tag:blogger.com,1999:blog-2272739708300053332024-03-05T19:28:17.943-06:00Locke Lord AdMark BuzzHot topics and new legal developments from the attorneys in Locke Lord's Trademark, Copyright & Advertising Group.Jason Muellerhttp://www.blogger.com/profile/09266910595204135544noreply@blogger.comBlogger36125tag:blogger.com,1999:blog-227273970830005333.post-50806467799226008472012-12-13T09:54:00.000-06:002012-12-13T09:54:26.269-06:00President Obama is Expected to Issue Executive Order on Cyber Security and PrivacyThe Draft Executive Order requires certain federal agencies to identify critical infrastructure where a cyber security incident could have national or regional effects on public health or safety, or economic or national security.<div>
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<a href="http://www.lockelord.com/qs_2012presidentobama/" target="_blank">The article here points out what proactive steps industry can take in view of potential new regulation in this area.</a></div>
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Unknownnoreply@blogger.comtag:blogger.com,1999:blog-227273970830005333.post-56841790130884842882012-10-23T20:15:00.000-05:002012-10-23T20:15:03.495-05:00
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As has been reported, the FTC recently issued a revised "Green Guides" to guide marketers when making claims regarding the environmental attributes about their products. </div>
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We have published a Locke Lord Article entitled <b>“<a href="http://www.lockelord.com/art_2012ftcunveils/" target="_blank">FTC Unveils Final Revised Green Guides for Environmental Marketing- Energy Industry and B2B Included</a>”</b> available <span class="s1"><a href="http://www.lockelord.com/art_2012ftcunveils/" target="_blank">here</a></span>.</div>
Unknownnoreply@blogger.comtag:blogger.com,1999:blog-227273970830005333.post-33609777936098798582012-10-01T17:04:00.003-05:002012-10-02T16:15:00.346-05:00Today, FTC Releases the Revised Green Guides for Environmental Marketing<br />
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg929lxykD7Uhq3U1tVX_r91enTrEjfGwFcsoDyjgRKjdBpktFYDkBfSBdc4PsI8QBZEdG2HZBhetCcXaDmb7YoPDrpVPIGblQk9F0AQOUxhZMCNnD6k1sY6a6JUQnikgBC5b_yD893Dns/s1600/vanSlyke_Paul__124.jpg" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg929lxykD7Uhq3U1tVX_r91enTrEjfGwFcsoDyjgRKjdBpktFYDkBfSBdc4PsI8QBZEdG2HZBhetCcXaDmb7YoPDrpVPIGblQk9F0AQOUxhZMCNnD6k1sY6a6JUQnikgBC5b_yD893Dns/s1600/vanSlyke_Paul__124.jpg" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Author: Paul Van Slyke</td></tr>
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<span style="font-family: Arial, Helvetica, sans-serif;">The FTC released today the long-awaited
final, revised version of its <span lang="EN">Guides for the Use of Environmental
Marketing Claims —</span><span lang="EN" style="color: #4f6228; mso-ansi-language: EN; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin; mso-themecolor: accent3; mso-themeshade: 128;"> </span><span lang="EN" style="color: #0d0d0d; mso-ansi-language: EN; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin; mso-themecolor: text1; mso-themetint: 242;">the</span><span lang="EN" style="color: #4f6228; mso-ansi-language: EN; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin; mso-themecolor: accent3; mso-themeshade: 128;"> </span><span lang="EN" style="color: #76923c; mso-ansi-language: EN; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin; mso-themecolor: accent3; mso-themeshade: 191;"><a href="http://www.ftc.gov/os/2012/10/greenguides.pdf" target="_blank">Green Guides</a></span><span lang="EN" style="color: #76923c; mso-ansi-language: EN; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin; mso-themecolor: accent3; mso-themeshade: 191;">.</span><span lang="EN" style="color: #4f6228; mso-ansi-language: EN; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin; mso-themecolor: accent3; mso-themeshade: 128;"> </span><span lang="EN"><o:p></o:p></span></span></div>
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<span lang="EN" style="font-family: Arial, Helvetica, sans-serif;">If your company makes green
or environmental claims in its advertising, labeling or marketing, you will
want to seize on the link above and start figuring out what is new, what is
changed and what has stayed the same. In
the next few weeks, we will be issuing a series of posts with analysis and
implications of the revised Green Guides for various industries. <o:p></o:p></span></div>
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<span lang="EN" style="font-family: Arial, Helvetica, sans-serif;">For now, here are a few ways to get started in understanding
the revised Green Guides and how they might impact advertising, labeling and
marketing for your business.<o:p></o:p></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><span lang="EN">After briefly reviewing the
text of the</span><span lang="EN" style="mso-ansi-language: EN; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin;"> <span style="color: #76923c; mso-themecolor: accent3; mso-themeshade: 191;"><a href="http://www.ftc.gov/os/2012/10/greenguides.pdf" target="_blank">Green Guides</a>,</span><span style="color: black; mso-themecolor: text1;"> </span><span style="color: #1d1b11; mso-themecolor: background2; mso-themeshade: 26;">the next stop should be the</span><span style="color: black; mso-themecolor: text1;"> </span><span style="color: windowtext;"><span style="color: #76923c;"><a href="http://business.ftc.gov/documents/environmental-claims-summary-green-guides" target="_blank">EnvironmentalClaims: Summary of the Green Guides</a></span><u style="text-decoration: none;"><span style="color: blue; mso-themecolor: hyperlink;"> </span></u><span lang="EN-US" style="text-decoration: none;">prepared by the FTC. It is written for marketers with a brief
explanation of the FTC’s approach to environmental benefit claims, and
terminology often used in green marketing</span><u style="text-decoration: none;"><span style="color: blue; mso-themecolor: hyperlink;"><o:p></o:p></span></u>.</span></span></span></div>
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<a href="http://www.ftc.gov/os/2012/10/greenguides.pdf" target="_blank"><span style="font-family: Arial, Helvetica, sans-serif;">
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<span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: black; mso-themecolor: text1; text-decoration: none; text-underline: none;">Next, you can watch the </span><span lang="EN-US" style="color: windowtext;"></span><a href="http://business.ftc.gov/multimedia/videos/green-guides" target="_blank"><span lang="EN" style="color: #76923c; mso-ansi-language: EN; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin; mso-themecolor: accent3; mso-themeshade: 191;">video</span><span lang="EN" style="color: black; mso-ansi-language: EN; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin; mso-themecolor: text1;"> </span></a>with an overview of the revised Green Guides prepared by the FTC.<o:p></o:p>
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<span style="font-size: small;"><span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-weight: normal;">Finally,
check out the FTC’s </span><span lang="EN-US" style="color: windowtext;"><a href="http://business.ftc.gov/advertising-and-marketing/environmental-marketing"><span lang="EN" style="color: #76923c; font-weight: normal; mso-ansi-language: EN; mso-ascii-theme-font: minor-latin; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin; mso-themecolor: accent3; mso-themeshade: 191;">Environmental Marketing </span></a></span><span style="font-weight: normal;"> page with all kinds of resources for green
claims, natural claims and energy pitches.
You will </span></span><span style="font-weight: normal; line-height: 130%;"><span style="font-family: Arial, Helvetica, sans-serif;">find links to legal resources such as:</span><span style="font-family: Calibri, sans-serif;"><o:p></o:p></span></span></span></h3>
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</span></span></span><!--[endif]--><span style="font-family: Calibri, sans-serif;"><a href="http://business.ftc.gov/legal-resources/6/35"><span style="color: #76923c; mso-themecolor: accent3; mso-themeshade: 191;">Case Highlights</span><o:p></o:p></a></span></div>
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Documents <o:p></o:p></span></a></span></div>
<br />Unknownnoreply@blogger.comtag:blogger.com,1999:blog-227273970830005333.post-88082868464991578642012-09-10T09:01:00.001-05:002012-09-10T09:03:04.469-05:00Louboutin v. YSL – Second Circuit misses the ‘mark’<br />
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJhenFpb9sm9AaeO7c-uUlRSRuQrFyoAJz0TcbGcIKY4pBsoHapnGsNoThUResxS86Zl0sOALGGBazEETTkRBUye8wKKRUK2FoVWQag3oaeXAtVGC3xdQO0SBfBlIxi9l3LJpuimjP50U/s1600/Barnes_Robin_07.jpg" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJhenFpb9sm9AaeO7c-uUlRSRuQrFyoAJz0TcbGcIKY4pBsoHapnGsNoThUResxS86Zl0sOALGGBazEETTkRBUye8wKKRUK2FoVWQag3oaeXAtVGC3xdQO0SBfBlIxi9l3LJpuimjP50U/s1600/Barnes_Robin_07.jpg" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Robin Barnes</td></tr>
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgPYo2nIV8fYvFmMZy1M2FQVMoRyQqabfCHdAbCDv71a7aiP_nAHewrA_APUTFpZMmL-07tIv2-D8O0c2AIjxkhDbJheE0iRlIauDZeT62Wn2wLWYWBd2XA_5rJaBJgb3X7_9brj3gBmwI/s1600/Hamad_Hamad_11_hi.jpg" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgPYo2nIV8fYvFmMZy1M2FQVMoRyQqabfCHdAbCDv71a7aiP_nAHewrA_APUTFpZMmL-07tIv2-D8O0c2AIjxkhDbJheE0iRlIauDZeT62Wn2wLWYWBd2XA_5rJaBJgb3X7_9brj3gBmwI/s1600/Hamad_Hamad_11_hi.jpg" /></a></td></tr>
<tr><td class="tr-caption" style="font-size: 13px; text-align: center;">Hamad Hamad</td></tr>
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Last November, we wrote an <a href="http://lockelordadmark.blogspot.com/2011/11/louboutin-red-sole-trademark-dispute.html" target="_blank">article </a>on the Louboutin red sole trademark case against YSL shortly after Tiffany filed its amicus brief supporting Louboutin’s position at the Second Circuit. Our primary focus was the difference between Tiffany’s and Louboutin’s trademark registrations. Tiffany’s registrations claimed a fairly specific color, namely “robin’s-egg blue,” while Louboutin’s registration simply and broadly claimed “red.” We noted that, at least until the Second Circuit ruled on the issue, it would be advisable to claim colors with some specificity in trademark applications. <br />
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As we previously noted, while not perfect, the opinion did a good job of criticizing the breadth and vagueness of the color description in Louboutin’s registration. Now that the Second Circuit has ruled, we feel that we should reexamine the district court’s opinion in light of its characterization by the Second Circuit. <br />
According to the Second Circuit, the district court held “that a single color can never serve as a trademark in the fashion industry” and that “in the fashion industry, single-color marks are inherently ‘functional.’” That’s not how we read the district court’s decision. As we previously noted, the district court did analyze the question of whether a single color could serve as a trademark in the fashion industry and spent considerable time on the functionality issue, but ultimately did not issue any direct holding or per se rule on the viability of single-color marks in this context. Specifically, the district court denied Louboutin’s request for a preliminary injunction (which is based on a likelihood of success standard) because the court had “serious doubts that Louboutin possesses a protectable mark.” Had the district court held that a single color can never serve as a trademark in the fashion industry, it would have stated that Louboutin did not possess a protectable mark rather than merely expressing doubt. <br />
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Putting aside the issue of how far the district court did or did not go, it seems the Second Circuit missed the mark by not going far enough to limit Louboutin’s trademark rights. The Second Circuit reversed the district court’s order to the extent that it denied Louboutin trademark protection (which it really did not at the preliminary injunction stage, but might have at a later stage of the proceedings) and limited the mark to a red outsole contrasting with the other parts of the shoe (and ordered that Louboutin’s registration be amended accordingly). Since YSL’s allegedly infringing shoes were monochromatic, the Second Circuit affirmed the denial of the injunction based on its ruling that Louboutin’s rights were limited to contrasting uppers. However, the Second Circuit did not address the claimed “red” color itself or the type of footwear to which the red color is applied. <br />
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The district court spent a good number of paragraphs discussing the vagueness and ambiguity of Louboutin’s trademark with respect to both of these issues. Let’s first take a look at the color dimension. Here’s what we said last November concerning the vagueness and breadth of the claimed color:<br />
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<i>Imagine the difficulty for competitors – are fire engine, cherry, and brick red all covered by Louboutin’s registration? There are difficulties on the consumer side too – can multiple shades of red establish sufficient secondary meaning to support the registration, and can the average person even tell the difference between certain shades?</i></blockquote>
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Or perhaps it is “Chinese Red” (Pantone No. 18-1663 TP) that is covered by Louboutin’s registration, as Louboutin asserted in his preliminary injunction reply brief? Oh, but wait, after YSL pointed out that it never used Chinese Red, Louboutin insisted that YSL used a (different) shade that was still too close. Which shade? We don’t know. Apparently, neither does Louboutin. At one point in argument, Louboutin asked the district court to pick a particular range of colors above and below Pantone No. 18-1663 TP and find that anything within that range of hues and shades of red would be infringing its trademark. The district court declined because it found that such an approach would have “the effect of appropriating more than a dozen shades of red-and perhaps other colors [such as pink and orange] as well.”<br />
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It appears that the real problem is not that Louboutin’s registration claimed a single color. The real problem is that Louboutin’s registration claimed an entire spectrum of red colors.<br />
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And what about the type of footwear? The registration states “women’s high fashion designer footwear.” What is high fashion? As the district court pointed out, Louboutin sued Zara in France. And while Zara makes some nice, trendy stuff, it’s not exactly the type of brand that would be considered “high fashion.” And what types of shoes exactly? Would flats and flip-flops be included? What about low-heeled shoes? At one point Louboutin tried to limit his registration to “high-heeled” shoes, but as the district court also pointed out, the registration doesn’t include that limitation. <br />
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Here’s something else to consider: what about design-your-own shoe websites and stores? Would a customer be liable for infringing Louboutin’s mark for using Nike ID to make Air Force 1’s with a glossy red sole and a black upper? Would a customer be liable for infringing Louboutin’s mark for ordering a custom pair of sandals to be made with a glossy red sole and brown straps? Would the manufacturers have any liability?<br />
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Perhaps these are bad analogies because designers would know better than to pursue an infringement claim against a competitor’s shoe that is clearly not going to cause customer confusion, right? Maybe not, since Louboutin sued YSL for a monochromatic shoe that wasn’t lacquered and didn’t use the Chinese Red that Louboutin now claims is his shade of red. Customers and competitors alike are left without proper guidance as to which hues or shades of “red” are off limits. <br />
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Louboutin’s registration was too broad and too vague and remains so even after the Second Circuit’s ruling. Although the Second Circuit did well to at least limit the registration to contrasting uppers, it could have taken this opportunity to rein in a clearly overbroad and vague registration. Having passed on that opportunity, did the Second Circuit effectively hand Louboutin an exclusive palette of the entire spectrum of “red” to be used on shoe outsoles as long as the uppers are a contrasting color? We’re not suggesting that Louboutin should necessarily be tied to a specific Pantone No. (although, interestingly, some foreign countries require a specific Pantone No. when a color claim is made in a trademark application), but Louboutin’s registration should have at least been limited to a word-description of the particular hue or shade of red that he intended to claim. In the end, the Second Circuit’s opinion does not shed much light on the boundaries of color claims in the fashion world, but we still think is advisable to claim color marks with some specificity. After all, Tiffany seems to be doing just fine with “robin’s-egg blue.”<br />
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<br />Unknownnoreply@blogger.comtag:blogger.com,1999:blog-227273970830005333.post-84945282925500901702012-08-28T18:52:00.000-05:002012-08-29T20:10:58.041-05:00Consumer Privacy and Cookies: What the FTC's $22.5 Million Settlement With Google Means For Your Company<br />
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<tr><td class="tr-caption" style="text-align: center;"><i><span style="font-size: x-small;">Author: Paul C. Van Slyke</span></i></td></tr>
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<span lang="EN"><i><br /></i></span></div>
<div class="LLBody" style="text-align: justify;">
<br /></div>
<div class="LLBody" style="text-align: justify;">
<span lang="EN"><br /></span></div>
<div class="LLBody" style="text-align: justify;">
<span lang="EN">Recently the Federal Trade Commission reached a record </span><a href="http://ftc.gov/opa/2012/08/google.shtm" target="_blank"><span lang="EN">$22.5 million settlement</span></a><span lang="EN"> with Google for consumer privacy violations of an
earlier order involving what is called “online behavioral advertising” or OBA.
The Google case is a roadmap for avoiding serious legal missteps for
tracking of consumer interests in violation of a company’s own policies and
claims that are commonly made and often overlooked. In the Google settlement, the FTC sent a loud
and clear message that it will not tolerate promises and claims made in fine
print to protect the privacy of consumers and breaking those promises by use of
cookies and user tracking tools in day-to-day operations long after the
promises in fine print are forgotten. <o:p></o:p></span></div>
<div class="LLBody" style="text-align: justify;">
<b><span lang="EN"><br /></span></b></div>
<div class="LLBody" style="text-align: justify;">
<b><span lang="EN">Overlooked Privacy Claims in the Google
Case<o:p></o:p></span></b></div>
<div class="LLBody" style="text-align: justify;">
<span lang="EN"><br /></span></div>
<div class="LLBody" style="text-align: justify;">
<span lang="EN">Most companies have gotten the message that what they say in their privacy
policies has to line up with their day-to-day operations. The problem is
that many companies are conveying claims not just in a formal privacy policy in
the fine print on the website, blog or social media brand page, but also where
the company states choice mechanisms, opt-outs, and other ways consumers can
customize their experience. The FTC’s </span><a href="http://ftc.gov/os/caselist/c4336/index.shtm" target="_blank"><span lang="EN">complaint</span></a><span lang="EN"> against Google highlights alleged
misrepresentations on the company’s Advertising Cookie Opt-Out Plug-in page
that were overlooked for compliance.
Cookies are the unique file codes placed on a consumer’s computer when a
website is opened and consumer choices are made on the website.<o:p></o:p></span></div>
<div class="LLBody" style="text-align: justify;">
<span lang="EN"><br /></span></div>
<div class="LLBody" style="text-align: justify;">
<span lang="EN">Google claimed in its fine print that for users of the Safari browser that
it would not place tracking cookies on the users’ computers or serve them
targeted advertisements. The FTC alleged that Google used codes to
disguise its cookies to work around Safari’s opt-out default setting. <o:p></o:p></span></div>
<div class="LLBody" style="page-break-after: avoid; text-align: justify;">
<b><span lang="EN"><br /></span></b></div>
<div class="LLBody" style="page-break-after: avoid; text-align: justify;">
<b><span lang="EN">Overlooked Claims of Self-Regulatory
Compliance<o:p></o:p></span></b></div>
<div class="LLBody" style="page-break-after: avoid; text-align: justify;">
<span lang="EN"><br /></span></div>
<div class="LLBody" style="page-break-after: avoid; text-align: justify;">
<span lang="EN">Many companies promote on their website
their affiliation with self-regulatory programs. For example, to join the
Network Advertising Initiative (NAI), a voluntary self-regulatory group for the
online advertising industry, company members agree to disclose to users their
data collection and use practices. Although Google touted its NAI membership
on its website, the FTC says the company did not truthfully disclose what it
was doing with Safari users’ data. <o:p></o:p></span></div>
<div class="LLBody" style="text-align: justify;">
<br /></div>
<div class="LLBody" style="text-align: justify;">
<span lang="EN"><b>Key
Points</b></span><br />
<span lang="EN" style="font-family: Symbol; text-indent: -0.25in;"><span style="font-family: 'Times New Roman'; font-size: 7pt;"><br /></span></span>
<br />
<ul>
<li><span lang="EN" style="text-indent: -0.25in;">The CEO and top executives of your company
must often repeat that they are committed to compliance with consumer privacy
and advertising laws and they will hold the IT director and Chief Marketing
Officer accountable.</span></li>
</ul>
<ul>
<li><span style="text-indent: -0.25in;">Your
information technology staff needs to take the lead in compliance before your
marketing managers and legal advisors get involved.</span></li>
</ul>
<ul>
<li><span style="text-indent: -0.25in;">It
helps for a company to adopt an internal consumer privacy policy that places
primary responsibility on the IT Department and secondary responsibility on the
marketing staff for compliance with laws and regulations on the use of cookies
and user tracking tools.</span></li>
</ul>
<ul>
<li><span lang="EN" style="font-family: Symbol; text-indent: -0.25in;"><span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span><span lang="EN" style="text-indent: -0.25in;">The
internal policy should require that IT department make and update a list of all
the places on your company websites, social media promotions and sponsored
blogs where privacy representations and
claims are made, maintain an inventory
of the cookies they use, and not launch new ones without both marketing and
legal review.</span></li>
</ul>
<ul>
<li><span style="text-indent: -0.25in;">The internal policy should also require
that the marketing staff make and update a separate list of all the user
tracking tools being used on your company websites, social media promotions and
sponsored blogs and maintain an inventory of the categories of data being
collected from users, and not launch new tracking tools or categories of data
being collected without both IT and legal review.</span></li>
</ul>
<ul>
<li><span lang="EN" style="font-family: Symbol; text-indent: -0.25in;"><span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span><span lang="EN" style="text-indent: -0.25in;">Sidestepping
users’ preferences can lead to costly legal missteps.</span></li>
</ul>
</div>
Unknownnoreply@blogger.comtag:blogger.com,1999:blog-227273970830005333.post-70696782654672151202012-07-18T17:46:00.001-05:002012-07-18T17:46:29.275-05:00NAD Finds “Pinned” Content is Testimonial in Nature, Requires Disclosures<br />
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg929lxykD7Uhq3U1tVX_r91enTrEjfGwFcsoDyjgRKjdBpktFYDkBfSBdc4PsI8QBZEdG2HZBhetCcXaDmb7YoPDrpVPIGblQk9F0AQOUxhZMCNnD6k1sY6a6JUQnikgBC5b_yD893Dns/s1600/vanSlyke_Paul__124.jpg" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img alt="" border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg929lxykD7Uhq3U1tVX_r91enTrEjfGwFcsoDyjgRKjdBpktFYDkBfSBdc4PsI8QBZEdG2HZBhetCcXaDmb7YoPDrpVPIGblQk9F0AQOUxhZMCNnD6k1sY6a6JUQnikgBC5b_yD893Dns/s200/vanSlyke_Paul__124.jpg" title="by: Paul C. Van Slyke" width="171" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><span style="font-size: small;">By: Paul C. Van Slyke</span></td></tr>
</tbody></table>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="background-color: white; font-family: Calibri, sans-serif;">The National
Advertising Division, following its review of advertising by Nutrisystem, Inc.
on the new social media site Pinterest, has determined that the weight-loss
success stories “pinned” to such boards represent consumer testimonials and
require the complete disclosure of material information and the results
consumers can generally expect to receive. Nutrisytems currently has many advertisements on Pinterest.com. See </span><a href="http://pinterest.com/search/?q=nutrisystem" style="background-color: white;"><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin;">http://pinterest.com/search/?q=nutrisystem</span></a><span style="background-color: white; font-family: Calibri, sans-serif;">. </span></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: Calibri, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: Calibri, sans-serif;">NAD is an
investigative unit of the advertising industry’s system of self-regulation and
is administered by the Council of Better Business Bureaus. NAD decisions are
non-binding, but are given deep respect by the advertising industry and the
advertising legal community. Compliance
with NAD decisions is generally a good guide for avoiding liability in civil
litigation and Federal Trade Commission (“FTC”) enforcement actions.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><span style="font-family: Calibri, sans-serif;"><br /></span></b></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><span style="font-family: Calibri, sans-serif;">Pinterest.com<o:p></o:p></span></b></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: Calibri, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: Calibri, sans-serif;">Pinterest.com is a
trendy new virtual bulletin board, often described as a social photo-sharing or
scrapbooking website where users create and manage theme-based image
collections by “pinning” digital content they add or find on the web to their
personal boards. When content is “pinned,” Pinterest automatically grabs the
source link for the content which allows Pinterest to give credit to the
original creator, and allows users to return to the original source of the
content simply by clicking on the image as it appears on the pinboard. When a photo is repinned, Pinterest prompts
the user to direct the image to the specific pinboard they wish to pin to, and,
provide comments or notes about the image (if they wish )<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: Calibri, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: Calibri, sans-serif;">NAD noted in its
decision that Pinterest has become a new way for companies to encourage consumers
to engage with their products and drive traffic to their websites. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: Calibri, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: Calibri, sans-serif;">Nutrisystem’s “Real
Consumers” pinboard featured photos of “real” NutriSystem customers and
highlighted their weight-loss successes. The customer’s name, total
weight loss and a link to the NutriSystem website appeared below each
photo. If consumers browsing the
Nutrisystem Pinterest board clicked on Nutrisystem’s consumer testimonial pins,
they were redirected to Nutrisystem’s website at </span><a href="file:///C:/Users/jnardiel/AppData/Local/Microsoft/Windows/Temporary%20Internet%20Files/Content.Outlook/VY23X41A/www.nutrisystem.com"><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin;">www.nutrisystem.com</span></a><span style="font-family: Calibri, sans-serif;"><o:p></o:p></span></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><span style="font-family: Calibri, sans-serif;"><br /></span></b></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><span style="font-family: Calibri, sans-serif;">Express Claims at Issue<o:p></o:p></span></b></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: Calibri, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: Calibri, sans-serif;">Express claims at
issue in NAD’s review included:<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; tab-stops: .5in; text-align: justify;">
<span style="font-family: Calibri, sans-serif;">• “Christine
B. lost 46 lbs on Nutrisystem.”<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; tab-stops: .5in; text-align: justify;">
<span style="font-family: Calibri, sans-serif;">• “Michael
H. lost 125 lbs. on Nutrisystem.”<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; tab-stops: .5in; text-align: justify;">
<span style="font-family: Calibri, sans-serif;">• “Lisa
M. lost 115 lbs. on Nutrisystem.”<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; tab-stops: .5in; text-align: justify;">
<span style="font-family: Calibri, sans-serif;">•
“Christine H. lost 223 lbs. on Nutrisystem.”<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><span style="font-family: Calibri, sans-serif;"><br /></span></b></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><span style="font-family: Calibri, sans-serif;">NAD Finding <o:p></o:p></span></b></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: Calibri, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: Calibri, sans-serif;">In its decision, the
NAD found that the claims made on Pinterest were testimonial and required
complete disclosures of “material” information. <i>In re Pinterest </i>(unpublished) (NAD Case # 5479 06/20/12). The NAD found that one board, entitled “Real
Customers. Real Success.” featured photos of “real” Nutrisystem customers and
highlighted their weight loss success. The customer’s name, total weight loss
and a link to the Nutrisystem website appeared below each photo. The NAD found
“[i] t is undisputed that these pins represent consumer testimonials.”<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;">
<span style="font-family: Calibri, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;">
<span style="font-family: Calibri, sans-serif;">The
NAD cited </span><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Section 255.2 (b) of the FTC’s
Guidelines Concerning the Use of Endorsements and Testimonials in Advertising
that states:<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 49.5pt; margin-top: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">An advertisement containing an endorsement relating the experience
of one or more consumers on a central or key attribute of the product or
service also will likely be interpreted as representing that the endorser's
experience is representative of what consumers will generally achieve with the advertised
product or service in actual, albeit variable, conditions of use. Therefore, an
advertiser should possess and rely upon adequate substantiation for this
representation. If the advertiser does not have substantiation that the
endorser's experience is representative of what consumers will generally
achieve, the advertisement should clearly and conspicuously disclose the
generally expected performance in the depicted circumstances, and the
advertiser must possess and rely on adequate substantiation for that
representation.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 27.0pt; margin-right: 0in; margin-top: 0in; mso-layout-grid-align: none; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 27.0pt; margin-right: 0in; margin-top: 0in; mso-layout-grid-align: none; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 4.5pt; margin-right: 0in; margin-top: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">The NAD found that the weight loss “pins” found on Nutrisystem’s
“Real Customers. Real Success.” board tout atypical results (i.e., “Michael H.
lost 125 lbs. on Nutrisystem” or “Lisa M. lost 115 lbs. on Nutrisystem”).
