

BOOKS A TO Z
COPYRIGHT NEWS
Matthew D. Marquardt, Editor
Articles:
House Hears Testimony on Bill to Enact WIPO Copyright Treaties
Copyright Invalidated by Unauthorized Use of Olympic Rings
Costumes Based on Copyrighted Cartoon Characters Not Protectable as Derivative Works
Third Copyright Term Extention Bill Introduced in House
No Infringement Following Oral Agreement for use of Baseball Song
Europe Takes Lead in Database Protection
Similarity of Action Characters Not to be Judged through Detailed Dissection
Changes to Legal Opinions Too Trivial to Protect
Fair Use for News not Automatic
No Fair Use for "The Cat NOT in the Hat!"
Wedding Dresses Protected Under Copyright Theory
Russian Newspapers Protected by US Law Under Berne Convention
Check Endorsement Qualifies as Writing in Work-for-Hire Arrangement
Fogarty Case Invoked in Attorneys' Fee Award
Record Pirate Ordered to Pay Restitution
WIPO Copyright Treaties Adopted
Copyright Exception Becomes Law
Federal Appeals Court Reiterates Finding of Copying in RAM Loading
House Hears Testimony on Bill to Enact WIPO Copyright Treaties
The House of Representatives heard testimony on September 16 and 17 on a bill (HR
2281, introduced by Representative Coble) intended to implement two Copyright treaties signed
by the United States in Geneva last year. The treaties, sponsored by the World Intellectual
Property Organization, are meant to improve protections for computer programs and recordings.
Most of the provisions covered by the treaties are already covered by U.S. law; however,
legislation would be required to protect individuals against technologies designed to defeat
encoded copyright protection systems such as those widely used on computer networks. Debates
center on the necessity for additional fair use provisions, piracy, and the immediacy of the need
for changes. No date has been set for a committee vote.
Sources: BNA's Patent, Trademark & Copyright Journal, 9/18/97
Copyright Invalidated by Unauthorized Use of Olympic Rings
The U.S. District Court for Northern Illinois on July 8 dismissed copyright infringement
claims brought by a t-shirt designer whose design incorporated, without authorization, the
Olympic ring symbol. The plaintiff attempted to sell the design to a clothing distributor but was
rejected. When the same distributor later began selling shirts bearing a generally similar design,
the lawsuit ensued. The court found that the shirts were not entitled to protection under section
103(a) of the Copyright Act because copyright does not extend to any part of a derivative work
in which preexisting copyrighted material is used unlawfully. While the Olympic rings are not
copyrighted, they are protected under 36 USC 380 by what the Supreme Court has described
as "more than a normal trademark." The court took this to be sufficient. The ruling was
bolstered by a finding that the similarities between the t-shirts were in any case limited to
unprotectable elements. In other words, the scope of any copyright which could have existed
was insufficient to support an infringement finding.
Sources: BNA's Patent, Trademark & Copyright Journal, 8/28/97
Costumes Based on Copyrighted Cartoon Characters Not Protectable as Derivative Works
The U.S. Ninth Circuit Court of Appeals, which oversees lawsuits brought in much of
the western United States, affirmed on August 18 a summary judgment finding by the U.S.
District Court for Northern California that inflatable costumes representing copyrighted two-dimensional cartoon figures lack sufficient originality over the original characters to merit
separate copyright protection as derivative works. Adopting the reason of the (east coast)
Second Circuit's ruling in Durham Industries Inc. v. Tomy Corp., the court explained that in order
to warrant derivative protection the original aspects of the new work must (1) be more than
trivial and (2) reflect the degree of the derivative work's reliance on the original underlying work.
In the case at issue, the court found that the differences were either functional -- and therefore
not susceptible of copyright protection -- or trivial.
Plaintiff Entertainment Research Group, which manufactures inflatable costumes used
for publicity events, sued a former customer who turned to a third party for costumes after their
business relationship deteriorated. At least some of the ultimate customers for the costumes were
the owners of the copyrights for the characters upon which the costumes were based.
Sources: BNA's Patent, Trademark & Copyright Journal, 8/28/97
Third Copyright Term Extention Bill Introduced in House
Representative Sonny Bono (R-Cal.) on May 15 introduced to Congress a third bill aimed at
extending most copyright terms by twenty years. This bill, HR1621, joins bills HR 604 and S 505 in
aiming to amend sections 301 and 302 of the copyright act to change copyright terms for most authors
to life plus 70 years and to extend minimum terms of pre Feb. 1972 sound recordings. All three bills
also call for amendment of section 108 of the Copyright Act to permit copying and distributions of
works by libraries, archives, and non-profit educational organizations during the last 20 years of the
copyright term.
Sources: BNA's Patent, Trademark & Copyright Journal, 5/22/97; HR 1621, HR 604, S 505.
