Archive for November, 2011

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Danie Roy

At Tactical IP, we usually find our own subject matter to write on. Occasionally, someone will find something really exciting or current to write about and offer it to someone due to write an article soon (Scott in particular very good at this.  Thank you, Scott). Very, very occasionally, one of us will tweet something, which sparks a discussion, which leads to an article. This is one such article.

Recently, Mark tweeted about an article which claimed that copyright is unconstitutional. Of course, this led to a great pounding of heads upon desks and much gnashing of teeth at the office. We may not all be lawyers (I, for instance, am not a lawyer), but we all know that, not only are copyrights and patents explicitly constitutional, but that the argument made in the article is not particularly sound. So, when Mark suggested that I write a response article, I jumped on the opportunity.

Let’s start with the abridged version of the article in question (for those of us who can’t be bothered to click all the links). The author believes that the First Amendment negates the right of copyrights and patents to exist. The author also believes that infringement fines are disproportionately too high.

This is whatever the Supreme Court says it is.

Now, about the constitutionality of copyrights and patents: the U. S. Constitution, Article I, Section 8, states specifically that “[t]he Congress shall have Power…To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries.”  The First Amendment to the Constitution states that “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances.”

The issue here is the freedom of speech/press part of the First Amendment. The author argues that this clause automatically negates the rights to patents and copyrights. What the author doesn’t understand is that freedom of speech and the press is not absolute by any means. For instance, you can’t shout “fire” in a crowded theatre, and treasonous/seditious speech is never protected. Want a less dangerous but equally malicious example? Slander and libel aren’t protected, either. Freedom of speech and expression is limited by the “harm principle.” That is, if the speech/expression in question would cause harm to someone other than the speaker/expressor, the speech may and should be limited. To take away copyright and patent rights in the name of “free speech” could easily be argued to be harming the creators of that intellectual property they have worked hard to protect. Protection doesn’t come cheap or easy, either; the average patent costs more than my car, and not every application gets to mature into a patent.

The author also fails to understand that intellectual property is regarded as exactly that: property. By the author’s logic, I should be able to copy his article, post it here, and giving him credit is completely optional. Granted, I would never do this, because I actually understand the concept of intellectual property, but, if I did, the first thing the author would likely accuse me of is “stealing” his article. Now, correct me if I’m wrong, but isn’t it impossible to steal something that isn’t property, in other words, owned by some entity? If we eliminate copyrights and patents, are we also going to eliminate property ownership altogether?

The problem is that author is operating on a very flawed concept of intellectual property. He sees it merely as a method of expression rather than a true product. While intellectual property can be, and often is, a method of expression, it is also property. If you were the first person to string a set of words or ideas together that had some type of useful impact on the world, you should, at the very least, be credited for it. If it’s your trade, then you most certainly should get paid for it. Heck, even hobbyists can get paid to make what they love.

As for the penalty for infringement being too high, that is another discussion for another time. I feel that particular question is more a matter of opinion than a matter of the law itself.

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In the midst of the “sunrise period” before the .xxx domains open later this year schools have been registering .xxx domains at a steady clip. The schools claim this is a defensive measure, to prevent porn proprietors from libeling their good names. However, pursuant to Rule 34 (I ain’t talking ‘bout requests for production) I do not put it past universities that they may one day (today?) license or flat out use these domains to drum up money. To those who say that academia is above this sort of distasteful capitalism, I say, “college sports”. Universities are not above whoring out their students. Amateurism, anyone?

There has been quite a land run to register .xxx domains, but there are still many available options. A quick search reveals that, while universityofflorida.xxx is unavailable, floridagators.xxx is wide open! (Nyman – ohiostate.xxx isn’t open, but theohiostate.xxx is all yours! – thank you OSU alumni for inspiring me with your annoying emphasis on “The”).

As ably stated by Mark Malek in a previous article, it ain’t cheap to reserve and register a new domain trademark ($300-500), but there’s no question that the litigation it could take to wrestle your mark from an unscrupulous person would be in the thousands, perhaps in the tens of thousands of dollars. So, the universities, to whom $500 matters little, are doing their due diligence, whether as a defensive measure or a capital investment for a future business enterprise, and it’s not really fair to criticize them. The trademark system has seen far more egregious abuse.

