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    The Briefing by Weintraub Tobin

    In The Briefing by Weintraub Tobin, intellectual property attorney Scott Hervey and his guests discuss current IP issues related to trademark, copyright, and entertainment, as well as IP litigation and intellectual property in the news.

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    Latest Episodes:
    The AI Copyright Conundrum Continues – An Update Oct 06, 2023
    Show notes

    A recent article in The Hollywood Reporter explores TV and movie studios’ potential use of AI for generating scripts. Scott Hervey and Jamie Lincenberg discuss this and other statements in the article on this episode of The Briefing.

    Watch this episode on the Weintraub YouTube channel here.

    Show Notes:

    Scott:
    An August 23rd article in The Hollywood Reporter had the title, “Studio’s Offer to Writer May Lead to AI-created Scripts that are Copyrightable.” The article acknowledged that copyright law doesn’t recognize works solely created by artificial intelligence, but the article theorized that by incentivizing writers to participate in the creation process, studios may have a better shot at getting that work protected. We are going to dissect some of the statements made in this article in light of the recent ruling by the D.C. District Court that AI works are not entitled to copyright protection on this installment of The Briefing by Weintraub Tobin.

    Let’s set the stage with a recent ruling by Judge Howell in the lawsuit brought by Stephen Thaler against the Copyright Office based on the Office’s rejection of his application to register their work. A recent entrance to paradise. The work was created by an AI technology called Creativity Machine and was submitted for copyright registration in 2018 by Stephen Thaler as a work made for hire, in which Thaler listed the Creativity Machine as the author and Thaler as the copyright owner. In his application, Thaler left a note from the Office stating that the work was autonomously created by a computer algorithm running on a machine, and he was seeking to register his computer-generated work as a work for hire as the owner of the Creativity Machine.

    Jamie:
    We previously covered the Copyright Office’s rejection of Thaler’s application in March of last year. Basically, the Copyright Office rejected Thaler’s application because it lacked the human authorship necessary to support a copyright claim. Thaler appealed the rejection to the District Court for the District of Columbia, and the Court upheld the rejection of Thaler’s application, holding that human authorship is an essential part of a valid copyright claim.

    Scott:
    Right. The single legal question before the Court was whether a work generated autonomously by a computer falls under the protection of copyright law upon its creation. The Court acknowledged that copyright is designed to adapt with the times and that copyright law has proven malleable enough to cover works created with or involving technologies developed long after the traditional media of writings memorialized on paper. But underlying that adaptability and that malleability has been a constant understanding that human creativity is at the core of copyrightability, even as that human creativity is channeled through new tools or into new media.

    Jamie:
    The Court cited the 1884 Supreme Court case of Borough Giles Lithographic Company versus Serenay, which upheld the constitutionality of an amendment to the Copyright Act to cover photographs. In that case, the Supreme Court reasoned that photographs amounted to copyrightable creations of authors despite being issued from a mechanical device that merely reproduced an image of what is in front of the device because the photographic result nonetheless represented the original intellectual conceptions of the author.

    Scott:
    The Court said that at its founding, copyright was conceived of as a form of property that the government established to protect. It was understood that recognizing exclusive rights in that property would further the public good by incentivizing individuals to create and invent the act of human creation and how to best encourage human individuals to engage in that creation and thereby promote sciences and the useful arts was and continues to be central to American copyright from its very inception.

    Jamie:
    The Court then cited to the numerous cases that stood for the proposition that human creation is a required element of copyright, including one of your favorite cases, I believe Naruto versus Slater, better known as the Monkey selfie case.

    Scott:
    Yes, that is one of my favorite cases.

    Jamie:
    Okay, so the Court made it abundantly clear that human creation is a required element for copyright protection to exist. The Court also noted that we are approaching new frontiers in copyright, and the increased attenuation of human creativity from the actual generation of the final work will prompt challenging questions regarding how much human input is really necessary to qualify the user of an AI system as an author of a generated work and the scope of the protection obtained over the resulting image. But you wanted to tie this into the Hollywood Reporter article, right?

    Scott:
    So, the article was partially an update on this decision by the district court, but it was also an update on the Writers strike, and it discussed the August 11 proposal that was made by the AMPTP to the Writers Guild with regard to AI. The article concluded that based on certain wording in the proposal, studios intended to harness AI technology instead of banning it.

    Jamie:
    Well, it would be tough to outright ban AI since it’s going to be part of our day-to-day life, even more so than it already is now.

    Scott:
    True. But the article then proposes that by keeping AI on the table, the studios may be looking to capitalize on the intellectual property rights around works created by the tools. The article then quoted an AMPTP source as stating quote, “if a human touches material created by generative AI, then the typical copyright protections will kick in.” End quote. That’s not entirely true. On March 16, 2023, the Copyright Office issued a rule concerning the registration of works containing material generated by artificial intelligence. The purpose of the rule, which is really a policy statement, was to clarify the Copyright Office’s practices for examining and registering works that contain material generated through the use of artificial intelligence technology. The Copyright Office will not recognize a copyright in an AI-generated work, which means that any work generated by an AI technology is in the public domain from the moment it is created. And it’s free for everybody to use a final work product that includes both AI-generated content and traditional elements of authorship exercised by a human. Those would be components where the human exercise the ultimate creative control over how a generative AI technology interprets, prompts, and generates material, or where the human maybe selects or arranges AI-generated material in a sufficiently creative way, or where a human modifies the AI-generated material to such a degree that the modifications meet the standard for copyright protection. It’s only that portion of the work representing the human-authored aspect that would.

    Jamie:
    Be protectable, but it’s just that portion of the work over which a human exercised ultimate creative control that would be covered by copyright, not the entire work and not that portion of the work generated by AI. And also, the Copyright Office will require applicants to specifically exclude AI-generated content from a copyright claim.

    Scott:
    That’s correct. It seems to me that there still is a lot of confusion over what is and what is not copyrightable when AI is involved in the creation of the work. The article The Hollywood Reporter article proposes that studios may be able to avoid copyright reversion litigation, such as what’s going on with Top Gun, if AI were to create the IP. I don’t know that I agree with that. If AI were responsible for creating the IP, then that IP would be in the public domain from the outset. What studio would build a franchise around IP that it doesn’t own and can’t control?

    Jamie:
    Exactly.

    Scott:
    But to be fair, it’s really still not exactly clear what level of human contribution is required to trigger copyright protection over the human contribution portion of the work. Just the other day, August 30, the Copyright Office issued a notice seeking public comment on various copyright policy issues relating to AI and one of those issues was the copyrightability of material generated using AI systems. The notice states quote, “Although we believe the law is clear that copyright protection in the United States is limited to works of human authorship, questions remain about where and how to draw the line between human creation and AI-generated content. For example, are there circumstances where a human’s use of a generative AI system could involve sufficient control over the technology, such as through the selection of training materials and multiple iterations of instructions to result in output that is human-authored?” End quote.

    Jamie:
    Well, we certainly will report back on the results of the Copyright Office study. Thanks for bringing this to our attention, Scott.

    Scott:
    Thanks, Jamie.

    Jamie:
    Thank you for listening to this episode of the Briefing. We hope you enjoyed this episode. If you did, please remember to subscribe, leave us a review and share the episode with your friends and colleagues. If you have any questions about the things we covered today, leave us a comment.


    Judge Finds Lyrics and Themes “Guns, Money, and Jewelry” Too Commonplace for Copyright Protection Sep 29, 2023
    Show notes

    An Illinois judge rejected an infringement claim brought by rapper Gutta, alleging that a song released by hip-hop artist Future infringed his rights. Scott Hervey and Jamie Lincenberg talk about this dispute on this episode of The Briefing.

    Watch this episode on the Weintraub YouTube channel here.

    Show Notes:

    Jamie:
    On August 25, 2023, the U.S. District Court for the Northern District of Illinois rejected an infringement claim brought by rapper Dequan Robinson, otherwise known as Gutta, alleging that a song released by hip-hop artist Future infringed his rights. We are going to talk about this case and why the court dismissed Robinson’s claim on today’s episode of The Briefing

    I’m Jamie Lincenberg of Weintraub Tobin and I’m joined today by my colleague Scott Hervey.

