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IP Law In Practice
IP Developments
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                                                           October 2009


 
GRR Intellectual Property News is a newsletter issued by Gottlieb, Rackman & Reisman, P.C., an IP boutique.
 
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.
GRR NEWS
GRR Client Prevails at Markman Hearing
Judge Jose L. Linares of the New Jersey District Court recently issued an opinion in favor of GRR client Jupi Corporation in the patent litigation entitled Cupid Foundations, Inc. v. Jupi Corporation, Civil Action 07 CV 5506 (JLL) (CCC) (DNJ).  Following standard procedure in patent cases, at a Markman hearing in the spring, the parties had submitted competing interpretations of the claims (which is the language at the end of a patent which sets forth what the patent covers). The Court adopted most of Jupi's definitions, which will enable Jupi to effectively defend the allegations of patent infringement.  GRR attorneys Michael I. Rackman, Jeffrey M. Kaden, Amy B. Goldsmith and Maris Kessel represented Jupi.  A copy of the decision can be found here.
GRR Attends New York Fashion Week
Seeking to promote Argentinian fashion, the Argentinian Government selected the Spring 2010 collections of five famous designers, Benito Fernandez, Cardon (who owns more than 110 stores in Argentina), Eufemia, Min Agostini and Zitta, to be unveiled in New York City during Fashion Week. Members of GRR and some of its clients attended the Fashion Show under the famous tents at Bryant Park. It was an exciting and well planned event.
 
Diana Muller was invited by Deputy Consul Debora Bandura of the Trade Office of the Argentine Consulate in New York to make a presentation to these designers on trademark, copyright and patent issues affecting the fashion industry. Ms. Muller discussed ways to avoid infringement, counterfeiting, understanding the concepts of trade dress and design patent protection and the importance of having a well drafted agreement for the commercialization of products in the United States. The audience, which included representatives of the Consulate, as well as other designers such as Marcelo Toledo and Laura Noetinger, was immersed in the discussions. GRR attorneys Lesley Matty and Maris Kessel (who attended the conference) assisted Ms. Muller in preparing her presentation.
Attorney Presentations & Publications
Amy B. Goldsmith's article "Licensing Your Art for Product Manufacturing" appeared in the September 2009 issue of Art Calendar.
 
On September 25, 2009, Amy B. Goldsmith and Jeffrey M. Kaden gave a presentation to the law firm of L'Abbate, Balkan, Colavita & Contini, L.L.P. in Garden City, New York on how trademarks, trade dress, copyrights and design patents and can protect product designs.
 
Diana Muller and Ted WesizDiana Muller and Ted Weisz recently attended a conference on IP organized by the Associa磯 Brasileira Da Propriedade Intelectual in Rio de Janeiro, Brazil.  After the conference, Diana and Ted visited several corporate clients as well as law firms in Brazil (see photo at right).  This trip was so well received that Diana and Ted are planning to return next year.

Allen Rubenstein traveled to Israel where he met with various law firms.
 
Barry Lewin traveled to Chile where he met with representatives of an important local company to discuss patent matters. He also visited colleagues at local law firms.   
IP LAW IN PRACTICE
Why the Google Books Settlement is Being Revised and What Revisions Should be Expected
As reported in our May 2009 issue, Google reached a settlement of a class action lawsuit brought by authors and publishers over Google's Google Books program.

Before the settlement can go into effect, it must be approved by Southern District of New York Judge Denny Chin.  Judge Chin scheduled a fairness hearing for October 7, 2009.  In advance of the fairness hearing, numerous parties filed papers with the Court. One of those documents, the Statement of Interest of the United States, which recommended that the court disapprove the Settlement in its present form, has pushed Google back to the negotiating table.

In its current form, the Settlement contains four general areas of concern.  First, the Settlement raises issues of proper class notification and class representation.  Foreign owners of U.S. copyrights and owners of "orphan" works (works whose owners cannot be identified) are not represented in the settlement negotiations.  Individuals and libraries are also not represented in the settlement negotiations. 

Second, the settlement raises antitrust concerns.  The settlement greatly limits the ability of copyright owners to recover damages from Google for using their works.  This limitation would not apply to Google's competitors, who would be subject to liability if they incorporated "orphan" works into their offerings.

Third, the Settlement conflicts with certain existing copyright laws.  The Constitution grants Congress alone the authority to grant copyright monopolies upon authors.  The proposed settlement potentially changes substantive copyright law, raising the possibility of a conflict between the roles of the legislative and judiciary branches.

Lastly, the settlement may not comport with the Berne Convention for the Protection of Literary and Artistic Works, to which the United States is a signatory.  The Berne Convention requires member countries to provide copyright protection for citizens of foreign nations.  Forcing foreign owners of U.S. copyrights to opt out or accept limited payments for the use of their works would not be consistent with the Berne Convention's prohibition against creating formality requirements as a prerequisite to the enjoyment and exercise of a copyright.

