FTC issues new guidance for advertising and marketing in the online and mobile world

Repost from E-Commerce and Privacy Alert

By Scott W. Pink

On March 12, 2013, the Federal Trade Commission issued its long-awaited update to its 2000 guidance on disclosures in online marketing and advertising.

The guidance, entitled .com Disclosures: How to Make Effective Disclosures in Digital Advertising, not only reaffirms many of the FTC’s longstanding principles for effective online disclosures, but also provides guidance as to how those principles will be applied to new technologies that have emerged since 2000, such as mobile phones and tablets with more limited space, banner ads and multimedia messaging, and social media platforms such as Facebook and Twitter.

The FTC has broad powers under Section 5 of the FTC Act to protect consumers from “unfair and deceptive acts or practices.”i Under the FTC Act, the FTC has long required effective disclosures for claims that would otherwise be deceptive or misleading without them. .com Disclosures is designed to help businesses comply with the FTC Act by providing examples and direction on how to avoid unfair and deceptive practices through appropriate disclosures in their online and mobile marketing.

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Kardashians' Embroiled In Trademark Disputes Over KHROMA

By Erin Wright Lothson

The famous Kardashian sisters are making news again, but this time not for their well-known reality television show Keeping Up With the Kardashians. Kim, Kourtney and Khloe Kardashian launched a line of personal care and makeup products in 2012 under the mark KHROMA, and their beauty care products are currently sold at nationwide retaliers including CVS, Ulta, Sears and Kmart. However, the Kardashian sisters are being sued in federal court for trademark infringement for use of the mark KHROMA.

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The "Copy" Right in Australia

By Kathryn Purcell-Hennessy (Brisbane, Australia)

Introduction

Internet use in Australia is widespread, with the Australian Bureau of Statistics reporting that in 2010-11 (the latest figures available), more than 50% of Australians aged between 15 and 34 created online content and downloaded videos, movies or music. More than 68% of Australians in those age brackets listened to music or watched videos or movies online and over 75% used the Internet for social media and online gaming in the same period. The Internet hosts increasing volumes of user-generated content, and encourages use of copyright materials in emerging ways, which may infringe copyright.

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Beyonce and Jay-Z's "Blue Ivy Carter" Trademark Still Has Chance

Media outlets have been buzzing over the purported denial of Beyonce and Jay-Z’s BLUE IVY CARTER trademark.  On October 16, 2012, the United States Patent and Trademark Office (“USPTO”) granted a federal registration to Veronica Morales, a Boston-based wedding planner, for the trademark BLUE IVY (U.S. Registration No. 4224833) covering event planning services. Morales, who claims use of the BLUE IVY trademark since 2009, obtained her federal registration before Beyonce and Jay-Z despite filing her federal application one month later.  A number of reporters incorrectly state that Morales’ BLUE IVY registration has derailed any opportunity for Beyonce and Jay-Z to secure rights to, let alone a federal registration for, their BLUE IVY CARTER trademark. Of course, such an assertion demonstrates a clear misunderstanding of the highly specialized and nuanced area of trademark law.

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Avoiding Illegal Lotteries in Social Media Promotions

Companies are becoming increasingly innovative in promoting and conducting contests and sweepstakes via social media sites such as Facebook, Twitter, Pinterest, and Instagram.  However, companies engaging in social media contests or sweepstakes must ensure that their promotions are in compliance with federal and states laws as well as the specific platform guidelines, and be particularly careful not to inadvertently organize their promotions as an illegal lottery.  Avoiding the creation of an illegal lottery is one of the biggest challenges of organizing a social media promotion.

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Choosing the right battles: DLA Piper's Radiance A. Walters on how to avoid the "trademark bully" label

Reposted from Intellectual Property Magazine, July 12, 2012

This article discusses the increasingly important role of social media in trademark enforcement efforts, and provides effective tips and strategies for corporate counsel to create a solid, value-driven enforcement strategy and avoid the "trademark bully" label. 

