UAV, Legal issues, visas, doing business with federal government, export controls, corporate formation

1. Aider les entreprises du secteur
aérospatial ou UAV à gérer leurs
questions juridiques
Williams Mullen
1666 K St. N.W. Suite 1200
Washington, D.C. 20006
804 721 7851 (portable)
804.420.6482
Eliot Norman
enorman@williamsmullen.com
www.williamsmullen.
www.williamsmullen.com/practice/international-law
1

2. Le Défi Nord Américain
Comment exporter vos produits ou les
fabriquer ici?
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3. Le Top 6: Questions Juridiques:
1.
2.
3.
4.
5.
6.
Ca commence ici: les visas
Quelle structure pour quel projet?
Le Financement
« Export Controls »: Contrôles à l'exportation
Gestion des contrats & Joint Ventures
Conseils juridiques pour aider l’accélération
de votre croissance dans le marché nord
américain
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4. 4

5. South Carolina
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6. "Règles du jeu équitables??”
créer un « level
playing field »
Partir sur un pied
d ’égalité
avec vos
concurrents nordaméricains
11/16/13
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7. This is where is all starts
Quelle situation?
Quel visa?
11/16/13
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8. LA GRANDE
REFORME DE
L’IMMIGRATION
AMERICAINE: 2013
Eliot Norman
Williams Mullen
Washington, D.C.
enorman@williamsmullen.com
European American Chamber of Commerce
26 juin 2013
8

9. Le regime actuel: Use of L-1Bs, L-1As, H-1Bs and
E-2 for Intra-Company Transfers
X&Z Aerosupply SA
Toulouse , France
Managers, Executives
Software Developers
Electrical Engineers
Project Managers
and
Specialists
Composites
Engineers
X&Z Aerosupply, Ltd.
Bucharest, Romania
11/16/13
X&Z Aerosupply , Inc.
Mobile, Alabama USA
(AIRBUS VILLAGE)
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10. Case Illustration: Sous la Grande
Réforme: NAFTA TN ou E-2, B-1?
X&Z Aerosupply SA
Toulouse , France
Managers, Executives
Software Developers
Electrical Engineers
Project Managers
and
Specialists
Manufacturing
Managers &
Engineers
X&Z Composites
Manufacturing
Monterey, Mexico
11/16/13
X&Z Services
d’Ingénierie, SA
Montréal, Québec
Engineers
X&Z Aerosupply , Inc.
Mobile, Alabama USA
(AIRBUS VILLAGE)
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11. LA PYRAMIDE DES VISAS AMÉRICAINS
GREEN CARDS
L-1A/L-1B,
E1/E2 Investors/
Treaty Traders
TN, H-1B/O-1
B-1/ F-1/J-1/H-3, H-2B
90 Day
ESTA Visa
Waivers
B-1 Business
Visitors
(B/2) (tourists)
6693462
EB-1 Multinational Managers/Executives & EB-1
Extraordinary Ability and Outstanding Researchers;
EB2/3 PERM Labor Certifications for professionals, skilled
workers leading to Green Cards;
EB2 Green Cards for National Interest Waivers,
FAMILY SPONSORSHIP (marriage to U.S. Citizen or, Green
Card Holder; Diversity Lottery. EB-5: $500,000 Investors
EXECUTIVES, MANAGERS, Specialists and EssentialSkills Employees for U.S. Offices of International
Companies
PROFESSIONALS; Extraordinary Ability
Scholars & Scientists
TRAINEES & FOREIGN STUDENTS
Research Scholars & Specialists;
Temporary workers , VIE , Interns.
BUSINESS VISITORS:
Negotiate Contracts, Consult;
Trainees, Install Equipment
if Purchased Overseas; Visa Waiver
B-1 au lieu de H-1B: 6 month project
requiring professional services.
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12. What’s New: Investment &
STEM Green Cards
• STEM Graduate Green Cards
• EB-6 Entrepreneur Green Card 10% of
total: requires venture capital
investment of at least $100,000 etc.
• EB-5 $500,000 Investment Green Card
made permanent
– can be source of financing for U.S.
projects
– Investors sold minority interest, limited
partnership units
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13. Introduction
•
Pour rester compétitives, les sociétés françaises
doivent:
– assembler ou fabriquer dans la zone « dollar » (canadien
ou américain)
– comprendre le système juridique nord-américain et
travailler avec un avocat qui peut établir un « level playing
field » pour son client
– respecter la règlementation gouvernementale, surtout
Export Controls
– « américaniser » (localiser) leur entreprise et leurs
contrats
– Les visas!
– Qualifier pour le financement (public et prive)
– Tirer parti/profiter des subventions s’ils veulent exporter
depuis des Etats-Unis
– Tirer profit des traites internationaux (E-2, ALENA)
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14. Il faut avoir confiance: Voici le
petit déjeuner de vos avocats
nord américains
11/16/13
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15. Le Top 6: Questions Juridiques:
1. Ca commence ici: les visas
2. Quelle structure pour quel projet?
3. Droit social : pas aussi libéral que les
Français se l’imaginent?
4. « Export Controls »: Contrôles à l'exportation
5. Gestion des contrats
6. Conseils juridiques pour aider l’accélération
de votre croissance dans le marché nord
américain
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16. Conclusion : Votre réussite dépendra en
fin de compte …
•
du choix de la structure juridique pour votre
entreprise nord-américaine
•
des solutions de visa efficaces pour votre
personnel clé
•
d'une gestion proactive des relations de travail et
du choix des politiques appropriées en matière
d'emploi
•
de l’importance des règlements
gouvernementaux, surtout Export Controls
•
de l'attention portée à la gestion des contrats et
leur américanisation
•
de l’adoption des stratégies qui vous permettent
d’accélérer votre croissances aux Etats-Unis et
au Canada
•
de trouver des conseillers qui ont l’expérience
pour vous aider dans votre implantation nordaméricaine
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17. European Industries Flock to the
U.S.

