About bwheelock

Education J.D., Washington University in St. Louis B.S.E. in Mechanical Engineering, Duke University

Transformative Use or Infringement

In Cariou v. Prince, 714 F3d 694 [106 USPQ2d 1497] (2d Cir. 2013), the Second Circuit said that a use of a copyrighted work need not comment on the original artist or work, or on popular culture, in order to constitute “transformative” use that qualifies for fair-use defense.  All that is needed to qualify as a fair use, is that the new work alters the original with “new expression, meaning, or message.  Thus the Second Circuit reversed the district court judgment that Cariou’s photograph (left) was infringed by Prince’s “transformative” image (right).

Apparently intent on testing the lower limits of “transformation,” Richard Prince has continued with his appropriation style of artistry, and has been sued by two other photographers:

In Graham v. Prince et al, [1:15-cv-10160-SHS ] filed in the Southern District of New York on December 30, 2015, Graham complained about the reproduction of his photograph with a instragram-style border:

In Morris v. Prince et al., [2:16-cv-03924-RGK-PJW ] filed in the Central District of California on June 3, 2016, photograph Dennis Morris complained about the appropriation of a portrait he published in a book by Richard Prince:

In Salazar v. Prince et al., [2:16-cv-04282-MWF-FFM] filed in the Central District of California on June 15, 2016, model/makeup artist Ashley Salazar complained about the appropriation of a selfie she posted on instagram by Richard Prince:

In McNatt v. Prince et al, [1:16-cv-08896-SHS] filed in the Southern District of New York on November 16, 2016, McNatt complained about the reproduction of his photograph with a instragram-style border:

It hard to imagine that using almost an entire image and “framing” it with a few comments and graphics is “transformative,”  and we will have to wait to see what the courts say.  The Morris and Salazar cases have been dismissed by stipulation, the Graham and McNatt are still pending.

One wonders what upsets these plaintiff’s more, the fact that virtually their entire work is appropriated by someone, or the fact that that someone sells these “transformations” for as much as $100,000!

 

“Begun, the Clone War Has”

Hot on the “heels” of the Supreme Court’s decision in Star Athletica, LLC v. Varsity Brands, Inc., (2:17-cv-02523PUMA SE has sued Forever 21 in the Central District of California (or among other things, copyright infringement in making a product simulating  Puma’s CREEPER, FUR SLIDE, and BOW SLIDE sneakers.

Puma asserts its U.S. Patent No. D774,288 on the CREEPER sneaker:

Puma also asserts its trade dress rights in the CREEPER, as well as in the FUR SLIDE:

and the BOW SLIDE:

And last but not least, citing Start Athletica, Puma asserts copyrights in all three styles:

The asserted expansion of copyright protection to such such designs seems to be the exact thing that Justice Breyer was concerned about in his dissent in Star Athletica.  Are fuzzy flip flops really something worthy of a century or more of protection? Should competitors have to risk substantial awards of statutory damages and attorneys fees, as well as possible criminal penalties to satisfy consumer demand for a product.  As Justice Breyer said (quoting Thomas Jefferson), sometimes costs can outweigh the benefit even of limited monopoly.  Or, more ominously, as Yoda once said, “Begun, the clone wars has.”

 

 

 

 

Soft Kitty, Warm Kitty, Little Furry Plaintiff . . .

In Chase v. Warner Bros. Enetertainment, Inc., 1:15-cv-10063-NRB (March 27, 2017), Judge Buchwald of the Southern District of New York, granted Warner Bros. motion to dismiss a copyright infringement suit brought by the daughters and heirs of  Edith Newlin, author of the lyrics to Warm Kitty.  Plaintiff’s charged that the song Soft Kitty, popularized by The Big Bang Theory, infringed the copyright in Warm Kitty.

Unfortunately for plaintiff’s they could not prove ownership of the copyright.  While the song was published in an song book that was copyrighted, and the copyright in the collection was renewed, neither the author nor her successors renewed the copyright in the individual song, so their rights lapsed.

Plaintiffs were the victims of the complexities of the 1909 Copyright Act, which are still being felt more than 100 years later.  At least they have a nice, public domain song to comfort them.

Two Bits, Four Bits, Six Bits, a Dollar, Cheer Uniforms are Copyrightable, Stand Up and Holler!

In Star Athletica, LLC v. Varsity Brands, Inc., (March 22, 2017), the Supreme Court affirmed the Sixth Circuit that the two dimensional designs appearing on the surface of Varsity’s cheerleader uniforms were copyrightable.

