KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE

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Comment on Theft of contract copyright
January 22, 2019
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Comment on Theft of contract copyright from January 19, 2019 article
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Ken,
          When I saw “Charlotte from Charlotte’s” blog about people who rip off contracts it reminded me of the issues that we run into when we do due diligence on a ‘rip off artist.’   We look at around 100,000 contracts a year so we are bound to see some doozies.  The biggest error is companies who steal a contract and forget to change the name of the company that they stole it from in every instance.  It isn’t uncommon for our client to be buying Joe’s alarm and have contracts that have ‘ADT’ buried in the text somewhere.  
          Other errors happen.  We had to help a company get over 700 contracts re- signed because when they copied another company’s agreement they ended up with a sentence that said “we do guaranty police response,” instead of we do ‘not’.  Still waiting for the one that says ‘we doughnut guaranty police response.’  
          How many of us suffer from “autocorrect” issues?  It also happens when novices alter a legal document.  ‘Detect’ becomes ‘defect’ or ‘deflect’, and you don’t want to explain how your system failed to ‘defect’ or ‘deflect’ an event on the witness stand.  
          We worked on a due diligence in California in which all of the contracts stated that they were subject to Missouri law and that the venue was in Saint Louis.  It’s hard enough to collect from a deadbeat customer.  Try collecting when your own contract says that you have to go to court 1,000 miles away.  
          Additionally, when a Seller tells me that they stole the contract from another company, plenty of thoughts go through my head.  Due diligence in the buying process is about the integrity of the Seller.  If someone is stealing contracts, what else are they stealing? 
Mitch Reitman
Reitman Consulting Group
Fort Worth, TX
817-698-9999
http://www.reitman.us
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Response
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          Good points.  Companies that steal another company’s contracts have no idea whether those contracts are suitable for their use, whether they are updated and a host of other issues.  Why an alarm company owner or manager would want to spend his or her time stealing and adopting a contract rather than buy a new contract is really sad.  They obviously don’t value their time.  They just can’t help themselves.  They don’t realize that the contracts are the most important asset they have.  Not only will they need to rely on the contracts to collect and enforce their deal, but will need the protection afforded by the contracts to defend a claim, to get insurance from a decent alarm industry E&O carrier and get monitoring from a reputable monitoring center.  If that isn’t enough, wait until they go to sell the subscriber accounts and have to explain the contracts, where they got them and what the vintage of the contract.  These alarm company owners and managers almost never understand how to use the contracts, what changes can be made and what needs to be done at time of execution.  Honestly, I have no sympathy for them.  These are the same people who complain about making a living in the alarm industry and have 10 reasons business isn’t good.
          For most of these alarm company owners and managers it’s not too late to straighten out.  You have time to get new contracts and start doing the alarm business in a very proven profitable way.  If you’re spending your time figuring out how to beat the system, steal or write your own contracts, form your own corporations, handle your own legal and accounting issues, your HR issues, be the chief cook and dishwasher, you are swimming against the current.  Stop making things harder.
          So here’s a good plan, a good start.  Sign up for our new Concierge Lawyer Plan for the alarm industry.  You will start getting the right advice right away.  We can turn things around quickly, and yes, you will probably have to start with new updated Standard Form Agreements.  
          For those of you relatively new to the business, the advice is the same.  Sign up for the Concierge Program, use our Standard Form Agreements.
          Even those of you who are doing everything right and enjoying the success you deserve, the Concierge Program is going to be a valuable benefit and the advantages of participation are going to increase over time.  The discounts are designed to pay for the membership.  Contact our Program Coordinator Stacy Spector,Esq., today at 516 747 6700 x 304 or SSpector@KirschenbaumEsq.com.
          The discounts apply as soon as you sign up and can be used to buy updated Standard Form Agreements.  Contact our Contract Administrator Eileen Wagda for more information at 516 747 6700 x 312  or EWagda@KirschenbaumEsq.com
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CONCIERGE LAWYER SERVICE FOR THE ALARM INDUSTRY PROGRAM
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    This week we announce our CONCIERGE LAWYER SERVICE FOR THE ALARM INDUSTRY PROGRAM. I hope you decide to join. I promise we will make it worthwhile.  We want you to think of K&K as your attorneys and we hope to meet your every expectation.  Participation is limited so don't delay.  Now you can afford to have K&K on retainer and available when you need us.
You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge
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THE ALARM EXCHANGE

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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
516 747 6700
www.KirschenbaumEsq.com