.

Charlene partners with clients to create and execute brand management strategies that achieve protection and enforcement goals and result in robust and valuable intellectual property assets.

Charlene is the former Chair of Dorsey’s top-ranked Trademark, Copyright and Advertising practice group. Charlene serves as intellectual property counsel for small and large businesses in a wide variety of industries, including consumer products, entertainment and media, cosmetics, financial services, telecommunications, software, and medical devices. Charlene has extensive experience in all stages of the brand management process and her work includes representation of clients in opposition and cancellation proceedings before the Trademark Trial and Appeal Board (TTAB), demand letters and allegations of infringement, and take down requests related to online infringement, as well as prosecution of Uniform Domain Dispute Resolution (UDRP) proceedings.

Charlene advises clients on open source licensing and compliance and generative artificial intelligence (AI), and provides clients with trainings and seminars on the use of both. Charlene also has significant experience in transactions involving intellectual property, including due diligence, negotiation of agreements, and assistance with the transfer of intellectual property rights and recordation of security interests related to corporate transactions and asset purchase and sale agreements domestic and international.

Charlene is the co-manager of Dorsey’s IP Blog, TheTMCA.com, which focuses on legal developments in the world of TradeMarks, Copyrights, and Advertising. Charlene also authors Chapter 29 of The Practitioner’s Guide to Colorado Business Organizations.

Select Experience

Trademark and Copyright Management, Enforcement and Agreements

  • Counsel clients with large and small portfolios on the adoption, selection, protection, and enforcement of trademark and copyright assets on a worldwide basis.
  • Strategy and management of international trademark and copyright portfolios including work with local counsels around the world.
  • Conduct trademark clearance searches.
  • Counsel and assist market leading companies with registration of intellectual property assets with customs agencies in numerous countries and manage seizures by various customs and border control agencies worldwide.

Education

  • University of Denver, Sturm College of Law (J.D.)
    • Order of the Coif
  • University of Wisconsin - Madison (B.S., Political Science and Behavioral Science and Law)

Bar Admissions

  • Colorado

Court Admissions

  • U.S. Court of Appeals for the Tenth Circuit
  • U.S. District Court for the District of Colorado

Professional Affiliations

  • Practice Group Leader, Trademark, Copyright and Advertising Practice Group, 2019 – 2023
  • Author of Chapter 29 of The Practitioner’s Guide to Colorado Business Organizations
  • Member, International Trademark Association
  • Member, Colorado Bar Association
  • Member, Denver Bar Association

Charitable & Civic Involvement

  • Chair, Board of Directors, Denver World Affairs Council DBA WorldDenver
  • Denver Bar Association “Wheels of Justice” bike riding team involved in the Courage Classic to benefit and raise money for Denver Children’s Hospital, 2007 – 2011
  • Volunteer Instructor, Columbine Elementary School, Denver, 2009
  • Member, WomenCook! Committee for Work Options for Women, 2008-2013

Accolades

  • Best Lawyers in America®, 2021-2027
  • Chambers USA, Intellectual Property, Colorado, 2018-2026
  • Colorado Super Lawyers®, 2020-2022, 2024-2026
  • IAM/WTR Copyright 1000, “World's Leading Copyright Professionals," 2026
  • World Trademark Review 1000, "The World’s Leading Trademark Professionals," Leading Practitioner, 2014-2026
  • World Trademark Review’s Global Leaders Guide: Private Practice, Global Leader, 2024-2026
  • 5280 The Denver Magazine, Top Lawyer in Denver, Intellectual Property, 2016-2026
  • Best Lawyers®Lawyer of the Year, Trademark Law, 2023, 2025
  • Managing IP, IP STAR, 2018-2026
  • Dorsey & Whitney – Scales of Justice Team Award (The World Ventilator Foundation), 2021
  • Chambers USA, "Up and Coming," Intellectual Property, 2015-2018
  • Colorado Super Lawyers®, "Rising Star," 2010-2017
  • Law Week Colorado, Winner, "Up and Coming Stars," 2009
  • Denver Bar Association, Volunteer Lawyer of the Year, 2009

