2015 IPO update

Tips and trends for companies considering an IPO

Reece Walker, Derek Pocock, Ben Wood

2015 has been a good year for IPOs in Australia, with a number of sizeable listings, including the recent $2.3 billion listing of Link Group.  It has also seen a continuation in the trend of small and mid cap technology companies finding their place on the Australian Securities Exchange (ASX). 

The technology, media and telecommunications (TMT) industry has had a strong run of listings in 2015, including the $2.1 billion listing of accounting software developer MYOB Group earlier this year.

We have also experienced a steady stream of IPO activity, including advising on 4 IPOs in the TMT space this year (for OtherLevels, Superloop, Over the Wire, and Megaport).  With our involvement on a number of floats, we have also continued to see strong appetite from institutions as well as retail investors, validated through an increase in broker-firm offer rounds which are steadily becoming a recognised feature of many offers.

Welcome to the ideas boom

Top 10 initiatives from the Turnbull government’s $1b Innovation Statement

Alex Hutchens, Reece Walker

Prime Minister Malcolm Turnbull and Minister for Industry, Innovation and Science Christopher Pyne yesterday unveiled the Federal Government’s highly-anticipated Innovation Statement with the comment, “welcome to the ideas boom”.  

As the Turnbull government's first major policy document, it is expected to involve the investment of $1.1b over four years across a range of industries.  Mr Turnbull believes the plan will drive innovation in government, promote a culture of entrepreneurship and place innovation at the heart of everything we do in Australia.

Australian businesses, particularly start-up companies and those in the technology sector are set to benefit from the initiatives.  We have highlighted our top 10 opportunities below.

A not-so-safe harbour

Alex Hutchens, John Kettle, Paul McLachlan, William McCullough

It is impossible to avoid the frenzy that has been kicked up by the European Court of Justice’s (ECJ) decision of 6 October 2015 in Case C-362/14 Maximillian Schrems v Data Protection Commissioner.

What is/was the Safe Harbour?

Like Australia, the Member States of European Union (EU) are subject to strict data protection regulations. Generally speaking, personal data cannot be transferred out of a Member State unless the destination country has adequate protection for the data in question. Over a decade ago, the United States of America (US) and European Commission entered into the ‘Safe Harbour Agreement’ which meant that data could be shared where both companies comply with the Safe Habour Agreement.

All was well and good and many big businesses (including Amazon and Google) relied on the enforceability and protection of the Safe Harbour Agreement.

Apple facing damages bill for patent infringement

Alex Hutchens, John Kettle, Paul McLachlan, Eliza Humble

Apple Inc could be facing up to $US862 million in damages after a US Federal jury ruled on 13 October 2015 that it infringed a patent owned by the licensing arm of the University of Wisconsin.

High Court ruling on the patentability of human genes

Malcolm McBratney

Today’s landmark decision by the High Court in D'Arcy v Myriad Genetics Inc & Anor [2015] HCA 35 (7 October 2015) essentially prohibits patent protection for human genetic material and genetic sequences.  The decision reverses the 15 February 2013 Full Federal Court ruling, which found that United States company Myriad Genetics Inc’s (Myriad) patent on the isolated BRCA1 gene, associated mutations and utilisation of the sequence for diagnostic purposes was valid.

Protections for small businesses against unfair contract terms

Alex Hutchens, John Kettle, Malcolm McBratney, Paul McLachlan

Under the Australian Consumer Law, unfair terms in standard form contracts with consumers can be declared void, but small businesses (who are often subject to the same power imbalance when negotiating agreements with large suppliers) have to date had no protection under that regime.

On 18 August 2015, a Bill to extend protections against unfair contract terms to small businesses passed the House of Representatives. The Treasury Legislation Amendment (Small Business and Unfair Contract Terms) Bill 2015 (Cth) has already been referred to the Senate Economics Legislation Committee which is due to report on the legislation on 14 September 2015.

The globalisation of Australian brands and why you need to register your Chinese trade mark application now

Malcolm McBratney, Alex Hutchens, Kellie Jukkola, Alexia Marinos

With more and more Australian companies entering the lucrative Chinese marketplace, it’s important to register your trade mark in this jurisdiction as soon as possible or you may miss out and in the process dilute your future ability to promote your brand globally.

Unlike Australia, China has a ‘first-to-file’ approach to trade mark registration.  This means the first applicant for a trade mark will generally acquire rights in the mark, even though they may not be the first user of the brand in that country.