THE LAW 3rd Issue | Dec. 2016 Interview with lawyer of the year Nermeen ElTahoun Internet Law in Egypt and the Middle East By Salem Kamel Technology is rewiring law practice by Ahmed Hegazy Law in the digital era by Khaled El Khashab The Law | 1
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Family President & CEO Ziad Ali Legal research editors Nahla Fathy, Mariem Salah, Mai Farag, Mohamed Maher, Managing editor Shahd Hossam Hegazy A. Ahmed, Lamya Morgan Senior writer Bassel Khalil Art Director Mayar Morsy Junior writer Khaled Elkhashab Senior designer Belal El-Melih Legal research director Hoda Nafee DesignersHana Hassan, Hana Ragaii, Manal Executive director Ahmed Saad Abdelbaky, Maram Selim, Mariam Hazem, Marketing director Menna Mohy Marian Wail Events director Salma Yasser HR director Mohamed Darwish Board of Trustees Logistics director Ahmed Wahid Finance director Mostafa Hossni Prof. Gregg Brelsford Accountant manager Sara Galal Dr. Sue Ellen Legal manager Yumna Essam Judge Khaled El Zoghby Social media manager ALi El-Deeb Dr. Ahmed El Shaknkiry R&D specialists Afaf Shekoko & Esraa Mr. Fady Antoun Mrs. Layla badran Mohamed HR specialist Yasmina Ragab Ceo assistant Anna Leone Events director assistant Maryam Medhat The Law | 2
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Contractor design (traditional project) – FID- EPC/Turnkey project – FIDIC Silver Book IC Yellow Book The Silver Book is drafted for use on Engineer, Procure, There was one difficulty with the first FIDIC contracts and Construct (aka. EPC) projects. These projects re- which was that they were based on the detailed design quire the contractor to provide a completed facility to that was being provided by the employer/engineer and the employer that is ready to operate at a key turn. These also to the contractor. contracts therefore place the overall responsibility for the Therefore, it was best suitable for civil engineering and design and the project construction on the contractor. infrastructure projects (such as roads, bridges, dams, tun- The Silver Book is used where the certainty of the price nels, water and sewage facilities...etc.). As a result, it was and the completion date is crucial. The Silver Book allows not suitable for contracts where major items of plant were the employer to have greater certainty as for the project’s manufactured away from site. cost, as the contractor assumes greater time and greater This led to the first edition of the “Yellow Book” which cost risks than under the Yellow Book. was produced during the year 1963 by FIDIC for mechan- The Silver Book may also be used for privately financed ical and electrical works. This had an emphasis on testing Build, Operate, and Transfer (aka. BOT) projects. These and commissioning. Therefore, it was more suitable for are projects where the employer takes total responsibility the manufacture and installation of a plant. As for the sec- for the design, construction, maintenance and opera- ond edition, it was published in 1980. tion of a project and wishes to pass the responsibility in This form of contracts is drafted for use on projects where respect of construction to the contractor. the contractor carries out the majority of the design. There is no engineer under the Silver Book as his re- In other words, the contractor carries out the detailed sponsibilities are assumed by the employer. Similar design of the project so that it meets the outline or perfor- to the Yellow Book, the contractor is also subject to a mance specification prepared by the employer. fitness-for-purpose obligation in respect of the completed The Yellow Book is a lump sum price contract with pay- project. ments made according to the achieved milestones on the To sum everything up, FIDIC is founded to regulate the basis of certification by the engineer (like the Red Book, construction engineering rules & regulations. And these the engineer administers the contract). The contractor is regulations are divided into different books that apparent- also subject to a fitness-for-purpose obligation in respect ly discusses different filters or classifications. of the completed project. The Law | 44
I am honored to be among The Law magazine team that has shat� tered energy and power through the years. The Law Magazine is an institu- tion that not only reports legal topics but also stands for what society be- lieves in. We embrace the idea that the law serves a vital purpose in our world that goes beyond money, and that is valuable and justifiable where it can be a channel for growth. We believe these objectives don’t limit the journey for success. On the con- trary, we’ve convinced lawyers to reflect on them and to practise them to become tomorrow’s leaders. At all levels of society, who inspires innovation? Law, as any other field in the world, is influenced by certain individuals. Those whose actions and thoughts revolutionise law as we know it. As those people shine, they deserve recognition, and the title ‘lawyer of the year’ should directly go to them. The selection is never easy with many factors considered during the process. Annually, we do not only honour the lawyers but also the law firms who inspire and motivate us. Our vision is to build up a strong law society and developing the whole jus- tice system. One year after establishing The Law Magazine, we started ‘Law Talks’ to accelerate our progress and reach our goal. Our team expanded to reach not only all the country governorates but also stretched out to Tuni- sia and Turkey! What’s more, we aspire to launch The Law Magazine Gulf Countries in January 2017. Equally, we will be launching the first recruiting agency for the law field and a law school as well. On behalf of the team, I would like to express my gratitude to our board of trustees who dedicate time and effort to always guide and support us. And we certainly wouldn’t have been here today without our readers who believed in us. Thank you. Now we are ready to take the Law Society to a whole new level. Up to the summit. Ziad Ali CEO 3 | The Law
Table of Content Introduction article by Dr Mohamed Salah........................................................................................5 Law in the digital era - Machine made justice by Khaled Kashab...................................................7 Technology is rewiring law practice by Ahmed Hegazy....................................................................9 Internet law in Egypt and the Middle East by Salem Kamel..........................................................11 donotpay.co.uk: your new lawyer ? by Khaled Kashab...................................................................13 The law firm web presence is vital by Shahd H. Rashed..................................................................15 The concept of good faith in the marine insurance contract by Khaled El Zoughby...................17 Corporate lawyers influence on Egypt-steel industry by Ahmed El Shqanqiry............................19 Nermine El Tahoun Interview by Hoda Nafee.................................................................................21 DALA: The Distinguished Arab Legal Adviser - Part 1 by Mr. Amr el Sabahi.............................23 Importance of protecting trademark for business by Mohamed Kassem......................................25 Is the Security Council bound by International Law? by Fady Antoun........................................29 The aftermath of a floating Egyptian Pound by Samer Waheed.....................................................31 Mediation is an answer by Marwan Gadou.......................................................................................33 Developing legal education by Kareem Issa.....................................................................................35 Lawfluencers by Anna Leone.............................................................................................................37 Overview of the Oil Industry in Egypt by Ghada Captan................................................................39 FIDIC in construction law by Mohamed El-Leithy..........................................................................42 The Law | 4
Quick or low budget project – FIDIC Employer design (traditional project) – FIDIC Green Book Red Book (1987 4th Edition and/or 1999) This is FIDIC’s recommended contract form to use on en- During 1956 the first edition of the original form of Red gineering and building projects of relatively small capital Book was published. This was updated and amended over value or short-termed projects. FIDIC has provided guid- the four editions. The Red Book were revised by FID- ance that this would probably apply to contracts with a IC and the new editions were published in 1987. A key value of less than EGP 20,000,000 or a construction time feature of the 4th edition of the Red Book was the intro- of less than 6 months. However, the Green Book may duction of an express term which required the engineer also be suitable for simple or repetitive work. Although to act impartially when giving a decision or taking any typically in these types of arrangements the contractor is action which might affect the rights and the obligations to construct the works according to the employer’s design, of the parties, whereas the previous editions had assumed it does not matter whether the design is provided by the this implicitly. employer or by the contractor. There is no engineer and Then in 1999 FIDIC released a totally new set of standard payments are divided into monthly intervals. forms of contracts, including a brand new version of the the employer is responsible for nearly all the design. In Employer design (Multilateral Development Red Book, which superseded the original version of the Banks providing finance) – FIDIC Pink Book Red Book. The Red Book is the FIDIC recommended form of contract for building or engineering works where The first harmonised edition of the 1999 Conditions was fact, FIDIC claims that the Red Book is the most widely published during May 2005. It is drafted to be used on used international construction contract, where most of projects that are funded by certain Multilateral Develop- the work is designed by the employer. ment Banks (MDBs), where the Red Book would oth- A key feature of the Red Book is that payment is made erwise be applicable. Where the project is funded by an according to bills of quantities (i.e. a document in which MDB but the employer is not responsible for the design, materials, plant, and labor (and their costs) are itemized), the parties should not use the Pink Book, but rather use although payment can also be made on the basis of an and amend one of the other FIDIC forms of contracts. agreed lump sums for items of work. And the Red Book is administered by the engineer or a third party, rather than Before the publication of the Red Book, where the MDBs the contractor or the employer. The engineer will also be had originally adopted it for the projects they were fund- responsible for monitoring the construction work (but ing, they amended the FIDIC General Conditions. Ne- still keeping the employer fully informed so he may make gotiations between FIDIC and the MDBs resulted in the variations) and certifying the payments. Pink Book drafting which incorporated the amendments that were commonly inserted by the MDBs. 43 | The Law
FIDIC in construction law by Mohamed El-Leithy FIDIC stands for ‘Fédération Internationale des Ingénieurs - Conseils’, which is best translated as: The International Federation of Consulting Engineers. The “FIDIC” or- ganisation was founded in 1913 to include: France, Bel- gium and Switzerland. UK joined later in 1949. The first edition of the Conditions of Contract (International) for Works of Civil Engineering Construction was pub- lished during August 1957, prepared on behalf of FIDIC and the Fédération Internationale des Bâtiment et des Travaux Publics (FIBTP). FIDIC’s contracts commit- tee produces globaly used standard forms for civil en- gineering projects contracts. The purpose of those m forms is to define the contractual relationship among the parties and to divide the risk between the contrac- tor and the employer. FIDIC states that their contracts should allocate the risk fairly to the party which is better in bearing and controlling the risk. It is important to re- member that FIDIC forms represent a starting point for the preparation of a full construction contract. However, they are routinely amended to reflect the particular char- acteristics of each project and the requirements of all the parties. The forms of contracts are drafted for the usage in a wide range of project categories. The main forms are differentiated by their covers’ color. The choice of form depends on the type of the contemplated project The Law | 42
Appreciating the Law: Introductory Reflections by Prof. Dr. Mohamed Abdel Wahab Founding Partner and Head of International Arbitration Group Zulficar & Partners Law Firm Having been asked by the editors of the ‘Law Magazine’ Law has been an essential institution for all societies since to write a brief introduction to the ‘November 2016 Is- the dawn of history and throughout the evolutionary pro- sue, I first queried the purpose of the Magazine, and I was cess of all human societies. It represents the mirror image pleased to note the noble purpose and objectives under- of the society, and a product of the social processes that de- lying such promising initiative undertaken by propitious termine its common interests. Law reflects the socio-cul- young practitioners with passion about the law. tural and deep-rooted traditions of an organised society. As I understand, the Magazine aims at offering a medium However, its role does not stop at this stage, it is destined of access to legal information, promoting the legal practice to lead the society to better conditions and provide param- in Egypt and offering continuous education and training eters for its future evolution. in diverse areas of law. With these noble objectives and vi- It is thus believed that law has significant social functions sion in contributing to the rule of law and the development amongst which are: (a) imposition of the common interests of the legal community in Egypt, I could not but proudly of the society upon the behaviour of its members; (b) es- accept the kind invitation to contribute this introduction. tablishment of possible aims for the society in accordance In sincere aspiration that this introduction offers a succinct with its policies, values and purposes. Law is the reflection glimpse of hope to our younger colleagues and readers, I of the social past, the organisation of the social present and truly yearn that we all appreciate that the legal profession the conditioning of the social future. As part of the consti- is in dire need of a breed of superior ethical intellects who tution of the society, law not only depicts the present status can positively contribute to the rule of law. of the society with all its cultural patterns and values, but Against this background, I wondered what a useful, yet also provides a model of the future. Thus, it is arguably a brief, introductory overview for the November issue could leader and a follower at the same time. be. Having noted that the content of this November issue The importance of appreciating the role of law does not focuses on topical issues of profound interest, including: merely ensue from the need to provide certainty as well legal informatics, the Internet and cyberspace, technology, as stability in our global village, but also from the fact good faith in sector specific insurance contracts, the influ- that legal rules act as genetic code carriers of a society’s ence of corporate lawyers, mediation, reforming legal edu- deep-rooted cultural practices, fundamental beliefs, and cation in Egypt and the floatation of the Egyptian Pound, I prevalent policies. thought it may be best to share some introductory insights With the progressive impact of globalisation on cultural on law at large, especially that the Magazine itself bears and legal institutions and the intensification thereof, cul- such ‘sacred’ title. tural barriers have been breached through contemporary Whilst the status quo of the practice of law is somewhat flows of commodities, capital, people and values. This challenging and disconcerting, it is those privileged few was facilitated by accelerated technological development, that can see hope in times of despair, optimism in times which neutralised space and compressed time and created frustration, opportunity in times of misery, confidence in a novel global order that is in a constant state of flux. times of distress, and faith in times of despondency. They This new global order powered by the prevailing globalisa- are the ones who stand to make a difference; the ones who tion trends has induced supervening changes in the func- believe in what Martin Luther King’s stated: “the ultimate tions of States and markets, brought about a new realism measure of a person is not where he stands in moments of regarding the role of the rule of law in societies and chal- comfort and convenience, but where he stands at times of lenged the existing legal distinctiveness and classical per- challenge and controversy”. ceptions of established legal institutions. 5 | The Law
