Practice/Industry Group Overview
Eversheds Sutherland understands the law and technology of e-commerce and electronic payment systems and helps clients shape the future of digital commerce.
Eversheds Sutherland's Payments and Digital Commerce lawyers guide clients through the complex interplay of business trends, technological developments, intellectual property matters, and banking and financial regulations. Our lawyers’ deep understanding enables them to ask the right questions and anticipate potential problems when structuring a joint venture, acquisition or when trying to raise capital. We know the current norms in the industry on terms for joint ventures, growth equity and acquisitions. We also analyze the important intellectual property issues that frequently arise in this industry. In addition, we help our clients attract and retain exceptional talent through employee benefits and executive compensation know-how, and bring to bear broad knowledge of corporate law, securities, finance, taxation and litigation.
Our clients are some of the largest companies in the payments and digital commerce arena as well as some of the rising stars. Our lawyers stay abreast of the technological developments in e-commerce that have increased this market's size significantly since 2008 and revolutionized how customers select goods and services and make payments—including Mobile Wallet and M-Commerce transactions. We structure deals and establish business relationships that take into account all of the distinctive stress points in the industry.
In the payments area, we represent payments processors, financial institutions, and technology providers. In some areas, we represent numerous industry participants facing similar challenges.For example, we launched the Eversheds Sutherland SALT Digital Economy Forum, which provides legislative monitoring and advocacy, as well as a venue for sharing insights and research, for businesses grappling with the complicated state and local tax landscape in the digital economy.
Why Eversheds Sutherland
Business and technical understanding. We understand the business of payments and digital commerce, including knowing how payment systems work, and understanding the demands of intellectual property law, information security standards and the rules of card networks. This enables us to help clients find creative solutions to the legal issues raised when an innovative payments concept comes to market or a potential acquisition or joint venture is contemplated.
Independence. Our practice deliberately avoids tying itself to a single payment card issuer or network, to allow us to serve the needs of other participants in the market. This lets us build a reputation as objective legal professionals capable of aiding any payments or e-commerce business. As a result, we have contacts and relationships throughout the industry that we can bring into play as circumstances warrant.
Intellectual property savvy. IP represents one of the most important areas in e-commerce and payments. We know the patent landscape in the payments arena, enabling us to spot potential issues before detail patent searches are run. We regularly engage in domain name acquisitions, work with clients on Web 2.0 policies, web-content monetization and draft linking agreements. We handle infringement issues unique to the Internet (for example metatags and other electronic coding) and litigate and arbitrate claims of cybersquatting and online infringement.
Transactional experience. In a rapidly changing field like payments and digital commerce, mergers and acquisitions play a huge part in many companies' business strategy. We are adept at licensing and other transfers of technology; we help clients engaged in the development, manufacturing and sale of new technology and products. We know technology joint ventures and R&D agreements as well as outsourcing of IT and related computer/data services.
Nuts and Bolts
Our clients in this area include:
- E-commerce businesses
- Financial services companies
- Online retailers
- Specialty retailers
- Chemical distributors
- Hotel conglomerates
- Health care providers
- Luxury goods manufacturers
- Entertainment software providers
- Distance learning businesses
- Online training businesses
- Auction sites
- Affiliate marketing syndicates
- Electronic publishers
- Internet service providers
Our payments and digital commerce services include:
- M&A transactions involving purchases and sales of payments industry businesses and networks
- Purchases and sales of portfolios of payment card contracts and related assets
- Joint ventures and other strategic relationships involving parties engaged in the payment card industry, including referral arrangements among financial institutions, payment processors and independent sales organizations
- Analysis of issues related to the introduction of new types of payment products and structuring strategic alliances to bring them to market
- Advice on card network rules and compliance issues
- Implementation of mobile commerce products and services, including establishing relationships among application and infrastructure partners necessary to implement m-commerce products and services
- Technology and intellectual property licensing arrangements
- Review and analysis of the patent and intellectual property landscape related to payment cards, electronic payments and related financial services products
- Analysis of issues and implementation of solutions related to stored value cards, including structuring arrangements to address “breakage”
- Prosecution and litigation of patents and other intellectual property used in payment card and payment network applications
- Advice on the implication of banking and financial services laws and regulations to bank and non-bank financial services companies
Our m-commerce services include:
- Structuring and implementing multiparty arrangements for the development and implementation of mobile wallets
- Structuring and negotiating customer and supplier m-commerce transactions, including:
- joint marketing agreements
- carrier agreements
- software acquisition and implementation agreements
- manufacture and supply agreements
- infrastructure outsourcing agreements
- payment processing agreements
- financial institution and network agreements
- trusted service manager agreements
- Developing customer and supplier agreement forms for m-commerce solution providers.