    Scott:
    Hi Jamie, thanks for having me today. Looking forward to diving into this case. So first, why don’t you provide us with a quick recap on the lawsuit.

    Jamie:
    So, on Friday, a Chicago federal court dismissed the copyright infringement lawsuit that was brought in 2021 against popular Atlanta hip hop artist Future by Virginia rapper Dequan Robinson, who, as I said, performs as Gutta. He alleged that Future’s song, ‘When I Think About It’, released in 2018, ripped off his own 2017 song ‘When You Think About It’ to make a hit of his own and claiming that he had emailed a draft of his song to future’s producer a year before the song was released. His complaint alleged that they created the song in the image of his song, likening his case to the famous Blurred Lines lawsuit in which Pharrell Williams and Robin Thicke’s very popular track Blurred Lines was found to have infringed Marvin Gaye’s iconic ‘Got to Give It Up.’ The lawsuit raised arguments that the works were substantially similar due to the following factors one, similar thematic content of guns, money and jewelry two, that they were both in the key of e and three, that they had the same chorus and verse structure. The lawsuit also named some of future’s companies, his producer and Sony Music Entertainment as defendants. The suit sought injunctive relief damages, a running royalty and litigation costs, among other relief.

    Scott:
    Future’s team filed a motion to dismiss, arguing that Robinson did not adequately allege the protectable elements of ‘When You Think About It’ were copied. They argued that both the songs repeat exceedingly commonplace phrases when you think about It and when I think about it, and both include commonplace themes of guns, money and jewelry.

    Jamie:
    That’s right. Then Robinson’s team filed an opposition to the motion, citing that there are a lot of questionable similarities between the two works and that the lyrical theme, content, structure and rhythm are identical. But Judge Martha Picold of the District Court of the Northern District of Illinois disagreed, ruling that it didn’t matter whether Future had copied Robinson’s song because the material he allegedly borrowed, even if he did so, was not covered by copyright in the first place.

    Scott:
    That’s right. Citing other examples, including tracks from Biggie, Kanye West and Neil Young. That’s an interesting trio, if you think about it. She notes that thematic elements that are frequently present in certain genres of music place them outside of the protections of copyright law. This was the same argument that won the dismissal of the lawsuit against Kanye West over the lyrics what doesn’t kill you makes you stronger. In his 2017 hit track Stronger, Judge Picold writes that quote first and most critically, the phrase quote when you think about it or quote when I think about it is not entitled to copyright protection. It’s a fragmentary expression that is commonplace in everyday speech and ubiquitous in popular music. And we have previously discussed the lack of copyright protection for short phrases. According to the Copyright Office, short phrases such as slogans are uncopyrightable because they contain an insufficient amount of authorship. And even though the phrases are used in similar places and in similar ways in both songs, in the chorus of both songs, it’s still not enough to show that the two songs are substantially similar. The order states the judge also rejected Robinson’s argument that the works are substantially similar because they have similar thematic content, guns, money and jewelry, finding that those elements are frequently present in hip hop and rap music, again putting them outside of copyright protection.

    The judge writes that this argument fits within the song’s affair doctrine that’s right.

    Scott:
    Where elements of a work are indispensable, or at least standard in the treatment of a given topic, their songs are fair and they receive no protection. In addition, the judge rejected Robinson’s argument that the songs are substantially similar because they are both in the key of E, saying that several courts have held that the keys of a song do not make the song distinct.

    Jamie:
    So, the motion to dismiss was granted, finding that though unprotectable elements can be protectable elements at times, in combination, the similar parts of the two songs, Robinson pointed out, were not protectable elements and were merely small cosmetic similarities, falling short of what really would be needed for valid copyright infringement. This case and the decision leads to the prevalent discussion of what’s permissible and what’s not in the music space. And how can an artist or producer really be confident that a track will not lead to a lawsuit? We’ve seen a rise in music copyright lawsuits with artists and producers suing each other over the use of samples or lyrics or musical structure, and the results of case findings really seem to be inconclusive and certainly difficult to navigate.

    Scott:
    It is challenging. I will agree to navigate the various music copyright infringement cases, but with regard to this case, the results in this case are not surprising. We have seen this before. The 9th Circuit has a two-part test to determine copyright infringement, and that’s known as the extrinsic and intrinsic test. The extrinsic test is objective in nature and requires the plaintiff to identify specific criteria which it believes to have been copied, which Gutta did. But this is where the court sorts out whether there’s enough similarities between the works as to the elements that are protectable, such that a reasonable jury could find that the defendant’s work is substantially similar. The extrinsic test requires that the court review the works, the allegedly infringing elements, and then filter out the unprotectable elements and then decide whether, as a matter of law, the remaining similarities are sufficient to allow the case to go forward. And that’s what the court did here. It looked at the elements that were put forth by Gutta as being similar. The court found all of those elements to be unprotectable, and as a result, the court dismissed his infringement case, finding that, as a matter of law, there were no similarities sufficient to allow the case to go forward.

    Scott:
    Unpredictable elements, whether they’re short words, common themes or musical building blocks or chord progressions that were, for example, the basis of the Ed Sheeran Marvin Gaye lawsuit, are and need to remain available to all creators to use as part of their creative endeavors. As important as it is to protect the protectable aspects of a creator’s work, it’s equally important to protect the status of those elements that are unprotectable as a matter of law and make sure that they are available for all creators to use.

    Jamie:
    I agree. Thanks, Scott.

    Scott:
    Thank you for listening to this episode of The Briefing. We hope you enjoyed this episode. If you did, please remember to subscribe, leave us a review, and share this episode with your friends and colleagues. If you have any questions about the things we covered today, please leave us a comment. We’d be glad to reply.


    Court Rejects Dirt.com’s Post-Warhol Fair Use Defense in Photographer’s Copyright Lawsuit Sep 22, 2023
    Show notes

    A photographer is suing a real estate media site for copyright infringement after publishing several of his photos without permission. Scott Hervey and Jamie Lincenberg discuss this case and explain how media companies can handle similar situations in a post-Warhol world on this episode of The Briefing.

    Watch this episode on the Weintraub YouTube channel here.

    Show Notes:

    Scott:
    One of the recent copyright infringement cases post the Supreme Court’s decision in Warhol is Brandon Vogts, I hope I’m pronouncing that correctly. Brandon Vogts vs. Penske Media Corporation. This case involved the display of Vogts photographs in connection with various articles appearing on Penske’s Dirt online media site. I’m Scott Hervey from Weintraub Tobin. I’m joined today by my colleague Jamie Lincenberg. We are going to take a look at this case and talk about how online media companies can deal with similar situations in a post-Warhol world, on this next installment of The Briefing by Weintraub Tobin.

    These are the facts of this case boots is a professional photographer who specializes in real estate photography. His clients include real estate companies, real estate agents and interior designers. The majority of these clients are real estate agents who retain Vogts to photograph a property to facilitate its sale. Dirt.com is an online news publication owned by Penske Media Corporation. Dirt publishes material on real estate transactions involving persons in the entertainment industry or prominent business persons. Dirt’s articles are intended to provide a unique peek into those individuals’ lifestyle. Dirt published various articles about transactions involving certain properties and used Vogts photographs in connection with those articles. Vogts eventually sued for copyright infringement.

    Jamie:
    And, Dirt advanced a fair use defense. Dirt claimed that it featured the photographs to provide readers with what he believed was a unique insight into the lifestyles of individuals who were involved in the transaction, including commentary and critique of the property featured in the photographs, and used only those photographs that Dirt Publishers believes were necessary to do so. After both parties moved for summary judgment, the Supreme Court ruled on Andy Warhol Foundation for the Visual Arts versus Goldsmith.

    Scott:
    Finding that Boots had established a prima facial case of copyright infringement, the court turned to Dirt’s fair use argument. Now, to determine whether a work constitutes fair use, courts engage in a case by case analysis and a flexible balancing of four factors. Those factors are one, the purpose and character of the use, including whether such use is of a commercial nature or for a nonprofit educational purpose. Two, the nature of the copyrighted work that is allegedly infringed. Three, the amount and substantiality of the portion used in relation to the infringed work as a whole. And four the effect the use will have on the potential market for or value of the original copyrighted work.