Select Presentations

  • Panelist, Managing Trademark Workflows More Efficiently and Profitably, IPWatchdog.com Webinar (September 2024)
  • Speaker, Almost Famous Marks: Delusion vs Dilution, 21st Annual Rocky Mountain Intellectual Property & Technology Law Institute (June 2023)
  • Speaker, Sports & Dying Trademarks: A Snapshot in Time, 19th Annual Rocky Mountain Intellectual Property & Technology Law Institute (June 2021)
  • Speaker, The Best Offense is Defense: TTAB Defenses, 18th Annual Rocky Mountain Intellectual Property & Technology Law Institute (July 2020)
  • Speaker, Office Action Space: Case studies and Winning Strategies, 17th Annual Rocky Mountain Intellectual Property & Technology Law Institute (May 2019)
  • Panelist, To Use or Not to Use, 16th Annual Rocky Mountain Intellectual Property & Technology Institute (June 2018)
  • Tapped: Avoiding Bar Fights (typical business disputes) (November 2017)
  • Seminar Playback: Rock Bands, “Redskins,” & Registrations: The Federal Circuit Strikes Down Statute on “Disparaging” Trademarks (January 2016)
  • Presenter, gTLD Launch Update: Protection and Enforcement of Trademarks, 13th Annual Rocky Mountain Intellectual Property & Technology Institute (May 2015)
  • Presenter, Review of Recent TTAB Dilution Cases, 11th Annual Rocky Mountain Intellectual Property & Technology Institute (May 2013)
  • Presenter, Intellectual Property for Small and Start-up Businesses, Bard Center for Entrepreneurship (January 2010)
  • Presenter, Intellectual Property in the Age of Online News, Society of Professional Journalists (November 2009)
  • Presenter, Trademark Dilution Revision Act of 2006, Colorado Bar Association, Intellectual Property Section (June 2007)
  • Presenter, Copyright in Music: The Basics, Licensing, and Issues in the Digital Age, CLE International Intellectual Property Conference (February 2007)
  • Sixth Annual Intellectual Property & Technology Institute (June 2008)
  • Guest lecturer, Music Law and Licensing, University of Denver Sturm College of Law (Spring 2005 & Fall 2006)
  • Presenter, Trademark Basics, Rocky Mountain Intellectual Property and Technology Institute, Colorado Bar Association (2008)
  • Presenter, Copyright Basics, Rocky Mountain Intellectual Property and Technology Institute, Colorado Bar Association (2009)

Insights

Blog Post

India Draft Digital Personal Data Protection Rules, 2025

January 27, 2025

This post was written by Indian Law expert, Cyril Abrol, of the law firm Remfry & Sagar and republished with permission from Remfry & Sagar.  For more information about Remfry & Sagar and their attorneys, please visit: https://www.remfry.com/. On January 03, 2025, the government released the much awaited draft Digital Personal Data Protection Rules, 2025, (Draft Rules / Rules) for public consultation and invited stakeholder feedback by February 18, 2025 (access the Rules here). The Rules aim to provide an operational framework for the Digital Personal Data Protection Act, 2023 (DPDP Act /Act) which was enacted on August 11, 2023, establishing a framework for protecting digital personal data by regulating its processing in India (read a synopsis here and here).  It is also applicable to processing digital personal data outside India, if it involves providing goods or services to data principals (individuals to whom the personal data relates) within the territory of India. Highlights of the Rules include: Notice for consent To obtain informed consent from a Data Principal, a Data Fiduciary must provide it with a clear and standalone notice outlining what data is to be collected, the purpose for the processing, and details of goods /services to be provided or uses to be enabled by the data processing. Additionally, it should contain a direct communication link through which data principals may withdraw consent, file a complaint to the Data Protection Board (‘Board’) etc. Consent Managers The DPDP Act defines a ‘Consent Manager’ as “a person registered with the Board who acts as a single point of contact to enable a data principal to give, manage, review, and withdraw consent through an accessible, transparent, and interoperable platform.” Under the Rules, a Consent Manager must be a company incorporated in India, having a minimum net worth of INR 20 million to ensure financial stability and have a sound reputation and record of fairness, integrity and operational capacity. Security Safeguards Data Fiduciaries must implement measures such as encryption, obfuscation or masking of personal data, access control, monitoring of breaches and unauthorized activities as well as ensure continuity in processing. The Rules set out minimum technical safeguards that include: (i) implementation of access control measures; (ii) maintenance and monitoring of logs of PD access; and (iii) maintenance of back-up data. Data Breach Notification  The Rules mandate that all personal data breaches must be reported to both affected users and the Board. Upon becoming aware of a breach, organisations are required to immediately notify affected individuals with comprehensive details including the breach's description, nature, extent, timing, location, potential consequences, risk mitigation and recommended safety measures and contact information for inquiries. Similar information must be concurrently reported to the Board within 72 hours of becoming aware of the breach. Data Retention Policies  E-commerce platforms with over 20 million registered users, online gaming intermediaries with over 5 million users and social media intermediaries with over 20 million users must delete user data after 3 years of inactivity. Children's and Disabled Persons’ Data Data fiduciaries must implement measures to ensure that consent for a child’s data is given by their parent and verification is performed to confirm that the consenting party is an adult. Consent for a disabled person is to be obtained from their legal guardian and it must be verified that the guardian has been appointed under applicable guardianship laws. However, there is ambiguity on how it will be established that a Data Principal is a minor or a person with disability. Further, certain Data Fiduciaries, such as healthcare providers or educational institutions, may be exempt from specific obligations when processing children’s data, under defined conditions. For instance, educational institutions are exempt where they track and behaviourally monitor children for educational activities or for safety reasons. Also, processing of personal data for research, archival, or statistical purposes is exempt if it complies with prescribed safeguards (listed in Schedule II to the Rules). Cross-Border Data Transfer Guidelines  Restricted /prohibited territories have not yet been notified. Data fiduciaries must ensure compliance with conditions set by the government, through general or special order, for making personal data available to foreign states or entities. Annual Data Protection Impact Assessments (DPIAs) If the Central Government identifies an entity as a Significant Data Fiduciary based on enumerated factors, including volume and sensitivity of the data processing, that entity must conduct annual DPIAs to assess risks associated with their data processing activities and submit their findings to the Board. Once the Rules are finalised, the government will begin appointing members of the Board. Rules meant for businesses /industry will likely take effect in a staggered manner – one report hints at a two year sunrise period for industry to transition to the new law.