19. The Clusters
• Silicon Valley
• The New Southeast Aerospace Cluster
• etc.

20. Access to Capital
• Private
• Public

21. Access to Capital
• R&D: SBIR STTR Grants
• Financial Incentives , State and Local
www.selectusa.org
• Special Government Programs: e.g.
Tobacco Commission
http://www.tic.virginia.gov/
–
Promoting Economic Development in Virginia’s Tobacco
Region
–
To date, the Commission has awarded 1,635 grants totaling
more than $967 million across the tobacco region of the
Commonwealth, and has provided $309 million in indemnification
payments to tobacco growers and quota holders

22. Access to Capital
•
•
EB-5 Regional Centers (Public/Private)
Special Visa Programs for Entrepreneurs
– X Visas
– EB-6
• Small Business Administration (SBA)
Loans
– 7(a) and 504 Programs 90% guarantees
– small business: in general , less than 500
employees
– up to $5 million

23. Access to Capital
•
Financial Assistance to Exports from
the USA
– SBA Export Financing Programs
• export development
• export working capital
• international trade loan program
– IC DISC Tax Incentives

24. SBA Export Financing Programs
•
Export Express
•
Export Working Capital Program
•
International Trade Loan Program
– 90% guarantee for amounts up to $350,000 (for up to 7 years
working capital, 10 years fixed assets and 25 years real
estate)
– 75% guarantee for amounts between $350,000 and $500,000
(same terms as above)
– Lender uses its own loan approval process and documents
– For financing of inventory, accounts receivable and all export
development activities
– Advance payment guarantees (stand-by letters of credit with
only 25% cash collateral)
–
–
–
–
–
90% guarantee for amounts up to $5,000,000
For revolving ABL or single transaction/purchase order financing
Advance payment guarantees (stand-by letters of credit with only 25% cash
collateral)
90% guarantee for amounts up to $5,000,000
For working capital term loans for financing and refinancing of fixed assets
used for exporting (loan tenures up to 10 years for plant & equipment and 25
years for real estate)

25. Questions et Coordonnées
Eliot Norman
enorman@williamsmullen.com
Williams Mullen
1666 K Street NW Suite 1200
Washington DC 20006
Direct Dial: 804.420.6482
En France (juin-juillet 2013)
001.804.564.1619 ou 06 47 00 33 55
www.williamsmullen.com
AU BAR:
17H30: ARCADIAN RESTAURANT & BAR
901 NEW YORK AVE NW
Tel: 202 408 8848
25