Therefore, as required by the FTC Guidelines, the NAD concluded that these pins
should be accompanied by a clear and conspicuous disclosure noting the typical
results consumers can expect to achieve using the Nutrisystem weight loss
program.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 4.5pt; margin-right: 0in; margin-top: 0in; mso-layout-grid-align: none; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 4.5pt; margin-right: 0in; margin-top: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">The NAD noted that if consumers browsing the Nutrisystem Pinterest
board clicked on Nutrisystem’s consumer testimonial pins, they were redirected
to Nutrisystem’s website which included the necessary qualifying information
(i.e., the typical results a consumer can expect to achieve using the
Nutrisystem program). The NAD observed, however, that it is well-established
that disclosures should not only be clear, conspicuous and easy to understand,
but placed in immediate proximity to the claim or representation it is intended
to clarify. <i>In re the Campbell Soup
Company </i>(Campbell’s Supper Bakes), Case #4038, NAD/CARU Case Reports
(May/June 2003). Therefore, said the NAD,
providing the disclosure on the website (which the consumer may or may
not visit), is not sufficient.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: Calibri, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: Calibri, sans-serif;">The advertiser Nutrisystem agreed that such statements require a
disclosure, and immediately added the
necessary disclosure (“Results not typical. On Nutrisystem®, you can expect to
lose at least 1-2 lbs. per week. Individuals are remunerated. Weight lost on
prior Nutrisystem® program.” The NAD
therefore concluded its action.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span style="font-family: Calibri, sans-serif;"><br /></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span style="font-family: Calibri, sans-serif;">Take-Aways<o:p></o:p></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Calibri, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Calibri, sans-serif;">Social
media and online sites that may not appear to be traditional advertising media
can have advertising messages of a testimonial or endorsement nature that
require compliance with the requirements for complete disclosures of material
information as well as comply with the FTC guidelines. When there is any reasonable interpretation
that the content is a commercial advertising message of a testimonial or
endorsement nature, it is wise to include a complete disclosure of material
information about the endorser’s connections with the advertiser and whether
the endorser was paid or received a benefit from the advertiser,
accompanied by a clear and conspicuous
disclosure noting the typical results consumers can expect to achieve. The disclosure must be in close proximity to
the advertising claim.</span><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Calibri, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Calibri, sans-serif;"><br /></span></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-227273970830005333.post-83539531533553098602012-06-13T14:01:00.001-05:002012-06-13T14:01:56.758-05:00ICANN revealed the new gTLD applications today; were any infringements to your Brand revealed?<br />
<div class="LLBody" style="text-align: justify;">
Today is ICANN’s Reveal Day
for the new generic top level domain (gTLD) applications. Common gTLD’s include .com, .net, .org, and country-specific
domain name extensions such as .uk (United Kingdom) or .ca (Canada). The new gTLD extensions are referred to as
“strings.” ICANN published its list of
applied-for gTLD strings <a href="http://newgtlds.icann.org/en/program-status/application-results/strings-1200utc-13jun12-en">here</a>. You can download a PDF version of the list <a href="http://newgtlds-cloudfront.icann.org/sites/default/files/reveal/strings-1200utc-13jun12-en.pdf">here</a>. You can search for strings of interest <a href="http://gtldresult.icann.org/application-result/applicationstatus/viewstatus">here</a>.<o:p></o:p></div>
<div class="LLBody" style="text-align: justify;">
</div>
<div class="LLBody" style="text-align: justify;">
Now
that the gTLD application list has been published, a public review period has begun,
including a 2-month comment period and a 7-month formal objection period. ICANN permits a few objections anyone can
raise(applicants and non-applicants). <o:p></o:p></div>
<div class="LLBody" style="text-align: justify;">
</div>
<div class="LLBody" style="text-align: justify;">
The
“Legal Rights Objection” will likely be the most useful and relevant for
purposes of brand protection. Once a
Legal Rights Objection is filed, an independent panel of one or three experts will
decide whether the applied-for gTLD string would be likely to infringe an
existing trademark, intergovernmental organization name, or another acronym in
which an entity has a cognizable right.<o:p></o:p></div>
<div class="LLBody" style="text-align: justify;">
</div>
<div class="LLBody" style="text-align: justify;">
The
panel will decide whether the applied-for gTLD takes unfair advantage of the
objecting party’s mark or name, whether it unjustifiably impairs the
distinctive character or reputation of the objecting party’s mark or name, or
whether it creates a likelihood of confusion with the objecting party’s mark or
name. To make these determinations, the
panel looks to various non-exclusive factors, including, whether the
applied-for gTLD is identical or similar in appearance, sound or meaning to the
objecting party’s mark or name, and whether the intended use of the applied-for
gTLD will create a likelihood of confusion with the objecting party’s mark or
name as to the source, sponsorship, affiliation, or endorsement of the gTLD.<o:p></o:p></div>
<div class="LLBody" style="text-align: justify;">
</div>
<div class="LLBody" style="text-align: justify;">
Trademark
and brand owners should take the time on the front end to challenge any gTLD
strings that may be encroaching on their trademark or brand names. We think that the effort put into challenging
objectionable gTLD strings now could pay huge dividends in the future,
especially considering the time and cost of after-the-fact trademark
litigation, UDRP proceedings, and <i>ad hoc</i>
brand enforcement and protection.<o:p></o:p></div>
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<u>Authors:</u></div>
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<u><br /></u></div>
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgGxeZbwD2UMfspC6ST_GOXCtWGzxn0Hn6ZKXJlMJY4nc2EWnkD0sKixawaERCJxWWzUnS6klFq4nbazG_FZG4lk_nprMkDzrh-FY2daHMm1RXI1Rl1Q1-x9AuhO8ZbdTDsnDD_6ovl9g8/s1600/Hamad_Hamad_11_hi.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgGxeZbwD2UMfspC6ST_GOXCtWGzxn0Hn6ZKXJlMJY4nc2EWnkD0sKixawaERCJxWWzUnS6klFq4nbazG_FZG4lk_nprMkDzrh-FY2daHMm1RXI1Rl1Q1-x9AuhO8ZbdTDsnDD_6ovl9g8/s1600/Hamad_Hamad_11_hi.jpg" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Hamad Hamad</td></tr>
</tbody></table>
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhiYpyfIfN2tKcmps9lwf3kxPR0kFu8wn6glQOPX8gs7Rk_qgOquGVVn_m1lvxYCN8N0-yoJmymn4u-8GINNZbmFNYuMI4-WfXj1jO636yPyVL-5bk43po546kV4Qa441uoXkwagT6-J6w/s1600/Mueller_Jason_hi.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhiYpyfIfN2tKcmps9lwf3kxPR0kFu8wn6glQOPX8gs7Rk_qgOquGVVn_m1lvxYCN8N0-yoJmymn4u-8GINNZbmFNYuMI4-WfXj1jO636yPyVL-5bk43po546kV4Qa441uoXkwagT6-J6w/s1600/Mueller_Jason_hi.jpg" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Jason Mueller</td></tr>
</tbody></table>
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiwRF1Xf9MQ2wyWzNlR5sEuxa3uZ0d9y9hVKHLwDZ39Nhr3talbRjjhMWKKk8fdV0r4QRHd_r4e-8aUWfkOwskcv8ZVAM_RlstxVgBLBVBnI-zsdxN-EVNhqZQDNFSIaW4CkLopDcth1Tg/s1600/NardielloJason_hi.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiwRF1Xf9MQ2wyWzNlR5sEuxa3uZ0d9y9hVKHLwDZ39Nhr3talbRjjhMWKKk8fdV0r4QRHd_r4e-8aUWfkOwskcv8ZVAM_RlstxVgBLBVBnI-zsdxN-EVNhqZQDNFSIaW4CkLopDcth1Tg/s1600/NardielloJason_hi.jpg" title="" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Jason Nardiello</td></tr>
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<div class="LLBody">
<br /></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-227273970830005333.post-56076128269236497162012-05-23T01:01:00.001-05:002012-05-23T01:01:40.012-05:00FTC to Hold Workshop on Advertising and Privacy Disclosures<span style="color: black; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin; mso-themecolor: text1;">Online advertising and privacy
regulations are frequent sources of issues for in-house lawyers and marketing
teams.<span style="mso-spacerun: yes;"> </span>The Federal Trade Commission, one
of the chief federal regulatory agencies in this area, is known for providing
businesses with a multitude of resources.<span style="mso-spacerun: yes;">
</span>To that end, the FTC has announced plans to host a one-day </span><a href="http://www.ftc.gov/opa/2012/05/dotcomdiscl_ma.shtm"><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="color: blue;">workshop</span></span></a><span style="color: black; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin; mso-themecolor: text1;"> to
consider the need for new guidance concerning advertising and privacy
disclosures in today’s online and mobile environments. <o:p></o:p></span><br />
<br />
<div class="LLBody" style="margin: 0in 0in 0pt; text-align: justify;">
<span style="color: black; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin; mso-themecolor: text1;">The workshop, which will be
held live in Washington DC and webcast on </span><b><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Wednesday, May 30, 2012</span></b><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">, will almost certainly </span><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">discuss the direction for future FTC policy and enforcement
priorities relating to advertising disclosures in online and mobile media.<span style="mso-bidi-font-weight: bold;"><span style="mso-spacerun: yes;"> </span>The
workshop will provide an update and will likely be followed by an expansion of
the current FTC guidance ---the</span> </span><a href="http://www.ftc.gov/os/2000/05/0005dotcomstaffreport.pdf"><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="color: blue;">Dot Com
Disclosures</span></span></a><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">—which was first published 12 years ago.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="LLBody" style="margin: 0in 0in 12pt; text-align: justify;">
<span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Several Locke Lord attorneys in our Advertising, Marketing and
Social Media group will monitor the workshop.<span style="mso-spacerun: yes;">
</span>Highlights will be posted on our blog </span><a href="http://www.lockelordadmark.blogspot.com/"><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="color: blue;">AdMark Buzz</span></span></a><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"> after the workshop.<o:p></o:p></span></div>
<span style="font-family: "Calibri","sans-serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Details about the
workshop can be found </span><span style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;"><a href="http://www.ftc.gov/opa/2012/05/dotcomdiscl_ma.shtm"><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="color: blue;">here</span></span></a></span><span style="font-family: "Calibri","sans-serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">.</span>Jason Muellerhttp://www.blogger.com/profile/09266910595204135544noreply@blogger.comtag:blogger.com,1999:blog-227273970830005333.post-67544148441564801142012-05-21T16:09:00.000-05:002012-05-21T19:32:10.076-05:00DMCA Safe Harbor is Not Absolute – Do YOU Know What Your Users are Posting on Your Website?<span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: #3e3d40; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">Does your website allow users to post content? Companies that host websites that allow user generated content <span style="mso-bidi-font-weight: bold; mso-font-kerning: 18.0pt;">have long operated under a belief that they enjoyed broad immunity
from copyright infringement claims pursuant to the "safe harbor" provided by the Digital Millennium Copyright Act (“DMCA”). <a href="http://www.copyright.gov/title17/92chap5.html#512">Subsection 512(c)</a><span style="color: black;"> of the Copyright Act
provides limitations on Service Provider liability for storage of copyrighted material that was uploaded, or placed, at the direction
of a user.</span></span><span style="mso-spacerun: yes;"> Section 512(k) defines "Service Provider" as "an entity offering the transmission ... [of] digital online communications, between [users] of material of the user's choosing, without modification to the content of the material as sent or received."</span></span></span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: #3e3d40; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"></span>As the recent <em>Viacom</em> decision in the Second
Circuit instructs, Service Providers <span style="mso-bidi-font-weight: bold; mso-font-kerning: 18.0pt;">should recognize that such broad immunity may not
exist. As a result, it is wise to think carefully about website policies relating to the removal of user-generated content. In particular, to what extent might the Service Provider be disqualified from</span></span> <span style="color: #3e3d40; font-family: "Arial","sans-serif"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 18.0pt;">the "safe harbor"
provisions of the DMCA.<span style="mso-spacerun: yes;"> </span></span></span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">
<span style="color: #3e3d40; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">In <em>Viacom</em>, a case of first impression, the
court held that the “willful blindness” doctrine applied to demonstrate the
knowledge or awareness of a Service Provider of specific instances of
infringement under the DMCA.<span style="mso-spacerun: yes;"> </span><i style="mso-bidi-font-style: normal;">Viacom Int’l, Inc. v. YouTube, Inc.</i>,
10-3270, 10-3342, <a href="http://www.scribd.com/doc/94345894/Viacom-2nd-Circuit"><span style="color: blue;">Slip Op. at 22</span></a>
(2nd Cir. 2012).<span style="mso-spacerun: yes;"> </span>Moreover, the court held that Service
Providers must stand trial if there is evidence from which a reasonable juror
could conclude that defendants had actual knowledge or awareness of specific
instances of infringement under the DMCA. The court noted that while the DMCA
does not require affirmative monitoring, online providers and service providers
shall not make a “deliberate effort to avoid guilty knowledge.”<o:p></o:p></span></span><br />
<span style="font-family: Arial, Helvetica, sans-serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 12pt 4.2pt; mso-margin-top-alt: auto;">
<b style="mso-bidi-font-weight: normal;"><span style="color: #3e3d40; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Arial, Helvetica, sans-serif;">District
Court Proceedings<o:p></o:p></span></span></b></div>
<span style="font-family: Arial, Helvetica, sans-serif;">
<span style="color: #3e3d40; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">The <i>Viacom</i> case involved two related
class actions that included as plaintiffs:<span style="mso-spacerun: yes;"> </span>Viacom International, Inc., The Football
Association Premier League Ltd., and various film studios, television networks,
music publishers, and sports leagues for themselves and on behalf of others
similarly situated.<span style="mso-spacerun: yes;"> </span>The plaintiffs<span style="mso-spacerun: yes;"> </span>alleged that defendants YouTube, Inc.,
YouTube, LLC, and Google Inc. (collectively, “YouTube”) engaged in direct and
secondary copyright infringement based on the public performance, display, and
reproduction of approximately 79,000 audiovisual clips that appeared on the
YouTube website between 2005 and 2008. Plaintiffs demanded statutory
damages in an amount up to $150,000 per work infringed. </span></span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: #3e3d40; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">The United States District Court for the Southern District of New York granted YouTube summary judgment holding that defendants are entitled to safe-harbor
protection from infringement liability provided by DMCA in 17 U.S.C.
§512(c).<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span><br />
<span style="font-family: Arial, Helvetica, sans-serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 12pt; mso-margin-top-alt: auto;">
<b style="mso-bidi-font-weight: normal;"><span style="color: #3e3d40; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Arial, Helvetica, sans-serif;">Second Circuit Opinion<o:p></o:p></span></span></b></div>
<span style="font-family: Arial, Helvetica, sans-serif;">
<span style="color: #3e3d40; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">On appeal, the Second Circuit interpreted § 512(c), confirmed
the District Court correctly concluded that the § 512(c) safe harbor requires
knowledge or awareness of specific infringing activity, but held that summary
judgment in favor of YouTube was premature because a reasonable juror could
find that YouTube had actual knowledge or awareness of specific infringing
activity on its website. </span></span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">
<span style="color: #3e3d40; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">The court concluded that the statutory phrases “actual knowledge
that the material … is infringing” and “facts or circumstances from which
infringing activity is apparent” both refer to “knowledge or awareness of
specific and identifiable infringements.” The court explained that under §
512(c)(1)(A), knowledge or awareness alone does not disqualify the Service
Provider for the safe harbor; rather, the Service Provider that gains knowledge
or awareness of infringing activity retains safe-harbor protection only if it
“acts expeditiously to remove, or disable access to, the material.” 17 U.S.C. §
512(c)(1)(A)(iii).</span></span><br />
<br />
<span style="font-family: Arial, Helvetica, sans-serif;">
<span style="color: #3e3d40; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">The court thus held that “actual knowledge or awareness of facts
or circumstances that indicate specific and identifiable instances of
infringement will disqualify a Service Provider from the safe harbor and if it
fails to</span> <span style="color: #3e3d40; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">act “expeditiously to
remove, or disable access to, the material.”<span style="mso-spacerun: yes;"> </span><a href="http://www.scribd.com/doc/94345894/Viacom-2nd-Circuit"><span style="color: blue;">Slip
Op at 19.</span></a></span></span><br />
<div class="MsoNormal" style="margin: 0in 0in 12pt; mso-margin-top-alt: auto;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="MsoHyperlink"><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";"><span style="color: blue;">
</span></span></span></span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: #3e3d40; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">This test is not new, but applying this test to
the facts found in the record of this case, the Second Circuit found: </span></span></div>
<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 40.2pt; mso-add-space: auto; mso-list: l0 level1 lfo1; mso-margin-top-alt: auto; text-indent: -0.25in;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: #3e3d40; font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="color: #3e3d40; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">an email by the
director of video partnerships for Google and YouTube, requesting that his
colleagues take down any “clearly infringing, official broadcast footage” from
a list of certain premier league clubs in advance of a meeting with the heads
of several major sports teams and leagues, <o:p></o:p></span></span></div>
<span style="font-family: Arial, Helvetica, sans-serif;">
</span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 40.2pt; mso-add-space: auto; mso-list: l0 level1 lfo1; mso-margin-top-alt: auto; text-indent: -0.25in;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: #3e3d40; font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="color: #3e3d40; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">a 2006 report by one of YouTube’s co-founders
stating that episodes and clips of certain well-known shows could still be
found on YouTube’s website and that YouTube would benefit from preemptively
removing content that was “blatantly illegal”, and <o:p></o:p></span></span></div>
<span style="font-family: Arial, Helvetica, sans-serif;">
</span><br />
<div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 12pt 40.2pt; mso-add-space: auto; mso-list: l0 level1 lfo1; mso-margin-top-alt: auto; text-indent: -0.25in;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: #3e3d40; font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="color: #3e3d40; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">emails by another
co-founder that suggested that a CNN video clip of the space shuttle should be
left on the website until CNN’s legal department requests that it be taken
down. <o:p></o:p></span></span></div>
<span style="font-family: Arial, Helvetica, sans-serif;">
</span><span style="color: #3e3d40; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Arial, Helvetica, sans-serif;">In light of these facts, the
court held that the plaintiffs raised a genuine issue of material fact
regarding YouTube’s knowledge or awareness of specific instances of
infringement.<span style="mso-spacerun: yes;"> </span>As a result, the court
remanded the case for a determination of whether any specific infringements of
which You Tube had knowledge or awareness correspond to the clips–in-suit.<span style="mso-spacerun: yes;"> </span></span></span><a href="http://www.scribd.com/doc/94345894/Viacom-2nd-Circuit"><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";"><span style="color: blue; font-family: Arial, Helvetica, sans-serif;">Slip Op. at 22 .</span></span></a><span style="color: #3e3d40; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Arial, Helvetica, sans-serif;"><span style="mso-spacerun: yes;"> </span>Further, the court
remanded the case to the District court for a determination of whether the
plaintiffs have adduced sufficient evidence to allow a reasonable jury to
conclude that You Tube had the right and ability to control the infringing
activity and received a financial benefit directly attributable to that
activity.<span style="mso-spacerun: yes;"> </span></span><a href="http://www.scribd.com/doc/94345894/Viacom-2nd-Circuit"><span style="color: blue;"><span style="font-family: Arial, Helvetica, sans-serif;">Slip Op. at 28-29.<o:p></o:p></span></span></a></span><br />
<span style="font-family: Arial, Helvetica, sans-serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 12pt; mso-margin-top-alt: auto;">
<span style="color: #3e3d40; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Arial, Helvetica, sans-serif;">Conclusion<o:p></o:p></span></b></span></div>
<span style="font-family: Arial, Helvetica, sans-serif;">
<span style="color: #3e3d40; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">In light of <i style="mso-bidi-font-style: normal;">Viacom</i>,
Service Providers of online services that accept user-posted content such as
artwork, text, video clips, music clips, television broadcasts and radio broadcasts
should immediately seek counsel’s advice on removing or disabling access to
infringing content when a take-down notice or other information raises any
reasonable inference of actual knowledge of specific infringing activity. It
may be preferable to notify the poster of the content and request evidence that
the content is authorized or otherwise not infringing.<span style="mso-spacerun: yes;"> </span>If there is any serious doubt about whether
the Service Provider is on notice of facts that raise such a reasonable
inference of infringement, it may be preferable to remove the content than
incur the risk of copyright infringement with a potential of up to $150,000 in
statutory damages per work and payment of the copyright owner’s reasonable
attorneys’ fees.<span style="mso-spacerun: yes;"> </span></span><o:p></o:p></span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><u>Authors</u>:</span></div>
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<br />
<em>Paul Van Slyke </em></div>
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<em></em> </div>
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<em>Gregory Casamento</em><img border="0" closure_uid_k0ofkm="7" dda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEggzn2i9q6Fo0_QZXfVvfF4eePxjNe83111KtytfsndmawsUppdbUHZrFRXjQY-StaloHCqiw4kRKfOztrvjxc-R15CjuoIB-lt6zs8MSjMLXaqI3uxDRAmfNjqgbt0bu1Pq4gIEzjbAybE/s1600/Casamento_Gregory_08.jpg" /></div>
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<em></em> </div>
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<em><a href="http://www.lockelord.com/jmueller" target="_blank">Jason Mueller</a></em></div>
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<br />Jason Muellerhttp://www.blogger.com/profile/09266910595204135544noreply@blogger.comtag:blogger.com,1999:blog-227273970830005333.post-80778593916051179772012-05-16T22:12:00.000-05:002012-05-16T22:12:34.933-05:00FTC Tells Skechers to Shape Up with their Exercise Shoe Ads; Skechers will pay $40 mil.<br />
<div class="p1">
<span class="s1">Companies spending marketing dollars on ad campaigns may want to think carefully about how they go about substantiating the claims made in their ads. This Wednesday, the FTC announced that <a href="http://www.skechers.com/"><span class="s2">Skechers </span></a>USA, Inc. will pay $40 million to settle a <a href="http://www.ftc.gov/os/caselist/1023069/120516skecherscmpt.pdf"><span class="s2">complaint filed by the FTC</span></a> that Skechers deceived consumers by making unfounded claims that Skecher’s “Shape-ups” and “Resistance Runner” brand shoes would help people lose weight and strengthen and tone their muscles.</span></div>
<div class="p1">
<span class="s1"><br /></span></div>
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<span class="s1">Under FTC policy, all express and implied claims must be substantiated; in other words, the advertiser must have a “reasonable basis” for making the claims. When advertising claims concern “health and safety,” a higher level of substantiation is generally required. But the FTC-Skechers complaint did not mention the level of substantiation required by Skechers to support their claims of the weight loss and muscle-strengthening benefits of their shoes. Instead, the FTC focused on the case studies that were run by Skechers that were supposed to substantiate Skechers' claims. These studies were harshly criticized for the following reasons:</span></div>
<ul>
<li class="li1"><span class="s3"></span><span class="s1">Skechers represented in advertising that the studies were independent, but the chiropractor who ran the studies was a compensated endorser for Shape-ups, and is married to the senior VP of marketing at Skechers;</span></li>
<li class="li1"><span class="s3"></span><span class="s1">One fitness study did not have a control—that is—a group of participants who wore normal fitness shoes to which Skechers shoes could be compared. The sample size was also apparently small—only eight participants;</span></li>
<li class="li1"><span class="s3"></span><span class="s1">In another study, the data was altered and incomplete: some participants actually gained weight, but were falsely reported as having lost weight;</span></li>
<li class="li1"><span class="s3"></span><span class="s1">Data was missing and/or not collected for some participants in one study;</span></li>
</ul>
<div class="p1">
<span class="s1">Unfortunately for Skechers, these irregularities in the clinical studies evolved into large-dollar liability. However, problems such as these can be avoided: studies should both be <i>constructed</i> and <i>run</i> in a manner that is consistent with good scientific principles. </span></div>
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<span class="s1"><br /></span></div>
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<span class="s1">When preparing such studies as support for advertising claims, close work with a company’s in-house (or outside) counsel who has experience in consumer surveys (in either the advertising, trademark, or unfair competition fields) can ensure compliance with FTC substantiation principles. Essentially, the study should be able to stand up to judicial scrutiny—even if this is done at the expense of having to run a more costly study. </span></div>
