Maryland IP Jobs, Seminar Announcement, Kanye West Lawsuit

  • Please visit the Maryland IP Jobs page for a list of Intellectual Property jobs in Maryland (if you would like to have an IP-related job in Maryland listed on this website--for free--please send me the information)
     
  • Invotex Group's Michele Riley will be co-presenting a WEBINAR to the MD Bar Association - IP Section titled "Removing the Mystery: Damages in Intellectual Property Disputes" on Thursday, September 10, 2009 from 8:30 to 9:30 a.m.  For more information, click here
     
  • A reader pointed out that in the case of Dayna Staggs v. Kanye West, No. 8:2008cv00728 (filed March 20, 2008), the U.S. District Court for the District of Maryland granted in part and denied without prejudice in part Defendant The Island Def Jam Music Group, a division of Universal Music Group's motion to dismiss (memorandum opinion; entered August 17, 2009).  In doing so, the Court, reviewing Plaintiff's copyright infringement claim, found "it it is by no means clear that Staggs would be able to establish that the Universal Defendants had access to his Song ["Volume of the Good Life"], [but] for purposes of the Motion to Dismiss, since Staggs has alleged that [Kanye] West had access to it through his MySpace page, and since the Universal Defendants could conceivably have had access through West, the Court finds that this element is satisfied." Notwithstanding, the Court also found that, "as a matter of law, there is no substantial similarity between the songs ["Volume of the Good Life" and West's "Good Life"]."

Cardin Adds Support to Intellectual Property Enforcement Bill

     On September 10, 2008, Senator Ben Cardin (D-MD) added his support to S. 3325, the Enforcement of Intellectual Property Rights Act of 2008, one day before the Senate Judiciary ordered the bill "to be reported with amendments favorably." Cardin joins eight other co-sponsors of the legislation (Senators Leahy, Bayh, Cornyn, Hatch, Voinovich, Specter, Feinstein, and Whitehouse). Next stop for the bill in consideration by the entire Senate (once placed on the Senate Calendar).

  • Enforcement of copyright laws

     S.3325, introduced July 24, 2008, would authorize the U.S. Attorney General to commence a civil action against any person who engages in conduct constituting a criminal offense under the copyright laws, 17 U.S.C. § 506, upon proof of such conduct by a preponderance of the evidence (compared to the much high criminal standard, the preponderance standard is estimated to result in more enforcement of copyright laws). A person found liable may be subject to a civil penalty under section 504 which shall be in an amount equal to the amount which would be awarded under 18 U.S.C. 3663(a)(1)(B) (i.e., the amount of the loss sustained by each victim as a result of the offense, considering the financial resources of the defendant) and restitution to the copyright owner aggrieved by the conduct.

  • Enforcement of trademark laws

     S. 3325 would enhance remedies for trademark violations. Section 35(b) of the Trademark Act of 1946 (15 U.S.C. 1117(b)) would require a court, in assessing damages for any violation of section 32(1)(a) of the Act, or or in a case involving use of a counterfeit mark or designation, to enter judgment for three times profits or damages, whichever amount is greater, together with attorney’s fee, unless the court finds extenuating circumstances. Treble damages and attorney's fees are authorized where the violation consists of:

(1) intentionally using a mark or designation, knowing such mark or designation is a counterfeit mark in connection with the sale, offering for sale, or distribution of goods or services; or

(2) providing goods or services necessary to the commission of a violation specified in paragraph (1), with the intent that the recipient of the goods or services would put the goods or services to use in committing the violation.

     The court may also award prejudgment interest beginning on the date of the service of the claimant’s pleadings and ending on the date entry of judgment is made.

Patent Reform Act Legislation Stumbles in Senate

     Below are links to and highlights of recently published blog posts discussing current events relating to the Patent Reform Act of 2007 (s.1145). It appears from all accounts that Sen. Arlen Specter (R-Pa.), ranking minority member of the Senate Judiciary Committee, and his Republican caucus, may block pending patent reform legislation until there is a "fair and equitable treatment" on the confirmation of federal judges, and resolution of provisions concerning apportionment of damages for patent infringement.

