ࡱ> @ "bjbjFF +,,qmTTTTTTTh8hx :   !-( 9*TVVVVVV$RPz9TA+!!A+A+zTT  =_=_=_A+4T T =_A+T=_=_ TT  R.u:|!<ɵ0B\7[7xhhTTTT7TA+A+=_A+A+A+A+A+zzhhD [Lhh ENTERTAINMENT LAW LOYOLA LAW SCHOOL PROF. JAY DOUGHERTY 2004 FALL  TOC \o "1-1" \u  ENTERTAINMENT LAW  PAGEREF _Toc91308409 \h 1 LOYOLA LAW SCHOOL  PAGEREF _Toc91308410 \h 1 I. INTRODUCTION  PAGEREF _Toc91308411 \h 4 II. SOCIETY & ENTERTAINMENT  PAGEREF _Toc91308412 \h 6 III. ENTERTAINMENT LAW PRACTICE:  PAGEREF _Toc91308413 \h 6 IV. TALENT REPRESENTATIVES--  PAGEREF _Toc91308414 \h 9 V. FIDUCIARY DUTY  PAGEREF _Toc91308415 \h 15 TALENT CONTRACTS  PAGEREF _Toc91308416 \h 17 I. TALENT CONTRACTS--FORMATION  PAGEREF _Toc91308417 \h 18 II. TALENT CONTRACTSFORMATION: WRITTEN vs. ORAL AGREEMENTS  PAGEREF _Toc91308418 \h 18 III. BASSINGER -- enforcement of oral agreement.  PAGEREF _Toc91308419 \h 18 IV. PAMELA ANDERSON LEE -- similar case, different outcome.  PAGEREF _Toc91308420 \h 19 V. CONTRACTSSOME CASES WHERE WRITING REQUIRED  PAGEREF _Toc91308421 \h 19 VI. TALENT CONTRACTSFORMATION: CAPACITY TO CONTRACT  PAGEREF _Toc91308422 \h 20 VII. TALENT CONTRACTSWORKING WITH CONTRACTS  PAGEREF _Toc91308423 \h 21 VIII. CONTRACT INTERPRETATIONNEW MEDIA  PAGEREF _Toc91308424 \h 22 IX. CONTRACTSVAGUENESS/INDEFINITENESS  PAGEREF _Toc91308425 \h 23 X. CONTRACT INTERPRETATIONIMPLICATION OF TERMS  PAGEREF _Toc91308426 \h 24 XI. TALENT CONTRACTS--TERMINATION/BREACH  PAGEREF _Toc91308427 \h 24 XII. Talent contracts--durational limits  PAGEREF _Toc91308428 \h 26 XIII. CONFLICTS OF LAW  PAGEREF _Toc91308429 \h 26 XIV. CALIFORNIA 7-YEAR RULE: MID-TERM RENEGOTIATIONS  PAGEREF _Toc91308430 \h 27 XV. TALENT CONTRACTS--OTHER LIMITS ON ENFORCEMENT  PAGEREF _Toc91308431 \h 27 XVI. DAMAGES FOR BREACH OF CONTRACT  PAGEREF _Toc91308432 \h 29 XVII. BANKRUPTCY  PAGEREF _Toc91308433 \h 31 PERSONAL RIGHTS  PAGEREF _Toc91308434 \h 32 I. DEFAMATION--TOPICS  PAGEREF _Toc91308435 \h 32 RIGHTS OF PRIVACY  PAGEREF _Toc91308436 \h 36 I. In General --  PAGEREF _Toc91308437 \h 36 II. FALSE LIGHT--  PAGEREF _Toc91308438 \h 36 III. PUBLIC DISCLOSURE--  PAGEREF _Toc91308439 \h 38 IV. INTRUSION--  PAGEREF _Toc91308440 \h 39 V. COMMERCIAL APPROPRIATION PRIVACY--  PAGEREF _Toc91308441 \h 40 VI. RIGHT OF PUBLICITY  PAGEREF _Toc91308442 \h 40 COPYRIGHT  PAGEREF _Toc91308443 \h 46 I. COPYRIGHT--SUBJECT MATTER  PAGEREF _Toc91308444 \h 46 II. COPYRIGHT--INFRINGEMENT  PAGEREF _Toc91308445 \h 47 III. In General--  PAGEREF _Toc91308446 \h 47 IV. COPYRIGHTIDEAS/CHARACTERS  PAGEREF _Toc91308447 \h 48 V. COPYRIGHTGRANT FORMALITIES  PAGEREF _Toc91308448 \h 48 IDEA PROTECTION  PAGEREF _Toc91308449 \h 49 I. IDEA PROTECTION--TOPICS  PAGEREF _Toc91308450 \h 49 II. IDEAS--CONTRACT PROTECTION  PAGEREF _Toc91308451 \h 49 III. CHARACTERISTICS BY JX  PAGEREF _Toc91308452 \h 51 IV. IDEAS--CONFIDENTIALITY -- two bases:  PAGEREF _Toc91308453 \h 52 V. PREEMPTION OF IDEA PROTECTION CLAIMS BY FEDERAL LAW  PAGEREF _Toc91308454 \h 52 TRADEMARKS, LANHAM ACT (ISC) & UNFAIR COMPETITION  PAGEREF _Toc91308455 \h 53 I. UNFAIR COMPETITION & TRADEMARKS--DISTINCTIONS  PAGEREF _Toc91308456 \h 53 II. TRADEMARK INFRINGEMENT--  PAGEREF _Toc91308457 \h 53 III. (STRENGTH)  PAGEREF _Toc91308458 \h 54 IV. SECONDARY MEANING  PAGEREF _Toc91308459 \h 54 V. INFRINGEMENT  PAGEREF _Toc91308460 \h 55 VI. TRADEMARK DILUTION  PAGEREF _Toc91308461 \h 57 VII. TRADEMARKSPROTECTING CELEBRITY IDENTITY  PAGEREF _Toc91308462 \h 57 VIII. TRADEMARKSSOME DEFENSESFAIR USE  PAGEREF _Toc91308463 \h 58 IX. TRADEMARKFIRST AMENDMENT  PAGEREF _Toc91308464 \h 59 X. FIRST AMENDMENT DEFENSE RE TITLES:  PAGEREF _Toc91308465 \h 59 CREDITS  PAGEREF _Toc91308466 \h 59 I. IN GENERAL  PAGEREF _Toc91308467 \h 59 II. CREDIT--INDIVIDUAL CONTRACTS  PAGEREF _Toc91308468 \h 60 III. CREDITS--COLLECTIVE BARGAINING AGREEMENTS  PAGEREF _Toc91308469 \h 61 IV. CREDITS--STATUTE/COMMON LAW  PAGEREF _Toc91308470 \h 61 V. CONTENT CONTROL  PAGEREF _Toc91308471 \h 63 VI. RIGHT OF PRIVACY/PUBLICITY & FALSITY/ACTUAL MALICE  PAGEREF _Toc91308472 \h 65 VII. FIRST AMENDMENT--GENERAL  PAGEREF _Toc91308473 \h 65  INTRODUCTION WHAT IS ENTERTAINMENT LAW? Representing Clients In The Various Entertainment Industries Entertainment Industry Structure Know Your Clients Business WHAT DO ENTERTAINMENT LAWYERS DO? Charm, Schmooze & Relationships Negotiating, Drafting Skill Knowledge Of The Law And Legal Methods What Substantive Law Is Applicable? ENTERTAINMENT INDUSTRY STRUCTURE Creators (E.G., Songwriters, Recording Artists, Writers, Actors, Directors, Etc.) Producers (Assemble Rights, Services, Financing, Distribution; Manage Production) Financiers (E.G., Small Investors, Banks, Distributors, Exhibitors) Distributors Marketing--Advertising & Publicity Retail Exhibitors, Tv, Radio Stations, Stores Websites Trends Conglomeration Companies and many businesses. example fox entertainment; studio/tv/publishing/fox broadcasting/fox news/fx/harpercollins/satellite tv/sunday newspaper coupons. Example viacom. Paramount/upn/nickelodeon/simon & schuster Creates a more balanced portfolio. Safer/balanced. Globalization Income stream is increasingly outside "domestic territory". Immigration/comparative law/labor law Technological change--media, distribution channels, convergence Legal: Large & Medium Firms, Boutiques, Solo Practice Litigation as training for transaction Music Publishing Music publishers (e.g. Warner-chappell, universal music, sony music) Performing rights societies (ascap, bmi, sesac). Licensee-side: music reports, inc. National music publishers assn (nmpa) Harry fox agencymechanical licenses Assn of independent music publishers (aimp) RECORDS Record Companies -- Overall, Record Sales Down As Much As 30% (Europe). Universal, Wea (bought by bronfman), Capitol/emi, Sony, Bertelsman music group (bmg)(merging with sony) Both production & distribution Trade Associations Riaa (lobby group), soundexchange Unions American federation of musicians (afm) Aftra Retail: Record Stores, Radio, Internet (Musicnet, Pressplay), Cable, Satellite TELEVISION Production Companies--1995 federal law change: eliminates rules against syndication and production by the same company Network production Film studios Independents, eg carsey-werner, granada, lions gate Shift From "Deficit Financing" Paradigm Which Was Dependent On Syndication. Networks Can Now On Syndication And Production. Reality Shows -- Cheaper But No Backend. Networks -- Provides Programming For Affiliates For A License The Or The Right To Advertise. Abc (disney), Cbs (viacom), nbc (universal), Fbc, Wb, Upn, Fx, Espn & other sports n/ws Pay Tv: Hbo (Time-Warner), Showtime (Viacom) Stations & Station Groups Trade Association: Nab MOTION PICTURES Studios (Function As Producers, Financiers, Distributors, Marketers): Warner Bros., Paramount (Viacom), Sony, Fox, Disney, Universal, Mgm Independents/Quasi-Independents; Eg Dreamworks, Miramax, New Line Maybe closely involved with studios -- providing product. Trade Assns: Mpaa, Afma -- Industry lobbyists/antipiracy advocates UNIONS (FILM/TV) Wga, Dga, Sag, Aftra, Afm, Iatse TALENT AGENCIES Eg William Morris Agency (Wma), Creative Artists Agency (Caa), International Creative Management(Icm), Endeavor, Uta MANAGEMENT COMPANIES Eg The Firm (Absorbed Amg) SOCIETY & ENTERTAINMENT FIRST AMENDMENT. SOCIETY V. WORKS OF ART. WHY MOVIES? WHY A CONFLICT? Circa 1911 Before Photographs Were Considered Protected, Early Edison Movies Showed "Kiss Clips". "Doloritas fashion dance." belly dancing/banned. Sex Sells The New Technology But Is Objectionable To Many. States And Cities Passed Legislation. In Response, Films Try To Self Regulate. Internal industry code. BURSTYN Case. Italian film in which a simple woman sleeps with a bum (fellini) because she thinks he is st. Joseph. Film is denied a license to be shown because of sacrilege. This is "prior restraint." An earlier case, Mutual Film Corp, applied ohio constitution, defining film is a commercial product not protected as freedom of the press or freedom of speech. Arguments to regulate: Film is a commercial product; "entertainment" not information; Salacious medium. "captive audience." Public safety. Counter arguments: Commercial nature of the product is not a reason to regulate. New york times v. Sullivan. ENTERTAINMENT LAW PRACTICE: WHAT DO ENTERTAINMENT LAWYERS DO? Counseling Clients Transactional: Business Deal Structure Advice Re: Potential Claims Avoiding Potential Claims Obtaining Rights Recommending Changes To Reduce Risk Contracts: Rights Contracts to obtain rights to properties Services Employment contracts Financing Contracts to secure financing Drafting Negotiation Interpretation (counseling) Advocating--Handling Disputes, Including LitigationIncreasing Use Of Adr WHAT ENTERTAINMENT LAWYERS CANNOT DO Attorneys Are Not Allowed To Seek Or Procure Employment For Their Clients. SUBSTANTIVE ENTERTAINMENT LAW Potentially, Very Broad Specific Regulations E.g. Regulation of agents Contract Law: Formation, Interpretation, Performance/Breach; Limitations On Remedies Personal Rights, Eg defamation, privacy, publicity? Intellectual Property/Business Torts: Copyright, trademarks, unfair competition, ideas? Collective Bargaining Agreements/Labor Law Credit Issues (Involve Combination Of The Above) Employment Law First Amendment--Limitations On Regulation Of Speech Antitrust Law, Corporate Law, Taxation, Etc LEGAL METHOD 5 Types Of Legal Argument Text Plain meaning; definitions Intent In a contract -- Intent of the parties Previous versions (parol) Drafting histories Official comments Contemporary commentary To fight against the plain meaning -- attack the meaning. Precedent -- common-law mainstay Attack by use of "dictum". Distinguish on facts/distinguish for policy Overrule because of bad precedent Custom/tradition No supporting tradition Counter tradition Social policy Predicts consequences Evaluates consequences (economic inefficiency arguments -- posner) Contra: prediction in accurate, purpose is wrong, weak policy, conflicting policy. Perhaps Strongest Arguments Use Multiple Strands To Support The Claim STATUTORY INTERPRETATION Legislative Intent: Thats What Courts Attempt To Discern Problem: what does that mean, and is there really such a thing? Various approaches among courts; sometimes courts use a combination Counseling Make clients aware of ambiguities, possible alternate interpretations affecting outcome Litigation Research particular courts approach; or Make arguments under as many approaches as possible Appellate Review Of Question Of Law Is De Novo Selected Approaches Plain meaning except when it would produce an injustice or ridiculous result (aka golden rule) If statute ambiguous, use other techniques, e.g. Legislative history Soft plain meaninguse plain meaning unless theres a convincing argument using other interpretive approaches that legislature intended otherwise Purpose approachconsider what wrong the legislature was concerned with and interpret statute to address that wrong. Contextualism approachconsider what was going on at the time of passage to determine purpose or meaning of terms. Textualismfocus on only the text (use dictionary?), rejects legislative history (scalia/thomas) Judicial glossjudges sometimes add information/meaning to a statute Canons or presumptions of interpretation E. G. ejusdem generis (general term limited by the specific terms listed before it); expressio unius est exclussio alterius (inclusion of a specific term shows intent not to include others not expressly stated; i.e. A form of negative implication) TALENT REPRESENTATIVES-- ROLES Attorney--Protects Legal Interests, Gives Legal Advice Agent--Seeks Or Procures Employment, Structures & Negotiates Deals Personal Manager--Career Advice, From Daily Management To Strategic Career Development Business Manager--Handles Money Once Earned In Reality, Roles Overlap TALENT REPS--AGENTS State Law Regulation--Person Who Procures Or Seeks To Procure Employment Multiple Layers Of Regulation. California labor code--talent agents act--occupation Agents--state regulation--california talent agency act talent agency requires license. Cal.labor code 1700.5 Occupation of procuring or attempting to procure employment or engagements Contract between artist and unlicensed talent agent is void. BUCHWALD. Deftones. EXEMPTION FOR PROCURING RECORDING CONTRACTS 1700.4 Exception for manager, etc. Acting in conjunction with, and at the request of licensed agency. 1700.44(d). Manager may be required to repay all commissions from inception. No exception for incidental procurement. WACHS SUGGESTED MIGHT BE A CENTER OF GRAVITY APPROACH PERMITTING INCIDENTAL PROCUREMENT CHURCH NARROWED, LATER CASES REJECTED. WAISBREN, DEFTONES. No maximum fees, but approval over form agreements In practice, the state labor board won't agree to over 10%. Violation of act not criminal 1700.44(b) Labor commissioner has initial jurisdiction re disputes 1700.44(a) Ny gen.business law Agents--state regulation--n.y. General business law Employment agency requires license NO SPECIAL CARVE OUT FOR SEEKING RECORD DEALS, WHERE NOT DONE INCIDENTALLY BY A MANAGER. SEE PINE. Exclusion for managers who incidentally seek employment. 171(8) If activities limited to career development, license not required. See MANDEL. Criminal penalties -- misdemeanor COURTS HEAR CLAIMS re UNLICENSED AGENTS Limits fees to 10%. 