Accordingly, it is incumbent that the rising generation of Chair of Private International Law and Professor of Dispute Resolution, Faculty of Law legal professionals have adequate access to quality legal (Cairo University); Founding Partner and Head of International Arbitration, Zulficar & education and training, as well as sufficient knowledge of Partners Law Firm. the prevailing best practices in law, if we stand to compete Allot, P., “The Concept of International Law” (1999), 10(1) European Journal of Interna- globally and shape a better for our people and nation. tional Law p.31-32. The Mahatma Gandhi has rightfully stated “the future de- Ibid. p.32. pends on what we do in the present”, and so it is indubita- Whether law is essentially a leader or follower in the context of national socio-economic ble that we believe in upholding the power of the ‘rule of change is one of the central questions of legal philosophy that was tellingly illustrated by law’ that will guide our path amidst the cataclysmic events the conflicting approaches of eminent legal philosophers like Savigny and Bentham. A unfolding across the global. It will also bring about an eter- meaningful definition of the rule of law must be based on the realities of contemporary nal season of peace, light, hope, wisdom and productivity society, which has undergone drastic changes that survive both socialist and classical capi- that will enable us to make a quantum leap of progress. All talist socio-political and economic systems. See Friedmann, W., Law in a Changing Society this requires due appreciation of the law and knowledge [1959], (London, Stevens & Sons). of its power and potential, which, in turn, necessitates a Wallerstein, I., “The National and the Universal: Can There Be Such a Thing as World Cul- proper investment in the souls and minds of the younger ture?” in King, A.D., Culture, Globalisation and the World-System, Contemporary Con- generations of legal practitioners. ditions for the Representation of Identity [1997], (Minneapolis, University of Minnesota Press) p.94; Spybey, T., Globalization and World Society [1996], (Cambridge, Polity Press) p.5-6; Mackay, H., “The Globalization of Culture” in Held, D. (ed.), A Globalizing World? Culture, Economics, Politics [2000], (London, Routledge) p.49-54. Albert Einstein stated: “All that is valuable in human socie- ty depends upon the opportunity for development accord- ed to the individual”. Accordingly, the unfailing investment that we must nurture and foster is that which elevates the individual and boosts his/her skills to compete globally. Consequently, promising initiatives that offer proper ac- cess to legal information and professional development merit due support and praise. That said, it is indeed hoped that the rising generations of promising legal practitioners come to appreciate the beauty and role of law as an elixir of life, so that they can harness and best utilise it to the betterment of the legal profession in Egypt. In firm belief that a society grows great when people plant trees whose shade they know they shall never sit in, I am hopeful, and hope to remain hopeful, that legal practition- ers, across all fields, will appreciate that our measure is not by the harvest we reap, but by the seeds we plant. The Law | 6
Agreement, then it is approved by the Ministry of Petro- Assignment bonus leum; this is named the development phase. The area will Production bonus be covered by a development lease for a period of 20 years. Training bonus The Ministry of Petroleum could extend this period five more years if it is economically justified by the level of pro- All such bonuses should be paid to the national oil compa- duction. It should be noted that in no case can a lease ex- ny that is party to the Agreement. A royalty in cash or in ceed 35 years from the date of initial discovery kind is due at a rate of 10% of the total quantity produced At the end of the initial exploration period, there is a re- and saved from the area during the development phase. quirement to relinquish 25% of the area that has not been Further, income generated from the oil exploration and converted to a development lease and then an additional production activities is subject to a corporate tax at a rate 25% at the end of the first extension of the exploration pe- of 40.55% on all profits. riod. The remainder of the area not converted to a develop- ment lease has to be relinquished at the end of the second It is worth noting that, there are no specific regulations in exploration period extension. Voluntary relinquishment is Egypt requiring a certain standard of decommissioning possible provided that the work program obligations are or abandonment. However, the 1953 Egyptian petroleum met. law stipulates that the contractor must follow recognized Drilling obligations contained in the Agreement are re- standards for covering up wells and that the contractor is flected in drilling a number of exploratory wells, undertak- required to deliver the contract area to EGPC/EGAS in ing a number of 2D or 3D seismic surveys and carrying out “good condition” with all movable and fixed property nec- technical, geological, and geophysical studies. The mini- essary for continuing the operation of the area. However, mum financial amounts that the contractor must spend are unfortunately, there is no specific definition of “good con- stated in the Agreement and any excess spent in the initial dition” thus leading to various interpretations. period can be offset against the financial commitments of the successive exploration period. A Letter of Guarantee Finally, Egyptian laws govern the Agreement and disputes is required to cover each of the exploration periods and are settled by two ways. If the dispute involves the inter- should be issued by the National Bank of Egypt or any in- national oil company and the government, then Egyptian ternational bank working under the supervision and con- courts are competent. If the dispute involves the interna- .trol of the Central Bank of Egypt tional oil company and the national oil company, then The Agreement also includes articles such as the obliga- arbitration is the designated mechanism for settlement of tion on the contractor to train Egyptian personnel and that the dispute. The rules of the “Cairo Regional Center for preference should be given to local contractors and locally International Commercial Arbitration” apply and the seat manufactured material. of arbitration is Cairo. The Government take under the Agreement consists of a combination of bonuses, a royalty and a corporate income This article is an abstract from an article entitled “Egypt written by Loic tax. Bonuses consist of: Conan & Ghada Kaptan published in Upstream Law and Regulation: Global Guide, Globe Business Publishing Ltd, New Hibernia House, Winchester Walk, London SE1 9AG, United Kingdom, 2013. Signature bonus Development lease bonus Development lease extension bonus 41 | The Law
no. 1657 of 2015 respectively. It should be noted that, the main provisions governing petroleum are embedded in law no. 66 of 1953. Although still formally termed a “Con- cession Agreement” the granting instrument mostly in use in Egypt is technically a Production Sharing Agreement (aka. the Agreement). In this agreement, the international oil company agrees that in exchange for recovering the costs it incurs to explore and develop a specified area, together with a profit mar- gin, it will share the future production with the Egyptian General Petroleum Company (EGPC), the Egyptian Nat- ural Gas Holding Company (EGAS) or Ganoub El Wadi Holding Company (Ganope), one of which along with the government will be the other party to the Agreement. Once the parties have executed the Agreement it has to be ratified by the Egyptian parliament in order to be effective and have the force of Law. Acquisition of acreage from the government is done through bid rounds offered by EGPC, EGAS or Ganope, depending on the area at stake. a signing bonus which is often waived or traded for a The bidder is required to fulfill certain technical and fi- greater share of future profits. The oil company is entitled nancial requirements as it must provide evidence of simi- to cost recovery for current operating costs and capital lar previous projects and activities that took place in Egypt investment and expenses for materials consumed or used and abroad, in addition to its annual report that shows its in the year that they were acquired in. financial capabilities. The bidder could be an individual company or a group of companies. The bidder is obliged Oil industry in the Egyptian regime: to provide its corporate documents showing its establish- ment, such as the articles of incorporation and commer- Egypt’s oil and gas sector is mainly governed by law no. 66 cial register, and the identity of the shareholders and their of 1953 as amended by law no. 86 of 1956 and organizing nationalities. The operator company, though, will have to mining and quarries. While law no. 198 of 2014 for the establish a branch in Egypt. mineral wealth and their executive regulations as issued The provisions of the Agreement specify an initial explo- by ministerial decrees no. 69 of 1959, no. 758 of 1972, and ration period which is subject to two successive extensions depending on the geology of the particular area. The first initial period is usually for three to four years. Two suc- cessive extensions are usually for two or three years each. When a discovery is made which is commercially viable, based on the threshold quantity or when a well is capable of producing at an economic rate, the extent of the area capable of production is agreed upon by the international oil company and the national company party to the The Law | 40
Law in the digital era machine made justice by Khaled El Khashab Like any other aspect of life, law has entered the digital age. It is very common for the study of law to be digital- ized as the movement of education worldwide has made plenty of use of the age’s technologies. The trend is not only in studying; but also in practicing law through cy- berspace and machines, taking law with all its concepts and philosophical disputes into the digital era. And like many innovations, controversy arises when speaking of such evolution in the field. Digital reliance The shift towards digital aid was a natural reaction to evo- lution of technology, and with few simple tasks. Trials were no longer recorded through typing but rather recorded with a software that captures audio & video and organizes them. These systems are known as Digital Court Record- ing Systems (DCR). Although subject to comparison, DCR systems proved efficiency and they are entirely taking over in some countries like the US as DCR systems are thought to be accurate, complete, cost efficient, and easy to manage. But the use of digital aid has also gone step further, in eas- ing court appearances. For example: the CourtCall remote appearance platform the utility that helps lawyers appear remotely with no need to be present in court providing video, audio, & interpretation services thus, limiting the chances of court absence and it’s dire consequences. 7 | The Law
Cyborg lawyer but digital aid is what justice is all about in this era. Furthermore, the complete rely on machine is an over the An online legal library is common and very helpful plat- top achievement of course in a country where helpful con- form that helps those who practice law to obtain informa- sultancy and fast services are considered a premium, a fast tion related to different laws and areas of practice. Yet such generated and mostly accurate legal opinion is a gift that databases are just full of information waiting to be extract- would end the traditional legal services. A robot lawyer in ed to help create one’s legal opinion. But the true challenge the region that provides services with no charges fast, and is taking the ability to create a legal opinion and give it easy. It will be a short period before law firms and even the completely to artificial intelligence (aka. AI). Years ago the government start using robot lawyers nationwide. Putting concept was more than impossible but recently a ‘cyborg an end to solicitor’s advice. lawyer’ did not only exist but also proved effective. Since it started operating in march 2016 the cyborg law- Do we need digital aid in law? yer programmed by British teenager Joshua Browder pre- formed more than 160,000 challenges 9,000 were in New Renewal does not necessarily mean evolution. Digital York. The chat-bot lawyer asks the user few questions in lawyering is still on the table and decision makers won’t order to determine the liability for compensation. Al- easily decide to allow it or not. But does the efficiency and though limited in responses and the cases it handles as a helpfulness of digital lawyering means that we shall rely result of certain programmed laws and practices, the robot completely on it? lawyer provides worthy aid similar to what a solicitor of- From a conservative point of view, digital lawyering is not fers. Hands on, it is effective. the answer. The beauty of law lies within the human er- ror and the process of making a decision and defending Going east thoughts and beliefs. A machine might be accurate, but it cannot deliver the human emotions and the ability to per- In the midst of globalization, limitations are considered suade. Legal opinions are not only based on information from the past. Sooner or later most judicial systems will provided but on facts and processes of statements and evi- shift towards the fully digitalized justice system. But the dence gathering. No machine can ever replace a man. question that remains is how ready your judicial system is? Most judicial systems in the regions have had their Still, we cannot pretend that relying on machines is point- share of criticism for being sloppy, non-efficient and cor- less. Machines that record or perform tasks might do what rupt. Digital reliance might set a new course for systems man had failed to preform when given the task himself. It’s to prevent manipulation and loss of data. A remote plat- irrational to risk accurate information in the favor of per- form and an all-purpose recording system might be what sonal whims and dire mistakes. There shall be no decisive Egyptian courts need to prevent unfortunate events be- opinion whether to enter the era of machine made justice side an evidence recording system that prevents corrupt or not. Until then, justice must be served. evidence manipulation. This might be a broad statement The Law | 8