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<span class="s1"><br /></span></div>
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<span class="s1">The Skechers $40 million settlement demonstrates that the return on investing time with counsel to construct substantiation and formulate claims that can withstand scrutiny is worth the effort. </span></div>
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<br />Unknownnoreply@blogger.comtag:blogger.com,1999:blog-227273970830005333.post-76166823795921506342012-05-10T19:49:00.002-05:002012-05-10T22:49:56.634-05:00Young man, there's no need to feel down—the music industry is set to evolve…again<br />
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On Monday, a high-profile copyright dispute was resolved in favor of artist Victor Willis, the original lead singer of the Village People.<span style="mso-spacerun: yes;"> </span>In 2011 Willis provided Scorpio Music with a notice of termination of copyright for 33 songs.<span style="mso-spacerun: yes;"> </span>Scorpio Music responded by filing suit to invalidate the terminations.<span style="mso-spacerun: yes;"> </span>The court ruled for Willis, dismissing Scorpio Music’s case.<span style="mso-spacerun: yes;"> </span><i style="mso-bidi-font-style: normal;">See</i> <i style="mso-bidi-font-style: normal;">Scorpio Music SA v. Willis</i>, 3:11-cv-01557, Dkt. 30 (S.D. Cal. May 7, 2012).<span style="mso-spacerun: yes;"> </span><br />
<br />
The Copyright Act allows artists or authors to terminate a grant or sale of a copyright pursuant to either § 304(c) or § 203.<span style="mso-spacerun: yes;"> </span>Section 304(c) allows an artist or author to terminate the grant of a copyright in a work after 56 years if the work was transferred or sold before 1978.<span style="mso-spacerun: yes;"> </span>Section 203, on the other hand, allows an artist or author to terminate the grant of a copyright in a work after 35 years if the work was transferred during or after 1978.<span style="mso-spacerun: yes;"> </span>Under these provisions, many copyright terminations become effective as early as 2013.</div>
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While the legal arguments in Willis’ case might interest some, we find the impending cascade of artists’ copyright grant termination suits to be substantially more significant.<span style="mso-spacerun: yes;"> </span>The initiation of copyright grant terminations like Willis' has been expected for a number of years, but Willis’s case is the first high-profile case to be resolved in favor of the artist.</div>
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<span style="mso-tab-count: 1;"> </span>Moreover, Willis’s victory comes in the midst of another torrent of lawsuits being brought by music artists regarding the appropriate classification of digitally downloaded songs.<span style="mso-spacerun: yes;"> </span>In a dispute over songs by artist Eminem, the Ninth Circuit held that digital downloads of songs are “licenses” and not physical “sales.” <i style="mso-bidi-font-style: normal;">FBT Productions LLC v. Aftermath Records</i>, 621 F.3d 958 (9th Cir. 2010). <span style="mso-spacerun: yes;"> </span>The distinction means that under a large number of contracts in the music industry, artists are entitled to a substantially higher royalty percentage (50% for licenses versus 12-20% for conventional records).<span style="mso-spacerun: yes;"> </span></div>
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<span style="mso-tab-count: 1;"> </span>After <i style="mso-bidi-font-style: normal;">FBT</i>, other artists filed a flood of similar digital royalty suits.<span style="mso-spacerun: yes;"> </span><i style="mso-bidi-font-style: normal;">See, e.g.</i>, <i style="mso-bidi-font-style: normal;">James v. UMG Recordings Inc.</i>, 3:11-cv-01613 (N.D. Cal.); <i style="mso-bidi-font-style: normal;">Zombie et al. v. UMG Recordings Inc.</i>, 3:11-cv-02431 (N.D. Cal.); <i style="mso-bidi-font-style: normal;">Williams v. UMG Recordings Inc.</i>, 3:12-cv-01289 (N.D. Cal.); <i style="mso-bidi-font-style: normal;">Harris v. UMG Recordings Inc.</i>, 3:12-cv-01305 (N.D. Cal.); <i style="mso-bidi-font-style: normal;">Toto Inc. v. Sony Music Entertainment</i>, 1:12-cv-01434 (S.D.N.Y.); <i style="mso-bidi-font-style: normal;">The Youngbloods v. BMG Music</i>, 1:07-cv-02394 (S.D.N.Y.); <i style="mso-bidi-font-style: normal;">Shropshire v. Sony Music Entertainment</i>, 1:06-cv-03252 (S.D.N.Y.); <i style="mso-bidi-font-style: normal;">Ear Booker Enterprises Inc. v. Sony Music Entertainment</i>, 1:12-cv-02385 (S.D.N.Y.); <i style="mso-bidi-font-style: normal;">Rogers v. Capitol Records LLC</i>, 3:12-cv-00180 (M.D. Ten.); <i style="mso-bidi-font-style: normal;">Wright v. Warner Music Group Corp.</i>, 12-cv-0870 (N.D. Cal.).<span style="mso-spacerun: yes;"> </span></div>
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<span style="mso-tab-count: 1;"> </span>While the music industry has been evolving to adapt to digital music and increased artist independence for some time now, these types of digital royalty suits are likely to accelerate that evolution.<span style="mso-spacerun: yes;"> </span>Now the battle is likely to be waged on two fronts.<span style="mso-spacerun: yes;"> </span>Just as a rush of artists followed in FBT’s footsteps, we expect that a rush of artists will follow in Willis’s, and there will be more termination notices served on music publishers and record labels.<span style="mso-spacerun: yes;"> </span>As more artists begin to reclaim copyrights in their songs, the music industry’s evolution will likely further accelerate, with re-negotiations of distribution rights undertaken to handle the likely annual waves of copyright grant terminations.<span style="mso-spacerun: yes;"> </span></div>
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We expect artists to leverage both the Willis and the FBT (Eminem) rulings to increase their share of royalties received for sales or licenses of their music.<span style="mso-spacerun: yes;"> </span>For example, an artist might give a notice to terminate copyright grants as a precursor to royalty rate negotiations and agree not to terminate the copyright grant in exchange for higher royalty rates. And, with established artists reclaiming copyrights in successful tracks, publishers are subject to losing significant revenue. For example, Willis can bypass traditional distribution channels for his well known songs and target the market directly. While start-up acts may still need the help of the labels to market and distribute new sounds, famous artists can rely upon the inertia of their popularity to maintain continued licenses (downloads) of their music. <span style="color: #222222; font-family: "ArialMT", "sans-serif"; font-size: 13pt; mso-ansi-language: EN-US; mso-bidi-font-family: ArialMT; mso-bidi-language: AR-SA; mso-fareast-font-family: ArialMT; mso-fareast-language: #00FF; mso-font-kerning: .5pt;"><span style="mso-spacerun: yes;"> </span></span>The combination of the digital royalty and copyright grant termination disputes will inevitably cause many industry contracts to be rewritten.<span style="mso-spacerun: yes;"> </span></div>
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<u>Authors:</u></div>
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<em><span style="mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;">Hamad Hamad</span></em></div>
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<i><span style="color: #222222; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Jason Mueller</span></i><span style="color: #222222; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"></span></div>
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</div>Jason Muellerhttp://www.blogger.com/profile/09266910595204135544noreply@blogger.comtag:blogger.com,1999:blog-227273970830005333.post-33023773125241781292012-03-30T17:30:00.000-05:002012-03-30T17:30:37.819-05:00<b style="mso-bidi-font-weight: normal;"><div class="LLBody" style="margin: 0in 0in 12pt;"><u><span style="font-size: large;">Auto dealers beware – the FTC is watching your ads</span></u></div><div class="LLBody" style="margin: 0in 0in 12pt;">This month the Federal Trade Commission (“FTC”) announced proposed settlements with car dealers across the country to settle investigations into the dealers’ advertising practices.<span style="mso-spacerun: yes;"> </span>The FTC focused this particular round of investigations on claims to “pay off” the customer’s debt on the vehicle they traded in.<span style="mso-spacerun: yes;"> </span>Examples of the allegedly deceptive advertisements provided by the FTC include:</div><div class="LLBody" style="margin: 0in 0in 12pt 0.5in; mso-list: l1 level1 lfo1; text-indent: -0.25in;"><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt 'Times New Roman';"> </span></span></span>"Credit upside down? Need a new car? Go to Billionpayoff.com. We want to pay off your car." The advertisement depicts a car moving, inverts the video to depict it upside down, and then turns it right-side up again. (Billion Auto) </div><div class="LLBody" style="margin: 0in 0in 12pt 0.5in; mso-list: l1 level1 lfo1; text-indent: -0.25in;"><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt 'Times New Roman';"> </span></span></span>"Uncle Frank wants to pay [your trade] off in full, no matter how much you owe." (Frank Myers AutoMaxx) </div><div class="LLBody" style="margin: 0in 0in 12pt 0.5in; mso-list: l1 level1 lfo1; text-indent: -0.25in;"><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt 'Times New Roman';"> </span></span></span>"I want your trade no matter how much you owe or what you're driving. In fact I'll pay off your trade when you upgrade to a nicer, newer vehicle." (Key Hyundai and Hyundai of Milford) </div><div class="LLBody" style="margin: 0in 0in 12pt 0.5in; mso-list: l1 level1 lfo1; text-indent: -0.25in;"><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt 'Times New Roman';"> </span></span></span>"Ramey will pay off your trade no matter what you owe . . . even if you're upside down, Ramey will pay off your trade." (Ramey Motors)</div><div class="LLBody" style="margin: 0in 0in 12pt;">The FTC asserted that such advertisements (which included ads run on the dealers’ websites and on YouTube) mislead consumers into believing that the dealership was going to pay off the debt in full.<span style="mso-spacerun: yes;"> </span>The actual practice employed by the dealerships was to roll in the negative equity (the debt balance that exceeded the value of the trade in) into the new loan the customer entered into to purchase a newer or different vehicle.</div><div class="LLBody" style="margin: 0in 0in 12pt;">In addition to alleging deceptive advertising, the FTC alleged violations of the Truth in Lending Act and the Consumer Leasing Act.<span style="mso-spacerun: yes;"> </span>As a result of the investigations, the five dealerships that agreed to settle must, among other things, change their advertising practices, retain copies of all advertisements for five years or more, maintain substantiation files for the claims made in each advertisement, and file compliance reports with the FTC.<span style="mso-spacerun: yes;"> </span></div><div class="LLBody" style="margin: 0in 0in 12pt;">How do you avoid an FTC investigation and the resulting burdens?<span style="mso-spacerun: yes;"> </span>Here are some compliance tips:</div><div class="LLBody" style="margin: 0in 0in 12pt 0.5in; mso-list: l0 level1 lfo2; text-indent: -0.25in;"><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt 'Times New Roman';"> </span></span></span>Ensure all advertisements, in any medium or in any form, do not contain any misrepresentations or misleading statements.<span style="mso-spacerun: yes;"> </span>A statement that is misleading cannot be cured by a disclosure that contains conflicting information.</div><div class="LLBody" style="margin: 0in 0in 12pt 0.5in; mso-list: l0 level1 lfo2; text-indent: -0.25in;"><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt 'Times New Roman';"> </span></span></span>Comply with the Truth in Lending Act and the Consumer Leasing Act and the regulations issued under these Acts.<span style="mso-spacerun: yes;"> </span>This includes, for instance, making clear and conspicuous disclosures when advertising certain terms related to issuing consumer credit.</div><div class="LLBody" style="margin: 0in 0in 12pt 0.5in; mso-list: l0 level1 lfo2; text-indent: -0.25in;"><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt 'Times New Roman';"> </span></span></span>Ensure your disclosures are clear and conspicuous.<span style="mso-spacerun: yes;"> </span>The FTC provides guidance that to be clear and conspicuous, “the disclosure shall be in understandable language and syntax. Nothing contrary to, inconsistent with, or in mitigation of the disclosure shall be used in any advertisement or promotion.”<span style="mso-spacerun: yes;"> </span>The FTC also provides the following examples:</div><div class="LLBody" style="margin: 0in 0in 12pt 1in; mso-list: l0 level2 lfo2; text-indent: -0.25in;"><span style="font-family: 'Courier New'; mso-fareast-font-family: 'Courier New';"><span style="mso-list: Ignore;">o<span style="font: 7pt 'Times New Roman';"> </span></span></span>Print: the disclosure should be in a type size, location, and in print that contrasts with the background against which it appears, sufficient for an ordinary consumer to notice, read, and comprehend it.</div><div class="LLBody" style="margin: 0in 0in 12pt 1in; mso-list: l0 level2 lfo2; text-indent: -0.25in;"><span style="font-family: 'Courier New'; mso-fareast-font-family: 'Courier New';"><span style="mso-list: Ignore;">o<span style="font: 7pt 'Times New Roman';"> </span></span></span>TV or Video: an audio disclosure should be delivered in a volume and cadence sufficient for an ordinary consumer to hear and comprehend it. A video disclosure shall be of a size and shade and appear on the screen for a duration and in a location sufficient for an ordinary consumer to read and comprehend it.</div><div class="LLBody" style="margin: 0in 0in 12pt 1in; mso-list: l0 level2 lfo2; text-indent: -0.25in;"><span style="font-family: 'Courier New'; mso-fareast-font-family: 'Courier New';"><span style="mso-list: Ignore;">o<span style="font: 7pt 'Times New Roman';"> </span></span></span>Radio: the disclosure should be delivered in a volume and cadence sufficient for an ordinary consumer to hear and comprehend it.</div><div class="LLBody" style="margin: 0in 0in 12pt;">There is a comment period before the proposed settlements become effective.<span style="mso-spacerun: yes;"> </span>Once effective, they will be persuasive evidence of the standards car dealerships must abide by for future FTC investigations.<span style="mso-spacerun: yes;"> </span>Next up may be the $$ down and $$ per month claims.<a href="" name="_GoBack"></a></div><div class="LLBody" style="margin: 0in 0in 12pt;"><u>Authors:</u></div><div class="LLBody" style="margin: 0in 0in 12pt;"><table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-bottom: medium none; border-collapse: collapse; border-left: medium none; border-right: medium none; border-top: medium none; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"><td style="background-color: transparent; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; border-right: windowtext 1pt solid; border-top: windowtext 1pt solid; mso-border-alt: solid windowtext .5pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 239.4pt;" valign="top" width="319"><div class="MsoNormal" style="margin: 0in 0in 0pt;"><em><span style="mso-bidi-font-family: 'Times New Roman'; mso-bidi-theme-font: minor-bidi;">Mike Schulman</span></em><i><span style="color: #222222; font-family: 'Arial','sans-serif'; font-size: 11pt; mso-fareast-font-family: 'Times New Roman';"></span></i></div></td><td style="background-color: transparent; border-bottom: windowtext 1pt solid; border-left: #f0f0f0; border-right: windowtext 1pt solid; border-top: windowtext 1pt solid; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 239.4pt;" valign="top" width="319"><div class="MsoNormal" style="margin: 0in 0in 0pt;"><i><span style="color: #222222; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman';">Jason Mueller</span></i><span style="color: #222222; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman';"></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
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<tr style="mso-yfti-irow: 1; mso-yfti-lastrow: yes;"><td style="background-color: transparent; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; border-right: windowtext 1pt solid; border-top: #f0f0f0; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 239.4pt;" valign="top" width="319"><span style="color: blue; mso-no-proof: yes; text-decoration: none; text-underline: none;"><shapetype coordsize="21600,21600" filled="f" id="_x0000_t75" o:preferrelative="t" o:spt="75" path="m@4@5l@4@11@9@11@9@5xe" stroked="f"><stroke joinstyle="miter"></stroke><formulas><f eqn="if lineDrawn pixelLineWidth 0"></f><f eqn="sum @0 1 0"></f><f eqn="sum 0 0 @1"></f><f eqn="prod @2 1 2"></f><f eqn="prod @3 21600 pixelWidth"></f><f eqn="prod @3 21600 pixelHeight"></f><f eqn="sum @0 0 1"></f><f eqn="prod @6 1 2"></f><f eqn="prod @7 21600 pixelWidth"></f><f eqn="sum @8 21600 0"></f><f eqn="prod @7 21600 pixelHeight"></f><f eqn="sum @10 21600 0"></f></formulas><path gradientshapeok="t" o:connecttype="rect" o:extrusionok="f"></path><lock aspectratio="t" v:ext="edit"></lock></shapetype><shape alt="http://www.lockelord.com/files/Professional/268ad88a-110a-4a72-bfab-65d8442e9952/Presentation/HighResPhoto/Schulman_Mike__621.jpg" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghldq8cOTn0WyLrBvVbJOg8EGaCdBaIAO0y8waKlv4nVD7XeePVFihVW3bxvr_cflCHsCY1r2sXoiAbFWiMsihciDVnC8MScxP9p9HIVEwi25ca1gmdZId2oo5DseRHnFqStyXLPJIC-mQ/s1600/Mueller_Jason_hi.jpg" id="Picture_x0020_3" o:button="t" o:spid="_x0000_i1026" style="height: 112.5pt; mso-wrap-style: square; visibility: visible; width: 96.75pt;" type="#_x0000_t75"><imagedata o:title="Schulman_Mike__621" src="file:///C:\Users\kandra\AppData\Local\Temp\msohtmlclip1\01\clip_image001.jpg"><img src="http://www.lockelord.com/files/Professional/268ad88a-110a-4a72-bfab-65d8442e9952/Presentation/HighResPhoto/Schulman_Mike__621.jpg" style="display: block;" /></imagedata></shape></span> <br />
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</div><div class="LLBody" style="margin: 0in 0in 12pt;"></div></b>Jason Muellerhttp://www.blogger.com/profile/09266910595204135544noreply@blogger.comtag:blogger.com,1999:blog-227273970830005333.post-74759841925532052012-03-12T23:36:00.002-05:002012-03-12T23:36:35.775-05:00The Lorax and the Mazda CX-5: Greenwashing in a movie tie-in advertising campaign?<br />
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Are we in the midst of another case of a “citizen’s arrest” for alleged Greenwashing? In the case of a Mazda advertising campaign tied in to the release of the movie adaptation of Dr. Suess’ The Lorax, the answer might be yes. </div>
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As blog readers with young ones at home probably know, the Lorax movie was this past weekend’s box office champ here in the United States, grossing nearly $40 million. And theatergoers were not the only ones attracted to this family-friendly fare with a sustainability-positive message. Mazda, seeking to promote its CX-5 compact SUV, and in particular its Skyactiv technology, jumped in with a piece of movie tie-in marketing. One place to see the ad is on <a href="http://www.youtube.com/watch?v=vrvg33vkdFI" target="_blank">Youtube</a>, where Mazda touts that it “cares an awful lot”, and that the CX-5 with Skyactiv technology has received the “Truffula Tree Seal of Approval”. Before going further, I should note that I currently own a Mazda, and have had a number of other Mazda cars over the years. So I respect the product as a consumer, and in no way intend for this post to “pile on” the criticism this particular ad has received.</div>
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What seemed like a good opportunity to Mazda, however, now stands as yet another cautionary tale for companies looking to advertise the sustainability of products and services. Mazda’s ad, touting the environmental friendliness of the CX-5 via Skyactiv’s fuel economy-promoting benefits against a Lorax-inspired tableau, has quickly come under fire from the “green” media and the public. Take another look at that Youtube link, where the comments are overwhelmingly negative – along the lines of “Epic fail Mazda” – and the ad has generated 1,341 “dislikes” against 173 “likes." One commenter takes Mazda to task for “using an environmental movie to advertise an SUV” and analogizes it to using “Ghandi to advertise a gun club." </div>
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But the toughest criticism has come from the Guardian’s “Environment blog” which savages the ad for its “crass chicanery” and holds it out as an example of greenwashing at its worst – and in the case of the Lorax himself “character assassination." <a href="http://www.guardian.co.uk/environment/blog/2012/feb/27/mazda-advert-dr-seuss-lorax?newsfeed=true" target="_blank">This Guardian blogger</a> even uses the ad as a jumping-off point to explore Mazda’s entire green strategy in a critical way. One can safely assume that this is probably not what Mazda intended with this ad. </div>
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Perhaps most troubling for companies that have a legitimate desire to advertise sustainable products and services is the absolute speed at which a well-intended campaign can fall into critique for alleged greenwashing offenses. And in today’s marketplace, that criticism can come from all sides, including government agencies, media, and the general public. Further, not only does the criticism emanate from several sources, its sting affects both the sponsor (Mazda) and the co-branded product (Universal's The Lorax film). Now both Mazda <i>and </i>Universal have to deal with the fallout. These unintended consequences are the types of contingencies that a well-informed advertising counsel can help a client consider, prior to the ads' publication.</div>
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While policing of greenwashing claims is warranted, there is a risk that such policing will have a chilling effect on advertising of sustainable products and services generally. Any resultant drop in innovative activity on the part of companies or missed opportunities to inform consumers of more sustainable choices would be a shame. For now though, companies must proceed cautiously with such advertising efforts. Mazda may be the latest to have learned this lesson, but they won’t be the last.</div>
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<u>Author: Gaston Kroub</u></div>
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<br /></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-227273970830005333.post-40611498759528330442012-02-28T18:50:00.002-06:002012-02-29T18:14:46.704-06:00Self-Regulatory Online Privacy Program Part of Comprehensive White House Proposal<br />
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<span style="font-family: Arial, Helvetica, sans-serif;">The White House, Department of Commerce and
Federal Trade Commission each <a href="http://www.aaf.org/default.asp?id=1322">commended</a>
the <a href="http://www.aboutads.info/">Digital Advertising Alliance (DAA) </a>self-regulatory
privacy program for online, interest-based advertising. This event was one carefully orchestrated
part of a significant and
comprehensive <a href="http://www.whitehouse.gov/sites/default/files/privacy-final.pdf">Consumer Privacy Bill of Rights</a>
the White House unveiled on the same day. This Bill of Rights is intended to provide consumers with greater
online privacy protection through voluntary codes of conduct, federal
legislation, and enforcement by the Federal Trade Commission and state
Attorneys General.<o:p></o:p></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Advertisers and agencies will likely
watch closely this DAA self-regulatory program that is a White House-commended
form of voluntary code of conduct provided for in the Consumer Privacy Bill of
Rights. Online advertisers in all
industries will need to review their policies and processes for compliance with
these DAA principles and programs as a forerunner of possible future regulatory
and court action. <o:p></o:p></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">While Internet companies clearly
seem to have gotten the message that they must regulate themselves or be
regulated, they are likely to be more than a little nervous that a large
percentage of consumers may opt-out, which could result in a significant
re-tooling of behavioral advertising revenue models. Notably, the self-regulation measures
generally do not impact first-party behavioral advertising (such as targeted
ads sent by Amazon to Amazon customers, or sponsored Google search results).<o:p></o:p></span></div>
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<b><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></b></div>
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<b><span style="font-family: Arial, Helvetica, sans-serif;">Digital
Advertising Alliance<o:p></o:p></span></b></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">The Digital Advertising Alliance is
a consortium of the nation’s largest media and marketing associations,
including American Association of Advertising Agencies, the Association of
National Advertisers, the National Advertising Federation, the Direct Marketing
Association, the Interactive Advertising Bureau, and the Network Advertising
Initiative. <o:p></o:p></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">The DAA has several programs for
guidance of advertisers for all types of businesses, including advertisers,
agencies, web publishing or non-profits that have a presence on the web.<o:p></o:p></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Most recently, last January, the DAA
launched the “Your Ad choices” public education advertising campaign designed
to inform consumers about interest-based advertising and how they can take
greater control of their online privacy through the ad choices icon: <o:p></o:p></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-size: 11pt;">The educational campaign includes banner advertising that directs consumers to the icon and also links to a new informational </span><a href="http://www.youradchoices.com/" style="font-size: 11pt;"><span style="font-size: 11pt;">website</span></a><span style="font-size: 11pt;">. According to the DDA, “[w]henever you see the Icon, you’ll know two things: (1) You can find out when information about your online interests is being gathered or used to customize the Web ads you see, and (2) you can choose whether to continue seeing these types of ads.”</span>
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<span style="font-size: 11pt;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-size: 11pt;">The
first program of the DAA was launched in 2009 for Online Behavioral Advertising
(OBA) by introducing seven </span><a href="http://www.aboutads.info/obaprinciples"><span style="font-size: 11pt;">self-regulatory
principles of OBA.</span></a><span style="font-size: 11pt;"><o:p></o:p></span></span></div>
<div class="LLBody" style="text-align: justify;">
<span style="font-size: 11pt;"><span style="font-family: Arial, Helvetica, sans-serif;">In
2011 the DAA expanded the scope of its self-regulatory program beyond OBA with
a self-regulatory guide for Multi-Site Data Principles” which established a
framework governing the collection of online data from a particular computer or
device regarding web viewing over time and across non-affiliated websites. <o:p></o:p></span></span></div>
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<span style="font-size: 11pt;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span></div>
<div class="LLBody" style="text-align: justify;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-size: 11pt;">See
our previous </span><a href="http://www.lockelord.com/qs_2011admark_behavioradv/"><span style="font-size: 11pt;">analysis </span></a><span style="font-size: 11pt;">of
the DDA “Multi-site Data Principles.