So, what can we take with us as this newest, and raunchiest domain opens up? Who wins and who loses? Existing trademark holders, like colleges, have nothing to gain, so they can only stand to lose. Porn developers seem to be winners, but they have come out strongly opposed to the .xxx domain (they view it, perhaps accurately, as the ghetto-ization of the internet). The jury’s still out on them. Lawyers, like me, win in terms of more business opportunity, but only the shills are pleased when the legal system is abused. Most lawyers detest abuse of the system, and the .xxx domain cries out to be abused. Lawyers win a pyrrhic victory. The real winners here are the registrars, especially GoDaddy. They’ve convinced us that every domain needs to be cross-registered, even though Google usually knows the difference between legitimate sites and pretenders. This paranoia, engendered by the registrars, leads many to register names they wouldn’t necessarily care about, in the name of protecting their hard-earned trademark. The sad part is, I can’t advise against this! Its classic ounce of prevention, pound of cure rhetoric, but it amounts to insurance – and remember the axiom: buy as much as you can afford.

 

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By: Mark R. Malek

As is the case on many weekends, I spent this past weekend at the Disney Theme Parks.  Mostly in part because some dear friends were in town there with their kids, and we wanted to get together with them.  (On a side note, check out their webiste – they do a lot for kids with autism.)  We spent tome time at the Magic Kingdom on Friday, Hollywood Studios yesterday to see the Osborne Family Spectacle of Lights (if you have never seen it, put it on your bucket list – absolutely amazing) and today we rounded out the weekend with a quick trip to Animal Kingdom.  I really love Animal Kingdom, and the kids seem to have a great time there.  We are usually in and out after riding one or two rides, and spending time in Dino Land.

As usual, we had another great weekend at the happiest place on earth.  As we were leaving Animal Kingdom, however, my oldest son spotted the face painters, and decided that he wanted to have it done.  In six years, and countless birthday parties that always had face painting at them, he never once let someone get near his face.  When he told me he wanted to have face painting done, I knew right then and there that I didn’t care how much it cost, he was going to get his face painted up.  Parents who have had their kids’ faces painted up know the routine.  The kid switches back and forth about ten times trying to decide which face painting they want, and right before they sit down, they lock in their choice.  We had gone through a panda bear, a lion, a dinosaur, and right before he sat down, he picked Spider Man.  Well, not Spider Man, but “Webbed Hero.”

I’m not going to lie to you – it came out great.  He sat still and the face painter did a fantastic job in about 5 minutes.  I had a happy kid when it was all said and done.  Right when he picked it out, though, I was kind of shocked.  I always thought that Spiderman was a Universal thing – the theme park just down the road, right?  Then I remembered that Disney bought Marvel Entertainment just a couple of years ago (source), and that Spiderman was a Marvel Comic.  So if Disney has some rights to Spiderman, why not call him Spiderman, instead of “Webbed Hero?”

I guarantee the answer to that has something to do with why there is still a Spiderman Ride at Universal Studios (Disney’s biggest competitor in Orlando).  I suspect there has to be some sort of deal where Disney has licensed some use of Spiderman to Universal, and has reserved for itself some copyrights that would allow face painters to paint kids up as “Webbed Heros.”  Unfortunately, when they reserved the copyrights, they probably did not reserve any trademark rights, i.e., rights in the name, which is why they did not advertise a “Spiderman” face painting option.  I am not sure what the real deal is here, but it just struck me as weird as I was watching my son get his face painted.  Just some musings from my weekend.  Hope everyone had a great Thanksgiving Day weekend.

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By Rene Dial

Before Thanksgiving I overheard a conversation inquiring as to where to buy a free range turkey.  Since I am doing a series on certification marks and myself, have no idea I decided to do a little internet research.  We all know that just because there is a certification mark that does not mean that the mark is certifying what you believe the mark is certifying.  When I hear the words free range I think of the bird having plenty of room, roaming around the countryside, as the farmer throws grains and seeds on the ground for feed.

I stumbled upon the Audubon’s online magazine to an article titled “Peeling Back the Label” by Gretel H. Schueller.  The article discusses what labels to avoid and what labels are genuine.  There are a variety of labeling tricks that are used to make us think that we are buying healthy such as ““cage free,” “hormone free,” and “all natural” to “organic,” “fair trade,” and even “biodynamic.””

