Posts Tagged: "copyright law"

On Wednesday, March 22nd, the U.S. Supreme Court handed down a decision in a copyright case, which clarifies federal copyright law surrounding whether features incorporated into the design of a useful article are eligible for copyright protection. In a 6-2 decision, the Supreme Court held in Star Athletica, LLC v. Varsity Brands, Inc. that such features are eligible for copyright protection if they can be perceived as a work of art separate from the useful article and would qualify as an protectable work if imagined separately from the useful article.

The most active defendants in copyright lawsuits include department store chain Ross Stores, Inc. (NASDAQ:ROST), which was named as a defendant in 276 cases. Following Ross Stores are a series of retailers: TJX Companies, Inc. (NYSE:TJX), named a defendant in 123 cases; Amazon.com Inc. (NASDAQ:AMZN), a defendant in 84 cases; Burlington Coat Factory (NYSE:BURL), a defendant in 74 cases; and Rainbow USA Inc., a defendant in 66 cases. Except for Amazon, these are primarily off-price department stores offering brand name goods at discounted prices. Music publishers like Universal Music Group, Inc. (65 suits) and education publishers like Pearson Education, Inc. (NYSE:PSO) (50 suits) are also among the top defendants in copyright cases.

We know that not only are copyrights grounded in the constitution, but core copyright industries contribute approximately $1.2 trillion to the U.S. economy annually, and employ over 5.5 million American workers. At the same time, however, we are acutely aware that, unfortunately, copyright theft online is rampant, and the Digital Millennium Copyright Act (DMCA) has increasingly become ill equipped to address even flagrant, willful copyright infringement in the digital world. What we don’t know, however, is how President-Elect Trump and the Trump Administration will view copyright issues, and whether pro-creator copyright reforms will be on the President’s agenda come January 20, 2017. We can, however, make some educated guesses based on Trump’s entertainment industry ties, his potential Supreme Court nominees, and those he is surrounding himself with on his Transition Team and in a Trump Administration that is increasingly taking shape.

A recent report from French consulting firm PMP Conseil made waves in the media for indicating that public performance exemptions in U.S. copyright law, such as Section 110 exemptions, cost copyright owners $150 million each year in lost royalties, $44 million of which is attributable to U.S. copyright owners in Europe. On November 11th, this study was presented by the International Council of Creators of Music (CIAM) at it’s annual conference in London. CIAM maintains that the U.S. is one of two “more economically developed countries” that have an exemption in place for playing music in bars, restaurants and retail establishments by radio or television.

On Monday, September 12th, Sid Bernstein LLC, a company representing Bernstein who passed away in 2013, filed a lawsuit alleging copyright infringement on the use of the Shea Stadium footage in the recent documentary. The suit charges that Sid Bernstein is the sole owner of the Shea Stadium master tapes by virtue of being a producer of the concert event and the employer for hire of the Beatles. The infringement suit targets both Apple Corps, the multimedia corporation set up by members of the Beatles in 1968 and involved with producing the new documentary, and Subafilms Ltd. The case was filed in the U.S. District Court for the Southern District of New York (S.D.N.Y.).

The Supreme Court granted certiorari this term in Star Athletica, L.L.C. v. Varsity Brands, Inc., which considers whether typical designs on cheerleading uniforms can be copyrightable subject matter. The appeals court believed that the designs were appropriate, but my guess is that several Supreme Court justices reacted with skepticism, which is why they decided to take the appeal. Those engaged with product development eagerly await the decision in this case because there is significant judicial uncertainty about the application of copyrights to useful products, and in particular, with how to draw the line between artistic craftsmanship and industrial design. Unfortunately, this case raises rather narrow issues, and the Court will be able to resolve them while skirting the most difficult debates. Thus, I believe that those looking for hard-and-fast rules will ultimately feel no more satisfied than observers did after the Court’s decisions with patentable subject matter, such as in Bilski v. Kappos.