The Supreme Court granted certiorari to resolve widespread disagreement over the proper test for implementing 17 USC §101’s separate-identification and independent-existence requirements.  The Court held that a feature incorporated into the design of a useful article like an article of clothing is eligible for copyright protection only if the feature (1) can be perceived as a two- or three-dimensional work of art separate from the useful article and (2) would qualify as a protectable pictorial, graphic, or sculptural work—either on its own or fixed in some other tangible medium of expression—if it were imagined separately from the useful article into which it is incorporated.

The Supreme Court noted that the Copyright Act establishes a special rule for copyrighting a pictorial, graphic, or sculptural work incorporated into a “useful article,” which is defined as “an article having an intrinsic utilitarian function that is not merely to portray the appearance of the article or to convey information.”  The design of a useful article is considered a pictorial, graphical, or sculptural work only if, and only to the extent that, such design incorporates pictorial, graphic, or sculptural features that can be identified separately from, and are capable of existing independently of, the utilitarian aspects of the article.”

The Supreme Court said that this so-called separability test applied to the designs at issue because they were incorporated into the design of a useful article.  Applying the separability test the Supreme Court said that the first requirement — that the design can be identified separately from the utilitarian article — is not onerous one need only be able to look at the useful article and spot some two- or three-dimensional element that appears to have pictorial, graphic,or sculptural qualities.

The Court said that second requirement — capable of existing independently of the utilitarian article — is more difficult to satisfy; the decision maker must determine that the separately identified feature has the capacity to exist apart from the utilitarian aspects of the article.  In other words, the feature must be able to exist as its own pictorial, graphic, or sculptural work as defined in §101 once it is imagined apart from the useful article.  This means the feature cannot itself be a useful article or an article that is normally a part of a useful article.

In the view of the Court, the ultimate separability question, then, is whether the feature for which copyright protection is claimed would have been eligible for copyright protection as a pictorial, graphic, or sculptural work had it originally been fixed in some tangible medium other than a useful article before being applied to a useful article.

The Court said that applying the separability test to the surface decorations on Varsity’s cheerleading uniforms is straightforward. First, one can identify the decorations as features having pictorial, graphic, or sculptural qualities. Second, if the arrangement of colors, shapes, stripes, and chevrons on the surface of the cheerleading uniforms were separated from the uniform and applied in another medium—for example, on a painter’s canvas—they would qualify as two-dimensional works of art.

The Court cautioned that the only feature of the cheerleading uniform eligible for a copyright in this case is the two-dimensional work of art fixed in the tangible medium of the uniform fabric. The Court said that even if Varsity ultimately succeed in establishing a valid copyright in the surface decorations at issue here, it had no right to prohibit any person from manufacturing a cheerleading uniform of identical shape, cut, and dimensions to the ones on which the decorations in this case appear. They may prohibit only the reproduction of the surface designs in any tangible medium of expression—a uniform or otherwise.

 

All Trade Secrets Must Be Secret; But Not All Secrets are Trade Secrets

A pair of recent illustrate two important interrelated points about trade secret law: First, all trade secrets must be secret. Second, and less obvious, not all secrets are trade secrets.

In Hawg Tools, LLC v. Newsco International Energy Services, Inc., [2016COA176M] (Colo. App. December 1, 2016), the Colorado Court of Appeals reversed the trial court award of $1.3 million for misappropriation of trade secrets relating to sealed bearing packs for mud motors used in drilling, because “the evidence
did not prove that the design of the sealed bearing pack in question was a secret.”

As the Colorado Court of Appeals noted, the subject of a trade secret must be secret, and must not be of public knowledge or of a general knowledge in the trade or business.  While the jury found, at least implicitly, that the sealed bearing pack design was secret, the Court of Appeals review of the record revealed that no reasonable person would conclude that any evidence, or any reasonable inference arising therefrom, was presented on which the jury’s verdict against defendants could be sustained.

The Court found ample evidence to establish that the two desings were essentially the same, but it did not find sufficient evidence to distinguish plaintiff’s design its from other designs that were publicly available at the same time. In other words, the evidence in the record showed that the design of plaintiff’s sealed bearing pack was “of public knowledge or of a general knowledge” in the mud motor manufacturing business.

The $1.3 million verdict could not be sustained because the trade secret was not in fact a secret.

Part II of the less comes from the jury verdict in in Zenimax Media Inc. v. Oculus VR LLC, in the Northern District of Texas.  There, the jury rejected plaintiff’s trade secret misappropriation claims:

However, on the breach of the non-disclosure agreement, the jury found for plaintiff:

The jury found that Oculus as a successor to the agreement, and responsible for damages for its breach, and awarded $200,000,000.00 in damages:

One cannot and should rely exclusively on trade secret protection under state, and now federal law — not all secrets are trade secrets, i.e., not all secrets meet the definition of trade secret under state and federal law.  However, these “non-trade secret” secrets can have substantial value.  A good non-disclosure agreement remains an essential business tool.