No Infringement Following Oral Agreement for use of Baseball Song
The Eleventh Circuit Court of Appeals, which reviews cases arising in the Southeastern United
States, ruled April 18 that an oral agreement to allow the playing of a song recording may be inferred
to create a non-exclusive license to use the work, despite the expressed intention of the parties -- who
in this case apparently tried to create an exclusive license contrary to the provisions of sections 204 and
101 of the Copyright Act, which provide that such licenses must be made in writing. Declining to
accept a minor league baseball team's assertion that the agreement failed under the Copyright Act to
give rise to any license whatsoever and that the playing of the song by the baseball team's operators
therefore constituted infringement, the court instead found that it had "no choice but to look at
alternatives beyond the parties' intended arrangement" and salvage as much of the parties intent as
possible, consistent with the law. Finding that in making the oral agreement the writer of the song,
which was intended to serve as the team's theme, waived the right to sue for infringment, but retained
his rights under state contract law to agreed compensation, the trial court dismissed the the copyright
claim and sent the case to state court. The Eleventh Circuit affirmed.
Sources: BNA's Patent, Trademark & Copyright Journal, 5/15/97; Jacob Maxwell, Inc. v. Veeck (CA 11 No. 96-2636),
Europe Takes Lead in Database Protection
With national enactment of legislation implementing the Directive governing protection of
infromation databases adopted by the European Parliament in 1996 due no later than January 1 of next
year in each of its 15 member nations, the Eurpoean Union has taken the world lead in database
protection -- a step which could give it a significant advantage in the next stage of the information
revolution. Legislation required by the Directive must give onwers of collections of "independent works,
data, or other materials arranged in a systematid or methodical way and individually accessible by
electronic or other means" the right to stop unauthorized "extraction" or "re-utilization" of "substantial"
portions of the works. By extending protection to factual works solely on the basis of the effort required
to put them together, the Directive moves beyond traditional patent and trademark law without the
limitations imposed by trade secrecy requirements. From the point of view of American companies, a
major drawback of the Directive is that it extends protection only to nationals of EU states or those
having "habitual residence" there.
Thus far the United States has resisted the move toward database protection. The Supreme
Court case of Feist Publications v. Rural Telephone Service Co. put databases outside the scope of
copyright protection, and a database protection bill died in Congress last session, without thus far
having been reintroduced. And at the WIPO copyright conference last winter, which produced new
agreements on protection of works on the internet and in other electronic media, the United States
delegation staunchly opposed and defeated adoption of a database treaty.
Source: National Law Journal, 6/9/97.
Similarity of Action Characters Not to be Judged through Detailed Dissection
The test for similarity between screenplays centered on allegedly similar characters is not a
detailed analysis of the characters' traits, but a review of the total concept and "feel" of the shows,
including their characters, themes, plots, sequences, paces, and settings, ruled the United States District
Court for Southern New York on April 10. The court refused to grant summary judgment to CBS
on the alleged dissimilarity of the characters in the movie McQuade and the television show Walker:
Texas Ranger. CBS had claimed that the main characters, both played by actor Chuck Norris, were
similar only in a number of unprotected traits -- their "maverick" devotion to justice, their mistrust and
avoidance of authority, their employment, their use of martial arts, their dress, and their vehicles,
among others -- but were dissimilar in more important ways -- e.g., the cleanliness of their jeans and
vehicles.
The infringement claims were dismissed, however, on the basis of a retroactive licence granted
to CBS in settlement by one of the plaintiffs.
Sources: BNA's Patent, Trademark & Copyright Journal, 5/22/97; Lone Wolf McQuade Assoc. v. CBS Inc.
Changes to Legal Opinions Too Trivial to Protect
The US District Court for the Southern District of New York ruled May 19 that the addition
of page numbers, attorney names, parallel citations, spelling and grammar corrections, and the
abbreviatioin of case titles in legal decisions published by the West Publishing Company do not rise to
protectable levels as derivatives of works created originally by the US government. Hyperlaw, Inc., a
publisher of CD-ROM legal products, sought the ruling in a declaratory judgment action preparatory
to extensive scanning of the West database. In making the ruling the court obviated the necessity of
ruling on fair use and copyright notice issues, but hinted that West's failure to give notice of what it
considered to be protectable portions of its decisions would weigh in favor of an accused defender under
the doctrine of fair use. Section 403 of the Copyright Act requires that publishers of marterials
consisting primarily of US government material must give notice in the published word of what they
consider protectable.
In a previous ruling in the same case the court had found West's addition of page numbers to
be unprotectable also.
It was not clear whether West would appeal the decision.
Source: BNA's Patent, Trademark & Copyright Journal, 5/22/97; Matthew Bender & Co. v. West Publishing.
