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IP Law In Practice
IP Developments
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  April 2009


 
GRR Intellectual Property News is a newsletter issued by Gottlieb, Rackman & Reisman, P.C., an IP boutique.
 
The purpose of this newsletter to keep in touch with our friends and colleagues as well as provide practical information and news relating to Intellectual Property law.
 
Please forward this newsletter to anyone who might be interested. 
 
GRR NEWS
GRR Client Successfully Appeals From Copyright Office's Denial of Registration

George Gottlieb and Lesley Matty represented Chilewich Sultan LLC in its successful appeal of a Copyright Office decision refusing to register Chilewich's copyright rights in one of its woven placemats.  Chilewich regularly applies to register its copyright rights in the designs incorporated into its products with the Copyright Office.  Virtually all of these applications are accepted by the Copyright Office, which then issues a Certificate of Registration.

In this case, Chilewich filed an application with the Copyright Office to register its rights in the design shown below.    

                          Tuxedo Stripe

The Copyright Office refused to register this work on the ground that it was not sufficiently original and lacked the authorship necessary to support a copyright claim.  
GRR then appealed within the Copyright Office, arguing that the combination of the textured variations, the alternating widths of dense weave and sheer material, and unique relationship between positive and negative space in the "sheer stripes" of the design, results in a work of copyrightable authorship created by artistic decision.  After considering the arguments put forth by GRR, the Copyright Office reversed its rejection and issued a Copyright Certificate to Chilewich.

These events reveal that if, after the submission of a relatively simple design, the Copyright Office issues a denial of registration, it is possible to submit substantive arguments to the Copyright Office to convince them that what they think is a "simple" design is in fact quite artistic and deserving of copyright protection.  It pays to persevere.
GRR Attorney Presentations 
On May 18, 2009, Amy B. Goldsmith and Jeffrey M. Kaden will speak at the Surtex Licensing Show, to be held at the Jacob K. Javits Center.  The topics they will cover include basic intellectual property rights (patents, copyrights and trademarks) and the mechanics of licensing from the perspectives of both the owner/ licensor and the licensee/manufacturer.  More information is available here, and registration information can be found here.

Maria Savio was a speaker and panelist at a town hall meeting held at the School of Art & Design of the Fashion Institute of Technology (FIT) on March 10, 2009.  The town hall meeting addressed the problems faced in Intellectual Property...In An Age When Practically Anything Can Be Copied, Pasted, Downloaded, Sampled And Remixed, and was moderated by FIT's Assistant Dean of Art & Design.
IP LAW IN PRACTICE 
New Domains For Sale

The Internet Corporation For Assigned Names and Numbers (ICANN) has announced that it will begin accepting applications for new top level domains (TLDs). Applicants will be able to create the portion of a domain name to the right of the "dot". ICANN will thus permit the registration of domain names such as .moon and .home. Although there is no guarantee that applicants will be awarded the top level domain (TLD) for which they apply, applicants are free to apply for any TLD not currently in use.  It does not take much imagination to envision the potential for conflicts with trademark rights presented by the application process, with applicants able to apply for .nike or .coke. ICANN has not stated when it will begin accepting applications.

At its March meeting in Mexico City, ICANN approved the establishment of a recommendation team to develop and propose solutions to the trademark protection issues raised by the introduction of new TLDs.  The recommendation team is to prepare a draft report by April 24 and to produce a final report by May 24 so it can be considered at ICANN's next meeting, in June.  No matter what safeguards are recommended, trademark owners and their representatives will likely need to monitor the application process to make sure that applicants are not awarded TLDs that conflict with trademark rights.  

According to a draft guidebook for applicants prepared by ICANN and posted on its website, applicants for new TLDs will have to submit an application, including copies of audited financial statements, along with an application fee of $185,000 (the high application fee might prevent the filing of frivolous applications by applicants intending to register someone else's trademark as a TLD).

More information regarding applying for new TLDs can be found on ICANN's website.
  
For further information, contact Marc P. Misthal.
All Eyes Are On...You!

Today, almost everyone has surfed the internet. Many people do not know that every click is monitored by private companies, which use the data they collect to create targeted advertising.  A class action lawsuit recently filed against NebuAd and other Internet Service Providers in a federal district court in California, Valentine v. NebuAd, et al, No. CV 08 5113 (ND Cal. 2008), may determine whether such "behavioral advertising" is legal.

The lawsuit claims that the defendants intentionally intercepted online communications, without notice or consent, and used the data to create targeted advertising, in violation of federal and state law. The case is in its early stages so no decision has been rendered yet.

In view of the uncertainty surrounding the legality of "behavioral advertising," businesses gathering data on Internet users should consider following the Federal Trade Commission's recently issued guidelines. Those guidelines (which can be found here) state that businesses collecting data over time should (1) explain the policy and provide an opt-out feature; (2) keep the data safe and for a limited time; (3) gain consumers' consent for use of data collected before the new policy was implemented; and (4) gain consumers' explicit consent for use of data for behavioral advertising. The FTC Commissioner warned that if businesses don't comply and attempt to protect consumers' privacy, a new federal law implementing the policy may not be far off.

Both consumers and businesses need to be careful-consumers need to be careful about what information they permit to be collected, and businesses need to be careful about what they do with the information they collect. 