    Jamie:
    The first factor assesses whether the use is transformative, as established in the Supreme Court case of Campbell versus Acuff Rose Music. Transformativeness occurs where the new work adds something new, with a further purpose or different character, altering the first with new expression, meaning or message right.

    Scott:
    And that has been the traditional test for transformativeness. But now the Warhol decision requires courts to ask, as part of examining transformativeness, whether and to what extent the use at issue has a purpose or character that is different from the original, and whether that different purpose supports a justification for copying. So now the first fair use factor will analyze whether the purpose of the use of the second work is different enough from the first to reasonably justify a copying. Under the Warhol decision, a transformative use cannot be found for any use that just adds some new expression, meaning, or message. Now, the purpose of the use must be distinct enough from the purpose of the original use in order to justify a copying. For example, in Warhol, the Supreme Court said that The Orange Prince, which was Warhol’s work, can be perceived to portray Prince as iconic, whereas Goldsmith’s portrayal was photorealistic. But the purpose of the use was to illustrate a magazine about Prince with a portrait of Prince. And the difference between illustrating a magazine about Prince with a portrait of Prince and portraying Prince somewhat differently from Goldsmith’s photograph, with no attendant critical bearing on her photograph, was not enough to justify the copying.

    Jamie:
    Dirt argued that its use is for a different purpose. Boot’s use is to portray the property in connection with the marketing of the property for sale, while Dirt’s use is to provide commentary on the lifestyles of various celebrities who either purchased or sold the property. The court said that’s not enough, right?

    Scott:
    That’s right. The court said that this commentary commenting on celebrity lifestyle is at Campbell’s lowest ebb. And because Dirt’s use had no critical bearing on the original work, so no commentary on the original photographs themselves, the court said that there is little justification for the copying. So the court found the first fair use factor weighed in favor of Vaught and against the finding of fair use. Now, the court went on to examine the remaining fair use factors and found them all to favor Vaught as well. So in the end, the court ruled against Dirt and ruled in favor of Vogts on this fair use defense.

    Jamie:
    So, Scott, what should we take away from this case?

    Scott:
    Yeah, so in a previous podcast on the effect of the Warhol decision on documentarians and documentaries, I theorized that the use of a third-party photo or a video clip in an audiovisual documentary in the context of a biographical anchor is likely dead. I now summarize that this case is the proverbial nail in the coffin. If a subsequent user isn’t using an existing work for criticism or commentary of the underlying work or in a manner that is transformative in both context and purpose, then there will be no fair use.

    Jamie:
    Thanks, Scott. That’s really interesting and really helpful to know moving forward.

    Scott:
    Thanks for listening to this episode of The Briefing. We hope you enjoyed this episode. If you did, please remember to subscribe and leave us a review and share this with your friends and your colleagues. And if you have any questions about the topics we covered today, please leave us a comment.


    Failure to Disclose Relationship with Real Party in Interest Results in Serious Sanctions Sep 15, 2023
    Show notes

    Failure to disclose certain relationships with a third party may result in significant consequences from the court. Scott Hervey and Eric Caligiuri talk about this on this episode of The Briefing.

    Watch this episode on the Weintraub YouTube channel here.

    Show Notes:

    Scott:
    In our last discussion with my colleague Eric Caligiuri, we looked into a case where a federal court denied discovery request aimed at uncovering details surrounding the financing of a plaintiff’s patent litigation case. Today, we are going to discuss a case where a failure of one party to disclose certain relationships with a third party resulted in significant consequences. On this installment of The Briefing by Weintraub Tobin. Welcome to another installment of The Briefing. I’m Scott Hervey. I’m joined today by my colleague, Eric Caligiuri. Eric, thank you for joining us.

    Eric:
    Thanks, Scott. Great to be here.

    Scott:
    So, Eric, you wrote an interesting article on the case of Ventex versus Columbia Sportswear of North America. Similar to the last case we discussed, go to Streaming versus Netflix. This case, the Ventex case, deals with litigation financing and how the failure to disclose or possibly the attempt to hide critical information showing a financial relationship between two parties interested in the outcome of a certain proceeding can impact that legal proceeding. Eric, can you break down the key details of the case?

    Eric:
    Yes, absolutely. In this case, we have ventex comp versus Columbia Sportswear of North America. It centers around an inner parties dispute filed by Ventex. An inner parties dispute, or an IPR, is a proceeding before the Patent Trial and Appeal Board of the USPTO. Basically, it’s an administrative proceeding similar to a district court litigation similar to litigation, except a little more streamlined and presided over by an administrative law judge at the PTAB. And basically, the only remedy is to consider the validity of a patent. So, essentially, what happens is someone who may think that either a patent is invalid or patent has been asserted against them, they can file a challenge to that patent at the PTAB, and that dispute is called an IPR. In this case, the PTAB found that Ventex failed to disclose a variety of information asserting Ventex’s relationship with a company called Sirius Innovative Accessories, Inc. In response to discovery request by Columbia, the PTAB found that this failure to disclose led to unnecessary delays in the proceeding. As a result, the PTAB dismissed the proceeding and awarded over $32,000 in sanctions to Columbia, who was the patent owner. Columbia’s motions for sanctions was based on a contention that Ventex petitions were time-barred, meaning they didn’t file the IPRs in time, and therefore the PTAB should not have initiated the IPRs to begin with.

    Scott:
    So, Columbia’s argument revolved around Ventex’s nondisclosure of its relationship with Serious Innovative Accessories, which Columbia argued was both a proxy of Ventex and a real party in interest. The board agreed with Columbia, leading to dismissal of Ventex’s petitions and the termination of the IPRs and sanctions against Ventex. So what was the crux of Columbia’s argument in terms of the relationship between Ventex and Sirius?

    Eric:
    Yeah. So Columbia relied heavily on two prior agreements, a supplier agreement from 2013 and a 2016 exclusive manufacturing agreement. These documents illustrated a preexisting business relationship between Ventex and Sirius, suggesting that they shared a mutual interest in invalidating the patents. Columbia argued that payments tied to the Exclusive Manufacturing Agreement suggested a link between Sirius and the funding of the IPRs, which Ventex may have had difficulty funding on its own. This demonstrated a strong connection between Ventex and Sirius, essentially implying that Ventex was acting as a proxy for Sirius in these proceedings.

    Scott:
    And it seems that Columbia’s argument gained traction when the PTAB noted that the Exclusive Manufacturing Agreement was obtained through additional discovery. After Columbia’s motion, the existence of this agreement seemed to play a pivotal role in establishing Sirius as a real party and interest and a proxy for Ventex. After this was uncovered, Colombia moved for sanctions, right?

    Eric:
    That’s right, yeah. Columbia contended that Ventex withheld over 2000 pages of communications related to these agreements and to the funding arrangement, while also misrepresenting the scope of their document production. Columbia also alleged that Ventex’s destruction of the Exclusive Manufacturing Agreement and related emails to that amounted essentially to a spoliation of evidence. Lastly, Columbia claimed that Ventex’s corporate witness made false statements under oath about the existence of the agreement and the subject matter of the agreement.

    Scott:
    Those are some pretty serious allegations. What was ventex’s response?

    Eric:
    Well, Ventex argued that it had put a proper litigation in hold in place before beginning the IPRs, which basically means that nothing is supposed to be destroyed related to the patent, related to the agreements, related to the scope of litigation, and that it had voluntarily produced documents that weren’t necessarily covered by the request. They also denied destroying evidence and mentioned that emails were deleted by a former employee prior to the litigation hold being put in place in the normal scope of their business.

    Scott:
    I mean, I don’t know about you, Eric, but those arguments seem pretty weak to me. And I guess the PTAB agreed. Right? Because the PTAB sided with Columbia and ultimately concluded that Ventex’s failure to disclose the agreements caused unnecessary delay and increased cost of the proceeding. And it also resulted in the dismissal of Ventex’s IPRs. I mean, this all probably could have been avoided with prompt and transparent disclosure, but I assume that’s what Ventex was trying to avoid.