Eversheds Sutherland's lawyers combine an understanding of the business of electronic payments and digital commerce, knowledge of technological trends and extensive legal experience to find creative solutions for our clients.
Sutherland represents financial institution in creating multi-year license and services arrangement with leading payment card network.
Sutherland represented one of the world’s largest financial institutions in creating a multi-year license and services arrangement with one of the leading payment card networks. One of the most innovative and significant recent transactions in the payments industry, the platform license was designed to give the financial services client greater control and visibility over its business while providing the payment card network assurance of compliance with its business rules and policies.
Represented a global electronic payments company in a multibillion dollar transaction, which created the largest U.S. provider of payment card processing services to merchants.
Served as lead counsel to a major global payment processing service corporation in the creation, with a global bank, of a multibillion dollar transaction which created the largest U.S. provider of payment card processing services to merchants. We have represented this client in numerous other transactions and projects in the payments and technology fields over the years.
Provides patent prosecution, counseling and licensing advice to a leading payment processing service and technology provider.
Provides patent counseling and worldwide patent prosecution services to a leading payment processing service and technology provider to financial institutions. Our guidance covers patent portfolio strategies, technology/intellectual property licensing and third-party patent issues.
Articles Authored by Lawyers at this office:
NIST Releases Revised Framework for Public Comment
, January 12, 2017
The National Institute of Standards and Technology (NIST) has released draft revisions to its voluntary “Framework for Improving Critical Infrastructure Cybersecurity.” This update revises the Framework to reflect input from NIST’s December 2015 Request for Information as well as...
Amendment to Criminal Procedure Rule 41 Impacts Data Privacy in U.S. and Abroad
Mark D. Herlach,Francis X. Nolan,Robert D. Owen,Phillip E. Stano,Mary Jane Wilson-Bilik, December 06, 2016
On December 1, 2016, amended Rule 41 of the Federal Rules of Criminal Procedure (FRCP) went into effect, thus expanding federal law enforcement’s power to search and seize electronic data. The new rule will allow law enforcement to seek a warrant from a “magistrate judge with authority...
ISAO Standards Group Releases Guidelines for Information Sharing
, October 07, 2016
Information and Sharing and Analysis Organizations, or ISAOs, can now look to four new publications for guidance in establishing ISAOs and in sharing cybersecurity information and interacting with the intelligence community, law enforcement agencies, U.S. regulatory agencies, and the Department of...
White House Cyber Commission Issues Requests for Information
, August 15, 2016
The White House’s Commission on Enhancing National Cybersecurity has announced in a Federal Register Notice that it is seeking information on a variety of cybersecurity topics. The Notice indicates that the Commission is seeking information on topics including critical infrastructure...
Federal Judge Dismisses Class Action Arising from Data Breach
, August 11, 2016
A D.C. federal judge has dismissed a putative class action against CareFirst BlueCross BlueShield that arose from a 2014 data breach. The judge determined that the alleged injuries suffered by the seven named plaintiffs failed to establish standing to sue, finding that “merely having...
Voice Over Internet Protocol and the TCPA: The Hidden Pothole on the Information Super Highway
Thomas M. Byrne,Juan C. Garcia,Patricia A. Gorham,Phillip E. Stano,Rocco E. Testani, July 27, 2016
Since the enactment of the Telephone Consumer Protection Act (TCPA) in 1991, technological advances in the way people communicate have often outpaced the ability of the courts and the Federal Communications Commission to reconcile those advances with the TCPA. The proliferation of cell phones and...