185(8) Union Regulation Union franchise agrmt. Regulates agents Franchise agreement limits commissions to 10%. No commission on pension and health. Limits conflicts of interest between the agency and the artist. Example: if the agency was a producer, their interest would be in conflict with trying to get their client the most money possible. Does not violate anti-trust law (labor exemption). H.a. Artists Members agree not to use non-franchised agent The franchise agreement has expired. Everyone is working as though it is still enforce. Agencies want to commission all work as managers can. Agencies want to be able to become producers. Managers procure work for actors, making agents obsolete. Huge Note: All Cases Brought Under The Talent Agencies Act Must Be Brought Before The Commissioner Of Labor Initially. All Regulatory How It Is Must Be Exhausted Before Resorting To The Courts. Styne V. Stevens. Ring V. Spina -- Dramatists Guild Case. Distinguish From Screen Actors Guild Or Other Labor Unions. Here, author owns the copyright. Changes cannot be made without permission. it is a license not purchase. Producer gets a share, but not control of the movie rights. Playwright gets a percentage of the gross. This has been changed because investors may not get paid with the playwright on gross receipts. Producer challenges the "minimum basic agreement" as an agreement in restraint of trade. Appellate court: yes, agreement is in restraint of trade. Not covered by the labor union exemption because the playwright is not an employee. Court threatens to strike down the structure. This led to change. Agreement between producer and author is now the approved production contract. Grammer V. Artists Agency MANAGERS -- MANAGEMENT DEALS. Deal Terms: Role of manager -- define services to be provided; Term --1-7 years; Percentage (15 --25%); Definition of "gross income"; Exclusions from gross income; Continuing commissions after end of term: Manager -- "i helped to get that deal." Songwriter: "my continued successes because of my career." Sunset clause. Contractual power: Manager: option to renew. Artists: performance benchmarks for career -- if benchmarks are not made, contract may be terminated. "Form Contract." Dougherty At Fox. Form contract for every occasion. Same initial draft for consistency leads to consistency in negotiated changes. Forms subject to constant revision. "Standard terms and conditions." But everything is negotiable. Example: minor's contract approved by court. Outside counsel looks at form. "waving right to injunctive relief" clause. Dougherty asks the meaning of the term; counsel says that they "don't know." Lesson: read the whole contract and no the meaning of all terms. Hypo Re: Meaning Of "Gross Income." 200 k. Advance. Artist pays recording from advance. (Recording company wants highest number of albums. Artist wants highest percentage of royalties.) Management agreement form Paragraph 3 (b) (i) carves out "sums actually paid to unrelated third parties for recording costs". Look for capitalization of defined terms in a contract. "without limitation" delimits the clause -- "among other things" "but not limited to". Anything that "flows through" is not considered commissionable income. Manager may commission any of the recording costs that end up in the artist's pocket. Accrued v. Paid -- something to watch. Recording company policy: advances are not earned (accrued) until royalties are collected. Issue about when manager is owed commissions after expiration of the sunset clause. "Gross income credited or received." Possible fix: ramp up percentage for the new manager while ramp down the percentage for the outgoing manager. Hypo: Deal Expires December 2004. Paragraph 3 (c) "manager commissions payable during term and thereafter." Language is management favorable. Paragraph 3 (d): commission only for agreements made or substantially in negotiated during the term of the contract. Managers Take Over In The Late 1990s. Managers can produce -- to build assets, production companies, studios. This can be a conflict of interest. Example: shandling v. Brillstein/gray. All these cases have settled. Managers procure employment. Although and unlicensed agency contract is void, these problems do not seem to be prosecuted. Park V. Deftones. The Deftones Leave Their Manager, Park. Case is on appeal from summary judgment against park, on the ground that the management contract between them was void. Violation of the talent agencies act by securing performance engagements without being licensed.. Park had sued for nonpayment of commissions. Last gig is in 1994, park files in 1996. 1997 -- action before the labor commission as the labor commissioner has initial original jurisdiction. Parks asserts that the deftones defense is untimely because it was not filed within one year of the violation. Court finds it is timely because assertion of the claim for unpaid commissions is itself a violation of the agency's act, and thus the defense is timely filed within a year of the last violation. Further, there is no statute of limitation on defenses. Policy: prevents a legal contract being enforced by timing the suit to evade the statute of limitations. Legislative purpose: remedial legislation. To be interpreted liberally to achieve protection of artists. The legislative history considered the possibility of not needing a license if no commission is paid; however, it was decided that the conduct of procuring engagements is culpable with or without commission. Cf. The laurie case. Parks #2 argument: incidental procurement -- record deal is the goal. No carve out in california. History (or future) of incidental procurement. Wax v. Curry -- manager challenges the statute in that "occupation" is constitutionally vague. California appellate court suggests that incidental is okay. Waisbren follows. Labor commission decision allows the incidental procurement of a couple of concert dates which led to a record deal. Personal manager contract hypo Par. 3.D.: After the expiration of this Agreement, Manager will receive the Commission with respect to all engagements and agreements entered into or substantially negotiated during the Term (Post Term Earnings) as follows: (i) first year and second year-commission less 5%; and (ii) thereafter Artist shall not be obligated to pay Manager any compensation Personal Manager Contract HypoRevised Language Par. 3.D.: In Lieu Of The Percentage Specified In Paragraph 3.A. Above, After The Expiration Of This Agreement, Manager Will Receive A Commission (Post Term Earnings) Equal To The Following Percentage Of Gross Income With Respect To All Engagements And Agreements Entered Into Or Substantially Negotiated During The Term (Covered Agreements) Received By, Credited To Or Recovered By Artist During The Indicated Year: (I) First Year After The Expiration Of The Term, 15%, (Ii) Second Year After The Expiration Of The Term, 10%. Thereafter Artist Shall Not Be Obligated To Pay Manager Any Commission With Respect To Covered Agreements Or Otherwise. TALENTS REPS--ATTORNEY -- FIDUCIARY DUTY AND DUTY OF CARE DAY v. ROSENTHAL (SEE ALSO, CROCE, CB. PP. 50) CONFLICTS OF INTERESTCAL. RPC An Attorney Is An Agent In The General Sense. Acting On Behalf Of A Principal. Cf. Melcher. Attorney rosenthal is found liable for $26 million in damages for: Failure to disclose conflicts Commingled funds Failure of care of duty. Cf. Croce. The contract was not held unconscionable. The lawyer was sanctioned for not advising croce to use a different lawyer because of conflict of interest. Sometimes people hire attorneys because of their conflicts of interest. That is, their connections. Ethics In Negotiation - Conflicts Of Interest: Rules Of Professional Conduct 3-300: business transaction with client Fair & reasonable terms Written advice to seek independent counsel Written consent from client to terms 3-310: direct conflict: Representing multiple clients in same transaction where interests are actually or potentially adverse-- informed written consent 3-310 (C) example representing more than one client in a deal. If one lawyer represents an entire band, there is a conflict of interest between the lead singer or songwriter and the rest of the band. Indirect conflict: Legal, business, financial, professional or personal RELATIONSHIP WITH ANOTHER PARTY IN A TRANSACTION, or who would be SUBSTANTIALLY AFFECTED by the transaction, or in the subject matter of the transaction-- written disclosure 3-310(B) Example: representation of the current client intersects with the interests and confidential information of a different client OR a PAST client. Example: past business deal with the studio and current representation of an actor for a contract with the studio. Example: paid by a third-party (lawyer is a "producer" to be paid by the studio in lieu of the percentage of the artist fee.) Talent Reps-AttorneysDeception In Negotiations Lawyers are subject to the law, e.g. Misrepresentation, fraud Tort law: damages & other remedies, for intentional or negligent misrepresentations for purpose of inducing action or inaction in reliance. Example: attorney tells an actor is certain director will be on the picture of the actor signs. If this representation "induces assent", then fraud and misrepresentation can result. Cf. "puffing." Contract law: avoidance or reformation of the contract, for even an innocent misrepresentation of a material fact that induces assent Loose categories of conventionalized lies upon which no one should rely (puffing): exageration of value, future facts, opinions (especially about quality, value) Lawyers also subject to special regulation, complicated by duties to client, such as confidentiality and zealousness Aba model rules 4.1: in the course of representing a client a lawyer shall not knowingly: (A) make a false statement of material fact or law to a third person; or (b) fail to disclose a material fact to a third person when disclosure is necessary to avoid assisting a criminal or fraudulent act by a client, unless disclosure is prohibited by rule 1.6. RULE 1.6 GENERALLY MAKES ALL INFORMATION RELATING TO REPRESENTATION CONFIDENTIAL Comment to rule 4.1: Can depend on the circumstances. Under generally accepted conventions in negotiation, certain types of statements ordinarily are not taken as statements of material fact. Estimates of price or value placed on the subject of a transactionare in this category. Cal. Doesnt have this rule, but see cal. Bus.& prof.code 6106: the commission of an act involvingdishonestyconstitutes a cause for disbarment or suspension FIDUCIARY DUTY IN GENERAL. DEFINITION: (page 132) "Broadly stated, a fiduciary relationship is one founded upon trust or confidence reposed by one person in the integrity and fidelity another." IMPOSED BY LAW In Certain Confidential Relationships (E.G. Attorney-Client); Or or ARISES BY AGREEMENT (Or Implied Agreement) Where A Person Voluntarily Assumes A Position Of Trust And Confidence. CROCE When a lawyer deals with persons whohe has or should have reason to believe rely on him. Duties Of Fairness, Good Faith & Loyalty Breach Of Fiduciary Duty. Sounds In Tort. Punitive damages Contract statute of limitation may be shorter. Contract will say "no fiduciary, no duty of trust, no joint venture." RELATIONSHIP BETWEEN AUTHOR/PRODUCER AND PUBLISHER/DISTRIBUTOR Generally, No Fiduciary Duty Between Author And Publisher Mellencamp: a purely commercial relationship is contractual, not fiduciary. Here, no language in the contract which creates fiduciary duty. Right to collect moneys and pay royalties doesnt automatically create a fiduciary relationship. See also roger rabbit (WOLF). Contract Granting EXCLUSIVE RIGHTS To Exploit In Exchange For Royalties May IMPLY OBLIGATION TO MAKE REASONABLE EFFORTS TO EXPLOIT. That is contractual, not fiduciary duty. Mellencamp. BAD TORT: Tortious conduct if sole purpose of injuring author intentional (prima facie) tort. SCHISGALL (discussed in mellencamp). If the action of the party is not for business reason, then it is tortious. OBLIGATION TO EXPLOIT Implied Obligation To Exploit Especially where the implied obligation is needed in order to find an enforceable agreement, i.e. To create mutuality of obligation. Lucy, lady duff-gordon. Large advances now counter accusations of insufficient consideration. IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING IN ANY CONTRACT. Many cases that show fiduciary duty are actually cases where there is breach of good faith and fair dealing. Exclusive grant leads to implied in law responsibility. Van valkenburg -- contract is often silent on obligations. Court must supply implied covenant terms. Good Faith Effort In Initial Promotion & Exercise Good faith business judgement is the standard required, re further promotion. Zilg. But Some Caselaw: No Obligation Of Good Faith Will Be Implied If Contradicted By Express Contract Language And Not Necessary To Make Agreement Enforceable. Waits. Agreements To Do More Will Be Enforced, IF SPECIFIC ENOUGH. Contemporary mission. ZILG V. PRENTICE-HALL, INC.. CRITIQUE OF THE DUPONT FAMILY. Setup Chosen for bulk of the month club (business readers). Dupont's campaign against the book. Others say "polemic." Thus the book club drops selection. On that basis, prentice-hall cuts the initial run publication. Cuts advertising budget. Charge Of Tortious Interference By Dupont Is Dismissed. No fiduciary duty. Industry-standard, lack of language in contract. Good Faith And Fair Dealing Implied By Exclusivity Of Contract. Levels of good faith. Good-faith efforts -- low standard; Reasonable efforts (third-party standard); Best efforts -- maybe requires a lot. Here, no "best efforts" clause. Discretion Of Publisher Is Industry-Standard. Court Finds That Number Of Copies And Advertising Budget Gave "Reasonable Chance" Of Success. Promise to publish requires "good-faith." Plaintiff Burden To Show Bad Faith. HYPO: CONTRACT EXPRESSLY SAYS PRENTICE-HALL CAN REFRAIN FROM PUBLISHING (MAY ELECT). Waits: Refrain From Publishing -- Up To The Record Company. Other Cases Require "Discretion." Locke V. Warner Bros. Implies that the discretion must be exercised in good-faith. If bad faith is shown, actionable. To Contract Out Of "Good-Faith" Requirement: Invoke "Sole Discretion." However, the california commercial code, article ii: every contract has good faith and fair dealing which cannot be signed away. In Sum. No fiduciary duty. Number of copies, advertising budget to the discretion of the publisher: contract, industry-standard. Egregious conduct is prima facie tort. Implied covenant of good faith and her dealing. The court will look for mutuality. If lack of obligation is express, contract will be enforced. Specific obligations, best efforts/reasonable efforts should be contracted for Cf. Roger rabbit: no fiduciary duty to profit participation for merchandising. TALENT CONTRACTS BACKGROUNDINTERPRETATION PT.1 FORMATIONWRITTEN VS. ORAL AGREEMENTS FORMATIONCAPACITY (E.G., MINORS) INTERPRETATION Vagueness/Indefiniteness. Pinnacle Ambiguity; Consider K As A Whole. Donahue TERMINATION/BREACH DURATIONAL LIMITS--CALIFORNIAS 7 YEAR STATUTE OTHER LIMITATIONS ON ENFORCEMENT California Injunction Statute TALENT CONTRACTS--FORMATION REQUIREMENTS: (1) Legal Capacity (2) Mutual Consent All material terms must be certain and company. Cf. Cheever = no binding agreement. (3) Lawful Objective (4) Sufficient Consideration NOTE: IF A MATERIAL TERM IS TOO UNCERTAIN OR INDEFINITE FOR THE COURT TO ASCERTAIN WHAT THE PARTIES AGREED TO, MAY NOT FORM A CONTRACT. EG Cheever. TALENT CONTRACTSFORMATION: WRITTEN vs. ORAL AGREEMENTS Oral Agreements May Be Enforceable, UNLESS PARTIES INTENDED OTHERWISE, Or Some Other Legal Limitation On Oral Agreements Requirements: (1) legal capacity, (2) mutual consent, (2) lawful objective, (3) sufficient consideration DIFFERENT STUDIOS HAVE DIFFERENT STANDARDS. Paramount/Disney/Fox: Require Long Form Before Shooting. Other Companies Are Less Formal, Difficult When There Is A Dispute. Deal Memo/Short Form. All