Overview of the oil industry in Egypt by Ghada Captan The petroleum industry has historically been an important pillar of the Egyptian economy. In general, it includes the global processes of exploration, extraction, refining, transporting by oil tankers and pipelines, and marketing the petroleum products. Oil industry main components The industry is usually divided into three major compo- nents, namely: Upstream, Midstream and Downstream Upstream sector is the exploration and production sector (E&P) sector. Midstream sector involves the transportation (by pipe- line, rail, barge, oil tanker or truck), storage, and wholesale marketing of crude or refined products. Pipelines and oth- er transport systems are used to move crude oil from pro- duction sites to refineries and deliver the various refined products to downstream customers. Midstream operations may comprise some elements of the upstream and downstream sectors, for example, the mid- stream sector may include natural gas processing plants that purify the raw natural gas as well as removing and producing elemental sulfur and natural gas liquids (NGL) as finished end products. Downstream sector is the refining of petroleum crude oil and the processing and purifying of raw natural A Concession Agreement often grants an oil company gas, as well as, the marketing and distribution of products exclusive right to explore, develop, sell, and export the derived from crude oil and natural gas. extracted oil or minerals from a specified area for a fixed period of time. Oil industry agreements Joint Venture is a partnership between a national oil company (NOC) and an international oil company Governments mainly have three types of agreements to (IOC) where risks and costs are shared between both. choose from and define their contractual framework: A Production Sharing Agreement recognizes that the A Concession or License Agreement ownership of the natural resources remains with the State A Joint Venture (JV) but at the same time permits foreign corporations to A Production Sharing Agreement (PSA). manage and operate the development of the oil field. The Each type of agreement has its pros and cons. oil company cwarries most financial risks of exploration and development and the host government often earns 39 | The Law
As for the Middle East Ashraf El-Motei Ahmed El-Shakankiry Academy for Science and influencers who inspired Ahmed El-Shakankiry is Technology (AAST). He many people. Their desire Managing partner at Mo- another great influencer. was a public prosecutor to achieve what they have tei & Associates Attorneys He holds qualifications before being a judge. He got always wanted influences at Law. He has specialized from Cairo University, La his Masters of Law Degree a lot of students and fresh in civil and commer cial Sorbonne, and Montpel- from Nottingham Trent starters. litigation and has specif- lier. He has experienced University and Bachelor›s ic focus on international with around 9 years of ac- degree from Alexandria Amal Clooney arbitration. His member- ademic international com- University. ships include: LCIA (Lon- mercial law and interna- A Lebanese-British lawyer, don Court of International tional arbitration. He has These people were activist and author. She has Arbitration), IBA (Inter- experienced working in the normal ones. Desire specialized in internation- national Bar Arbitration), Middle East and in Europe and work hard! And al law and human rights. DIAC (Dubai International as a law professor and as a this helped them to She has also represented Arbitration Center), ICC lawyer. El-Shakankiry also become what they are the former prime minister (International Chamber of has Masters Degrees in In- right now. Influencers of Ukraine and the Cana- Commerce) and MCIArb ternational and European & inspiration for the dian-Egyptian journalist, (Chartered Institute of Ar- business law and a PhD in new generation. Their Mohamed Fahmy. Amal bitrators). He began as a the Electronic Arbitration. saying is that: the new worked as a part of Crimi- public prosecutor in Egypt generation has more nal Defense and the investi- before moving to private Khaled El-Zoghby potentials than any gation groups in New York practice in law firms. Khaled El-Zoghby is a other past generation. at Sullivan & Cromwell. In judge in the Ministry of Imagine what the new 2004, she worked at the in- Jouslin Khairallah Justice and also a part-time ones can achieve? ternational court of Justice. lecturer at the Arab She studied at St. Hugh’s The founder and the man- The Law | 38 college, Oxford where she aging director of Khairal- received an Exhibition and lah Advocates and Legal the Shrigley Award. Consultants in Dubai. Her areas of practice are labor law, criminal law, maritime law, corporate affairs, and domestic and internation- al arbitration. She is also an active member of the: International Chamber of Commerce, Dubai Interna- tional Arbitration Center, Dubai Business Women Council, Amnesty Inter- national and Emirates Hu- man Rights Association.
Technology is rewiring law practice by Ahmed Hegazy Born and raised in a family of lawyers, I have spent most the practice of law, not only in the easy preservation of of my life around lawyers and become a lawyer myself. documents, but also in the saving of time that would have All lawyers deal with the same commodity which is time. been spent handwriting those documents. Technology helps lawyers to be more productive and save The Personal Computers: this technology, particularly its more time. Also, it improves the practice of law, helping word processing features, allowed for the ability to write a lawyers deliver their services faster and more effectively. document or a court submission easier than tearing out a Moreover, it helped all of us to move to the goal of access- piece of paper and handwrite it from scratch. The ease of ing justice for all. PC use led to greater productivity in the legal practice. The The legal profession in Egypt behind technology took us PC also allowed lawyers to store a number of different files, so many years before appreciating the ease of e-mail com- folders, documents, and images, all on a single machine. munication, but the last 26 years have witnessed an expo- Fax Machines: the ability to instantaneously communicate nential growth in technology giving the legal profession to a team of people in another location had an enormous time to catch up and embrace developments. This boom in impact on thinking - it speeds all the legal processes up technology designed for improving the efficiencies within tremendously. Previously, response time for a letter would a legal practice have made legal processes easier and quick- be days or weeks, however the instantaneous communica- er to change the traditional legal practices. Technology is tion allowed for by the fax machine meant that letters and a double sword as we have great new tools to do our jobs documents could be responded to on the same day. better but at the same time our work and our lives have Email communication: this form of communication is changed with each new tool invented. a far more convenient and timely extension of what the Let me share with you the legal technology milestones: fax machine offers. With emails comes instantaneous First typewriter 1867 communication, but also the ability to keep an electronic Telephone Invented 1876 record of all the communications. And with the PC & the First PC 1977 printer, there is also the ability to print off the records to Wide Web 1992 be kept. Mobil phone use spreads 1993 Cloud computing 2010 The internet: a lawyer’s main tool for success is their access to research, legislation, and case law. The internet made Technology enhancements in the traditional that tool not only available and accessible to each and every law field: lawyer, but with ease of access at their fingertips. This saw the rise of many legal research websites that targeted the Printers & photo copier: those machines gave legal practic- provision of this information; websites that allowed law- es the ability to have everything duplicated and stored on yers to find case law, journal articles, and encyclopedias. record. Lawyers for the first time, were given the comfort This not only encouraged collaboration between lawyers, of knowing that they could make copies of all their files but also allowed for equality amongst legal professionals as for later retrieval. This was an incredibly important shift in they all were suddenly given access to the same wealth of information and resources. Today, technology offers so much more than just ease of communication and the ability to duplicate and store doc- uments efficiently. There is an emerging trend for tech- 9 | The Law
nology to address issues in how law firms run and manage The legal profession, like all industries, is being disrupt- their practices, and attempt to fix them. Software programs ed by technological developments that are changing the or mobile apps are being developed to add security to a nature of its operations. While still lagging behind other person’s legal practices, assist with billing, management, or industries in the adaptation of new technologies, law firms document management of the practice, or simply to be a are increasingly engaging with software and apps designed useful tool in the preparation of court litigation. to enhance productivity and efficiency. The law firms em- Electronic Courts: The electronic filing of applications, bracing these changes will gain a competitive edge towards forms, or court documents has already well settled into those lagging behind, as they begin to adapt to the world the legal practice. This form of electronic filing has again around them and the technological advantage demanded. allowed increased productivity, giving legal professionals Technology has changed the way businesses are conduct- the ability to file relevant forms close to their due dates. ed; it has disrupted the entertainment industry, changed The Courts are slowly catching up, with many courtrooms the nature of advertising, altered the definition of pub- installing computers and software programs that allow lishing, and giving consumers endless possibilities in their complex court hearings with volumes of documents to be lives. The legal profession, while seemingly untouched by conducted and heard electronically. technology’s impact, is soon to undergo its own changes Social Media: it has changed the way lawyers market their as more and more law firms make use of the possibilities firms or practices. The rise of the LinkedIn or Facebook available. So what will the law firm of the future be like? legal practice profile, the lawyer blog, the YouTube videos, How is the legal industry set to change in the next years? or even the lawyer Twitter pages, has changed the nature of Vanishing legal libraries: online libraries have increased the legal practices from one that was formal and distinct, efficiency with the ability of electronically search vast to one that is publically informative and accessible. amount of resources. In-house document management: many legal practices Teleworking: offered smart devices & cloud computing, have taken to electronic document management systems you have the opportunity to work anywhere and anytime. (electronic discovery or due diligence systems, electronic Super specialization: reach out to a particular niche mar- file records and sharing, reviewing, and amending of doc- ket and gain a competitive edge. Law firms of the future uments). Larger law firms can now invest in new technol- will need to have a specified target market to which they ogies and take exciting directions in this area of their prac- will be completely devoted and specialized. tice. Midsize law firms are also embracing this current age Law firms all over the world are being confronted by the of technology in their document management practices. changes offered with technological developments. While Cloud-based technology: this technology’s full potential this may change the nature of their practices, the advance- is yet to be realized, and it’s likely that many legal practices ments in technology are encouraging innovation and effi- will adopt the wait-and-see approach to see how it pans out ciency. Lawyers must embrace these changes so as to main- for other professionals and businesses. Cloud technology tain a competitive advantage. Minor activities that were creates endless possibilities for data sharing, storing, and once time consuming and slowed down the legal process management. Many iPad legal apps utilize cloud-based are now made much faster and easier, allowing lawyers to software to securely store documents, which can then be spend their time on more important tasks. accessed anywhere and anytime. Is your firm ready? The Law | 10
L What is Influence? Justice of the Supreme 1998 Niki Black a Court of the U.S serving w Influence is known as since August 2009. She be- Niki Black is a great ex- f the power of having came a U.S. District Court ample of useful bloggers. l an important effect Judge in 1992 and was el- Niki is an expert in Le- u on someone or some- evated to the U.S. Second gal Technology. She helps e thing. Well, there Circuit Court of Appeals in educating lawyers and n are many influencers in before President Barack teaching them how to use c who affected the legal Obama nominated her to Legal Technology to make e and political fields in become the first Latina Su- their job better, as she runs r different and inspir- preme Court Justice in his- MyCase blog. Niki also in- s ing ways that they tory. terviews other experts and may actually inspire writes eBooks. by Anna Leone you. Some people in- Anthony Kennedy spired law and politics Kevin O’Keefe 37 | The Law through history and The Associate Justice of the till our current time U.S Supreme Court. For the Kevin O’Keefe is anoth- in different ways; de- Maryland Senator, Antho- er useful blogger. His blog cisions, revolutions, ny Kennedy. He was raised contains real and applica- defending rights or among an Irish Catholic ble posts. He blogs on Le- even blogs. Let me family in Sacramento, Cal- gal Marketing. Kevin also give you a brief note ifornia. Kennedy is an in- shares marketing resources introducing some of fluencer in the field as he as TED Talks. Instead of those influencers. released a restriction on just tweeting headlines, he minors’ abortion and their often pulls out valuable tips Sonia Sotomayor parents must be notified and summarizes parts that about the procedure their are applicable. She was born in The Bronx, daughters will go through. New York city raised by Anthony believed in the Puerto Rican-born parents. concept of Liberty and that Sotomayor is an Associate belief included homosex- uals and the constitutional protection of their rights. I will never miss the in- fluencing bloggers. A lot of people talk and tweet about “Legal Technolo- gy” but not all of them are knowledgeable. Some of those bloggers are influ- encers, such as:
infrastructure is not qualified? I think the answer is a yes year will be focused on languages, general and basic legal as the educational routine system controls our legal educa- English and French. tion and makes a lot of boundaries between developing the The second year shall be focused on legal English and law education system additionally there are no infrastructure subjects, those subjects shall be civil, criminal, procedures for any kind of creativity to allow who studied abroad or and in the first semester, the second semester will focus on postgraduates to present their theories to develop our ed- introduction on Anglo American legal system and teach- ucational system. ing legal English and French language by professionals The legal education system in Egypt is focusing on the tra- those courses shall be teaches in higher levels during the ditional subjects like civil, criminal commercial and pro- last two years. cedures and omits another law fields like media and social After this phase, the student shall start training during media, intellectual property, human rights and contracts, summer, the main core of the last two years is practical this educational system also omits the main key of success training such as, moot courts, internship in internation- which is practice. al law firms, international legal English courses, all this To succeed this new education system here shall be an practical training, additionally, the student shall always be integration between the practical training and academic aware and updated with the modern way of law education education, but we cannot practice this combination dur- around the world by granting him an access to the best law ing the current system, the law education will not be de- schools during his study period during those two years. veloped unless the quality of education had improve and Finally, the main idea of this new way of education is to this improvement will not be realized unless we follow a grant the best education for law graduates and their law number of points: certificates shall be accredited from international faculties Increasing the number of academic years of bachelor to be of law in UK and USA and to qualify our graduates to be five years instead of four, in the first year the student will creative as judges, lawyers and academics to improve the be going to study a simple introduction of law just to help standard of law and its quality in the future. the student to have a general idea and a brief about what he is going to study in the next four years, the rest of the first The Law | 36
Internet Law in Egypt and the Middle East By Salem Kamel One of the most astonishing facts, yet not very surprising in Egypt, that you won’t find a law regulating the usage of internet or social media, especially after everyone knew how strong its effect on the public after the Arab Spring. Although we have laws that regulates internet banking, but there is nothing that regulates the Cyber Crimes. Even though the World Wide Web introduced to the world in the 60s and released to public in the 80s, but many crimes has originated and lately many financial transactions, personal information and private information become accessible on the internet, which make it very dangerous! And make it vulnerable to Ponzi Schemes, Hacking and fraudulent actions and most important it is not to be regulated by the law in Egypt. The original idea of the internet came from a series of memos written by J.C.R Licklider of MIT in August 1962 discussing his Galactic network concept. On January 1, 1983, Advanced Research Project Agency Net (aka. ARPANET) adopted TCP/IP and researchers resembled the network of networks that became the modern internet. Later, computer scientist, Tim Berners-Lee invented the World Wide Web for the first time. One of the first countries to legislate laws that regulate Cyber Crimes was Sweden in 1973, In 1986 the Congress of the United States issued realized how important and dangerous the losses caused by Cyber Crimes (please check the statistics A) , therefore they issued legislation no. 1213 identifying all Cyber Crimes and ordering each state to legislate their own laws to fight it. Afterward in 1985 the United Kingdom amended some of its criminal laws to include Cyber Crimes and usage of internet and stated the penalty of each crime. Whilst in the Middle East most countries have not thought of the dangers and the threats of internet usage until in December 2010 members of the Arab League signed a Regional treaty to fight Cyber Crimes. Whereas in November 13, 2014 the Egyptian President expressed his approval that Egypt is a member of the treaty but didn’t ratify it yet. Several critics appeared to show concern regarding the language used in the treaty, as it include many vague terms which allow harsh punishments for different actions on the internet. 11 | The Law
Average annual costs by cyber crime in the United States as of August 2015,by industry sector (in million U.S. dollars) Hospitality Financial Services mer products 28.33 Energy & utilities Consu 5.36 27.62 8.23 Statistics (A) Public sector 21.73 Defense & aerospace 5.18 Average annual costs by cyber 11.02 19.37 23.18 crime in the United States as 6.55 21.03 of August 2015 by industry 9.78 Technology sector (in million US dollars) 6.68 16.45 Healthcare 10.37 9.37 6.94 7.41 14.9 Communications 8.68 12.08 10.02 7.79 12.93 Industrial 11.96 5.52 9.6 11.41 ices Serv h Education & Researc Transportation Retail Fy 2015 Six-year average Whereas, United Arab Emirates passed a law in 2006 On the other hand, in Qatar, a national law was issued in 15th of September, 2014 to regulate the use of internet, regulating Cyber Crimes in different aspect whether it while this law is considered the most condensed, inclusive protect the privacy of users, financial crimes, or terrorist and comprehensive one in the middle east so far. Most groups establishment. Thus the law is short compromising of the civil society concerns are related to human rights of only 30 articles, but it’s very concise and to the point, violations, vague terminologies, and lose loopholes that covering the most important field and penalizing each could be used against opposition or any opposing opinions crime with fines that ranges from 10,000 AED to 100,000 on the internet. The ministry of interior is known with AED and imprisonment. some traits that is widely famous across the country with its Furthermore the Saudi Arabian law regulating and fighting way of dealing with political opinions or sarcasm on social Cyber Crimes is even shorter compromising of only 16 media, which made the civil society impose opinions and article, and vague in many different points such as in Article intervene with the ministry of justice proposal of such law. 7 stating that: “any person violate or threaten the national or international security or the national economical of the country shall be punished by imprisonment not more than 10 years and a fine of not more than five million Saudi Rial”. In September, 2013 Saudi Arabia signed and ratified a new regional treaty between the Gulf Cooperation council which contains 39 article more aggressive and restrictive towards terrorist groups on social media and other internet platforms that could be used in terrorist groups. The Law | 12
Developing legal education by Kareem Issa The Faculty of Law in Egypt is one of the oldest facul- Comparing to the French Section in Cairo and Ain Shams ties founded in Africa and the Middle East. Faculty of Law Universities, we will find that this experiment is far away – Cairo University was the leader it; established on 1868 from routine because it followed international qualifica- during the role Khedive Ismail. From this date till present a tions even in accepting students or the educational sys- number of 12 faculties had been established whole around tem the Section is under the administration of l’Université Egypt, those faculties are graduating thousands graduates Paris 1 Panthéon Sorbonne and the Certificate is admitted every year. from France per a protocol signed since 1996 according to Does the market demand this number? Are they qualified a protocol between the two universities. to match the market needs? The answer to those two ques- To solve the problem, there shall be a number of steps to tions is “No”. There are a number of reasons we will discuss decrease the number of the applicants by the following in this article and find a solution for them. methods: First, the high school degree of acceptance in faculty of law The high school degree of acceptance shall not be less than is very low (50% or little bit more). The numbers of accept- 95% and there shall be an IELTS or TOEFL test before ed students are very huge comparing to the market needs joining the faculty. The number of the seats shall not be and the capacity of the faculties itself. Also, the subjects more than 200 for each educational year (this number will and the teaching technique are not matching the marked be available only in Cairo and Ain Shams Universities and needs too. In addition, a number of important subjects had decreases to 120 in the other governorates). been cancelled during the 70’s, example but not limited, There shall be a similar protocol, as the signed between the media, sports, military laws and oil & gas laws. Ministry of High Education and a highly ranked UK or Additionally, all the faculties of law do not educate or even USA law faculties to achieve a high standard of education. do training for how to draft legislation or ask about the The international companies and law firms whom invest� opinion of the students, especially who are in the last year, ed Egypt shall participate in the faculty educational im- in recent or old legislation. provement especially in training and the market needs. To be fair, there were some ambitious trials to develop legal During the last ten years, a new era had been started by education, in Faculty of Law - Cairo University the Eng- the huge revolution in legal education system around the lish Section opened on the educational year 1995/1996 fol- world because of the development of telecommunications, lowed by Alexandria University on 1999/2000 and recently social media and intellectual property rights law, this evo- in Ain Shams and Mansoura, too. lution in the mentioned law fields creates this legal educa- The main idea was to create a new generation of judges tion system which depends on researches, innovation and and lawyers who have a high standard of education and creativity which is connected to the practical reality. know legal English and deal with international entities, but In Egypt, we still under captivation of the old legal edu- there were a lot of missing points in this plan as there were cational system which did not developed since 80’s, the no English or American professors to educate the students question is why did the lawyers, judges, academics who legal English and Anglo-American legal system or foreign got an academic degree from UK and USA during the last syllabus which can be added to this section. For more than 10 years did not present any vision regarding this issue, is 15 years the English section had been stuck in the routine the routine system is more powerful than their vision? Or of Arabic Section especially in the method of education. they did not try to change because the educational 35 | The Law
disputed matter to mediation as a form of an A.D.R. Submission to Mediation m In the absence of a mediation clause in the contract, the disputed parties may submit their disputed issue, to me- This agreement could be manifested in several ways: diation. In accordance, they write or fill out a submission m agreement form. I.e. different forms could be found on www.adr.org Contractual initiation to Mediation Confidentiality A contract is a written or spoken agreement between par- The diligent, necessary and accurate confidentiality is pro- ties, governing the reached and agreed rights, obligations, vided for such procedure. Since the commencement, dur- duties, terms and conditions. Disputes rise for numerous ing and till the conclusion of the procedure, as a mean to causes, as an outcome of manifesting the rights, obliga- settle a certain dispute, all parties are refrained from uti- tions and duties into existence. The methodology of dis- lizing or using, even a marginalized tool raised within the pute resolution, is stated in the contract. Not subsequently, process; prior, throughout and following the settle ment one form of resolution is mentioned, however, different of this dispute, by other different forms. The parties must .possible forms are stipulated, and arranged by stages understand and agree that all information and documents Mediation, as previously noted, is one of these forms. It created for the purposes of the Mediation and all matters could be a preliminary stage to resolve the dispute or an discussed or information communicated during the medi- intermediate stage following negotiations and prior to ar- ation, are confidential. To agree not to use any information bitration or litigation. or documents provided for any purpose except the Media- tion, is substantial. m m Two - Examples of Mediation clauses stipulated by the International Chamber of Commerce (I.C.C.) m The parties may at any time, without prejudice to any As in the normal course of events, every general rule has an exception or more. In this case, I shall furnish, however not restricted to, two different exceptions to the confiden- tiality privilege. Firstly, any professional misconduct by attorneys shall be reported. Secondly, if anything happens either inside the mediation room or outside, that media- tors believe that it could cause imminent danger or possi- ble harm to any of the parties, it shall be reported. Accord- ingly, distinct confidentiality agreements are signed and concluded to begin with the process. m Conclusion other proceedings, seek to settle any dispute arising out of Several types of mediation exist however traditional me- or in connection with the present contract in accordance diation is the commonly used form. Per the American Ar- with the ICC Mediation Rules. By including this clause, it bitration Association, 85 % of all mediation resolve into a insures; in case of any conflict occurs, the right of con- settlement. It helps not to jeopardize businesses. It could flicted parties to seek mediation, per the I.C.C. mediation be used to resolve conflict of youth, to keep conflict from rules, always. It is a sort of a reminder, to the contractual escalating and help them after wards in their professional parties to pursue mediation, if any of its conditions stipu- career. lated in the clause is met. m m Up to 85 % of communication that passes between people is In the event of any dispute arising out of or in connection non-verbal... with the present contract, the parties agree in the first in- stance to discuss and consider referring the dispute to the m ICC Mediation Rules. The Parties have the answer. m m ~Bob Berlin m This clause, goes a step further than the previously men- tioned. It stipulates, in case of, disputes arising between the contractual parties, they must primarily, subject the dis- puted matter, to mediation. m The Law | 34