It’s a Grand Old Flag, but Should it Be in Your Ad?

United States Statutes purport to restrict the use made of the American flag.

4 USC § 8 – Respect for Flag

No disrespect should be shown to the flag of the United States of America; the flag should not be dipped to any person or thing. Regimental colors, State flags, and organization or institutional flags are to be dipped as a mark of honor.

(a)   The flag should never be displayed with the union down, except as a signal of dire distress in instances of extreme danger to life or property.

(b)   The flag should never touch anything beneath it, such as the ground, the floor, water, or merchandise.

(c)   The flag should never be carried flat or horizontally, but always aloft and free.

(d)   The flag should never be used as wearing apparel, bedding, or drapery. It should never be festooned, drawn back, nor up, in folds, but always allowed to fall free. Bunting of blue, white, and red, always arranged with the blue above, the white in the middle, and the red below, should be used for covering a speaker’s desk, draping the front of the platform, and for decoration in general.

(e)   The flag should never be fastened, displayed, used, or stored in such a manner as to permit it to be easily torn, soiled, or damaged in any way.

(f)   The flag should never be used as a covering for a ceiling.

(g)   The flag should never have placed upon it, nor on any part of it, nor attached to it any mark, insignia, letter, word, figure, design, picture, or drawing of any nature.

(h)   The flag should never be used as a receptacle for receiving, holding, carrying, or delivering anything.

(i)   The flag should never be used for advertising purposes in any manner whatsoever. It should not be embroidered on such articles as cushions or handkerchiefs and the like, printed or otherwise impressed on paper napkins or boxes or anything that is designed for temporary use and discard. Advertising signs should not be fastened to a staff or halyard from which the flag is flown.

(j)   No part of the flag should ever be used as a costume or athletic uniform. However, a flag patch may be affixed to the uniform of military personnel, firemen, policemen, and members of patriotic organizations. The flag represents a living country and is itself considered a living thing. Therefore, the lapel flag pin being a replica, should be worn on the left lapel near the heart.

(k)   The flag, when it is in such condition that it is no longer a fitting emblem for display, should be destroyed in a dignified way, preferably by burning.

A Senate Report from 2008 provides an excellent summary of federal statutes and regulations.  However, there is no penalty for violation of the statute.  There are corresponding restrictions on the use of the American flag in the statutes of several of the states, some of which includes penalties. While these statutes are still on the books, they are of questionable enforceability, and one does not have to look very far to find the flag used on clothing (compare 4 USC § 8(d)), on costumes and uniforms (compare 4 USC § 8(j));  and in advertising (compare 4 USC § 8(i)).  The collection of U.S. Patents has several of these examples:

D771519

D771,519 American Flag Ball

D696493

D696,493 American Flag Novelty Headwear

D651538

D651,538 American Flag with Three Dimensional Stars

D585775

 

 

 

 

D585,775 Scoreboard in the Form of an American Flag

D549032

D549,032 American Flag Style Cover for Barbecue or the Like

D516730

D516,730 American Flag Bandage

D515628

D515,628 American Flag Duct Tape

D507843

D507,843 American Flag Lantern

D487180

D487,180 American Flag Pole Cover

D482144

D482,144 American Flag Colored Light Bulb

D463998

D463,998 Lighted American Flag

D459860

D459,860 American Flag Hat

Getting a Copyright Registration in Advance Not Only Speeds Enforcement, but it Improves Your Remedies

On January 23, 2017. Forever 21, Inc. sued C Luce, Inc., and Cornerstone Apparel, Inc. for copyright pantsinfringement, selling copies of Forever 21’s Ikat Harem Patent.  Nothing remarkable in the story so far, but was is remarkable that Forever 21 had the foresight to register the copyright in their Ikat pattern back in 2013.  Having a registration is usually a prerequisite to bringing an infringement action.  Furthermore, if the registration is obtained within five years of first publication, the certificate of a registration is prima facie evidence of the validity of the copyright and of the facts stated in the certificate. 17 U.S.C. §410(c).  Finally if the registrations is obtained before the infringement begins, a  prevailing copyright owner has access to an award of statutory damages and attorneys fees.  17 U.S.C. §412.

See Forever 21, Inc. v. C Luce, Civil Action No. 2:17-cv-0553 (C.D.Cal. 2017).

District Court held that Copyright Law Protects Standards that Have Been Incorporated into Federal Regulations

ASTM et al. v. Public Resource, Civil Action No. 13-cv-1215 (D.D.C Feb. 2, 2017) involved 257 of ASTM’s standards and the 1999 AERA standards that have been incorporated by reference into federal law.  Public Resource posted these standards on the internet.  ASTM sued for copyright and trademark infringement, and Public Resource counterclaimed for a declaration that its conduct did not violate copyright law or trademark law. The parties cross-moved for summary judgment.