Blog Post

Key Changes to the Korean Trademark Law to be Enacted in 2025

January 10, 2025

This post was written by Korean Law experts, Sue Su-Yeon CHUN and Clare Ryeojin PARK of the law firm Kim & Chang and republished with permission from Kim & Chang.  For more information about Kim & Chang and their attorneys, please visit: https://www.kimchang.com/en/main.kc. For more insights on intellectual property from Kim & Chang, please visit: https://www.ip.kimchang.com/en/insights/index.kc. On December 27, 2024, the Korean National Assembly passed a proposed amendment to the Trademark Act ("Amendment") which will be enacted six months following the date of promulgation. Under the Amendment, (1) the trademark opposition period will be shortened to 30 days; and (2) the limit on punitive damages for intentional trademark infringement will be raised. Details are set out below. Opposition period to be shortened from 2 months to 30 days Under the current law, anyone can file an opposition with the Korean Intellectual Property Office ("KIPO") against a trademark application within 2 months of the date of its publication. However, many people file trademark applications at the time of launching the relevant product or with respect to trademarks that are already in use, and in addition, only about 1% of all published applications encounter oppositions. Recognition of the above, led to the consensus that the opposition period should be shortened so that trademarks can be registered more quickly. For applicants, this amendment will expedite the overall registration process. Potential opposers will have to keep a very close eye on publications given the very short opposition period. As is the case now, however, it will remain possible, to first file a simple notice of opposition before the end of the opposition period and submit a detailed opposition petition within a 30 day period (extendible for national applications) after the opposition period expires. In addition, an information brief can be filed with KIPO to preemptively block the registration of a trademark before the mark is published. The Amendment will only apply to trademarks that are published after the date of enactment. Punitive damages limit to be increased from 3 times to 5 times Under the current law, trademark owners are entitled to claim damage compensation from an infringer based on the infringer's profits gained from the infringement, the trademark owner's lost profits due to the infringement, or reasonable royalties. However, trademark owners are frequently hindered from recovering an adequate amount of damages, as there are practical difficulties in substantiating the damages actually incurred. To address this, an earlier amendment to the Trademark Act (amendment of October 2020) introduced the concept of punitive damages and currently, punitive damages of up to 3 times the amount of actual damages can be sought for intentional acts of infringement. The Amendment reinforces the punitive damages provision by increasing the limit to 5 times the amount of actual damages. By doing so, further pressure will be placed on potential infringers preemptively, while entitling trademark owners to a more realistic remedy for damages incurred. The Amendment will apply to acts which occur after the date of its enactment.

Firm Highlights

News

Dorsey & Whitney Partner Michael W. Droke Releases Fourth Edition of Cooperative Business Law: A Practical Guide with Enhanced Insights for Today's Cooperatives

