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Intellectual Property
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November 2009
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The purpose of this newsletter to keep in
touch with our friends and colleagues as well as
provide practical information and news relating to
Intellectual Property law.
Please forward this newsletter to anyone who
might be interested. Previous issues of
GRR Intellectual Property News can be found on our
website. | |
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| GRR Client Prevents Encroachment on its Famous
Mark |
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The trademark HAVAIANAS for footwear is a famous
mark. When the Brazilian owner of the HAVAIANAS mark
noticed an unusual number of applicants trying to register
similar marks, it asked its Brazilian counsel to
take immediate action to enforce its rights in the United
States.
Working closely with the client's Brazilian attorneys, Richard S.
Schurin and Diana
Muller instituted Opposition proceedings in the
United States against various entities trying to register word
marks including the term HAVANA for footwear.
While the enforcement program continues, five (5) separate
applicants have now agreed to abandon their
applications.
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| Attorney
Presentations &
Publications |
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Maria A.
Savio's article "Appropriation Art: Is My Work an
Infringement or Is My Taking Fair?" appeared in
the October 2009 issue of Art Calendar.
Marc P.
Misthal was interviewed for an article in Tech News World
about the introduction of internationalized domain names (see
article below). The article can be found here.
Barry
Lewin is now a member of the Haydn Proctor Inn of Court,
Civil Practice Group.
Diana
Muller, President of the Interamerican Association of
Intellectual Property's (ASIPI) Licensing Committee, oversaw
the compilation and production of a guide entitled
"Survey on Trademark License Recordation", which was
distributed to attendees of ASIPI's recent meeting in Lima,
Peru. |
| FTC Issues New
Guidelines Governing Endorsements |
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On October 5, 2009, The Federal Trade Commission issued
new guidelines (available here)
detailing how advertisers using endorsements and testimonials
can comply with the FTC Act. The guidelines take effect
on December 1, 2009. After that date, anyone (including
consumers, experts, organizations and celebrities) commenting
on or endorsing a product or service must comply with the
guidelines. The guidelines apply irrespective
of the media in which the comments or endorsements
appear and are intended to cover the use of social
media (such as Facebook, Twitter, etc.).
The premise underlying the guidelines is
complete and truthful disclosure. Thus, the relationship
between a commentator and an advertising agency or a
commentator and a company providing the product or
service must be clearly disclosed. This requires
disclosure where, for example, free products are provided
for evaluation, evaluators are paid or a contest is used
for receiving evaluations. The guidelines don't require
specific disclosure when celebrities appear in advertisements,
but disclosure is required outside of the advertising context,
including if the celebrity comments on blogs, during media
appearances, or during an interview.
Similarly, under the guidelines advertisers can no
longer use testimonials to describe atypical
results along with a disclaimer saying "results not
typical." If a testimonial refers to atypical results,
information about typical results must be disclosed in a clear
and conspicuous disclaimer that is understandable to the
general consuming public. With respect to typical results, the
advertisement must either explain the typical results that a
consumer might expect or include the actual results.
Further, the guidelines state that
"endorsements must reflect the honest opinions, findings,
beliefs, or experience of the endorser." Accordingly, if a
person endorses a service or product and implies that they
have used that service or product, the FTC will consider such
an endorsement to be deceptive and in violation of the FTC Act
if the endorser never used the product or stopped using it
while the ad is still running. From a legal
perspective, both the advertiser and the endorser are liable
for false or misleading statements contained in the
advertisement and for failing to disclose material
connections. In view of the new FTC guidelines, anyone
promoting or endorsing products or services must be very
careful about what they say. For further
information, contact Amy B.
Goldsmith. |
| Internationalized
Domain Names are Coming |
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The Internet Corporation for Assigned Names and Numbers
(ICANN), the entity responsible for administering the domain
name system and technical aspects of the internet, has voted
to allow internationalized domain names which will appear
entirely in non-Latin scripts (such as Hebrew, Chinese, Arabic
and Greek). Internationalized domain names will permit
entire domain names to appear in non-Latin scripts;
previously, Top Level Domains, such as .cn or .kr, had to
appear in Latin characters.
