De minimis

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De minimis is a Latin expression meaning about minimal things, normally in the phrases de minimis non curat praetor or de minimis non curat lex, meaning that the law is not interested in trivial matters.[1]

In a more formal legal sense it means something that is unworthy of the law's attention.

In risk assessment it refers to a level of risk that is too small to be concerned with. Some refer to this as a "virtually safe" level.[2]

[edit] Examples of application of the de minimis rule

Courts will occasionally not uphold a copyright on modified public domain material if the changes are deemed to be "de minimis". For instance, a person who attempts to assert a copyright on a document in the public domain after merely correcting the spelling mistakes in the document would be denied as that person's contribution to the public domain text would be judged de minimis.[citation needed] Similarly, courts have dismissed copyright infringement cases on the grounds that the alleged infringer's use of the copyrighted work (such as sampling) was so insignificant as to be "de minimis".[3] However, this ruling, in Bridgeport Music, Inc. v. Dimension Films, was overturned on appeal and the appeals court explicitly declined to recognize a de minimis standard for sampling.

Under U.S. tax rules, the de minimis rule governs the treatment of small amounts of market discount. Under the rule, if a bond is purchased with a small amount of market discount (an amount less than 0.25% of the face value of a bond times the number of complete years between the bond’s acquisition date and its maturity date) the market discount is considered to be zero. If the market discount is less than the de minimis amount, the discount on the bond is generally treated as a capital gain upon disposition or redemption rather than as ordinary income.[4]

Under IRS guidelines, the de minimis rule can also apply to any benefit, property or service provided to an employee that has so little value that reporting for it would be unreasonable or administratively impracticable. Cash is not excludable, regardless of the amount. [5]

Under European Community Competition Law some agreements infringing Article 81(1) of the EC Treaty are considered to be "de minimis" and therefore accepted. Horizontal agreement, that is one between competitors, will usually be de minimis where the parties’ market share is 10% or less, and a vertical agreement, between undertakings operating at different levels of the market, where it is 15% or less. [6]

[edit] See also

[edit] References

  1. ^ Literally, "the law does not concern itself with trifles." Ehrich, Eugene, Amo, Amas, Amat and More, p. 100 (New York, Harper Row 1985). ISBN 0-06-27217-1.
  2. ^ National Library of Medicine Toxicology Glossary - Risk De minimis Retrieved on 14 July 2007
  3. ^ Free Expression Policy Project Trashing the Copyright Balance Retrieved on 20 July 2007
  4. ^ SIFMA - Investing in Bonds The de minimis rule Retrieved on 29 July 2007
  5. ^ Society for Human Resource Management De minimis rule Retrieved on 28 July 2007
  6. ^ Commission Notice on agreements of minor importance which do not appreciably restrict competition under Article 81(1) of the Treaty establishing the European Community (deminimis) (1)(2001/C 368/07)[1]