Industry-leading reference updated with practical tips and current cooperative law developments Dorsey & Whitney LLP is pleased to announce the publication of the fourth edition of Cooperative Business Law: A Practical Guide to the Special Laws Governing Cooperatives, authored by Dorsey Partner Michael W. Droke. Drawing on more than 20 years of direct experience as outside general counsel to major agricultural and food industry cooperatives, Droke has updated this essential resource with new practical tips, real-world guidance, and insights into emerging cooperative law issues that matter to cooperative leaders and their advisors. Since its initial publication, this comprehensive guide has become the standard reference for attorneys, executives, and cooperative governance professionals navigating the unique legal landscape of cooperative organizations. The new fourth edition builds on that foundation by incorporating practical lessons learned from recent cooperative transactions, governance challenges, and regulatory developments. "I am grateful for Dorsey's continued support of this work and for the opportunity to contribute to the cooperative community," said Droke. "Over the past 20 years, I've had the privilege of serving as outside general counsel to some of the nation's most successful cooperatives. The practical insights gained from that work inform every page of this edition. I wanted to create a resource that helps cooperative leaders and their legal advisors tackle real business challenges with confidence." The Fourth Edition features: Practical tips and real-world case examples drawn from decades of cooperative practice Guidance on cooperative formation, governance, member rights, and voting structures Current analysis of antitrust and Capper-Volstead Act issues affecting modern cooperatives Insights into financing, mergers and acquisitions, and corporate restructuring for cooperatives Member relations strategies and dispute resolution approaches specific to cooperative structures About Michael W. Droke Michael W. Droke is a Partner at Dorsey & Whitney LLP and Firmwide Co-Chair of the Food, Beverage & Agriculture practice group. He serves as outside primary counsel for numerous cooperatives, providing comprehensive legal guidance on all aspects of cooperative operations, governance, member relations, corporate restructuring, financing, and mergers and acquisitions. His representative clients include National Co+op Grocers, Darigold, the Northwest Dairy Association, Organic Family Farms Cooperative, Chelan Fruit Cooperative, and Sacramento Natural Foods Co-op. A former business executive who brings a dual perspective to his practice, Droke combines legal expertise with practical business acumen. He has served as an outside board member and general counsel for major cooperatives and maintains deep involvement in the cooperative community through regular presentations and participation in industry organizations including NCBA CLUSA, the National Society of Accountants for Cooperatives, and the National Council of Farmer Cooperatives. About Dorsey & Whitney's Cooperative Law Practice Dorsey & Whitney's Cooperative Law practice group is a recognized national leader in cooperative law with more than 45 years of experience serving agricultural cooperatives, rural electric cooperatives, purchasing cooperatives, consumer cooperatives, worker cooperatives, and cooperative start-ups across the nation. The practice includes 20 dedicated lawyers who advise cooperatives and other agriculture-related organizations on formation and organization, voting rights and governance, antitrust and Capper-Volstead Act compliance, tax issues, project development and finance, mergers and acquisitions, real estate, labor and employment, environmental compliance, and all other aspects of cooperative business operations. Cooperative Business Law: A Practical Guide to the Special Laws Governing Cooperatives, Fourth Edition, is available from major book retailers and online booksellers.