material terms must be there. Clear and definite to be enforceable. BASSINGER -- enforcement of oral agreement. IF AGREEMENT IS NONBINDING UNTIL WRITTEN AND SIGNED, THE PARTY WHO SEEKS NONENFORCEMENT BENEFITS. ISSUE: LOAN OUT COMPANY IS THE ACTUAL CONTRACTING PARTY. Negotiations Resolved Issues Of Nudity, Script Changes. Material Terms Were Agreed Upon. A Long Form Contract For Mighty Wind Productions Was Drafted But Not Signed. BASINGER CHANGES AGENTS. After 6/7 Drafts Of Contract, She Walks. Film Is Presold. Other Actors Back Out. PROCEDURAL. Trial Court Awards $8 Million. Find A Binding Agreement. APPELLATE COURT FINDS AMBIGUITY IN THE LANGUAGE That The Contract Is With "Basinger and/or Mighty Wind." This Ambiguity Leads To A Reversal Case Settles For $3.8 Million. Corporate Structure Argument. RELIANCE: COURT MAY FIND RELIANCE IF: Promissor Creates Reasonable Reliance And The Other Party Actually Does Rely. Studios Often Draft A "Reliance Letter", Stating That The Studio Is Moving Ahead, Spending Money On The Production. Puts Artist On Notice. Actor' s lawyer : "rely at your peril." puts studio on notice not to rely. PAMELA ANDERSON LEE -- similar case, different outcome. SCRIPT GIVEN BY THE LAWYER THAT REPRESENTED THE PRODUCTION COMPANY. CONTRACT HAD FULFILLMENT OF: Capacity; Lawful Intent; Sufficient Consideration. BUT NO MUTUAL ASSENT. The Court Found The Failure Of Mutual Consent On Nudity. Issue: Representatives Not Allowed To Give Consent. Power of attorney. Authority to bind. Thus The Court Found No Meeting Of The Minds. INTENT OF THE PARTIES -- MOST IMPORTANT ASPECT. Here, No Intent To Be Bound By Oral Agreement. Material Term Not Decided -- Nudity. Note: Sag Contract Cannot Require Nudity Unless A Separately Signed Document. "Nudity Side-Letter." No On-Set Changes. COPPOLA CASES CONTRACTSSOME CASES WHERE WRITING REQUIRED COPYRIGHT TRANSFERS MUST BE SIGNED BY THE OWNER (ASSIGNMENTS, EXCLUSIVE LICENSES, ANY GRANT OTHER THAN A NONEXCLUSIVE LICENSE)(SEE DOC.SUPP. PP. 1208): 17 Usc 204(A): A Transfer Of Copyright Ownership, Other Than By Operation Of Law Is Not Valid Unless An Instrument Of Conveyance, Or A Note Or Memorandum Of The Transfer, Is In Writing And Signed By The Owner Of The Right Conveyed Or Such Owners Duly Authorized Agent. STATUTE OF FRAUDS E.G. Cal. Civ. Code 1624(A) The Following Contracts Are Invalid, Unless They, Or Some Note Or Memorandum Thereof, Are In Writing And Subscribed By The Party To Be Charged Or By The Partys Agent: An Agreement That By Its Terms Is Not To Be Performed Within A Year From The Making Thereof Example: roy scheider wants to get out of contract for television series. Says that because there is no signed contract there is a statute of frauds disavow meant. Court: contract could be performed within a year, i.e., the show could not be successful. Thus, no sof problem. Example: in a copyright case: payments could continue for more than one year under contract, thus sof problem. NOTE: WRITING NEEDED FOR INJUNCTION FOR BREACH OF PERSONAL SERVICES K. CAL.CIV.CODE 3423 TALENT CONTRACTSFORMATION: CAPACITY TO CONTRACT CAPACITY--CONTRACTS WITH MINORS Generally, May Be Disaffirmed (I.E., Is Voidable) During And Shortly After Infancy (E.G. Cal.Fam.Code 6710) Note: Under Some Statutes, Grant By Parent Of Name/Likeness Rights Is Enforceable, Prob. Not Disaffirmable. At Common-Law, An Agreement With The Parents Could Not Be Enforced Because Of The Policy That The Child May Disaffirm. COURT APPROVAL PROCESSCAL.FAM.CODE 6751 Limitations On Disaffirmance Reasonable And Provident Contracts? PRINZE Restitution/Retention Of Benefits. EDEN (Ny) Capacity/Court Approval-Manager Agreements? AGENCY CONTRACT. CAL. LAB. CODE 1700.37 SEPARATE STATUTE FOR JUDICIALLY APPROVED CONTRACT. MAY NOT BE DISAVOWED AFTER COURT APPROVAL. CAL. FAMILY CODE 6710: Except As Otherwise Provided By Statute, A Contract Of A Minor May Be Disaffirmed... CAL. FAMILY CODE 6750: This Chapter Applies To The Following Contracts -- (A) A Contract Pursuant To Which A Person Is Employed Or Agrees To Render Artistic Or Creative Services. "Artistic Or Creative Services" Includes, But Is Not Limited To, Services As An Actor, Actress, Dancer, Musician, Comedian, Singer Or Other Performer Or Entertainer, Or As A Writer, Director, Producer, Production Executive, Choreographer, Composer, Conductor Or Designer. CAL. FAMILY CODE 6751: -- (A) A Contract, Otherwise Valid, Of The Type Described In Section 6750, Entered Into During Minority, Cannot Be Disaffirmed On The Ground... If The Contract Has Been Approved By The Superior Court. TALENT CONTRACTSWORKING WITH CONTRACTS INTENT OF THE PARTIES: KEY TO CONTRACT INTERPRETATION (AND THEREFORE, DRAFTING): COURTS LOOK AT CONTRACT AS A WHOLE . DONAHUE/BLAIR WITCH. Consider Contract As A Whole In Drafting/Interpreting Generally, Ct. Wont Adopt An Interpretation That Renders Other Provisions Superfluous. E.g., narrow, specific provisions may be viewed as narrowing an apparent broad provision. If term vague or indefinite, courts will not enforce LOOK TO THE LANGUAGE OF THE CONTRACT. MENDLER. Vagueness/Indefiniteness AmbiguityProvisions Subject To More Than One Possible Meaning Mendler: Issue -- When Is The Actual Photograph Changed To An "Illustration."? Contract language: photographs may be used for "guidance models and examples." Here contract dispute leads to a copyright infringement claim. Use of actual photo exceeds the scope of the copyright license. Trial Court Finds That Use Of Altered Image On A T-Shirt Is Altered To The Point Of Illustration. Appellate Court Interprets The Contract Using "Common Usage And Understanding." Judicial Notice Is Taken Of The Dictionary Meanings. "Photo" = lifelike, objective. Court compares the photo to the original and finds that it is not altered to the point where it is not recognizable as the photograph. Must View A Contract As A Whole. Attempt to make every provision significant. Narrow provisions limit broad grant of rights. IF TERMS UNAMBIGUOUS, EXPRESS LANGUAGE GOVERNS, COURT WONT CONSIDER EXTRINSIC EVIDENCE Unanticipated SituationSometime Contract Isnt Clear. E.G. Permut/Producer Term-Deal E.G., Narrow, Specific Provisions May Be Viewed As Narrowing An Apparent Broad Provision. If Term Vague Or Indefinite, Courts Will Not Enforce -- Cheever. If Terms Unambiguous, Express Language Governs, Court Wont Consider Extrinsic Evidence. DONAHUE/BLAIR WITCH. USE OF ACTORS LIKENESSES IN BLAIR WITCH II WITHOUT SPECIFIC GRANTS FOR DUBBING; MERCHANDISE. The Court Finds: Initial Interpretation Is A Matter Of Law For The Court To Decide. If Unambiguous On Its Face -- Question Of Law For The Judge. No Extrinsic Evidence. If Ambiguous -- Question Of Fact For Trier Of Fact. Here, Contract Grants "All Rights". Very Broad. But "look at contract as a whole." specific grants must not be superfluous. (language as to what rights were granted.) Thus, "All Rights" Must Mean Something Narrower, Thus Ambiguous. Thus, A Question Of Fact. Thus, Summary Judgment Is Improper. HOW COULD YOU AVOID THE CONTRACT INTERPRETATION IN Donahue? To Avoid A Specific Grant Narrowing The Broad Grant, E.G.: Expressly state without limiting the generality of the foregoing Including, without limitation For avoidance of doubt, the foregoing shall include, without limitation By way of example, the foregoing shall include, without limitation CONTRACT INTERPRETATION--AMBIGUITY Parol Or Extrinsic Evidence Only admitted if k ambiguous. (especially if k is integrated ) Who Decides If K Is Ambiguous? Ny: seems to be a question of law for the judge (donahue) four corners Cal: historically was similar (see,e.g, burroughs); Now more complex. See eg wolf/roger rabbit reasonably susceptible 2-Step Process: Determine ambiguity: provisionally receive evidence of whether language reasonably susceptible to another meaning If reasonably susceptible, step 2 is to admit extrinsic evidence and interpret the contract If Extrinsic Evidence In Conflict: Initerpretation Is Issue Of FACT If No Extrinsic Evidence, Or Evidence Does Not Conflict, Interpretation Is An Issue Of LAW WOLF/ROGER RABBIT. COMMERCIAL TIE-INS TO MCDONALD'S. Issue: What Are "Gross Receipts."? No Cash Exchanged. Expert Witness = Industry-Standard That Value Of Advertising = Gross Receipts. Trial Court Rejects Expert's Definition. Summary Judgment For Disney. Appellate Court Finds That "Gross Receipts" Is "Reasonably Susceptible" To A Different Interpretation. Reverses Summary Judgment. HISTORICALLY: Informal/Deal Memo/Not Integrated = Entertain Parol. Formal/Integrated/Merged = No Parol. "INCORPORATED BY REFERENCE." CALIFORNIA LAW THAT INTERPRETS RELATED CONTRACTS AS A WHOLE. CONTRACT INTERPRETATIONNEW MEDIA OFTEN ARISE RE: NEW MEDIA, WHERE THERES AMBIGUITY REGARDING THE SCOPE OF A GRANT OF RIGHTS Cases Are Fact-Specific INTENT OF THE PARTIES--Always The Starting Point Consider Contract As A Whole. Donahue. Express Language Of The Contract Consider Context, Including Industry Custom (Surrounding Circumstances, Trade Usage) Where No Other Indicia Of Parties Intent, Courts Apply Broad Interpretive Approaches REASONABLE MEANING (USUALLY FAVORS GRANTEE): Does New Medium Reasonably Fall Within The Medium Described? If So, It Is Included In The Grant. STRICT CONSTRUCTION (USUALLY FAVORS GRANTOR): Only Media Which Fall Within The UNAMBIGUOUS CORE MEANING Of The Rights Granted Are Found To Be Granted Everything Is Reserved To Grantor Except For That Which Is Expressly Granted. INFLUENTIAL FACTS IN CHOSING AN APPROACH: Sophistication Of Parties, Who Drafted?, Was Medium Known/Forseeable At Time Of Grant? REY V. LAFFERTY. CURIOUS GEORGE/ANCILLARY PRODUCTS. The Court Looks At The Indicia Of Mutual Intent. The Two Methods Of Interpreting For New Media. Favors grantee -- "by any means and media now or hereafter known. Favors grantor -- "any rights not expressly granted herein her reserved to grantor." Music Publishers Ask For Express Grants For All Media Including Internet. Here, Grant Is Made FOR TELEVISION BROADCASTS. Does This Foresee Videotape? The court thinks not. Ambiguity Goes Against The Drafter. ROSETTA/E-BOOKS CASE. 2D CIR.. NEW YORK AMBIGUITY/PAROL LAW. EVEN UNDER REASONABLE MEANING -- NO GRANT OF RIGHTS IN STANDARD PUBLISHING CONTRACT FOR E-BOOKS. CONTRACTSVAGUENESS/INDEFINITENESS IF TOO VAGUE, E.G. AGREEMENT TO AGREE OR TO NEGOTIATE, COURTS WONT ENFORCE. E.G. Best Efforts To Negotiate A New Agreement, Without Specific Guidelines. Pinnacle INTERPLAY WITH CONTRACT FORMATION: If Contract Terms Are Too Uncertain And Indefinite, Court Will Find No Mutual Assent As To Material Terms, No Binding Contract. Cheever -- Terms Are Too Vague. Definite Terms Supplied By The Publisher After Contract Formation. These Are Not Contract Terms, Thus Not Enforceable TO IMPLY MISSING TERMS, THE SUBJECT MATTER OF THE CONTRACT SHOULD BE AGREED AND THERE SHOULD BE SOME STANDARD FOR REASONABLE IMPLICATION. Cheever. HOW COULD YOU DRAFT AN ENFORCEABLE BEST EFFORTS PROVISION IN Pinnacle?/HARLEQUIN SPY NOVEL CASE. Include Specific, Clear Requirements/Guidelines, E.G.: Parties wont negotiate with 3d parties until Parties will promptly submit bona fide offers and counter-offers Add right of last refusal (i.e. Right to meet a 3d party offer other side is willing to accept). Cf. New York Sportscasters Case. CONTRACT INTERPRETATIONIMPLICATION OF TERMS TENSION IN VALUES: PARTY AUTONOMY: General Idea That Parties Should Be Free To Make Their Own Agreements (E.G., Plain Meaning), Vs. SOCIAL & COMMERCIAL NORMS Expectation Of Honesty & Fairness (E.G. Implied Covenant Of Good Faith And Fair Dealing). WAITS Contract EXPRESSLY PERMITTED Warner To Refrain From Exploiting Recordings COVENANT WONT BE IMPLIED IN CONTRADICTION TO AN EXPRESS K PROVISION, UNLESS NECESSARY IN ORDER TO PRESERVE ENFORCEABILITY (I.E. AVOID ILLUSORY PROMISE) ILLUSORY PROMISE: WHEN PERFORMANCE IS TOTALLY DISCRETIONARY ON ONE PARTY'S PART. That Is, No Performance Or Consideration On One Side. Here, (Waits) $4000 Consideration Was Paid. If No Consideration The Court Will Supply Terms.. If Unambiguous, With Consideration, Courts Will Honor The Terms. TALENT CONTRACTS--TERMINATION/BREACH GENERALLY, TERMINATION REQUIRES IMPORTANT MATERIAL BREACH WILLFUL BREACH OF EMPLOYMENT CONTRACT--OTHER PARTY CAN TERMINATE. CAL.LABOR CODE 2924-2925 BREACH BY EMPLOYEE: GOUDAL Actress Terminated By Cecil B. Demille. One Year Contract With Four Yearly Extensions. Terminated In The Middle Of The Last Term. Goudal sues for balance of contract. Termination requires just cause/"willful misconduct." demille asserts actress argued that the director and had a duty to mitigate by finding a job. Extension of option indicates performance was satisfactory. Non-assertive behavior. Discussion of script with director is "conscientious" and "artistically" correct. No "willful breach." Duty to mitigate. Studio asserts actress did not seek employment elsewhere. Duty to limit damages. "Reasonable efforts to obtain comparable employment" is the employer's burden to prove that other work existed. Negotiation Point: Employer wants provision of "duty to seek other employment." Actor: pay or play provision. BREACH BY EMPLOYER: BUMGARNER Warner Brothers Used A Strike To Suspend Weekly Guarantee Payments. Letter From Garner In Protest; Triggers The Requirement For Warner Brothers To Pay Or Be Liable For Willful Breach. Refusal To Pay By Warner Brothers. Willful Breach. Garner Terminates. Court: Warner bros. Is not justified in suspending payments. Not force majeure; sufficient episodes are scripted; other sources of script available. Consequence: willful breach by employer. Termination justified under 2924 and 2925. Cal. Lab. Code 2924. Termination Of Employment By Employer. "An Employment For A Specified Terms May Be Terminated At Any Time By The Employer In Case Of Any Willful Breach Of Duty By The Employee In The Course Of His Employment, Or In The Case Of His Habitual Neglect Of His Duty Or Continued Incapacity To Perform It." Cal. Lab. Code 2925. Termination Of Employment By Employee. "An Employment For A Specified Term May Be Terminated By The Employee At Any Time In Case Of Any Willful Or Permanent Breach Of The Obligations Of His Employer To Him As An Employee." FORCE MAJEURE CLAUSES Example: Event outside of studio's control That materially impairs studio's preparation production or completion of motion pictures That lasts for more than six weeks. Consider If There Was Actual "Hampering" Before Suspending Payments. DUTY TO MITIGATE/RIGHT OF OFFSET Duty To Mitigate Is Incumbent Upon The Non-Breaching Party. PAY OR PLAY CLAUSES Pay Or Play. Similar To Liquidated Damages Clause. Offset is usual. Duty to mitigate not usually