donotpay.co.uk your new lawyer ? m by Khaled ElKashab The british citizens have been using a new online service titles “the world’s first robot lawyer” lately. The service gained popu- larity quickly as it became a major source for legal opin- ions. The process of using this service is easy, the user may sign up for a free account and start providing the ser- vice with information on the issue of interest. The bot offers the user few question that if answered will determinate the eligi- bility for compensation. Though limited to few ar- eas(flight compensation, appeal for parking tickets, & claiming ppi), the Bot has proven efficient as it al- legedly helped 30,000 peo- ple appeal for their parking tickets in uk. According to the devel- oper, Joshua Browder , it took 3 months to program the Bot. it is expected that with further development this Bot should be more ef- ficient and more realistic. 13 | The Law
Mediation is an answer By Marwan Gadou Discourage litigation, persuade your neighbors to compro- other experts to different professions and business fields, knowingly, they carry legal obligations and duties. They mise whenever you can. Point out to them how the nominal are third – party neutrals and discussion navigators, yield winner is often a loser in fees, expenses and cost of time the floor to disputed parties and provide them the oppor- ~Abraham Lincoln tunity to self-determine the result, neither judges nor arbi- trators are in the pitch. Both sides of the fence are played. m m The title surfaces two perspectives, either to question our- selves, Mediation is an answer for what? Or to proceed with the statement. Either, or, a similar conclusion is reached, hence, it is, a Dispute. m Mediation, represents one of several alternative dispute resolution methods. One could say, it is an impartial dis- cussion. It is used on daily basis, in schools, universities, work places, within families and, finally, over legal disputes between companies or individuals. You can find yourself a party to a mediation process, without knowing that it is in play. It is a fast way to settle disputes, without bleeding into costly procedures, as arbitration and litigation. Arbitration is less formal than litigation, mediation is even less formal than arbitration. m A dispute in simple preliminary wordings, arises when Suitable timing for Mediation someone needs another and that need is not being met. There is no suitable timing to commence a Mediation pro- If the need is met then we have resolution, if not, then we cess, unless agreed on the contrary. It can take place once manage the dispute through different sorts of A.D.R. a dispute arises. Upon the initiation of a conflict, media- tion can be put into process, as an adjunct procedure, to m pending arbitration or litigation. However, Mediation can be put into play and can be used to resolve disputes, at the When disputes occur in general, the first thing we think inception of arbitration or litigation, during all types of of, we must win to meet all our needs. However, in media- proceedings, whether evidentiary hearings; in arbitration tion it is not a win – lose case. Flexibility is one of its main or court sessions; in litigation. It can start prior to the is- features, its parties own the process as well as the outcome, suance of an arbitral award or a judicial judgment. Lastly, they can reach a conclusion that judges and arbitrators Mediation can be used following such issuance, with the may not have the sufficient flexibility to reach. The solution purposes of discussing lengthy appeal procedures or the is always beneficial to the all. Mediation is a non-binding interpretation of specific terms or, finally, the methodolo- procedure; you can always walk away with an agreement or gy of application of specific rulings. not. It converts time, cost and stress from being an oppos- ing party to beneficial factors. m m )Individuals conducting Mediation (Mediators The process is conducted by one or more than one per- Agreement to Mediation son, they are called Mediators. Normally, they are careful- It is an agreed upon procedure and a voluntary process by ly selected attorneys, retired judges however, a mediator is which, the disputed parties must agree to subject their not only restricted to attorneys to pursue, it can extend to 33 | The Law
We do have a huge potential, as an economy, to increase of wages and prices. Therefore, this reform, If not backed our exports. Yet for an economy who has been import-ori- up by proper plans of redistribution, each segment in the ented for years, potential exporters need to be backed up society will move a step backward, and we will end up with by proper incentives, as well as, regulations that facilitate more poor people in the country. In addition, the execu- their mission. tive authority should accurately monitor the enforcement Drastic times call for drastic measures, the Central Bank of the Labor Law and make sure all employees’ wages are of Egypt raised key interest rates by 300 basis points to rising with rates high enough to cover inflation. The gov- prevent hyperinflation. Because most Egyptians earn rel- ernment should also provide more support to labor unions atively low income the luxury of saving a good proportion to secure the rights of workers. of income is rarely achieved among the clear majority. A There is no doubt that the floating of the Egyptian pound low marginal propensity to save makes high interest rates has been immensely needed if our economy is to advance. an insufficient solution to combat high inflation. On top, Nonetheless, the government must take into account var- only a small segment of the society understands how in- ious consequences of such decision so as to counter pos- vestment and banking works, and therefore deposit their sible social and economic hazards and prevent adding an savings at banks, the other minority seem to prefer other insult to injury. means of savings and investments such as real estate in- vestment which seems more profitable than earning nega- tive real interest rates. Moreover, being humans with bounded rationalities, Egyptians tend to increase consumption in periods of high inflation due to lack of confidence in the economy which, per their expectations, might record higher interest rates in the future. Hence, investing in a sounder consumer protection plan and encouraging more competition in the market could prove more successful in resisting inflation than contractionary monetary policy. Another important factor that we need to consider is the impact of the new reform on the distribution of income and wealth in the economy. Most people in Egypt earn fixed incomes; they do not rise enough to meet inflation. Even if the Egyptian pound regains value soon, one still does not expect prices to decrease. This is what John May- nard Keynes referred to as being “sticky” when speaking The Law | 32
The law firm web presence is vital by Shahd H. Rashed Many law firms and lawyers don’t get new cases. Are you one of those lawyers? If you are not receiving enough cases and you believe that you deserve much more, keep reading this article to know more about your law business development and web presence. The rule of thumb during reading this article is BE AUTHENTIC First, let me introduce you ics, and videos. You should and see the opportunities undertake the measurable to the importance of good create and stick to a content underneath. Is there any activities, so we can mea- marketing to your job. strategy for your law firm opportunities to be investi- sure the results and analyze There are thousands and to be followed within your gated together? It is less ex- them. By tracking your re- maybe millions of lawyers website and blog. REMEM- pensive and more effective sults, you can have a neat with hundreds working in BER: you should always to invest on the existing cli- picture of what is working your specialty! So, to be- start with the written con- ents’ referrals, than creating & what is not effective in come unique and differ- tent & then co experiment .new ones your case. ent; you should brand and other content types. Create a snow-ball effect Don’t break confidenti- market yourself perfectly. Don’t spend any mon- of your referrals: lawyers ality: information slip can According to digital-law- ey on un-measurable usually get their job from lead you to the court, be- yer.com and Larry Bodine, marketing activities: you referrals, that is exactly why sides the bad reputation. a well-known market- should quantify and meas- you should cultivate them! Interact with your fol- ing consultant, who did a ure everything you do in Tell your clients to send lowers: build a rapport with marketing research on 377 branding and marketing you more work, explain the them by asking them some marketing professionals, yourself and your law firm. kind of work that you are questions and answering Bodine found the following For instance, public rela- seeking from them, and re- their questions. tips crucial for your busi- tions (aka. PR) activities are ferral sources can be more Provide qualitative ness development: expensive and at the same than your client base. Your knowledge: offer them free Choose the right infra- time we can never meas- referral sources can be: advice to build trust before structure to your web pres- ure their return on invest- your classmates, partners, turning them to loyal cli- ence: the rule is to spend ment (aka. ROI). On the and anyone who is not your ents. 2.5% of your revenue on other hand, you can spend competitor. REMEMBER: Keep your followers up- your marketing activities the same money amount the best way to create this dated: fresh content will (excluding the salaries of on different activities that snow-ball of referrals is to reveal that you are current the marketers). You can helps you earn a high ROI create a blog. and knowledgeable. deploy those 2.5% to a vari- in both the short-run & the Write your business plan According to the expert ety of activities that comes long-run (ex: blogs, social down: your business plan institute, to create a nice from offline (ex: flyers, bill- media pages, …). is not real until you write it number of leads and cli- boards) or online (ex: web- When comes to business down! You are moving the ents, you should start at the site, social media) basis. development, start with the ideas from your dreams to beginning of the funnel. Write high-quality con- “low-hanging fruits”: those your to-do list. tent: include a mix from fruits are your own existing Track your results: we words, pictures, infograph clients! Know them more, 15 | The Law
The funnel’s start is your Due to its importance, you marketing tactics & activ- should be careful on social ities. So here are more tips media; as careless lawyers about marketing: can undergo social media The lawyer personal brand- mistakes that will defiantly ing: while people search harm them. theservice provider, they go to the partners’ page so The 5 main reasons to go they can get a full image digital & create your own about the humans behind digital presence which is this service, statistics shows vital, are: that 80% of the traffic goes there. Every part- Visibility: for clients to ner should have his own find you and your servic- personal brand and touch es, you should have online points attached on the page presence and pop up to (ex: email address, social their research. networks). Think locally: localize Reach: while going on- your keywords online and line, you are going global try your best to rank on all and gaining a vast amount the local search engines. of reach. The quote says: If you are not on the first page on the Client service: if your search engine, then you clients can easily find what don’t exist. they want online, their sat- Use videos to your ad- isfaction increases. vantage: use 90-seconds videos to establish your Competition: online brand, show what are you presence is a way to reserve doing and why on your a part of the pie to yourself, homepage & social net- it enhances the competi- works. Always offer a call- tion among small firms and to-action for the visitors to large ones. subscribe and leave their email addresses. Credibility: when you Although, offline market- have online presence & ing tactics are tried and transparency takes place, true in the law field; but, you gain trust from your you can get better results partners and clients. through your online pres- ence. The online presence To conclude this arti- of your law firm is vital and cle, your law firm won’t crucial in the millennials work effectively & effi- era. Statistics shows that ciently without spend- 76% of people searching for ing on your branding law firms, do search online. and marketing activities & creating you own on- line presence. The Law | 16
The aftermath of a floating Egyptian Pound By Samer Waheed Shenouda Following the Central Bank’s announcement on the floata- Along with an increasing discrepancy between the offi- cial exchange rate and the market exchange rate, this in- tion of the Egyptian pound, a wave of panic and hysteria hit duced the growth of the foreign currency black market the streets of Egypt. Not only did the last devaluation result where the USD has been sold for amounts reaching 18 in high rates of inflation, but also had the introduction of Egyptian pounds.Several attempts were made to encoun- the Value-Added Tax stimulate a fall in real incomes. Now ter such black market, yet, it has been growing at a pace that the pound is almost half its value a few days ago, ex- high enough to make it incontrollable. The result was that pectations of hyperinflation are everywhere. With a fluctu- importers, foreign investors and ordinary people were un ating exchange rate, investors and entrepreneurs are reach- able to buy sufficient amounts of foreign currency at the ing a state of ambiguity with many businesses pending and official rate and had to resort to the booming black mar- people losing their jobs. ket where the dollar is worth a 20-minute taxi ride. At the Should we now panic?! same time, arbitrageurs and speculators, who would soon constitute the high-income group of the society, had their lucky break out of market inefficiencies. Apart from being a prerequisite for obtaining the IMF After months of sitting on the fence, the Central Bank’s loan, allowing the Egyptian Pound to float in the foreign decision has been made to allow a flexible exchange rate exchange market seemed inevitable. The decline in the system where the value of the Egyptian Pound would be foreign currency reserves left the Central Bank of Egypt solely determined by demand and supply forces. Hopes (CBE) unable to sustain a fixed exchange rate for long. were built that the decision would ease the pressure on This owes to the strong deterioration that took place in the foreign currency reserves, make our country eligible for tourism industry - one of Egypt’s biggest sources of foreign the IMF load, and allow the government to pursue other currency - that has been taking place after the plane crash policy objectives. This is not, however the end of the story, of October 2015. Another important source of foreign cur- as several consequences must be taken into consideration. rency, the Suez Canal, has also been generating fewer rev- Economists usually refer to the J-curve effect when speak- enues after the decline in oil prices; it became cheaper for ing of a currency that is losing value against others. That it shipping companies to take an alternative route. is not before a period that ranges from 6 to 12 months of With the increasing pressure on the level of reserves, the further deterioration that the balance of payments starts Central Bank of Egypt took the first step towards the de- to improve. The long run effect is indeed what the current valuation of the pound in March 2016 decreasing its val- government is looking forward to; our imports would be ue by approximately 14% and leaving the rest to cross that mostly substituted by domestic production and our ex- bridge when you come to it. Although such act tightened ports would rise as they become more competitive. The the purse strings, the problem was still increasing, and a only problem is that this plan has been strengthened by further devaluation was still expected. Attempting to de- several imports restriction policies with almost no empha- crease the demand on foreign currency, the CBE had been sis on export promotion. restricting the exchange of foreign currency through com- mercial banks. 31 | The Law