26. Teaming Agreements
• Teaming Agreement: Defined
• Major Elements and Protections
for French Company as Teaming Partner &
subcontractor: exclusivity, scope of work, data
exchange subject to NDA (accords de
confidentialite), pricing within prime contractor’s
target ranges, easy termination.
• Sample Teaming Agreement Checklist: PDF from
enorman@williamsmullen.com
• Substantial advantages over typical prime-sub
relationships
11/16/13
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27. Joint Venture
• Definition
• Use of LLC (Limited Liability Company)
• Key Elements and Issues:
–
–
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–
–
–
–
–
11/16/13
Protection of Technologies and Trade Secrets
Intellectual Property considerations
Clearly defined business objectives
Each Venture should bring something different to the table
that the other does not have
What percentage participation and management roles of
each joint venture
Contributions of capital and ownership rights to IP
Division of profits and Indemnification
Termination/liquidation of the JV and any buy-out
provisions
Confidentiality and non-compete that survives
Indemnification (indemnisation)
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28. Example: Joint Venture
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29. Joint Venture
development en commun des trains d’atterrissage
et des trappes.
Questions to Consider:
–
–
–
–
Division of profits;
Liability: one venturer binds the other
Resolution of disputes
What acts can be undertaken independent of and
outside the JV
– Who owns the improvements? Cross-licensing
– Termination and grounds for withdrawal
– Quelle structure pour quel projet? Considérations
fiscales
11/16/13
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30. Final Thoughts: Joint Venture
• Define well the scope of the joint
venture agreement and « americanize »
the contract
• Know how to end it before you sign it
• Plan for the divorce before you get
married
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31. SBIR/STTR Overview
Brought you by:
Federal Funding Assistance Program

32. Center for Innovative Technology
The Center for Innovative Technology (CIT)
helps to accelerate the next generation of
technology and technology companies in the
commonwealth of Virginia.

33. CIT Entrepreneur
• Federal Funding Assistance Program – CIT's Federal
Funding Assistance Program identifies and accelerates
opportunities for Virginia's small technology businesses to
obtain SBIR and STTR awards and other government contracts.
Novice and experienced grant recipients may benefit from this
program.
• GAP Fund – CIT’s GAP Fund closes the funding gap between
“friends and family” and early-stage equity investment for
Virginia-based technology companies. CIT’s GAP Fund
identifies and makes funds available to seed-stage technology
firms with a high potential for commercialization, rapid growth
and downstream private-equity financing.
www.cit.org

34. CIT’s Federal Funding Assistance
Program
•
•
•
•
•
•
•
Assists Virginia-based tech firms
SBIR strategy consultation and mentoring
Low cost proposal training and review courses
Discounts with expert proposal consultants
Discounts on proposal preparation software
Referral to law firm for free IP and patent consultation
VC/Angel Capital “Readiness” review and consideration
for CIT GAP Fund
• Phase “0” and “00” awards of $500-$2000 to qualified
applicants to help pay for proposal development
resources.
• SBIR Matching Grant Program
www.cit.org/programs/cit-entrepreneur

35. Federal Funding Assistance
Program for Virginia based
companies:
Robert Brooke
robert.brooke@cit.org
703-689-3080
www.cit.org

36. SBIR/STTR Background
• Use the entrepreneurial spirit of small
business to solve high risk, high pay off
federal agency technology problems
• Agencies provide a relatively small amount
of funding to vet ideas (phase I)
• If proved feasible, larger amount to build out
and further test may be applied for (Phase
II)

37. SBIR and STTR Basics
• Government funding of early stage, high risk, high
pay-off research that can be commercialized.
• $2.4+ Billion available each year. If budgets
increase, SBIR/STTR budgets increase.
• Agencies identify their need for new, high risk,
innovative technology that serves their mission.
• Specific topics are posted in solicitations 1-3 times
per year by each agency.
• Funding you could not typically get from other
external sources like VC, angels, friends and family.
• 4000+ projects funded annually

38. SBIR
Small Business Innovation Research:
– 2.7% of extramural R&D budget set-aside
for small business concerns to engage in
Federal R&D – with potential for
commercialization.
– Increasing to 3.2% over 6 years
– Required participation by Agencies with at
least $100M in extramural R&D budgets

39. STTR
Small Business Technology Transfer:
– 0.35% of extramural R&D budget is setaside to facilitate cooperative R&D
between small business concerns and US
Research Institutions – with potential for
commercialization.
– Requires minimum 30% participation by a
non-profit University or Federal Lab (up to
60% can be performed)
– Increasing to .45% over 6 years.

