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                                                         June 2011



GRR Intellectual Property News is a newsletter issued by Gottlieb, Rackman & Reisman, P.C., an IP boutique.

 

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's Patent Revived After Four Years of Abandonment     


GRR successfully helped a client revive a patent that the U.S. Patent and Trademark Office had identified as being abandoned four years earlier for lack of payment of maintenance fees.  In this unusual case, the client had been self-tracking dates for payments of maintenance fees and, in their tracking system, had inadvertently transposed the day and year digits in a date.  As a result, a particular maintenance fee had not been paid and the client was unaware that the patent had become abandoned.  The client realized the error when the next maintenance fee was coming due.  On behalf of the client, Barry Lewin prepared a petition to revive the application and worked with the client to prepare extensive declarations detailing the circumstances surrounding the unavoidable delay in paying the maintenance fee.  Initially, the petition was denied, but GRR filed a request for reconsideration, supplementing the original filing with further detail.  Because the patent is the subject of a very significant technological advancement, the client now intends to move forward with licensing the patent to a variety of third parties.

GRR Clients Obtain Consent Judgment Against Infringer     


GRR clients Artemide SpA and Artemide, Inc. (www.Artemide.net) recently secured a Consent Judgment against an infringer of several of Artemide's lighting products, which are protected by trademarks and trade dress (and, in one case, by a design patent). The infringing lighting products were copies of Artemide's well known MERCURY, TOLOMEO, NUR and CASTORE lighting designs.  Artemide had sued Kirch Industrial Co (U.S.A.) Ltd. for violating its intellectual property rights, which rights Kirch subsequently specifically recognized in the Consent Judgment.  

 

Artemide was represented by Amy B. Goldsmith and Rachel Weiss.

Attorney Presentations & Publications


Amy B. Goldsmith was inducted as a Director of the New York Women's Bar Association  at the annual dinner on June 14, 2011.


The book to which George Gottlieb and Marc P. Misthal contributed a chapter on intellectual property (Chapter 2),
Fashion Law: A Guide for Designers, Fashion Executives and Attorneys, received a favorable review in the Pace I.P., Sports and Entertainment Law Forum.

The presentation by Diana Muller on The Art of Protecting Intellectual Property Rights in Fashion is now available from Lawline.com.  Click here for more information.

The presentation by Amy B. Goldsmith and Marc P. Misthal on Intellectual Property in the Digital Age is now available from Lawline.comClick here for more information.

IP LAW IN PRACTICE

The Internet's Red Light District: Trademarks in the .XXX Domain 

Beginning in September, 2011, ICM Registry, the registrar for the new .xxx domain name (yes, it's for the "adult" industry) will accept applications from owners of registered trademarks to block their trademarks from being issued to a third party as the prefix for this new adult internet destination. The period in which trademark owners will be able to block their registered trademarks from the .xxx domain will last only 30 days, so it is important to participate.

 

Parties seeking to register .xxx domain names will have to verified as being in the adult entertainment industry (applicants for .xxx domain names will receive e-mails asking them for additional information, which they must supply before a domain name will be permitted to go live). 

 

It is now possible to "pre-register," or let ICM know of your interest in a particular domain name.  Those who "pre-register" will receive updates from ICM on the availability of the name(s) in which they are interested.    

 

If you're interested in protecting your company's valuable trademark from being diluted in this fashion, please contact us for further information about the procedure, fees and costs.

For further information, please contact Amy B. Goldsmith or Marc P. Misthal.

Fighting Piracy in Brazil  

On May 6, 2011, Brazil implemented the National Brand Owner Registry. Owners of trademark registrations in Brazil now have the option of submitting their trademarks to the Registry, which will be used by police, prosecutors, and customs officials to research and to verify that seized goods aren't genuine.

 

If your company is already in Brazil or may expand into this rapidly growing market, consider protecting your company's brand in Brazil via trademark registration and inclusion on the National Brand Owner Registry.

 

For more information, contact Amy B. Goldsmith, whose practice includes the global protection of brands.