functions and purposes, to legalize the GA’s set of an ad- 25-Bruno Simma, The Charter of the United Nations: A Commentary (2nded ministrative tribunal. 39 In line, the dominant scholarship OUP 2002), 829, Para 138 40 classified the UN powers into “implied” and “inherent”. 26-Ibid, 809, Para 61 The first must be narrow (necessary to fulfil express pow- 27-Ibid, Para 63 ers, as unexpressed Powers are not implied freely) 41 and 28-Aziz TuffiSaliba.‘IS THE SECUITY COUNCILLEGIBUS SOLUTES?AN wide (necessary to fulfil purposes). 42 The second should ANALYSIS OF THE LEGAL RESTRAINTSOF THE UNSC’ [2012], PL 402, 406 aim to fulfil purposes, and itself, should not be explicitly or and 407 impliedly prohibited by the Charter. 43 29-Christopher Michaelsen, ‘Human Rights as Limits for the Security Council: A Matter of Substantive Law or Defining the Application of Proportionality?’ 1,2-Codification Division of the United Nations Office of Legal Affairs, ‘Reper- [2014], PL 452 , 456 tory of Practice of United Nations Organs’ (Art 39, 2000-2009, 2000-2003), 1051 30-Karl Doehring, ‘Unlawful Resolutions of the Security Council and their Le� 3-Ibid, 1053 gal Consequences’[1997],PL92,93and 94 4-Ibid (Art 39, 2000-2009, 2004-2007), 1058 31-Especially, articles 1, 2, 24(2), the basis of the limitations of the Security Bruno Simma, The Charter of the United Nations: A Commentary (2nded OUP Council actions. Michael W. Doyle, ‘A Global Constitution? The Struggle over 2002), 5-773, Para 38 the UN Charter’ [2010], PL 2, 3 6-Codification Division of the United Nations Office of Legal Affairs, ‘Repertory 32-Vienna Convention on the Law of Treaties(adopted on 22 May 1969,entered of Practice of United Nations Organs’(Article 24, 1945-1954), 21 into force on 27 January 1980),art32 7-Ibid, (Art 24, 1985-1999, 1996-1999), 1213 33-Mark Bovens, The Quest for Responsibility: Accountability and Citizenship 8,9-Ibid, 1213 and 1214 in Complex Organisations (Business & Economics, Cambridge University Press 10-Ibid 12 March 1998), 25 11-Ibid, (Art 24, 2010-2011), 6 34-Charter of the United Nations (adopted 26 June 1945, entered into force on 24 12-Ibid, (Art 24, 2000-2009, 2000-2003), 1052 )October 1945) (1945) 1 UNTS XVI (UN Charter),art 24(2 13-Ibid, (Art 24, 2010-2011), 11 and 12 35-See footnotes 2-5 and 26-45 14-Ibid, (Art 24, 2000-2009, 2000-2003), 1053 36-See footnote 74 and article 31 of the Convention. Also, Nigel D. White, The 15-Bruno Simma, The Charter of the United Nations: A Commentary (2nded Law of International Organisations (MellandSchill Studies in International Law OUP 2002), 811, Para 70 Series editor Professor Dominic McGoldrick , Second Edition, Juris Publishing 16-Ibid, (Art 24, 1970-1978), 12 Inc Manchester University Press 2005), 26 17-Certain Expenses of the United Nations (Advisory Opinion of 20 July 1962) 37-Bruno Simma, The Charter of the United Nations: A Commentary (2nded [1962] ICJ Rep 151, 168 OUP 2002), 782, Para 61 18-Conditions of Admission of a State to Membership in the United Nations 38-Reparation for Injuries Suffered in the Service of the United Nations (Advi� (Article 4 of the Charter) (Advisory Opinion of 28 May 1948) [1948] ICJ Rep sory Opinion of 11 April 1949) [1949] ICJ Rep 174, 182 57,64 39-Nigel D. White, The Law of International Organisations (MellandSchill Stud� 19-Aziz TuffiSaliba.‘IS THE SECUITY COUNCILLEGIBUS SOLUTES?AN ies in International Law Series editor Professor Dominic McGoldrick , Second ANALYSIS OF THE LEGAL RESTRAINTSOF THE UNSC’ [2012], PL 402, 405 Edition, Juris Publishing Inc Manchester University Press 2005), 84 20-Tadić Case, (Decision on the Defence Motion for Interlocutory Appeal on 40-Bruno Simma, The Charter of the United Nations: A Commentary (2nded Jurisdiction)ICTY-94-1-AR72(2 October 1995),Para 28 OUP 2002), 782, Para 62 21-Ibid 41-Reparation for Injuries Suffered in the Service of the United Nations (Dis� 22-Grand Chamber of the European Court of Human Rights Al-Jedda v. United senting Opinion of Judge Hackworth of 11 April 1949) [1949] ICJ Rep 196, 198 Kingdom(2011),App.No.27021/08,102 42-Jan Klabbers, An Introduction to International Institutional Law (Second 23-Aziz TuffiSaliba.‘IS THE SECUITY COUNCILLEGIBUS SOLUTES?AN Edition,Cambridge University Press 2009), 61 ANALYSIS OF THE LEGAL RESTRAINTSOF THE UNSC’ [2012], PL 402, 403 43-Ibid, 67 24-EdvardIsakHambro, THE CASE LAW OF THE INTERNATIONAL COURT INDIVIDUAL AND DISSENTING OPINIONS 1947-1958 B(Brill Archive, 1960), 571 The Law | 30
The concept of good faith in the marine insurance contract by Khaled El-Zoughby Marine insurance plays null if the insurer could several ways during the a crucial role in the field of show that the insured had pre-contractual negotia- international trade. It cov- made the contract fraud- tions and lasts for the dura- ers the loss or the damage ulently. Marine insurance tion of the insurance policy, of ships, goods, freights, law developed as part of the that an insurance contract and other interests against law merchant “Lex Merca- is dependent on accurate the risks covered whilst toria” prevailed in western description of the risk by being transported by sea commercial jurisdictions. the insured. The function- and cargo movements by One of the most significant al effect of this insurance other means of transport principles operating in ma- concepts is similar for the when indicated to the sea rine insurance contracts is remedy of breach of the carriage. It is considered to the concept of good faith insurance contract under be the oldest type of insur- and warranties. By virtue the current English law, ance. Since ancient times, of the good faith principle, from the right of avoidance merchants and ship-owners the insured is not only lia- of the contract in case of used sea loans, or “Bottom- ble to act in good faith with breach of the duty of good ry” as a maritime contract the insurer but must also faith or discharge of an in- by which a ship is pledged as a condition precedent to surer`s liability to indemni- in security for money bor- the enforceability of the in- fy for breach of a warranty. rowed for expenses in- surance contract, disclose curred in the course of its any facts that materially Marine insurance voyage, where the loans be increase the risk for the in- contracts: repaid only if the vessel ar- surer. rived safely. A contract of marine in- Marine insurance surance is a species of con- Marine insurance elements: tracts of “uberrimae fidei”, development: based upon the principle of One of the main elements utmost good faith, which In the 14th century, the of marine insurance, which originated in the ancient custom of marine insur- are the most argued issues Roman law, in Latin called ance developed the risks in the insurance market bona fides. “bona” means provided against under is the doctrine of utmost “good” and “fide” means the insurance policies were good faith in marine insur- what has been done. Cice- similar to those nowadays. ance contracts which could ro explained good faith as However, the contract of affect the outcome of cont being an obligation of truth insurance would have been ractual relationships in and fidelity to promises and 17 | The Law
agreements. Good faith is dealings”. The doctrine of recipient of the statement related to trustworthiness, good faith, as embodied by to a resulting transaction, diligence, and respectable the duty of disclosure and and provides for the void- conduct between both the the duty to refrain from ing of the contract at that insured and the insurer. misrepresentation, applies party’s choice. In Roman Society, the duty to the insurer and the in- Subsequently, however, of good faith was required sured, prior to concluding English common law has in all cases of contracts not of the contract and contin- developed and applied the only the marine insurance ues during the duration of concept of good faith in all contracts. Good faith was the policy. contracts of insurance and associated with trustwor- The doctrine of utmost these rules applies to all thiness, conscientiousness good faith was established types of insurance, not only and honorable contracts in the English jurisdiction in the field of maritime in the common and civil from the judgment of the insurance but also in life, law since the Roman times, greatest commercial law fire, property and motor and began as an obligation judge, Lord Mansfield, in insurances, it is required of contracts, promises and the earliest and leading case that each party included in agreements then became Carter V. Boehm in 1766, the contract must act with more sophisticated. although the case was only good faith in dealings with concerned with maritime other parties. After the fall of Rome, the insurance. concept of good faith ap- Lord Mansfield said that Lord Mansfield expressed peared again as an implied “the governing principle… that, “Good faith forbids principle regulating the applicable to all contracts either party by concealing performance of the con- and dealings”. However, what he privately knows, to tract and was adopted by English commercial law draw the other into a bar- the civil law systems. The has famously not accepted gain, from his ignorance of concept of good faith grew a broad principle of good that fact, and his believing slowly with time in the faith in their transactions. the contrary.” common law until it was Conversely, the modern To be continued … declared and established in law of contract recognizes the 18th century by Lord fraud and misrepresenta- Mansfield, that “the gov- tion as factors, which could erning principle…applica- abolish the consent of the ble to all contracts and The Law | 18
In scholarship, Judge Jennings in the Lockerbie Case said but “specifically” to every article in it. 31 Second, “restora- that a lawful decision-making based on discretionary pow- tion” is a result, and here we are concerned with means to ers must be derived from, governed and qualified by the achieve those results. Third, the broad character of the UN law 23. Judge Alvarez’s dissent in the Admission Advisory purposes and principles only means that they need to be Opinion said the veto must be kept within proper limit 24. interpreted with supplementary means, not neglected. 32 m Second School of Thought: The Security Council is not Also, the non-review of the SC actions (non-accountabil- bound by International Law ity) doesn’t make its actions unbound by law (irresponsi- Some authors like TGill, GH Oosthuizen and K. Doehring ble capacity); both are totally different legal concepts. 33 argue differently. They say that the members’ general con- Fourth, arguing that Article 1(1) only limits the Council’s sent to the Charter impliedly permits the pervert of Chap- actions under Chapter VI is rebutted by article 24(2). 34 ter VII actions from general International Law. 25 Kelsen- Lastly, in response to the Constitutional Courts argument, says that the aim of SC decisions, especially under Article UN Law did not yet develop as such. 35 39, is to maintain or restore peace, not law. 26 The Author believes that the first School expresses the Judge Schwebel in his Dissenting Opinion in the Nicara- modern school for interpreting constitutive instruments of gua Case argued that the Council is a political organ in international organizations. It considers the text, purpose, terms of nature and actions, and may bear law, but is not preparatory works and subsequent practice of the treaty bound to apply it. 27 Martenczuk said that the purposes stemming from and to fulfil all the purposes, principles and principles of the UN are extremely vague and general; and powers of the UN. It minds the Charter’s legal gaps therefore it is not possible to review SC resolutions under and ensure the UN effectiveness. 37 them. 28 According to Rosand the heart of Article 1(1) Furthermore, its arguments match with the general prin- only limits the Council’s actions under Chapter VI. 29 ciples of law, big five’s pledges, Charter’s articles and the Lastly, J.H. Stahl and D. Chauvauxargued said that though practice of several States. In addition, the second School’s a law may be neglected by a Constitutional Court for the arguments may extend to argue that these limitations were supreme interest of the State, however its decision will not explicitly stated in the Charter. Assuming this scenario, still be binding. They added that some judiciary, like the the following analysis rebuts this argument. This is where French and the British, do not intervene in the activities the implied and inherent powers theories apply. of the political authorities in critical political questions. 30 The starting point for this analysis is the ICJ Advisory Opinion in the Reparation Case. In which the Court said The Author’s view that the UN Charter’s inexplicit powers were granted to The second School relies on mistaken legal grounds. First, the organization by the implicit necessity of it being essen- the UN members didn’t “generally” consent to the Charter, tial to the performance of its obligations.” 38 Then, in the Effects of Awards Opinion it seemed to use the UN 29 | The Law