40. •
•
•
•
•
•
•
•
•
•
•
11 Participating SBIR/STTR
Agencies – Each Mission Very
DOD* ($1.4B+)
Different!
HHS/NIH* ($600M+)
NASA*
Energy*
NSF*
Agriculture
EPA
Commerce
Education
Transportation
Homeland Security
*Participate in SBIR & STTR

41. Topics
• Lots of opportunities -- Agencies list topics
from 1-3 times per year. No Unsolicited
proposals
• DOD has 3 SBIR cycles and 1 or 2 STTR
cycles – not all departments participate in all
solicitations.
• NIH has 3 SBIR/STTR solicitations.
• DOE has 2 solicitations.
• NSF has 2 SBIR and 1-2 STTR solicitations
per year.
• USDA, DOT, EPA, NASA, NIST, NOAA have 1
SBIR solicitation per year.

42. Phases and Funding Amounts
Phase I:
• A feasibility study
• Proposal length varies at each agency. 7-20
pages.
• $70—$150K
• Some agencies allow you to exceed award
request by 50%.
• Some have special solicitations that will allow
you to exceed.
• 6 months (SBIR) or 12 months (STTR)

43. Phases and Funding Amounts
Phase II:
• Full R&D, proof of concept/development of
prototype.
• A 2-Year Award
• $300K—$1M
• Most agencies allow you to submit phase II if you
had a Phase I (assuming you proved feasibility)

44. Phases and Funding Amounts
Phase III:
• Commercialization Stage.
• No SBIR funding.
• Use of non-SBIR Funds
• Other Federal funds
• Federal procurement
• Angel funding, VC, etc.)
• Agencies will require you to report back to them
on your commercialization success.

45. Eligibility
•
•
•
•
•
•
No more than 500 employees
Organized “for profit” firm
Independently owned and operated
51% owned by U.S citizens/resident aliens
Principal place of business is USA
Principal Investigator (PI) must be primarily (51%)
employed by the proposing firm.
• In SBIR, at least 66% of phase I and 50% of
Phase II must be accomplished by the
proposing/prime contract firm (joint ventures and
limited partnerships are permitted)
• All work must be performed in the US

46. 3 Main Evaluation
Areas
• Technical approach
• Team
• Commercialization plan/pathway to
market
• Be prepared to address all three areas!

47. Who Owns the
Intellectual Property?
• The Small Business owns the IP
• IP agreements required in STTR between
small business and research institution
• Full rights are retained by the company for
all technical data (AKA “SBIR Data
Rights”) and all patentable inventions.
• Rights do expire if the work is not
continued.
• Must take measures to protect your IP.

48. Program Benefits
•
•
•
•
•
•
•
Not a loan—no repayment
Seed money for high risk R&D
Recognition for your company
Experience as a prime contractor
Leveraging Tool for VC
Fosters Partnerships
IP rights maintained by the small business – data
rights extend to 4 years after your have finished the
contract/grant (5 yrs. For DoD)
• Sole-source marketing position with all Federal
Agencies

49. Upcoming SBIR/STTR
Solicitations
• DOD – Sept. 25, 2013
• DOT – Closes Sept. 23, 2013
• Dept of Energy SBIR/STTR – Oct. 15,
2013 (LOI due 9/3/13)
• NIH SBIR/STTR – Dec. 5, 2013
• NSF SBIR – December, 2013

50. Upcoming Training
• DOE & NASA SBIR/STTR Proposal Tips
– Sept. 30, McLean, VA (Includes NASA & DOE reps)
• NIH SBIR/STTR Proposal Prep
– Oct. 1, Charlottesville, VA
• NIH Budget Prep & Commercialization Planning -Oct. 2, Charlottesville, VA
• SBIR/STTR Proposal Prep (All Agency)
– Oct. 3, Blacksburg, VA
• Budget Prep & Commercialization Planning
– Oct. 3, Blacksburg, VA
www.cit.org/events

51. Federal Funding Assistance
Program for Virginia based
companies:
Robert Brooke
robert.brooke@cit.org
703-689-3080
www.cit.org

52. Questions et Coordonnées
Eliot Norman
enorman@williamsmullen.com
Williams Mullen
1666 K Street NW Suite 1200
Washington DC 20006
Direct Dial: 804.420.6482
En France (juin-juillet 2013)
001.804.564.1619 ou 06 47 00 33 55
www.williamsmullen.com
17H30: ARCADIAN RESTAURANT & BAR
901 NEW YORK AVE NW
Tel: 202 408 8848
52