Read here: Social Media and Trademark Bullying

 

New Technology, Privacy and Sourcing Blog: Technology's Legal Edge

Reposted Client Alert 

We are delighted to introduce DLA Piper’s newest blog, Technology’s Legal Edge™, which addresses the global issues facing companies in the areas of e-commerce and social media, IT sourcing, outsourcing, and privacy and data security. We offer timely legal perspectives on cutting-edge issues in these dynamic areas of law.

Contributing to the blog are members of DLA Piper’s leading global Technology, Sourcing and Commercial practice. Among their recent posts:

“How tech startups can protect IP” – a Bloomberg interview with Mark Radcliffe

DLA Piper’s Global Data Protection Laws Handbook – now available online

“Australia to introduce substantial reforms to privacy law” – an explanation of new legislation to be presented to Parliament

FTC issues final privacy report – sets forth best practices, calls for legislation

We hope this blog will become a practical resource for your business.

From the Experts: Avoid Pitfalls of Social Media Contests and Sweepstakes

Reposted from Corporate Counsel Magazine

By Radiance Walters and Debbie Rosenbaum

In 2012, marketing teams will spend less time defining the term “social media” for corporate executives and more resources justifying increased expenditures in cyber platforms that have questionable returns on investment. Despite the unknown value of social media, conventional wisdom seems to suggest that companies require some form of social media presence. Frankly, a lack thereof sends red flags to consumers that a brand is unsophisticated or out of date.

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Whose followers are they, and how much are they worth?

INTELLECTUAL PROPERTY AND TECHNOLOGY ALERT

By Joshua Briones and Patrick S. Park

A judge ruled last week that PhoneDog.com, a web-based community of cell phone information, has properly pled a trade secret and conversion claim arising out of Phonedog’s allegations that it is entitled to certain Twitter followers that a former employee had built up during his four years at the company, where he worked as a blogger. 
 
The case raises at least two questions.  First, who owns a company Twitter account?  Second, how much is a Twitter follower worth?  

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Does Social Media Clash with Luxury Brands?

Reposted from DLA Piper's Law à la Mode Edition 4 - Winter 2011

By:  Michael K. Barron, Sarah Phillips and Nadea Taylor (Boston and London)
“AdWords,” the paid, subscription-based Google referencing service which allows users to advertise their companies alongside Google search results, has recently been the subject of much legal scrutiny.  In late September, the European Court of Justice (ECJ) gave a preliminary ruling on questions referred to it by the English High Court in the case between Interflora and Marks & Spencer (“M&S”), regarding the purchase by M&S of the Google AdWord “Interflora” and other similar AdWords. 
In answering the questions referred to it, the ECJ repeated much of the recent jurisprudence in this area, in particular from the Google France case.  Previous cases established that purchasing a third parties’ trademark as an AdWord would only amount to trademark infringement if such use would have an adverse effect on one of the functions of the trademark.  
The ECJ gave the following guidance on how national courts should assess whether the use by a third party of a sign identical with a trademark in relation to identical goods or services has an adverse affect on one of the functions of the trademark:

By: Ann K. Ford, Kiran N. Gore, and Debbie Rosenbaum (New York and Washington DC)

Fashion is an integral part of how consumers construct their personal identities and choose to portray themselves in their everyday lives.  From a societal perspective, we correlate luxury fashion brands with success and exclusiveness.  We notice individuals with red-soled stilettos or LV patterned brown leather purses because we know that while these individuals could have chosen from a variety of options, they chose to identify themselves with expensive emblems of status.  This aura of exclusiveness is the value that luxury brands provide to their consumers: few can have it; the others merely aspire to it.

Social media stands in stark contrast to this image.  Social media platforms are inherently noisy, crowded and easily accessible from a variety of platforms.  This dichotomy begs the question: will using social media tarnish the value of luxury brands by making them too accessible by the masses?

