Posts Tagged: "Copyright Office"

On October 22, the U.S. House of Representatives passed, by a vote of 410-6, the Copyright Alternative in Small-Claims Enforcement Act (the “CASE Act”). The Act proposes to set up what is in essence a voluntary administrative procedure conducted in the U.S. Copyright Office whereby artists and other copyright holders can protect their copyrights without the cost, expense and difficulty associated with filing a full-blown copyright infringement litigation in federal court. Based on the vote in the House, the CASE Act appears to enjoy widespread, bipartisan support in Congress—a rarity these days, to be sure. The appeal is simple: give individual artists and small companies an affordable mechanism to enforce their rights in their creative works. But although the political appeal of the CASE Act is obvious, the practical reality of the CASE Act is something entirely different. Indeed, there are three gaping holes in the CASE Act which may cause the small claims process it sets forth to have only very narrow appeal and to be an effective dispute resolution mechanism in only a narrow subset of cases.

This past week in Other Barks & Bites: the USPTO delays the effective date for mandating electronic trademark application submissions and issues a proposed rulemaking on Patent Term Adjustments in light of Supernus; UKIPO report shows that women inventors represent only 12.7 percent of inventors worldwide; trademark dispute leads street artist Banksy to open a retail store; the Federal Circuit upholds the invalidation of method of manufacture claims as being directed to a natural law over a dissent from Judge Moore; the screenwriter of The Terminator files a copyright termination notice; Tesla stock drops after missing analyst expectations on car sales; Seinfeld beats copyright case over Comedians in Cars Getting Coffee; and the Department of Justice tells the Supreme Court not to review Google’s appeal over the ability to copyright Java code.

This week in Other Barks & Bites: the Federal Circuit issued a precedential decision reversing the PTAB regarding proper primary reference and CBM review findings; USPTO Director Iancu told IPO Annual Meeting attendees that subject matter eligibility guidelines are working; an EPO-EUIPO report shows IP-intensive industries contribute nearly half of EU GDP; the producers of the Broadway musical Hamilton have filed a motion to dismiss copyright claims filed in connection with a museum exhibit; eBay CEO Devin Wenig stepped down; the Ninth Circuit heard oral arguments in the en banc rehearing of the “Stairway to Heaven” copyright case; the U.S. Copyright Office is seeking public comments regarding the blanket licensing structure under the Music Modernization Act; and Sandoz has moved forward with a PTAB challenge on patent claims covering AbbVie’s Imbruvica.

Copyright is one of the most important intellectual property rights for any individual in America. The power to grant protection of copyrights “by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries” is given to Congress in Article 1, Section 8 of the U.S. Constitution. As an author and computer programmer, I find that many of my colleagues misunderstand these rights and the protections that they afford. For this reason, I think it is important to clear up some misunderstandings in the recent IP Watchdog article, “A Question of Morals: The U.S. Approach to Plagiarism, ‘Moral Rights’, and Copyright Infringement” by Dave Davis.

On Tuesday, the Senate Judiciary Committee’s Subcommittee on Intellectual Property convened an oversight hearing of the U.S. Copyright Office featuring testimony from Karyn Temple, the Register of Copyrights and Director of the Copyright Office. Much of the hearing focused on the Office’s efforts to modernize its information technology infrastructure and business processes, although implementation of the recently passed Music Modernization Act (MMA) and new forms of digital piracy were also discussed.

Every single day, millions of Americans enjoy the benefits of a robust copyright system that has been responsibly guided and carefully enacted by the U.S. Congress over the past two centuries.  Indeed, only just recently, Congress updated the incredibly complex music provisions of the law, and we continue to have hearings on issues that show the deep regard of this Nation when it comes to incentivizing music, movies, books and art—works that speak to our values and progress as a Nation.  By its very design, the copyright law encourages artists big and small, ultimately fueling the public domain for ages to come. And copyright is an economic powerhouse. According to the International Intellectual Property Alliance (IIPA) 2018 report Copyright Industries in the U.S. Economy, copyright intensive industries contribute $1.3 trillion to the U.S. gross domestic product, representing almost 7% of the entire economy. These industries also employ close to 5.7 million American workers with an annual average salary of almost $100,000.  In a word, copyright is essential—both to American public life and the broader American innovation economy. Unfortunately, Congress has fallen behind in one crucial aspect of the copyright system: ensuring that the American people have a nimble, state-of-the-art, and efficient Copyright Office at their service.  