pursued. Subject to: election to proceed; Subject to actor's approval rights. Example: actor will not approve the director. JETTA GOUDAL Talent contracts--durational limits CAL. LABOR CODE 2855-- 7 YEAR STATUTE CANT ENFORCE CONTRACT FOR PERSONAL SERVICE BEYOND 7 CALENDAR YRS. FROM commencement -- no extensions for downtime. Dehaviland--cant be waived, BECAUSE ESTABLISHED FOR A PUBLIC REASON MID-TERM NEGOTIATIONS MOMENT OF FREEDOM VS. TOTALITY OF CIRCUMSTANCES COVERS EMPLOYEES, NOT INDEPENDENT CONTRACTORS. Ketchum DURATIONAL LIMITSCAL.LAB.CODE2855(A) (a) Except as otherwise provided in subdivision (b), a contract to render personal servicemay not be enforced against the employee beyond seven years from the commencement of service under it RECORDING ARTIST EXCEPTION (2855(B)) --DURATIONAL LIMITS--COURTNEY LOVE DISPUTE CAL.LAB.CODE2855(B) (B) NOTWITHSTANDING SUBDIVISION (A): (1) ANY EMPLOYEE WHO IS A PARTY TO A CONTRACT TO RENDER PERSONAL SERVICE IN THE PRODUCTION OF PHONORECORDS IN WHICH SOUNDS ARE FIRST FIXEDMAY NOT INVOKE THE PROVISION OF SUBDIVISION (A) WITHOUT FIRST GIVING written notice to the employerSPECIFYING THAT THE EMPLOYEE FROM AND AFTER A FUTURE DATE CERTAIN SPECIFIED IN THE NOTICE WILL NO LONGER RENDER SERVICE UNDER THE CONTRACT BY REASON OF SUBDIVISION (A). DAMAGES FOR UNDELIVERED RECORDS CAL.LAB.CODE 2855(B)(3) (3) IN THE EVENT A PARTY TO SUCH A CONTRACT IS, OR COULD CONTRACTUALLY BE, REQUIRED TO RENDER PERSONAL SERVICE IN THE PRODUCTION OF A SPECIFIED QUANTITY OF THE PHONORECORDS AND FAILS TO RENDER ALL OF THE REQUIRED SERVICE PRIOR TO THE DATE SPECIFIED IN THE NOTICEthe party damaged by the failure shall have the right to recover damages for each phonorecord as to which that party has failed to render service[WITH A 45-DAY SOL] CONFLICTS OF LAW SOMETIMES, EVENTS OR PARTIES RELATING TO A DISPUTE MAY HAVE A CONNECTION WITH MORE THAN ONE JURISDICTION. If The Rules Of The Jurisdictions Could Lead To Different Outcomes, Deciding Which Law To Apply Can Be Significant. Parties will argue for the application of one or another of the possible applicable laws Deciding which law should apply is called choice of law or conflicts of law analysis Different states have different ways of resolving conflicts questions, and sometimes apply different approaches depending on how they characterize the underlying dispute (e.g. A tort issue or a contract issue) TENDENCY TO APPLY LAW OF THE FORUM COURT, Unless Persuaded To Apply Another States Law Example: in radioactive the new york court looked to follow california law if the facts fell within strong policy of california state law. However, the policy referred to california employees and not to employers. Federal Courts In Diversity Matters Apply The Choice Of Law Approach Of The State Where They Sit RADIOACTIVE v. MANSON: DISPUTE OVER ENFORCEABILITY OF A CONTRACT BEYOND A 7-YEAR TERM Sdny Applies Ny State Conflict Of Law Rules Contract Itself Designated Ny Law Ny Conflict Of Law Rule Re Law Applicable To A Contract Follows restatement (2d) conflicts of law Defer to choice made by parties in the contract, unless: Theres NO REASONABLE BASIS for applying that law, OR Applying the law chosen would violate a FUNDAMENTAL POLICY of another jurisdiction with MATERIALLY GREATER INTEREST in the dispute Applying That To RADIOACTIVE: Plenty of contacts between the relationship and ny The 7-year rule reflects a strong policy, but it is to protect california employees, not to regulate california employers No contrary precedent Ct. Doubts Cal. Legislature Intended To Benefit Non-California Employees Of California Employers CALIFORNIA 7-YEAR RULE: MID-TERM RENEGOTIATIONS WHEN WILL A RENEGOTIATION OF A CONTRACT START THE 7-YEAR CLOCK RUNNING AGAIN? 2 DIFFERENT APPROACHES: Moment of freedomrenegotiated k only starts new clock if there was a moment when the artist could have walked away without obligation Totality of the circumstanceslook at all the circumstances. E.g. If later in the first contracts term, significantly changed provisions, may be treated like a new contract, with a new 7-year limit. Melissa Manchester. TALENT CONTRACTS--OTHER LIMITS ON ENFORCEMENT California injunction statutes Cal.Civ.Code 3423, CCP 526--reqts. For injunctive relief Generally, injunctive relief not available for breach of agreement to render personal service. 3423. Exception if: In Writing Special, Unique, Extraordinary, Or Intellectual Character Loss Cant Be Compensated In Damages Meets Minimum Compensation Requirements TALENT CONTRACTS-MINIMUM COMPENSATION REQD FOR INJUNCTION-CAL.CIV.CODE 3423 Year 1: $9,000; Year 2: $12,000; Year 3: $15,000 Year 4 & 5: $15,000 Minimum, Plus Additional $15,000 Actually Paid Year 6 &7: $15,000 Minimum, Plus Additional $30,000 Actually Paid Note: minimum for a 7-year agreement: $186,000 ALTERNATELY: IF AGGREGATE COMPENSATION ACTUALLY RECEIVED IS AT LEAST 10X THE MINIMUMS May Be Paid Any Time Prior To Seeking Injunctive Relief Year 1: $90,000; Year 2: $120,000; Year 3: $150,000; Year 4&5: $300,000; Year 6&7: $450,000. Total For 7 Years: $1.86million. NOTE: IN EITHER CASE, AMOUNTS IN EXCESS PAID IN ONE YEAR CAN APPLY AGAINST AMOUNTS REQUIRED FOR SUBSEQUENT YEARS UNDER PRIOR LAW, Amts. Actually Paid Didnt Qualify If K Didnt Require Minimum. FOXX That is, contractually there must be provision in the contract that provides for minimum compensation, even if the alternate compensation is paid. Record Co. Option To Pay Doesnt Qualify. In brockert, the fact that no town had an option which it exercised before attempting to obtain injunction did not satisfy the statutory requirement, which is for guaranteed minimum compensation, not an option. Cts. Take Unique Etc. Services Requirement Seriously. Teena Marie Case (BROCKERT). Amts. Required QUALIFY EVEN IF USED FOR COSTS, If Costs In Recipients Control. NEWTON-JOHN ABC V. WOLF Original Agreement: You agreeduring the last 90 days prior to the expirationof this agreement, to enter into good faith negotiations with us for the extension of this agreementyou further agree that for the first 45 days of this renegotiation period, you will not negotiate for your services with any other person In the event we are unable to reach an agreement for an extension by the expiration of the extended term hereof, you agree that you will not accept in any market for a period of three months following expiration of the extended term of this agreement, any offer of employment as a sportscaster without first giving us, in writing, an opportunity to employ you on substantially similar terms Abc V. WolfBetter Language? You agree that: You will not solicit, consider or accept, in any market, any offer of employment as a sportscasteror producer of sports programming, or grant or obtain any option for such employment, prior to the expiration of abcs exclusive first negotiation period; and, Without limiting your obligations under clause (i), you will not, at any time prior to the date 3 months following expiration of the extended term of this agreement accept, in any market, any offer of employment, or grant or obtain an option to be employed, as a sportscasteror producer of sports programming, without first giving us, in writing, an opportunity to employ you on substantially similar terms INJUNCTIVE ENFORCEMENT OF PERSONAL SERVICES CONTRACTSNY APPROACH During Term, May Give Negative Injunction, If: Employee refuses to perform Services are unique, extraordinary (irreparable injury), and Express or clearly implied agreement not to compete (e.g. Exclusivity clause) After Term, Only If Unfair competition or similar tort (e.g., trade secrets), or Express covenant not to compete Covenant must be reasonable in time, space and scope, not harsh or unreasonable NO SPECIFIC PERFORMANCE FOR PERSONAL SERVICE CONTRACTS. Constitutional Ban On Involuntary Servitude. 13th Amendment. Court Would Then, Also, After Not Under Four "Ineffective Performance." DAMAGES FOR BREACH OF CONTRACT GENERALLY, To Receive Damages For Breach Of Contract, They Must Be Reasonably Forseeable (Predictable) This is inherently difficult for new entertainment propertieshigh failure rate Cant be uncertain and speculative Ny Courts Seem More Demanding As To Proof Of Amount, At least where theres no track record. But if theres a track record, damages based on that may be awarded. California Courts Are More Liberal: If The FACT Of Damage Is Proved With Reasonable Certainty, Damages May Be Awarded If Premised On Logical Calculations/ Inferences, Even If The Specific Amount Is Not Certain HYPOCRIME STORY ASSUME SCOTT PETERSEN IS CONVICTED OF MURDERING HIS WIFE. YOUR PRODUCER CLIENT NEGOTIATES A DEAL TO DO A TV MOVIE ABOUT THE CRIME, GETTING A GRANT OF LIFE STORY RIGHTS FROM PETERSEN. HE HAS ASKED YOU IF ITS OKAY TO CUT A CHECK AND SEND IT TO PETERSEN. WHAT DO YOU ADVISE? Son Of Sam Laws Backgroundson of Sam Compensate victims Dont let criminal profit from his crime Ny statute declared unconstitutional. Simon & schuster (ussc, 1991) Overinclusive (no need for conviction) Could be merely incidental comment Cal. Statute declared unconstitutional. Keenan. Only convicted felons, wouldnt apply if only passing mention Still, constitutionally overbroad Note: confiscation of proceeds under general rico statute, not aimed only at speech profits was held constitutional. Gravano. REPRESENTATIONS/WARRANTIES/ INDEMNITIES/ Important Elements In Most Contracts Definitions, Although Often Used Loosely/Overlapping Representation = the seller warrants that the script has original/no infringement when contract signed. Warranty = the representation will remain true in practice. The buyer is not purchasing a lawsuit. Sometimes Flushes Out Facts That is, the warranty of originality in a contract often prompts people to reveal when things may not be original. Buyer Wants Broad/ Seller Wants To Limit Cross Indemnity Protects the seller from things that are subsequently added to the script that create liability. Example: Fort Apache: The Bronx. A tenement house was rebuilt as the movie set. A fireman is injured when the building is in flames. The writer has been sued, but is cross indemnified. Not liable for a door not to code onset. Indemnity = agreement to defend a claim and assume responsibility for costs in lost revenue based on representation and warranty. Seller -- should limit liability to "best of knowledge" standard. Buyer -- wants the risk to be on the seller. "we are not buying and infringement suit, we are buying a literary property." These provision should be express. Court is reluctant to find implied indemnity. E&O Insurance -- Errors And Omissions. Covers copyright infringement. Theft of idea. Expensive, high deductible. Necessary insurance to obtain financing. Clearance by an attorney is needed to insure a low possibility of successful claims. Example: movie of a living person. Recent australian history. No e & o less than a week before principal photography. BANKRUPTCY GENERALLY, PURPOSE IS TO GIVE DEBTORS A FRESH START WHEN THEY ARE INSOLVENT (UNABLE TO PAY THEIR DEBTS) ISSUES ARISE IN ENTERTAINMENT TYPICALLY EITHER Desire Of Performer To Get Out Of Long-Term Contract Company Dealing In Rights Declares Bankruptcy Company With Contractual Financial Obligations Can No Longer Perform Them GENERALLY, The Assets Of The Debtor (With Certain Limited Exceptions) Are The Estate, And Are Controlled Or Disposed Of By A Trustee For The Benefit Of The Creditors Chap. 7Liquidation; Chap. 11Debtor In Possession, Restructures Obligations Creditors With A Security Interest In Debtors Assets Stand In Line Ahead Of Unsecured Creditors (Everybody Else) THE BANKRUPTCY TRUSTEE CAN EITHER ACCEPT OR REJECT EXECUTORY CONTRACTS Material Obligations Remain To Be Performed; Failure To Do So By Either Would Be A Material Breach Rejection Is Treated Like A Material Breach Just Before Bankruptcy Was Declared So, The Creditor Just Has An Unsecured Damages Claim, Like Other Unsecured Creditors SOMETIMES BANKRUPTCY IS USED BY RECORDING OR TELEVISION ARTISTS WHO WOULD LIKE TO GET OUT OF LONG-TERM AGREEMENTS UNDER WHICH THEY ARE UNRECOUPED Personal Services Contract Probably Cannot Be Assumed By The Estate Of The Person Rendering Services Cant Force The Debtor To Work, Or Substitute Someone Else To Render The Personal Services examples: In re Noonan (Willie Nile Case): Court Let Nile Reject His Record Contract But Where The Bankruptcy Was Declared IN BAD FAITH, Couldnt reject to deprive employer of right to enjoin work for third party. In re carrere. THERES A SEPARATE SET OF RULES DEALING WITH EXECUTORY LICENSES OF INTELLECTUAL PROPERTY. 