Insights

Energy Law: Month in Review - September 2026

Welcome to Dorsey’s Energy Law: Month in Review. We provide this update to our clients to identify significant developments in the previous month. Please reach out to any of the authors, listed above, to discuss these issues. Regulatory Developments Massachusetts Ratchets Up State and Local Regulation of AI Data Centers In early September, Governor Maura Healey of Massachusetts signed an executive order requiring that artificial intelligence data centers secure the approval of local communities as a precondition to proceeding with a given project. According to the terms of the order, data center developers will need to secure a “community benefits agreement” as a precondition to receiving permits from numerous state agencies, including the Department of Environmental Protection, the Energy Facilities Siting Board, and the Massachusetts Environmental Policy Act Office. Beyond requiring community benefits agreements, the order also mandates that developers mitigate utility costs to consumers, prohibits the use of nondisclosure agreements, and requires various state agencies to develop measures to limit data center impacts on the environment. North Carolina Regulators Decline Approval of Duke Energy Gas Turbine On September 18, 2026, North Carolina Utilities Commission (NCUC) denied Duke Energy’s application for a certificate of public convenience and necessity required to construct a gas-fueled combustion turbine at its Smith Energy Complex in North Carolina. The NCUC objected strongly to the $584 million price tag and noted that Duke appeared to be constructing the facility “based on anticipated data center customer additions.” The NCUC rejected that anticipated growth as “insufficiently reliable for the Commission to act at this point.” In rejecting Duke’s application, the NCUC also noted that Duke had signed the White House Ratepayer Protection Pledge, in which it represented that it would not shift data center costs to consumers. The NCUC observed that the record did not demonstrate how Duke “intends to adhere to its commitments under the Ratepayer Protection Pledge with regard to the Proposed Facility.” Notably, commission staff had actually supported the construction of the turbine, citing concerns about Duke’s reserve margins. The NCUC noted that it “understands the Public Staff’s expressed concerns,” but those concerns were outweighed by the NCUC’s reservations, including questions of demand. Department of Energy Approves Funds for Grid Improvement The U.S. Department of Energy (DOE) recently announced that it would fund 31 grid-improvement projects in 26 states. The funding initiative is part of the DOE’s “SPARK” initiative. The funding will include $1.9 billion in federal funding from DOE and $3.35 billion in recipient cost-sharing funding. The funds will go to projects designed to improve grid reliability and lower electricity costs. Recipients plan to reconductor over 1,500 miles of transmission lines and will deploy grid-enhancing technologies across approximately 21,000 miles. DOE stated that this initiative will make available over 23 additional gigawatts of electricity. Texas Moderates Rules Governing Data Center Interconnection The Texas Public Utility Commission adopted new regulations governing large-load interconnections. The rules impose a flat study fee of $100,000 for all proposed interconnections, which departs from the initial proposal to impose study fees using a tiered system based on project size. Additionally, the final rule eliminates the PUC’s previous proposal to impose a non-refundable interconnection fee of $50,000 per MW of contracted peak demand. The final rule also moderates the initially proposed regulations governing Electric Reliability Council of Texas (ERCOT) notifications for large-load customers’ non-utilized capacity. The proposed rules would have required notifying ERCOT within 30 days of missing a scheduled energization milestone by six months. The final rules, however, do not require informing ERCOT unless a scheduled energization milestone is missed by 24 months. FERC Denies TransAlta 202(c) Cost-Recovery Plan The Federal Energy Regulatory Commission (FERC) recently rejected TransAlta’s plan to recover $19.9 million in expenses stemming from a DOE order in which DOE prohibited TransAlta from retiring its coal-powered Centralia power plant. TransAlta had previously intended to retire the facility at the end of 2025. TransAlta’s cost recovery plan proposed spending an additional $23 million on repairs to continue operating the unit. FERC’s main objection had to do with geographic scope. TransAlta’s recovery plan called for recovering costs from California Independent System Operator (CAISO) and the Southwest Power Pool (SPP), but the DOE’s order requiring operation of the plant was designed to ensure reliability in the Northwest assessment area (Montana, Oregon, Washington, and parts of northern California and northern Idaho). Accordingly, FERC was unwilling to allow cost recovery from CAISO and SPP when the order that precipitated the additional costs only related to the Northwest assessment area. FERC informed TransAlta that it would only approve cost recovery from load-serving entities in the Northwest assessment area. FERC’s decision comes amid a rush of DOE emergency orders requiring the continued operation of coal-fired generating units. Litigation Appeals Court Upholds Washington Hydropower Plant With Caveats In a September 21, 2026, opinion, the Washington Court of Appeals largely upheld a Clean Water Act water quality certification by the Washington Department of Ecology for the Goldendale Energy Storage Project, a proposed pumped-water storage hydropower system adjacent to, but off-stream from, the Columbia River. A nonprofit (Columbia Riverkeeper) and the Confederated Tribes and Bands of the Yakama Nation appealed the certification, contending that it failed to impose necessary conditions and monitoring requirements to protect the water quality of the Columbia River. Most saliently, the plaintiffs argued that the project had the potential to leak 100 acre-feet of water per year into tributaries of the Columbia River. The Court of Appeals broadly rejected plaintiffs’ challenge to the state’s conclusion that “the project was designed not to leak.” That said, the Court of Appeals did reverse on one narrow issue. Specifically, the court determined that the state’s conclusion that “leakage from the project’s tunnels would be monitored and reported” was not supported by the evidence because the certification “does not explicitly require monitoring and reporting to determine whether there is any leakage.” Accordingly, the court remanded the matter to the state to impose monitoring and reporting requirements but otherwise affirmed the certification. Legislative Developments California Legislates Restrictions on Data Center Energy Use and Grid Costs On September 21, 2026, California Governor Gavin Newsom signed seven bills broadly regulating data centers in the state. SB 1168 directed the California Public Utilities Commission to assess the energy used by data centers. It also requires the PUC to pass costs of transmission and distribution upgrades and load increases on to data centers, rather than customers. SB 886 and SB 887 compel data centers to pay for infrastructure upgrade and generation costs, and wildfire mitigation costs, in addition to imposing environmental review. The statutes additionally increase local oversight of data centers. AB 1577 imposes a monthly reporting requirement that requires data centers to supply energy consumption and efficiency data to the California Energy Commission. AB 2383 contains incentives for data centers to use onsite clean energy generation. Finally, AB 2469 and AB 2619 require data center developments to assess water supply and develop a water scarcity plan. The statutes also mandate statewide water reporting as a precondition to obtaining and renewing business licenses.