     Gret Hitt, noting that Patent Reform efforts appear to be stalled in the Senate due to an impass over provisions in S. 1145, quotes Sen. Leahy, Chairman of the Judiciary Committee, as saying, "This was a missed opportunity."

     Quoting a Reuters report, Lawrence Ebert points out that Barack Obama and his patent advisor, Mark Lemley, favor patent reforms, while U.S. trade unions oppose the bill.

      Describes how Sen. Leahy's plan to bring s.1145 to a vote was derailed when he failed to agree on several provisions with the panel’s ranking member, Sen. Arlen Specter.

     Peter Zura, one of the first to blog that Sen. Specter was pulling his support for s.1145, quoted a report stating that the Senator "cannot join" his colleagues "on some parts of the bill," citing apportionment of damages as a "principle sticking point."

Maryland IP Litigation 2008: Lawsuit Summary No. 19

  • #19: CoStar Realty Information, Inc. v. Field, No. 8:2008cv00663; filed March 13, 2008; assigned to J. Williams

     This copyright lawsuit involves Plaintiffs CoStar Realty Information, Inc., and CoStar Group, Inc., which are Delaware companies with their principal places of business in Bethesda, MD, and Defendants Mark Field (allegedly a California resident and sole proprietor d/b/a Alliance Valuation Group), Lawson Valuation Group, Inc. (allegedly a Florida entity), Russ Gressett (allegedly a Texas resident d/b/a TGC Realty Counselors), Gerald A. Teel Company, Inc. (allegedly a Texas entity), and John Does 1-5. 

     Plaintiffs assert that they provide users with access to one of the most comprehensive commercial real estate information databases available. Alliance reportedly entered into a Licensing Agreement with CoStar to access CoStar's databases, but allegedly breached the agreement by providing user names and passcodes to Defendants Lawson, Gressett, Gateel, and Does 1-5. CoStar asserts, against one or more defendants, copyright infringement, criminal copyright infringement, breach of contract, fraud, and tortious interference with contract and prospective business relationship. With regard to the copyright infringement allegation, CoStar is seeking an award of statutory damages, as well as attorney's fees and costs.

     Shari Ross Lahlou of Crowell & Moring (Washington, DC) filed the complaint on behalf of CoStar.


Under Secretary of Commerce Dudas to Discuss Patent Reform Tomorrow

     The following Notice concerning patent reform was posted on the USPTO website today. Clearly, the Bush Administration is concerned about a potential vote on the Senate's version of the Patent Reform Act of 2007 (S.1145), which was placed on the Senate Calendar in late January. In a letter to Sen. Leahy, dated today, Nathaniel Wienecke, Assistant Secretary of Commerce for Legislative and Intergovernmental Affairs, writes:

"The Administration continues to oppose Section 4, "Right of the Inventor to Obtain Damages." Consequently, we continue to oppose S. 1145 - in its entirety - unless Section 4 is significantly revised, as we believe the resulting harm to a reasonably well-functioning U.S. intellectual property system would outweigh all the bill's useful reforms.

* * *

"Downstream litigation costs can be minimized through patent clarity - offered through such early elucidation mechanisms as applicant quality submissions and post-grant procedures. Flexibility in assessing damages ensures that results can be tailored, avoiding a "one-size-fits-all" approach that pleases no one."

     The entire Notice, which involves a media call tomorrow, is after the jump...

"Commerce Under Secretary to Address Bush Administration’s Views on Patent Reform Act of 2007

Washington, D.C. – Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office (USPTO) Jon Dudas will highlight by teleconference on Tuesday, February 5, the Bush Administration’s views letter provided to members of the Senate regarding the Patent Reform Act of 2007 (S. 1145).

WHO Under Secretary of Commerce for Intellectual Property Jon Dudas

WHAT Media availability to discuss Administration’s views on S. 1145

WHEN Tuesday, February 5, 2008 10:30 a.m. ET (call in by 10:25 a.m.)

Reporters should call 800-779-8694 and enter the code #35841 to participate in the call.