The Multi-Site Data Principles codified existing industry practices
prohibiting the collection of multi-site data for the purpose of any adverse
determination, including employment, credit, health treatment or insurance
eligibility, as well as specific protections for sensitive data concerning
children, health and financial data. <o:p></o:p></span></span></div>
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<b><span style="font-size: 11pt;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span></b></div>
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<b><span style="font-size: 11pt;"><span style="font-family: Arial, Helvetica, sans-serif;">Pointer to the Future of Compliance<o:p></o:p></span></span></b></div>
<div class="LLBody" style="text-align: justify;">
<b><span style="font-size: 11pt;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span></b></div>
<span style="font-size: 11pt;"><span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-size: 11pt;">The
commendation by the White House and government agencies may signal a new era in
self-regulation and place greater focus on compliance with the DDA guidelines
as being compliant with the direction that online consumer privacy law is
taking.</span><span style="font-size: 11pt;"> </span><span style="font-size: 11pt;">Some privacy activists, however,
have complained that these and similar guidelines</span><span style="font-size: 11pt;"> </span><span style="font-size: 11pt;">do not go far enough, and that the government
should not trust this industry to regulate itself.</span><span style="font-size: 11pt;"> </span><span style="font-size: 11pt;">Time will tell.</span><br />
<span style="font-size: 11pt;"><br /></span></span></span><br />
<br />
<div style="text-indent: -24px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><u>Authors</u>:</span></div>
<div style="text-indent: -24px;">
<span style="font-family: Arial, Helvetica, sans-serif; text-align: center;"> Paul C. Van Slyke Bart Huffman</span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg929lxykD7Uhq3U1tVX_r91enTrEjfGwFcsoDyjgRKjdBpktFYDkBfSBdc4PsI8QBZEdG2HZBhetCcXaDmb7YoPDrpVPIGblQk9F0AQOUxhZMCNnD6k1sY6a6JUQnikgBC5b_yD893Dns/s1600/vanSlyke_Paul__124.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><span style="font-family: Arial, Helvetica, sans-serif;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg929lxykD7Uhq3U1tVX_r91enTrEjfGwFcsoDyjgRKjdBpktFYDkBfSBdc4PsI8QBZEdG2HZBhetCcXaDmb7YoPDrpVPIGblQk9F0AQOUxhZMCNnD6k1sY6a6JUQnikgBC5b_yD893Dns/s1600/vanSlyke_Paul__124.jpg" /> </span></a><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSNO7usXjzIEKVTamUtQleCgq4ofNL1ReWCNGtUOmXW6-V2QnZ_HKCM2V_9ebBMb16xH82BYnVBVv3HiXpUD9NTpwle3pbxo1RT87RHqDGYV7l4su6JiWkeSL-237DvvBcbjbklgwuBww/s1600/HuffmanBart_201201_hi.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><span style="font-family: Arial, Helvetica, sans-serif;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSNO7usXjzIEKVTamUtQleCgq4ofNL1ReWCNGtUOmXW6-V2QnZ_HKCM2V_9ebBMb16xH82BYnVBVv3HiXpUD9NTpwle3pbxo1RT87RHqDGYV7l4su6JiWkeSL-237DvvBcbjbklgwuBww/s1600/HuffmanBart_201201_hi.jpg" /></span></a></div>
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<br class="Apple-interchange-newline" /></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-227273970830005333.post-42886820035009198182012-02-27T13:08:00.003-06:002012-02-27T13:15:13.899-06:00White House Announces New Consumer Privacy Bill of Rights Affecting Online Advertising<br />
<div class="LLBody" style="text-align: justify;">
The White House recently announced a significant
and comprehensive <a href="http://www.whitehouse.gov/sites/default/files/privacy-final.pdf">Consumer Privacy Bill of Rights</a> that, if adopted as law, will
have major impact on advertisers, agencies, Internet companies, and consumers.
The Obama administration is raising the bar on this measure in an area where
Congress has struggled in order to provide consumers with greater online
privacy protection through voluntary codes of conduct, federal legislation, and
enforcement by the FTC and state Attorneys General. The measure also provides for
a federal national standard for notification of data breaches and preemption of
all similar state law.<o:p></o:p></div>
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<br /></div>
<div class="LLBody" style="text-align: justify;">
On the same day, the White House, Department of
Commerce and Federal Trade Commission each <a href="http://www.aaf.org/default.asp?id=1322">commended</a> the <a href="http://www.aboutads.info/">Digital Advertising Alliance (DAA) </a><span class="MsoHyperlink"> </span><span class="MsoHyperlink">for its
</span>self-regulatory privacy program for online, interest-based
advertising. On also on that day,
the DAA <a href="http://www.aboutads.info/resource/download/DAA%20White%20House%20Event.pdf">announced</a> an industry self-regulatory
program “that will immediately begin work to recognize browser-based choices
with a set of tools by which consumers can express their preferences under the
DAA Principles." Major Internet players such as Google and Microsoft
agreed to honor consumer do-not-track choices, a particularly significant
development given that those players represent the majority of online
behavioral advertising delivery and given that such a commitment is subject to
FTC enforcement.<o:p></o:p></div>
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<br /></div>
<div class="LLBody" style="text-align: justify;">
The White House initiative is an extension of a <a href="http://www.commerce.gov/blog/2010/12/16/released-policy-framework-protecting-consumer-privacy-online-while-supporting-innova">privacy report</a> issued by the Department of
Commerce on Dec. 16, 2010. This privacy
report was made by an <a href="http://www.ntia.doc.gov/category/internet-policy-task-force">Internet Policy Task Force </a>charged to conduct a
“comprehensive review of the nexus between privacy policy, copyright, global
free flow of information, cybersecurity, and innovation in the Internet
economy.”<o:p></o:p></div>
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<b><br /></b></div>
<div class="LLBody" style="text-align: justify;">
<b>Multi-Pronged Approach</b><o:p></o:p></div>
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<span lang="EN"><br /></span></div>
<div class="LLBody" style="text-align: justify;">
<span lang="EN">The
White House said the “blueprint will guide efforts to protect privacy and
assure continued innovation in the Internet economy by providing flexible
implementation mechanisms to ensure privacy rules keep up with ever-changing
technologies.” The action steps for this
blue print are:<o:p></o:p></span></div>
<div class="LLBody" style="text-align: justify;">
<b style="text-indent: -0.25in;"><span lang="EN" style="color: #333333;"><br /></span></b></div>
<div class="LLBody" style="text-align: justify;">
</div>
<ul>
<li><b style="text-indent: -0.25in;"><span lang="EN" style="color: #333333;">Making Enforceable the
Consumer Privacy Bill of Rights:</span></b><span lang="EN" style="color: #333333; text-indent: -0.25in;"> The Commerce Department’s National Telecommunications
and Information Administration (NTIA) will soon convene Internet companies and
consumer advocates to develop enforceable codes of conduct that comply with the
Consumer Privacy Bill of Rights, building on strong enforcement by the Federal Trade
Commission. The Administration will also work with Congress to enact
comprehensive privacy legislation based on the rights outlined here.</span></li>
<li><b style="text-indent: -0.25in;"><span lang="EN" style="color: #333333;">Achieving privacy policies for a Global, Open Internet:</span></b><span lang="EN" style="color: #333333; text-indent: -0.25in;"> The Administration’s
plan lays the groundwork for increasing interoperability between the U.S. data
privacy framework and those of U.S. trading partners.</span></li>
<li><b style="text-indent: -0.25in;"><span lang="EN" style="color: #333333;">Industry Action:</span></b><span lang="EN" style="color: #333333; text-indent: -0.25in;"> In response to calls from the
Administration and the Federal Trade commission (FTC), leading Internet
companies and online advertising networks are committing to use Do Not Track
technology from the World Wide Web Consortium in most major web browsers to
make it easier for users to control online tracking.</span></li>
</ul>
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<b>
Seven Fundamental Protections<o:p></o:p></b></div>
<div class="LLBody" style="text-align: justify;">
According to the White House <a href="http://www.whitehouse.gov/the-press-office/2012/02/23/we-can-t-wait-obama-administration-unveils-blueprint-privacy-bill-rights">press release</a>, the Bill of Rights consists of
seven fundamental protections that consumers should expect from companies:</div>
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<b style="text-indent: -0.25in;"><br /></b></div>
<div class="LLBody" style="text-align: justify;">
</div>
<ul>
<li><b style="text-indent: -0.25in;">“Individual Control</b><span style="text-indent: -0.25in;">: Consumers have a right
to exercise control over what personal data organizations collect from them and
how they use it.</span></li>
<li><b style="text-indent: -0.25in;">Transparency</b><span style="text-indent: -0.25in;">: Consumers have a right
to easily understandable information about privacy and security practices.</span></li>
<li><b style="text-indent: -0.25in;">Respect for Context:</b><span style="text-indent: -0.25in;"> Consumers have a right to
expect that organizations will collect, use, and disclose personal data in ways
that are consistent with the context in which consumers provide the data.</span></li>
<li><b style="text-indent: -0.25in;">Security:</b><span style="text-indent: -0.25in;"> Consumers have a right to
secure and responsible handling of personal data.</span></li>
<li><b style="text-indent: -0.25in;">Access and Accuracy:</b><span style="text-indent: -0.25in;"> Consumers have a right to
access and correct personal data in usable formats, in a manner that is
appropriate to the sensitivity of the data and the risk of adverse consequences
to consumers if the data are inaccurate.</span></li>
<li><b style="text-indent: -0.25in;">Focused Collection</b><span style="text-indent: -0.25in;">: Consumers have a right
to reasonable limits on the personal data that companies collect and retain.</span></li>
<li><b style="text-indent: -0.25in;">Accountability: </b><span style="text-indent: -0.25in;"> Consumers have a right to have
personal data handled by companies with appropriate measures in place to assure
they adhere to the Consumer Privacy Bill of Rights.”</span></li>
</ul>
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<o:p></o:p></div>
<div class="LLBody" style="text-align: justify;">
<b>Federal Privacy Legislation</b><o:p></o:p></div>
<div class="LLBody" style="text-align: justify;">
The White House Report, ambitiously titled “Consumer Data
Privacy in a Networked World: A Framework for Protecting Privacy and Promoting
Innovation in the Global Digital Economy,” calls for Congress to enact legislation to:</div>
<div class="LLBody" style="text-align: justify;">
</div>
<ul>
<li><span style="text-indent: -0.25in;">Codify
the Consumer Privacy Bill of Rights</span></li>
<li><span style="text-indent: -0.25in;">Grant the FTC and state Attorneys General
authority to enforce the law directly</span></li>
<li><span style="text-indent: -0.25in;">Pre-empt
state privacy laws that are inconsistent with the Consumer Privacy Bill of
Rights</span></li>
<li><span style="text-indent: -0.25in;">Establish
a safe harbor from enforcement for companies that adhere to voluntary codes of
conduct that the FTC has reviewed and adopted</span></li>
<li><span style="text-indent: -0.25in;">Set
a national standard for security breach notification that pre-empts existing
laws in 47 states.</span></li>
</ul>
<div style="text-indent: -24px;">
<u>Authors</u>:</div>
<div style="text-indent: -24px;">
<span style="text-align: center;"> Paul C. Van Slyke Bart Huffman</span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg929lxykD7Uhq3U1tVX_r91enTrEjfGwFcsoDyjgRKjdBpktFYDkBfSBdc4PsI8QBZEdG2HZBhetCcXaDmb7YoPDrpVPIGblQk9F0AQOUxhZMCNnD6k1sY6a6JUQnikgBC5b_yD893Dns/s1600/vanSlyke_Paul__124.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg929lxykD7Uhq3U1tVX_r91enTrEjfGwFcsoDyjgRKjdBpktFYDkBfSBdc4PsI8QBZEdG2HZBhetCcXaDmb7YoPDrpVPIGblQk9F0AQOUxhZMCNnD6k1sY6a6JUQnikgBC5b_yD893Dns/s1600/vanSlyke_Paul__124.jpg" /> </a><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSNO7usXjzIEKVTamUtQleCgq4ofNL1ReWCNGtUOmXW6-V2QnZ_HKCM2V_9ebBMb16xH82BYnVBVv3HiXpUD9NTpwle3pbxo1RT87RHqDGYV7l4su6JiWkeSL-237DvvBcbjbklgwuBww/s1600/HuffmanBart_201201_hi.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSNO7usXjzIEKVTamUtQleCgq4ofNL1ReWCNGtUOmXW6-V2QnZ_HKCM2V_9ebBMb16xH82BYnVBVv3HiXpUD9NTpwle3pbxo1RT87RHqDGYV7l4su6JiWkeSL-237DvvBcbjbklgwuBww/s1600/HuffmanBart_201201_hi.jpg" /></a></div>
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<o:p></o:p></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-227273970830005333.post-47952612080329071672012-02-22T19:11:00.000-06:002012-02-22T19:11:15.872-06:00NRLB Weighs in on Employer Social Media Policies and Employee Disciplinary Action<span style="text-align: justify;">The National Labor Relations Board (“NLRB”) recently provided a</span><a href="http://mynlrb.nlrb.gov/link/document.aspx/09031d45807d6567" style="text-align: justify;"> second</a><a href="http://mynlrb.nlrb.gov/link/document.aspx/09031d45807d6567" style="text-align: justify;"> report offering additional guidance</a><span style="text-align: justify;"> to employers on disciplinary actions and social media policies. The report highlights 14 cases: half involving employee discharges based on employees’ Facebook posts; and the other half reviewing employer social media policies. As expressed by the NLRB, its guidance seeks to underscore two points:</span><br />
<ul>
<li><div style="text-align: justify;">
Employer policies should not be so sweeping that they prohibit the kinds of activity protected by federal labor law, such as the discussion of wages or working conditions among employees; and</div>
</li>
<li><div style="text-align: justify;">
An employee’s comments on social media are generally not protected if they are mere gripes not made in relation to group activity among employees. </div>
</li>
</ul>
<div style="text-align: justify;">
The NLRB is particularly concerned about employers infringing upon employee National Labor Relations Act (“NLRA”) rights “to engage in … concerted activities for … mutual aid and protection,” including activities to address the terms and conditions of the employees’ employment. All employees covered by the NLRA, whether union members or not, have these rights. While the NLRB acknowledges that individual employee gripes made on social media which are not directed toward sparking group discussion or activity are generally not protected, the NLRB has continued to find that many disciplinary decisions based on social media activity infringe upon NLRA rights. Further, even if the disciplinary action at issue did not infringe upon such rights, the NLRB has continued to find that employer policies with broad or vague language could reasonably be construed by employees to restrict conduct protected by the NLRA. The January 24, 2012, publication is instructive to employers—both as a reminder regarding social media/Internet activity-related disciplinary actions, and as a source of specific examples of language the NLRB disfavors in social media policies. </div>
<ul>
<li><div style="text-align: justify;">
<strong>Recognize employees’ rights under Section 7 of the NLRA.</strong> The NLRB indicates that social media policies should contain language to clarify that the policy does not restrict employees’ rights under the NLRA, including their Section 7 rights to engage in concerted activity concerning the terms and conditions of employment or other mutual aid or protection. However, while this language may show the employer’s good intent, the NLRB does not find such a clause to be sufficient to address otherwise vague or overbroad terms that employees may perceive to prohibit Section 7 protected activity.</div>
</li>
<div style="text-align: justify;">
</div>
<li><div style="text-align: left;">
<strong>Watch the adjectives.</strong> The NLRB’s memo stressed repeatedly that vague terms such as “appropriate/inappropriate,” “professional/unprofessional,” “disparaging” and “disrespectful,” when used in broad statements in social media policies, can be construed by employees as restricting their Section 7 rights and should be avoided.</div>
</li>
<li><div style="text-align: left;">
<strong>Context and examples can help.</strong> The NLRB indicated that with the addition of context and specific examples the employer can narrow the behavior prohibited by social media policies. Thus, an otherwise vague term like “appropriate” may be lawful if used within a narrowed context because the employee would understand his/her Section 7 rights are not covered.</div>
</li>
<li><div style="text-align: left;">
<strong>Requiring prior authorization or disclaimers that opinions expressed belong solely to the employee should be limited. </strong>Except in the case of endorsements, testimonials or other positive statements about an employer or its products, which are governed by Federal Trade Commission regulations, the NLRB found that requiring employees to get prior authorization, or to always identify their position with the company and state that the opinions belong to the employee alone, could be too burdensome. </div>
</li>
<div style="text-align: left;">
<br /></div>
<li><div style="text-align: left;">
<strong>Identity of employer should not be broadly prohibited.</strong> Again, except with endorsements and testimonials, the NLRB found that using the company’s name or logo may be a tool in an employee’s outreach efforts for protected concerted activity and should not be subject to a blanket prohibition or requirement of prior approval before use. </div>
</li>
</ul>
<div style="text-align: justify;">
Given the NLRB’s issuance of this follow-up report, even employers who have updated their social media policies as recently as a year or two ago may want to take a look and revise their policies accordingly. Employers should stay tuned for future decisions from the NLRB.<br />
<br />
<u>Authors:</u></div>
<br />
<div style="text-align: left;">
<em><span style="font-size: x-small;">Megan E. Alexander Hanna Fister Norvell Gregory T. Casamento</span></em><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhuc9y294mU8sPEh8pVMX7OVnzFScKFPtjA5lq5653FgujEk911JJCSFj0I45k0dn5bJEUVLlT8mmTEQsgtrhHN3AoRVDXbit0Bq4ura4kk3P7FkuhHdoqvZfLRhAZlmFoenycYj01yTqM/s1600/alexander_megan_115.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5712048967611474978" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhuc9y294mU8sPEh8pVMX7OVnzFScKFPtjA5lq5653FgujEk911JJCSFj0I45k0dn5bJEUVLlT8mmTEQsgtrhHN3AoRVDXbit0Bq4ura4kk3P7FkuhHdoqvZfLRhAZlmFoenycYj01yTqM/s320/alexander_megan_115.jpg" style="height: 150px; width: 129px;" /></a> <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjinNG7YA22j0asNpe3FZ0hNzDY7OBXLJoMycXhExas40el2CsAuW5eUNItjc9Tq2bI6p5se7T1F_Am5UcsoB54w48VYtRV9AeGJhs_vK0RQ3wJkyubhiNmR9tcWP9Qiylf6tXPHCI3D3U/s1600/Norvell_Hanna_hi.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5712049451484800722" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjinNG7YA22j0asNpe3FZ0hNzDY7OBXLJoMycXhExas40el2CsAuW5eUNItjc9Tq2bI6p5se7T1F_Am5UcsoB54w48VYtRV9AeGJhs_vK0RQ3wJkyubhiNmR9tcWP9Qiylf6tXPHCI3D3U/s320/Norvell_Hanna_hi.jpg" style="cursor: hand; height: 150px; width: 129px;" /></a> <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjQnwEIHtZthvRh8ejhrDlCEN4ChS7hfzOqHcRe5rYTJUpZ4dpQOaFLjw7gPkndZXMYro9YZ4EyucMvVwZOuFxgUSfjqPMWqLiLL4HbYJ7SEXsPJZy9Z3QyCImqtcxR3_91IcxYSpDVFhE/s1600/Casamento_Gregory_08.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5712049774618116274" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjQnwEIHtZthvRh8ejhrDlCEN4ChS7hfzOqHcRe5rYTJUpZ4dpQOaFLjw7gPkndZXMYro9YZ4EyucMvVwZOuFxgUSfjqPMWqLiLL4HbYJ7SEXsPJZy9Z3QyCImqtcxR3_91IcxYSpDVFhE/s320/Casamento_Gregory_08.jpg" style="cursor: hand; height: 150px; width: 129px;" /></a><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjinNG7YA22j0asNpe3FZ0hNzDY7OBXLJoMycXhExas40el2CsAuW5eUNItjc9Tq2bI6p5se7T1F_Am5UcsoB54w48VYtRV9AeGJhs_vK0RQ3wJkyubhiNmR9tcWP9Qiylf6tXPHCI3D3U/s1600/Norvell_Hanna_hi.jpg"></a> </div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-227273970830005333.post-38799062594440421302012-01-16T05:56:00.001-06:002012-01-16T05:56:00.395-06:00Social Media Site Ownership: Who controls your account?<div align="center" class="LLBody" style="margin: 0in 0in 12pt; text-align: center;"><b style="mso-bidi-font-weight: normal;"><u><span style="font-family: "Arial", "sans-serif"; font-size: 11pt;"><span style="text-decoration: none;"></span></span></u></b></div><div class="LLBody" style="line-height: 115%; margin: 0in 0in 12pt; text-align: justify;"><span style="font-family: "Arial", "sans-serif"; font-size: 11pt; line-height: 115%;">If you are like many companies, you likely have a Twitter, Facebook, YouTube or other social media account used for public relations, product promotion or simply advertising and marketing.<span style="mso-spacerun: yes;"> </span>Such accounts are valuable to a business; however, the ownership and exact value of such accounts is uncertain.<span style="mso-spacerun: yes;"> </span>A recently filed </span><a href="http://www.nytimes.com/2011/12/26/technology/lawsuit-may-determine-who-owns-a-twitter-account.html?_r=1"><span style="font-family: "Arial", "sans-serif"; font-size: 11pt; line-height: 115%;"><span style="color: blue;">lawsuit </span></span></a><span style="font-family: "Arial", "sans-serif"; font-size: 11pt; line-height: 115%;">filed in California federal court raises these issues and may provide some guidance.</span></div><div class="LLBody" style="line-height: 115%; margin: 0in 0in 12pt; text-align: justify;"><b style="mso-bidi-font-weight: normal;"><u><span style="font-family: "Arial", "sans-serif"; font-size: 11pt; line-height: 115%;">The California Lawsuit</span></u></b></div><div class="MsoNormal" style="background: white; line-height: 115%; margin: 0in 0in 11.25pt; mso-margin-top-alt: auto; text-align: justify;"><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">California company PhoneDog is </span><a href="http://www.scribd.com/doc/77265429/Phone-Dog-First-Amended-Complaint"><span style="font-family: "Arial", "sans-serif"; font-size: 11pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><span style="color: blue;">suing</span></span></a><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"> Noah Kravitz alleging harm from his continued use of a Twitter account that was created while Kravitz was employed at PhoneDog.<span style="mso-spacerun: yes;"> </span>During his time at PhoneDog, the account grew to 17,000 followers.<span style="mso-spacerun: yes;"> </span>The suit seeks $340,000 in damages, as well as an injunction against Mr. Kravitz from disclosing or trading the list of followers or soliciting business from them.