To cure these problems, it is widely expected that Google will prepare a revised settlement for the Court within the next few months.  The revised settlement will likely include new class representatives, more extensive efforts at providing direct notice to copyright owners, limits to the power of the Book Rights Registry, a trust to hold and distribute revenue associated with orphan works, and avenues for competitors to gain similar terms for the distribution of orphan works.

The U.S. Department of Justice (DOJ) is in the process of reviewing the settlement for antitrust violations, and if a revised settlement is agreed upon, the DOJ will still have to approve it.  And any approved or disapproved settlement is likely to be appealed, meaning that a final outcome of the Google Books project is still a long way away.

For further information, contact Joshua Matthews.
Google Obtains Design Patent for its Website
 
New products having unique ornamental shapes can be protected by design Google Design Patentpatents. One major advantage of design patents over utility applications is that design patents are less expensive to prepare, file and prosecute, and they are issued much more quickly.  In an interesting twist, Google was recently awarded a design patent for its web page (see image at left).  Therefore, in addition to products, it appears that web pages (despite their ephemeral nature) may be the subject of design patents as long as they include some elements that are new, original, and ornamental.

For further information, contact Ted Weisz.
In Europe, eBay's Use of AdWords Infringes Trademarks
Despite eBay's recent European victories (see our June issue), on September 18, 2009, the Paris Tribunal de Grande Instance ordered the online auction house to pay LVMH Moë´ Hennessy Louis Vuitton SA ("LVMH") ?80,000 in damages (approximately USD $118,000) for "brand counterfeiting", specifically eBay's unauthorized use of LVMH luxury perfume brands Christian Dior, Givenchy, Kenzo and Guerlain in keyword searches.
 
Unlike other European lawsuits against eBay, this particular action did not allege that eBay is liable for the sale of counterfeit products on its website, but rather that the auction house committed trademark infringement by purchasing these specific LVMH perfume brands as Google AdWords and then displaying these brands in its Google advertisements.
 
As there are two pending cases before the European Court of Justice concerning Google AdWord issues, eBay may eventually be able to circumvent the French court's ruling should it conflict with EU law as it is shaped by these future decisions.
 
In addition to the damage award, eBay is enjoined from further use of the LVMH brands in its AdWord advertisements.  eBay will be subject to a ?1,000 fine (approximately USD $1,500) for each future infringement in violation of Tribunal's order.

For further information, contact Lesley Matty.
IP DEVELOPMENTS
Website Not Liable for Copyright Infringement When Users Upload Infringing Videos
UMG Recordings, Inc. v. Veoh Networks, Inc., 07-CV-5744 (C.D. Cal., Sept. 11, 2009).
 
Veoh launched its website in February of 2006, allowing its users to upload their own video content and to share that content with other users.  Veoh employees choose some content to be a "Featured Video." 
 
Universal Music sued Veoh for copyright infringement of UMG's vast musical composition and sound recordings library.  On September 11, 2009, the California District Court held that UMG's claims weren't viable;  Veoh is entitled to the "safe harbor" provided to internet providers (ISPs) by Section 512(c) of the Digital Millennium Copyright Act.  The court explained that under the Copyright Act, ISPs are not required to police the materials uploaded by their users; instead, the burden is on the copyright owner to specifically notify the ISP of the infringement, and the ISP is entitled to the "safe harbor" unless it does not act quickly to evaluate and then remove the content. But the ISP does not  have to actively search uploads for infringing content, and even a general knowledge that content is likely to contain unlicensed works is not enough to create liability by an ISP.  Moreover, even though Veoh had implemented Audible Magic filtering technology, the Court held that Veoh wasn't required to do so.  UMG is likely to appeal the court's decision, and we will report on any developments.

For more information, contact Amy B. Goldsmith.
ON THE LIGHTER SIDE
Court Again Rules Against Long Island Man's "VIVA VIAGRA" Rocket 
In our February/March issue, we reported that Arye Sachs, a retired jeweler, had been temporarily enjoined from further displays of his 25 foot long rocket with the words "VIVA VIAGRA" posted on the side.  Mr. Sachs got into trouble by using his pick-up truck to tow his decommissioned U.S. Air Force rocket around Manhattan.  Pfizer, the owner of the VIAGRA trademark, had won a preliminary injunction forbidding Mr. Sachs from further such displays.
 
U.S. District Court Judge William Pauley has now issued a final ruling in favor of Pfizer, finding that Mr. Sachs had traded on the fame and reputation of the Viagra mark without Pfizer's permission.  The Judge's ruling made the preliminary injunction permanent, and also ordered Mr. Sachs to pay Pfizer's attorneys' fees.  Judge Pauley said that Mr. Sachs had ignored requests to stop, and had threatened further displays "with two models 'riding' the missile, and distributing condoms."
 
According to an article in Newsday, Mr. Sachs believes that the Judge was "blinded by the sheer power" of Pfizer, and Mr. Sachs said he now plans to tow a damaged cockpit to Pfizer's midtown headquarters with a banner suggesting that the Pfizer drug Lipitor damages women.  Click here for a copy of the court's decision.
 
For further information, contact Richard S. Schurin.
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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