    Eric:
    Yeah, exactly. That’s right. As a result, the PTAB dismissed the proceedings and awarded Columbia sanctions over $32,000. Basically, what the dismissal means is, as I said before, in a PTAB action or an IPR, the sole remedy is invalidating patents. So, this basically means that they weren’t able to invalidate the patents, which means that patents now that’s kind of stepping back a bit. When you’re accused of patent infringement, one of your biggest defenses is that the patents may be invalidated or maybe invalid. So basically, you still possibly can challenge them in district court. But a district court judge is going to lean pretty heavily on the PTAs finding in an IPR, essentially meaning that it’s much more difficult to now invalidate those patents in a district court proceeding if they ever get asserted against them.

    Scott:
    That’s really interesting.

    Eric:
    Yeah. This case sort of highlights that. Failure to disclose not only can mean losing the IPR and having the patents remain valid, but it can also lead to pretty substantial sanctions, including monetary sanctions, similar to any sort of discovery, not just in front of the PTAB, but any litigation in any court. You need to be transparent and forthright discovery and document production, or not only could you lose the case, but you can be hit with pretty heavy sanctions as well.

    Scott:
    That’s very interesting, Eric. And the lesson for the day, I guess, is transparency and discovery, whether it’s in front of the PTAB or any federal exactly.

    Eric:
    Yes, exactly.

    Scott:
    Thanks for talking with us today, Eric. Yep. Well, that about wraps it up for this installment of the Briefing by Weintraub Tobin. Please remember to subscribe to our YouTube channel and to our podcast.


    How to Avoid Bearing The Risks of A Naked License Sep 08, 2023
    Show notes

    In Blue Mountain Holdings v. Bliss Nutraceuticals, the 11th Circuit upheld a U.S. District Court finding that Lighthouse Enterprises issued a naked license to Blue Mountain, which covered the trademark in question. Scott Hervey and Eric Caligiuri discuss this case and how to avoid bearing the risks of a naked license in this episode of The Briefing.

    Watch this episode on the Weintraub YouTube channel here.

    Show Notes:

    Scott:
    The trademark dispute in Blue Mountain Holdings versus Blitz Nutraceuticals ended with the 11th Circuit upholding the finding by the US. District Court for the Northern District of Georgia that Lighthouse Enterprises had issued a naked license to Blue Mountain, which covered the trademark that was the basis for the dispute. We’re going to talk all about the naked license on this installment of The Briefing by Weintraub Tobin. Thanks for joining us today. My name is Scott Hervey. I’m joined by my colleague, Eric Caligari. Eric, thanks for joining us today.

    Eric:
    Thanks for having me, Scott.

    Scott:
    Eric, can you give us some background on the case of Blue Mountain Holdings versus Bliss Nutraceuticals?

    Eric:
    Yes, of course. Lighthouse Enterprises and Blue Mountain Holdings initially sued Bliss in April of 2020 for federal trademark infringement, federal cybersquatting, and federal trademark dilution, along with some other claims. The lawsuit was based on their ownership of the trademark, Vivazen Botanicals claimed that had been selling Vivazen products since 2012 and registered the name as a trademark with the United States Patent and Trademark Office in 2017. Blue Mountain claimed that it acquired the Vivazen trademark and a 2019 purchase agreement with Lighthouse. Bliss claimed that this purchase agreement was really a license. The district court agreed with Bliss and found that the purchase agreement was really a license and that this license became a naked license when Lighthouse failed to police Blue Mountain’s use of the trademark. This resulted in the abandonment of Lighthouse’s rights in the trademark, and the 11th Circuit upheld the district court’s findings.

    Scott:
    While this case itself is very interesting, and it’s probably far from being over, what I want to focus on today is the ramifications of the court’s finding that the transaction between Lighthouse and Blue Mountain was a naked license. A naked license refers to a situation where a trademark owner grants permission to another party to use a trademark, and that trademark owner does not maintain proper control over the quality and nature of the goods or services associated with that trademark. In other words, it’s a license that lacks the necessary safeguards to ensure that the trademark’s reputation and distinctiveness are maintained. The nakedness of a license isn’t judged by whether the licensor allows product quality to suffer. It’s whether the license or is keeping an eye on product quality, and whether, in other words, it has abandoned quality control or not. If it has, the license is naked and the trademark is abandoned.

    Eric:
    Yeah, and if a trademark is abandoned, whatever rights the mark owner may have had in the mark are also abandoned. It’s quite a serious situation and result to avoid.

    Scott:
    I agree. And given this, let’s talk about how to avoid the granting of a naked license.

    Eric:
    Yeah, sure. Well, first of all, when entering into a license agreement, that agreement should be in writing, and the right agreement should fully outline the terms and conditions that the licensee must adhere to. These terms should include provisions such as quality control and the consequences of failing to meet those quality control standards.

    Scott:
    And it’s not enough that the agreement includes proper quality control language; but it’s imperative that the trademark owner actually exercise proper control over the products or services that are associated with the trademark. This can include setting quality standards, providing guidelines, and periodically inspecting the products or services to ensure that they meet those standards. This was emphasized by the 11th Circuit’s ruling, in which it noted that the record in the case showed that Lighthouse engaged in no meaningful supervision or inspection of the products bearing the Vivazen mark.

    Eric:
    And in exercising its quality control rights. It’s also important that there be consequences if the mark owner abjures any deviations from the agreed-upon quality standards and tries to enforce those consequences to make sure that they’re being adhered to.

    Scott:
    Agreed. The licensing agreement should include a clause that allows the license or to terminate the license if the licensee fails to meet the agreed-upon quality standards or breaches other terms of the agreement.

    Eric:
    Agreed. And thanks for bringing this case to our attention for highlighting the pitfalls of the naked license and ways to try to avoid that outcome.

    Scott:
    Absolutely, Eric.

    Eric:
    Well, that about wraps it up here. Thanks for joining us on the briefing. By Weintraub Tobin. Hope you enjoyed today’s episode. Please remember to subscribe to our podcast and to our YouTube channel.


    A Prototypical Corporate Salesperson is Not Patentable Sep 01, 2023
    Show notes

    The Federal Circuit Court of Appeals invalidated seven patents owned by an AI technology company after applying the two-step Alice test. Scott Hervey and Audrey Millemann talk about this decision on this episode of The Briefing.

    Watch this episode on the Weintraub YouTube channel here.

    Show Notes:

    Scott:
    Under the Alice test for patent subject matter eligibility, the Federal Circuit Court of Appeals continues to strike down patents directed to abstract ideas. The case of People AI, Inc. V. Clary, Inc. was just such a case in which the Court invalidated seven patents owned by People AI. We are going to talk about this case and the Alice test on this next installment of The Briefing by Weintraub Tobin. Welcome to another episode of The Briefing by Weintraub Tobin. I am joined today by my partner, Audrey Millemann, a patent attorney who wrote an intriguing article titled a Prototypical Corporate Salesperson Is Not Patentable. We’ll be discussing the recent People AI v. Clary, Inc. Case and its implications on patent subject matter eligibility under the Alice test. Welcome, Audrey.

    Audrey:
    Hi, Scott. How are you?

    Scott:
    Great to have you here today, Audrey. So, let’s start by discussing the Alice test for patent subject matter eligibility. Can you explain the two-part test established by the Supreme Court in the 2014 case of Alice Corp. Versus CLS Bank International?

    Audrey:
    Yes, I can. Patent subject matter eligibility refers to whether an invention falls within categories of subject matter that can be patentable. So that’s referred to as patent eligible subject matter and by statute. And that’s federal statute. Section 101 of Title 35 of the United States Code provides that there are four categories of patent eligible subject matter, and they are articles of manufacture, machines, processes, and compositions of matter. And there are exceptions to those categories of patent eligible subject matter which the courts have decided over the years. And they include things like natural phenomenon, laws of nature, and abstract ideas. And those things are deemed to fall within patent ineligible subject matter, meaning they are not something that can be the subject of patent protection. So, the Supreme Court in Alice in 2014 developed a test for determining whether a claimed invention falls within patent ineligible subject matter, meaning whether it is something that is not eligible for patent protection. It’s a two-part test. And under the first step, the Court examines whether the invention falls within one of those types of ineligible subject matter, meaning natural phenomena, laws of nature, or abstract ideas. And if the invention falls within one of those categories, then the Court would proceed to step two.