<span style="mso-spacerun: yes;"> </span></span></div><div class="MsoNormal" style="background: white; line-height: 115%; margin: 0in 0in 11.25pt; mso-margin-top-alt: auto; text-align: justify;"><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">PhoneDog offers an interactive web site with mobile news and mobile phone plan comparisons and claims 2.5 million unique visitors each month (See </span><a href="http://www.phonedog.com/long-distance/default.aspx?arcid=7&gclid=CLW0sNKqua0CFXO-tgodyU6Tmg"><span style="font-family: "Arial", "sans-serif"; font-size: 11pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><span style="color: blue;">phonedog</span></span></a><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">.com).<span style="mso-spacerun: yes;"> </span>A significant source of the company’s income derives from the sale of ad space on its website.<span style="mso-spacerun: yes;"> </span>To increase page views, PhoneDog requests it agents and employees to maintain Twitter accounts and to tweet links directing followers to PhoneDog’s website.</span></div><div class="MsoNormal" style="background: white; line-height: 115%; margin: 0in 0in 11.25pt; mso-margin-top-alt: auto; text-align: justify;"><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Defendant Kravitz was a social media specialist while employed by the company.<span style="mso-spacerun: yes;"> </span>He published tweets on Twitter under the “handle” or account name “@Phonedog_Noah.”<span style="mso-spacerun: yes;"> </span>Kravitz resigned on good terms with PhoneDog and he kept the Twitter account, changing his handle to “@noahkravitz.”<span style="mso-spacerun: yes;"> </span>When PhoneDog asked Kravitz to return control of the Twitter account, he refused and PhoneDog filed suit alleging conversion, misappropriation of trade secrets and other claims.</span></div><div class="MsoNormal" style="background: white; line-height: 115%; margin: 0in 0in 11.25pt; mso-margin-top-alt: auto; text-align: justify;"><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">To quantify the harm caused by Kravitz, PhoneDog valued the ability to send tweets to each follower at $2.50 per month.<span style="mso-spacerun: yes;"> </span>They multiplied this value by the number of months Kravitz retained the Twitter account after his departure ($2.50 x 8 months x 17,000 customers) to reach the total of $340,000.<span style="mso-spacerun: yes;"> </span></span></div><div class="MsoNormal" style="background: white; line-height: 115%; margin: 0in 0in 11.25pt; mso-margin-top-alt: auto; text-align: justify;"><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Other cases involving similar ownership issues are also working through the courts<i style="mso-bidi-font-style: normal;"> (see e.g.,</i> <i style="mso-bidi-font-style: normal;">Eagle v. Morgan</i>, 2011 WL 6739448 (E.D. Pa. 2011).<span style="mso-spacerun: yes;"> </span>These cases will likely require further factual discovery to resolve factual issues that may have been avoided through the use of a well drafted social media policy.</span></div><div class="MsoNormal" style="background: white; line-height: 115%; margin: 0in 0in 11.25pt; mso-margin-top-alt: auto; text-align: justify;"><b style="mso-bidi-font-weight: normal;"><u><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Takeaways</span></u></b></div><div class="MsoNormal" style="background: white; line-height: 115%; margin: 0in 0in 11.25pt; mso-margin-top-alt: auto; text-align: justify;"><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Social media accounts, the goodwill they represent and the followers of customers and prospective customer are valuable assets.<span style="mso-spacerun: yes;"> </span>While the ultimate outcome of the PhoneDog lawsuit is yet to be determined, it is clear that companies should include provisions in their social media policy that govern the ownership and control of social media accounts.<span style="mso-spacerun: yes;"> </span>Companies should avoid allowing agents or employees to establish social media accounts in their own name for company business—otherwise companies risk potential loss of the account and interruption of customer communications when the account holder leaves.<span style="mso-spacerun: yes;"> </span></span></div><span style="color: black; font-family: "Arial", "sans-serif"; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">Training on use of company accounts, and monitoring of such usage is also an important aspect of mitigating company risk of litigation and potentially adverse publicity.<span style="mso-spacerun: yes;"> </span>It is certainly less expensive to prospectively clarify these issues by policy or contract rather than later seek relief through the courts.<span style="mso-spacerun: yes;"> </span></span><br />
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<table border="0" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-bottom: medium none; border-collapse: collapse; border-left: medium none; border-right: medium none; border-top: medium none; mso-border-insidev: none; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0; mso-yfti-lastrow: yes;"><td style="background-color: transparent; border-bottom-color: #f0f0f0; border-left-color: #f0f0f0; border-right-color: #f0f0f0; border-top-color: #f0f0f0; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 159.6pt;" valign="top" width="213"><div class="MsoNormal" style="margin: 0in 0in 0pt;"><u>Authors</u>:</div><div class="MsoNormal" style="margin: 0in 0in 0pt;"> <em>Paul Van Slyke </em></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGs-a4yAk26URGm2LX7Sfqdv-we9qmDVb9VNA0N-wwws45F-zkjdUexvvJ4-b4MtZiZ2A3Sfhyphenhyphen3TQuy2aav2DNwJNm56EIif2BfVMmpNtWx4kiPFAq9_eI3okqmM7P4zCSCaR-qXFKkvtW/s1600/vanSlyke_Paul__124.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" closure_uid_2d106e="5" closure_uid_k0ofkm="6" dda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGs-a4yAk26URGm2LX7Sfqdv-we9qmDVb9VNA0N-wwws45F-zkjdUexvvJ4-b4MtZiZ2A3Sfhyphenhyphen3TQuy2aav2DNwJNm56EIif2BfVMmpNtWx4kiPFAq9_eI3okqmM7P4zCSCaR-qXFKkvtW/s1600/vanSlyke_Paul__124.jpg" /></a> </div><div align="center" class="separator" style="margin: 0in 0in 0pt; text-align: center;"><span style="color: blue; mso-no-proof: yes; text-decoration: none; text-underline: none;"><shapetype coordsize="21600,21600" filled="f" id="_x0000_t75" o:preferrelative="t" o:spt="75" path="m@4@5l@4@11@9@11@9@5xe" stroked="f"><stroke joinstyle="miter"></stroke><formulas><f eqn="if lineDrawn pixelLineWidth 0"></f><f eqn="sum @0 1 0"></f><f eqn="sum 0 0 @1"></f><f eqn="prod @2 1 2"></f><f eqn="prod @3 21600 pixelWidth"></f><f eqn="prod @3 21600 pixelHeight"></f><f eqn="sum @0 0 1"></f><f eqn="prod @6 1 2"></f><f eqn="prod @7 21600 pixelWidth"></f><f eqn="sum @8 21600 0"></f><f eqn="prod @7 21600 pixelHeight"></f><f eqn="sum @10 21600 0"></f></formulas><path gradientshapeok="t" o:connecttype="rect" o:extrusionok="f"></path><lock aspectratio="t" v:ext="edit"></lock></shapetype><shape alt="Description: https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhCSXn3QEF2m8dI7NRtMzCcAJfDo5XNqLeVO9fNA48yTnZ-wdkA6nkTJwm416gAttlsH0hcFBSe5u6Pc80exmGOUr_2FJ9kCdjtee5w9_8Qo4uolSfGwCOK2RO_Gn1AxWo2qDls22g2iTUM/s1600/vanSlyke_Paul__124.jpg" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhCSXn3QEF2m8dI7NRtMzCcAJfDo5XNqLeVO9fNA48yTnZ-wdkA6nkTJwm416gAttlsH0hcFBSe5u6Pc80exmGOUr_2FJ9kCdjtee5w9_8Qo4uolSfGwCOK2RO_Gn1AxWo2qDls22g2iTUM/s1600/vanSlyke_Paul__124.jpg" id="Picture_x0020_2" o:button="t" o:spid="_x0000_i1027" style="height: 112.5pt; mso-wrap-style: square; visibility: visible; width: 97.5pt;" type="#_x0000_t75"><fill o:detectmouseclick="t"></fill><imagedata o:title="vanSlyke_Paul__124" src="file:///C:\Users\tcasagra\AppData\Local\Temp\msohtmlclip1\01\clip_image001.jpg"></imagedata></shape></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div></td><td style="background-color: transparent; border-bottom-color: #f0f0f0; border-left-color: #f0f0f0; border-right-color: #f0f0f0; border-top-color: #f0f0f0; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 159.6pt;" valign="top" width="213"><div class="LLBody" style="margin: 0in 0in 0pt;"><em></em> </div><div class="LLBody" style="margin: 0in 0in 0pt;"><em>Gregory Casamento</em><img border="0" closure_uid_k0ofkm="7" dda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEggzn2i9q6Fo0_QZXfVvfF4eePxjNe83111KtytfsndmawsUppdbUHZrFRXjQY-StaloHCqiw4kRKfOztrvjxc-R15CjuoIB-lt6zs8MSjMLXaqI3uxDRAmfNjqgbt0bu1Pq4gIEzjbAybE/s1600/Casamento_Gregory_08.jpg" /></div></td><td style="background-color: transparent; border-bottom-color: #f0f0f0; border-left-color: #f0f0f0; border-right-color: #f0f0f0; border-top-color: #f0f0f0; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 159.6pt;" valign="top" width="213"><div class="LLBody" style="margin: 0in 0in 0pt;"><em></em> </div><div class="LLBody" style="margin: 0in 0in 0pt;"><em>Jason Mueller</em></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghldq8cOTn0WyLrBvVbJOg8EGaCdBaIAO0y8waKlv4nVD7XeePVFihVW3bxvr_cflCHsCY1r2sXoiAbFWiMsihciDVnC8MScxP9p9HIVEwi25ca1gmdZId2oo5DseRHnFqStyXLPJIC-mQ/s1600/Mueller_Jason_hi.jpg" imageanchor="1" style="clear: left; cssfloat: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" closure_uid_2d106e="6" oda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghldq8cOTn0WyLrBvVbJOg8EGaCdBaIAO0y8waKlv4nVD7XeePVFihVW3bxvr_cflCHsCY1r2sXoiAbFWiMsihciDVnC8MScxP9p9HIVEwi25ca1gmdZId2oo5DseRHnFqStyXLPJIC-mQ/s1600/Mueller_Jason_hi.jpg" /></a></div></td></tr>
</tbody></table>Jason Muellerhttp://www.blogger.com/profile/09266910595204135544noreply@blogger.comtag:blogger.com,1999:blog-227273970830005333.post-7507768170228093752012-01-12T09:14:00.002-06:002012-01-12T15:52:53.440-06:00Court holds that Website Operator Not Liable Without Specific Knowledge of Copyright Infringement<div class="precis" style="line-height: 115%; margin: 0in 0in 4.9pt;"><span style="color: #3e3d40; font-family: Arial, Helvetica, sans-serif;"><div class="MsoNormal" style="line-height: 115%; margin: 0in 0in 12pt; mso-margin-top-alt: auto; mso-outline-level: 1;"><b><span style="color: #3e3d40; font-family: "Arial", "sans-serif"; font-size: 11.5pt; line-height: 115%; mso-font-kerning: 18.0pt;">Court holds that Website Operator Not Liable Without Specific Knowledge of Copyright Infringement </span></b></div><div class="precis" style="line-height: 115%; margin: 0in 0in 4.9pt;"><span style="color: #3e3d40; font-family: "Arial", "sans-serif";">In a case of first impression, <b style="mso-bidi-font-weight: normal;">UMG Recordings v. Shelter Capital Partners</b>, et al., the Ninth Circuit </span><a href="http://www.scribd.com/doc/77273714/UMG-Recordings-v-Veoh-Networks-9th-Cir-Opinion"><span style="font-family: "Arial", "sans-serif";"><span style="color: blue;">refused</span></span></a><span style="color: #3e3d40; font-family: "Arial", "sans-serif";"> to hold a website operator liable for copyright infringement based solely on the operator’s general knowledge that some of the third party content on its site may be infringing copyright owners’ rights. While the case only involved video content submitted by users, its holding applies to text, audio, photos and all user generated content. The holding also applies to all industries and businesses that have websites, social media or blogs and that permit uploading of user-generated content.</span><span style="color: #666666; font-family: "Arial", "sans-serif";"></span></div><div class="MsoNormal" style="line-height: 115%; margin: 0in 0in 12pt; mso-margin-top-alt: auto;"><b style="mso-bidi-font-weight: normal;"><u><span style="color: #3e3d40; font-family: "Arial", "sans-serif";">Facts and Issues</span></u></b></div><div class="MsoNormal" style="line-height: 115%; margin: 0in 0in 12pt; mso-margin-top-alt: auto;"><span style="color: black;"><span style="font-family: "Arial", "sans-serif"; letter-spacing: -0.3pt; mso-font-width: 105%;">The Defendant Veoh operates a publicly accessible web</span><span style="font-family: "Arial", "sans-serif"; letter-spacing: -0.2pt; mso-font-width: 105%;">site that enables users to share videos with other users. The Plaintiff, Uni</span><span style="font-family: "Arial", "sans-serif"; letter-spacing: 0.05pt; mso-font-width: 105%;">versal Music Group, produces and distributes </span><span style="font-family: "Arial", "sans-serif"; letter-spacing: -0.3pt; mso-font-width: 105%;">recorded music and </span><span style="font-family: "Arial", "sans-serif"; letter-spacing: -0.35pt; mso-font-width: 105%;">music videos. Although Veoh has implemented various </span><span style="font-family: "Arial", "sans-serif"; letter-spacing: -0.25pt; mso-font-width: 105%;">procedures to prevent copyright infringement through its upload sys</span><span style="font-family: "Arial", "sans-serif"; letter-spacing: -0.15pt; mso-font-width: 105%;">tem and its website, users of Veoh’s service have in the past been able, with</span><span style="font-family: "Arial", "sans-serif"; mso-font-width: 105%;">out authorization from copyright owners, such as UMG, to upload music videos containing <span style="letter-spacing: -0.1pt;">songs in which UMG owns the copyright rights.<span style="mso-spacerun: yes;"> </span>This in turn allows other Veoh users to view and even download those music videos.</span></span><b style="mso-bidi-font-weight: normal;"><u><span style="color: #3e3d40; font-family: "Arial", "sans-serif";"></span></u></b></span></div><div class="MsoNormal" style="line-height: 115%; margin: 0in 0in 12pt; mso-margin-top-alt: auto;"><span style="color: #3e3d40; font-family: "Arial", "sans-serif";">The Digital Millennium Copyright Act (DMCA) provides so-called “safe harbor” for website operators so that even when a user of the website operator’s site shares a copyright protected video with other users, if the website operator meets the requirements set forth in the “safe harbor”, that operator is not liable for copyright infringement.</span></div><div class="MsoNormal" style="line-height: 115%; margin: 0in 0in 12pt; mso-margin-top-alt: auto;"><span style="color: #3e3d40; font-family: "Arial", "sans-serif";">In the <i style="mso-bidi-font-style: normal;"><u>UMG Recordings</u></i><b style="mso-bidi-font-weight: normal;"> </b>case, the particular “safe harbor” Veoh invoked protects website operators and other “service providers” from liability for the copyright infringement of others who provide content on their sites when the provider “expeditiously” takes down the allegedly infringing content residing on its servers in response to a notice from a copyright owner (commonly referred to as a DMCA notice) that the content is infringing the owner’s copyright.</span></div><div class="MsoNormal" style="line-height: 115%; margin: 0in 0in 12pt; mso-margin-top-alt: auto;"><b style="mso-bidi-font-weight: normal;"><u><span style="color: #3e3d40; font-family: "Arial", "sans-serif";">UMG’s Claims</span></u></b></div><div class="MsoNormal" style="line-height: 115%; margin: 0in 0in 12pt; mso-margin-top-alt: auto;"><span style="color: #3e3d40; font-family: "Arial", "sans-serif";">There was no question that Veoh acted expeditiously to remove allegedly infringing content from its servers upon receipt of DMCA notices alleging that specific content on its site was infringing.<span style="mso-spacerun: yes;"> </span>UMG claimed, however, that Veoh’s actions were insufficient<span style="mso-spacerun: yes;"> </span>due to Veoh’s late adoption of filtering technology to detect infringing material and that Veoh removed only the specific videos identified in DMCA takedown notices, but not other infringing material that the filter detected.<span style="mso-spacerun: yes;"> </span></span></div><div class="MsoNormal" style="line-height: 115%; margin: 0in 0in 12pt; mso-margin-top-alt: auto;"><span style="color: #3e3d40; font-family: "Arial", "sans-serif";">UMG argued that Veoh’s failure to remove other infringing material detected by its filters imputed Veoh with “actual knowledge” of the infringing activity, which, if true, would deprive Veoh of the DMCA safe harbor.<span style="mso-spacerun: yes;"> </span>UMG also raised numerous factors that could have tipped off Veoh to the presence of infringing content on its servers, such as the presence of music videos without any license from a rights holder.</span></div><div class="MsoNormal" style="line-height: 115%; margin: 0in 0in 12pt; mso-margin-top-alt: auto;"><b style="mso-bidi-font-weight: normal;"><u><span style="color: #3e3d40; font-family: "Arial", "sans-serif";">The Court’s Ruling</span></u></b></div><div class="MsoNormal" style="line-height: 115%; margin: 0in 0in 12pt; mso-margin-top-alt: auto;"><span style="color: #3e3d40; font-family: "Arial", "sans-serif";">The Court concluded that to be liable for infringement a service provider must be aware of specific infringing material to have the ability to control that infringing activity.</span></div><div class="MsoNormal" style="line-height: 115%; margin: 0in 0in 12pt; mso-margin-top-alt: auto;"><span style="color: #3e3d40; font-family: "Arial", "sans-serif"; mso-fareast-font-family: "Times New Roman";">In finding that Veoh was entitled to the DMCA safe harbor, the Court first found that Veoh’s functions in connection with video uploads by users fell within the safe harbor requirement that the uploaded content on Veoh’s website was “by reason of the storage at the direction of the user.”<span style="mso-spacerun: yes;"> </span></span><span style="color: #666666; font-family: "Arial", "sans-serif";">The court upheld summary judgment and a Rule 12(b)(6) dismissal in favor of defendants.</span><span style="color: #3e3d40; font-family: "Arial", "sans-serif"; mso-fareast-font-family: "Times New Roman";"></span></div><div class="MsoNormal" style="line-height: 115%; margin: 0in 0in 12pt; mso-margin-top-alt: auto;"><span style="color: #3e3d40; font-family: "Arial", "sans-serif";">The Court reached the same conclusion regarding the safe harbor condition that, “in the absence of [actual] knowledge, [the service provider] is not aware of facts or circumstances from which infringing activity is apparent.”</span></div><div class="MsoNormal" style="line-height: 115%; margin: 0in 0in 12pt; mso-margin-top-alt: auto;"><b style="mso-bidi-font-weight: normal;"><u><span style="color: #3e3d40; font-family: "Arial", "sans-serif";">Implications</span></u></b></div><span style="color: #3e3d40; font-family: "Arial", "sans-serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US;">When statutorily compliant and specific DMCA takedown notices are received, a website operator or service provider that acts expeditiously to remove the specifically identified infringing content will not likely lose the DMCA safe harbor insulating liability for user-generated content.<span style="mso-spacerun: yes;"> </span>At least that is the law in the Ninth Circuit and persuasive authority in other circuits until the Second Circuit issues its decision on the same issue in </span><span style="font-family: "Times New Roman", "serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US;"><a href="http://mbarclay.suekayton.com/IPDuckDocs/2010-12-07_Viacom%27s_Appeal_Brief2.pdf"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Arial", "sans-serif";"><span style="color: blue;">Viacom v. YouTube</span></span></b></a></span><b style="mso-bidi-font-weight: normal;"><span style="color: #3e3d40; font-family: "Arial", "sans-serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US;">.</span></b></span></div><br />
<b style="mso-bidi-font-weight: normal;"><span style="color: #3e3d40; font-family: "Arial", "sans-serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US;"></span></b><br />
<table border="0" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-bottom: medium none; border-collapse: collapse; border-left: medium none; border-right: medium none; border-top: medium none; mso-border-insidev: none; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0; mso-yfti-lastrow: yes;"><td style="background-color: transparent; border-bottom-color: #f0f0f0; border-left-color: #f0f0f0; border-right-color: #f0f0f0; border-top-color: #f0f0f0; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 159.6pt;" valign="top" width="213"><div class="MsoNormal" style="margin: 0in 0in 0pt;"><u>Authors</u>: <br />
</div><div class="MsoNormal" style="margin: 0in 0in 0pt;"><em> Paul Van Slyke </em></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGs-a4yAk26URGm2LX7Sfqdv-we9qmDVb9VNA0N-wwws45F-zkjdUexvvJ4-b4MtZiZ2A3Sfhyphenhyphen3TQuy2aav2DNwJNm56EIif2BfVMmpNtWx4kiPFAq9_eI3okqmM7P4zCSCaR-qXFKkvtW/s1600/vanSlyke_Paul__124.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" closure_uid_50gayz="3" closure_uid_k0ofkm="6" dda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGs-a4yAk26URGm2LX7Sfqdv-we9qmDVb9VNA0N-wwws45F-zkjdUexvvJ4-b4MtZiZ2A3Sfhyphenhyphen3TQuy2aav2DNwJNm56EIif2BfVMmpNtWx4kiPFAq9_eI3okqmM7P4zCSCaR-qXFKkvtW/s1600/vanSlyke_Paul__124.jpg" /></a> </div><div align="center" class="separator" style="margin: 0in 0in 0pt; text-align: center;"><span style="color: blue; mso-no-proof: yes; text-decoration: none; text-underline: none;"><shapetype coordsize="21600,21600" filled="f" id="_x0000_t75" o:preferrelative="t" o:spt="75" path="m@4@5l@4@11@9@11@9@5xe" stroked="f"><stroke joinstyle="miter"></stroke><formulas><f eqn="if lineDrawn pixelLineWidth 0"></f><f eqn="sum @0 1 0"></f><f eqn="sum 0 0 @1"></f><f eqn="prod @2 1 2"></f><f eqn="prod @3 21600 pixelWidth"></f><f eqn="prod @3 21600 pixelHeight"></f><f eqn="sum @0 0 1"></f><f eqn="prod @6 1 2"></f><f eqn="prod @7 21600 pixelWidth"></f><f eqn="sum @8 21600 0"></f><f eqn="prod @7 21600 pixelHeight"></f><f eqn="sum @10 21600 0"></f></formulas><path gradientshapeok="t" o:connecttype="rect" o:extrusionok="f"></path><lock aspectratio="t" v:ext="edit"></lock></shapetype><shape alt="Description: https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhCSXn3QEF2m8dI7NRtMzCcAJfDo5XNqLeVO9fNA48yTnZ-wdkA6nkTJwm416gAttlsH0hcFBSe5u6Pc80exmGOUr_2FJ9kCdjtee5w9_8Qo4uolSfGwCOK2RO_Gn1AxWo2qDls22g2iTUM/s1600/vanSlyke_Paul__124.jpg" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhCSXn3QEF2m8dI7NRtMzCcAJfDo5XNqLeVO9fNA48yTnZ-wdkA6nkTJwm416gAttlsH0hcFBSe5u6Pc80exmGOUr_2FJ9kCdjtee5w9_8Qo4uolSfGwCOK2RO_Gn1AxWo2qDls22g2iTUM/s1600/vanSlyke_Paul__124.jpg" id="Picture_x0020_2" o:button="t" o:spid="_x0000_i1027" style="height: 112.5pt; mso-wrap-style: square; visibility: visible; width: 97.5pt;" type="#_x0000_t75"><fill o:detectmouseclick="t"></fill><imagedata o:title="vanSlyke_Paul__124" src="file:///C:\Users\tcasagra\AppData\Local\Temp\msohtmlclip1\01\clip_image001.jpg"></imagedata></shape></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div></td><td style="background-color: transparent; border-bottom-color: #f0f0f0; border-left-color: #f0f0f0; border-right-color: #f0f0f0; border-top-color: #f0f0f0; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 159.6pt;" valign="top" width="213"><div class="LLBody" style="margin: 0in 0in 0pt;"></div><div class="LLBody" style="margin: 0in 0in 0pt;"><br />
<br />
<em>Gregory Casamento</em><img border="0" closure_uid_k0ofkm="7" dda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEggzn2i9q6Fo0_QZXfVvfF4eePxjNe83111KtytfsndmawsUppdbUHZrFRXjQY-StaloHCqiw4kRKfOztrvjxc-R15CjuoIB-lt6zs8MSjMLXaqI3uxDRAmfNjqgbt0bu1Pq4gIEzjbAybE/s1600/Casamento_Gregory_08.jpg" /></div></td><td style="background-color: transparent; border-bottom-color: #f0f0f0; border-left-color: #f0f0f0; border-right-color: #f0f0f0; border-top-color: #f0f0f0; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 159.6pt;" valign="top" width="213"><div class="LLBody" style="margin: 0in 0in 0pt;"></div><div class="LLBody" style="margin: 0in 0in 0pt;"><br />
