MediaTech Law

By MIRSKY & COMPANY, PLLC

Trademarks: Why Necessary to Police Infringement of Your Marks

A little-appreciated requirement for trademark owners is a duty to monitor and police their trademarks.  This duty applies to owners of unregistered trademarks as much as federal registered marks, since registration is not necessary to claim many trademark rights.

What types of activities must be monitored and policed?  Infringement and dilution.  Or in other words, any third party uses of the same trademark or confusingly similar versions that might cause confusion in the marketplace about the source of the goods or services represented by the trademark.

Trademark Duty to Monitor and Police

2 basic reasons to monitor and police: First, the government won’t do it for you.  The Trademark Office is actually quite explicit about stating this, see here.  Second and more to the point, unchallenged third party uses of a trademark could legally – and actually – weaken the strength of the trademark as an identifier of the owner’s goods or services, which in turn weakens the owner’s ability to later enforce the trademark and devalues the worth of the mark.

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The “Socialprise” Law Firm

I’ve set a monthly goal for November of taking tangible steps to make my company a “Socialprise” law firm.  What does that mean?

Let me take inspiration from Dell Computers: “This is not about campaigns or initiatives,” said Richard Binhammer, senior manager, outreach communications and executive initiatives, social media and community, Dell. “It’s about adopting social media as a way to do better business.”  Binhammer was quoted this week in Geoff Livingston’s blog spotlighting Dell’s social media efforts.

Livingston lauds Dell’s early efforts (in the bygone days of 2006 and 2007) as an early and enthusiastic adopter of social media as a customer service tool.  

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Trademark: When NOT desirable to register a trademark?

(Thanks to Neal Seth of Baker Hostetler and Michael Steger of Law Offices of Michael Steger for input on this question.)

“Can I register a trademark for my brand?”  That’s typically the first question asked of a trademark lawyer.  The second question – not always asked – might be “Why would I want to?”  Or rather, is it really advisable?

There is little downside to filing a trademark registration, unless you consider cost and time of little worth.  That aside, there may be little or no business benefit from doing so.

Take for example, a professional services business using the names of the partners, say a law firm or accounting firm.  That’s not to say that Richard Sears and Alvah Roebuck had no value in their names and wouldn’t have benefited from trademark protection, but only later when “Sears Roebuck” long-survived and became distinct from the original proprietors.  Until then, there was nothing to stop Ralph Sears and Bob Roebuck from partnering in accounting under the same name, and trademark protection for the mail-order business wouldn’t have stopped the CPAs from doing so.

A trademark may have little value to the business.  A retail business operating in one or few local locations only has nothing to gain from trademark protection, since out-of-town challengers to its name pose no threat to its business.

Similarly, generic or descriptive company names cannot even be registered under trademark in the first place, or at best only under the trademark office’s supplemental register (rather than the Principal Register), with its very limited protection.  An example might be “New York Trucking Company”.  (For a nice comparison of the Supplemental and Principal Registers, see here.

Another example is a case where you might be able to register the mark, but you have no real intent or interest in enforcing.  As Neal Seth pointed out, “You don’t need to register if you are not going to enforce it.  In other words, you might not care if somebody else uses the mark.”  It begs the question of what value you would get in the registration – and why spend the time and money to register – if you’re not going to enforce.

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Actual Halloween Story: Trademark “Field of Screams”?

Yes, possibly the most important lawsuit since the sad case of the hamburger joint sued by the Washington white shoe law firm, playing now at a theater on Connecticut Avenue.

Well, maybe the most important lawsuit in trademark’s hoary world.

“Field of Screams” – Maryland version – is the annual Halloween fundraiser put on by the Olney (Md.) Boys and Girls Community Sports Association.  “Field of Screams” – Pennsylvania version – aka Field of Screams LLC, filed suit for trademark infringement in Maryland federal court, claiming exclusive trademark rights to the name, if not in the entire United States at least in the mid-Atlantic region.  Our intrepid blogger recently came upon the seminal legal development while perusing the Metro section in the Washington Post.  Legal filings in the case can be found through the Federal court system’s PACER service, here.

Pennsylvania’s trademark claim rests on its pre-dating the Maryland spookfest, and claims of consumer confusion as to source – the “likelihood of confusion” test for trademark infringement.  Indeed, Pennsylvania horror proprietor Jim Schopf told the Post of numerous instances of tickets purchased through his operation’s website by Halloween revelers thinking they had locked in dates at the Maryland “Field”.