For further information, contact Amy B. Goldsmith.
Lower Fees for European Community Trademarks

If you have been thinking about filing a European Community Trademark ("CTM") application covering the 27 Member States of the EU, do so before May 1, 2009 to decease your overall costs.  On May 1, there will be an increase in the application filing fee but the final registration fee will be eliminated entirely.  As a result, you can file before May 1 at the lower application filing fee and nevertheless reap the benefit of not paying a registration fee when the mark registers.  This results in more than a 40% savings on CTM filing fees, making the CTM the best bargain around.  Use of the trademark is not required to secure the registration.  The registration lasts ten years from the date of filing.  Also, bona fide use on a reasonable scale in a single Member State is normally sufficient to maintain the validity of the CTM registration throughout the EU.  We encourage you to take advantage of this special time to file. 

For further information, contact Maria A. Savio.
IP DEVELOPMENTS
Sounds Registrable as Trademarks Only with Proof of Acquired Distinctiveness

In re Vertex Group LLC, Serial Nos. 76/601,697 and 78/940,163 (TTAB 2009)
To be registrable, a sound must function as a trademark, be non-functional and have acquired distinctiveness.  Vertex Group LLC ("Vertex") markets and sells personal security devices, such as bracelets, which emit a loud alert signal.  Vertex applied to register its alert sound as a trademark, but after reviewing Vertex's application, the Trademark Office refused to register the alert sound.  Vertex appealed the refusal to the Trademark Office's Appeal Board, which affirmed the refusal.  The Appeal Board explained that while sounds may be registered as trademarks (examples of sounds that have been registered as trademarks can be found here), they can only be registered when an applicant proves that the public associates the sound with a single source.  Since Vertex had not sought to prove that the public associated the alert sound with a single source, the alert sound was not entitled to registration.  Further, the Appeal Board explained that since the sound is essential to the use of Vertex's products, the alert sound was unregistrable because it is functional.  Additionally, the Appeal Board explained that the alert sound is commonplace and did not indicate a particular source, and therefore could not function as a trademark.  Thus, even if Vertex had shown that the public associated the alert sound with a particular source, it would not have been entitled to registration.

For further information, contact Marc P. Misthal.
Another Blow to Business Method Patents

In re Ferguson, No. 2007-1232 (Fed. Cir. March 6, 2009). The Federal Circuit Court of Appeals continued to erode patent rights in the business method patent arena in its recent decision, In re Ferguson.  In re Ferguson involved an appeal from the U.S. Patent Office in an application with claims directed to both a method of marketing and a marketing paradigm for bringing products to market.  The court held that Ferguson's method claims did not meet the "machine-or-transformation" test.  The test provides that a claimed process is eligible for a patent if it is tied to a particular machine or apparatus or if it transforms a particular article into a different state or thing.  The Court held that the process claims met neither test because they were not tied to a machine and because transformations of public or private legal obligations or relationships are not transformations of physical objects or substances as required by the transformation test.  As to the paradigm claims, the court held that these claims also did not fall within any of the four classes of patent-eligible statutory subject matter - process, machine, manufacture, or composition of matter - finding in particular that they did not recite a "concrete thing consisting of parts" and were an "abstract idea - a business model for an intangible marketing company." 

For further information, contact Steven Stern.
ON THE LIGHTER SIDE
Court Asked to Decide if "Pull My Finger" is a Protectable Trademark 

In a dispute between two distributors of Apple iPhone applications, a Federal District Court in Colorado has been asked to decide whether the phrase "Pull My Finger" is protectable under trademark law.  The dispute started when InfoMedia, Inc. began using the phrase "Pull My Finger" to advertise its "iFartMobile" iPhone application, which allows users to select a variety of flatulence sounds for their iPhone.  Air-O-Matic, Inc., which sells its own flatulence IPhone application under the name "Pull My Finger" took offense, and threatened to sue InfoMedia for trademark infringement.  InfoMedia then decided to bring a declaratory judgment lawsuit arguing that the phrase "Pull My Finger" was not protectable as a trademark.  A copy of the complaint can be found here.
 
The court has yet to rule in this important case, which was filed last month.  We will follow this case, from a safe distance, and let you know how it turns out in future editions of this newsletter.

For further information, contact Richard S. Schurin.
Voo-Doo Dolls Depicting French President are OK to Sell Only if Seller Gives Notice that  Dolls "Constitute an Attack on President's Dignity"
A French appellate court recently held that the sale of a voo-doo doll in the image of French President Nicolas Sarkozy, complete with needles, came within the "right to humor" as recognized under French law.  However, the court ruled that such dolls could only be sold if the package carried a bright red sticker stating that the doll "constitutes an attack on Mr. Sarkozy's dignity."

K&B Editions, the seller of the doll, was happy with the result.  It gained valuable publicity, and the doll, with the sticker attached, has become a collector's item.   
Whether similar voo-doo dolls in the image of, for example, Wall Street executives, would be permissible in the United States has not yet been decided.  

For further information, contact Richard S. Schurin.
 
Intellectual Property News Editorial Board: Richard S. Schurin (rschurin@grr.com), Marc P. Misthal (mmisthal@grr.com), Steven Stern (sstern@grr.com) and Yuval H. Marcus (ymarcus@grr.com) of Gottlieb, Rackman & Reisman, P.C.

Suggestions, questions and comments should be directed to the Editorial Board by email or telephone (212) 684-3900.

For over thirty-five years, Gottlieb, Rackman & Reisman, P.C. has provided legal advice and guidance on all aspects of patent, trademark, copyright, and unfair competition law, tailoring its counsel to the specific needs of its clients. 
 
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