MediaTech Law

By MIRSKY & COMPANY, PLLC

Update: DC’s Qualified High Tech Company (QHTC) Changes: Nice Benefits to LivingSocial

My colleague Kate Tummarello wrote last year about the District of Columbia’s “New E-Conomy Transformation Act of 2000”, a 2001 law which set up tax benefits encouraging technological innovation.  The Act granted tax benefits to “Qualified High Technology Companies” (QHTCs), certain DC-based, for-profit businesses that make most of their revenue from the sale of products and services related to information technology.

Among other incentives, the Act granted to QHTCs tax credits for wages and costs of retraining qualified disadvantaged employees, credits for wages to qualified non-“disadvantaged” employees, exemptions from DC sales and use tax and reduction of DC’s corporate franchise tax rate, and exemption for 5 years from DC’s corporate franchise tax.

In April 2012, DC Mayor Gray proposed expansions of the QHTC program, in his “Social E-Commerce Job Creation Incentive Act of 2012.” The 2012 legislation, enacted in part and still pending in part, would accomplish 3 major things:

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Shorts: Phoning Home in the 21st Century: Call US and Canadian Numbers from Virtually Anywhere… For Free

I highly recommend that you consider leaving your smartphone at home while traveling abroad.  My colleague Andy Mirsky asked me to write this post while I spoke with him from Spain.  He called my 202 number, and we chatted for about 15 minutes and planned to speak again next week. What’s the significance of this, you ask? Well, I’m in Europe.  Until I was pickpocketed in Puerta Del Sol, Madrid, last week, I was able to text and phone home as much as my poor, little homesick heart desired without being charged a dime.  So pack your smartphone, enable Airplane mode, and forget about roaming fees.

Talkatone is a free app officially available for iPhone, iPod, iPad (iOS 4.0 and later).  You can also download Talkatone on some Android devices although it’s not officially supported by the app.  Talkatone uses Voice Over IP (VOIP) technology to connect users to any US or Canadian number via a Google Voice account.  Talkatone is also an alternative to stay connected via your mobile device when you’ve got weak cell tower reception but can access WIFI.

Here are the steps:

  1. Get a free Gmail account if you don’t already have one.
  2. Sign up for a free Google Voice account here.
  3. Download both the Google Voice app (I prefer Google Voice for texting) and Talkatone on your mobile device.
  4. Sync your Google voice account with your Talkatone app.
  5. Call and text home for free from anywhere, although you’ll have to be able to access the internet – awesome, right?

Although services like Skype are great for chatting with friends and colleagues during your travels, you cannot use these applications to contact individuals at institutions such as banks and medical offices who do not subscribe to these services.  Since I’m without iPhone, I have spent the past week trying to figure this out: If for some reason you’re ever abroad and all you’ve got is a computer and WIFI, how do you phone people at home… for free?  Google Voice has an awesome extension for Chrome users that, just like Talkatone, allows you to send unlimited, free SMS text messages and also make and receive calls all via your desktop.

Quick tips:

  • I prefer the texting interface on the Google Voice App over Talkatone’s so I would recommend downloading this app as well.
  • Call quality will depend on strength of your data signal.  And, if both parties use Talkatone, expect a clearer conversation.
  • If you’re in my position and feel totally disconnected from the world, there are plenty of other options to keep in touch with loved ones and work.  However the more well-known apps for making calls (Skype and Google Voice, most obviously) charge fees.  Their rates are competitive and modest, but of course I like free.

Enjoy your time abroad, watch out for pickpockets, and please share this information with friends and family with whom you want to stay connected!

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Shorts: TheDirty.com Loses CDA Section 230 Protection

Earlier this year a federal district court in Kentucky rejected the efforts of TheDirty.com to invoke Section 230 of the Communications Decency Act (CDA) to dismiss a defamation lawsuit filed against it by a former Cincinnati Bengals cheerleader.  The decision is significant because it is an unusual failure of a website populated almost entirely by user-generated and user-generated content to be able to rely on the protections of Section 230 of (CDA).

TheDirty.com is a gossip website, described this way by Eric Robinson on the Citizen Media Law Blog: “In addition to a bit of celebrity gossip and paparazzi-type pictures, the site also invites anyone to post pictures – often revealing, embarrassing, or insulting – of others for comment by users and, sometimes, the site’s proprietor.”

Section 230 of the CDA states that “No provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider.”  In plain English, Section 230 has been understood – and applied – to mean that most prominent websites cannot be held liable for the defamatory actions of their users, usually regardless of the complacency in and encouragement of those actions.