    Under step two, the Court looks to see if there is some kind of inventive concept or something that improves the technology such that it takes it out of the patent ineligible subject matter and makes it into patent eligible subject matter. Now, this is a very complicated test, and courts have been struggling with how to apply it for years. Since it was decided.

    Scott:
    In the People AI versus Clary case, the Court invalidated seven patents owned by People AI based on the Alice test. Can you explain the basis of that Court’s decision?

    Audrey:
    Yes. People AI is a company that provides business analytics or software for customer relations management. So, they developed software that would take the notes and contacts that a salesperson would have. So, their notes of meetings, telephone calls, emails, and the software would automatically match it up to the particular customer that was involved. So, this was previously done by salespersons with using a pen and a notebook. And People AI developed software that would automate that process, which made it much more reliable, more accurate, so it would be less errors and much faster. And they patented that software, which basically was a data management kind of a system.

    Scott:
    And People AI sued Clary Inc. And Set Sail Technologies, Inc. For patent infringement. Correct.

    Audrey:
    Yes, they did. The defendants were competitors of People AI, and they sued them for People AI sued them for patent infringement of seven of their patents. The defendants then moved for judgment on the pleadings in the district court arguing that those patents were invalid because they were directed to patent ineligible subject matter, meaning abstract ideas. The district court applied the Alice test, as we’ve discussed it, and found that, yes, the patents are invalid because they are directed to abstract ideas. They’re directed to what a salesperson would do. And automating what people used to do manually does not make something patentable. The Federal Circuit, which is the Court of Appeal that addresses all appeals from patent infringement cases, affirmed the district court’s decision and held that automating that previously manual process doesn’t necessarily lead to patentable subject matter.

    Scott:
    Now, the court’s ruling seems to emphasize the importance of an inventive concept. Can you shed some light on why the court deemed these patents as lacking such a concept?

    Audrey:
    Well, yes, although it’s difficult because, as I said, that test is very complicated. But the decision hinged on the fact that the court believed there was no inventive concept, there was nothing in the invention that would transform and that’s a key word that the Supreme Court used that would transform patent ineligible subject matter, an abstract idea, into something that was patentable. And the Supreme Court has been very clear that simply using a computer to automate something that has previously been done manually doesn’t add an inventive concept. You need something that changes the technology or transforms it beyond merely automating.

    Scott:
    It very interesting. So, with that in mind, what are some key takeaways for inventors and companies looking to patent their inventions after this ruling?

    Audrey:
    Well, the key takeaway is really that companies need to be very cautious about trying to patent things that are simply transforming manual processes into automated or computer managed processes. They have to be very cautious in doing that and consider, is there something about their invention? Can they describe something about their invention that transforms what is an abstract idea into something that is more patent eligible?

    Scott:
    And with the Alice test being used to reject patent claims during the examination process and invalidate patents in courts, how can applicants better navigate this framework to improve their chances of obtaining a patent?

    Audrey:
    Well, the first thing they can do is to carefully analyze what their invention is, to determine if it really does fall within patent ineligible subject matter. And if it does, it may be worth considering whether one should apply for a patent at all. If the decision is made to go forward and apply for a patent in such a situation, then the goal is to try to describe the invention in such a way that there is an inventive concept, or that the invention transforms what is something ineligible into something that is eligible subject matter. And also important in that is the patent attorney who is drafting the patent application. That person has to be very careful and thoroughly drafting to make sure that they describe whatever possible inventive concepts the invention has. And also, they need to be thorough in their arguments with the Patent Office, because that prosecution of the patent is going to go on for several years. They need to be very careful in arguing to try and demonstrate that the invention does, in fact, have an inventive concept beyond simply automating a previously manual process.

    Scott:
    Well, Audrey, thank you very much for shedding light on People AI versus Clary Inc. And the complexities of patent subject matter eligibility under the Alice test. You always do a really great job of making complex matters a little bit more understandable, and this discussion certainly helped me better appreciate the importance of inventive concepts when seeking patents. The road to patent protection will always have its challenges, but with the right approach, inventors and companies can safeguard their innovations effectively. Again, Audrey, thank you so much. It was a pleasure having you on the briefing.

    Audrey:
    And thanks, Scott, for having me.

    Scott:
    Well, that wraps it up for today’s episode of The Briefing by Weintraub Tobin. We hope you found this discussion interesting and valuable. Please remember to subscribe to our podcast and to our YouTube channel so you never miss an episode.


    Deepfakes vs Right of Publicity: Navigating the Intersection Between Free Speech and Protected Rights Aug 25, 2023
    Show notes

    The rise of deepfakes is a growing concern within the entertainment industry. Scott Hervey and Jamie Lincenberg discuss this and the intersection between free speech and protected rights on this episode of The Briefing.

    Watch this episode on the Weintraub YouTube channel here.

    Show Notes:

    Scott:
    Deepfakes and AI-generated likeness are not just the concerns of striking actors. Just ask Drake, The Weeknd, and UMG, a Drake and Weeknd collaboration that busted the Internet in May of this year wasn’t real. It was generated by AI and made to sound like the performers. Where is it that current write of publicity laws work? And in what situations do they fail to address the scenarios presented by Deepfakes and AI-generated images? We are going to talk about this next on The Briefing by Weintraub Tobin. Let’s first identify the type of AI output that triggers the right of publicity concerns. It’s visual likeness and appearances, and then it’s also voices or vocal likeness. California’s right of publicity statute is Civil Code section 3344, and it prohibits the use of another’s name, voice, photograph, or likeness on or in products, merchandise, or goods, or for the purpose of advertising or selling such products, merchandise or goods without such person’s prior consent. California also has a common law right of publicity that’s a bit broader than the statute. But whereas a celebrity’s likeness isn’t being used on or in products, merchandise, or goods, or for the purpose of advertising or selling such goods, California’s right of publicity statute isn’t applicable, really.

    As for a common law claim, even though common law provides for a broader right of publicity protection than the statute, the First Amendment may prevent any recovery. Generally, a claim for common law appropriation will not stand in the case of an expressive work due to First Amendment concerns.

    Jamie:
    So, Scott, it seems well settled that where a celebrity’s likeness, whether that be visual or vocal, is used in connection with the advertising or sale of goods or services, consent of that celebrity is required. The void seems to be where that celebrity’s likeness is used in an expressive work.

    Scott:
    That’s true, Jamie, and void is a good way of putting it since it’s not clear that this void is a shortcoming or some type of legal failure, or rather the greater importance of the First Amendment. Take, for example, the AI Drake song. Section 114 B of the copyright act permits sound-alikes. A publication of the US. Copyright Office specifically says that under U.S. Copyright law, the exclusive rights in a sound recording do not extend to making independently recorded sound-alike recordings. Copyright protection for sound recordings extends only to the particular sounds of which the recording consists and will not prevent a separate recording of another performance in which those sounds are imitated. The imitation of a recorded performance, no matter how similar to the original, would not constitute copyright infringement, even where one performer deliberately sets out to simulate another performance as exactly as possible. To extend a state right of publicity to cover the use of a celebrity’s vocal likeness in an expressive work like the A. I. Drake Song would put a law in effect that directly conflicts with the Copyright Act.

    Jamie:
    Let’s talk about New York’s right of publicity statute. In particular, section 50 F of New York’s Civil Rights Law, which took effect in 2021. This law addresses and prohibits certain uses of AI-generated lookalikes or digital replicas of deceased performers. The law prohibits the use of a deceased performer’s digital replica in a scripted audiovisual work, as a fictional character, or for the live performance of a musical work if the use occurs without prior consent from the owner of the publicity rights in the deceased celebrity. And if the use is likely to deceive the public into thinking it was authorized by that person, might that work as a potential model if it were also applicable to live celebrities?