Here is a condensed version of the article.

USDA Organic is good.  The USDA system is separated into categories of organic  100%, 95%, and 70%.  At the highest level cows must have access to pasture 120 days of the year and when 100% of the products are organic the product can be classified as 100% organic and bear the USDA organic label.  If a product is 95% organic it may use the “Organic” certification mark.  If 70% of the product’s ingredients is organic the product may use the “Made with Organic” certification.

Another mark that seems to meet the criteria for free range and organic is Demeter Biodynamic.  “produced organically, without the use of synthetic pesticides, fertilizers, or animal by-products, it also prohibits the use of genetic engineering. It requires that 10 percent of a farm’s total land be set aside for fostering biodiversity and the humane treatment of animals.”  This is the first time I have ever heard of this certification.

The article then lists a number of marks under the “Buyer Beware” heading: Raised Without Antibiotics (no verification system in place), Natural (no true meaning), Free Range (no third party auditing and laxed regulation, may be outside but closely confined), United Egg Producers Certified (“falsely implies that the chickens have been treated humanely”), Grass Fed (make sure label states 100% grass fed, look for USDA Process Verified Shield).

False advertising labels are listed as Cruelty free, Cage free, Environmentally friendly, Nature’s friend, No chemicals, and Vegetarian fed.  These labels have no standards or definitions and may be used in any way a producer sees fit.

After reading Schueller’s article it solidified in my mind even more to do your research before committing to a brand that symbolizes what you believe.

Hope you had a great Thanksgiving and enjoy the rest of the holiday weekend!

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By: Mark R. Malek

Do you remember a few months ago, there was a story that came out that Abercrombie & Fitch announced that they would pay “The Situation” and the rest of “The Jersey Shore” cast to not wear their clothes?  That’s right.  Unlike most endorsements, where a company asks, for example, Michael Jordan, to wear their Nike shoes for an unbelievable amount of money, this was just the opposite.  Here, they were willing to pay money for the cast not to wear their clothes.  It appears that Abercrombie & Fitch did not like the image that “The Situation” portrays, and did not want that image associated with their clothing line.  Here was a story posted by ABC news.

Now the tides have turned.  The Situation is now suing Abercrombie & Fitch for trademark infringement.  Here’s a story posted about the trademark infringement suit filed by The Situation in Federal Court in Miami.  Apparently, Abercrombie & Fitch has been selling T-shirts and other paraphernalia with allegedly famous trademark slogans such as “GTL…You Know The Deal” and other slogans.

I have no idea what any of that means.  I have never seen the show – it’s not my thing.   I’m not making fun of the show, nor am I making fun of people that watch the show.  I’m sure it has to be a thing, because they are on tv, making a bunch more money than I am, and I’m sitting here writing about it!  God bless ‘em.  This case, however, is clearly retaliatory.  I’d be embarrassed too if some company came out and said something along the lines of “I really can’t stand you and I would actually pay you to stay away from me!”  Don’t get me wrong – if there are any clothing companies out there that want me to not wear their clothes, and are willing to pay me for it, please feel free to contact me.  I can guarantee that I’ll take you up on the offer.

As far as the trademark aspect of this case goes, it is entirely possible that The Situation has a legitimate case here.  If he does, indeed, own registered trademarks on these slogans, and if Abercrombie & Fitch has been printing merchandise bearing his trademarks (assuming that the trademarks are registered for use in connection with clothing) then there may be some trademark infringement liability here.  There are two sides to the story, and I will wait to hear what Abercrombie’s answer is to the allegations.

From a pure business perspective though, this does not make sense.  Do you think The Situation is going to wear their clothes any more?  No.  Do you think his fans are going to wear their clothes?  No.  Do you think that this case is going to net The Situation more than what Abercrombie was willing to pay him in the first place?  Probably not.  Who do you think is going to come out the winner in this case?  That’s right, you guessed it. The attorneys.  Everyone involved is charging someone by the hour and when this case eventually settles, which it will, the settlement amount will not even come close to approaching the amount of the attorney’s fees.  Clearly, this one is not about money – it’s about pride.  Please feel free to leave me some comments.  I am really curious what you all think about this case.


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