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FTC Blogger Rules: Why Not Disclose Advertising?

FTC enforcement of its new blogger guidelines has involved typically high-profile actions against Anne Taylor LOFT (FTC ultimately taking no action) and Reverb Communications (for allegedly deceptive postings of positive reviews on iTunes for games produced by Reverb clients).

While premature to draw any broad conclusions on the enforcement environment for the new rules, a philosophical problem with the FTC’s new blogger framework is its willful ignorance of the advertising underpinnings of traditional media.

So, for example, while established newspapers like the New York Times and Washington Post depend for their credibility on perceived soundness of the journalistic “church-state” divide, readers are almost never proactively alerted to major advertising support from common story subjects in business and politics.  Disclosure more typically comes from investment or ownership relationships, in the form of “full disclosure” statements like that from Ezra Klein when reporting about Facebook (“Disclosure: Washington Post Co. Chairman Donald E. Graham is on Facebook’s board, and The Post markets itself on Facebook.”).  Not, though, from advertising relationships, even major advertisers.

At least not with newspapers.  PBS’ Newshour, NPR and other public news broadcasts commonly disclose underwriting relationships involving story subjects.  However, the same cannot be said of commercial television news broadcasts unless they involve investment or ownership relationships.

Since the underwriting structure of public broadcasting is substantively no different than the advertising relationships of newspapers, commercial television and most media websites, editorial disclosure of the financial support – of any kind – of such media outlets seems equally appropriate.

Citizen Media Law Project, in its coverage of Anne Taylor action, notes that the FTC guidelines limit disclosure to cases where the sponsorship relationship is not “reasonably expected by the audience”.

Put in the context of audience reasonable expectation, this seems rather generously written for the benefit of old-line media, which has relied for generations on the presumption of credibility by its readership much more so than disclosure.

Why then, shouldn’t bloggers be afforded the same benefit of the doubt that newspaper publishers have been given for generations?  Yes, there will always be egregious cases of paid-for “earned media” such as the Reverb case with iTunes.  But it used to be that time and dedicated readership was the ultimate arbiter of media influence.

This all begs the question of why the expectation of the relationship – rather than actual influence – is the measuring stick.

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Software License vs. Sale: Copyright’s “First Sale”

An interesting case comes out of the West earlier this month under Copyright law’s “first sale” doctrine, involving computer software under a license agreement.

Copyright’s “first sale” doctrine

The “first sale” doctrine involves this concept: If you buy a copyrighted work (say, a painting, or a book, or – as in this case – software – you have an unqualified right to transfer your copy of that work to anybody as you please.  That doesn’t mean you can make additional copies and sell those too, but generally it does mean that you are free to resell something that you purchase.  (As will be discussed below, the operative term is “purchased”.)

The doctrine was first recognized by the Supreme Court in a 1908 case, and later codified by Congress into the Copyright Act in the 1976 amendments to the Act.

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Privacy Policies – Legal Significance? Enforceable?

What is the legal significance of a website’s privacy policy?

That question lingers when reviewing such policies for legal compliance and for consistency with a company’s actual practices.  Problem is, lawsuits involving claims of breaches of privacy policies have failed even in cases of clear and egregious violations by the service provider, where there was an absence of a showing of actual damages.

Eric Goldman cites a number of cases in his blog, including a prominent class action in 2005 against Jet Blue Airlines for voluntarily turning over passenger names to a government contractor, in clear violation of the airline’s stated privacy policy.  Policies commonly permit the service provider to disclose information in response to a government demand.  Yet, Jet Blue won dismissal despite any such disclosure right in its policy.

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“Checking in” on the latest social media trend

Last week, Facebook joined the social media craze of “checking in,” with its new service called Places. The move indicates an increasingly popular trend, pioneered by services like Four Square. Whether at a famous historical landmark or their local Starbucks, people use location check-ins to let friends know where they are and earn badges for covering more ground.

Some think the next phase in the check in revolution is coming soon to a couch near you. Entertainment could be the next big thing that draws users to check in and share what they’re doing with others. Services like GetGlue, Miso, and Philo encourage you to share what you’re watching and engage with people doing the same. Besides the social networking incentive to interact with fellow fans of your favorite shows, these applications offer tokens and badges for every time you keep up with the Kardashians or tune in to see what Snooki will do next on Jersey Shore.

