Safe harbor
From Wikipedia, the free encyclopedia
The term safe harbor (safe harbour) has several special usages, in an analogy with its literal meaning, that of a harbor or haven which provides safety from weather or attack.
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[edit] Legal definition
A safe harbor is a provision of a statute or a regulation that reduces or eliminates a party's liability under the law, on the condition that the party performed its actions in good faith. Legislators include safe-harbor provisions to protect legitimate or excusable violations. An example of safe harbor is performance of a Phase I Environmental Site Assessment by a property purchasor: thus effecting due dilligence and a "safe harbor" outcome if future contamination is found caused by a prior owner.
[edit] Broadcasting
- Main article: Watershed (television)
In broadcasting, particularly in the United States of America, the term safe harbor can refer to the hours during which broadcasters may transmit material deemed indecent for children. This "safe harbor", enforced by the Federal Communications Commission, extends - legally - from 10 PM to 6 AM.
[edit] Commerce
In the context of commercial takeovers, safe harbors function as a form of shark repellent used to thwart hostile takeovers. Under implementation of this provision, a target company will acquire a troublesome firm in order to raise the acquisition price and make acquisition by other parties economically unattractive.
The Digital Millennium Copyright Act has notable safe-harbor provisions which protect Internet service providers from the consequences of their users' actions.
The Private Securities Litigation Reform Act of 1995 includes safe-harbor provisions to protect companies which make financial and investment forecasts in public markets.
The United States Department of Commerce runs a certification program which it calls Safe Harbor and which aims to harmonize data privacy practices in trading between the United States of America and the European Union. See Safe Harbor Arrangement Official site
[edit] Accounting
In accounting, the term safe harbor may refer to the method by which corporations would rather (typically) incur tax consequences than follow the precise requirements of their respective tax codes.
[edit] See also
- Is the Safe Harbor Statement Allowing Too Much Corporate Protection?
- Safe harbour in patent law
- Safe Harbor Principles in US export law