Internationalized domain names will only be
available in country code Top Level Domains such as .ru or
.gr, and thus will not affect the operation of other domains
such as .com, .net or .biz.
Nations and territories may begin applying for
internationalized domain names on November 16, 2009.
Trademark owners should monitor developments regarding
internationalized domain names, as the introduction of
internationalized domain names could require trademark owners
to register additional domain names to prevent squatters from
registering domain names incorporating non-Latin versions of
trademarks.
More information about internationalized domain names can
be found on ICANN's website.
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| Fair(ey) Ball or
Foul? |
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Shepard Fairey appeared to have an admirable
objective -- upholding the principle of fair use in the
copyright law -- when he brought suit against the Associated
Press ("AP") seeking a declaration that his now famous HOPE
campaign posters of President Obama are a transformative
use of a photograph taken by photographer Mannie Garcia
and thus a fair use of that photograph.
AP had claimed it owned the copyright in the photograph
and that Fairey's use infringed the copyright. AP took
the position that the use was not transformative and thus not
entitled to come within the "safe harbor" of fair
use. The "fair use" doctrine gives users of another's
copyrighted work the right to use it; absent that
doctrine the use would be deemed an infringement.
In a surprising development, Fairey has now
publicly admitted that the photograph he claimed to have
copied was not actually the photograph he copied.
Instead, he announced that he had copied a photograph that was
much more similar to the image in his posters. This
admission not only compromised his transformative use
argument, but is a major blow to his credibility.
Fairey conceded that after he realized the "mistake," he
"concealed it," "submitted false images" and "deleted other
images" to support the position he initially set
forth.
It is ironic that fair use is now being litigated in
a backdrop of "unfair" litigation conduct, and that
counsel took litigation postures and made arguments based
on facts that are not correct. There is no
turning back. His counsel has reportedly resigned
and supporters of the fair use doctrine are left to
wonder...what was Fairey thinking? Fairey has
observed that his actions "may distract from what should be
the real focus of my case - the right of fair use so that all
artists can create freely." Unfortunately, he is right
this time. In litigation, concealing or destroying
documents never turns out well. More harm is done by
that very act then by coming forward immediately and admitting
an honest mistake or even a dishonest one. Is
Fairey too young to remember Watergate?
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| Patent Practice
Note--Bilski as Applied to Methods of
Treatment |
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One of the hottest topics in patent practice these days
stems from In re
Bilski, Case No. 07-1130 (Fed. Cir. Oct. 30,
2008). Bilski is now pending on appeal before the
U.S. Supreme Court, but last year the Court of Appeals for the
Federal Circuit (CAFC) held that to be patentable under U.S.
patent law, method claims in patents must meet the so called
"machine or transformation" test, whereby a patent claim must
be directed to a particular machine or to a transformation of
matter. In Bilski, the CAFC noted that this
test is useful in identifying a method of purely mental steps,
which is not patentable under U.S law. Unfortunately,
the CAFC did not address what is sufficient to constitute a
machine or a transformation of matter. Even though that issue
remains unresolved, but the United States Patent and Trademark
Office is regularly applying Bilski to applications
pending before it while courts sort out the test.
Many scholars believe that this test will result in a
significant reduction in business method
patents.
But how does Bilski apply to methods of
treatment? In Prometheus
Labs., Inc. v.Mayo Collaborative Services, the
CAFC was presented with the issue of whether Bilski precluded
a patent claim for a method of treating a patient. In
Prometheus the claims at issue involved methods of
treating a gastrointestinal disorder by optimizing therapeutic
efficiency by 1) administering a quantity of a drug
including a particular ingredient and 2) determining the level
of that ingredient in the patient. The district
court held the claims invalid, explaining that the two
steps were merely data gathering or mental steps.
On appeal the CAFC reversed, stating that the
Bilski test had been met. According to the CAFC,
the steps met the "transformation" prong of the Bilski
test. It further held that "method of treatment[s] are
always transformative when a defined group of drugs is
administered to the body to ameliorate the effects of an
undesired condition." A petition for further appeal is
presently before the U.S. Supreme Court. In summary,
Prometheus appears to take a broad view of
"transformation" and the broad view may be applicable to
non-pharmaceutical methods of treatment as well.