On Tuesday, August 9th, Ed Sheeran was named as a defendant in a copyright lawsuit filed by three heirs of American singer-songwriter Lee Townsend. Townsend, who passed away in 2003, was Marvin Gaye’s co-writer for his famous song “Let’s Get It On.” The suit, which also lists among the defendants Warner Music Group, Atlantic Records UK, Sony/ATV Music Publishing and Amy Wadge, Sheeran’s co-writer on “Thinking Out Loud,” alleges that the song “copied the heart” of “Let’s Get It On” and repeated copyright infringing melodic, harmonic and rhythmic compositions throughout the song. The case, Griffin et al v. Sheeran et al, has been filed in the U.S. District Court for the Southern District of New York (S.D.N.Y.).

An engaging image, be it a photograph or other graphic, can capture the reader’s attention and drive interest in an online post. Bloggers, especially, are well aware of the attention grabbing benefits of a great photograph or graphic. In striving to find just the right image, one may well not think twice about the apparent harmless use of a graphic poached from some obscure corner of the internet. Doing so, however, implicates a wide range of intellectual property rights governing the use of images.

This case concerns Star Athletica’s alleged infringement of Varsity Brands’ purported copyrights in the design of certain cheerleading uniforms. Under the Copyright Act, because clothing possesses an intrinsic utilitarian function (covering the body, providing warmth and protection from the elements, etc.), clothing designs historically have not been protected by copyright unless the claimed design is physically or conceptually separable from the garment’s utilitarian features. The district court found in favor of defendant Star Athletica, concluding that the design elements in Varsity Brands’ cheerleading uniforms were not separable from the uniform’s function. The Court of Appeals for the Sixth Circuit reversed, and in doing so, devised a new test for assessing the copyrightability of a design of a useful article.

Although the type of copyright infringement that gets the most attention today in our digital age is the downloading of music and/or movies, infringement of print and picture medium (such as photographs) is also punishable under the Copyright Act, and are a very real problem for publishers and photographers alike. Indeed, copyright infringement is an unfortunate reality for all content…

Just how much knowledge about piracy on its system does an online service provider need before it loses its safe harbor protection, which severely limits its potential liability for copyright infringement, under the Digital Millennium Copyright Act (DMCA)? In Capitol Records v. Vimeo, the Second Circuit sets the bar very high, further blurring one of most important lines in copyright law—the line between actual and red flag knowledge—and protecting a not-so-innocent service provider in the process. Worse still, the Second Circuit leaves copyright owners with little chance of a remedy in the face of rampant piracy, even against a service provider that welcomes the infringement.

In exercising this discretion the Supreme Court held that district courts should consider the objective reasonableness of the losing party’s position, but that the objective reasonableness was not the only factor, or even the predominant factor, for district courts to consider. Rather, the Supreme Court explained that district courts retain broad discretion to make an award even when the losing party advanced a reasonable claim or defense.

After nearly twenty years with the DMCA, the Copyright Office has launched a new study to examine the impact and effectiveness of this system, and voices on both sides of the debate have filed comments expressing their views. For the most part, frustrated copyright owners report that the DMCA has not successfully stemmed the tide of online infringement, which is completely unsurprising to anyone who spends a few minutes online searching for copyrighted works. Unfortunately, some commentators are also pushing for changes that that would make things even more difficult for copyright owners.

A patent is a proprietary right granted by the Federal government pursuant to laws passed by Congress. The Congressional power to authorize patents is found in Article I, Section 8, Clause 8, of the United States Constitution. exclusive rights are provided for a limited time as an incentive to inventors, entrepreneurs and corporations to engage in research and development, to spend the time, energy and capital resources necessary to create useful inventions; which will hopefully have a positive effect on society through the introduction of new products and processes of manufacture into the economy, including life saving treatments and cures. See Kewanee Oil Co. v. Bicron Corp., 416 U.S. 470, 480 (1974).

Earlier today the U.S. Department of Commerce issued a report titled White Paper on Remixes, First Sale, and Statutory Damages, which recommends amendments to U.S. copyright law that would provide more guidance and greater flexibility to courts in awarding statutory damages. However, the Task Force has found insufficient evidence to show that there is a change in circumstance in the markets or technology that requires action on amending the first sale doctrine.