Fair Use for News not Automatic
The Ninth Circuit Court of Appeals, which oversees federal appeals for most of the Western
United States, ruled March 11 that an unauthorized, unattributed use of a videotape of the Reginald
Denny beating on a news broadcast did not qualify under the fair use exception to copyright
infringement. Plaintiff Los Angeles New Service made the tape during riots following the Rodney
King police beating verdict. Defendant KCAL was denied a license to use the tape, but obtained a
copy from another source and used it anyway, stating later that the tape was a "unique and newsworthy
videotape of significant public interest." The court disagreed, denying KCAL summary judgement on
the exception and noting that KCAL failed to show that alternatives to the use of the tape did not
exist, and that KCAL failed to attribute the tape to the copyright owner.
Source: National Law Journal 3/31/97
No Fair Use for "The Cat NOT in the Hat!"
The Ninth Circuit Court of Appeals ruled March 27 that a Seussian satire of the O.J.
Simpson trial, written in a poetic style reminiscent of the late Theodore Geisel and featuring
numerous renditions of the red-and-white banded top hat of the Cat in the Hat, was not entitled to
a parody fair use exception for its borrowings from the great opus for children. While acknowledging
that the work did broadly mimic the Seuss work, the court found that the actual parodic target of the
work was not Geisel or his work but the Simpson trial, and that the parody exception therefore could
not apply. The Court drew a distinction between parody, which it sees as targeting the copied work,
and satire, which uses the copied work as a vehicle for commentary on other subjects.
The case also included affirmation of a preliminary injunction granted by the district court on
the basis of a trademark infringement claim. The court described parody not as a separate defense
to trademark infringement, but as an alternative way of describing a lack of likelihood of confusion.
The Ninth Circuit is one of the nation's most influential copyright courts, overseeing as it does
cases arising in Los Angeles and other major western centers.
Sources: National Law Journal; BNA's Patent, Trademark & Copyright Journal, 4/3/97
Wedding Dresses Protected Under Copyright Theory
The United States District Court for Southern New York ruled on March 19 that while
clothing as such is not copyrightable, the design of fabric used in the making of the clothing may be
protectable, and the protection of the protected fabric may extend to injunctions against further
manufacturing and sale of the clothing into which it has been fashioned. The case involved
competition in the wedding dress industry. Eve of Milady, Inc., which produces "limited editions" of
high-end wedding dresses, noticed shortly after it began marketing of one of its new designs that
competitor Impression Bridal, Inc., was marketing very similar dresses, and a lawsuit ensued.
In finding copyright infringement, Judge Scheindlin of the District Court noted that "The use
of lace designs in a bridal gown will garner careful scrutiny by the bride who purchases and
subsequently wears the gown, both at the wedding ceremony and in photographs memorializing the
nuptials..." It appears from the opinion, however, that the court actually relied on the overall
similarity of the dresses as well as underlying protected lace: "The similarity extends to the designs of
the laces, as well as to the placement of the lace designs on the dress. It is unlikely that a consumer
or retailer would discern any sufficiently qualitative differences between the dresses... Therefore, I find
that plaintiffs have demonstrated similarities that are probative of copying by defendants of plaintiff's
bridal dresses..."
It was not immediately clear whether the case would be appealed.
Sources: National Law Journal 4/7/97; BNA's Patent, Trademark & Copyright Journal, 4/17/97
Russian Newspapers Protected by US Law Under Berne Convention
The United States District Court for Southern New York ruled March 10 that several
Russian news groups were entitled under the Berne Convention to protection in the United States
for works registered in Russia but not in the United States. The news groups sued a US Russian-
language paper that repeatedly copied and distributed cut-out-and-pasted articles from their papers and
were granted a TRO and a preliminary injunction prohibiting further copying. The case also involved
the deciding of several questions of Russian law, none of which have yet been tested by Russian courts,
including work-for-hire provisions.
Source: BNA's Patent, Trademark & Copyright Journal, 4/3/97
Check Endorsement Qualifies as Writing in Work-for-Hire Arrangement
The United States Second Circuit Court of Appeals ruled March 25 that check
endorsements may serve as writings for the creation of a work-for-hire arrangement under section 101
of the Copyright Act of 1976. Playboy Enterprises, Inc., placed writing on the backs of checks issued
to artist Patrick Nagel, stating that endorsement of the checks signified the consent of the signor to
a work-for-hire contract. Nagel himself signed many of the checks, with others being signed on his
behalf by others. Each of the works covered by checks signed by Nagel were declared to be works-for-
hire, but the status of the remainder was held for consideration on remand to the District Court.
The court indicated that if the signors of those checks were authorized to enter contracts on Nagel's
behalf, those paintings too should be considered works for hire.
The appeals court also indicated that in at least some circumstances under the previous
copyright act (in effect until 1978) the course of dealing between the parties might determine whether
works were made for hire in the absence of a written agreement.
