Transcript Document

Intellectual Property & the Net
Brett J. Trout
7/21/2015
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Types of Intellectual Property
Trademark law
 Copyright law
 Patent law
 Trade secret law
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Trademark

A word, name, phrase or symbol used to
identify source or origin of a good or
service provided through commerce
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Types of Trademarks
Fanciful – Qwing
 Arbitrary – royal
 Suggestive – NoDoze
 Descriptive – red
 Generic - apple
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Types of Trademarks
Color – pink for fiberglass
 Sound – NBC chimes
 Scent – floral scent for yarn
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Types of Trademarks
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Domain names - Amazon.Com
 Over
500 pending
Animated browser icon – Netscape
 “E” marks – eVideo, eMusic
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Types of Protection
Common law
 State registration
 Federal registration
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Registering You Domain Name
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Do not register http:///www portion
Must indicate source
Not merely address
Not primarily a surname unless secondary
meaning
Not primarily geographically descriptive or
misdescriptive
Not selling only your own goods or services over
the site
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Litigation

Infringement
 Similarity
of marks
 Similarity of goods or services
 Similarity of trade channels
 Sophistication of buyer
 Strength of mark
 Actual confusion or lack thereof
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Remedies
Injunction
 Damages and Infringer’s profits
 Treble damages
 Attorney fees
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 Must
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be an exceptional case
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Litigation

Cybersquatting
 Uniform
Dispute Resolution Policy - UDPR
 Anticybersquatting Consumer Protection Act.
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Litigation
 Uniform
Dispute Resolution Policy
 Created
by ICANN
 Adopted by all Registrars
 Mediation (6-8 weeks)
• Can only get transfer or cancellation of name
 Requires
registrant to respond within 20 days
 Requires showing of bad faith
 Do not have to have federal registration
 Trademark owner wins 80% of disputes.
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Litigation
 Anticybersquatting
Consumer Protection Act
 Federal
Court
 Statutory Damages $1K to $100K
• Available only if name registered after law enacted
 Like
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UDRP, requires bad faith.
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Litigation
 Federal Anti-Dilution
 Mark
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statute
must be famous.
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Litigation

Likelihood of confusion on the web - same
factors apply
 Similarity
of the marks
 Relatedness of the goods or services
 Simultaneous use by competing companies of
the web as a marketing channel
 Addition of “.Com” typically not a factor
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Litigation

Invisible infringement
 Metatags
 Playboy
and playmate
 Court does not differentiate visible from
invisible infringement
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Other Issues

Stealthing
 Words
same color as background
 Invisible to viewer
 Visible to search engines
 Likely viewed the same as metatag
infringement
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Other Issues

Link to search engine banner ads
 Playboy
 Banner
 Estee
lauder
 Banner
 No
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ads for pornography
ads for knock-off perfume
decision in either case
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Other Issues

“Suck” sites
 Walmartsucks.Com
 Very
difficult to get name back
 Free speech issues
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Copyright
Original works of authorship
 Fixed in a tangible medium
 Protects expression

 Not
functionality
 Not ideas
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Copyright Rights
Reproduce work
 Make derivative works
 Distribute copies
 Perform work publicly
 Display work publicly
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Covered Works
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Literary works
Musical works
Dramatic works
Choreographic works
Pictorial, graphic and sculptural
Motion pictures
Sound recordings
Architectural works
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Does Not Protect
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Ideas
Procedures
Processes
Systems
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Methods of operation
Concepts
Principles
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Damages
Your damages and Infringer’s profit
 Injunction
 Statutory damages
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 $500-$20,000
 $100K

if willful and malicious
Attorney fees and costs
 Available
to either side
 Frivolous or unreasonable
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Fair Use Exceptions
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Purpose and character or work
 Commercial
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Nature of copyrighted work
 Form
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use of copy
book
Amount of work taken
Economic impact of taking
Usually ok
 Parody
 Critical
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commentary
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Deep Linking

Ticketmaster v. Microsoft
 Microsoft
Seattle sidewalk website
 Deep linked to Ticketmaster order page
 Skips home page and several layers of
advertising banners
 Settled
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Deep Linking

Shetland times v. Shetland news
 Deep
linking to news story
 Framed story with linker’s advertising
 Can link to story, but must give proper
attribution
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Deep Linking