Color Me Interested:  Color Can be Protected as a Trademark   

The rights and protections afforded to owners of color trademarks are the same as those guaranteed to owners of all other trademarks capable of being registered under the Lanham Act. Whether the chosen shade is pink for home insulation, green for a bottle of mineral water, teal blue for a famous retail store or blue for artificial turf in a football stadium, colors, like names, logos, fragrances or sounds, can acquire trademark significance to distinguish goods and services.

 

Corning Registration ImageHistorically, it was unclear whether color could be protected as a trademark.  In 1985, the Federal Circuit Court of Appeals reversed a decision of the Trademark Office and permitted the registration of the color pink for Owens-Corning's insulation. However, other courts refused to recognize that color could act as a trademark; under the "color depletion" theory, these courts surmised that registration would have anticompetitive consequences because of the limited number of colors available to competitors. 

 

Corning InsulationIt took ten years for the Supreme Court to opine that color trademarks were registrable.  However, to qualify for registration, a color must be nonfunctional and distinctive such that it has acquired secondary meaning. Secondary meaning can be obtained by consistent use of a certain color as a mark over time, which use causes the consuming public to associate the color with the appropriate source. The Court ruled against the "color depletion" theory because (1) the functionality doctrine could be applied to avoid anticompetitive consequences and (2) there are a variety of colors available to competitors for products.

 

The functionality doctrine prohibits registration of any feature that is "essential to the use or purpose of the article" or "affects costs or quality." When applied to colors, functionality can be equated with both utilitarian and aesthetic features. For example, the color of a glass bottle, which protects its contents from harmful UV radiation, is a utilitarian feature. However, the color of a boat motor, which has the capacity to minimize the appearance of the motor and guarantee compatibility with different boat colors, is an aesthetic feature.

 

Since 1995, many organizations have taken advantage of the ability to protect their colors in order to prevent others from receiving exclusivity over a particular color and in order to preserve their own exclusivity.  For example, in 2008, Boise State University filed for federal trademark registration for the blue color of its artificial football stadium turf, which was granted in April of 2011.

 

Boise Registration    Bosie Field 

 

If your business is associated with a particular color, you may join Owens-Corning and Boise State University as the owner of a federal registration for your color.


For further information, contact Diana Muller, whose practice includes counseling clients on global trademark protection, or Erica Gould.

Not Fair Use:  How a Well-Known Artist Committed Copyright Infringement When he Copied too Much Without Commenting on or Criticizing the Original Work

This is the second of two articles focusing on recent controversies involving Copyright Law and "Fair Use".

 

In last month's newsletter we discussed Conan O'Brien's parody of "Friday" and 2 Live Crew's parody of "Oh, Pretty Woman".  But not all copying can be justified by calling it a parody.  A recent decision from a federal court in New York, Cariou vs. Prince et al., 08-CV-11327 (S.D.N.Y. March 18, 2011), recently rejected an artist's "fair use" defense to claims of copyright infringement after he copied substantially from another artist's photographs, and his work did not comment on or criticize the original works.  Richard Prince, a famous "appropriation artist", copied significantly from Patrick Cariou's Yes, Rasta, a collection of portraits of Rastafarians and landscapes images from Jamaica.  In 2000, Cariou published his Yes, Rasta collection of photographs of Jamaican Rastafarians.

 

In or about 2007 and 2008, Richard Prince began incorporating photographs from Cariou's Yes, Rasta into a series Prince was developing called "Canal Zone."  First, in St. Barts in 2007, Prince displayed "Canal Zone" as 35 photographs torn from Cariou's book and attached to a wooden backing board.  Prince had painted over some of the 35 photographs, used some of Cariou's pictures in their entirety or near-entirety, and used only portions of some of the other images.  In 2008, at a show at a New York gallery, Prince displayed "Canal Zone" as a series of 29 paintings, 28 of which incorporated photographs from Yes, Rasta.  In these 28 paintings, Prince incorporated parts or the entirety of 41 photographs from Yes, Rasta.