Source: BNA's Patent, Trademark & Copyright Journal, 4/10/97
Fogarty Case Invoked in Attorneys' Fee Award
The United States First Circuit Court of Appeals on March 28 used the famous John
Fogarty Supreme Court case to overturn a lower court ruling and impose an attorneys' fee award
against a plaintiff it found to have unreasonably filed a copyright infringement suit. The Appeals
court found that the trial court had focused too narrowly on "frivolity", and had overlooked the Fogarty
case's instructions to treat plaintiffs and defendants equally and to consider other factors. The court
described the suit as "inescapably highly unreasonable, if not frivolous."
Source: BNA's Patent, Trademark & Copyright Journal, 4/3/97
Record Pirate Ordered to Pay Restitution
A California appeals court in March affirmed a criminal court ruling ordering a man to pay
restitution to the Association of Latin American Record Manufacturers, a non-profit organization
providing coordination and assistance to Latin record producers, for the piracy of over 50,000 cassette
tape recordings. The restitution was to be received on behalf of the companies represented by the
Association. The man had argued that the Association had no standing under state law as a direct
victim of the crime to receive restitution, but the court disagreed, saying that if the Association could
serve as a representative of the record companies in enforcing copyrights it could receive their
restitution as well.
Source: BNA's Patent, Trademark & Copyright Journal, 4/3/97
Sharp US Debate Expected Over Ratification
of WIPO Digital Copyright
Treaties
Bitter and protracted debate is expected in the US in the wake of adoption by the
World Intellectual Property Organization (WIPO) of a pair of treaties designed to bring
worldwide copyright laws into line with electronic reality, as Congress moves to ratify the
treaties and adopt conformal legislation enacting the treaties' terms.
The two treaties -- the WIPO Copyright Treaty and the WIPO Performances and
Phonograms Treaty -- were adopted December 21, 1996, after weeks of intense negotiation,
and are expected to pitch Internet Service Providers, the public, copyright owners, and
publishers into fierce argument over ratification and enactment of conformal laws. Between
them, the treaties would require the establishment and protection, at the national level, of a
new right of communicating works to the public; enactment of measures to outlaw
technologies used to defeat copy protection; and the extension of the definition of fair use to
fit the electronic environment.
A particularly controversial issue left by the treaties to resolution at the national level
is the question whether temporary storage of digital copies, such as storage in computer
RAM, caching, and Internet browsing, will infringe reproduction rights -- and if so what the
liabilities for infringing acts of, among others, ISP's should be.
A third and more controversial treaty, the WIPO Treaty in Respect of Databases, was
left in draft stage and set aside for future WIPO negotiations. As currently drafted, the treaty
would create rights to data as such when included in databases.
The Copyright Treaty would include computer programs in the definition of literary
works, would protect data compilations (but not the data itself), and would give authors the
exclusive right to control posting of works on Web sites.
The Performances and Phonogram Treaty would create "moral rights" to fixed and
live performances, and would grant rights for performers as well as to performances for fixed
audiovisual performances.
In the US, it is expected that copyright owners will push for expanded protection for
their digital works, while Internet service providers will seek specific exemptions to keep
them from being forced to underwrite the infringing acts of their customers and users.
Consumer groups will insist that fair use issues be settled in such manner as to allow limited
downloading and use of electronically posted works. (2/97. Sources: National Law Review,
AIPLA Washington Newsletter, Library of Congress Website, WIPO Website)
Copyright Exception Becomes Law
Deep within an appropriations bill passed last summer by Congress and signed into
law sometime thereafter by President Clinton lay language adding a new section to the
Copyright Act. New section 121 provides that "it is not an infringement of copyright for an
authorized entity to reproduce or to distribute copies or phono records of a previously
published, nondramatic literary work if such copies or phonorecords are reproduced or
distributed in specialized formats exclusively for use by blind or other persons with
disabilities." "Authorized entity" is defined by the bill to included nonprofit or governmental
organizations having "a primary mission to provide specialized services relating to training,
education, or adaptive reading or information access needs of blind or other persons with
disabilities." "Specialized formats" means "braille, audio, or digital text which is exclusively
for use by blind or other persons with disabilities."
The bill makes no provisions for safeguards for publishers who wish to serve disabled
persons themselves, such as, for instance, a waiting period to allow the copyright owner time
to serve those markets itself. The bill was introduced in the Senate by senator Chafee.
(1/7/97)
Federal Appeals Court Reiterates Finding of
Copying in RAM Loading
The Federal Ninth Circuit Court of Appeals, which reviews district court decisions for
most of the western United States, recently reaffirmed its 1993 ruling that the loading of a
computer program into a computer RAM may constitute the making of a "copy" within the
meaning of the Copyright Act. In the same ruling, the Appeals Court decided that the use of
such a "copy" in competition with the owner of the "copied" program may not qualify as fair
use under the statute. (1/7/97)
The Editor
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