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Copyright Preemption of “Hot News”: Perez Hilton, NFL Films Show Perils of Relying on Preemption

(Thomas Yarnell contributed research and writing to this blog post.)

Copyright law preempts certain state law personal rights, including misappropriation of someone’s likeness or identity.  For example, the right of an individual to prevent a third party from exploiting that person’s image or voice is trumped when that third party purchased the rights to the sound recordings (i.e. the copyright) of that person’s voice.

Similarly, someone like celebrity blogger Perez Hilton might argue (and did argue in a recent lawsuit, somewhat successfully) that he had protection under copyright law (as “fair use”) to copy someone else’s copyrighted photographs.  And Hilton might further argue (and did argue in that same lawsuit, although not as successfully as his fair use argument) that his copyright claim preempts any attempt by that aggrieved copyright holder to pursue other legal arguments against Hilton.

And THAT, in beautiful incoherent summary, is how Perez Hilton might make some very good law and teaching on federal copyright law!  Like OMG!

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Trademarks in Ads: Google’s AdWords [Does] [Does Not] Infringe?

[Thomas Yarnell contributed to research and drafting on this post.]

Google’s popular and dominant advertising service, AdWords, allows companies to place auction-style bids on search keywords.  If a company bids the highest amount on a keyword, that company’s ad comes up first when someone searches the keyword.  The company then pays Google on a pay-per-click basis.  In many countries, including the United States, Google lets companies advertise next to search results from use of their competitors’ trademarks.

Let’s say you want to buy a Louis Vuitton bag.  You know it’s expensive, so you might not want to buy it directly from the company’s website.  Instead, you might search “Louis Vuitton bags” on Google and assess other options.  As you can see in a search of “Louis Vuitton bags”, you may find some “Sponsored links” to the right of your search.  Sponsored links such as the “Louis V. Bags Handbags” come from the AdWords service.

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Best Buy’s Twelpforce: A Social Media Success Story? (In Progress)

Imagine you’re in the company boardroom, and you propose to let every single one of your thousands of employees offer advice to customers… on the Internet.

Although most of your employees may offer advice in the company stores on a daily basis, isn’t allowing all of them to do it on the Internet a huge risk?  Wouldn’t everyone in the boardroom look at you like you were insane?

Best Buy decided to take this risk using Twitter.  One year later, the gamble appears to have paid off.

This July marks the one-year anniversary of Best Buy’s “Twelpforce” (i.e. Twitter help force), a social media experiment in customer service.  Any Best Buy employee can sign up using his or her own personal Twitter account, and whenever they add the hashtag “#twelpforce” the tweet gets added to the Twelpforce feed.  No tweet is added to the feed without the hashtag.

To ensure employee accountability and allow customers to build a relationship with a specific employee, each tweet posted on Twelpforce includes a signature at the end indicating the personal Twitter account of the employee.  

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Fair Use and Trademarks: Domain Names

An automobile brokerage operating online under the web domains “buy-a-lexus.com” and “buyorleaselexus.com” got sued by Toyota Motor Sales for trademark infringement, first losing in trial court on a trademark “fair use” argument, then winning on appeal.  The case opinion can be found here.

The domain name question in trademark is whether and how one can use established trademarks in domain names, in other words using the “LEXUS” trademark in your website URL when the use is anything but incidental but rather intentionally drawing on the value of the valuable brand.

Toyota, owner of the Lexus car brand, had sued to stop the auto brokerage from using the “LEXUS” trademark in the brokerage’s websites listed under “buy-a-lexus.com” and “buyorleaselexus.com”.  The brokerage defended its actions by arguing that the use of “LEXUS” was permitted (that is, non-infringing) as a fair use of the trademark.  Or as Judge Alex Kozinski explained in his appeals court opinion, the trademark was used to “refer to the trademarked good itself”.

This is the “nominative fair use” doctrine of trademark law.  In (hopefully) plain English, the defendant makes no argument to counter a trademark owner’s typical claims of trademark infringement such as likelihood of confusion or dilution of trademark and so forth.  Instead, the use of the trademark is permitted as a fair use since the use simply (and only) identifies the trademark.  Toyota did not dispute the legality of the brokerage’s business nor its authority to broker and sell Lexus vehicles.  The Lexus auto brokerage could therefore successfully argue that use of the “Lexus” was necessary to identify the product being sold.

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