    Scott:
    It may, but that statute has a rather large exception. Basically, a use is deemed not to be likely to deceive the public into thinking the use was authorized if the producer includes a disclaimer in the credits of the scripted audiovisual work or in any related advertisements in which the digital replica appears. Also, it’s not clear that this statute would hold up under a constitutional challenge.

    Jamie:
    And why is that?

    Scott:
    The prohibition of using a digital replica in a fictionalized audiovisual work may run afoul of the First Amendment. Noncommercial speech gets heightened protection under the First Amendment. We previously discussed this when we discussed Olivia de Havilland’s lawsuit against FX regarding her portrayal in Feud. In the court’s opinion, it assumes, for argument’s sake, that a television program is a product, merchandise, or good, and that Catherine Zetta Jones, that was who portrayed Olivia de Havlin and Zetta Jones’ portrayal of de Havlin constitutes a use of Dehavelin’s name or likeness within the scope of the right of publicity statute. Feud, the Court notes, is speech that is fully protected by the First Amendment, which safeguards the storytellers and artists who take the raw materials of life, including the stories of real individuals, ordinary or extraordinary, and transform them into art, be it articles, books, movies or plays. The Court said that the fact that FX did not purchase or otherwise procure de Havilland’s rights to use her name or likeness did not change the court’s analysis. The Court stated that film and television producers may enter into rights agreements with individuals for a variety of reasons. However, in this case, the First Amendment simply did not require such an acquisition agreement.

    Jamie:
    But in Feud. de Havilland was portrayed by Catherine Zeta-Jones, not a digital replica.

    Scott:
    That’s true, but should that change the analysis? Jamie? Should it make a difference if de Havilland was portrayed by Zetta Jones or a digital replica? I don’t know that it should make a difference.

    Jamie:
    So what’s to stop the use of de Havilland digital replica to play a character not herself in a modern-day drama? This is what the actors are concerned about.

    Scott:
    I understand that concern because the law isn’t really settled in that area. So, do we need a new state or federal right of publicity law that would require consent for the use of AI-generated likeness for an expressive work? And how would that hold up to a constitutional challenge?

    Jamie:
    This consent-based approach could empower individuals to control the use of their identities, preventing unauthorized deep fakes and the commercial exploitation of AI-generated likenesses. But would that be at the expense of free creative expression?

    Scott:
    I understand the concern because the state of the law really isn’t clear, and for guidance, we have to interpret how older cases that don’t fall squarely into our hypothetical may affect the Court’s reasoning. But I think we may have some solid jurisprudence that would give guidance to a court addressing a case like our de Havilland hypothetical. Assuming that de Havilland didn’t contractually agree to give the studio this right, the right to use an AI-generated likeness in other motion pictures or audiovisual productions. Maybe the 1977 Supreme Court case of Zucchini versus Scripps Howard Broadcasting may provide some guidance.

    Jamie:
    The human cannonball case.

    Scott:
    That’s right.

    Jamie:
    That case was about a reporter who taped Zucchini’s entire act without consent and then showed the act on a television news program later the same day.

    Scott:
    Right. See, that case had the same tension between right of publicity and the First Amendment, the First Amendment’s protection of fully protective expressive speech. The lower court acknowledged Zucchini’s right of publicity claim under state law, but the Court said that the news station’s inclusion of the recording of his act and their newscast was constitutionally privileged and that the news station could include that recording as a matter of public interest. On appeal, the Supreme Court distinguished this case from the prior cases on which the lower court relied on by observing that these lower cases involved the reporting of events, not the broadcasting or publishing of an entire act for which the performer ordinarily gets paid. The Supreme Court said that the First and 14th Amendments do not immunize the media when they broadcast a performer’s entire act without his consent. The Court continued to say that the Constitution no more prevents a state from acquiring respondent, meaning the news station, to compensate petitioner the performer for broadcasting his act on television than it would privilege respondent to film and broadcast a copyrighted dramatic work without liability to the copyright owner. The Court continued by saying that the broadcast of a film of the performer’s entire act poses a substantial threat to the economic value of that performance.

    Scott:
    As the Ohio Court recognized, this act is the product of the performer’s own talents and energy, the end result of much time, effort, and expense. Much of its economic value lies in the right of exclusive control over the publicity given to his performance. If the public can see the act for free on television, it will be less willing to pay to see it at the fair. The effect of a public broadcast of the performance is similar to preventing the performer from charging an admission fee.

    Jamie:
    And if a studio is allowed to use a digital replica of de Havilland playing a fictional role in a new movie she never consented to star in. That studio will be less willing to pay her to actually star in that movie.

    Scott:
    There is a quote from the Supreme Court that goes to the heart of this concern over AI. And the quote is as follows the broadcast of the petitioner’s entire performance, unlike the unauthorized use of another’s name for purposes of trade or the incidental use of a name or picture by the press, goes to the heart of the petitioner’s ability to earn a living as an entertainer. The Supreme Court reversed the lower court’s finding that the news broadcast of the entire act was privileged under the First Amendment. I do think that a court hearing a case about our hypothetical digital replica of de Havilland playing a fictional role in a new movie she never consented to star in may look to the Supreme Court case for guidance.

    Jamie:
    I can see that, too. But I also understand that the unsettled nature of this situation creates a cause for concern. Scott, thanks for sharing this today.

    Scott:
    Thanks, Jamie.

    Jamie:
    Thanks for joining us on today’s episode of The Briefing. Please remember to subscribe, like, comment, and follow along for future episodes.


    Shedding Light on ‘Willful Blindness’: Brandy Melville v Redbubble Aug 18, 2023
    Show notes

    In the case of Brandy Melville v Redbubble, a three judge appellate panel explored whether an owner of an online market place is liable for contributory trademark infringement. Scott Hervey and Jamie Lincenberg discuss this on this episode of The Briefing.

    Watch this episode on the Weintraub YouTube channel here.

    Show Notes:

    Scott:
    On today’s episode of The Briefing, we will be taking a dive into the Willful Blindness Doctrine which is highlighted by a recent filed opinion in the case between Redbubble and YYGM doing business as Brandy Melville, in which a three-judge appellate panel discussed what legal standard the district court should apply when examining whether an owner of an online marketplace is liable for contributory trademark infringement, which is committed by artists who sell products on its marketplace. I’m Scott Hervey of Weintraub Tobin, and I’m joined today by my colleague, Jamie Lincenberg. Jamie, thank you for joining us today.

    Jamie:
    Thank you, Scott. I’m happy to be here.

    Scott:
    Jamie, can you provide a quick recap of the lawsuit?

    Jamie:
    Absolutely. In 2021, Brandy Melville, a popular manufacturer of clothing, home goods, and other items, sued Redbubble for trademark violations alleging infringement of its registered Brandy Melville heart mark and La lightning mark. The defendant, Redbubble, owns and operates an online marketplace where artists can upload their own work to be printed on various products and then sold. Unlike other print on demand vendors, Redbubble outsources everything other than marketing and payment processing, so third party users upload their images, and third party manufacturers and other vendors produce and ship the ordered items. The district court had found Redbubble liable for one willful contributory counterfeiting of the heart mark and the lightning mark, two contributory infringement of those two marks, and three contributory infringement of unregistered trademarks that were Brandy Melville variations. After the jury’s verdict, the district court granted Redbubble’s motion for judgment as a matter of law on the contributory counterfeiting claim for the heart mark. The district court let the verdict stand for the remaining claims, and it denied Brandy Melville a permanent injunction, attorneys fees, and prejudgment interest. On Monday, the 9th Circuit appellate panel overturned much of the lower court’s findings and remanded for reconsideration of Redbubble’s motion for judgment as a matter of law, telling the district court to use the correct legal standard for what constitutes willful blindness, the doctrine we will explore in more detail today.

