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Intellectual Property
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October 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 Prevails at Markman
Hearing |
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| GRR Attends New York Fashion
Week |
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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 |
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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 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. |
| Why the Google Books
Settlement is Being Revised and What Revisions Should be
Expected |
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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.
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| Google Obtains Design
Patent for its Website |
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New products having unique ornamental shapes can be
protected by design  patents. 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 |
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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. |
| Website Not Liable for Copyright Infringement When
Users Upload Infringing Videos |
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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. |
| Court Again Rules Against Long Island Man's
"VIVA VIAGRA" Rocket |
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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.
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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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