<br />
<em>Mike Schulman</em><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghldq8cOTn0WyLrBvVbJOg8EGaCdBaIAO0y8waKlv4nVD7XeePVFihVW3bxvr_cflCHsCY1r2sXoiAbFWiMsihciDVnC8MScxP9p9HIVEwi25ca1gmdZId2oo5DseRHnFqStyXLPJIC-mQ/s1600/Mueller_Jason_hi.jpg" imageanchor="1" style="clear: left; cssfloat: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img src="http://www.lockelord.com/files/Professional/268ad88a-110a-4a72-bfab-65d8442e9952/Presentation/HighResPhoto/Schulman_Mike__621.jpg" style="display: block;" /></a></div></td></tr>
</tbody></table>Jason Muellerhttp://www.blogger.com/profile/09266910595204135544noreply@blogger.comtag:blogger.com,1999:blog-227273970830005333.post-79789649059514805602011-12-16T10:10:00.000-06:002011-12-16T10:10:03.249-06:00NAD Approves Using Promotion to Increase Facebook “Likes”<div class="LLBody" style="margin: 0in 0in 12pt;">The National Advertising Division of the Better Business Bureau (NAD) <a href="http://www.scribd.com/doc/75130041/NAD-Coastal-Contacts-Decision-PDF"><span style="color: blue;">recently approved</span></a> leveraging special deals or discounts to increase “likes” on Facebook, provided the promotion is not misleading.<span style="mso-spacerun: yes;"> </span></div><div class="LLBody" style="margin: 0in 0in 12pt;">In the Coastal Contacts case, the NAD reviewed a promotion of<span style="mso-spacerun: yes;"> </span>a “free” product offer to increase the number of fans who “like” Coastal. Offering coupons and discounts in exchange for a “like” on the Facebook platform is not uncommon.<span style="mso-spacerun: yes;"> </span>The NAD concluded such an exchange constitutes a general “social endorsement” and further found such a social endorsement is not misleading to others simply because the “like” was gained through use of a special offer or discount. </div><div class="LLBody" style="margin: 0in 0in 12pt;"><shapetype coordsize="21600,21600" filled="f" id="_x0000_t75" o:preferrelative="t" o:spt="75" path="m@4@5l@4@11@9@11@9@5xe" stroked="f"><stroke joinstyle="miter"></stroke><formulas><f eqn="if lineDrawn pixelLineWidth 0"></f><f eqn="sum @0 1 0"></f><f eqn="sum 0 0 @1"></f><f eqn="prod @2 1 2"></f><f eqn="prod @3 21600 pixelWidth"></f><f eqn="prod @3 21600 pixelHeight"></f><f eqn="sum @0 0 1"></f><f eqn="prod @6 1 2"></f><f eqn="prod @7 21600 pixelWidth"></f><f eqn="sum @8 21600 0"></f><f eqn="prod @7 21600 pixelHeight"></f><f eqn="sum @10 21600 0"></f></formulas><path gradientshapeok="t" o:connecttype="rect" o:extrusionok="f"></path><lock aspectratio="t" v:ext="edit"></lock></shapetype><shape alt="Description: C:\Users\vanslykp\AppData\Roaming\PixelMetrics\CaptureWiz\Temp\3.jpg" id="Picture_x0020_1" o:spid="_x0000_s1026" style="height: 142.3pt; margin-left: 275.85pt; margin-top: 31.75pt; mso-height-percent: 0; mso-height-relative: page; mso-position-horizontal-relative: text; mso-position-horizontal: absolute; mso-position-vertical-relative: text; mso-position-vertical: absolute; mso-width-percent: 0; mso-width-relative: page; mso-wrap-distance-bottom: 0; mso-wrap-distance-left: 9pt; mso-wrap-distance-right: 9pt; mso-wrap-distance-top: 0; mso-wrap-style: square; position: absolute; visibility: visible; width: 195.25pt; z-index: -251657216;" type="#_x0000_t75"><imagedata o:title="3" src="file:///C:\Users\tcasagra\AppData\Local\Temp\msohtmlclip1\01\clip_image001.jpg"></imagedata><wrap type="tight"></wrap></shape><b style="mso-bidi-font-weight: normal;">NAD Challenge Details</b></div><div class="LLBody" style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; margin: 0in 0in 12pt; text-align: justify;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhnL7-cESzBgZo0CDScdxwZBcA_cX4qzCxvBqXbe4_hKlw0uS3Og8OFyrwq_7NHqLEx_qroEovqvsyRBJ16vC8TJaBNOvp5_hvdxNNpes3eB9aJ8aCgJWc7olCVTtdrZlBLVsj627PLDzbG/s1600/Facebook+like+promo.jpg" imageanchor="1" style="clear: right; cssfloat: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="233" oda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhnL7-cESzBgZo0CDScdxwZBcA_cX4qzCxvBqXbe4_hKlw0uS3Og8OFyrwq_7NHqLEx_qroEovqvsyRBJ16vC8TJaBNOvp5_hvdxNNpes3eB9aJ8aCgJWc7olCVTtdrZlBLVsj627PLDzbG/s320/Facebook+like+promo.jpg" width="320" /></a>Coastal advertised to its Facebook page visitors that they could receive a “free” pair of glasses by clicking the “like” button.<span style="mso-spacerun: yes;"> </span>Once they clicked the like button, the offer details would be revealed. </div><div class="LLBody" style="margin: 0in 0in 12pt; text-align: justify;">A competitor alleged the promotion was deceptive for two reasons.<span style="mso-spacerun: yes;"> </span>First, the offer was fraudulent because the material terms of the “free” offer were not disclosed in proximity to the “free” offer.<span style="mso-spacerun: yes;"> </span>Second, it alleged the “likes” were fraudulent endorsements that “perpetuate the misleading suggestion that Coastal enjoys broader support than it would actually have in the absence of its misleading ‘free’ promotion.”<span style="mso-spacerun: yes;"> </span></div><div class="LLBody" style="margin: 0in 0in 12pt;"><b style="mso-bidi-font-weight: normal;">NAD Ruling</b></div><div class="LLBody" style="margin: 0in 0in 12pt;">The NAD found that because a Facebook “like” could mean many things to consumers—such as liking the promotion, liking the company, or simply wanting to “share” with their friends—it was not misleading or deceptive to employ a “like-gated” promotion on a Facebook fan page.<span style="mso-spacerun: yes;"> </span>Such promotions can deliver giveaways, coupons or discounts in exchange for “liking” the advertiser.<span style="mso-spacerun: yes;"> </span></div><div class="LLBody" style="margin: 0in 0in 12pt;">However, the NAD did find Coastal’s free offer needed to be modified to include additional information in close proximity to the word “free.”<span style="mso-spacerun: yes;"> </span>Despite this flaw, the NAD found that the offer was not deceptive since consumers were actually able to obtain a “free” pair of glasses.<span style="mso-spacerun: yes;"> </span></div><div class="LLBody" style="margin: 0in 0in 12pt;">The NAD further found that, because the benefits of the promotion through “liking” the page were valid, any increased visibility was not fraudulently obtained.<span style="mso-spacerun: yes;"> </span>The NAD cautioned its conclusion would be different if consumers who participated in the “like-gated” promotion were denied the promised benefit or offer.<span style="mso-spacerun: yes;"> </span>The NAD compared deceptive promotions to other misleading activities such as paying a service to artificially inflate the number of “likes” and requiring employees to “like” their employer’s page without disclosing the employment connection.</div><div class="LLBody" style="margin: 0in 0in 12pt;"><b style="mso-bidi-font-weight: normal;">Take-Away</b></div><div class="LLBody" style="margin: 0in 0in 12pt;">If you condition participation in a promotion such as a contest, sweepstakes, or discount offer on a customer’s “liking” you on Facebook, be sure your promotion is not deceptive or misleading.<span style="mso-spacerun: yes;"> </span></div><div align="right"><em></em></div><table border="0" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-bottom: medium none; border-collapse: collapse; border-left: medium none; border-right: medium none; border-top: medium none; mso-border-insidev: none; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0; mso-yfti-lastrow: yes;"><td style="background-color: transparent; border-bottom-color: #f0f0f0; border-left-color: #f0f0f0; border-right-color: #f0f0f0; border-top-color: #f0f0f0; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 159.6pt;" valign="top" width="213"><div class="MsoNormal" style="margin: 0in 0in 0pt;"><u>Authors</u>: <em>Paul Van Slyke </em></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGs-a4yAk26URGm2LX7Sfqdv-we9qmDVb9VNA0N-wwws45F-zkjdUexvvJ4-b4MtZiZ2A3Sfhyphenhyphen3TQuy2aav2DNwJNm56EIif2BfVMmpNtWx4kiPFAq9_eI3okqmM7P4zCSCaR-qXFKkvtW/s1600/vanSlyke_Paul__124.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" closure_uid_k0ofkm="6" dda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGs-a4yAk26URGm2LX7Sfqdv-we9qmDVb9VNA0N-wwws45F-zkjdUexvvJ4-b4MtZiZ2A3Sfhyphenhyphen3TQuy2aav2DNwJNm56EIif2BfVMmpNtWx4kiPFAq9_eI3okqmM7P4zCSCaR-qXFKkvtW/s1600/vanSlyke_Paul__124.jpg" /></a> </div><div align="center" class="separator" style="margin: 0in 0in 0pt; text-align: center;"><span style="color: blue; mso-no-proof: yes; text-decoration: none; text-underline: none;"><shapetype coordsize="21600,21600" filled="f" id="_x0000_t75" o:preferrelative="t" o:spt="75" path="m@4@5l@4@11@9@11@9@5xe" stroked="f"><stroke joinstyle="miter"></stroke><formulas><f eqn="if lineDrawn pixelLineWidth 0"></f><f eqn="sum @0 1 0"></f><f eqn="sum 0 0 @1"></f><f eqn="prod @2 1 2"></f><f eqn="prod @3 21600 pixelWidth"></f><f eqn="prod @3 21600 pixelHeight"></f><f eqn="sum @0 0 1"></f><f eqn="prod @6 1 2"></f><f eqn="prod @7 21600 pixelWidth"></f><f eqn="sum @8 21600 0"></f><f eqn="prod @7 21600 pixelHeight"></f><f eqn="sum @10 21600 0"></f></formulas><path gradientshapeok="t" o:connecttype="rect" o:extrusionok="f"></path><lock aspectratio="t" v:ext="edit"></lock></shapetype><shape alt="Description: https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhCSXn3QEF2m8dI7NRtMzCcAJfDo5XNqLeVO9fNA48yTnZ-wdkA6nkTJwm416gAttlsH0hcFBSe5u6Pc80exmGOUr_2FJ9kCdjtee5w9_8Qo4uolSfGwCOK2RO_Gn1AxWo2qDls22g2iTUM/s1600/vanSlyke_Paul__124.jpg" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhCSXn3QEF2m8dI7NRtMzCcAJfDo5XNqLeVO9fNA48yTnZ-wdkA6nkTJwm416gAttlsH0hcFBSe5u6Pc80exmGOUr_2FJ9kCdjtee5w9_8Qo4uolSfGwCOK2RO_Gn1AxWo2qDls22g2iTUM/s1600/vanSlyke_Paul__124.jpg" id="Picture_x0020_2" o:button="t" o:spid="_x0000_i1027" style="height: 112.5pt; mso-wrap-style: square; visibility: visible; width: 97.5pt;" type="#_x0000_t75"><fill o:detectmouseclick="t"></fill><imagedata o:title="vanSlyke_Paul__124" src="file:///C:\Users\tcasagra\AppData\Local\Temp\msohtmlclip1\01\clip_image001.jpg"></imagedata></shape></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div></td><td style="background-color: transparent; border-bottom-color: #f0f0f0; border-left-color: #f0f0f0; border-right-color: #f0f0f0; border-top-color: #f0f0f0; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 159.6pt;" valign="top" width="213"><div class="LLBody" style="margin: 0in 0in 0pt;"><em>Gregory Casamento</em><img border="0" closure_uid_k0ofkm="7" dda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEggzn2i9q6Fo0_QZXfVvfF4eePxjNe83111KtytfsndmawsUppdbUHZrFRXjQY-StaloHCqiw4kRKfOztrvjxc-R15CjuoIB-lt6zs8MSjMLXaqI3uxDRAmfNjqgbt0bu1Pq4gIEzjbAybE/s1600/Casamento_Gregory_08.jpg" /></div></td><td style="background-color: transparent; border-bottom-color: #f0f0f0; border-left-color: #f0f0f0; border-right-color: #f0f0f0; border-top-color: #f0f0f0; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 159.6pt;" valign="top" width="213"><div class="LLBody" style="margin: 0in 0in 0pt;"><em>Jason Mueller</em></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghldq8cOTn0WyLrBvVbJOg8EGaCdBaIAO0y8waKlv4nVD7XeePVFihVW3bxvr_cflCHsCY1r2sXoiAbFWiMsihciDVnC8MScxP9p9HIVEwi25ca1gmdZId2oo5DseRHnFqStyXLPJIC-mQ/s1600/Mueller_Jason_hi.jpg" imageanchor="1" style="clear: left; cssfloat: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" oda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghldq8cOTn0WyLrBvVbJOg8EGaCdBaIAO0y8waKlv4nVD7XeePVFihVW3bxvr_cflCHsCY1r2sXoiAbFWiMsihciDVnC8MScxP9p9HIVEwi25ca1gmdZId2oo5DseRHnFqStyXLPJIC-mQ/s1600/Mueller_Jason_hi.jpg" /></a></div><div class="separator" style="clear: both; text-align: left;"> </div></td></tr>
</tbody></table>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-227273970830005333.post-57329525917286482842011-12-13T15:29:00.001-06:002011-12-14T15:31:12.372-06:00New California Law More Restrictive Than FTC Guides on Environmental Claims for Food, Beverages and Plastic Bags<div class="LLBody" style="line-height: 115%; margin: 0in 0in 12pt;"><shapetype coordsize="21600,21600" filled="f" id="_x0000_t75" o:preferrelative="t" o:spt="75" path="m@4@5l@4@11@9@11@9@5xe" stroked="f"><stroke joinstyle="miter"></stroke><formulas><f eqn="if lineDrawn pixelLineWidth 0"></f><f eqn="sum @0 1 0"></f><f eqn="sum 0 0 @1"></f><f eqn="prod @2 1 2"></f><f eqn="prod @3 21600 pixelWidth"></f><f eqn="prod @3 21600 pixelHeight"></f><f eqn="sum @0 0 1"></f><f eqn="prod @6 1 2"></f><f eqn="prod @7 21600 pixelWidth"></f><f eqn="sum @8 21600 0"></f><f eqn="prod @7 21600 pixelHeight"></f><f eqn="sum @10 21600 0"></f></formulas><path gradientshapeok="t" o:connecttype="rect" o:extrusionok="f"></path><lock aspectratio="t" v:ext="edit"></lock></shapetype><shape alt="Description: C:\Users\vanslykp\AppData\Roaming\PixelMetrics\CaptureWiz\Temp\1.jpg" id="Picture_x0020_1" o:spid="_x0000_s1026" style="height: 279.35pt; margin-left: 364.15pt; margin-top: 67.3pt; mso-height-percent: 0; mso-height-relative: page; mso-position-horizontal-relative: text; mso-position-horizontal: absolute; mso-position-vertical-relative: text; mso-position-vertical: absolute; mso-width-percent: 0; mso-width-relative: page; mso-wrap-distance-bottom: 0; mso-wrap-distance-left: 9pt; mso-wrap-distance-right: 9pt; mso-wrap-distance-top: 0; mso-wrap-style: square; position: absolute; visibility: visible; width: 96.5pt; z-index: -251658240;" type="#_x0000_t75"><imagedata o:title="1" src="file:///C:\Users\tcasagra\AppData\Local\Temp\msohtmlclip1\01\clip_image001.jpg"></imagedata><wrap type="tight"></wrap></shape><span style="font-family: "Arial", "sans-serif";">Environmental packaging claims that pass muster under Federal Trade Commission (FTC) law and guides <i style="mso-bidi-font-style: normal;">may now be unlawful under a new, more restrictive California law</i>.</span></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhR2_CWD2xBD5AgUFSAeBbl19beBEndaox52pAUKAzI5R-uhIppx-UeSRHch9zzRL8jQniQMvHKOwzgO7sxc8s_wt-JX4UD11Jv-BlimtL0Q9AieMLPnvBBfZbMECe4BDvpiEdIBLDSZOr3/s1600/Biodegradable+package.jpg" imageanchor="1" style="clear: right; cssfloat: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" oda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhR2_CWD2xBD5AgUFSAeBbl19beBEndaox52pAUKAzI5R-uhIppx-UeSRHch9zzRL8jQniQMvHKOwzgO7sxc8s_wt-JX4UD11Jv-BlimtL0Q9AieMLPnvBBfZbMECe4BDvpiEdIBLDSZOr3/s1600/Biodegradable+package.jpg" /></a></div><div class="LLBody" style="line-height: 115%; margin: 0in 0in 12pt;"><b style="mso-bidi-font-weight: normal;"><u><span style="font-family: "Arial", "sans-serif";">California Environmental Package Claims Unlawful </span></u></b></div><div class="LLBody" style="line-height: 115%; margin: 0in 0in 12pt;"><span style="font-family: "Arial", "sans-serif";">Recently, the California Attorney General </span><a href="http://ag.ca.gov/cms_attachments/press/pdfs/n2577_complaint.pdf"><span style="font-family: "Arial", "sans-serif";"><span style="color: blue;">sued</span></span></a><span style="font-family: "Arial", "sans-serif";"> two makers of bottled water and their plastic bottle supplier for marketing and labeling the bottles as “100 percent biodegradable and recyclable” in violation of </span><a href="http://www.lawserver.com/law/state/california/codes/california_public_resources_code_42359-6"><span style="font-family: "Arial", "sans-serif";"><span style="color: blue;">California law</span></span></a><span style="font-family: "Arial", "sans-serif";">. The Complaint alleges that such claims are inherently misleading to consumers. </span></div><div class="LLBody" style="line-height: 115%; margin: 0in 0in 12pt;"><span style="font-family: "Arial", "sans-serif";">In 2008, California banned the use of words like “biodegradable” “degradable,” or “decomposable” in the labeling of plastic food or beverage containers. It also prohibited calling containers “compostable” or “marine degradable” unless specific American Society for Testing and Materials (ASTM) standards were met.</span></div><div class="LLBody" style="line-height: 115%; margin: 0in 0in 12pt;"><span style="font-family: "Arial", "sans-serif";">A few months ago, California began requiring “compostable plastic bags” to contain visual cues for consumers, like dying the bag green, or labeling both sides as “COMPOSTABLE” in big letters next to a big green stripe—in compliance with the FTC Guides for Use of Environmental Marketing Claims (a/k/a the </span><a href="http://ftc.gov/bcp/grnrule/guides980427.htm"><span style="font-family: "Arial", "sans-serif";"><span style="color: blue;">“Green Guides”</span></span></a><span style="font-family: "Arial", "sans-serif";">). These bags also can’t be labeled “recyclable” for fear that added microbes they will “contaminate” the recycling stream.</span></div><div class="LLBody" style="line-height: 115%; margin: 0in 0in 12pt;"><span style="font-family: "Arial", "sans-serif";"><span style="mso-spacerun: yes;"> </span>The California law provides for civil fines up to $2,000 per violation for repeat offenders, plus court costs if the state sues and wins. Class action lawsuits under </span><a href="http://leginfo.ca.gov/cgi-bin/displaycode?section=bpc&group=17001-18000&file=17200-17210"><span style="font-family: "Arial", "sans-serif";"><span style="color: blue;">California’s Unfair Competition Law</span></span></a><span style="font-family: "Arial", "sans-serif";"> or </span><a href="http://leginfo.ca.gov/cgi-bin/displaycode?section=bpc&group=17001-18000&file=17500-17509"><span style="font-family: "Arial", "sans-serif";"><span style="color: blue;">False Advertising Law</span></span></a><span style="font-family: "Arial", "sans-serif";"> are also possible.<span style="mso-spacerun: yes;"> </span>In 2013, the California law will expand to<span style="mso-spacerun: yes;"> </span>all plastic products beginning in 2013. </span></div><div class="LLBody" style="line-height: 115%; margin: 0in 0in 12pt;"><b style="mso-bidi-font-weight: normal;"><u><span style="font-family: "Arial", "sans-serif";">Companies Claim Plastic Bottles Decompose in 5 Years</span></u></b></div><div class="LLBody" style="line-height: 115%; margin: 0in 0in 12pt;"><span style="font-family: "Arial", "sans-serif";">The two companies, Balance and Aquamantra, claim that their bottles will decompose in less than five years in a landfill or compost area because of a microbial additive. The California Attorney General disagrees, contending that decomposition frequently does not take place for several reasons, such as improperly recycled bottles that sit in a landfill, which is not conducive to decomposition, as well as that the added microbes are ineffective. </span></div><div class="LLBody" style="line-height: 115%; margin: 0in 0in 12pt;"><b style="mso-bidi-font-weight: normal;"><u><span style="font-family: "Arial", "sans-serif";">FTC Green Guides Have Different Standard</span></u></b></div><div class="LLBody" style="line-height: 115%; margin: 0in 0in 12pt;"><span style="font-family: "Arial", "sans-serif";">Proposed changes to the FTC </span><a href="http://ftc.gov/bcp/grnrule/guides980427.htm"><span style="font-family: "Arial", "sans-serif";"><span style="color: blue;">Green Guides</span></span></a><span style="font-family: "Arial", "sans-serif";"> would require only that biodegradability claims be substantiated by competent and reliable scientific evidence that the entire product or package will completely break down and return to nature( i.e., it decomposes into elements found in nature within a reasonably short period of time after customary disposal).</span></div><div class="LLBody" style="line-height: 115%; margin: 0in 0in 12pt;"><span style="font-family: "Arial", "sans-serif";">Thus, while the FTC permits<span style="mso-spacerun: yes;"> </span>biodegradable claims if it occurs “within a reasonably short period after customary disposal,”<span style="mso-spacerun: yes;"> </span>California law appears to create an irrefutable presumption that a biodegradable claim is inherently deceptive to consumers, regardless of substantiation proof. </span></div><div class="LLBody" style="line-height: 115%; margin: 0in 0in 12pt;"><b style="mso-bidi-font-weight: normal;"><u><span style="font-family: "Arial", "sans-serif";">Implications </span></u></b></div><div class="LLBody" style="line-height: 115%; margin: 0in 0in 12pt;"><span style="font-family: "Arial", "sans-serif";">Compliance with the FTC Green Guides will not be a safe harbor against violation of the California law. National marketing of plastic bottles and plastic bags (and as soon as 2013 all forms of plastic) making<span style="mso-spacerun: yes;"> </span>claims such as biodegradable and compostable may therefore be practically impossible given California’s position. Alternatively, national marketers can try to craft a cost-effective way to market different bottle labels in California. </span></div><div align="right" style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none;"><span style="font-family: Arial, Helvetica, sans-serif;"><em></em></span><br />