However, the pending appeal at the Supreme Court may yet
change the test. In terms of patent prosecution, it
remains good practice to articulate the machine or
transformation within the claims. For further
information, contact Barry
Lewin. |
| NBA Star Recovers 800
Domain Names From Cybersquatter |
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Chris Bosh, forward for the Toronto Raptors, is used to
winning on the basketball court. But as a result of
victory in federal court, Mr. Bosh liberated 800 domain names
corresponding to the names of other athletes and celebrities
held by a cybersquatter.
Mr. Bosh sued Luis Zavala and his company Hoopology.com
in July 2008 to recover the domain name
<chrisbosh.com>, which was being used to display
pay-per-click ads. Before filing suit, Mr. Bosh's
attorneys contacted Mr. Zavala, but he refused to transfer the
domain name to Mr. Bosh.
In October, the Federal District Court for the Central
District of California ordered Mr. Zavala and his company
to transfer 800 domain names to Mr. Bosh, including domain
names relating to Jason Kidd, John Gotti, Dale Earnhardt Jr.
and a number of other NBA players (a complete list of the
domain names can be found here). Mr. Bosh will, at no
charge, transfer any domain name to the person to whose
name the domain name corresponds.
In a prior decision, the court ordered Mr. Zavala to pay
$120,000 in damages and entered judgment in Mr. Bosh's
favor. Mr. Bosh then sought the order transferring the
800 domain names held by Mr. Zavala and his company in
satisfaction of the judgment entered by the court. For
further information, contact Marc P.
Misthal. |
| Copyright for "Daisy" Design Invalidated Based on
Prior Floral Design |
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Royal Printex Inc. v. Unicolors Inc., 91
U.S.P.Q.2d 1439 (C.D. Cal. 2009) Floral
designs are regularly accepted for registration by the
Copyright Office. As long as the author of the floral design
creates some minimal differences between the new design and
prior designs, of which he is aware, the design is accorded
copyright protection. The "threshold" for acceptable
creativity, the difference between the old and the new, in
order to obtain a copyright registration, is quite modest.
However, there is some threshold, and below it no copyright
protection is available.
The daisy flower design that was allegedly
infringed in Royal Printex Inc. v. Unicolors Inc., a
copyright infringement case, fell below that threshold.
In considering the validity of Royal Printex's copyright
registration, the Court found that the author's work was
essentially identical to a daisy flower design created some 50
years earlier and shown in a design book. The Court noted that
the only difference was that the older work had a ticking
stripe for its background and the new work had polka-dots.
That change, switching from a ticking stripe background to a
polka-dot background, for a daisy flower design, plus keeping
no records of the design changes, was insufficient to support
a copyright registration and the court invalidated
it.
For more information, contact George
Gottlieb.
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| Unusual Inventions |
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Inventors have been known to be a little eccentric.
This has resulted in some very funny patents, two of which are
shown below:
 U.S. Pat No. 5,983,411 entitled "Toilet
Bowl Aquarium" There is no doubt that this
makes the traditional burial of the aquarium's occupants very
convenient. On the other hand, it may be extremely
stressful on the fish to live so close to their final
resting place, where every flush may cause them to wonder if
their time is
up.
 U.S. Patent No. 3,677,263 entitled "Portable Bath
Capsule" This invention may appeal to all those
parents who have trouble keeping their kids in the
bathtub.
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Intellectual Property News Editorial Board: Richard S.
Schurin ( rschurin@grr.com), Marc P.
Misthal ( mmisthal@grr.com), and Steven
Stern ( sstern@grr.com) of Gottlieb,
Rackman & Reisman, P.C. Suggestions, questions
and comments should be directed to the Editorial Board by
email or telephone (212) 684-3900. For nearly forty
years, Gottlieb, Rackman & Reisman, P.C. has provided
legal advice and guidance on all aspects of patent, trademark,
copyright, and unfair competition law, tailoring its counsel
to the specific needs of its clients.
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Gottlieb, Rackman & Reisman,
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