11 USC 365(N). If Debtor Is A Licensor, And Rejects An Executory Ip License, The Licensee Can Either Treat That As A Termination, Or Can Retain The Rights Licensed And Continue To Pay. I.e. Protects licensees from bankruptcy of licensor, to some extent. Otherwise, copyrights owned by debtor (or rights acquired by debtor) become part of the estate Can Be Disposed Of By Trustee. E.G. Spiderman OR Debtor Licensee Can Reject Executory License PERSONAL RIGHTS Defamation Right Of Privacy False Light Public Disclosure Of Highly Embarrassing Private Facts Intrusion Commercial Appropriation Right Of Publicity Iied Waivers/Releases DEFAMATION--TOPICS Elements Defamation In Fiction--Identification First Amendment Limitations Other Defenses GRANT OF RIGHTS/DEFAMATION -- IMPORTANT CONTRACT IN ENTERTAINMENT BUSINESS. Buyer Wants To Broad Grant -- Even If Not To Exploit. Seller Wants To Be Paid For Each Right. Function Of Market Power And Industry Custom. Historical Rights -- Relatively Simple. "The aviator" about howard hughes. More live people = more complexity. To guard against potential claims: grant of rights from everybody. Example: Rosa Parks used as title in a song by Outkast. Ways Not To Violate -- There's a tradition in the use of unauthorized biomaterial. Value to society. First amendment -- freedom of expression. Contra: falsehood has less value. Cf. Commercial speech. Permission can be gained for right to defame. Fictional as well as actual. Usually for value. Why Pay? Expensive to defend. Legal involvement/ Advice during the creative process. Imprimatur of subject. Example: "ali" and "ray" opted to buy rights. Insurance also requires releases unless cleared by a lawyer. Example Of Well Spent Money: Mcginnis. Cop In San Diego. Release given, lawsuit anyway. Typical Terms -- Life Story; Exclusive option -- option first to keep costs down. Option term = original term with extension. Price = often 10% of purchase price. Argument that life rights should be lower in cost because not absolutely necessary. Scope of rights. Buyer wants all rights. Seller wants to reserve as much as possible. Approval rights -- subject to approval over product. Big, vague restrictions such as "portray as a good person" are unlikely to be granted or enforced. Specific prohibitions more effective. Example: woman in brooklyn -- subject of biopic -- buddhist. "may not portray eating shellfish. May not portray as violating the five prohibitions of buddhism." Consultation services -- Hire subject. Life material's -- photographs et cetera. Release of claims -- significant part of contract. No need unless to release from defamation and invasion. "right of publicity" waiver or release from claims. PER SE PRESUMPTIVE CATEGORIES. Criminal Allegation. Communicable Disease. Incompetent/Insane. Sexually Promiscuous BURDEN OF PROOF. In The United States, Burden of proof is on the plaintiff By clear and convincing evidence. Policy -- the right of the public to know. England/Euro. The Speech Protection, Or Plaintiff-Friendly. DEFAMATION-ELEMENTS FALSE, Unprivileged STATEMENT OF FACT To A THIRD PERSON One other person is sufficient. Need not be broadcast or published. OF AND CONCERNING The Plaintiff DEFAMATORY=LIKELY TO HARM REPUTATION Causes people to shun -- hatred, contempt, ridicule. Cf. "defamation proof." With Requisite Degree Of FAULT Historically, strict liability court. Now, New York Times v. Sullivan. "Actual malice for public figure. Either Actionable Without Special Harm (Economic Loss), Or Prove Special Harm State law (so may vary), with federal constitutional limits IDENTIFICATION In Order To Be Actionable, The Statement/Portrayal Must Be Of And Concerning The Plaintiff, I.e. He must be identified Bindrim: naked psychiatry case -- NY Courts May Be A Little More Favorable To the Defense E.g. Springer: would have no difficulty linking the two. DEFAMATION-1st AMENDMENT LIMITATIONS Opinion Vs. Statement Of Fact. What About Fictional Works? If the standard is "misstatement of fact" then how can an "opinion" be actionable? Answer = opinion is based on fact. Example: "max is a thief implies the existence of facts, and thus defamation. Fault Actual malice vs. Negligence Actual malice = knowledge of falsity or reckless disregard for the truth or falsity of the statement/portrayal Some cases say need actual subjective doubts Others suggest reliance on a source must be reasonable. If theres obvious reason to doubt, could be reckless disregard, even without subjective doubt Public Officials (Appear To Have Substantial Responsibility For Conduct Of Government Affairs) Need actual malice Public Figures Need actual malice Private IndividualsUp To States, But Need at least negligence (maybeunless not a matter of public interest) Unsettled area. Private person in a private matter -- possibly no fault required DEFAMATIONFAULTPUBLIC FIGURES Public Figures General: General fame/notoriety in the community-pervasive involvement in the affairs of the community Limited (Re: Statements Germane To The Participation/ Controversy): Voluntary: Public controversy; and Involvement (various multifactor tests; E.g. CLARK ("Sex for Sale" documentary): where the subject did not fulfill the requirements of: VOLUNTARY; PROMINENT ROLE; ACCESS TO CHANNELS OF COMMUNICATION Involuntary: a person drawn into a particular public controversy (unless he rejects any role in the debate) "Reckless Disregard" = "Actual Subjective Doubts" As To The Truth Of The Statement. Speaker may rely upon a source unless there is and "obvious reason to doubt." Obvious Reasons To Doubt Veracity: Convicted of a crime. Trial shows evidence of reason to doubt. BINDRIM V. MITCHELL -- Not Breach Of Contract Claim Court would not enforce the restriction of expression. Here, The Plaintiff Successfully Proves The Writer Had Both Knowledge of falsity and Reckless disregard re false statement. "In fact entertained serious doubts of falsity. Doubleday. In first publication publisher relied on the authors representation. Publisher received a letter from the plaintiff lawyer of actual harm. Doubleday asked the author again, was assured that there was no merit to the claim, Authorized the paperback edition. Thus, the court found doubleday's actions reckless. Counter: A Novel Is Fictional, Thus Not Fact By Definition. How can satisfy the element "false statement of fact?". Fix: Disclaimer on every book, on every movie? Change identifying attributes. Standard: if a reasonable person identifies the subject. Creates A Catch-22 For Authors. Changing attributes creates "false" statements that may damage reputation. SPRINGER. FORMER GIRLFRIEND OF AUTHOR OF "STATE OF GRACE" PORTRAYED AS HIGH-CLASS HOOKER. Lifestyle Is So Different; Completely Different Character In Completely Different Context. Shares Only Certain Physical Attributes And The First Name. As A Matter Of Law, No One Could Reasonably Find That Springer Was Readily Identifiable. Difference in lifestyle is so great, there is no reasonable construction of similarity. DEFAMATION-OTHER DEFENSES Truth -- If What Is Published Is True, There Is No Defamation Case. Opinion Pure opinion vs. Implies existence of false facts Attack Other Elements Id Fault Defamation-proof -- showing that no amount of defamation could possibly lower the plaintiff's reputation in the community. Note: Personal Rights Typically Dont Survive Death In U.S. Slapp Statutes: Strategic Lawsuits Against Public Participation Permits early dismissal, other procedural advantages, against plaintiffs trying to suppress speech on matters of public interest. See cb pp. 375 n. 19. RIGHTS OF PRIVACY In General -- STATE LAWS VARY--NOT ALL RECOGNIZE ALL TYPES PROSSERS 4 CATEGORIES: INTRUSION ON PRIVATE AFFAIRS Public Disclosure Of Embarrassing Private Facts Publicity Placing One In False Light Commercial Appropriation Of Name Or Likeness. FALSE LIGHT-- ELEMENTS Giving Publicity Not just to a third party (dist. Defamation) I.e., publish or broadcast To A FALSE STATEMENT (Representation Or Imputation) Of And Concerning Plaintiff Placing In A FALSE LIGHT, Highly offensive to a reasonable person Note: usually harm to plaintiff's feelings, rather than reputation Requisite Degree Of FAULT Resulting Damage SEALE V. GRAMERCY PICTURES. RIGHT OF PUBLICITY CLAIM AND UNFAIR COMPETITION THROWN OUT. FALSE LIGHT CLAIM REMAINS. TWO SCENES AT ISSUE. Purchasing Guns To Further The Black Panther Policy Of Arming The Community. Seale: the scene suggests the purchase of the guns was unlawful. Court: no, looks like attempt for legal purchase. Argument Between Bobby Seale And Eldridge Cleaver. The scene is fictional -- it never happened. Losing control of the party. Losing the loyalty of little bobby hutton. Did not show bobby seale keeping the peace at the black panther rally in oakland. Court: yes, false light. But: no actual malice because the film relied on consultants, so no malice exists. Van peebles: such scenes are typical with minor inconsistencies. Court: no fault. In general, schism is true. NEW YORK APPROACH -- VERY LIMITED. Civil Rights Law 50-51 (See Doc. Supp. Pp. 1314-1315) Limited To Use Of Name, Portrait, Picture Or Voice For Advertising & Purposes Of Trade No Other (Common Law) Rights Of Privacy Recognized In N.Y. Law Followed In Some Other States NEW YORK APPROACH--EXCEPTIONS Incidental Use (Eg Advertising For Permitted Use) NEWSWORTHY USE Broadly construed Example: magazine article about irish in america. Photo of st. Example: article regarding in vitro fertilization. Example: messenger v. Gruner + jahr "i got trashed and had sex with three guys Court: newsworthy/within the public interest. Majority: substantially false is not an exception. The court does preserve precedents for invasion of privacy (Binns -- telegraph operator a turn-of-the-century recovers for invasion of privacy). Preserves "highly fictionalized" biographical exception. "Replete with imaginary incidents -- so infected with fiction." BUT NOT IF: Advertisement in disguise No real relationship between name/image used and the newsworthy topic Falsity Previously Thought Would Eliminate Newsworthy Defense, If With Requisite Fault He messenger v. Gruner + jahr rejected But If Work SUBSTANTIALLY FICTIONAL AND HELD OUT AS TRUE, NOT Newsworthy (SPAHN -- fictionalized account of baseball player.) DEFENSES Death Truth No Identification No Constitutional Fault No negligence No actual malice PUBLIC DISCLOSURE-- ELEMENTS DISCLOSURE TO THE PUBLIC Of PRIVATE FACTS (Facts About Private Life, Not Already Publicly Known) HIGHLY OFFENSIVE To A Reasonable Person Not Of Legitimate Public Concern (NOT NEWSWORTHY) -- This protects first amendment rights. Resulting DAMAGE (Mental Distress, Injury To Reputation) DEFENSES Note: Truth NOT A Defense Newsworthiness/ Matter Of Legitimate Public Interest Generally, deferential to publishersnot just news If some reasonable members of the community could enterain a legitimate interest in it shulman Prior Cases Balance: (1) Social Value Of Facts Published, (2) Depth Of Intrusion, & (3) Extent Of Voluntary Public Notoriety NEWSWORTHINESS/ MATTER OF LEGITIMATE PUBLIC INTEREST--SHULMAN As To Details Of Published Facts: Focuses on Relevance of the facts to newsworthy subject matter and Reasonable proportion between the events of public interest and the private facts disclosed. Especially For Involuntary Public Figure, Should Be Logical nexus, Substantial relevance and Intrusiveness not greatly disproportionate to relevance. SCHULMAN -- VIDEOTAPE OF AUTO ACCIDENT RESCUE. THE MEDEVAC NURSE IS WEARING A MICROPHONE. THE HELICOPTER TAKES ACCIDENT VICTIM TO HOSPITAL. Claims Are Made For: Intrusion; Publication of private facts. Trial Court: Summary Judgment To Defense. Appellate Court: Privacy is expected in helicopter. Privacy not to be expected at the scene. Main issue: newsworthiness versus privacy. Burden of proof on the plaintiff to show publication of facts is not newsworthy. Strict scrutiny applies Supreme Court Cases. Cox broadcasting -- florida star. Newspaper publishes name of rape victim. Held: laws banning publication not constitutional if the acquisition is legitimate and it comes from a public record. Melvin v. Reid -- "red kimono." former prostitute. Use the subject's name found culpable. Story could be told without use a woman's name. Briscoe: publication of the name of a rehabilitated criminal. Found to be not only "highly offensive but injurious no independent justification for printing identity." Newsworthiness: If Reasonable Member Of Community Would Be Interested. logical nexus between the specific facts and the subject. Proportion of privacy and newsworthiness. Public interest is a matter of law in an accident case. Outweighs the privacy interest. Necessity Is Not The Test. That is, that some of the images in schulman are not necessary to tell the story is not the purview of the court. This would require the court to be a super-editor. "Exuberant judicial blue-penciling after-the-fact would blunt the quills of even the most honorable journalists." INTRUSION-- ELEMENTS Unauthorized intrusion into seclusion Concerns how news has gathered -- Publication is not an element. Objectively reasonable expectation of seclusion or solitude in the place, conversation or data source I.e. Usually as to a private matter Doesnt require absolute/complete privacy. Sanders. Highly offensive to reasonable person Offensiveness might be justified by newsgathering motive. Causing Anguish/Suffering INTRUSIONREASONABLE EXPECTATION OF PRIVACY Normally DOES NOT Include Conduct In A Public Place Fact That One Person Observes Doesnt Mean Theres No Expectation Of Privacy Vs. Broader Dissemination Evaluate: (1) Who Could Have Observed; (2) Identity Of Alleged Intruder; And (3) Nature/Means Of Intrusion E.g. Worker may have reasonable expectation vs. Stranger (eg journalist), even though would not have vs. Employer or coworkers Fact That It Might Not Be Intrusion To Listen To Or Observe Conduct Doesnt Mean Its Okay To Covertly Videotape (Nature Of Intrusion) Sanders/Hidden Camera/Psychic Hotline Case. Intrusion is found because of clandestine recording using a "hat-cam. Employee at psychic hotline had "objectively reasonable" expectation to limited privacy. Not in public. Not broader dissemination, even though conversation may be overheard by coworker. Evaluate: Potential observers (coworkers); Id of intruder (news reporter masquerading as employee); Means of intrusion (hat-cam -- hidden, no expectation of this type of intrusion). ABC argues the precedent of employer recording employees. Different standard. No expectation of broadcast. An employee could anticipate being observed or even photographed by his employer. Defense: Legitimate Public Interest. ABC = was not offensive; did not cause suffering. Reality: avoid procedural unconscionability. COMMERCIAL APPROPRIATION PRIVACY-- ELEMENTS Use of name or image In identifiable manner To benefit the wrongdoer Most cases & some statutes limit to commercial benefit, e.g. Use for purposes of trade or advertising Lack of consent Injury to self-esteem/dignity This distinguishes from right of publicity NOT FOR COMMERCIAL MONEY DAMAGES. THIS CONCERNS EMOTIONAL HARM TO THE PLAINTIFF. MICKEY DORA -- "I JUST WANT TO BE LEFT ALONE." RIGHT OF PRIVACY = COMMERCIAL APPROPRIATION + UNFAIR COMPETITION. Purpose: To Prevent Profit From The Commercial Value Of Image. Efficient Use Argument: The Image Loses Value Of Likenesses Dissipated. Privatize Property Argument -- Resource Allocated To Most Efficient Valued User. DEFENSES 1st Amend. Defense If Publication Is In The Public Interest (Broadly Interpreted) RIGHT OF PUBLICITY State Right, So Varies. Not All States Recognize. Protects Proprietary/Commercial Interests, Rather Than Feelings ELEMENTS much like appropriation privacy (without injury to self-esteem/dignity) Use Of Name Or Image In Identifiable Manner To BENEFIT The Wrongdoer Most cases & some statutes limit to commercial benefit, e.g. Use for purposes of trade or advertising Lack Of Consent RIGHT OF PUBLICITY--IMPORTANT ISSUES Compare NY & California Approach Rationales Scope of subject matter Scope of rights Descendibility Choice of law Federal preemption First amendment limits on scope of rights RIGHT OF PUBLICITY--RATIONALES Economic Theories Utilitarian/incentive (reward) Cf. Zacchini the human cannonball. Appropriated the "entire work." Counter argument: utilitarian/incentive (reward) Other rewards exist. Unlike copyright other means of payment. 10th circuit says "not persuasive. Economic efficiency Deception/consumer protection -- control over likeness precludes consumer deception. Counter: celebrity endorses a product without using a. Deception? Natural Rights Theories Fairness/general natural right-- a personality is entitled to the fruits of its labor. Right to control the uses of one's own personality. Counter: celebrities are not completely responsible for fame. Need the media to create the "brand". Labor Theory Unjust enrichment Personality TheoryEmotional Harm Counter: other rights protect emotional harm. Privacy. Iied. Defamation. 