International companies need to sit up and take notice. This far-reaching reform of international tax law, which will mainly affect corporations that operate internationally, seeks to establish a global minimum tax rate of 15 percent with […]
Security for costs and the enforcement of foreign arbitration rulings
According to a judgment of Germany’s highest civil court – the Bundesgerichtshof (BGH) – claimants in proceedings to obtain a declaration of enforceability for foreign arbitration rulings must provide security for the costs of the proceedings if this is requested by the defendant. In proceedings where the claimant is resident abroad, it is important to […]
Clear wording in wills
A will should always be worded clearly to prevent misunderstandings that could lead to a last will and testament being executed in manner that is inconsistent with the testator’s wishes. In Germany, the rules of intestate succession kick in automatically in the absence of a will or contract of inheritance, and the end result may […]
Inheritance cannot be contested based on the amount of estate tax to be paid
Individuals coming into an inheritance should always be mindful of estate tax, since it is very difficult to challenge the decision to accept an inheritance at a later date on account of an error relating to estate tax. German inheritance laws provide for different tax allowances for estate tax depending on the degree of kinship. […]
The equalization of accrued gains in divorces involving an entrepreneur
There is a lot at stake when a married couple divorces and one of the spouses is an entrepreneur. One challenge this can present for both the company as well as the couple is the potential headache that comes from having to assess the value of a stake in a GmbH – a type of […]
Bank fined for GDPR breach
Violating the EU’s General Data Protection Regulation can prove to be an expensive mistake. One direct bank recently had to learn this the hard way, having been issued with a 300,000 euro fine. The General Data Protection Regulation – or “GDPR” for short – is certainly no toothless paper tiger, a fact an increasing number […]
Displaying photo wallpaper not a breach of copyright
An advertisement for a vacation rental that features a photo wallpaper does not constitute a copyright infringement, according to the Landgericht (LG) [Regional Court of] Stuttgart (case ref.: 17 O 39/22). The protection of copyright in photographs encompasses the originator’s personal rights – often referred to as “moral rights” – and the rights to (commercially) […]
Adler Group under investigation for possible accounting fraud
The Frankfurt District Attorney’s Office has ordered a large-scale raid of Adler Group premises in response to allegations of accounting fraud, embezzlement, and market manipulation. 175 investigators were sent by the Frankfurt DA’s Office and Germany’s Federal Criminal Police Office (BKA) on June 28, 2023, to search Adler Group business premises and accommodation at several […]
Emmentaler is a type of cheese, not a trademark
The European Union’s General Court has ruled in a judgment from May 24, 2023, that the word “Emmentaler” cannot be protected as a trademark for cheese from Switzerland (case ref.: T-2/21). While it is true that indications of geographical origin may be eligible for trademark protection, it is important that they not have a primarily […]
Signing an NDA
In a world where business relations are becoming increasingly international, we are also seeing international law increasingly take center stage. In this context, non-disclosure agreements (NDAs) are a must, potentially strengthening the signatory’s position vis-à-vis their business partner in the event of any legal disputes, the outcome of which is often determined by which country’s […]
Invalid commercial tenancy clause dealing with cosmetic repairs
The use of the German word “Ausführungsart” in cosmetic repairs clauses – where the term seemingly refers to the method or approach to carrying out the repairs – renders the entire clause unlawful because it is too vague. A recent ruling by Brandenburg’s higher regional court – the Oberlandesgericht (OLG) Brandenburg – saw the court […]
Real estate fund Verius in crisis
The Verius real estate financing fund has been frozen since November 2022. According to a report by German business newspaper Handelsblatt, if the fund were to be dissolved, this could result in losses of up to 500 million euros. Despite its status as a heavyweight valued at around 1.2 billion euros, Verius is in danger […]
Provisions on margins and bonuses are not a must in distribution agreements
It is not necessary for a distribution agreement to include provisions on margins and bonuses. These aspects can be determined unilaterally by the manufacturer. That was the verdict of Frankfurt’s higher regional court – the Oberlandesgericht (OLG) Frankfurt – in a judgment from February 14, 2023 (case ref.: 11 U 9/22). A great many commercial […]
German SME bond fund in liquidation
The Deutsche Mittelstandsanleihen Fonds (DMAF) has been going through the process of liquidation since June 14, 2023. Both private and institutional investors in the fund should anticipate financial losses. The news has come as a surprise to the capital markets. The DMAF, a German SME bond fund currently valued at around 150 million euros, is […]
BGH gives verdict on commission advances in the event commercial agency agreement is terminated
Restrictions, whether they be direct or indirect, must not be placed on the commercial agent’s freedom to terminate the commercial agency agreement. That was the finding of Germany’s highest court for civil disputes – the Bundesgerichtshof (BGH) – in a ruling from January 19, 2023 (case ref.: VII ZR 787/21). Commercial law in Germany stipulates […]
Düsseldorf court finds no trademark infringement in egg dispute
“Eierlikör” (German egg liqueur) contains eggs. It is for this reason – according to Düsseldorf’s regional court of appeal, the Oberlandesgericht (OLG) Düsseldorf – that a ban on promoting the drink using the word “Ei”/egg is not lawful (case ref.: I-20 U 41/22). As important as trademark protection is for businesses, it has its limits. […]