EU Leaders Approve EU-U.S. Privacy Shield
, July 14, 2016
The European Union’s (EU) Article 31 committee, which is made up EU member states, has voted to approve the EU-U.S. Privacy Shield. This Trans-Atlantic Privacy Shield data transfer procedure replaces the safe harbor data transfer arrangement that was struck down by the European Court of...
EU-U.S. Privacy Shield Adopted
, July 14, 2016
The European Commission has adopted the EU-U.S. Privacy Shield data transfer procedure, which replaces the safe harbor arrangement that was struck down by the European Court of Justice in October 2015. The Privacy Shield provides for additional protection of personal data, including dispute...
Electric Grid Cyberattacks
, July 01, 2016
Utility companies and grids are becoming increasingly vulnerable to cyber attacks. The Manhattan Institute recently released a report warning that although greater grid-Internet connectivity results in greener, smarter grids, these grids are also more likely to be the targets of hackers. The...
DHS Issues Final Information Sharing Guidelines
, June 20, 2016
The Department of Homeland Security has issued final guidance on the implementation of the Cybersecurity Information Sharing Act of 2015. The final guidance documents include: Guidance to Assist Non-Federal Entities to Share Cyber Threat Indicators and Defensive Measures with Federal Entities under...
NIST Releases Draft Guidance on Cybersecurity Event Recovery
, June 20, 2016
The National Institute of Standards and Technology (“NIST”) released draft guidance that outlines practices for responding to and recovering from cyberattacks. The goal of this publication, according to NIST, is to offer “tactical and strategic guidance regarding the planning,...
NAIC Task Force Hosts Insurance Data Security Model Law Meeting
, May 31, 2016
On May 24 and 25, the National Association of Insurance Commissioners (the “NAIC”) Cybersecurity (EX) Task Force (the “Task Force”) hosted a meeting in which state insurance commissioners and interested parties were invited to provide comments to and voice concerns about the...
Parts Manufacturer Delphi Joins Automaker Cybersecurity Group
, May 13, 2016
Delphi Automotive PLC, an automotive parts manufacturer, announced this week that it has joined the Automotive Information and Sharing Analysis Center, the automotive industry’s hub for addressing cyber-security threats to connected vehicles. The Center counts a majority of U.S. automakers,...
NIST Issues Streamline Guidance for Public Comment
, April 27, 2016
The National Institute of Standards and Technology (“NIST”) has issued a revised version of its guidance for sharing cyber-threat intelligence. The goal of this guidance is to help improve cybersecurity operations and risk management activities through information sharing practices....
Energy Bill Addressing Cyber Issues Passes Senate
, April 22, 2016
The Energy Modernization Act, a comprehensive energy bill that includes electric grid cyber protections, was passed by the Senate by an 85-12 vote. The bill includes language that gives the Department of Energy greater authority to intervene in cyber emergencies as well as language that protects...
Panama Papers Leak 11.5 Million Documents, Exposing Public Officials
, April 11, 2016
On Sunday, April 3, 11.5 million confidential documents exposing a widespread system of global tax evasion were made public as a result of a hack. The documents, which were records of the Panamanian corporate service provider and law firm Mossack Fonseca, were obtained by an anonymous source,...
Major Law Firms Hacked
, April 04, 2016
On March 29, 2016, it was reported that hackers infiltrated the systems of major U.S. law firms last summer, including Cravath, Swaine & Moore and Weil, Gotshal & Manges. Federal law enforcement is investigating the hacks, which likely sought confidential information of publicly-traded...
Iranians Hackers Targeted Control of New York Dam
, March 28, 2016
The seven Iranian hackers that were indicted for conducting distributed denial of service attacks on banks also were charged with illegally accessing the supervisory control and data acquisition, or “SCADA,” system at a dam in New York State. This is reportedly the first time a breach...