10th circuit: that's the price of fame. To argue: balance freedom of expression v. Right of publicity. CARDTOONS -- Parity is part of their use defense for copyright law. Cardtoons is adding comments and additional work. Personality of celebrities is protected otherwise. And that's the price of fame. Here, expression rights outweigh publicity rights. POLYDOROS V. 20TH CENTURY FOX -- "THE SANDLOT" -- PLAINTIFF LOST BECAUSE: No Identification. . But Cf. Bindrim. Close Association Of Image And Name. Court: No Similar Distinctive Events; No Current Identification Between The Character In The Plaintiff. First Amendment Protection = "Incidental Use" In Advertising. Cf. Guglielmo. Court: No Need To Secure License To Use Image Because Constitutionally Protected. Industry Custom Of Licensing Does Not Define The Duty Of Care. NEW YORK APPROACH -- ONLY RECOGNIZES CIVIL RIGHTS STATUTES 50 & 51. USE OF NAME OR LIKENESS FOR PURPOSES OF TRADE AND ADVERTISING. CALIFORNIA APPROACH Recognizes All Four Prosser Privacy Torts At Common Law Prossers 4 categories: Intrusion on private affairs Public disclosure of embarrassing private facts Publicity placing one in false light Commercial appropriation of name or likeness.. Statutory right of appropriation privacy/publicity for living persons--Civ.Code 3344 (1972) Statutory Right Of Publicity For Deceased Personalities--Civ. Code 3344.1 (2000)(Formerly 990 [1985]) RECOGNIZES COMMON LAW RIGHT OF PUBLICITY--PROB. NOT DESCENDIBLE Right Of PublicityCal.Civ.Code 3344 Subject matter (note: living people) Name, voice, signature, photograph, likeness Prohibited uses -- knowing use (1) on or in products, merchandise, or goods; (2) for purposes of advertising, selling or soliciting purchases of products, merchandise, goods or services Remedies: Damages/statutory minimum damages; profits attributable to the use; punitive damages; attorneys fees & costs Exclusions: Several to protect certain employers & publishers/distributors. Main exclusion: use in connection with news, public affairs, or sports broadcast or account First amendment may also limit application to speech works RIGHT OF PUBLICITY--SUBJECT MATTER -- CALIFORNIA COMMON-LAW IS MORE BROAD THAN CALIFORNIA STATUTORY Typically: Name, Photo, Likeness, Varies per state law Expansion: Signature, Voice & Lookalikes & Soundalikes Midler, Waits -- common-law Greater Expansion: Any Indicia Of Identity, Persona Motschenbacher, carson, vanna white, mcfarland, wendt (cheers bar case) -- common-law Performers Style?? Dividing Line -- Whether the Subject Makes Revenue from the Image. Divesting The Personality Of Potential Revenue Is The Standard. DESCENDIBILITY (DOES THE RIGHT SURVIVE DEATH): State Laws Vary. Ny-no. Cal.common law, prob. No; statutory, 3344.1 (formerly 990). Text page 497. Rights may be assigned by the personality while alive. If not assigned, then statute defines to send ability. Choice Of Law: State Approaches Vary. As To Descendibility: Most cases apply law of state of domicile at time of death to determine whether the right descends. Indiana allows claims no matter where domiciled. FEDERAL PREEMPTION BY COPYRIGHT LAW Express Preemption: Copyrightable subject matter + right equivalent to copyright. Most decisions find not copyrightable subject matter or not equivalent right, so no preemption. General Supremacy Clause Preemption (Stands as Obstacle to Federal Policy)? Wendt -- Implied "Dormant" RIGHT OF PUBLICITY--FIRST AMENDMENT LIMITATIONS Spectrum Of Types Of Uses Of Identity/Persona: Advertising/commercial products-- limited 1st amendment protection for commercial speech Usually actionable, even if informative. Alcindor (kareem abdul jabaar). But NOT Actionable If Incidental To A First Amendment Protected Use. GUGLIELMI, (NAMATH, MONTANAPosters Promoting Newspapers). What Constitutes A Commercial Product Is DebatableToy? Game? Poster? Videocassette? Newspaper? Which Are Speech? Are They Commercial Speech? 1ST AMENDMENT--COMMERCIAL SPEECH--GENERALLY Has A Lower Level Of Protection From Regulation, But Still Has Some Protection Elements Proposed commercial transaction Speaker has financial interest Specific product mentioned But Speech Protection Probably Wont Insulate Core Rt. Of Publicity Uses From Right Of Publicity Actions, E.G. Advertising, Celebrity Memorabilia Definition Is Unsettled, Beyond Pure Advertising Expression Solely Related To The Economic Interests Of Speaker Primary Message Is Buy, I.E. Proposes A Commercial Transaction, Advertising What About Mixed Speech? A tie goes to first amendment protection. Example: Guglielmo Fictional Financial gain Knowingly false portrayal. Court finds that the line between informing an entertaining is too elusive. Self-expression is a basic need of humanity. "breathing room" is necessary for first amendment. Mccarthy (Main Academic Commentator) --LOOK TO PRIMARY PURPOSE RIGHT OF PUBLICITY/FIRST AMENDMENT LIMITATIONS News/Information--Strongest 1st Amend. Protection, Usually no rt. Of publicity/commercial appropriation violation. Example: Pat Paulsen for president. Poster was not actionable because Paulsen was in deemed part of political speech. News Broadly Defined. Dora. Surfer case. MINIMAL Editorial Material May Be ENOUGH. Hoffman. But Not: False statements of fact w/fault. Eastwood, Hoffman. Appropriation of performance, entire act. Zachini Stories/Fiction & Entertainment--Harder Cases Usually not violation of rt. Publicity, even if fictional. Polydoros If Permeated With Falsity, But Held Out As Truth, Might Be Actionable. Spahn. But cf. Agatha Christie. Fictional account not protected by right to publicity. Distinguish lugosi: commercial products are not protected speech. Polar express: motion capture technology -- who owns the data? IMITATIVE PERFORMANCES If purely imitative, prob. actionable. Presley v Russen (cb pp. 491). If part of informative/expressive work, prob. Not actionable. Joplin. RIGHT OF PUBLICITYFIRST AMENDMENT/EXPRESSIVE WORKSVISUAL ART In Past, Courts Were Unreceptive To First Amendment Arguments Re: Photo/Art Reproductions Unless There Is Some Connection To Matters Of Public Interest/News But 1st Amend. Protects Non-Informational Speech Saderup/3 stooges: Cal.Sup.Ct. Said art is protected speech, applied a form of balancing, similar to part of fair use defense in copyright If work is transformative, generally will be treated as protected speech, even use on unconventional media such as t-shirts protected by first amendment TRANSFORMATIVEVague Concept Imported From Copyright LawNew Expression Or New Meaning Added Tiger woods case held art is protected Saderups 3 stooges Two Marilynswhich one is speech? New Expression Added, New Meaning. Is the value primarily the artist talent or the celebrity's likeness? Quantitative -- Literal Imitation = Not Protected Springboard for creativity = protected. Primary Marketability -- Artist Or Subject? Cf. Marilyn Monroe And Andy Warhol. FIRST AMENDMENT/EXPRESSIVE WORKSOTHER TESTS ROSA PARKS Case: RELATEDNESS/RELEVANCE Is there a reasonable relationship between the name used and the content of the art Parks v. Laface records, 329 f. 3d 437 (6th cir., 2003) Tony TWIST Case: PREDOMINANT USE DOE v. TCI CABLEVISION, 110 Sw 2d 363 (Mo., 2003) Is the predominate purpose to exploit the commercial value of the persona or to make expressive comment about the celebrity -- Here also the name was used -- identification indisputable, as well as use of the identity for commercial can. But cf. Johnny and Edgar Winters where use of their physical image was deemed transformative PRIVACY/PUBLICITYDEFENSIVE ASPECTS Generally, Challenge Elements Of Claim, E.G.: DEFAMATION/FALSE LIGHT Privacy: Truth is not actionable (plaintiff has burden) Even if false, plaintiff must prove relevant level of fault (actual malice, negligence) by clear and convincing evidence Actual malice Negligence when not public figure. No identification of plaintiff INTRUSION: No reasonable expectation of privacy, Not highly offensive PUBLIC DISCLOSURE: Facts were not private Not highly offensive Disclosed material was of legitimate public interest No identification RIGHT OF PUBLICITYATTACK ELEMENTS, E.G.: Is not a use covered by the relevant statute (E.g. Advertising, for purposes of trade/use on products, etc.) Or law Plaintiffs identity not used Note: common law actions tend to cover broad subject matter Action excluded expressly in statute (e.g. News, public affairs) Note: broad exceptions in cal.civ.code 3344.1(a)(2) First amendment defense INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS Must Be INTENTIONAL Must Be SO OUTRAGEOUSAs To Go Beyond The Bounds Of Decency, And To Be Regarded As Atrocious, And UTTERLY INTOLERABLE IN A CIVILIZED COMMUNITY. Must Also Be A FALSE STATEMENT OF FACT, That Is Made With The Required Degree Of Fault (ACTUAL MALICE For A Public Figure). Hustler v. Falwell. (does this limit only apply to public officials/public figures?) Circuit court found intentional, actual malice, and was sufficiently outrageous. Supreme court: yes "patently offensive," yes "IIED," but court found that speech prevailed in the balance. "False" but not "fact". First amendment exists to protect offensive speech. Outrageousness cannot be used as a way around protection of the first amendment. Falwell standard. IIED not stated unless private figure. "ugliest bride" contest. Not newsworthy. Intent to injure. Intentional infliction. COURTS HAVE LEFT OPEN THE IDEA THAT "RELATIONAL" IIED MIGHT BE FOUND. Kelly V. William Morrow (cop in San Diego)Release Language The rights herein granted to you shall include the right to depict and/or portray meto such extent and in such manner, either factually or fictionally as you in your discretion and pursuant to any contract with me may determine COPYRIGHT SUBJECT MATTER FACTS, RESEARCH IDEASCHARACTERS GRANT FORMALITIES INFRINGEMENT COPYRIGHT--SUBJECT MATTER ORIGINAL WORKS OF AUTHORSHIP FIXED IN A TANGIBLE MEDIUM OF EXPRESSION Original = Originated With Author, I.E. Not Copied; Novelty Not Required NOT: Facts, Ideas, Scenes A Faire (Very Common Scenes In A Particular Type Of Story) Incentive. Ideas should be exploited. But also protected. Example: two songwriters right identical songs both have -- no infringement. High level of abstraction. Spy novel Comedy No one can such an idea or category. COPYRIGHT--INFRINGEMENT ELEMENTS Ownership Of Valid Copyrightable Material Copying Direct evidence Actual Copying Of Plaintiff's Work Rather Than Independent Creation. Indirect evidence: Access Sent to the office. Public access; published; on the radio. . Probative similarity example: map with a fake street Example: useless step in a computer program Unlawful Appropriation/ Substantial Similarity Look to the plaintiff original and compare Audience test." similarities of: plot; mood; character; pace; setting; (Similarity in settings deemed scenes a faire.) sequence of events; theme and dialogue. Beal v. Paramount -- "Coming to America" v. "The Arab Heart" case. "National Treatment." Courts In A Country Treat Foreign As Country's Own . In General-- Policy not to overprotect. Example: Miller v. Universal. Woman buried in kidnapping. Universal used the book as the basis for a screenplay. Similarities = Factual things. Xerox a history book -- this would infringe. Expression -- words used -- selection, or, arrangement. Verbatim translations are . Hughes. Historical theories are not protectable. Hindenburg. Research can be directly used by universal. Facts are not protectable -- Miller says: The expression used in writing the research is the only thing . COPYRIGHTIDEAS/CHARACTERS COPYRIGHT DOESNT EXTEND TO IDEAS, BUT ONLY TO EXPRESSION WHERE TO DRAW THE LINE BETWEEN IDEA (ABSTRACT) AND EXPRESSION (MORE CONCRETE, DETAILED) IS UNCLEAR PROTECTED AS PART OF A WORK, E.G. A Work Of Visual Art Or A Literary Work If Too Simple Or Abstract, A Character Is Little More Than An Idea (A Stock Character) COURTS SEEM TO DIFFER OVER TEST FOR CHARACTER COPYRIGHTABILITY 9th Cir.: Sam Spade casecharacter must constitute the story being told Graphic/visual characters more readily protectable "Air pirates". Underground comic exploiting disney characters. 2d Cir.: If a character is sufficiently well delineated (i.e. Described in sufficient detail) to constitute expression rather than idea, Its covered by copyright in the work where its delineated. Honda V. Mgm -- James Bond Case. Visual portrayal. The expression of the character is sufficiently integral to the story with sufficient detail. Defenses: Parody; Fair use. Difference between protection of literary character and the character. Mgm should only have in what they added such that it became "fixed medium." COPYRIGHTGRANT FORMALITIES TRANSFERS OF COPYRIGHT MUST BE In Writing, Signed By Owner Or Their Authorized Agent. 