    Scott:
    This panel’s opinion vacates the district court’s order granting in part and denying in part Redbubble’s motion for judgment as a matter of law, and also vacated the district court’s denial of Brandy Melville’s motion to permanently enjoin Redbubble from referencing, mentioning, and or using Brandy Melville, brandy Melville’s registered trademarks and Brandy Melville’s unregistered trademarks. In reversing the lower court with respect to Redbubble’s contributory infringement liability, the panel held that a party is liable for contributory infringement when that party continues to supply its product to one whom it knows or has reason to know is engaging in trademark infringement. And a party only meets this standard if it is willfully blind to that infringement. So how do we determine whether a party is willfully blind to infringement?

    Jamie:
    In agreement with other circuit courts, the panel held that willful blindness requires the defendant to have knowledge of specific infringers or instances of infringement, general knowledge of infringement on the defendant’s platform, even of the plaintiff’s trademarks, is not enough to show willful blindness. Without the specific knowledge or awareness of specific instances of infringement, the defendant need not search for infringement on its own accord. As mentioned, other circuits have reached similar conclusions, including the Second, Fourth and 10th Circuits. One such case is Tiffany Inc. Versus eBay Inc. Which involved counterfeit Tiffany jewelry being sold on eBay. The Second Circuit held that a service provider must have more than general knowledge that its platform is being used to sell those counterfeit products in order to be liable for contributory trademark infringement.

    Scott:
    The panel in this case also discussed a non-presidential companion ruling, Atari Interactive versus Redbubble, in which the court again ruled in favor of Redbubble. In that opinion, the court said that most of the evidence Atari relied on to show that Redbubble was willfully blind was evidence of general infringement on Redbubble’s website, and not specific instances of users infringing. Atari’s marks. Atari’s evidence showed that when it notified Redbubble of specific infringing listings, Redbubble removed them as a large online marketplace. Redbubble’s response was reasonable, according to the court. At a minimum, the court said that the evidence did not show that Redbubble took active steps to avoid acquiring knowledge. Redbubble has said that they are pleased that the 9th Circuit agrees that they are not contributorily liable when third parties misuse Redbubble services to infringe without Redbubble’s knowledge, and that this ruling helps ensure that Redbubble can remain an open marketplace where hundreds of thousands of independent artists and designers can sell their creations.

    Jamie:
    So, Scott, as we wrap up here, I am left with a few questions. Based on this opinion, it seems that online marketplaces such as Redbubble, or even an Amazon or eBay would only be liable for user submitted trademark infringement when they have that specific knowledge of such infringement. And that seems here to be determined based on notice and takedown principles. And if the intention of the willful blindness doctrine is not equivalent to a notice and takedown, then exactly what facts would demonstrate willful blindness other than a disregarded takedown notice? The court doesn’t seem to address this here. Further to that, under the standard presented here, and compared to the elements of the DMCA copyright takedown notice, could a rights owner send a notice claiming that a specific product is always infringing, and thereby put the burden on the defendant to find and prevent every instance of that product on the site? In that same vein, it’s apparent that defendants would benefit from a statute specifying what constitutes a legally effective trademark takedown notice. The panel sidesteps this question, but will be an issue to keep an eye on moving forward.

    Scott:
    Jamie, these are all really great questions. Based on the 9th Circuit’s decision, it would seem that a notice similar to the type sent in a DMCA takedown, where the marketplace is given detailed and specific information of the counterfeit goods and the applicable seller, that type of notice would suffice. Based on the court’s opinion, I don’t think that a general notice to the marketplace that a type of product would infringe in all instances, and as you noted, thereby putting the burden on the defendant or the marketplace to find and prevent every instance of this product. I don’t think that would suffice. I don’t think that is detailed and specific enough to satisfy the knowledge qualifier that the court is looking for here. But given that this is a new development from the 9th Circuit, I’m certain that we’re going to see follow up cases on this. So thanks for bringing this to our attention, and we’ll be certain to watch for cases on this matter.

    Jamie:
    Absolutely.

    Scott:
    Well, that wraps it up for this installment of the briefing by Weintraub Tobin. Thanks for tuning in today. Please remember to subscribe to our podcast and to our YouTube channel and like and leave us a comment.


    No CTRL-ALT-DEL For the Server Test Aug 11, 2023
    Show notes

    Alexis Hunley v. Instagram has been referred to as one of the top copyright cases to watch this year. Scott Hervey and Jamie Lincenberg discuss this case on this episode of The Briefing.

    Watch this episode on the Weintraub YouTube channel here.

    Show Notes:

    Scott:
    It’s been referred to as one of the top copyright cases to watch this year. The case Alexis Hunley v. Instagram. It questioned the scope and validity of the server test, a copyright doctrine that was established by the 9th Circuit and has since been rejected by a number of other courts. The 9th Circuit has spoken, and we’re going to talk about this case on the next installment of the briefing by Weintraub Tobin. Alexis Hunley versus Instagram involved a potential class action claim against Instagram related to its embedding practice. The plaintiffs were two photojournalists whose photographs were featured on websites of various media outlets without a license. Hunley alleged that Instagram provided an embedding tool which allowed the photos or videos posted on an Instagram account to be simultaneously displayed on third party websites. Hunley alleged that these third parties who displayed her photos via the use of Instagram’s embedding tool, committed direct copyright infringement and that Instagram was secondarily liable for infringement.

    Jamie:
    Embedding is the process of copying unique HTML code assigned to the location of a digital copy of a photo or video published to the Internet, and the insertion of that code into a target web page or social media post enables that photo or video to be linked for display within the target post.

    Scott:
    The lower court tossed the case, holding that the third-party media companies that displayed the photographs Time and BuzzFeed, to name a few, were not liable for direct copyright infringement, and as a result, Instagram was not liable for secondary copyright infringement. The district court concluded that the 9th Circuit’s 2007 opinion in Perfect Ten versus Amazon, which established the server test, precluded relief. To Huntley to violate the public display right infringers must display copies of the copyrighted work. The district court held that the embedding websites do not store an image or video and do not communicate a copy of the image or video and thus do not violate the copyright owner’s exclusive display. Right under perfect Ten, an alleged infringer displays an image in violation of a copyright holder’s rights only if a copy of the image is embodied stored on a computer’s server or other storage device.

    Jamie:
    The court concluded that because Time and BuzzFeed did not store the image files on their actual servers, they were not liable for direct copyright infringement, and because there was no underlying direct infringement, Instagram could not be secondarily liable. The court invited the plaintiffs to raise their issue with the 9th Circuit if they believed the server test violated copyright law, and the photographers took the court up on its offer.

    Scott:
    In June 2022, the photographers filed an appeal with the 9th Circuit arguing for a review of the applicability of the server test. They claimed that the server test was outdated and impractical and argued that it had been widely rejected by virtually every court throughout the country that had considered the same issue.

    Jamie:
    In their appeal, the photographers argued that the server test is a technological loophole that did not exist when the Copyright Act was enacted by Congress, which has no support or explanation in the plain language of the Copyright Act and for which no public policy justification exists.

    Scott:
    The photographers also argued that the District Court went well beyond the scope of applicability of Perfect Ten. Perfect Ten applied to the use of embedded images in a search engine, not third-party website publishers. The plaintiffs contended that no court has expanded the server test to apply to embedding technology from Instagram or other social media platforms to third party website publishers.

    Jamie:
    The photographer’s appeal didn’t quite go as hoped. The 9th Circuit rejected their arguments that Instagram’s embedding tool violated their right of public display and also rejected all of their arguments for getting rid of or limiting the scope of the server test.

    Scott:
    That’s right. The Court rejected Hunley’s argument that the server test should only apply to search engines and should not extend to content embedded into commercial websites from social media platforms. The Court said that its holding in Perfect Ten did not rely on the unique technology of a search engine, but rather the plain language of the Copyright Act.

    Jamie:
    And the Court also rejected Hunley’s argument that the server test is inconsistent with the Copyright Act. Rather than address the specific challenges raised by Hunley, the Court simply said that it will not consider these arguments in any detail because they are foreclosed by Perfect Ten. This is due to the fact that the 9th Circuit can’t overrule its own holding in Perfect Ten outside of Bank proceeding unless there has been a statutory change or an intervening Supreme Court decision.