I have heard it said that a right without a remedy isn’t really a right. This saying completely and accurately sums up my experience with copyright infringement in the modern age. I am not an attorney, let alone a copyright lawyer. I am a small business owner whose livelihood is constantly affected by the lack of reasonable avenues for pursuing infringement of my work. For more than a decade, I have been making my living as a commercial photographer and filmmaker. During that time I have witnessed my works infringed online—an exceedingly easy thing to do in the digital age—but also in print. A most memorable example of this was finding my photo enlarged as the backdrop to a competitor’s trade show booth while my paying client was rightfully using the same artwork across the room at their own booth. An act like this is both unlawful and egregious. But the extraordinary costs of pursuing a copyright infringement suit in federal court prohibit me from seeking recourse this way without taking on the additional risk of bankruptcy.

Jenna Close is a freelance commercial photographer and owner of a small business that licenses still images and videos to both domestic and international clients. She and her partner work 60-80 hours a week booking work, shooting, billing, accounting, marketing, and continuing to develop and maintain their skills. Jenna’s images are widely infringed online. She’s found exact reproductions of her work on competitors’ websites, on websites falsely advertising that the photographs are free to use, and she’s even come across instances where companies have photoshopped their own products into her images. Despite the brazen misuse of her images that she frequently encounters, Jenna does not generally pursue claims against her infringers because it is too expensive and time consuming to do so. It’s just not worth the cost—even though she registers at least some of her images for copyright protection, and so would be entitled to statutory damages and attorneys’ fees with respect to those images in case of a court victory. Unfortunately, Jenna’s story is not unique. For countless individual artists and small businesses, combating the unauthorized use of their creative works online is a source of enduring frustration. The frequency and ease with which photographs, sound recordings, videos, and other works of authorship are shared on the Internet leaves those without significant time and resources little recourse when they encounter infringement. But now, after years of advocacy by creators like Jenna, new legislation promises long-overdue support for these marginalized groups in the ongoing fight against overwhelming infringement in the digital age.

On May 1, Representatives Hakeem Jeffries (D-NY) and Doug Collins (R-GA) officially reintroduced H.R. 2426, the Copyright Alternative in Small-Claims Enforcement (CASE) Act, into the U.S House of Representatives. The bill was originally introduced in 2017 during the 115th Congress but expired after committee review. Along with the House bill, S. 1273, the U.S. Senate version of the bill, has been introduced by another bipartisan group including Senators John Kennedy (R-LA), Thom Tillis (R-NC), Dick Durbin (D-IL) and Mazie Hirono (D-HI). The proposed legislation seeks to establish an alternative forum for resolving disputes involving small claims of copyright infringement. If passed, the CASE Act would create the Copyright Claims Board, which is served by three full-time officers and two full-time attorneys who are appointed by the Register of Copyrights. The Board would be able to render determinations on copyright infringement, declarations of non-infringement or claims for misrepresentation in association with claimed infringement, and would also be able to award damages up to $30,000 to aggrieved parties. The bulk of the bill’s language deals mainly with how the Board will operate as an alternative forum to U.S. district court, with final determinations ultimately reviewable by district court.