There have been exceptions, most notably 2 cases cited by the District Court in this case in support of its decision: Fair Housing Council of San Fernando Valley v. Roommates.com and Federal Trade Commission v. Accusearch.  The Roommates.com case involved an apartment search site which was denied Section 230 protection because of its deemed proactive participation in the potential discriminatory activity through providing structured search criteria which allowed users to search by race.  Accusearch involved a website that sold metadata about individuals’ telephone calls, which information could not be legally sold in violation of various federal laws.  The information was still out there, however, and various third parties continued to peddle it, and Accusearch’s site facilitated that.  The problem, as Eric Goldman described it, was this:

Abika.com [Accusearch’s subsidiary] apparently was structured as a classic retailer in that it advertised the third party reports, processed customer payments, and delivered the subsequent reports to customers as if the reports were its own (Abika.com even stripped out the third party vendor’s identifying information). So the veneer of Abika.com simply being a passive intermediary between customers and vendors may have been overwhelmed by Abika’s active and overwhelming presence in the transaction.

With TheDirty.com, that problem was analogized to the one of an active solicitor of defamatory content, even if the interactive computer service” provider was not itself the originator of the offending content:

This Court holds that, under the principles of Roommates.com and Accusearch, the defendants here, through the activities of defendant Richie, “specifically encourage development of what is offensive about the content” of “the dirty.com” web site.

An appeal of the decision by TheDirty.com to the 6th Circuit Court of Appeals was rejected, although not on substantive grounds but rather procedurally due to “fail[ure] to demonstrate how a substantial public interest will be imperiled by delaying [the] appeal until after the district court enters a final order.”  Jones v. Dirty World Entertainment Recordings, Inc., No. 12-5133 (6th Cir. May 9, 2012).

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Please Don’t Take My Privacy (Why Would Anybody Really Want It?)

Legal issues with privacy in social media stem from the nature of social media – an inherently communicative and open medium. A cliché is that in social media there is no expectation of privacy because the very idea of privacy is inconsistent with a “social” medium. Scott McNealy from Sun Microsystems reportedly made this point with his famous aphorism of “You have zero privacy anyway. Get over it.”

But in evidence law, there’s a rule barring assumption of facts not in evidence. In social media, by analogy: Where was it proven that we cannot find privacy in a new communications medium, even one as public as the internet and social media?

Let’s go back to basic principles. Everyone talks about how privacy has to “adapt” to a new technological paradigm. I agree that technology and custom require adaptation by a legal system steeped in common law principles with foundations from the 13th century. But I do not agree that the legal system isn’t up to the task.

All you really need to do is take a wider look at the law.

Privacy writers talk about the law of appropriation in privacy. The law of appropriation varies from state to state, though it is a fairly established aspect of privacy law.

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Pinterest: Fair Use of Images, Building Communities, Fan Pages, Copyright

When using Pinterest (and Flickr and YouTube and Facebook and on and on), what copyright, fair use, trademark and other issues weigh on building communities and fan pages and social media generally?  A hypothetical “Company” has plans for its Pinterest “community”, and in particular, wonders about these situations:

  • Using Images of Identifiable People
  • Fair Use and Images
  • Trademarks: When is a “Fair Use” Argument Strongest?
  • Why Attribution and Linking to Original Sources is Important

3 introductory questions:

Question #1: Someone used to be a paid Company sponsor or spokesperson.  They are no longer.  Can the Company continue to post a photo of the old sponsor to Pinterest?  Short Answer: If the contract with the sponsor expressly permits it, yes.  Ordinarily, the contract would specify engagement for limited time, and that would prohibit rights to use images beyond the contract period.  But it really depends on what the contract says.

Question #2: Can the Company post a photo of a fan of the Company?  Short Answer: Express consent is required, either through a release or the fan’s agreement (whenever the photo is submitted) to terms of service.  Exceptions are discussed below.

Question #3: Can the Company post a photo of a Coca-Cola bottle on its Pinterest page?  Short Answer: If the use of the image does not suggest (implicitly or explicitly) endorsement or association, then yes.

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Can I Print This? 3D Printing and Intellectual Property (Q&A)

My colleague, Miguel Abaunza, works in design and recently purchased a 3D printer. Miguel started bringing me and my roommate jewelry, some small trinkets and this really cool bulb cover I was immediately curious about the extent of these capabilities: what all could this printer actually print?  Miguel pointed me in the direction of a Ted Talk in which Marc Goodman mentions that 3D printers can print in chocolate! Goodman also highlights security risks that these machines may pose as the technology advances and becomes more accessible. I became curious about the implications of intellectual property law in 3D printing.

In this post, I called on Andrew Mirsky to answer some questions I have on this topic.  Andrew is an attorney with Mirsky & Company, PLLC:

First some background: 3D printers print objects.  After you input a design, the print job yields a three-dimensional figure composed of tightly-welded plastic or metal.  

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Tootsie Roll vs. Footzy Roll: Clever Marketing or Trademark Infringement?