Bernstein v. J.C. Penney
 Linked Arden
perfume page to page which
displayed infringing photographs of Elizabeth
Taylor
 Court dismissed case as too tenuous
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Always Obtain Permission
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Digital Millennium Copyright Act
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DMCA
 Enacted
on October 28, 1998
 Addresses the impact of electronic
commerce on the existing legal
framework
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DMCA
Does not affect the rights, remedies,
limitations or defenses to copyright
infringement.
 Does not limit “Fair Use” defense
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DMCA
Limits liability of Internet Service Providers
 Prohibits circumventing anti-piracy
software
 Requires rebroadcasters of copyrighted
material to pay royalties.
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Internet Service Providers
Shielded from IP Liability provided:
No
knowledge that material is
infringing
No receipt of financial benefit from
the infringing activity
Moves expeditiously to remove the
material that is claimed to be
infringing.
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Internet Service Providers
Shielded from IP Liability provided:
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Reasonable steps taken to notify subscriber;
Notification of non-infringement forwarded to IP
owner upon receipt from poster;
IP owner informed that the material will be
replaced; and
Material replaced in 10 days unless ISP receives
notice that complainant has filed a lawsuit.
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DMCA Safe Haven
 Adopt,
implement and inform
accountholders of ISP policy; and
 Terminate
accountholders who are
repeat infringers.
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DMCA Anti-circumvention
Under Section 1201 of the DMCA, no
person shall circumvent a technological
measure that controls access to a
copyrighted work
 Prohibits “trafficking” in any technology
product, service, or device designed to
circumvent a technological measure that
controls access to a copyrighted work.
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“Trafficking”
Includes website linking with knowledge ad
intent to distribute circumvention
technology.
 Universal Studios v. Reinerdes
 111 F.Supp.2d 294 (SDNY 2000).
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Signs You May be an IT Redneck
Your old computers are up on cinder blocks
in your front yard
 You have a bumper sticker on your PC that
says "My other computer is a laptop"
 Installing minesweeper would double the
value of your PC
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Signs You May be an IT Redneck
Any part of your PC is held together with
duct tape
 You have ever used shur'nuff in an e-mail
 You have a camouflage mouse pad
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Signs You May be an IT Redneck
You have ever used the back of your
keyboard to skin a fish
 Your e-mail program has a “Reply Y’all”
button
 You have more mouse buttons than teeth
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Patent Law

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Protects new and useful process, machine,
manufacture, or composition of matter, or any new
and useful improvement thereof.
Does not protect
 Ideas
 Obvious
combination of prior art
 Illegal or immoral matter
 Pure research
 Novelty or curiosity
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Remedies
Injunction
 Damages and Infringer’s profits
 Treble damages

 Willful

Attorney fees
 Willful
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State Street Bank

Court of appeals for the federal circuit
decision.
 Allows
patenting business method.
 Examination no longer begins by
determining if claim recites a
mathematical algorithm."
 1998
USPTO revisions to computer related
examination guidelines reflect this decision.
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Internet Patents

Amazon.Com
 Secure

credit card processing
Priceline.Com
 Reverse
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Lycos
 Spider

auction
technology
Cybergold
 Cash
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for registrations
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Problems
Internet developed using public domain
information
 USPTO has weak database and few patents
in this area
 Many applications will incorporate public
domain information
 Patent may be invalid, but will be difficult
to enforce
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Trade Secrets
Iowa enacted uniform trade secrets act in
1990
 Enacted by about 40 states
 Remaining states use common law theories
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Examples
Recipes
 Customer Lists
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Trade Secrets

Information including, but not limited to, a
formula, device, method, technique or
process that
 Derives
independent economic value from not
being generally known
 Is not readily ascertainable by proper means
 Is the subject of reasonable security precautions
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Liabilty
Posting trade secrets on the internet
 Using trade secrets you should have known
were protected
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Remedies
Injunction
 Compensation
 Punitive damages

 Willful

and malicious
Attorney fees
 Willful
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and malicious
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Religious Technology Center
Church of Scientology
 Former members posting church secrets on
the internet
 Court held

 Fair
use
 Documents no longer trade secrets after being
disclosed in prior court proceeding
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Take Home
Do not use any trademarks, text or graphics
from the web without permission
 Advise client’s to register their domain
name
 Advise clients to establish protocols for
preventing trade secrets from being posted
on the internet

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THANK YOU
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