Background
The Administration strongly opposes S. 1145 in its current form, but strongly supports passage of balanced patent modernization legislation. Any changes must be carefully considered and balanced to encourage all innovators and business models. The Administration opposes S. 1145 because it does not strike the right balance for all innovators. Unless the provisions limiting inventors’ rights to obtain damages are significantly revised, the Administration believes the resulting harm to the U.S. intellectual property (IP) system would outweigh the bill’s many useful reforms.

The Administration continues to strongly support the passage of patent modernization legislation that improves patent quality and reduces litigation costs. In fact, the Administration agrees with many of the bill’s provisions— and believes that those provisions pertaining to applicant quality submissions are the only ones that serve to maximize quality in the U.S. IP system. The Administration will continue to work with Congress to enact legislation that will promote innovation throughout all sectors of the economy.

To access the letter in its entirety, go [here]. "

More Copyright Legislation Introduced in House

     A few weeks ago I posted "Congress and Copyrights: A Busy Legislative Year," in which I summarized three Congressional bills targeting copyright infringement/infringers:

  • The Intellectual Property Enhanced Criminal Enforcement Act of 2007 (H.R. 3155-IH),

  • The Intellectual Property Enforcement Act of 2007 (S.2317), and

  • The College Opportunity and Affordability Act of 2007 (H.R.4137). 

     Last week, Congress was at it again, with the introduction of yet more legislation amending the Copyright Act, as summarized below.

  • Prioritizing Resources and Organization for Intellectual Property ("PRO IP") Act of 2007

H.R.4279 was introduced in the House on December 5, 2007, by Rep. John Conyers (D-MI). The bill would, among other things, amend 17 U.S.C. § 410 by adding a new paragraph (c)(1): "A certificate of registration satisfies the requirements of section 411 and section 412 regardless of any inaccurate information contained in the certificate, unless (A) the inaccurate information was included on the application for copyright registration with knowledge that it was inaccurate; and (B) the inaccuracy of the information, if known, would have caused the Register of Copyrights to refuse registration." 

The bill would also amend § 504 as follows:

"(1) Except as provided by clause (2) of this subsection, the copyright owner may elect, at any time before final judgment is rendered, to recover, instead of actual damages and profits, an award of statutory damages for all infringements involved in the action, with respect to any one work, for which any one infringer is liable individually, or for which any two or more infringers are liable jointly and severally, in a sum of not less than $750 or more than $30,000 as the court considers just. [[For the purposes of this subsection, all the parts of a compilation or derivative work constitute one work.]] A copyright owner is entitled to recover statutory damages for each copyrighted work sued upon that is found to be infringed. The court may make either one or multiple awards of statutory damages with respect to infringement of a compilation, or of works that were lawfully included in a compilation, or a derivative work and any preexisting works upon which it is based. In making a decision on the awarding of such damages, the court may consider any facts it finds relevant relating to the infringed works and the infringing conduct, including whether the infringed works are distinct works having independent economic value."

Title III of the bill proposes to established within the Executive Office of the President the Office of the United States Intellectual Property Enforcement Representative, whose job it would be to serve as the principal adviser to the President on domestic and international intellectual property enforcement policy, among other things.

The bill would also require the Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office, in consultation with the Director General of the United States and Foreign Commercial Service, to appoint 10 intellectual property attaches to serve in United States embassies or other diplomatic missions. The 10 appointments shall be in addition to personnel serving in the capacity of intellectual property attache at United States embassies or other diplomatic missions on the date of the enactment of this Act.

Comments:

  • § 411 and § 412 deal with lawsuits for copyright infringement, so the new legislation would, ostensibly, prevent lawsuits being dismissed or adjudged in favor of defendants based on minor inaccuracies in author's copyright registrations.

  • The underlined section shown above would allow a court to make multiple damages awards for the infringement of a single "compilation," something not allowed under the current statute. A compilation is a work formed by the collection and assembling of preexisting materials or of data that are selected, coordinated, or arranged in such a way that the resulting work as a whole constitutes an original work of authorship. The term includes collective works. Databases are examples of compilations. Some of the tables of data on this blog would be examples of compilations, although the data on the tables (i.e., "facts") would not be protected.

