by Do promotional CDs sent by music recording companies to radio disc jockeys and music critics which contain labels restricting distribution of the CDs and purport to create a license agreement actually create a license agreement between the recording company and the recipient, thereby rendering inapplicable the “first sale” doctrine—an affirmative defense to copyright infringement that allows owners of copies of copyrighted works to resell those copies? In UMG Recordings, Inc. v. Augusto, No. 08-55998 (9th Cir. Jan. 4, 2011) (“UMG Recordings”), the Ninth Circuit answered in the negative. Continue Reading “First Sale” doctrine allows radio disc jockeys and music critics who are provided with promotional CDs to resell such CDs without infringing the copyright holder’s copyright in those CDs
Naked Licensing: Trademark Owners Beware
by Naked licensing is not as fun as the name suggests. Rather it can mark the end of a trademark owner’s exclusive right to their trademark. A trademark owner may grant a license to another to use the owner’s trademark. For example, following the San Francisco Giants’ World Series victory, the amount and type of products that featured the Giants trademark was mindboggling. Each of these products, if legally produced, would have obtained a license from the Giants to produce these goods. The consumer purchasing these goods and seeing the Giants’ trademark would have an idea as to the quality of the merchandise based on the trademark. Naked licensing occurs when the trademark owner fails to exercise adequate quality control over the licensee. This failure may result in the trademark ceasing to represent the quality of the product or service the consumer has come to expect. The Ninth Circuit stated that such licensing is “inherently deceptive and constitutes the abandonment of any rights to the trademark by the licensor.” Continue Reading Naked Licensing: Trademark Owners Beware
Affiliated Companies and Likelihood of Confusion
by Matt Massari
It may make business sense to put ownership of related trademarks in different subsidiaries. Under In re Wella A.G., 787 F.2d 1549, 229 USPQ 274 (Fed. Cir. 1986), one can generally register similar marks owned by affiliated companies, as long as it’s done properly under the requirements of the Trademark Act. Continue Reading Affiliated Companies and Likelihood of Confusion
Technicalities Surrounding Statutory Damages Under The Copyright Act Trigger Suit Against Law Firm Prosecuting Online Infringement Actions
By Scott Hervey
The motion picture industry’s battle against cyber piracy took an interesting twist when an individual who allegedly engaged in the illegal downloading of the movie Far Cry filed a lawsuit against the Copyright Group and the law firm that has filed numerous suits against thousands of alleged infringers. To date, the law firm, Dunlap, Grubb & Weaver has filed suit against 20,000 anonymous “Doe” defendants for illegal file trading copies of various motion pictures, including Hurt Locker and Far Cry. Once the firm determines a defendant’s true identity it then sends out a demand letter informing the individual that they have been identified as having illegally downloaded a motion picture and explaining that the plaintiff is entitled up to $30,000 in damages under the Copyright Act for each infringed work (and in cases where the plaintiff can prove that the infringement was intentional, up to $150,000 in damages.) The firm then offers the individual an early opportunity to settle for $2,500 before it is named as a defendant in the complaint. Continue Reading Technicalities Surrounding Statutory Damages Under The Copyright Act Trigger Suit Against Law Firm Prosecuting Online Infringement Actions
Naked Licensing and the Freecycle Case
By On November 24, 2010, the Ninth Circuit announced its decision in FreecycleSunnvale v. The Freecycle Network, a case involving the naked licensing defense to trademark infringement. FreecycleSunnyvale is a member group of The Freecycle Network, an organization devoted to facilitating recycling. The Freecycle Network was formed in March 2003 as an Arizona non-profit corporation dedicated to “free cycling,” which is “the practice of giving an unwanted item to a stranger so that it can continue to be used for its intended purpose rather than disposing of it.” The Freecycle Network maintains its own website and provides a directory of member groups as well as resources for volunteers to create new groups. It’s website also includes a section of etiquette guidelines for its member groups.Continue Reading Naked Licensing and the Freecycle Case