by David Muradyan

 

When a creditor provides a loan to a debtor, the debtor will often grant to the creditor a security interest in the debtor’s collateral, including the debtor’s intellectual property. A creditor who receives a security interest in the debtor’s intellectual property, usually by a security agreement, must perfect the security interest so that subsequent purchasers and creditors are on notice of the creditor’s security interest in the collateral. Rules relating to the creation, attachment, perfection and priority of security interests in personal property, including “general intangibles” which include intellectual property, are governed by Division 9 (Secured Transactions) of the California Uniform Commercial Code (“Article 9”), unless federal law preempts Article 9. In order to determine where to perfect a security interest for each type of intellectual property, and since copyrights, trademarks, and patents are all governed by different statutes and case law, it is important to review and analyze not only Article 9 but also the Copyright Act of 1976, 17 U.S.C. § 101 et. seq. (the “Copyright Act”), the Lanham Trademark Act of 1946, 15 § 1051 et. seq. (the “Lanham Act”), and the Patent Act of 1952, 35 U.S.C. § 101 et. seq. (the “Patent Act”).

 Continue Reading How to Perfect a Security Interest in Intellectual Property (Copyrights, Trademarks and Patents)

by David Muradyan

A copyright is a form of protection afforded to owners of “original works of authorship” for the owner’s literary, musical, artistic and other works. Owners of copyrights have a number of exclusive rights, including the right to reproduce the copyrighted work in copies, to prepare derivative works based upon the work, and to distribute copies of the work to the public by sale or other transfer of ownership. One who uses another’s copyrighted material without permission from the copyright owner may be liable for copyright infringement, unless that person can demonstrate that the use was “fair use,” which is an affirmative defense to copyright infringement.  Continue Reading “Fair Use”: An Affirmative Defense to “Copyright Infringement”

By James Kachmar

On February 23, 2011, the Ninth Circuit issued its opinion in a case involving the Betty Boop cartoon character titled: Fleischer Studios, Inc. v. A.V.E.L.A., Inc., et al. In that case, heirs of the creator of the Betty Boop cartoon claimed that defendants, which were marketing products with Betty Boop’s image, were liable for copyright infringement. (The case also involved claims of trademark infringement which will not be discussed in this article.)Continue Reading Betty Boop and Chain of Title Issues

by James Kachmar

United Fabrics International, Inc. (“United Fabrics”) manufactures a collection of fabric designs titled “Ethnic Collection X” to which it holds a copyright. As part of that collection, United Fabrics purchased a fabric design from an Italian design house and then modified the purchase design. It then sued Macy’s (and several others) for infringing on its copyright by selling infringing fabric and garments. Macy’s moved for summary judgment and the court sua sponte dismissed the case claiming that United Fabrics did not have standing to pursue a copyright infringement claim. The court held that United Fabrics had failed to establish the crucial element of ownership of a valid copyright.Continue Reading United Fabrics v. Macys and the Presumption of Copyright Ownership

Over the last several years as I have interviewed clients, lectured students, and otherwise engaged in discussions relating to intellectual property, specifically copyrights, I have found that people have more misconceptions about copyright law than most other areas of law.  Although many of these misconceptions, or myths, have their origin in a kernel of truth, or are the reasonable conclusions of a logical mind, they are nonetheless misconceptions and operating under these incorrect beliefs can adversely affect a person’s legal rights.  Below are five of the most common myths.
Continue Reading Common Copyright Myths