At the heart of Public Resources Defendant’s defense is the argument that Plaintiffs’ standards lost their copyright protections the instant they were incorporated by reference into federal regulations.  The district court found that Congress has already passed on the question of revoking copyright protection for standards that have been incorporated by reference into regulations, and any further consideration of the issue must be left to Congress for amendment.  Specifically, the court looked to Section 105 of the Copyright Act, which states that “[c]opyright protection under this title is not available for any work of the United States Government.”  Section 101 defined a work of the United States Government as “a work prepared by an officer or employee of the United States Government as part of that person’s official duties.” The court concluded that:

These are the only government-related works that outright lack copyright under the law. For other types of works, such as those commissioned by the government or created under government contract by private parties, Congress chose to make case-by-case decisions and leave the determination of whether private copyright should exist to the federal agency that commissioned or contracted for the work.

Significant to the court was the fact that Congress was aware of the practice of incorporating standards by reference into regulations when it passed the current copyright law, but  made no mention of these incorporated works.  Moreover, the court noted that Congress has determined that online access to the nation’s laws and regulations need not be provided for no cost.

The court concluded that the situation invoves policy balancing that Congress is presumed to have already engaged in, and any further changes to the law in light of new technological developments and resulting changes in public expectations of access to information are best addressed by Congress, rather than this court.

Public Resource also raised due process requirements of access the text of “the law,” including the standards at issue here. The court noted taht four Circuit Courts have considered similar arguments regarding copyrighted works incorporated by reference into state and federal regulations.  The First, Second, Fifth, and Ninth each dealt with similar issues, with mixed results.  The court found that the ASTM standards have not entered the public domain upon their incorporation by reference into federal regulations and do not lose their copyright protection.

Scams, The Biggest Threat to Patent and Trademark Owners

After threading the tortuous path through the Patent and Trademark Office, and withstanding assaults of infringers, who would have thought that one of the biggest problems for patent and trademark owners is scammers.  These scammers send official looking documents with data downloaded from the Patent and Trademark Office requesting payment for various unnecessary services, such as inclusion in a directory, or sometime for no service at all.

The USPTO has created a webpage, but it is largely forgotten by the time the solicitation is received.  The Director’s Blog recently reported that the Department of Justice obtained guilty pleas from two California men in a mass-mailing scam that targeted owners of U.S. trademark applications, stealing approximately $1.66 million from registrants and applicants of U.S. trademarks through companies called Trademark Compliance Center (TCC) and Trademark Compliance Office (TCO).

While these efforts are encouraging, it is still up to ip owners to protect themselves.  Critically evaluate any invoice you receive; as a general rule if its not from your IP counsel it is a solicitation that should be ignored.  In particular be on the look out for correspondence from:

  • Patent & Trademark Resource Center (Seattle & Woodinville, WA)
  • Patent and Trademark Organization (New York, NY)
  • Trademark Office Ltd. (New York, NY)
  • U.S. Trademark Compliance Office (Wilmington, DE)
  • Patent & Trademark Bureau (Philadelphia, PA)
  • Patent & Trademark Office (555 Madison Ave., New York, NY)
  • Patent & Trademark Office (299 Park Ave., New York, NY)
  • Patent & Trademark Agency (New York, NY)
  • Trademark and Patent Office (Los Angeles, CA)
  • P.T.M.A. Patent and Trademark Association (New York, NY) NEW

ipti-scamptb-scampt-scam

wpt-scam

When Imitation Goes Beyond Flattery

In a lawsuit filed in the Eastern District of Missouri today, Energizer Brands complained about Spectrum Brands’ “imitation” of its packaging, raising claims of trade dress infringement, false designation of origin, unfair competition,  federal trademark infringement, federal trademark dilution, injury to business reputation, trademark and trade dress infringement, dilution, and unfair competition under state law, and . . . copyright infringement.

Trade dress cases are not unusual, but Energizer had the foresight to seek copyright registrations on some of its packaging:

energizer_i

 

 

 

 

 

 

 

 

 

 

energizer_ii

 

 

 

 

 

 

 

 

 

 

 

 

These copyright registrations give Energizer an additional path to victory, as well as enhanced remedies if it gets there.  A likelihood of confusion is a requirement for most infringement and unfair competition claims, and the prominent display of a trademark might make it hard to show the confusion is likely.

raovac-energizer

 

However, the availability of a copyright claim means that the trade dress owner doesn’t have to establish a likelihood of confusion, merely copying, something that can be shown from the similarity of the packages.

Regardless of whether Energizer is ultimately successful in its lawsuit, today’s filing demonstrates the value of copyrighting packaging and marketing materials.