Insights

EPA Limits Title V Re-Litigation of NSR Permits

Overview On September 25, 2026, the U.S. Environmental Protection Agency (“EPA”) published a final rule that significantly limits the ability of third parties to use the Clean Air Act (“CAA”) Title V permitting process to revisit New Source Review (“NSR”) permitting decisions years after those decisions were made. The rule establishes that NSR permitting determinations generally must be challenged during the original permitting proceeding, thereby providing regulated sources with greater permitting certainty and finality for major capital projects. Published in the Federal Register titled Clarifying the Scope of “Applicable Requirements” Under State Operating Permit Programs and the Federal Operating Permit Program (Docket ID No. EPA-HQ-OAR-2023-0401), the rule amends 40 C.F.R. Parts 70 and 71 to codify EPA’s interpretation regarding when requirements established under other CAA programs may be reviewed, modified, or implemented through the Title V operating permit program. The rule becomes effective 30 days after publication. The rule addresses two principal issues: (1) the relationship between NSR preconstruction permitting and Title V operating permits, and (2) the treatment of the General Duty Clause under CAA section 112(r)(1). Most significantly, the rule provides greater certainty for sources navigating the NSR permitting process. EPA’s amendments are intended to ensure that NSR permitting decisions made through an approved public process are generally not revisited later through Title V permit proceedings. The rule responds to a circuit split between the U.S. Courts of Appeals for the Fifth and Tenth Circuits. In Environmental Integrity Project v. EPA, 969 F.3d 529 (5th Cir. 2020), the Fifth Circuit upheld EPA’s interpretation, concluding that it was consistent with the text, structure, and purpose of Title V. In contrast, the Tenth Circuit reached the opposite conclusion in Sierra Club v. EPA, 964 F.3d 882 (10th Cir. 2020), finding that the then-existing regulatory definition of “applicable requirement” did not support EPA’s position. By amending the regulatory language on which the Tenth Circuit relied and codifying the interpretation approved by the Fifth Circuit, EPA has established a nationwide framework governing the interaction between NSR and Title V. NSR and Title V: EPA Establishes a Uniform Nationwide Framework At the core of the rule is EPA’s effort to define the respective roles of NSR and Title V. The rule codifies the approach EPA has applied since 2017: once a source obtains an NSR permit under an EPA-approved permitting program, and that permit was issued following public notice with an opportunity for comment and judicial review, the permit establishes the NSR-related “applicable requirements” of the State Implementation Plan (“SIP”) or Federal Implementation Plan (“FIP”) for Title V purposes. Under this framework, Title V is not a vehicle for re-examining underlying NSR permitting decisions. EPA does not intend to use the Title V process to revisit applicability determinations, emissions calculations, control technology determinations, permit conditions, or other issues resolved through the NSR permitting process. This principle applies regardless of the stage of the Title V proceeding; whether the NSR permit was issued pursuant to a SIP or FIP; the type of NSR issue involved; or whether the NSR permit is incorporated into Title V sequentially or concurrently. Limited Exceptions EPA recognizes several circumstances in which NSR issues may still be reviewed through the Title V program: No NSR permit was issued at all; The permit was issued without public notice and an opportunity for comment and judicial review; or The issue involves substantive overlap between Title V and NSR requirements, such as the adequacy of monitoring provisions. As a result, the rule does not insulate unpermitted projects or foreclose review of matters that independently arise under Title V. Key Regulatory Amendments The rule revises the definition of “applicable requirement” in 40 C.F.R. §§ 70.2 and 71.2. Paragraph (1): Where an NSR permit is issued with public notice and an opportunity for comment and judicial review, the permit establishes and defines the applicable SIP or FIP requirements for Title V purposes. Paragraph (2): All NSR permit terms, including terms contained in minor NSR permits, constitute applicable requirements that must be incorporated into Title V permits. Paragraph (4): CAA section 112(r)(1) (the General Duty Clause) is expressly excluded from the definition of “applicable requirement,” while section 112(r)(7) Risk Management Program requirements remain included. EPA also amended 40 C.F.R. §§ 70.8 and 70.12 to clarify that alleged defects in requirements established outside the Title V process generally do not provide a basis for EPA objection to a Title V permit or for a Title V citizen petition. General Duty Clause Exclusion The rule also codifies EPA’s longstanding position that the General Duty Clause in CAA section 112(r)(1) is not an “applicable requirement” for Title V purposes. EPA points to several considerations supporting that conclusion, including the distinction between the General Duty Clause and Title V permit terms, the provision’s origins in the Occupational Safety and Health Act’s general duty clause, and the different enforcement structures applicable to the General Duty Clause and Title V permit requirements. Importantly, excluding section 112(r)(1) from the definition of “applicable requirement” does not eliminate EPA’s authority to enforce the General Duty Clause independently of the Title V program. The final rule instead clarifies that the General Duty Clause need not—and should not—be incorporated into Title V permits as an applicable requirement. Practical Implications for Regulated Sources Greater Finality for NSR Permits  For projects requiring PSD, nonattainment NSR, or minor NSR permits, the permitting process becomes the primary forum for resolving disputes regarding applicability determinations, emissions calculations, control technology requirements, offsets, and permit conditions. Once an NSR permit is issued through a qualifying public process, regulated sources should face substantially reduced risk that those same issues will be challenged years later through Title V permit proceedings. Reduced Risk of Collateral Permit Challenges Stakeholders have sometimes sought to use Title V permit issuance, renewal, revision, or citizen-petition proceedings to challenge underlying NSR determinations. The final rule makes clear that Title V is not the appropriate vehicle for challenging whether an applicable requirement was correctly established in the first instance. This should reduce the risk of permit delays and uncertainty associated with collateral challenges to previously issued NSR permits. The rule does not, however, eliminate all Title V challenges relating to an NSR permit. Challenges concerning the Title V permit itself—including whether it appropriately incorporates applicable requirements or contains adequate compliance provisions—remain possible. Increased Importance of the Initial NSR Proceeding Because Title V generally will not provide a second opportunity to challenge the substantive validity of an NSR determination, the administrative record developed during the NSR process becomes increasingly important. Permit applicants should ensure that applicability analyses, emissions calculations, control technology evaluations, modeling demonstrations, and supporting technical documentation are thoroughly developed during the original permitting proceeding. For significant projects, applicants may therefore have an additional incentive to identify and resolve potential permitting issues before the NSR permit is issued rather than assuming that unresolved issues can be addressed during a subsequent Title V proceeding. Potential Incentive for Broader Public Participation EPA also notes that permitting authorities may choose to provide public notice and an opportunity for comment for a broader range of NSR permits because permits issued through a qualifying public process receive the benefit of the finality framework established by the rule. Some permitting authorities may conclude that greater public participation at the NSR stage is preferable to uncertainty during subsequent Title V proceedings. Conclusion The final rule is principally a permitting-certainty measure. For sources that obtain NSR permits through a public process, EPA has substantially limited the ability of third parties to revisit underlying NSR determinations through the Title V program. As a result, regulated entities should benefit from greater finality regarding key permitting decisions, reduced risk of collateral permit challenges, and increased certainty when planning and implementing capital projects.