As a twentysomething female who likes to dress for success but not suffer without end in the unrelenting DC humidity, flat, practical shoes can offer a sweet reprieve from uncomfortable heels.  Rollashoe’s premier product, the Footzy Roll, a ballet-style, compactible slipper can be stored easily for the girl on the go.  They’re great to casually slip on after a night out on the town or for happy hour after a day in the office.  They’re also edible.  Just kidding.

Tootsie Roll seeks to block Rollashoe’s trademark for “Footzy Rolls” in the US Patent and Trademark Office, as Reuters reported last fall.  Tootsie, which, as reported in the Chicago Tribune, earned $521 million in 2010, filed suit against Rollashoe, LLC in federal court in Chicago, claiming that Footzy Roll will confuse and deceive consumers and dilute Tootsie’s trademarks. 

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SaaS: Software License or Service Agreement? Start with Copyright

SaaS, short for “Software as a Service”, is a software delivery model that grants users access to a program while the software itself and its accompanying data are stored off-site, on a vendor’s (or another third party’s) servers.  A user accesses the program via the internet, and the access is provided as a service.  Hence … “Software as a Service”.

In terms of user interface functionality, a SaaS service – typically accessed via a subscription model – is identical to a traditional software model in which a user purchases (or more typically, licenses) a physical copy of the software for installation on and access via the user’s own computer.  And in enterprise structures, the software is installed on an organization’s servers and accessed via dedicated “client” end machines, under one of many client-server setups.  In that sense, SaaS is much like the traditional client-server enterprise model where servers in both cases will likely be offsite, the difference being that SaaS servers are owned and managed by the software owner.  The “cloud” really just refers to the invisibility of the legal and operational relationship of the servers to the end user, since even in traditional client-server structures servers might very likely be offsite and accessed only via internet.

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MegaUpload – Where is my Data?

A not-insignificant consequence of the federal government’s move in January to shut down the popular file-sharing site MegaUpload is that customers are blocked from being able to access their files.

First, some background. In January, the government charged that MegaUpload and its founder Kim Dotcom operated an organization dedicated to copyright infringement, or in other words operated for the purpose of a criminal enterprise.  The site provided a number of online services related to file storage and viewing, which (among other things) allowed users to download copyrighted material.  The government also claimed in its indictment that the site was also used for other criminal purposes including money laundering.

Not surprisingly, the file-sharing activities caught the unpleased eye of prominent content ownership groups

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Employee Wage Theft Protection, Notice, Employee Anti-Retaliation and NLRA

Last year, effective for 2012, New York State enacted the “Wage Theft Protection Act”, amending wage notice requirements and establishing penalties for failing to comply with the new rules.  The Act expands on ways workers must be notified of wages through wage statements while creating additional protections for workers against retaliation for expressing concerns about working conditions.

Wage Notice Requirements

Starting with 2012, the Act requires that employees must be given a pay notice between January 1 and February 1 of each year or at any time a worker’s wages change.  If an employee is hired after February 1, he or she must still be given notice upon hire as well as the annual notice with other employees.

Notices must provide the following information: An employee’s wage, including the rate of wage including the hour, shift, day, week, salary and frequency of payment.  Additionally, the notice must include allowances and whether or not allowances are included in pay, for example tips, meals and other accommodations.  Lastly, the employer’s name, address, telephone number and other reasonably appropriate information must be included in notices.

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Privacy: Consent to Collecting Personal Information

Gonzalo Mon writes in Mashable that “Although various bills pending in Congress would require companies to get consent before collecting certain types of information, outside of COPPA, getting consent is not a uniformly applicable legal requirement yet. Nevertheless, there are some types of information (such as location-based data) for which getting consent may be a good idea.  Moreover, it may be advisable to get consent at the point of collection when sensitive personal data is in play.”

First, what current requirements – laws, agency regulations and quasi-laws – require obtaining consent, even if not “uniformly applicable”?

1. Government Enforcement.  The Federal Trade Commission’s November 2011 consent decree with Facebook user express consent to sharing of nonpublic user information that “materially exceeds” user’s privacy settings.  The FTC was acting under its authority under Section 5 of the FTC Act against an “unfair and deceptive trade practice”, an authority the FTC has liberally used in enforcement actions involving not just claimed breaches of privacy policies but also data security cases involving managing of personal data without providing adequate security.

2. User Expectations Established by Actual Practice.  The mobile space offers some of the most progressive (and aggressive) examples of privacy rights seemingly established by practice rather than stated policy.  For example, on the PrivacyChoice blog, the CEO of PlaceIQ explained that “Apple and Android have already established user expectations about [obtaining] consent.  Location-based services in the operating system provide very precise location information, but only through a user-consent framework built-in to the OS.  This creates a baseline user expectation about consent for precise location targeting.”  (emphasis added)

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