In law, is the Security Council bound by International Law? by Fady Antoun First School of Thought: The Security Council is bound It was also re-stated on 29 November 1999 in regards to by International Law the role of the Security Council in the prevention of armed The rule enriched in article 24(1)1 was explained by the conflicts by Namibia 7, Libya 8, Bangladesh 9 and Egypt 10. practice of several SC members. Its conceptualization was Later on 22 September 2011, the Council reaffirmed it 11. laid by Botswana, and supported by Algeria, in the Agen- Furthermore, it was argued by Pakistan on 12 June 2003 in da for Peace: peacekeeping meeting in 1995. The Republic opposition to suspending investigation or prosecution of said that the SC legitimacy and authority came also from US personnel before the ICC 12. In addition, by Jordan in the non-SC members. Therefore, they had to take part in relation to “Implementation of the note by the Pres ident what the SC was doing. Before, in the responsibility of of the Security Council: working methods” 13. Lastly, Mo- the Security Council in the maintenance of international rocco cited it in the situation between Iraq and Kuwait 14. peace and security meeting in 1992, Morocco, Zimbabwe, India and Venezuela had well argued. m They stated that the SC must act by the “collective” will of all States, instead of the “few”. Later, in the situation in Case-law emphasized this current dominant view 15. The Bosnia and Herzegovina, United Nations peacekeeping ICJ in the Namibia Advisory Opinion pointed to the repre- meeting in 2002, Iran said that a permanent member’s self- sentative of the Secretary-General statement in 1947: that ishness was anti-the heart and soul of the Charter 2. the fundamental principles and purposes of the UN are the sole restrictions to the SC authority. Also those under arti- m cles 24 and 25 of the Charter States are only bound by the Council’s decisions that are consistent with the Charter 16. In the situation between Iraq and Kuwait meetings in 2001 In the Expenses Case it also said that the powers that per- and 2002 respectively, Canada, used the rule to say that the form the purposes of the UN are not unlimited 17. In the SC members represented all the UN members. Interesting- admission to UN Membership Advisory Opinion, the ly, Jamaica went further by rendering the SC accountable same Court said that a political organ is bound by its treaty to them 3. In strengthening international law: rule of law law restrictions that are made to its powers 18. and maintenance of international peace and security meet- Again, in the Nuclear Weapons Advisory Opinion it said ing in 2006, Mexico argued that the rule rendered the re- that the founding States limit the powers of the Interna- spect of the Charter’s restrictions more important for the tional organizations that they create, for themselves 19. The SC than all organs 4. ICTY Appeals Chamber in Tadić said that the SC’s actions are subject to certain constitutional limitations 20. The tri- m bunal reasoning was that the text and spirit of the Char- ter do not render it unbound by law 21. Interestingly, The The Commentary of Article 24(2) says that the Council Grand Chamber of the European Court of Human Rights “must” act with the purposes and principles of the United in Al-Jedda Case referred to article 24(2) to argue that it Nations 5. Supported by some State Practice, in the ques- binds the SC with the UN Purposes and Principles 22. tion of Trieste, the clear majority of the SC members be- lieved that this duty was so restricted. This belief was cited later by the Secretary-General 6. m The Law | 28
Corporate lawyers influence on businesses in Egypt-steel industry by Ahmed El Shqanqiry One cannot easily imagine the major effect that laws, regu- of the Egyptian labor law, the disciplinary procedures 69 lations, and corporate lawyers may have on the day-to-day set forth in law must be applied and would be followed operations of both the national and the multinational busi- sometimes by a dismissal decision. nesses taking place in Egypt. Let us discuss an example of Moreover, the company is managed by one or more direc- a multinational steel company dealing with Egyptian and tories if it is a limited liability company, or by a board of foreign investors in Egypt and abroad, having offices in the directors if it is a joint stock company. In both cases, com- Middle East and Africa. panies are to fulfill a variety of duties & perform a certain The company imports, transforms and produces raw mate- set of obligations on behalf of their shareholders according rials that are necessary to manufacture mini mills and steel to a number of resolutions issued by a general assembly plants in Egypt, and sells the same product to Egyptian & held at least once a year. foreign consumers under the national & the international Companies must keep clear records of the financial status. quality standards. To have a clear vision of how a corporate The consumers who purchase products have the right un- lawyer can have an impact on a company in such type of der the consumer protection law no. 67 for the year 2006. industry, we may divide the company’s departments into Corporate lawyers must create a clear and powerful vision four main categories, i.e., manpower, products, premises, of such laws to all the concerned departments within their and profits, as follows: company. Manpower Premises & Profit In this category, corporate lawyers assist the employees As for the premises: The company may lease or own var- in improving their relationship with the employer, board ious pieces of land & buildings. Ownership, especially in members, senior management, and the shareholders. Em- areas such as Sinai and Suez, is regulated by law. Foreign ployees definitely require employment contracts, which ownership is limited to 45% in such areas. The company could be amended from time to time, especially after in- must also observe the health & safety legislation in the fac- troducing the new draft of the Egyptian labor law amend- tories and administrative premises. ing law no. 12/2003. Before any employee is recruited; the position is advertised As for the profit: Making money and profit sharing is the either online, through recruitment agencies, or in the offi- ultimate goal of organizations inside and outside Egypt. cial newspapers. At this stage, the HR department should Corporate lawyers must advise the company on all types be aware and legally updated on all the laws related to of taxes that are payable on the profits. Tax experts can ar- discrimination, diversity, national and foreign employees’ range schemes for the avoidance of potential tax liabilities. regulations (especially the principals of equal opportuni- However, in all cases, they must act according to law no. 91 ties). If an employee has an issue and is claimed for com- for the year 2005, as amended. And finally this was a brief mitting misconduct or grave fault under article description of how corporate lawyers can affect a 19 | The Law
successful business both nationally or internationally, and why a small or middle-sized entity should have an in- house legal department in order to manage the day-to-day legal issues. However, large companies must seek the assis- tance of a specialized national or international law firm to manage their large-scale deals and agreements. Products The sales & the purchases agreements are made customar- ily in order to sell products inside or outside Egypt under the national & the international quality standards. Steel products must comply with strict steel legislation. Steel factories, moreover, conclude contracts with national & international suppliers to supply their raw materials. Corporate lawyers are to draft these contracts according to all the laws & regulations governing such industries. Breach of a contract may result in the initiation of an in- ternational litigation solved mainly by alternative dispute resolution, (arbitration, mediation and/or conciliation). The company must carefully protect its intellectual proper- ty rights in order to avoid any infringement of its patents, trademarks or copyrights under the umbrella of the Egyp- tian law no. 82 of the year 2002 and the other international conventions, especially the agreement on trade-related as- pects of intellectual property rights (aka. IPR), which came into force on January 1st, 1995. Inspired by: how does the law affect the business world, Bunisess Law, Market Leader, A. Robin Widdowson, Pearson Longman 2010. The Law | 20
through the WIPO (World Intellectual Property Organi- Stage 3 – Substantive examination by National or Re- zation) some business men prefer the first way as it may gional IP Offices (of designated Contracting Party) cost less, but this one will give a more secure and a safer The IP offices of the territories where you want to protect environment for your trademark. Known as Madrid – The your mark will make a decision within 12 to 18 months, International Trademark System, it is a one stop solution in accordance with their regulations. WIPO will record for registering and managing trademarks worldwide. the decisions of the IP offices in the International Register and then notify you. If an IP office refuses to protect your File one application, in one language, and pay one set of mark, either totally or partially, this decision will not affect fees to protect your mark in the territories of up to 97 the decisions of other IP offices. If an IP office accepts to members. Manage your portfolio of marks through one protect your mark, it will issue a statement to grant your centralized system only. The International Trademark protection. The international registration of your mark is Registration Process, as follows: valid for 10 years in a row. You can renew the registration at the end of each 10-year period directly with WIPO with Stage 1 – Application through your National or Region- effect in the designated Contracting Parties concerned. al IP Office (Office of origin) Before you can file an international application, you need Few steps and your business will be safe and secured world- to register before, or file an application, in your “home” IP wide. Either the first way or the second way! It is your call. office. The registration or application is known as the basic mark. You then need to submit your international appli- cation through this same IP Office, which will certify and forward it to WIPO. Publication: The Madrid System: Objectives, Main Features, Advantag- es | Video: How to use the Madrid System Stage 2 – Formal examination by WIPO WIPO only conducts a formal examination of your in- ternational application. Once approved, your mark is re- corded in the International Register and published in the WIPO Gazette of International Marks. WIPO will then send you a certificate of your international registration and notify the IP offices in all the territories where you wish to have your mark protected. It is important to note that the scope of protection of an international registration is not known at this stage in the process. It is only determined af- ter substantive examination and decision by the IP Offices in the territories in which you seek protection, as outlined in Stage 3. 27 | The Law
trademark similar to an international one (copycat ). immunity derives from agreements on judicial assistance To register, there are two ways; one is through the Egyptian or agreements on law enforcement of general nature and law and its regulations according to Law no. 82 of 2002: agreements in connection with the protection of intellec- Article 64: The Department of Trade Registry shall be tual property rights which came into force prior to 1st Jan- competent to register the trademarks in the special regis- uary 1995. ter of such marks, in accordance with the provisions of this Those three articles are the ones to be regarded before the Law and its Regulations, without prejudice to the provi- proceedings of registering. sions of Articles 3 and 4 of Law No. 115 of 1958 on corre- If two or more have applied simultaneously for registration spondence and signposts imposing the use of Arabic. of the same mark, or of similar marks. Registration shall Article 65: The person who has registered a trademark and be suspended until such time when one of these persons who has made use of it for a period of five years as of the shall have produced a renunciation by the other claimants date of its registration, shall be deemed the owner of such or until a binding judgment has been issued in his favor. a trademark, unless precedence of use by a third party is Therefore, the sooner you register the better. In some cases, proven. A prior user of the mark may, within the said pe- a company figured out that one of the well-known brands riod of five years, challenge the validity of its registration. was not registered yet, so it hurried up to register first by The registration of a mark may, however, be challenged at the same logo and then blackmailed the original owner to any time, where the registration is made in bad faith. let go of this registry for the favor of the original one. That Article 66: Without prejudice to the provisions of interna- is a well-known practice worldwide. Be conscious of such tional conventions in force in Egypt, any natural person or actions to protect your own business. legal entity, Egyptian or foreign, belonging to or having the You may also be asked to make some minor modifications center of his or its effective activity in a country or entity on the subject mark in order to define and clarify it to member in the World Trade Organization or who applies avoid its confusion with an already registered trademark, reciprocity to Egypt, shall have the right to apply for the or a mark which already has a registration application. registration of a trademark with the Department of Trade After some required proceedings the final step will be the Registry in Egypt, with all attendant rights in conformity approval of the trademark registration by a decision of the with the provisions of this Law. department and shall be published, in the manner pre- Nationals of all member countries of the World Trade Or- scribed by the regulations, in the “Trademarks and Indus- ganization shall benefit from any advantage, preference, trial Designs Gazette”. Registration takes effect from the privilege or immunity granted by any other law to nation- application filling date. als of any state in connection with the rights provided for Another option is to be honest, it’s an international option in this Chapter, unless the advantage, preference or The Law | 26
Lawyer of the year Nermine Tahoun Interviewed by Hoda Nafee Why did you choose to study law and be a lawyer? m I decided to study law when I was at the high school. I used to watch international lawyers and that made me decide to get into that career. Although I got high grades in second- ary school, my first choice was to study law. About being a lawyer, I am a risk taker and I like being pro- ductive and creative like concluding contracts and deals. My personality is far from being enrolled in routine or ad- ministrative work. What obstacles you faced as a woman in a gender-based learning and seeking for the new things and learn them. profession? and how you overcame them? What challenges you faced as a fresh graduate? m m There is nothing ever called gender-based profession, As a fresh graduate, I faced some problems in getting a everyone is equal. Being intelligence, active and hard chance as I did not depend on any connections. I worked worker person has nothing to do with gender. We all must very hard and proved to be qualified person. I took the de- try to change the wrong perceptions in our society, more- cision to start working early like taking internships during over, being productive, talented in your profession is not the university period. related to gender. I worked so hard and exerted a lot of effort to prove that I am talented lawyer, and to gain clients As a professional lawyer how did you balance between confidence and trust. your career and your personal life? What is your technique in dealing with your clients and m gaining their confidence? Mostly, something must come at the expense of the other. m To achieve what I dreamed of, my social life was not very active. Law profession is an intellectual major rather than Simply, I do my work. I show them that I am talented law- it is a theoretical routine one. Thus, it requires from you to yer and they can depend on me. I am always ready to learn be more concise and precise in your work. But, now I am from the older more experienced lawyers. In my point of much more relaxed than before and my social relations is view being a lawyer is a learning process, always keep much more better. From where did you get that strength to keep going and overcome all the challenges you have faced? First, you must be self-confident and believe in yourself and in what you do. Always make sure to understand peo- ple’s minds and never let anyone pull you down and do not listen to other criticizes. You have worked for a while for the government, how was that useful? 21 | The Law