    Scott:
    The court also rejected Hunley’s argument that Perfect Ten has essentially been overruled by the Supreme Court’s decision in ABC versus Arrow. The Court noted that Arrow involved a different right the right of public performance and not the public display right. And the difference between these rights mandates a different form of analysis.

    Jamie:
    At the beginning of the Court’s opinion, a fair amount of time was spent discussing the technical aspects of embedding.

    Scott:
    Yeah, that’s true. It seems that the Court did this so that the readers of the opinion could understand the Court’s discussion of how the right of public display is infringed. The Court also drew an analogy of embedding to hypertext linking. Both are lines of code which cause a user’s browser to display an image at the target location. And generally, courts have found that hypertext linking is not direct infringement. Also, I think the Court was trying to point out that the host server retained full and complete control over the embedded image, that the host server can change the image. It can prevent the display of the image altogether by disabling the embedding functionality. And I think that control element was and is and remains an important element in the server test.

    Jamie:
    So, Scott, is this the end of the line for Hunley and the final challenge to the server test.

    Scott:
    It’s probably not the end of the line for Hunley, and it certainly is not the last challenge to the server test. The server test is the law of the land in the 9th Circuit, but it’s been rejected by judges in the Southern District of New York. So, there is bound to be a discussion in those states that have not officially weighed in yet. And maybe we’ll have a circuit split that may require the Supreme Court to weigh in. As for Hunley, the Court said that it can’t overrule perfect ten outside of an in-bonk review from the entire 9th Circuit Court or an intervening decision from the Supreme Court. So, it’s a fair bet that Hunley will go one of those two routes.

    Jamie:
    That’s really interesting, Scott. Thank you for sharing that with us. We will keep up with what happens with Hunley if there is an appeal.

    Scott:
    Yeah, we will definitely do that. Jamie, thanks for joining us today.

    Jamie:
    Thanks for having me.

    Scott:
    Well, that wraps it up for this installment of The Briefing by Weintraub Tobin. We hope you enjoyed this episode. Please remember to subscribe to our webcast and to our podcast asked and if you’re interested in more content, well, we have lots of episodes for you to.


    Zillow Loses Second Round of Copyright Fight Aug 04, 2023
    Show notes

    The Ninth Circuit recently issued an opinion affirming that Zillow infringed thousands of copyrights owned by a real estate photography studio. Scott Hervey and James Kachmar discuss this case on this episode of The Briefing.

    Watch this episode on the Weintraub YouTube channel, here.

    Show Notes:

    Scott:
    In 2019, the 9th Circuit affirmed the trial court’s judgment against Zillow Group based on Zillow’s use of VHT’s photographs on Zillow’s Digs platform. In June of this year 2023, this case found itself back up to the 9th Circuit. I’m joined by my partner, James Kachmar, to talk about this recent decision on this episode of The Briefing You. Thanks for joining us. I’m joined today by Weintraub litigation partner, James Kachmar. James, thanks for joining us today.

    James:
    Thanks, Scott, for having me.

    Scott:
    Certainly, James. Let’s start by providing some context for our viewers and listeners. Could you briefly explain the background of the case between VHT and Zillow Group?

    James:
    Sure, Scott. Everyone should know what Zillow is the website with homes for sale. VHT is the largest professional real estate photography studio in the US. It is generally engaged by real estate agents and brokers to photograph homes for sale. These photos are edited, loaded into VHT’s database, and then sent back to the agents and brokers pursuant to a license agreement to help promote their listings. VHT’s photographs appear on Zillow’s website one of two ways. First, Zillow will use these photographs as part of showing property listings on its website. Second, Zillow would feature some of these photographs on their website, Digs, to offer users or give people some home improvement ideas. VHT filed a copyright infringement lawsuit against Zillow, claiming that the photos were being used without their permission.

    Scott:
    In the previous trial, the 9th Circuit found in favor of Zillow on most counts, but reversed the findings of fair use. Regarding the use of the photos on the Diggs website. Could you elaborate on how the court reached that conclusion?

    James:
    Sure. The 9th Circuit in the first case, which is referred to as Zillow One, determined that Zillow had added searchable functionality on its Zigs website, which made it not a fair use of VHT’s photographs. They concluded that Zillow had committed copyright infringement in doing so. However, the court in Zillow One held that Zillow was not liable for direct, secondary or contributory infringement and remanded the case back to the district court for further proceedings. This resulted in further motion practice and a second trial.

    Scott:
    The 9th Circuit addressed the issue of copyright registration and whether VHT’s claims should be dismissed due to incomplete registration. Could you explain the court’s reasoning and how it applied the U.S. Supreme Court’s fourth estate decision?

    James:
    Sure. Just days before the 9th Circuit rendered its opinion in Zillow One, the US. Supreme Court issued its decision in Fourth Estate Public Benefit versus Wallstreet.com, in which it found that the registration requirement to bring a copyright infringement claim can only be satisfied when the Copyright Office has registered the copyright, not merely when the application for registration is filed by the plaintiff. When the case went back to the lower court, Zillow argued that because VHT had filed its lawsuit before the Copyright Office had registered its copyrights, the action should be dismissed. The lower court, however, found that dismissal would cause irreparable harm to VHT, especially given the extensive litigation to date, and held that excusing this requirement did not undermine the purpose of the Act’s pre-filing registration requirement. The 9th Circuit, on a second appeal, agreed with the court’s finding in this regard.

    Scott:
    The Supreme Court’s decision in Fourth Estate was due to what had been a split among the Circuits with regard to the requirement the pre-filing requirement of the registration copyright registration. The 9th Circuit had long held that the mere filing of the registration application was required, while other Circuits had held that the actual issuance of the registration was required prior to the commencement of a lawsuit.

    James:
    That’s correct, Scott.

    Scott:
    Another issue main issue that the 9th Circuit considered in this case was whether VHT’s photos constituted a compilation or individual work for the purpose of statutory damages. James, how did the court approach this question, and what factors influenced its decision?

    James:
    Sure, Scott. As I mentioned earlier, VHT would load the photographs into its database, and VHT had applied to register its database of its photos as a compilation with the Copyright Office. The court had to determine whether the photos qualified as one work under the Copyright Acts provision that treats all parts of a compilation as a single work for statutory damages. VHT argued that it owned copyrights in both the individual photos as well as the database, while Zillow claimed that the database registration automatically made the photos part of a compilation. In essence, if the court accepted Zillow’s argument, there would only be one copyright violation I. E. The database. However, on the other hand, if the court accepted VHT’s argument that each photo in the database was its own separate work, then the use of each photo would be a separate copyright violation, allowing for damages for each photo. In the end, the court rejected Zillow’s argument and emphasized that the individual photos had separate independent economic value from VHT’s database.

    Scott:
    That makes sense, James. In the first trial, VHT was awarded damages of one $500 per image due to willful infringement by Zillow. However, the district court awarded different amounts in the retrial. Could you explain the reasoning behind this decision and VHT’s appeal?

    James:
    Sure Scott. The 9th Circuit determined that the higher damages awarded in the first trial were because there was a specific finding of willful infringement by Zillow, which was later reversed on the retrial. The evidence showed only innocent infringement by Zillow, and the court concluded that the district court properly awarded lower damages amount because the evidence showed innocent infringement and not the willful infringement that had existed in the first trial. Therefore, the 9th Circuit rejected VHT’s appeal for higher damages.

    Scott:
    James, thanks for discussing this case with us today. I think this case serves as a reminder of the importance of the Fourth Estate case, the importance of pre-filing copyright registration applications before commencing litigation, and I also think this case serves as a reminder of the importance of copyright diligence in the digital age and the considerations courts make when determining infringement and damages. As you and I know, it’s an evolving area of law, and it’s crucial for content creators and users to understand their rights and their obligations.

    James:
    Thanks, Scott. It’s been my pleasure. Thank you for having me.

    Scott:
    Well, that wraps it up for this installment of The Briefing by Weintraub Tobin. Please remember to like and subscribe to both our podcast and our YouTube channel. And if you found this piece interesting, well, we’ve got over 100 episodes for you to choose from, and you can also visit us at theiplawblog.com.


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