204 NONEXCLUSIVE LICENSES, CAN BE ORAL OR IMPLIED FROM CONDUCT. MAY BE INFINITELY BROKEN DOWN. Example: exclusive Right To Sell Class Notes On The Corner, Thursdays Between The Hours Of 7:30 And Eight O'clock. No One Else Can Do This. Licensee Has Standing To Sue In . Non-Exclusive Is Not A Transfer. May Be Oral, Implied. SEE, EG EFFECTS ASSOCIATES V. COHEN Trial Court Denies Infringement/Implies License Because: Defendant paid substantial sum/ Defendant requested the work Material delivered to defendant Intending that it be used This is a contract dispute regarding quality and payment Nonexclusive license is implied from plaintiff to defendant IDEA PROTECTION IDEAS NOT COPYRIGHTABLE OTHER THEORIES FOR PROTECTION: Express Contract Implied In Fact Contract Quasi-Contract (Implied In Law) Misappropriation Of Property Confidential Relationship SOME CAUSES OF ACTION-PREEMPTED BY FEDERAL LAW MOST VIABLE PROTECTION NOW: Contract Confidentiality IDEA PROTECTION--TOPICS AREAS OF CONCERN CIRCUMSTANCES Required For Contract/Confidential Relationship CHARACTERISTICS/Novelty Of The Idea Required For Protection What TYPE OF USE Supports Liability PREEMPTION IDEAS--CONTRACT PROTECTION EXPRESS CONTRACT (AGRMT. IN WORDS) May Be Written or Oral The Usual Contractual Requirements Buchwald V. Paramount. "Coming To America" Lawsuit #2. Breach Of Contract. "based upon." Court looks at the language of the contract. Analogizes from law. Access and similarity. Point of similarity or "inspired by." Example: the hero foils a robbery by using a broomstick. Factual nexus. Same director, same star, rejection of other screenplays based on the same idea. ORIGINALITY not required for express contract. That is a defense to a claim. Trigger for payment. FOR EXPRESS K, POSSIBLY ONLY USE OF MATERIAL ELEMENT OR INSPIRATION (BUCHWALD) . IMPLIED IN FACT (INFERRED FROM THE CONDUCT OF THE PARTIES) California (DESNY v. WILDER): Submission of an idea Conditions exist for use of the idea Defendant is aware of conditions Acceptance of submission w/knowledge, i.e., defendant has a chance to turn down the offer. Actual use Value Looks At SUBMISSION AS THE CONSIDERATION, So Novelty Not Required Trigger for Payment by: Actual Use Substantial Use (Substantial Similarity)--Some Scholars Argue It Is Required. Others Say Not Required. Some Cases Dont Seem To Require Desny V. Wilder -- Cave Movie. Desny has an idea which he tells to billy wilder's secretary. Phone call #1: "Blurts out" the idea when the secretary says that he has to tell. Phone call #2: Desny asks if they will pay if they use the idea. Secretary response "of course will pay." Desny reads treatment over the phone which the secretary transcribes in shorthand. Court will imply a contract and reasonable terms. "Reasonable value." Here, California will recognize a contract from the conduct of the parties. only between the parties to the contract. If a third party heard of this idea and used it, they would have no liability. NEW YORK: Implied in Fact NY Cts. Seem to apply the standard elements for an enforceable contract even for implied in fact contracts (E.g., definiteness, legal capacity and subject matter, mutual assent and consideration). Prob. Similarthe conduct considered in California shows some of those elements. Novelty required, at least as to the buyer Probably because the idea, rather than the service of disclosing the idea, is the consideration Idea must be concrete. The idea is consideration for a promise to pay. New York is more amenable to "misappropriation" i.e., property claims. Nadel -- Spinning Taz Case. Nadel and Apfel changed standard to "novel to purchaser," Because such an idea is of value to one who does not know it yet. Court looks to industry-standard in terms of toy submission. Caveat: "common knowledge" is imputed to the buyer. Murray/Cosby Show. Casebook = Misappropriation Case. Dismissed for lack of novelty. No material issue. Although the show is a breakthrough, it is an adaptation of existing ideas. Misappropriation -- Is More Like A Claim -- No Relationship Need. QUASI CONTRACT: IMPLIED-IN-LAW. NO CONTRACT ELEMENTS. UNJUST ENRICHMENT CLAIM BASED ON USE WITHOUT PAYMENT. MISAPPROPRIATION PROPERTY. LIMITED CIRCUMSTANCES. CHARACTERISTICS BY JX New York Ny: NOVELTY (Uniqueness, Not Previously Known) Novelty As To Recipient Required For: Express (NADEL -- spinning Taz) or Implied k (MURRAY -- Cosby show), confidential relationship "ORIGINALITY" as to the public for misappropriation NY: CONCRETENESS Prob. Required for implied k, confidential relationship California Probably not required for express k California: NOVELTY NOT REQD. For express or implied k (BLAUSTEIN/SHREW); Prob. Reqd for confidential relationship Cal: CONCRETENESS Not required for implied k, prob. Reqd. For confidential relationship California: abstract idea more accepted. Example: Blaustein. Plaintiff has the idea for Taming of the Shrew with Taylor and Burton. Contract is upheld even though there have been other Shakespeare movies with these particular actors. Problem with abstract: lack of material terms. Also -- if very abstract more difficult to prove actual use. CONFIDENTIALITY: NY & CALIFORNIA Prob. Not reqd for express k; Maybe reqd. For implied k; Required for confidential relationship. IDEAS--CONFIDENTIALITY -- two bases: CONTRACT OF CONFIDENTIALITY CONFIDENTIALITY MUST BE MADE CLEAR BEFORE SUBMISSION (FARIS -- sports quiz show) CONFIDENTIAL RELATIONSHIP--BREACH OF FIDUCIARY DUTY E.G. Partners, Principal/Agent, Etc. PREEMPTION OF IDEA PROTECTION CLAIMS BY FEDERAL LAW FEDERAL PREEMPTION BY COPYRIGHT LAW Express Preemption (17 USC 301): Copyrightable subject matter, and Right equivalent to copyright. If An Extra Element From Copyright Infringement, Then Not Equivalent GENERAL SUPREMACY CLAUSE PREEMPTION (STATE LAW AS AN OBSTACLE TO FEDERAL POLICY)? PREEMPTION OF IDEA PROTECTION IMPLIED CONTRACT CLAIM--CASES Cases Are Inconsistent Selby V. New Line Dealt w/express preemption Ideas are within subject matter of copyright, but not protected by copyright Contracts are sometimes not equivalent to a right of copyright But, if contract only protects or creates a right within the bundle of copyright rights (I.e. Reproduce, prepare derivative works, publicly distribute, publicly perform, publicly display, digital performance of sound recording), Then it is equivalent to copyright (not an extra element) Thus it is preempted. Here, the contract contained only a promise not to use, and not a promise to pay if a use was made. Thus, the contract is void anyway for lack of consideration. Wrench V. Taco Bell Like Selby, court found ideas to be within subject matter of copyright, but not protected by copyright But: contract containing a promise to pay = an extra element, is not equivalent to a right of copyright, so no preemption An Agreement NOT TO EXERCISE A RIGHT OF COPYRIGHT would be equivalent to a right of copyright, would be preempted Note: Most Contracts Involve A Promise To Pay Rather Than Simply An Agreement Not To Use TRADEMARKS, LANHAM ACT (ISC) & UNFAIR COMPETITION CAUSES OF ACTION TO PROTECT LITERARY AND PROGRAM TITLES ALSO IMPORTANT IN CONNECTION WITH MERCHANDISE ALTERNATE CAUSES OF ACTION FOR PROTECTING MUSICAL GROUP NAMES, AND CELEBRITY NAMES & SYMBOLS CAUSES OF ACTION TO PREVENT FALSE OR MISLEADING CREDITS/ATTRIBUTION UNFAIR COMPETITION & TRADEMARKS--DISTINCTIONS HISTORICAL BASIS--PALMING OFF (PASSING OFF) A Person Selling His Own Goods As Those Of Another -- Example: "Armani" Label On Cheap Suit. UNFAIR COMPETITION (CONTEMPORARY ) Broad Array Of Unfair Practices Deception/Likelihood Of Confusion Also Trade Secrets, Misappropriation, Dilution BOTH TM & UNFAIR COMPETITION ARE COVERED BY Common Law/State Statutes/ Federal Statute (Lanham Act) KEY: IS THERE A LIKELIHOOD OF CONFUSION? OR ACTUAL DECEPTION? (KING) TRADEMARK INFRINGEMENT-- ELEMENTS VALID, PROTECTIBLE MARK Any word, symbol, device Valid = used as trademark, not just to name or describe the product Protectable = distinctive OWNERSHIP BY PLAINTIFF LIKELIHOOD OF CONFUSION Normally Forward Confusion Public will be confused that junior (later) users work comes from the senior user Occasionally Reverse Confusion (Eg DREAMWERKS) VALIDITY & OWNERSHIP Definition--word, mark, symbol or device used to identify single source of goods/services and distinguish from other sources Likeness and image per se of a celebrity not protectable as a trademark (in re EPE) SPECIFIC IMAGE can be a trademark (Elvis Pose) Belongs to who FIRST USES THE MARK as a trademark for particular goods/services in a particular GEOGRAPHIC market FEDERAL TRADEMARK essentially gives broader, national protection signature performance of an artist not protectable as trademark for artist (Oliveira) But a piece of music can be a trademark (eg nbc tones) EXAMPLE: DREAMWERKS V. SKG. -- LIKELIHOOD OF CONFUSION. "Arbitrary" mark. Similarity of marks. Sight, sound & meaning. Sound and meaning exact. Sight extremely similar. Enough that a star trek convention customer is likely to be confused. Similarity of goods. Entertainment industry Trial needed. Convention company had a registered federal trademark. Common-law right by using the trademark in commerce. (STRENGTH) Inherently distinctive Fanciful (strongest), I.e., made-up word -- "Zima" or "Zazu" Arbitrary, Existing word without a relation to the product. "Apple Computer." Suggestive Connotation of product -- "At-A-Glance" calendars Non-inherently distinctive Descriptive (prob. Most celebrity names, titles) refers to a single thing (indexical) rather than a source for the product. All titles, even those with fanciful words in the name -- jabberwokky. Need SECONDARY MEANINGto be protectible Example: Coca-Cola Generic (not protectible) "Aspirin" or "escalator". "First Contact", title of a science-fiction classic short story. Now, generic for an entire sub-genre of science-fiction. Jenkins v. Paramount SECONDARY MEANING Typically, Multi-Factor Analysis, E.G.: Advertising expenditures -- Consumer studies Unsolicited media coverage of plaintiffs product -- awards, international press. Sales success Attempts to plagiarize -- Length and exclusivity of marks use INFRINGEMENT Test = LIKELIHOOD OF CONFUSION. ( SLEEKCRAFT, 9th Cir.; Comparable In Other Cases): Strength of mark Proximity/relatedness of goods Similarity between markssight, sound, meaning Actual confusion Similarity in marketing channels Type of goods/consumer care Intent of defendant Likelihood of expansion (bridging the gap) NOT JUST LICENSE. Steps Must Be Taken To Avoid Consumer Confusion, I.E., Disclaimer On Advertising. TM/UNFAIR COMPETITION-- Literary Titles Generally not registrable as trademarks--because identify work rather than sourcebut may be protectible But TV series titles may be registered as service marks May be protected without registration (e.g. Under Lanham Act 43(a), if secondary meaning is shown MPAA Title Registry (Protection By Agreement And Adr) Registry puts out a daily list. Seven days to protest/letter to object to the "same or confusingly similar" title. Private system of dispute resolution. Example: "cats don't dance" -- Dougherty worked on at turner. Confusion with "cats" the musical, property owned by Spielberg. Note: search directory of MPAA before becoming signatory. When in production look for potential trademark infringement claim. Material; tv show; business names; yellow pages; urls. Analysis under unfair competition and trademark law "!. A single title cannot be registered -- too descriptive. A series of works can be trademark registered -- "service marks" for tv series. Elements Of Claim (TRI-STAR v. UNGER -- River Kwai): Valid TM (i.e. Secondary meaning) Likelihood of confusion as to origin, sponsorship or approval Lanham Act 43(A) [15 Usc 1125](Doc.Supp.Pp. 1265) (A) CIVIL ACTION (1) Any Person Who, On Or In Connection With Any Goods Or Services, Or Any Container For Goods, Uses In Commerce any word, term, name, symbol, or device, Or Any Combination Thereof, Or Any false designation of origin, false or misleading description of fact, or false or misleading representation of fact, Which (A) is likely to cause confusion, or to cause mistake, or to deceive as to the affiliation, connection, or association of such person with another person, or as to the origin, sponsorship, or approval of his or her goods, services, or commercial activities by another person, or (B) in commercial advertisingmisrepresents the natureof his or her or another persons goods Shall Be Liable In A Civil Action By Any Person Who Believes That He Or She Is Or Is Likely To Be Damages By Such Act. TRI-STAR V. UNGER -- RIVER KWAI CASE. Strong Mark. Clear Secondary Meaning, Although Other Things Had The Name "Kwai" -- Articles, Books. Title report -- showed many uses. When many works have the same words (sight, sound, and meaning) they usually do not have a secondary meaning. Court: "Plagiarism Is Greatest 'Conclusive' Evidence." Thus unger's plagiarism is conclusive for the judge. Equals unger's bad faith. Factors In Unger's Favor: Name of book same as the name of his movie; Rights fairly acquired ; Registered with the mpaa. Note: "Initial Interest Confusion." Example: Mistyped Domain Name -- Cutting-Edge Stuff. Dougherty: If Confusion Exists, Obtain A Release From The Owner Of The Senior Trademark. Example: MGM "Monsters" movie v. "Real Monsters." NOT JUST LICENSE. Steps Must Be Taken To Avoid Consumer Confusion, I.E., Disclaimer On Advertising. GROUP NAMES -- BELL V. STREETWISE. Group Names Protectable As Service Marks. Disputes Over Who Has Rights To The Name. When Members Leave The Group. Right is owned by whoever uses the name first. "New edition" used the name first. TRADEMARK PROTECTION CHARACTERS/ MERCHANDISE An Ingredient Of The Product Itself Has Come To Be Potentially Treated As A Trademark, If It Symbolizes The Source Of The Product (I.E. Secondary Meaning) Characters: Name, nickname (bionic man, dr. Seuss), Physical appearance (darth vader, r2d2), Costume (dallas cowboys cheerleaders)(dc v. Filmation) NOT Physical Abilities, Personality Traits Merchandise: Symbols associated with specific ingredients of an entertainment program (wb v. Gay toys) But Not FUNCTIONAL Aspects-- Danger: could be used to extend monopoly protection to unpatented devices and design features Functional= Essential to the use (dictated by the function to be performed) or affecting the cost or quality (i.e. Permitting manufacture at a lower cost) TRADEMARK DILUTION Broader Than Classic Infringement Dont need competition between products Dont need to show likelihood of confusion, just dilutionreduction of publics perception that the mark signifies something unique or particular State Law & Federal: Lanham Act Added 43(C) In 1996 (Ftda) Elements (May Vary Per State Law) Plaintiff owns famous mark (very distinctive, more than just secondary meaning) Defendant commercial use in commerce Defendant adopts after it became famous Likelihood (some states) or actual (ftda) dilution Blurringloss of distinctiveness, public associates mark with both products Tarnishmentpublic will make negative associations with mark (often sex, illegal activity, but not necessarily) Per Se Dilution? Registration Of Domain Name Using Anothers Trademark. Maybe, If Deceptive Or Intentional TRADEMARKSPROTECTING CELEBRITY IDENTITY NAMES, SPECIFIC IMAGES OF CELEBRITIES MAY BE PROTECTABLE AS TRADEMARKS OR UNDER 43A MUST BE USED AS TRADEMARKSI.E. TO IDENTIFY SOURCE, NOT JUST DESCRIBE THE CELEBRITY Likelihood Of Confusion As To Source, Approval Or Sponsorship, Or A False Statement Of Fact Or Designation Of Origin DISTINGUISH RIGHT OF PUBLICITY BASED CLAIM Whats Protected? Tmgoodwill of seller Rt. Of pub.icitypersona of human being Prior Exploitation Needed? Tmyes, to establish valid, protectable mark Rt. Of publicityno Test For Infringement? Tmlikelihood of confusion Rt. Of publicityidentification of person; often a use in trade/advertising Transfer? Tmcant assign in gross, only as part of sale of goodwill. Can be licensed (nd. To retain quality control) Rt. Of publicitycan assign or license ESTATE OF ELVIS PRESLEY V. RUSSEN Numerous Claims Vs. The Big El Show, An Unauthorized Elvis Impersonator Show In CasebookC/L Trademark (Service Mark), 43a Unfair Competition Plaintiffs Claimed Marks Elvis Elvis Presley Elvis in concert