Insights

The Supreme Court Update - October 8, 2026

On September 29, 2026, the Supreme Court granted certiorari in one case: Department of Homeland Security v. D.V.D., No. 26-426: This case concerns the Trump Administration’s “third-country removal” procedures, where immigrants are deported to countries not listed in the removal orders. In granting certiorari, the Court granted the Government’s application to stay a lower court decision halting the practice, which will allow third-country removals to continue pending resolution of the case. The issues presented are: (1) Whether the district court had jurisdiction over respondents’ claims; (2) whether the district court had authority to enter class-wide declaratory relief and APA vacatur under 8 U.S.C. § 1252(f)(1); (3) whether the Government’s guidance on third-country removals is unlawful under 8 U.S.C. § 1231(b), the due process clause, or FARRA/CAT and its implementing regulations; and (4) such other questions that the Government determines are appropriate for the proper disposition of the case. On October 1, 2026, the Court granted certiorari in three additional cases: Rhoney v. Barbosa da Cunha, No. 26-104: Immigration officials detained Ricardo Aparecido Barbosa da Cunha—a Brazilian citizen who had lived in the United States for approximately twenty years after entering without inspection—and denied him a bond hearing under 8 U.S.C. § 1225(b)(2)(A). The Second Circuit held that his detention was instead governed by § 1226(a), which permits release on bond, because § 1225(b)(2)(A)’s mandatory-detention requirement applies only to noncitizens apprehended while entering the country or shortly thereafter. The question presented is: Whether 8 U.S.C. § 1225(b)(2)(A) mandates the detention pending removal proceedings of aliens who, like Barbosa da Cunha, are present in the United States without having been admitted. Missionaries of St. John the Baptist, Inc. v. Frederic, No. 25-113: A Catholic religious organization sought to build a shrine to the Virgin Mary on land the organization owned adjacent to its church in Park Hills, Kentucky. Local zoning restrictions prohibited the proposed construction. The question presented is: Whether a land-use regulation that prohibits a religious institution from building a religious structure on its own property constitutes a “substantial burden” on religious exercise under the Substantial Burden Provision of the Religious Land Use and Institutionalized Persons Act, 42 U.S.C. § 2000cc(a). Marschner v. Marschner, No. 25-1349: Under the Uniformed Services Former Spouses’ Protection Act (“USFSPA”), a veteran’s longevity-based retirement pay can be divided in a divorce, but retirement pay based on disability and retirement pay that was waived to receive disability pay are indivisible. The question presented is: Does the USFSPA require state courts to refuse enforcement of indemnification provisions in a divorce settlement agreement?

