Posts Tagged: "Second Circuit Court of Appeals"

At this moment, there is a fellow riding a bus in London who will determine the fate of your secrets. To be more precise, he’s on the Clapham bus; but he has no name. In fact, he’s a fictional character originally imagined by 19th Century journalist Walter Bagehot, who thought that “public opinion” was best described as the “opinion of the bald-headed man at the back of the omnibus.” The idea was picked up by the English courts as a metaphor for the “reasonable person” standard that is applied in all sorts of cases, from criminal to personal injury to contract interpretation. It also has special application to trade secrets, which we’ll get to in a minute.

The U.S. Court of Appeals for the Second Circuit recently confirmed that street art is, in fact, protected by copyright law.  Castillo v. G&M Realty L.P (Feb. 2020). But you wouldn’t know that from looking at Instagram. In recent years, the social media explosion has transformed “aerosol art” from a nuisance to a promotional tool. What used to be painted over the next morning, can now garner attention for a location and lead to flocks of social media junkies posing for and posting pics, leaving local shop owners hoping the foot traffic will increase sales. Many shop owners have gone so far as to commission works on their facades precisely with this in mind. The easiest way to lure in the Instagram-generation to your store is to have something unique that they can post in the hopes of adding followers. For many of these Kardashian wannabes, the goal is to build their “brand” so they can get sponsorship deals and rake in free goods and cash. A new sub-economy is exploding but, not surprisingly, few stop to consider the legal implications.

This week in Other Barks & Bites: WIPO launches dispute resolution service for Chinese domain names; Morrison Foerster report shows that IP litigation costs are increasing as the number of IP matters being handled are decreasing; the Federal Circuit issues precedential decisions upholding claim construction findings at the ITC and overturning a district court jury verdict finding invalidity for being unsupported by record evidence; the Second Circuit clarifies when profits can be awarded in trademark cases; Uber IP transfer creates $6.1 billion tax break for the company; major football associations call for crackdown on Saudi piracy service; OPPO inks patent agreements with Intel and Ericsson; and Broadcom acquires Symantec’s enterprise security business.

On December 3rd, the U.S. Supreme Court denied a petition for writ of certiorari in TVEyes, Inc. v. Fox News Network, LLC, declining the opportunity to decide what would have been the Court’s first case on fair use in a copyright context in 20 years. Denying the petition, the Supreme Court declined to answer whether a transformative use of a copyrighted work causes a cognizable market harm under 17 U.S.C. § 107(4) if it is used in connection with a commercially successful business that the author is unlikely to enter or authorize.

The Court of Appeals for the Second Circuit recently issued a decision in Capitol Records, LLC v. ReDigi Inc. affirming a previous finding out of the Southern District of New York that ReDigi’s digital music file reselling platform infringed upon the plaintiffs’ copyright to the music files being resold. The Second Circuit panel upheld the lower court’s decision over ReDigi’s arguments that its platform enabled the lawful resale of digital music files under the first sale doctrine.

Christopher Gordon, under the pseudonym “Randall,” released the Honey Badger movie in 2011 and the 3:20-long video has been viewed more than 89 million times. Gordon filed trademark applications to cover the use of the video’s well-known phrase Honey Badger Don’t Care in various classes including audio books, greeting cards, mugs and clothing. In 2012, Gordon hired a licensing agent who contacted American Greetings, the parent company of co-defendant Papyrus-Recycled Greetings, to discuss a potential licensing deal but those parties never agreed to a deal. Beginning in June 2012, the defendants released a series of seven greeting cards, including birthday, Halloween and election cards, which made use of the trademarked phrase Honey Badger Don’t Care and another well-known phrase from the video, Honey Badger Don’t Give A S—.

On Monday, October 22nd, U.S. District Judge J. Paul Oetken of the Southern District of New York entered an opinion and order in a trademark case brought by Chinese e-commerce giant Alibaba against a group of companies operating in Dubai and Belarus involved in marketing a cryptocurrency known as AlibabaCoin. Judge Oetken’s order granted Alibaba’s motion enjoining the defendants from using Alibaba’s protected marks in the U.S., including in connection with goods and services provided over the Internet to U.S. consumers. Another motion filed by Alibaba to compel documents from the defendants was denied as moot.

The U.S. Court of Appeals for the Second Circuit recently issued a summary order in Latin American Music Company v. Spanish Broadcasting System affirming a lower court’s judgment denying copyright infringement claims brought by music publisher Latin American Music Co. (LAMCO) against radio station owner Spanish Broadcasting System (SBS). The Second Circuit determined that LAMCO’s arguments on appeal were without merit and upheld findings that its infringement claims were either time-barred or unprovable.

???In Montauk U.S.A. v. 148 South Emerson Associates the Second Circuit vacated-in-part an earlier ruling in a trademark case. In that ruling, the district court denied a motion for preliminary injunction filed by Montauk, which was asserting its trademark rights to marks associated with The Sloppy Tuna restaurant.

U.S. District Judge Alvin Hellerstein entered an opinion and order denying summary judgment in the Southern District of New York in a case involving the stage musical production of Anastasia currently running on Broadway. Judge Hellerstein denied the motion for summary judgement filed by defendants Anastasia LLC and Terrence McNally, the bookwriter for Anastasia, finding that there were material facts in dispute regarding claims that the Broadway musical was substantially similar to a play which was first registered with the U.S. Copyright Office back in 1948.

In 2011, ReDigi Inc. introduced technology that effectively attempted to establish a secondary market for “used” digital music files, where owners who had legally downloaded music files from iTunes could sell the music that they no longer wanted.  In a nutshell, the system allowed the owner of a digital file to transfer the music to ReDigi’s cloud storage locker, from which ReDigi could then sell it to a willing buyer for a lower price than the cost of an “original” purchase from the iTunes Store.  When a sale was made, Redigi would retain 60% of the sales price, while the seller and artist got 20% each. Although the process of transferring a file from an owner’s personal computer to ReDigi required that it be reproduced on ReDigi’s server, the system removed the file from the owner’s personal computer as the file was moved.  Capitol Records, the copyright owner of many music files sold over the ReDigi system, sued ReDigi for copyright infringement, alleging that the company reproduced and distributed its copyrighted works without permission.

Trademark injunctions must take into account both online promotion and future expansion plans. A narrowly-tailored geographically limited injunction can be particularly damaging to growing businesses if the business is forced to accept trademark confusion in the event of future expansion. The geographic scope of a trademark injunction should, therefore, carefully take into consideration the total services, activities, and growth plans of the successful plaintiff’s business endeavors.