<div class="separator" style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; clear: both; text-align: center;"></div></div><table border="0" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-bottom: medium none; border-collapse: collapse; border-left: medium none; border-right: medium none; border-top: medium none; mso-border-insidev: none; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0; mso-yfti-lastrow: yes;"><td style="background-color: transparent; border-bottom-color: #f0f0f0; border-left-color: #f0f0f0; border-right-color: #f0f0f0; border-top-color: #f0f0f0; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 159.6pt;" valign="top" width="213"><div class="MsoNormal" style="margin: 0in 0in 0pt;"><u>Authors</u>: <em>Paul Van Slyke </em></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGs-a4yAk26URGm2LX7Sfqdv-we9qmDVb9VNA0N-wwws45F-zkjdUexvvJ4-b4MtZiZ2A3Sfhyphenhyphen3TQuy2aav2DNwJNm56EIif2BfVMmpNtWx4kiPFAq9_eI3okqmM7P4zCSCaR-qXFKkvtW/s1600/vanSlyke_Paul__124.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" closure_uid_48nw7t="3" dda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGs-a4yAk26URGm2LX7Sfqdv-we9qmDVb9VNA0N-wwws45F-zkjdUexvvJ4-b4MtZiZ2A3Sfhyphenhyphen3TQuy2aav2DNwJNm56EIif2BfVMmpNtWx4kiPFAq9_eI3okqmM7P4zCSCaR-qXFKkvtW/s1600/vanSlyke_Paul__124.jpg" /></a></div><div align="center" class="separator" style="margin: 0in 0in 0pt; text-align: center;"><span style="color: blue; mso-no-proof: yes; text-decoration: none; text-underline: none;"><shapetype coordsize="21600,21600" filled="f" id="_x0000_t75" o:preferrelative="t" o:spt="75" path="m@4@5l@4@11@9@11@9@5xe" stroked="f"><stroke joinstyle="miter"></stroke><formulas><f eqn="if lineDrawn pixelLineWidth 0"></f><f eqn="sum @0 1 0"></f><f eqn="sum 0 0 @1"></f><f eqn="prod @2 1 2"></f><f eqn="prod @3 21600 pixelWidth"></f><f eqn="prod @3 21600 pixelHeight"></f><f eqn="sum @0 0 1"></f><f eqn="prod @6 1 2"></f><f eqn="prod @7 21600 pixelWidth"></f><f eqn="sum @8 21600 0"></f><f eqn="prod @7 21600 pixelHeight"></f><f eqn="sum @10 21600 0"></f></formulas><path gradientshapeok="t" o:connecttype="rect" o:extrusionok="f"></path><lock aspectratio="t" v:ext="edit"></lock></shapetype><shape alt="Description: https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhCSXn3QEF2m8dI7NRtMzCcAJfDo5XNqLeVO9fNA48yTnZ-wdkA6nkTJwm416gAttlsH0hcFBSe5u6Pc80exmGOUr_2FJ9kCdjtee5w9_8Qo4uolSfGwCOK2RO_Gn1AxWo2qDls22g2iTUM/s1600/vanSlyke_Paul__124.jpg" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhCSXn3QEF2m8dI7NRtMzCcAJfDo5XNqLeVO9fNA48yTnZ-wdkA6nkTJwm416gAttlsH0hcFBSe5u6Pc80exmGOUr_2FJ9kCdjtee5w9_8Qo4uolSfGwCOK2RO_Gn1AxWo2qDls22g2iTUM/s1600/vanSlyke_Paul__124.jpg" id="Picture_x0020_2" o:button="t" o:spid="_x0000_i1027" style="height: 112.5pt; mso-wrap-style: square; visibility: visible; width: 97.5pt;" type="#_x0000_t75"><fill o:detectmouseclick="t"></fill><imagedata o:title="vanSlyke_Paul__124" src="file:///C:\Users\tcasagra\AppData\Local\Temp\msohtmlclip1\01\clip_image001.jpg"></imagedata></shape></span></div><div class="MsoNormal" style="margin: 0in 0in 0pt;"></div></td><td style="background-color: transparent; border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 159.6pt;" valign="top" width="213"><div class="LLBody" style="margin: 0in 0in 0pt;"><em> Brandon Witkow</em></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjR6nTtJ8HAMDprevwHmgNz8yq-VWkiPyrTsiKgcacxsZNdOpD2i8NI6pMxHOElkUGxV8joXGL5z-WnwLaznzfRc-UuFrTauyCrBSKPVXyPSu5cVcnR8A5XrmIpQsUFRtCdozgtwCsTPCM9/s1600/WitkowBrandonJ_hi.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" oda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjR6nTtJ8HAMDprevwHmgNz8yq-VWkiPyrTsiKgcacxsZNdOpD2i8NI6pMxHOElkUGxV8joXGL5z-WnwLaznzfRc-UuFrTauyCrBSKPVXyPSu5cVcnR8A5XrmIpQsUFRtCdozgtwCsTPCM9/s1600/WitkowBrandonJ_hi.jpg" /></a></div><div class="separator" style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; clear: both; text-align: left;"></div><div class="LLBody" style="margin: 0in 0in 0pt;"><span style="color: blue; mso-no-proof: yes; text-decoration: none; text-underline: none;"><shape alt="Description: https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2gGY7hRGRTVHVIaNOTBdVPdVUR0PpcySsArg4klA5Nxb5PItSldI_KKjHDdditDEPYc6TOe185PcaXwaElecPK_yXcCg7fhRtaRkGpeIykVLct6tqTZUwT-48HjwMqXcvwcBCBRXCX4dX/s1600/Casamento_Gregory_08.jpg" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2gGY7hRGRTVHVIaNOTBdVPdVUR0PpcySsArg4klA5Nxb5PItSldI_KKjHDdditDEPYc6TOe185PcaXwaElecPK_yXcCg7fhRtaRkGpeIykVLct6tqTZUwT-48HjwMqXcvwcBCBRXCX4dX/s1600/Casamento_Gregory_08.jpg" id="Picture_x0020_3" o:button="t" o:spid="_x0000_i1026" style="height: 112.5pt; mso-wrap-style: square; visibility: visible; width: 97.5pt;" type="#_x0000_t75"><fill o:detectmouseclick="t"></fill><imagedata o:title="Casamento_Gregory_08" src="file:///C:\Users\tcasagra\AppData\Local\Temp\msohtmlclip1\01\clip_image002.jpg"></imagedata></shape></span></div></td><td style="background-color: transparent; border-bottom-color: #f0f0f0; border-left-color: #f0f0f0; border-right-color: #f0f0f0; border-top-color: #f0f0f0; padding-bottom: 0in; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; width: 159.6pt;" valign="top" width="213"><div class="LLBody" style="margin: 0in 0in 0pt;"><em> Gaston Kroub</em></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjr5tK-j3YeAk-iVyz9ApffX_MFud1ADNTBgRogz03qx5mXNbumUkpn2j7c3ixnigE9eESg4bJDVOsyVcfXwSTsq5zFcNkGcMcmhVsCGUte1mNNqSIf_UjtL-4Api0tMurB0CWRSqruqgvV/s1600/Kroub_Gaston_hi.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" oda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjr5tK-j3YeAk-iVyz9ApffX_MFud1ADNTBgRogz03qx5mXNbumUkpn2j7c3ixnigE9eESg4bJDVOsyVcfXwSTsq5zFcNkGcMcmhVsCGUte1mNNqSIf_UjtL-4Api0tMurB0CWRSqruqgvV/s1600/Kroub_Gaston_hi.jpg" /></a></div><div class="separator" style="clear: both; text-align: left;"></div><div align="center" class="separator" style="margin: 0in 0in 0pt -26.7pt; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhv4gF17b79IDg3FNZLALxnFEKEgL8vIrqucjY4ebxWxIttilpwbBlwH19qa-JIoLRmT_b7vyf1lTP84LcmaS8mH0xOKhi8Od_ibJ5pL6tAlbTXrTn5B_40tpnH6sMmw_YBWXyZAX8RIxaP/s1600/Hatfield_Pat_08.jpg"><span style="color: blue; mso-no-proof: yes; text-decoration: none; text-underline: none;"><shape alt="Description: https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhv4gF17b79IDg3FNZLALxnFEKEgL8vIrqucjY4ebxWxIttilpwbBlwH19qa-JIoLRmT_b7vyf1lTP84LcmaS8mH0xOKhi8Od_ibJ5pL6tAlbTXrTn5B_40tpnH6sMmw_YBWXyZAX8RIxaP/s1600/Hatfield_Pat_08.jpg" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhv4gF17b79IDg3FNZLALxnFEKEgL8vIrqucjY4ebxWxIttilpwbBlwH19qa-JIoLRmT_b7vyf1lTP84LcmaS8mH0xOKhi8Od_ibJ5pL6tAlbTXrTn5B_40tpnH6sMmw_YBWXyZAX8RIxaP/s1600/Hatfield_Pat_08.jpg" id="Picture_x0020_5" o:button="t" o:spid="_x0000_i1025" style="height: 112.5pt; 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</tbody></table>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-227273970830005333.post-76543159299797550502011-12-13T13:35:00.003-06:002011-12-21T14:47:33.673-06:00Recording Industry vs. ReDigi -- Is Site Facilitating Re-Selling of "Pre-Owned" MP3s a Contributory Copyright Infringer or Protected under “First Sale Doctrine”?<div style="MARGIN: 0in 0in 12pt" class="LLBody">Want to re-sell all those old MP3 files of songs you downloaded back in the day but no longer want?<span style="mso-spacerun: yes"> </span>The <a href="http://www.nytimes.com/2011/11/15/business/media/reselling-of-music-files-is-contested.html"><span style="color:blue;">New York Times recently reported</span></a> about a controversial new business that wants to help.<span style="mso-spacerun: yes"> </span>Why is this business—called ReDigi—controversial?<span style="mso-spacerun: yes"> </span>Because it presents old copyright issues in a new technological guise—and rests on a creative attempt to avoid being snared in the contributory copyright infringement trap that killed the Napster and Grokster file-sharing services several years ago.</div><br /><div style="MARGIN: 0in 0in 12pt" class="LLBody"><b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style: normal">The Copyright Issues</i></b></div><br /><div style="MARGIN: 0in 0in 12pt" class="LLBody">Copyright law’s “first sale doctrine” permits a <u>legitimate</u> purchaser of a music CD, film DVD, book, painting, or other copyrighted works to re-sell the item freely.<span style="mso-spacerun: yes"> </span>The copyright holder can control the “first sale,” but that’s it.<span style="mso-spacerun: yes"> </span>When such tangible items are sold, the first owner <u>no longer has the item</u>.<span style="mso-spacerun: yes"> </span>But if the first owner made and kept a copy of the item before re-selling it, then he’s probably infringed the copyright.<span style="mso-spacerun: yes"> </span>And the law is the same with copyrighted works in digital format: first sale doctrine will likely protect the sale if the item is a lawful copy and the seller doesn’t retain a copy.<span style="mso-spacerun: yes"> </span></div><br /><div style="MARGIN: 0in 0in 12pt" class="LLBody">So if a resale facilitator (like ReDigi) simply provided an unrestricted forum to resell digital works—and it knew or expected that many users would be either trading infringing copies or unlawfully making additional copies to sell—it would probably be snared under the law as a contributory infringer.<span style="mso-spacerun: yes"> </span>In a nutshell, this was the legal downfall of the well-known Napster and Grokster music and video “file-sharing” services.<span style="mso-spacerun: yes"> </span>And a business can’t hide its head in the sand about such shenanigans: “willful blindness” is the legal equivalent of actually knowing that illegal copies are being made.</div><br /><div style="TEXT-ALIGN: center; CLEAR: both" class="separator"><a style="MARGIN-BOTTOM: 1em; FLOAT: right; MARGIN-LEFT: 1em; CLEAR: right; cssfloat: right" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh3hvaY2NBxPxHlZZfZLfW4WVWmQSpG0RvimAeXRpR0oQexWZ3iWVi0oYEAq1ScB-42YNHSBS5XAWG4SBFbzWvXOiXbA1KQEJ0aDrmZrQPggR7tgmZZ8hRZonYPkhY7uQ5AeQr7l3dlBqV6/s1600/Picture-1-300x115.png" imageanchor="1"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh3hvaY2NBxPxHlZZfZLfW4WVWmQSpG0RvimAeXRpR0oQexWZ3iWVi0oYEAq1ScB-42YNHSBS5XAWG4SBFbzWvXOiXbA1KQEJ0aDrmZrQPggR7tgmZZ8hRZonYPkhY7uQ5AeQr7l3dlBqV6/s200/Picture-1-300x115.png" width="200" height="76" oda="true" /></a></div><br /><div style="MARGIN: 0in 0in 12pt" class="LLBody"><b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style: normal">ReDigi’s Workaround</i></b></div><br /><div style="MARGIN: 0in 0in 12pt" class="LLBody">Here’s how ReDigi claims to work: It purchases your old MP3s sitting on sellers' hard drives. To ensure that sellers aren’t copyright infringers, ReDigi claims its technology: (1) verifies that your copy is legal; and then (2) deletes all copies of the audio file on your computer. </div><br /><div style="MARGIN: 0in 0in 12pt" class="LLBody">ReDigi says its business model has done just the opposite of willful blindness:<span style="mso-spacerun: yes"> </span>it employs comprehensive preventative measures to ensure that its re-sellers are legitimate owners and don’t retain files and so avoid copyright infringement. </div><br /><div style="MARGIN: 0in 0in 12pt" class="LLBody"><b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style: normal">Will ReDigi Measure Up? -- The <u>Tiffany v eBay</u> Analogy</i></b></div><br /><div style="MARGIN: 0in 0in 12pt" class="LLBody">Are these steps enough to make ReDigi’s service legal?<span style="mso-spacerun: yes"> </span>What if the re-seller burned a CD-ROM with the file?<span style="mso-spacerun: yes"> </span>Or made and kept a copy of the hard drive itself?<span style="mso-spacerun: yes"> </span>Or saved the file to a thumb drive?</div><br /><div style="MARGIN: 0in 0in 12pt" class="LLBody">These questions of what degree of diligence is needed to avoid contributory infringement liability bear some similarity to the Second Circuit’s recent <a href="http://scholar.google.com/scholar_case?case=7620716488025661377&q=tiffany+eBay+F.3d&hl=en&as_sdt=2,44"><span style="color:blue;"><i style="mso-bidi-font-style: normal">Tiffany v. eBay</i> decision</span></a> (which we previously discussed <a href="http://www.lockelord.com/files/Publication/11c399b6-2610-4b9e-af0d-4384ad865927/Presentation/PublicationAttachment/cbdccff9-acbc-49d4-bb2e-4740b619bc29/2010-04_08th_SecondCircuit_VanSlyke.pdf">here</a>).<span style="mso-spacerun: yes"> </span>In that case, eBay convinced the court that the steps it took to minimize the potential for trademark counterfeiting and address known instances of counterfeiting that slipped through were enough to insulate it from Tiffany’s claims that eBay was contributorily liable. Though the decision in <i style="mso-bidi-font-style: normal">Tiffany</i> dealt with contributory liability under trademark law, the legal principles are very similar in the copyright context.</div><br /><div style="MARGIN: 0in 0in 12pt" class="LLBody"><strong><em>The First Attack is Launched</em></strong></div><br /><div style="MARGIN: 0in 0in 12pt" class="LLBody"><span style="color:blue;">T</span><a href="http://news.cnet.com/8301-31001_3-57324477-261/riaa-demands-redigi-stop-selling-used-downloads/"><span style="color:blue;">he Recording Industry Association of America (RIAA) has already sent ReDigi a "cease-and-desist" letter</span></a>, accusing ReDigi of contributory infringement. Such demands to shut down are usually a prelude to a full-blown lawsuit, so it appears that we may not have to wait long for the first court decision to weigh in with answers to these important issues.</div><br /><div align="right"><em>Authors: Tom Casagrande Jason Nardiello</em></div><br /><div style="BORDER-BOTTOM: medium none; TEXT-ALIGN: right; BORDER-LEFT: medium none; CLEAR: both; BORDER-TOP: medium none; BORDER-RIGHT: medium none" class="separator"><a style="MARGIN-BOTTOM: 1em; FLOAT: right; MARGIN-LEFT: 1em; CLEAR: right; cssfloat: right" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghf_tGNybeY7DQ3t1-Q2vTAyW30FS9fmOParg6Z95Bd_AUySgVUY1mp9DpzyMxr2JDDMGqGgb6HkBov7SfUiJ2YaIbeT02VxHEu9gW1-uL72UpJWsdxspLxrNpHjvp0HwJHFEhL2QvWotH/s1600/NardielloJason_hi.jpg" imageanchor="1"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghf_tGNybeY7DQ3t1-Q2vTAyW30FS9fmOParg6Z95Bd_AUySgVUY1mp9DpzyMxr2JDDMGqGgb6HkBov7SfUiJ2YaIbeT02VxHEu9gW1-uL72UpJWsdxspLxrNpHjvp0HwJHFEhL2QvWotH/s1600/NardielloJason_hi.jpg" oda="true" /></a><a style="MARGIN-LEFT: 1em; MARGIN-RIGHT: 1em" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiQOuatZowr4gQTu4Eq9c_NyYowNxKn9Xo3O3lMieN6WlEjdymXtYolywGjWx2XcmLPy6MD2CAwfrSkDEv11WkFKIbuMtkzzvEWowWOYoUf_10d3djEXSBK3Axfbk5Q5svTtWpCHtDXLflg/s1600/Casagrande_Tom_316.jpg" imageanchor="1"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiQOuatZowr4gQTu4Eq9c_NyYowNxKn9Xo3O3lMieN6WlEjdymXtYolywGjWx2XcmLPy6MD2CAwfrSkDEv11WkFKIbuMtkzzvEWowWOYoUf_10d3djEXSBK3Axfbk5Q5svTtWpCHtDXLflg/s1600/Casagrande_Tom_316.jpg" oda="true" /></a></div><br /><div align="right"></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-227273970830005333.post-67881543023161920932011-12-07T17:05:00.001-06:002011-12-08T14:15:17.604-06:00FTC Chairman Criticizes ICANN’s Planned Domain Name Expansion<span style="font-family: "Arial", "sans-serif"; font-size: 10.5pt;">The opposition to ICANN's planned January 2012<span style="mso-spacerun: yes;"> </span>major expansion of Top Level Domains seems to quickly be gaining momentum in Washington. </span><br />
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<span style="font-family: "Arial", "sans-serif"; font-size: 10.5pt;">According to a <a href="http://www.nationaljournal.com/tech/ftc-chairman-attacks-new-domain-name-plan-20111207">news report</a>, the chairman of the Federal Trade Commission </span><span style="font-family: "Arial", "sans-serif"; font-size: 10.5pt;">said</span><span style="font-family: "Arial", "sans-serif"; font-size: 10.5pt;"> today that ICANN’s plan to allow an unlimited number of new Internet addresses could be a “disaster” for consumers. Also, two House subcommittees have scheduled hearings on the ICANN plan for next week. </span><br />
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Arial", "sans-serif"; font-size: 10.5pt;">FTC Chairman’s Opposition</span></b><br />
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<span style="font-family: "Arial", "sans-serif"; font-size: 10.5pt;">Specifically, at this morning’s hearing on antitrust issues before the House Intellectual Property, Competition and the Internet subcommittee, FTC Chairman Jon Leibowitz said: “We are very, very concerned that the rollout of new [domain names] has the potential to be a disaster for consumers and for businesses.” <span style="mso-spacerun: yes;"> </span>He continued:<span style="mso-spacerun: yes;"> </span>“We see enormous costs here to consumers and businesses and not a lot of benefit. So we are working with consumer protection agencies around the world who also have concerns” with the plan.</span><br />
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<span style="font-family: "Arial", "sans-serif"; font-size: 10.5pt;">Leibowitz noted that FTC Internet fraud investigations frequently reveal that scammers use fraudulent information to register domain names, making them harder to track. The availability of far more domain names will make stopping them even harder.</span><br />
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<span style="font-family: "Arial", "sans-serif"; font-size: 10.5pt;">Both Chairman Leibowitz and Subcommittee Chairman <strong><span style="font-family: "Arial", "sans-serif";">Bob Goodlatte</span></strong>, R-Va., </span><span style="font-family: "Arial", "sans-serif"; font-size: 10.5pt;">have <a href="http://www.nationaljournal.com/tech/ftc-chairman-attacks-new-domain-name-plan-20111207"><span style="color: blue;">communicated</span></a> their concerns to the Commerce Department’s National Telecommunications and Information Administration.<span style="mso-spacerun: yes;"> </span>The NTIA has oversight over ICANN and is currently weighing whether to extend a technical contract it has with ICANN that is up for renewal in March.<span style="mso-spacerun: yes;"> </span>Leibowitz said he plans to contact ICANN directly soon about his concerns with the new proposal, as well</span><span style="font-family: "Arial", "sans-serif"; font-size: 10.5pt;">.</span><br />
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Arial", "sans-serif"; font-size: 10.5pt;">Other Committee Hearings on ICANN Plan</span></b><br />
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<span style="font-family: "Arial", "sans-serif"; font-size: 10.5pt;">As reported in our earlier blog</span><a href="http://lockelordadmark.blogspot.com/2011/12/senate-to-consider-delaying-icann-from.html"><span style="font-family: "Arial", "sans-serif"; font-size: 10.5pt;"><span style="background-color: white;"> </span><span style="color: blue;">post</span></span></a><span style="font-family: "Arial", "sans-serif"; font-size: 10.5pt;">, the full Senate Commerce Committee will hold a hearing on Thursday<span style="mso-spacerun: yes;"> </span>on ICANN’s new domain name plan.<span style="mso-spacerun: yes;"> </span>Also, the House Energy and Commerce Committee<span style="background-color: white;"> </span></span><a href="http://energycommerce.house.gov/hearings/hearingdetail.aspx?NewsID=9134"><span style="font-family: "Arial", "sans-serif"; font-size: 10.5pt;"><span style="background-color: white; color: blue;">said</span></span></a><span style="font-family: "Arial", "sans-serif"; font-size: 10.5pt;"> Wednesday that its Communications and Technology subcommittee also will hold a hearing next week on ICANN’s new domain name plan.</span><br />
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<div align="right" style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none;"><em>Authors: Paul C. Van Slyke</em> <em> Tom Casagrande</em></div><div class="separator" style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; clear: both; text-align: right;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7Gcw7YHk9UAJzokld6jWaJGO6gLQwSQK6dbjTROr6yMOc7rueyZDh2k4Bj3uR6gf5z6mqp_6lhqw8e0bhDGTVDsAzq8xlNSPLlcxLVDDRfWgA06dxI_ImBccUyKvXOTPq7ZMp6awOIzDW/s1600/Casagrande_Tom_316.jpg" imageanchor="1" style="clear: right; cssfloat: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" closure_uid_31tvjy="9" dda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7Gcw7YHk9UAJzokld6jWaJGO6gLQwSQK6dbjTROr6yMOc7rueyZDh2k4Bj3uR6gf5z6mqp_6lhqw8e0bhDGTVDsAzq8xlNSPLlcxLVDDRfWgA06dxI_ImBccUyKvXOTPq7ZMp6awOIzDW/s1600/Casagrande_Tom_316.jpg" /></a><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiyI_OJAZt7Lv7qLY-pT8T9pT_I2b-Uktubyhjs6go80d5Bwbmu8pS4EfND703bjrOFdpfcXQ8_s2LSkR2al0Sm_EUhHyA_dbyCDUTlzVOYKQWR4NbqSF6Sw6JJXA9zygYCmlUACzCPirir/s1600/vanSlyke_Paul__124.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" closure_uid_31tvjy="10" dda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiyI_OJAZt7Lv7qLY-pT8T9pT_I2b-Uktubyhjs6go80d5Bwbmu8pS4EfND703bjrOFdpfcXQ8_s2LSkR2al0Sm_EUhHyA_dbyCDUTlzVOYKQWR4NbqSF6Sw6JJXA9zygYCmlUACzCPirir/s1600/vanSlyke_Paul__124.jpg" /></a></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-227273970830005333.post-18807966159439479862011-12-07T13:41:00.001-06:002011-12-07T13:41:39.883-06:00Witnesses for Senate Commerce Committee Hearing on ICANN Top Level Domain Expansion<div class="MsoNormal" style="line-height: 13.5pt; margin: 0in 0in 12pt; mso-outline-level: 5;"><b style="mso-bidi-font-weight: normal;"><u><span lang="EN" style="font-family: "Arial", "sans-serif"; mso-ansi-language: EN;">Hearing</span></u></b>:<span style="mso-spacerun: yes;"> <strong> </strong></span><strong><span style="color: black; font-family: Arial, Helvetica, sans-serif; font-size: small;">Dec. 8, 2011 10:00 AM,</span><span style="mso-spacerun: yes;"> </span></strong><span lang="EN" style="color: black; font-family: "Arial", "sans-serif"; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Russell Senate Office Building – 253. </span><span lang="EN" style="color: black; font-family: "Arial", "sans-serif"; mso-ansi-language: EN;">The hearing will be webcast live via the Senate Commerce Committee </span><a href="http://commerce.senate.gov/public/index.cfm?p=Home"><span lang="EN" style="font-family: "Arial", "sans-serif"; mso-ansi-language: EN;"><span style="color: blue;">website</span></span></a><span lang="EN" style="color: black; font-family: "Arial", "sans-serif"; mso-ansi-language: EN;">. </span><b><span lang="EN" style="color: #929b74; font-family: "Arial", "sans-serif"; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";"></span></b></div><div class="LLBody" style="margin: 0in 0in 12pt;"><span lang="EN" style="font-family: "Arial", "sans-serif"; mso-ansi-language: EN;">See our complete article on this blog “<a href="http://lockelordadmark.blogspot.com/2011/12/senate-to-consider-delaying-icann-from.html">Senate to Consider Delaying ICANN From Global Expansion of Internet Addresses</a>”</span></div><div class="p1" style="line-height: 13.5pt; margin: auto 0in;"><span lang="EN" style="font-family: "Arial", "sans-serif"; mso-ansi-language: EN;">The names and titles of the witnesses scheduled to testify at the committee hearing are listed below from the committee </span><a href="http://commerce.senate.gov/public/index.cfm?p=Home"><span lang="EN" style="font-family: "Arial", "sans-serif"; mso-ansi-language: EN;"><span style="color: blue;">website</span></span></a><span lang="EN" style="color: black; font-family: "Arial", "sans-serif"; mso-ansi-language: EN;">.</span><span lang="EN" style="font-family: "Arial", "sans-serif"; mso-ansi-language: EN;"><span style="mso-spacerun: yes;"> </span>The bullet points beneath certain names are added. </span></div><div class="MsoNormal" style="line-height: 13.5pt; margin: 0in 0in 12pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-indent: -0.25in;"><span lang="EN" style="color: black; font-family: Symbol; font-size: 10pt; mso-ansi-language: EN; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span><b><span lang="EN" style="color: black; font-family: "Arial", "sans-serif"; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Mr. Kurt Pritz </span></b><span lang="EN" style="color: black; font-family: "Arial", "sans-serif"; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";"><br />
Senior Vice President <br />
Internet Corporation for Assigned Names and Numbers </span></div><div class="MsoNormal" style="line-height: 13.5pt; margin: 0in 0in 12pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-indent: -0.25in;"><span lang="EN" style="color: black; font-family: Symbol; font-size: 10pt; mso-ansi-language: EN; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span><b><span lang="EN" style="color: black; font-family: "Arial", "sans-serif"; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Ms. Fiona Alexander </span></b><span lang="EN" style="color: black; font-family: "Arial", "sans-serif"; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";"><br />
Associate Administrator, Office of International Affairs, National Telecommunications and Information Administration <br />
U.S. Department of Commerce </span></div><div class="MsoNormal" style="line-height: 13.5pt; margin: 0in 0in 12pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-indent: -0.25in;"><span lang="EN" style="color: black; font-family: Symbol; font-size: 10pt; mso-ansi-language: EN; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span><b><span lang="EN" style="color: black; font-family: "Arial", "sans-serif"; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Mr. Dan Jaffe </span></b><span lang="EN" style="color: black; font-family: "Arial", "sans-serif"; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";"><br />