 

Prince did not seek to comment on or criticize Yes, Rasta or Cariou as an artist.  Prince testified that he doesn't "really have a message", that he attempts to communicate when making art and that when he created the paintings for "Canal Zone", he did not intend to comment on Cariou's works.  Rather, he sought to pay tribute to other painters, including Picasso, Cezanne and Warhol, and to create beautiful works of art that related to musical themes.  The court therefore concluded that Prince's copying from Cariou was not "for purposes such as criticism, comment, news reporting, teaching...scholarship, or research", the examples of "fair use" provided in the 1976 U.S. Copyright Act.          

 

The court also found that Prince's work was not "transformative" of Cariou's original photographs.  Rather than infuse the original works with new expression, meaning or message and create new original artworks, Prince created replacement copies of the Yes, Rasta photographs.  Prince's works "superseded" the original images and crowded out the market for Yes, Rasta or any derivative works Cariou might create. At the time Prince's "Canal Zone" collection was displayed at the Gagosian Gallery in New York, Cariou had been in discussion with another Manhattan gallery about displaying and selling prints from Yes, Rasta.  However, the gallery learned of Prince's "Canal Zone" exhibition and broke off negotiations with Cariou because they did not want to exhibit works that had been "done already" at a nearby gallery.  Meanwhile, Prince and the Gagosian Gallery sold eight paintings from "Canal Zone" for a total of $10,480,000.  As the court described it, Prince and the Gagosian Gallery had "usurped" the market for Cariou's photographs. 

 

Moreover, Prince had copied too much from Cariou's collection both quantitatively and qualitatively.  As noted above, Prince had copied at least 41 photographs from Yes, Rasta, and many of these images were copied in their entirety or near-entirety.  The court further highlighted that: "in the majority of his paintings, Prince appropriated the central figures depicted in portraits taken by Cariou", and "[t]hose central figures are of overwhelming quality and importance to Cariou's photos, going to the very heart of his work."

 

Because Prince had copied so much from Cariou's original photographs, had not created works that commented on or criticized Cariou or his original photographs, and because Prince's works had clearly crowded out the market for Cariou's Yes, Rasta photographs and any potential derivative works, Prince could not legitimately avail himself to the "fair use" defense.  Quite the contrary, his copying was found to have violated Cariou's copyright rights.  Prince and the Gagosian Gallery are appealing the district court's decision and will soon submit their legal arguments to the Second Circuit Court of Appeals.  

   

For further information, contact Ariel S. Peikes, who counsels clients regarding copyrights.  

IP DEVELOPMENTS

Out-of-State Uploading of Infringing Material Subjects Uploader to Jurisdiction of New York Courts 

Penguin Group (USA) Inc. v. American Buddha, (N.Y. March 24, 2011).

New York law permits New York courts to exercise jurisdiction over an out-of-state defendants where the acts of that defendant cause injury to a New York entity and the out-of-state defendant reasonably expects such consequences.  How does this rule apply when an out-of-state publisher uploads infringing literary materials to the internet, which can be viewed everywhere, and the owner of the copyright in that materials is a New York-based publisher?

The New York Court of Appeals, reviewing this question on referral from the Second Circuit Court of Appeals, held that in such circumstances the out-of-state publisher was subject to jurisdiction in New York.  The state court said that uploading infringing material on the internet causes injury to the copyright holder by creating an environment for the sales of the original copyrighted material to diminish, and thus the copyright holder is damaged where its offices are located.  This ruling appears to be an enlargement of prior case law, which generally held that placing infringing material on the internet in one state did not grant jurisdiction over that party in a different state, unless the infringing party also sold the infringing material into that state.

New York companies can now stay home to litigate copyright cases involving uploads, which will save time and money.

 

For more information, contact George Gottlieb, whose practice includes counseling clients on copyright infringement issues.  

 
Intellectual Property News Editorial Board:   Amy B. Goldsmith (agoldsmith@grr.com), 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 over 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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