The king -- this is not protectable. TCB (with and without lightning bolt) Elvis images Elvis pose Defendants Uses The big el show With images resembling elvis TCB (with and without lightning bolt) Images of Larry Seth in concert Some resemble Elvis pose Logothe big el show with drawing resembling elvis Unfair CompetitionClaimed Also Re Performance Itself And Re Advertising Performance itself not unfair competition Advertising Must Make Clear What It Is, Not Associated With Elvis Presley Ent. TRADEMARKSSOME DEFENSESFAIR USE Fair UseUsing The Mark In Its DESCRIPTIVE Sense, Usually To Describe The DEFENDANTS Product Or In Comparative Advertising. E.g., describing condoms on packaging as ribbed didnt infringe sensi-ribbed mark Example: if product is used in the manner intended in the film, then no claim. Example: 20th century fox film. Character wears major league baseball in movie. MLB sued. Fox paid, but Dougherty felt it was a mistake. Example: slip and slide use without the water = lost the case. Counter-example: character drowned in the milk filled bath; Knudsen milk carton next to victim. No infringement but, maybe tarnishment? Nominative Fair UseUsing The Mark To Identify The PLAINTIFFS Product Itself New Kids On The Block --900 Number Call-In To Newspaper. Factors Plaintiffs product not readily identifiable without using the trademark Use only as much as reasonably necessary to identify plaintiffs product No suggestion of sponsorship or endorsement Essentially, These Are Non-Trademark Uses Of Trademarks TRADEMARKFIRST AMENDMENT FIRST AMENDMENT DEFENSE RE TITLES: Courts Vary In How To Handle. Typical Tm Use In Commercial Speech Not Likely To Be Protected If Likelihood Of Confusion SOMETIMES (ESP. RE USE IN TITLE)(ROGERS v. GRIMALDI): IS THERE ARTISTIC RELEVANCE TO THE MARK USED? If NotUsual Analysis (I.E. Likelihood Of Confusion). If So: IS THE USE EXPLICITLY MISLEADING? If NotNo Infringement. If So, Might Infringe. Rogers v. Grimaldi -- Ginger Rogers sues for infringement in the title "Ginger & Fred." Ginger loses. Here, title is part of expression of a work. NB: RE DILUTION Express Carve-Outs In Statute, Including Noncommercial Use, Interpreted In MATTEL As A Use In Protected Speech. Example: "Barbie Girl" Song. CREDITS ATTRIBUTION OF CREDIT FOR CREATIVE CONTRIBUTIONS CAN BE VALUABLE, AND IS AN IMPORTANT ELEMENT IN MANY ENTERTAINMENT INDUSTRY CONTRACTS IN GENERAL GENERALLY, THERE IS NO OBLIGATION TO GIVE, OR RIGHT TO RECEIVE, CREDIT FOR WORKS (U.S.) RIGHTS AND OBLIGATIONS RE: CREDIT DERIVE FROM 3 SOURCES: Individual Contracts Collective Bargaining Agreements Statutory And Common Law CREDIT--INDIVIDUAL CONTRACTS CONTRACTUAL OBLIGATIONS/RIGHTS ARE ENFORCEABLE TWO ISSUES: Contract Interpretation: What Happens If The Contract Is Silent Or Unclear Regarding Credit? If contract unambiguous, courts wont imply obligation vargas Later decisions suggest that if k silent on an essential term, might accept parole evidence of intent, even if integrated. REMEDIES: WHAT REMEDIES ARE AVAILABLE FOR BREACH OF A CREDIT OBLIGATION? Speculative? See SMITHERS. SMITHERS -- CONTRACT DISPUTE OVER BILLING. Original Agreement: Only Three Names In Main Titles. Eventually, 10-11 In Main Titles. Breach Of Contract; Tortious Breach. $2 million in punitive damages reduced to $1 million. Appellate Court Affirms. Reasons: Bad faith action. Mgm threatened the actor with blacklist if he didn't forgo the contractual obligation. Mgm never had the intention to honor the contract. Motive to intentionally frustrate the obligee's enjoyment of contract rights. MGM: Damages Are Too Speculative To Award. However, the jury sees the relation between credit and financial future of the actor. Noncontractual Obligations. United States Courts Reluctant To Imply Obligation. VARGAS -- SUES ESQUIRE MAGAZINE FOR CHANGING "VARGAS GIRL" TO "ESQUIRE GIRL". Breach Of Contract; Unfair Competition. Esquire Owns The Art, The Name "Vargas"; "Vargas Girl;". Vargas: Implied Obligation -- Court: Implied Obligation Can Be Found Only Where The Creator Has Retained Ownership In The Work. Here, Vargas Sold All Rights. Where There Is Ambiguity: Implied intention is one arising from language used or situation created by the language. Unfair Competition -- Misappropriation: Taking And Using Property As One's Own, And Thereby Unjust Enrichment. No confusion here, because esquire is obviously not the artist. Moral Rights: Includes Right To Attribution; Right To Paternity. Not Recognized In The Us. CREDITS--COLLECTIVE BARGAINING AGREEMENTS GUILDS REGULATE CREDITS, SOMETIMES IN GREAT DETAIL Wga Film Credit Process Arbitration procedures to resolve disputes Very limited judicial review. FERGUSON. MARINO CASE. OBJECTS TO THE PROCESS/OUTCOME AFTER THE FACT. Procedure: Producers Send Notice To The Guild Saying To Whom They Intend To Give Credit. All Drafts Are Sent, And Any Other Material. Procedural Objections Must Be Brought Before The Process Starts. Courts Are Reluctant To Interfere In Guild/Private Arbitration. Limited judicial review. There may not be the same equal protection guarantees as in court. CURRENT ISSUES: Disatisfaction With Writer Credits. Film By Credit Interplay With Statutory Law Re: Misleading Credits CREDITS--STATUTE/COMMON LAW GENERALLY Right To Require Or Claim Credit--Omission Of Credit Right To Prevent Or Disclaim Credit--According A False Or Misleading Credit CREDITS--STATUTE/COMMON LAW--RIGHT TO CLAIM/OMISSION OF CREDIT Generally--In U.S., No Right To Require Credit Absent Agreement. But See Visual Artists Rights Act-17 Usc 106a. Only instance of a "moral right" in us law. OMISSION Per se, not usually misleading or false under unfair competition law. Vargas. Not intentional infliction of emotional distress (requires outrageous conduct + severe emotional distress). Cleary CREDITS--STATUTE/COMMON LAW--MISLEADING CREDIT Unfair Competition Palming Off. Trying to pass off my goods under the label of another. E.g. Sell my cheap knock-off as an Armani suit (with an Armani label). Can be express or implied (use photos of Armani suit in my ads). Reverse Palming Off Taking credit (or giving credit to a third party) for someone elses work. E.g.put my label on a real Armani suit Can be express or implied(just removing the label) CREDITS--STATUTE/COMMON LAW--MISLEADING CREDIT--RIGHT TO DISCLAIM CREDIT Credits, If Given, Can Be Actionable Unfair Competition If They Are False Or Misleading State unfair competition law, lanham act 43(a) BUT DASTAR Casts Doubt On Viability Of 43(A) Claims, Unclear What Will Be Its Effect On State Law Unfair Competition Claims EXAGERATING A PERSONS INVOLVEMENT In Creating A Work May be misleading/deceptive. Actionable palming off. Follett, king Might survive dastar; see 43(a)(a): likely to cause confusionas to the affiliationof such person with another person Substitution of anothers credit for plaintiffs may be express reverse palming off. Montoro. Giving credit to some, but not all authors may be express reverse palming off. Lamothe. DASTAR May Signal Limit To These Copyright Infringement Context-- Copier gives self credit--is that palming off? 9th cir.: not unless plaintiffs work was bodily appropriated. Cleary. Rejected By USSC In DASTAR, At Least As To Public Domain Works. KING V. INNOVATION BOOKS. -- "LAWNMOWER MAN" CASE. Issue: "Stephen King's Lawnmower Man" In Title. Plus: "Based On The Story By" Credit. Court: If Attribution Is False On Its Face, Then Likelihood Of Confusion Under The Lanham Act Is Not Necessary. Thus possessory credit injunction is granted. That puts a valuable label on a movie not created by that author. "Based On" Credit Is Allowed. Large parts of the original story are in the movie. Other example: star makes a cameo appearance in a film. Name is placed above the title = false advertising. SMITH V. MONTORO. Actor "Smith" In Film. Third Party Is Giving Credit For That Role. Failure To Credit Is Not Actionable. SONGWRITER CREDITS. If Not All Authors Are Credited (Willie Nelson's Name Is Only Writer Credited When He Only Wrote The Title.) Example: Infringement Context. Duncan Writes A Song -- Dougherty Takes Credit. Reverse Infringement Example: Dougherty Partially Copy's Duncan Song. Both The Copyright Case And Unfair Competition/Lanham Act.. RECENTLY: 9TH CIR. -- LITERAL COPYING OF SUBSTANTIAL PARTS, I.E., "BODILY APPROPRIATION" = REVERSE PALMING OFF/LANHAM ACT PROTECTION. DASTAR: CHANGES THIS RULE. "Crusade In Europe" -- Eisenhower/Ww Ii Series Owned By Fox. Copyright Is Allowed To Lapse. The film is in the public domain. Thus, no copyright claim. Trademark/Lanham Act Claimed By Fox. Bodily appropriation of large portions, normally protected by Lanham Act. Reasoning: confusion as to origin. Supreme Court Ruling: "origin" means the physical item; does not mean authorship. Copyright Owner Has Adequate Protection Under Copyright Law For Direct Copying. Impractical To Require Lanham Act Protection For Something After It Is In The Public Domain. Results Would Be "Perpetual Unfair Competition" Which Would Result In A De Facto Trumping Of Law. LANHAM ACT 43(A) [15 USC 1125](DOC.SUPP.PP. 1265) (A) CIVIL ACTION (1) Any Person Who, On Or In Connection With Any Goods Or Services, Or Any Container For Goods, Uses In Commerce any word, term, name, symbol, or device, Or Any Combination Thereof, Or Any false designation of origin, false or misleading description of fact, or false or misleading representation of fact, Which (A) is likely to cause confusion, or to cause mistake, or to deceive as to the affiliation, connection, or association of such person with another person, or as to the origin, sponsorship, or approval of his or her goods, services, or commercial activities by another person, or (B) in commercial advertising or promotion misrepresents the nature, characteristics, qualitiesof his or her or another persons goods services, or commercial activities Shall Be Liable In A Civil Action By Any Person Who Believes That He Or She Is Or Is Likely To Be Damages By Such Act. CONTENT CONTROL BY CONTRACT Contractual Approval, Consultation And Creative Control Rights Are Enforceable. Cf. Reds & Sicilian. See, e.g., director agmt., par. 41. Doc.supp. Pp. 625-626 Some Courts Imply Obligation To Notify Public If Work Is Modified. CHESLER The Sicilian -- Michael Cimino. Contractual "final cut" subject to "good-faith consultation" with producers. Contractual time limit: 125 minutes. Delivered: 155 minutes. Finance company: cut it or we will. Cimino cuts all the violence. Court finds this is not in good-faith. Thus, material breach and finance company gets final cut. "Reds" Is delivered at 195 minutes. No "good-faith" requirement in the contract. Beatty wins. Preminger. Director has "final cut." But there is no such provision for the TV rights. Industry custom is to cut films for television. Thus, Preminger loses. MORAL RIGHTS. Turner V. Huston. French Court. Colorization of "the blackboard jungle". Tv broadcast in france of colorized version. Violates french public policy. Hurts the reputation of the artist. Moral rights are not assignable or waivable. Thus, they cannot be assigned during the sale to another company. Heirs of John Huston awarded sizable damages. BY COLLECTIVE BARGAINING AGREEMENT Some Guild Agreements Provide Various Types Of Creative Control. E.g. Dga directors cut and related rights. Dga mba 7-501 et seq (doc.supp. Pp. 29-40) CONTENT CONTROL--STATUTE/COMMON LAW Moral Right Of Integrity Required Under Berne Convention Art. 6bis U.S Has Only Expressly Granted As To Work Of Visual Art (Vara) Other Causes Of Action May Provide Equivalents Contract law: contract requiring credit may imply obligation not to so alter work that credit attribution is false. Granz. Granz. Classical recording master disk case. Implied in the contract: cannot change the product so that the "credit" or authorship would become false. Copyright law--exclusive right to prepare derivative works. Gilliam. -- is retained in the written script. Cutting the final product is considered an unauthorized revision. Author retains artistic control over the script. Unfair competition/Lanham act 43a: false designation of origin. GILLIAM. -- Court: "emasculated" the final product so much that = unfair competition/false advertising. Again, DASTAR May Limit. CONTENT CONTROL--SEXUAL CONTENT First Amendment Limits Government Contol Over Content Obscenity May Be Controlled Or Banned Miller V. California Obscenity Test: Applying contemporary community standards, work as a whole appeals to prurient interest Measured by contemporary community standards, work depicts or describes in a patently offensive way sexual conduct specifically defined in applicable state law Work, taken as a whole, lacks serious literary, artistic, political or scientific value Broadcast Of Merely Indecent Language Can Be Regulated. PACIFICA Govt. Can Regulate Material Obscene As To Minors, But Not If Also Limits Adult Access To Non-Obscene Material. GINSBERG, ACLU v. RENO. CONTENT CONTROL--VIOLENT MATERIAL First Amendment Limits Regulation Media Liability For Acts Of Imitative Violence Generally, claims are for intentional tort or negligence, and liability has not been found A duty to protect from criminal acts by third parties might arise when Material is INTENDED to cause imitative violence and such behavior is imminent and forseeable. WEIRUM. OLIVIA N. BYERS. First Amendment Protects Unless Incitement To Imminent Lawless Activity (BRANDENBERG v. OHIO): Speech directed or intended toward goal of producing imminent lawless conduct, and Speech is likely to produce such imminent conduct. Not abstract advocacy, or directed to some indefinite future time. RIGHT OF PRIVACY/PUBLICITY & FALSITY/ACTUAL MALICE ACTUAL MALICE IN PRIVACY/PUBLICITY Intrusion: Generally No Speech Or Falsity But generally only covers intentional intrusion Disclosure: No falsity/malice. Legitimate public interest defense. Lose news defense if false statement of fact. Lerman, eastwood, spahn False Light: Falsity/malice like defamation Appropriation/Publicity: Generally no falsity, so malice not relevant. But: Lose news defense if false statement of fact. Lerman, eastwood, spahn But plaintiff must prove requisite degree of FAULT. Otherwise, protected by 1st amend. If fiction, but not held out as truth, probably not actionable. Guglielmi, polydoros FIRST AMENDMENT--GENERAL GOVERNMENTAL ACTION-- 1st Amend. Only Limits Govt. Action. But Invoking Courts To Enjoin/Punish Speech Is Enough. DOES LAW IMPACT SPEECH? If Regulates Other Conduct With Only Incidental Impact On Speech, Might Not Undergo Further Scrutiny IS THE LAW CONTENT-BASED OR CONTENT-NEUTRAL? 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