  • The PRO IP bill has bi-partisan support:

Rep. Howard Berman [D-CA]
Rep. Steven Chabot [R-OH]
Rep. Steve Cohen [D-TN]
Rep. Tom Feeney [R-FL]
Rep. Robert Goodlatte [R-VA]
Rep. Darrell Issa [R-CA]
Rep. Sheila Jackson-Lee [D-TX]
Rep. Ric Keller [R-FL]
Rep. Adam Schiff [D-CA]
Rep. Lamar Smith [R-TX]
Rep. Robert Wexler [D-FL]

  • Status: referred to the House Committee on the Judiciary

Fourth Circuit Affirms Copyright Infringement Case Against NFL Licensees

Summary:  Seeking only minimal recognition for his Baltimore Ravens logo design, Baltimore amateur artist ends up seeking certiori from the Supreme Court in his copyright infringement case, winds up with no damages award


 

 

 

 

 

    

    

     So how much is an NFL franchise team logo worth? Just ask Frederick Bouchat, who sued the Baltimore Ravens and the National Football League Properties (NFLP) over their use and licensing of a logo that closely resembled a drawing Bouchat faxed the Ravens back in 1995. All Bouchat asked in return was a letter of recognition and an autographed helmet, a small reward from a team and League making millions in revenues at the time.

     After a lengthy bifurcated copyright infringement trial, the District Court for the District of Maryland found that the Ravens had infringed Bouchat's copyrighted work. The Court of Appeals for the Fourth Circuit affirmed the trial court decision. His damage award, however, was zero (and he's still waiting for his recognition letter and autographed helmet). Bouchat then sued the NFL's licensees, and won again. However, he was not so lucky when it came to seeking damages.

     Under 17 U.S.C. § 504(a)(1), a copyright owner may seek actual damages plus any additional profits of the infringer. Under 17 U.S.C. § 504(c)(1), an award of statutory damages may be made "in a sum of not less than $750 or more than $30,000."

     In this case, Bouchat had little actual damages (he was not making any products using the logo himself), so he sought profits from the Ravens and dozens of NFLP licensees who were selling myriad items containing the "Flying B" logo. The jury found that defendants' income from products containing the Flying B were attributed completely to factors other than the artwork itself, and therefore did not award Bouchat any damages. Moreover, Bouchat was not entitled to an award of statutory damages because he had not registered his copyrighted work before the Ravens' and licensees' infringing conduct began:

"Once NFLP designed and licensed the Flying B logo that infringed Bouchat's copyright, the liability of all of NFLP's licensees became a foregone conclusion.  Thus, we hold that a copyright owner may not obtain statutory damages from a licensee liable jointly and severally with a licensor when the licensor's first infringing act occurred before registration and was part of the same line of related infringements that included the licensee's offending act." 

Comments:

  • Something tells me that the recognition letter and helmet Bouchat requested were viewed by Ravens' lawyers as evidence or an admission of sorts that the Ravens were infringing. Would that "payment" have been later viewed as forming an implied license to use the logo?  Would Bouchat have sued anyway after receiving the thank you letter? No one can tell for sure, but it shows how damages-wary lawyers think about actions their clients make, even the smallest of gestures

  • The Copyright Act provides that no award of statutory damages shall be made for any infringement of copyright in an unpublished work commenced before the effective data of its registration. Lesson learned: even if you're an amateur artist, don't forget to register your work with the Copyright Office (electronic registration costs are minimal) in order to seek statutory damages; you just never know when and where your work will wind up being used

  • NFLP's use of the logo generated over $2.6 million in gross revenues from June 1996 through March 31, 1999 (after that date, the logo was no longer used)

  • Cites: Bouchart v. Baltimore Ravens, Inc., 228 F.3d 489 (4th Cir. 2000), cert. denied, 532 U.S. 1038 (2001) (Bouchart I); Bouchat v. K-Mart Corporation, No. 01 Civ.1996-1-MJG (4th Cir. Oct. 17, 2007)

  • Howard Schulman, of Shulman & Kaufman, LLC, Baltimore, MD, argued for Appellant Bouchart.  Defendants-Appellees were represented by White & Case and Hogan & Hartson LLP of Baltimore, MD