Executive Vice President, Government Relations, Association of National Advertisers <br />
Coalition for Responsible Internet Domain Oversight </span></div><div class="MsoNormal" style="line-height: 13.5pt; margin: 0in 0in 12pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-indent: -0.25in;"><span lang="EN" style="color: black; font-family: Symbol; font-size: 10pt; mso-ansi-language: EN; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span><b><span lang="EN" style="color: black; font-family: "Arial", "sans-serif"; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Ms. Esther Dyson </span></b><span lang="EN" style="color: black; font-family: "Arial", "sans-serif"; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";"><br />
New York, NY</span></div><div class="LLBody" style="margin: 0in 0in 12pt 0.5in; mso-list: l0 level1 lfo1; tab-stops: list .5in; text-align: justify; text-indent: -0.25in;"><span style="font-family: Symbol; font-size: 10pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span><span lang="EN" style="font-family: "Arial", "sans-serif"; mso-ansi-language: EN;">Esther Dyson is an active angel investor in a variety of start-ups, for-profit and otherwise, around the world. She also operates as the Internet’s court jester, a person of no institutional importance who somehow manages to speak the truth and to be heard when and where it matters. She does business as EDventure, the reclaimed name of the company she owned for 20-odd years before selling it to CNET Networks in 2004.</span><span style="font-family: "Arial", "sans-serif";"></span></div><div class="MsoNormal" style="line-height: 13.5pt; margin: 0in 0in 12pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-indent: -0.25in;"><span lang="EN" style="color: black; font-family: Symbol; font-size: 10pt; mso-ansi-language: EN; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span><b><span lang="EN" style="color: black; font-family: "Arial", "sans-serif"; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Ms. Angela F. Williams </span></b><span lang="EN" style="color: black; font-family: "Arial", "sans-serif"; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";"><br />
Senior Vice President and General Counsel <br />
Young Men’s Christian Association of the United States of America </span></div><ul style="margin-top: 0in;" type="disc"><li class="MsoNormal" style="color: black; margin: 0in 0in 0pt; mso-list: l0 level1 lfo1; tab-stops: list .5in; text-align: justify;"><div style="text-align: justify;"><span style="color: windowtext; font-family: "Arial", "sans-serif"; letter-spacing: 0.4pt;">Angela F. Williams is bi-vocational -- she is both an ordained </span><span style="color: windowtext; font-family: "Arial", "sans-serif"; letter-spacing: 0.55pt;">minister and a lawyer. The New York Times and L Magazine </span><span style="color: windowtext; font-family: "Arial", "sans-serif"; letter-spacing: 0.3pt;">featured her in articles about people who pursue two full-time </span><span style="color: windowtext; font-family: "Arial", "sans-serif"; letter-spacing: 0.1pt;">professions. In 2007, Warner Books published a book inspired by </span><span style="color: windowtext; font-family: "Arial", "sans-serif"; letter-spacing: 0.2pt;">Mrs. Williams’ life entitled One Person/Multiple Careers: A New </span><span style="color: windowtext; font-family: "Arial", "sans-serif"; letter-spacing: 0.1pt;">Model for Work/Life Success. In 2009, The National Law Journal </span><span style="color: windowtext; font-family: "Arial", "sans-serif"; letter-spacing: 0.25pt;">named Mrs. Williams as one of the 20 most influential general </span><span style="color: windowtext; font-family: "Arial", "sans-serif"; letter-spacing: 0.65pt;">counsel in America.<span style="mso-spacerun: yes;"> </span></span><span lang="EN" style="font-family: "Arial", "sans-serif"; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">(See <a href="http://www.lacaymca.org/documentos/AngelaWilliamsbioeng.pdf">http://www.lacaymca.org/documentos/AngelaWilliamsbioeng.pdf</a>)</span></div></li>
</ul><div class="MsoNormal" style="line-height: 13.5pt; margin: 0in 0in 12pt 0.5in; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;"><span lang="EN" style="color: black; font-family: "Arial", "sans-serif"; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Williams:<span style="mso-spacerun: yes;"> </span></span><span style="font-family: "Arial", "sans-serif";">Protecting the YMCA's marks and brands is critical, Williams said, noting that a nonprofit's <span style="mso-tab-count: 1;"> </span>biggest assets are its brand name and reputation. Damage to either affects donations and the ability to <span style="mso-tab-count: 1;"> </span>serve the community. She sends out cease-and-desist letters when warranted, monitors the brand position and keeps track of registrations with the U.S. Patent and Trademark Office. "No other organization owns a letter of the alphabet," Williams said. (See<span style="mso-spacerun: yes;"> </span></span><span lang="EN" style="color: black; font-family: "Arial", "sans-serif"; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";"><a href="http://www.law.com/jsp/cc/PubArticleCC.jsp?id=1202426305141">http://www.law.com/jsp/cc/PubArticleCC.jsp?id=1202426305141</a>)</span><br />
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<div align="right"><em>Author: Paul Van Slyke</em></div><div align="right"> </div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgaHU2tlZweTvZTUB2H0jhpgtbX5iIRN1VWjAl9IfyRmop4N4LevyY3-7PRcQMdZvQyTd7ytaRlb8GV8G1lscIZcjJymCBVPtta03IgXFPuQvXB0qIhg-pZNFRDiBmnL0W_BHFhPZu6dstT/s1600/vanSlyke_Paul__124.jpg" imageanchor="1" style="clear: right; cssfloat: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" closure_uid_5mn6mb="2" dda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgaHU2tlZweTvZTUB2H0jhpgtbX5iIRN1VWjAl9IfyRmop4N4LevyY3-7PRcQMdZvQyTd7ytaRlb8GV8G1lscIZcjJymCBVPtta03IgXFPuQvXB0qIhg-pZNFRDiBmnL0W_BHFhPZu6dstT/s1600/vanSlyke_Paul__124.jpg" /></a></div><div align="right"></div></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-227273970830005333.post-2622646515411297742011-12-05T14:47:00.001-06:002011-12-05T14:47:33.529-06:00Senate to Consider Delaying ICANN From Global Expansion of Internet Addresses<div class="MsoNormal" style="line-height: 13.5pt; margin: 0in 0in 12pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;"><span style="font-family: "Arial", "sans-serif";">At <span style="color: black;">10:00 am on</span> Thursday, December 8, 2011, the Senate Commerce Committee will conduct a hearing investigating whether to delay implementation of ICANN’s major expansion of global Internet Addresses (Top Level Domains), which is scheduled for January 2012..<span style="mso-spacerun: yes;"> </span><span style="color: black;">Brand owners in the insurance and energy industries and in most other industry sectors have long feared that the planned expansion may</span> confuse consumers, increase the already unacceptable level of fraud and identity theft on the Internet, create new opportunities for Internet crime, and jeopardize cybersecurity.<span style="color: black;"><span style="mso-spacerun: yes;"> </span>Consumer groups, government cybersecurity agencies, and law enforcement share these concerns</span>.<span style="mso-spacerun: yes;"> </span><span style="color: black;">Entities who wish to make their views known to the Senate Committee can file written comments with the committee by December 6 to be considered by its policy staff. If delivered to a Senator is a member of the Committee before the hearing, written comments can be entered into the record by the Senator to be considered after the hearing.<span style="mso-spacerun: yes;"> </span>Private interviews with committee policy staff members are also available.</span></span></div><div class="MsoNormal" style="line-height: 13.5pt; margin: 0in 0in 12pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;"><b style="mso-bidi-font-weight: normal;"><u><span style="color: black; font-family: "Arial", "sans-serif";">The Committee Hearing</span></u></b></div><div class="MsoNormal" style="line-height: 13.5pt; margin: 0in 0in 12pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;"><span style="color: black; font-family: "Arial", "sans-serif";">The Committee </span><a href="http://commerce.senate.gov/public/index.cfm?p=Hearings&ContentRecord_id=22f4a71e-93e9-4711-acec-3ed7f52277cc&ContentType_id=14f995b9-dfa5-407a-9d35-56cc7152a7ed&Group_id=b06c39af-e033-4cba-9221-de668ca1978a"><span style="font-family: "Arial", "sans-serif";"><span style="color: blue;">notice</span></span></a><span style="color: black; font-family: "Arial", "sans-serif";"> indicates that the hearing will examine the merits and implications of this new program and assess ICANN’s efforts to address concerns raised by the Internet community. The hearing will be webcast live via the Senate Commerce Committee </span><a href="http://commerce.senate.gov/public/index.cfm?p=Hearings&ContentRecord_id=22f4a71e-93e9-4711-acec-3ed7f52277cc&ContentType_id=14f995b9-dfa5-407a-9d35-56cc7152a7ed&Group_id=b06c39af-e033-4cba-9221-de668ca1978a"><span style="font-family: "Arial", "sans-serif";"><span style="color: blue;">website</span></span></a><span style="color: black; font-family: "Arial", "sans-serif";">. <span style="mso-spacerun: yes;"> </span></span></div><div class="MsoNormal" style="margin: 0in 0in 12pt; text-align: justify;"><span style="color: black; font-family: "Arial", "sans-serif";">Many were surprised that the Committee set this hearing on the eve of ICANN’s implementation of the expansion of Top Level Domains since </span><span lang="EN-CA" style="color: #1f497d; font-family: "Arial", "sans-serif"; mso-ansi-language: EN-CA;">t</span><span lang="EN-CA" style="color: black; font-family: "Arial", "sans-serif"; mso-ansi-language: EN-CA;">here had already been a lengthy period for submission of comments on the plan. Until now, Congress and other federal government entities have shown little interest in examining the implications of ICANN’s planned expansion.</span></div><div class="MsoNormal" style="line-height: 13.5pt; margin: 0in 0in 12pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;"><b style="mso-bidi-font-weight: normal;"><u><span style="color: black; font-family: "Arial", "sans-serif";">CRIDO’s Letter to Commerce Department Sparks Hearing</span></u></b></div><div class="MsoNormal" style="line-height: 13.5pt; margin: 0in 0in 12pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;"><span style="color: black; font-family: "Arial", "sans-serif";">The hearing was sparked by the Coalition for Responsible Internet Domain Oversight (CRIDO)— consortium of a bevy of big-name companies, trade associations and organizations—which </span><a href="http://clients.criticalimpact.com/go.cfm?a=1&b=102721&f=e1368f62c3c6bb2c134e89a599b335a5131f996a16d23b89"><span style="font-family: "Arial", "sans-serif";"><span style="color: blue;">wrote</span></span></a><span style="color: black; font-family: "Arial", "sans-serif";"> requesting postponement of the expansion.<span style="mso-spacerun: yes;"> </span>.</span></div><div class="RSBodyText" style="margin: 0in 0in 12pt; text-align: justify;"><span style="font-family: "Arial", "sans-serif";">CRIDO’s letter complained that ICANN pushed the planned expansion forward despite widespread and significant objections raised by many in the global community of Internet users. CRIDO has stated that ICANN’s decision is not in the public interest, does not promote consumer trust, and does not benefit the public, as required in a September 30, 2009 </span><a href="http://www.ntia.doc.gov/files/ntia/publications/affirmation_of_commitments_2009.pdf"><span style="font-family: "Arial", "sans-serif";"><span style="color: blue;">Agreement</span></span></a><span style="font-family: "Arial", "sans-serif";"> between the U.S. Government (though the National Telecommunications and Information Administration) and ICANN.<span style="mso-spacerun: yes;"> </span></span></div><div class="RSBodyText" style="margin: 0in 0in 12pt; text-align: justify;"><span style="font-family: "Arial", "sans-serif";">Specifically, the Coalition claims that ICANN plan would unduly burden public and private brand holders, who would be forced to spend ever-greater amounts of time and resources for brand protection.<span style="mso-spacerun: yes;"> </span>In addition, the Coalition warns of an unacceptably high risk that the ICANN plan would confuse consumers, increase the already unacceptable level of fraud and identity theft on the Internet, create new opportunities for Internet crime, and jeopardize cyber security.<span style="mso-spacerun: yes;"> </span>The Coalition also posits that the current state of the global economy raises substantial issues regarding the wisdom of moving forward with ICANN’s plan, given its undisputed costs and its merely claimed benefits.<span style="mso-spacerun: yes;"> </span></span></div><div class="RSBodyText" style="margin: 0in 0in 12pt; text-align: justify;"><span style="font-family: "Arial", "sans-serif";">The Coalition urged postponement of the opening of the top-level domain application window until ICANN adequately addressed these concerns.</span><span style="font-family: "Arial", "sans-serif";"></span></div><div class="RSBodyText" style="margin: 0in 0in 0pt; text-align: justify;"><b style="mso-bidi-font-weight: normal;"><u><span style="font-family: "Arial", "sans-serif";">Implications</span></u></b></div><div class="RSBodyText" style="margin: 0in 0in 0pt; text-align: justify;"><br />
</div><div class="RSBodyText" style="margin: 0in 0in 0pt; text-align: justify;"><span style="font-family: "Arial", "sans-serif";">The scheduled hearing gives brand owners who act promptly another opportunity<span style="mso-spacerun: yes;"> </span>to persuade ICANN to delay the planned expansion until it adequately addresses all these shared concerns.<span style="mso-spacerun: yes;"> </span>Congress unquestionably can assert practical, leverage over ICANN <span style="letter-spacing: -0.15pt; mso-font-width: 105%;">to more adequately address these issues prior to expansion.</span><span style="mso-spacerun: yes;"> </span>What is unclear at this time is whether Congress and other government agencies will use this leverage. </span></div><br />
<div align="right"><em>Author: Paul Van Slyke</em></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgaHU2tlZweTvZTUB2H0jhpgtbX5iIRN1VWjAl9IfyRmop4N4LevyY3-7PRcQMdZvQyTd7ytaRlb8GV8G1lscIZcjJymCBVPtta03IgXFPuQvXB0qIhg-pZNFRDiBmnL0W_BHFhPZu6dstT/s1600/vanSlyke_Paul__124.jpg" imageanchor="1" style="clear: right; cssfloat: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" dda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgaHU2tlZweTvZTUB2H0jhpgtbX5iIRN1VWjAl9IfyRmop4N4LevyY3-7PRcQMdZvQyTd7ytaRlb8GV8G1lscIZcjJymCBVPtta03IgXFPuQvXB0qIhg-pZNFRDiBmnL0W_BHFhPZu6dstT/s1600/vanSlyke_Paul__124.jpg" /></a></div><div align="right"></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-227273970830005333.post-36939352722292591502011-12-02T15:16:00.005-06:002011-12-02T15:35:31.433-06:00Wax Wars! Maker’s Mark v. José Cuervo – Is Melty Wax a Trademark? Or a Pretty Seal Available for All to Use?<div class="LLBody" style="margin: 0in 0in 12pt;">Is wax coating on bottles of liquor a trademark?<span style="mso-spacerun: yes;"> </span>Or is it a pleasing way to make the liquor look “artisanal”?<span style="mso-spacerun: yes;"> </span>If your company sells products symbolized by a unique and visually attractive graphic or ornamental device, you should care about this question.</div><div class="LLBody" style="margin: 0in 0in 12pt;">On December 2, two heavyweights in the hard liquor industry (we’ve heard of “Big Oil,” but is there such a thing as “Big Booze”?) argued before the U.S. Court of Appeals for the Sixth Circuit.<span style="mso-spacerun: yes;"> </span>The legal issues:<span style="mso-spacerun: yes;"> </span>(1) whether a melted wax seal on Jos<span style="mso-bidi-font-family: "Times New Roman";">é</span> Cuervo’s $100 reserve tequila infringed Maker’s Mark’s registered design trademark for “wax-like coating covering the cap of the bottle and trickling down the neck of the bottle in a freeform irregular pattern” on whiskey bottles; and (2) whether the use of dripping wax over the cap of a bottle of spirits is “aesthetically functional.”<span style="mso-spacerun: yes;"> </span>Here are the two bottles:</div><div class="separator" style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; clear: both; text-align: left;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjTY8krUbjyVHVq60mM_Pes7DZLzBsSoR9j5YqYa5BsNfEE6b-gpIkJHJmW3HrsQtyVoYv47_pJUJP1ciD9WkfZzZQKGUlx0R1Fg7GYp_OknA9ukq2XdhzsG-uX5LX0ROFyqmNzzwgr1ihL/s1600/Makers+Mark.jpg" imageanchor="1" style="clear: left; cssfloat: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" dda="true" height="195" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjTY8krUbjyVHVq60mM_Pes7DZLzBsSoR9j5YqYa5BsNfEE6b-gpIkJHJmW3HrsQtyVoYv47_pJUJP1ciD9WkfZzZQKGUlx0R1Fg7GYp_OknA9ukq2XdhzsG-uX5LX0ROFyqmNzzwgr1ihL/s200/Makers+Mark.jpg" width="200" /></a><img border="0" dda="true" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgWNcu4kgCLbG3TCs7xXXjwUH29e44x5ySjPtTof6CbCQVZSSr53G9t582ly3GnZQZ5geQg06OSPbSmLhMT5xUaVnLc4sgkl4UETD2deL6oUpEv7w2ARxpfGCewaFzIdUytkxqFcsBHU6cT/s200/Jose+Cuervo+reserva.jpg" width="133" /></div><div class="separator" style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; clear: both; text-align: left;"><br />
</div><span style="mso-no-proof: yes;"><shapetype coordsize="21600,21600" filled="f" id="_x0000_t75" o:preferrelative="t" o:spt="75" path="m@4@5l@4@11@9@11@9@5xe" stroked="f"><stroke joinstyle="miter"></stroke><formulas><f eqn="if lineDrawn pixelLineWidth 0"></f><f eqn="sum @0 1 0"></f><f eqn="sum 0 0 @1"></f><f eqn="prod @2 1 2"></f><f eqn="prod @3 21600 pixelWidth"></f><f eqn="prod @3 21600 pixelHeight"></f><f eqn="sum @0 0 1"></f><f eqn="prod @6 1 2"></f><f eqn="prod @7 21600 pixelWidth"></f><f eqn="sum @8 21600 0"></f><f eqn="prod @7 21600 pixelHeight"></f><f eqn="sum @10 21600 0"></f></formulas><path gradientshapeok="t" o:connecttype="rect" o:extrusionok="f"></path><lock aspectratio="t" v:ext="edit"></lock></shapetype></span><br />
<div style="text-align: left;">Some courts have held that if a design element is so aesthetically pleasing that it makes customers want the item, one company cannot claim that design element as a trademark and keep others from using it, because that would put competitors at a disadvantage.<span style="mso-spacerun: yes;"> </span>This notion of “aesthetic functionality,” however, is a controversial topic.<span style="mso-spacerun: yes;"> </span>Earlier this year, we reported on a <a href="http://www.lockelord.com/files/Publication/352b01c1-0c49-47dc-a8fd-a8ac65e6a1b7/Presentation/PublicationAttachment/eb977861-529b-4111-baa9-b7c053ef0791/2011-02_25th_NinthCircuit_Casagrande.pdf">Ninth Circuit opinion</a> that images of Betty Boop on clothing and handbags was unprotectable because it was aesthetically functional induced raised eyebrows and raised voices in the trademark world.<span style="mso-spacerun: yes;"> </span>After the outcry, the <a href="http://www.lockelord.com/files/Publication/2907bd69-869d-4ad5-b324-29e1b883975f/Presentation/PublicationAttachment/e4d253ce-789f-4157-baf2-2f735cf79445/2011-08_23rd_BettyBoop_Casagrande.pdf">Ninth Circuit quietly changed its ruling</a> to sidestep the issue.</div><div class="LLBody" style="margin: 0in 0in 12pt;"><br />
</div><div class="LLBody" style="margin: 0in 0in 12pt;">In the Maker’s Mark vs. Jos<span style="mso-bidi-font-family: "Times New Roman";">é</span> Cuervo case, aesthetic functionality is front-and-center once again, with Cuervo claiming that the “hand-dipped wax seal” look helps create an artisanal image that helped to sell its luxury tequila at $100 per bottle.<span style="mso-spacerun: yes;"> </span>Cuervo has marshaled evidence that artisanal producers of alcoholic beverages have used hand-dipped wax seals for centuries (and still do).<span style="mso-spacerun: yes;"> </span>Cuervo also argues that its bottle not only looked different from Maker’s Mark’s whiskey bottle, but prominently displayed the Cuervo brand—and that at $100 a pop, its customers would be well-aware that they weren’t buying Kentucky bourbon. Maker's Mark relied on decades of advertising focusing consumers on the wax seal as creating an indelible association with its brand.</div><div class="LLBody" style="margin: 0in 0in 12pt;">The Sixth Circuit is likely to issue its ruling in the next 6-8 months, and it’s certain that one side won’t be toasting the outcome. <span style="mso-spacerun: yes;"> </span>If the court finds these wax seals aesthetic functional, then trademark law would not be able to stop consumer brand confusion.<span style="mso-spacerun: yes;"> </span>But if the court rejects aesthetic functionality, then Maker’s Mark would have a de facto monopoly on that type of seal in the liquor business.<span style="mso-spacerun: yes;"> </span>A real trademark law quandary. </div><div class="LLBody" style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; margin: 0in 0in 12pt;">In the meantime, however, owners of attractive packaging designs that could be attacked as aesthetically functional would be wise to shore up their trademark bona fides by, for example, use of advertising specifically calling attention to the attractive design element—be it packaging, product shapes, or product color combinations—that uniquely identifies the brand owner and drives sales.<span style="mso-spacerun: yes;"> </span></div><div class="LLBody" style="margin: 0in 0in 12pt;"><br />
</div><div class="LLBody" style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; margin: 0in 0in 12pt; text-align: right;"><em>Authors: Tom Casagrande Paul Van Slyke</em></div><div class="LLBody" style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; margin: 0in 0in 12pt; text-align: right;"><br />
</div><div class="separator" style="clear: both; margin: 0in 0in 12pt; text-align: right;"></div><div class="separator" style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; clear: both; text-align: right;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjJe3OdHB0HuzxdCQduEnxJDcu5ooWAq7-6cD-5ttsi3FPlCamD8tnU-LOLnV3DcsMhRYOLglwBwHmH6ewrciD-tjdcvXmA_0izN221mV4AqIjflPQcqjYq0ynXRwx4UAQ_aONzPVORL59M/s1600/Casagrande_Tom_316.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" dda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjJe3OdHB0HuzxdCQduEnxJDcu5ooWAq7-6cD-5ttsi3FPlCamD8tnU-LOLnV3DcsMhRYOLglwBwHmH6ewrciD-tjdcvXmA_0izN221mV4AqIjflPQcqjYq0ynXRwx4UAQ_aONzPVORL59M/s1600/Casagrande_Tom_316.jpg" /></a><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh4pMyZN3DAeI5rkwmfhK01Aq8qoiU-sXKeLBXqfLCcMvleoYX2-v55oMBCPjTYanSt9y5Ech96kh-zl27KXUOwyGnzCq1wr0jNynApg1BwXEdFU7kcWifsEIPYHe_vvvWXqlhc_os_klu1/s1600/vanSlyke_Paul__124.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" dda="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh4pMyZN3DAeI5rkwmfhK01Aq8qoiU-sXKeLBXqfLCcMvleoYX2-v55oMBCPjTYanSt9y5Ech96kh-zl27KXUOwyGnzCq1wr0jNynApg1BwXEdFU7kcWifsEIPYHe_vvvWXqlhc_os_klu1/s1600/vanSlyke_Paul__124.jpg" /></a></div>Unknownnoreply@blogger.com