On October 11, the Orrin G. Hatch-Bob Goodlatte Music Modernization Act (MMA) was enacted into law after passing both the U.S. Senate and House of Representatives. The bill was drafted in order to modernize U.S. copyright law as it relates to the licensing of copyright protected music for use in digital streaming services such as Spotify or Apple Music. Such digital service providers (DSPs) may obtain a new kind of license created by the law, known as a blanket license, which covers the distribution of all musical works available for compulsory licensing. DSPs may then make these works available to consumers through covered activities, such as delivering digital phonorecords of musical works available in the form of a permanent download, a limited download or as an interactive stream.In short, the blanket license under the MMA allows Spotify and others to offer streaming music services without having to negotiate licenses with copyright-owning entities, including recording studios and songwriters. Instead, these streaming services would obtain a blanket license from the Mechanical Licensing Collective (MLC), another new feature of the MMA. The MLC is a non-profit entity responsible for administering blanket licenses to DSPs, collecting and distributing royalties, enabling copyright owners to claim ownership of musical works and administering a process by which royalties for works with unidentified owners are equitably distributed to known copyright owners. The statutory language of the MMA directs the Register of Copyrights to designate the membership of the MLC within 270 days of enactment of the law. Given the date on which the MMA was enacted, this would indicate that July 8 of this year is the deadline for Register of Copyrights Karyn Temple to designate the MLC that would start administering blanket licenses at the beginning of 2021. There are two groups that have proposed their own membership of the MLC to the Copyright Office: a coalition of major publishers from the music industry, including the National Music Publishers Association (NMPA), Songwriters of North America (SONA) and Nashville Songwriters Association International (NSAI); and the American Music Licensing Collective (AMLC), a collection of songwriters, musicians, tech developers and executives from smaller rights organizations and publishers within the music industry.

This week in other IP news, recently released data shows that worldwide revenues for music copyright exceeded $28 billion in 2017, up $2 billion over 2016; reports surface about the  “reverse patent trolling” issue in China; Google retains Williams & Connolly for Supreme Court battle with Oracle despite Shanmugam exit; the Copyright Office holds roundtable discussions on detecting online copyright infringement; Twitter takes down a tweet from President Donald Trump after a copyright complaint; “KINKEDIN” trademark for computer dating site successfully opposed in the UK by LinkedIn; EU antitrust regulators are petitioned to look into Nokia patent licensing practices; and loss of patent exclusivity leads to major job cuts at Gilead Sciences. 

This week in Other Barks & Bites: Karyn Temple is appointed Register of Copyrights; the International Trade Commission recommends excluding certain iPhone models for infringing Qualcomm patent claims; the EU approves new copyright rules which will affect online media platforms; Senators Tillis and Coons move forward with stakeholder discussions on a legislative fix to Section 101 of patent law; Peloton responds to copyright infringement suit by dropping online cycling classes; Amazon adds nearly 1,000 jobs in Austin, TX; the District of Delaware tosses out willful infringement claims against Intel; and Oracle files opposition asking Supreme Court to deny a petition for writ filed by Google.

On March 14, Senators Thom Tillis (R-NC) and Chris Coons (D-DE), respectively the Chairman and Ranking Member of the Senate Judiciary Committee’s Subcommittee on Intellectual Property, sent a letter addressed to Karyn Temple, Acting Register of Copyrights at the U.S. Copyright Office expressing concerns that Tillis and Coons share about the U.S. Supreme Court’s recent decision in Fourth Estate Public Benefit Corp. v. Wall-Street.com, LLC. As the letter from Sens. Tillis and Coons notes, it takes an average of about six months for the Copyright Office to fully process registration applications. Given that the Supreme Court has now ruled that these applications must be fully processed prior to the filing of a suit, Senators Tillis and Coons said the real impact of the Fourth Estate decision “will be the extended unlawful exploitation of a copyright owner’s intellectual property.”

On January 8th, the Supreme Court heard oral arguments in Fourth Estate Public Benefit Corporation v. Wall-Street.com [Case No. 17-571 (Jan. 8, 2019)] to settle a longstanding circuit split on the copyright registration prerequisite to a copyright infringement suit… The Justices gave little indication as to how convincing they found either party’s policy arguments. The first rule of statutory interpretation, however, is that if the plain meaning of the text is clear, the inquiry ends. Here, at least two of the Justices acknowledged that the term “registration” is flexible, so the issue may end up turning on how far outside the four corners of Section 411(a) the Court is willing to look to determine its meaning.

The U.S. Copyright Office recently published a Notice in the Federal Register regarding Title I of the Orrin G. Hatch – Bob Goodlatte Music Modernization Act (MMA). This section of the law created a new blanket licensing system that governs the licensed uses of musical works by digital music providers. In this recent notice, the Copyright Office is seeking input to identify entities which are appropriate for inclusion in the Mechanical Licensing Collective (MLC) that will manage the new blanket licensing system.