German copyright law for cross-border infringements

The Cologne regional court strengthens authors with judgment from Dezember 21, 2023 German copyright law can also be applied when the infringement occurs on a foreign website. This was decided by the Cologne Regional Court in its judgment of December 21, 2023 (Case No.: 14 O 292/22). In Germany, copyright enjoys particularly high esteem. However, […]

Protection against competition in lease agreements

Clause effective only in case of actual impairment In commercial lease agreements, a competition protection clause can be agreed upon. However, a reduction in rent due to a breach of the competition protection clause requires that there has actually been an impairment. This was clarified by the Higher Regional Court of Düsseldorf in its judgment […]

Design protection for the game block remains

The Court of Justice of the European Union (EuG) has rejected a lawsuit with the judgment dated January 24, 2024 – T-537/22. The design of a well-known building block remains legally protected. This was decided by the European Union Court (EuG) with a verdict from January 24, 2024 (Case No.: T-537/22). The design of a […]

Shareholders must bear costs for insolvency

Federal court of justice sees no reason for limitation of liability Shareholders with unlimited personal liability must also bear the costs of the insolvency proceedings in the event of the company’s insolvency. This was decided by the Federal Court of Justice in its judgment of November 21, 2021 (Ref.: II R 69/22). Shareholders with unlimited […]

Corporate insolvencies increased in 2023

Paths to corporate restructuring According to the Federal Statistical Office, the number of corporate insolvencies in Germany between January and September 2023 has risen by 24.7 percent. In absolute numbers, this means that 13,270 companies have filed for insolvency during this period. The increasing number of insolvencies, according to the law firm MTR Legal Attorneys, […]

Raid on DWS due to suspicions of greenwashing

The Frankfurt public prosecutor’s office pursues suspected investment fraud The suspicion of greenwashing at the DWS fund house is not new, and investigations are ongoing. On February 1, 2024, the Frankfurt Public Prosecutor’s Office had the DWS premises in Frankfurt searched for the third time. This was the second raid within two weeks against DWS, […]

OLG Celle: notarial will null due to immorality

Caretaker of the deceased has no claim to the inheritance A will is considered immoral if it exploits a predicament of the testator. The Higher Regional Court (OLG) of Celle has clarified with a decision on January 9, 2024, that immorality may be present if a professional guardian exploits their position to influence a susceptible […]

Illegal loan termination due to negative SCHUFA

Judgment of the Düsseldorf Regional Court of December 21, 2023 – Case No. 8 O 55/23 A bank may terminate a loan for a significant reason. For instance, termination is possible if the repayment of the loan is at risk due to a significant deterioration in the customer’s financial situation. However, a negative SCHUFA (Credit […]

BAG on External Managing Directors as Employees

Entitlement of External Managing Director According to the Federal Vacation Act An external managing director of a GmbH (limited liability company) can be considered an employee within the meaning of the Federal Vacation Act (Bundesurlaubsgesetz – BurlG) and therefore may be entitled to corresponding claims. This was clarified by the Federal Labor Court in its […]

Retroactive Application of Tax Laws

Judgment of the Hessian Finance Court on the Taxation of a Severance Payment Tax laws can have a retroactive effect following a decision by the Hessian Finance Court on November 21, 2023 (Case No.: 10 K 1421/21). Accordingly, a severance payment can be taxed in Germany since 2017, even if the taxpayer has since moved […]

Unfair Advertising with “Known from…”

Violation of Competition Law – Judgment of the Higher Regional Court of Hamburg Many companies advertise with the note “known from…”. After a judgment of the Hanseatic Higher Regional Court of Hamburg dated September 21, 2023 (Case No.: 15 U 108/22), stricter rules may apply to this type of advertising. According to the judgment, it […]

BFH: Tax-Free Sale of Real Estate from an Estate

Landmark Judgment of the Federal Finance Court, Case No.: IX R 13/22 When an heir of a community of heirs buys out their shares and subsequently sells a property from the estate, no income tax is due on this transaction. This was decided by the Federal Finance Court in a judgment dated September 26, 2023 […]

Tax Audit – Additional Assessments by the Tax Office

Additional Assessments Not Always Justified Unclear or incomplete accounting records can lead to additional assessments by the tax office following a tax audit, necessitating back payments of taxes. Taxpayers should closely examine such additional assessments, as they may be excessive or unjustified. In accounting, businesses must adhere to the principles of proper bookkeeping and storage […]

Cologne court rules 1.3 million euros is not a tip

Large payments to authorized signatories not tax exempt Payments made to employees amounting to 1.3 million euros, or even “just” 50,000 euros, do not constitute tax-free tips. That was the verdict of Cologne’s fiscal court – the Finanzgericht (FG) Köln – in two judgments published on November 27, 2023 (case nos.: 9 K 2507/20 and […]

Pros and cons of joint custody

What it means for child support When parents separate or divorce, one of the more pressing issues is who their children should live with. While the traditional model has been for one parent to have primary custody, joint custody is becoming increasingly popular. The most important thing is that the interests of the children come […]

Unclear designation of heirs renders will ineffective

OLG München opines on vagueness of a will When it comes to wills, precise wording is a must. It ensures that the testator’s last will and testament is implemented in accordance with his or her wishes. It also keeps any interpretive wiggle room to a minimum, and for good reason. Unclear wording is a recipe […]

ProReal debenture interest payments suspended

ProReal Deutschland 7 and 8 and ProReal Europa 9 and 10 affected January 15, 2024, is the date investors in “ProReal Europa 9 GmbH” and “ProReal Europa 10 GmbH” were expecting to receive interest payments for the fourth quarter of 2023. Instead, they were met with an announcement from the Hamburg-based issuer One Group that […]

ECJ: Credit scoring potentially in breach of GDPR

Businesses must carefully consider implications of European court’s ruling In a judgment delivered on December 7, 2023, the European Court of Justice (ECJ) held that a credit score issued by the German credit bureau Schutzgemeinschaft für allgemeine Kreditsicherung – better known by its acronym “SCHUFA” – must not be the sole determining factor for assessing […]

Munich beer is no joke

Misleading claims fall foul of competition law Beer is not all fun and games. That was certainly the position of Munich’s regional court – the Landgericht (LG) München – with respect to a bottle label whose statements about the product’s origin and climate neutrality were rather economical with the truth. Given their potential to mislead […]

BGH: Property sellers’ liability for defects applies despite exclusion of warranty

Court opines on the obligation to inform and the fraudulent concealment of material defects in connection with the sale of real estate (case no.: V ZR 43/23) Anyone looking to sell real estate is obligated to disclose any defects that affect the property. According to a judgment of Germany’s federal supreme court – the “Bundesgerichtshof” […]