It was very useful as I worked as a legal advisor at the Min- For me, what I care more about is to see that the candidate istry of Finance during the term of Dr. Youssef Boutros in front of me is eager and keen to learn and work. I have Ghali, assisting the ministry’s international contracts. never dealt with my candidates as employees, but as some- Working with the ministry gave me enormous legal expe- one keen to learn. rience at the international level. It gave me great experi- Can you tell me about your most challenging cases? ence in terms of working with different governmental au- thorities and ministries. m Also, as a lawyer working for the government coming from One of the most challenging cases was to make the (PPP) a private sector background made me see the other side of implemented. To get this model founded was very chal- the private sector. As an advice, once you are standing on lenging mission. It was very tiring and hectic procedure, behalf of a party, you are wearing their hat. And always try we worked as a team including only me from a legal back- to reach a WIN-WIN situation. ground. Although it was not implemented, we made a new product that is legally secure. What do you think of the Egyptian law system? and if it needs improvement, how to improve it? In relation to your work, what is your criteria in accept- We must implement rules and plans for how to make laws ing new cases? and legislations that complement each other’s rather than being paradoxical. A good solution for that complexity m and contradiction is to get a successful model and try to implement it in Egypt. I am always keen to be honest with my clients, and tell them the truth about their position. In my point of view, this is an ethical issue and will save money, effort and time for the client. It also makes the client trust and respect you. Simply, that is what build the lawyer reputation and good name in the market. Trustworthy is of a crucial importance As 2016 is nearly ending, what does it represent to you for the client. It also makes the client trust and respect you. and what are your plans? Simply, that is what build the lawyer reputation and good name in the market. Trustworthy is of a crucial importance m in law major careers. Each year you have different ideas and plans depending on Finally, your message to all law students and new gen- the market changes. But, in terms of work and my law firm, erations? I’m aiming for enlarging my business and working better. At the end, it is important to keep gaining your clients m confidence and never lose it. Also, it is crucial to teach the young lawyers that work in my law firm to be professional Always keep working and exerting effort, never say no to qualified lawyers in the future, whether they remained in learning new things. Apply for many trainings, internships the firm or not. and be keen to gain the trust and the loyalty of the people around you. Remember that it is very important to enrich What do you look for in candidates before employee yourself by learning more and more, and fight for your them? dreams. m The Law | 22
Trademarks by Laila Badran What pops into your mind when you see those signs? own logo and trademark. Your trademark is the most val- Those signs are well-known that you don’t need to see or uable asset of your business. As for the basics of creating read any words to know its representation. That’s exactly your Trademark, the previous stated law no. 82 of 2002 ar- the job of a Trademark. ticle no. 67 stated some conditions; the following shall not The Egyptian Law no. 82 of 2002 in article 63 defined be registered as trademarks or components thereof: Trademarks as: Marks devoid of any distinctive character, or composed of ‘A trademark is any sign distinguishing goods, whether signs or statements which only usage grants to the prod- products or services, and includes in particular names ucts, or which are the normal picture or image thereof. represented in a distinctive manner, signatures, words, let- Any mark which is contrary to public order or morality. ters, numerals, designs, symbols, signposts, stamps, seals, Public armorial bearings, flags and other emblems pertain- drawings, engravings, a combination of distinctly formed ing to the State or any other state, regional or international colors and any other combination of these elements if used, organizations, as well as any imitations thereof. or meant to be used, to distinguish the products of a par- Marks which are identical with, or similar to, symbols of ticular industry, agricultural, forest or mining venture or religious character. any goods, or to indicate the origin of products or goods, Symbols of the Red Cross or Red Crescent, or any other or their quality, category, guarantee, preparation process, emblem of the same character, or any imitations thereof. or to indicate the provision of any service. In all cases, a The portrait of an individual or his armorial bearings, ex- trademark shall be a sign that is recognizable by sight.’ cept with his consent. Law no 82 book two regulates everything related to trade- Designations of honorary degrees which the applicant is marks. But why do you need a Trademark? unable to prove his right thereto. So, imagine a baby born with no birth certificate to distin- Marks and geographical indications which are likely to guish him from others. He might have a name and gender, mislead or confuse the public or which contain false de- but without a birth certificate, there’s no proof he is ‘the’ scriptions as to the origin of products, whether goods or one. When starting a business, you choose a name that re- services, or their other qualities, as well as the signs that fers to the business you do. That specific name could be contain an indication of a fictitious, imitated or forged used as a trademark to give you a worldwide recognition trade name. and protect you from being copied or abused by using your Last but not least, you are also not entitled to create a logo to promote a different product to customers or clients. By this, you feel more secured as you will never face fraud or get mistaken in deals. If you care about your name, the quality of your products, and you look forward to gain costumers trust, register your 25 | The Law
lent and multi-skilled legal adviser is available, if not easy pri vate practice positions with their remunerations pack- to find, target and hire.Reality is so far away from that and ages untouched for more than eight or so years, albeit of the rarity of DALAs increasing by the year. their rarity and the fierce inflation that took place in the While most of the multinational players have remarkable .countries in which they were based global presence and high business sense for the local mar- The above applies to multinational companies. As for local kets and while the greater percentage of them have some companies, operating in the MENA Region, even the big- sort of legal or business presence in Dubai, UAE, the de- gest and most established of them, an employee, no matter cision-making process is rarely made out of Dubai offices, how vital he or she could be to the business, would not and this is a huge point of weakness that defies the purpose be considered as a true business pillar, except in very rare of having a regional office or presence in the first place. cases that we have seen in the past few years, especially Also, this type of suspended regional presence will always with UAE based giants eagerly and steadily attempting to have its negative implications on the training, development establish new business trends in the MENA Region. and promotion of the team working therein and as well Some of the circumstances above not only could harm their future career paths. If a multinational company has and prolong the hiring process for the talent acquisition decided that its regional presence will be a fierce sales force teams and recruiters at the same time and level, it could that will pay no actual or tangible attention to the welfare have excellent DALAs declining the continuation of hiring and the development of the countries and regions in which process. If an excellent DALA is expected to pursue an em- they operate, the team members located there will never be ployment opportunity that may: truly considered as an integral part of the bigger family of Have so many interviewing and hiring stages for which he such a multinational player. or she may not have the time Moreover, any financial turbulences in the countries host- Take up to six months until successfully resolved ing the headquarters of those multinational companies Have demanding and vigorous interviewing and testing automatically result in cost cutting decisions that apply details that may have their toll on his or her present and worldwide even in the most thriving markets which were equally demanding job not harmed, even slightly, by the turbulences overseas. Gets suspended at any point in time due to some cost cut- And so, the business itself takes a large part in diminishing ting decision taken elsewhere and unrelated to the circum- its present and future. Not to mention, the strange business stances of the market or the region in which he or she will trend of constant cost cutting and laying off, even when a be hired (which happens a lot) given company is doing a great job for its customers, share- At the time of the headhunting or search, lack a detailed holders, directors and employees. job description, exact title and/or reporting line; and Despite fully supporting the business trend of periodical At the time of the headhunting or search, lack a detailed revising of methods, policies and processes, I am com- financial package or promise a moderate one albeit of the pletely convinced, based on actual experiences, that apply- significant responsibilities, broad professional and social ing cost cutting and laying off employees for the mere sake requirements and the sophisticated hiring process it in- of such harms the business on the medium to long term volves, such may render the DALA declining the opportu- and affects the quality, integrity, loyalty and productivity of nity at an early or an advanced stage and as well, unfortu- its employees. All the above, especially the assumption of nately declining to deal with the recruitment agency or the knowledge of local and regional markets and cost cutting .employer standing behind it in the future trends, affects DALAs to some great extent. Surely you have heard of one or more multinational com- pany that directed a recruitment agency to provide it with an excellent legal adviser for one third of his/her average salary basis grounds of cost consciousness or cutting and after spending years of hiring and firing mediocre advisers, such a company finally decided to hire the right candidate for the fair market price. However, after some legal liabil- ities, if disasters, have come to the surface due to the ill sighted hiring directions. Surprisingly, even when the right hiring process is finally taken and the fair market rate is reached, such a rate could remain stagnant for years due to the points explained above. I am aware of excellent DALAs in in-house and The Law | 24
as in master and doctoral degree holders) and followed( the same footsteps of the preceding category; DALA iii) Obtained Western qualifications besides their original The Distinguished Arab Arab qualifications (as in being admitted to the Law Soci- Legal Adviser - Part 1 of 3 ety of England and Wales or any US State Bar Association) and as well followed the same footsteps of the first category by Mr. Amr el Sabahi iv) Last but not least, possesses excellent legal knowledge, multi-linguistic communication skills and professional business experience, but did not fall within the preceding categories rarely, for one reason or the other, partially or fully fell under the radar of either: I believe the time has come for creating a professional, suit- local bar associations regional recruitment agencies able and modern tool or entity that could well cater for the local recruitment agencies; and/or HR Departments (es� development, hiring, remuneration and accordingly rating pecially in the cases of in-house legal advisers). of Arab legal advisers, who happen to have advanced pro- fessional skills and solid academic backgrounds. Surely, the Regional Legal Recruitment Agencies intention behind such a tool or entity is not by any means Regional recruitment agencies are mostly specialized in the introduction of elitist or exploitive classification of the legal recruitment rather than offering generic recruitment legal profession in the MENA Region than rather enabling services, which serves as an excellent asset for both em- its supporters to benefit themselves, their colleagues and ployers and legal advisers on equal footing. Most of such interns and the legal profession in general without preju- agencies are based in Dubai and/or London. And they are dice to a specific group of advisers. run by very capable headhunters who mostly hold law de- After all, it is evident that exploitive classification results in grees and/or qualifications. the deterioration of the quality and/or convenience of the goods and services provided to customers. Take the airline But, despite of their capabilities and logistical excellence, industry for example and the fact that it operated perfect- I have found that some of the employers as well as the re- ly and satisfactorily under the one class system and with gional recruiters had limited vantage points of what made the introduction of the three (or even more) class system, a reliable and capable regionally-knowledgeable and edu- some handful number of airlines ended up with all of their cated business lawyer. classes miserably failing as well as reaching shameful cus- tomer satisfaction rates. I call him/her the “Distinguished Arab Legal Adviser” or the “DALA”. This report and call for the formation of a new professional Again, as in the case of local bar associations, regional re- organization consists of multiple parts as follows: cruitment agencies have not been able to fully exploit the Scope capabilities of a DALA or properly illustrate in which var- Local Bar Associations ious and compound ways his/her hiring could be vital for Regional Legal Recruitment Agencies any given employer’s business and expansion. Local Recruitment Agencies With the hiring criteria, budget allocations, restraints and HR Departments even personal preferences set and directed overseas by Professional Future multinational companies and firms, regional recruiters as well as DALAs end up explaining to the talent acquisition Scope teams, who came up with such details, how unrealistic and I have always seen that Arab legal advisers who: outdated their requests and conditions evidently are. i) Graduated from English-language sections of faculties Such convincement fails in some events even with the due of law within the MENA Region and afterwards decided provision of material evidence and statistics. This kind of (and dedicated the time and efforts) to focus on the devel- convincement has proven to be extremely hard in some opment of their legal knowledge, multi-linguistic commu- cases as the hiring teams of multinational companies, di- nication skills and professional business experience; recting the recruitment agencies from overseas do not ap- ii) Graduated from Western law schools, whether as under preciate the rarity and/or importance of a DALA, assum- graduates (as in bachelor degree holders) or postgraduates ing, basis their knowledge of their local mar kets and the legal hiring processes applicable over there, that an excel 23 | The Law
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