Insights

SEC Proposes Expansion of Investment Adviser Performance-Based Compensation Rule

On September 30, 2026, the Securities and Exchange Commission (the “SEC”) proposed amendments to Rule 205-3 under the Investment Advisers Act of 1940, as amended (the “Advisers Act”), which provides an exemption from the general prohibition under Section 205(a)(1) of the Advisers Act on registered investment advisers receiving performance-based compensation (the “Proposal”) so long as performance-based compensation is limited to “qualified clients”.1 Most notably for private fund sponsors, the Proposal would expand the definition of “qualified client” to include any investors that satisfy the “accredited investor” definition under Regulation D. The Proposal may also have implications for private fund managers that rely on exemptions from investment adviser registration under state law because certain state-level investment adviser registration exemptions incorporate or otherwise reference the federal qualified client definition. Expansion of the Qualified Client Definition Under the current Rule 205-3, an investor generally may qualify as a qualified client if, among other alternatives, the investor has at least $1.4 million under management with the adviser or has a net worth exceeding $2.7 million. These thresholds are higher than the financial thresholds applicable to many accredited investors under Regulation D. As a result, an investor may currently qualify as an accredited investor for purposes of investing in a private offering without qualifying as a qualified client for purposes of paying performance-based compensation. The Proposal would expand the qualified client definition to include any natural person or legal entity investor that satisfies the accredited investor definition under Regulation D. The Proposal would also remove the assets under management and net worth thresholds under the current Rule 205-3 qualified client test. For private funds relying on Section 3(c)(1) of the Investment Company Act of 1940, this change could reduce the need to apply a separate qualified client standard to investors that already qualify as accredited investors. Dorsey Observations and Next Steps If adopted as proposed, the expanded qualified client definition could be particularly significant for private fund managers. Most private fund offerings are already limited to accredited investors under Regulation D. However, the Proposal could expand the pool of prospective investors available to emerging private fund managers while reducing the regulatory burden associated with complying with Rule 205-3. The Proposal could also benefit advisers operating below the SEC registration threshold that rely on a state private fund adviser exemption. A number of states have adopted exemptions modeled on the North American Securities Administrators Association (“NASAA”) private fund adviser exemption, which may condition relief for advisers to certain funds relying on Section 3(c)(1) on each beneficial owner satisfying the federal qualified client definition. However, state requirements vary, and any effect of the Proposal would depend on the text of the applicable state exemption and how it incorporates Rule 205-3. Many emerging private fund managers may have a larger network of accredited investor relationships than qualified client relationships during the early stages of their investment advisory business. Currently, under Rule 205-3, private fund managers may receive performance-based compensation from investors who do not satisfy the qualified client definition if those investors were admitted to their private funds prior to registration with the SEC. Following registration with the SEC, however, managers may continue to permit investors that are not qualified clients to invest in future private funds but may not receive performance-based compensation from those investors with respect to such investments. In addition, because the net worth and assets under management thresholds for qualified client status are adjusted for inflation every five years, the pool of qualified client investors may diminish over time as previously eligible investors no longer satisfy the applicable thresholds. The Proposal could provide the dual benefit of greater flexibility for private fund managers to establish and maintain relationships with accredited investors as their businesses scale and they become registered with the SEC, and greater flexibility for certain accredited investors to participate in investment strategies that historically have been restricted to much larger institutional investors. Unless and until the Proposal is adopted, investment advisers should continue to comply with the existing qualified client requirements. If the Proposal is adopted, private fund sponsors should consider whether corresponding changes are appropriate for their subscription documents, investor questionnaires, and other offering materials. Advisers that are state-registered or rely on a state-level exemption should also consult the laws and regulations of each relevant jurisdiction before changing investor eligibility standards or performance-based compensation practices, because adoption of the federal amendments may not automatically modify state requirements. Comments on the Proposal will be due 60 days after publication in the Federal Register. 1 Investment Adviser Performance-Based Compensation Modernization, Investment Advisers Act Release No. IA-7022 (Sept. 30, 2026), available at https://www.sec.gov/rules-regulations/2026/09/s7-2026-28#33-11443proposed.