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Law à La Mode - Winter 2011 Edition

LALM cover winter.jpgDLA Piper's Fashion Retail Design Group recently published Law a la Mode - Edition 4 Winter 2011, a legal fashion-style magazine that is distributed to clients and friends of the firm worldwide.  Law a la Mode has a revolving editorialship and Edition 4 is the first to be edited by the U.S. offices.

Members of the U.S. editorial board include Ann K. Ford, Gina Durham, Tamar Duvdevani, Kiran N. Gore, Melissa Reinckens, Debbie Rosenbaum, Michelle Schaefer, Radiance A. Walters, and Job Seese (New York, Washington DC, and Chicago).  

The magazine is available here.

We welcome your thoughts and comments on our latest edition.  

 

 

SOCIAL MEDIA IN THE RETAIL FASHION SPACE

Reprinted from La A La Mode, DLA Piper's Fashion, Retail and Design E-zine

by Ann K. Ford (Washington DC), Kiran N. Gore (New York)  and Debbie Rosenbaum (Washington DC)

Social media in the retail fashion space takes many forms.  For example, Bergdorf Goodman, one of America’s most well-known high-end department stores located in the heart of New York City, tweets upwards of 50 times a day providing fashion tips, insider information about brands and designers sold at the store, and details about sales, discounts and promotional offers.  Although a newspaper once characterized the store as “snotty” and “imposing,” Bergdorf Goodman has started to rebrand itself as “warm and welcoming”, with its Twitter handle @bergdorfs leading the change.  Perhaps the most notable aspect of this social media strategy is that the department store has effectively handed over its entire corporate identity to a single individual: Cannon Hodge, Bergdorf’s social media manager.

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EU: Commission Report on the Digital Agenda: social networks can do much more to protect minors' privacy

Reposted from DLA Piper's Media & Sport Group Bulletin

Editorial Team: Nick FitzpatrickDuncan Calow and Patrick Mitchell

Following a report focussed on the implementation of the "Safer Social Networking Principles of the EU" the European Commission has found that social networking sites are not doing enough to protect minors' privacy.

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Google Plus Profiles Now Open to Brands

It goes without saying that companies are increasingly using social media to reach new customers and to strengthen relationships with loyal customers.  As you may already know, Google opened its social media platform, Google+, to businesses and brand owners today.  A Google+ profile is similar to a Facebook Fan page, and we want to encourage you to set up an official page to both promote and protect your brand.   You can open your company's Plus page at http://plus.google.com/pages/create.

As always, let us know if you have any questions or if we can be helpful in any way.

Keeping pace with social media in the workplace

By Kate HodgkissAdam Hartley and Vinita Arora

The use of social media is now common place the corporate world, but are organisations protecting themselves by ensuring the relevant policies and procedures are in place? 

Social media connects millions of people across the world every day and has become an important way for people to communicate. It is now an integral part of the way we live and increasingly affects the way we work and do business. 

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Illinois Bar Journal Features DLA Piper's Erin Wright

Several lawyers from Illinois and other states agreed with that sentiment when they recently spoke to the IBJ about lawyer ethics and social networking. In the words of Chicago lawyer Erin E. Wright of DLA Piper, "Lawyers can navigate social media the right way, without violating ethical rules."

Though the same ethical rules that govern lawyers' offline conduct apply to online conduct, it's not yet always clear how those rules apply within the context of social media. "We're using rules designed for oral and print communication and now applying them to another space where the rules don't always quite fit," says Wright.

Read the whole article here.

Twitter takes action over "Tweet" trademark

Reposted from DLA Piper's Media & Sport Group Bulletin

Editorial Team: Nick FitzpatrickDuncan Calow and Patrick Mitchell

The social networking site brings action against Twittad, an online advertising service, for use of the trademark "Let Your Ad Meet Tweets" in a battle to win trademark registration of the term "tweet".
 
Twittad, a provider of online advertising was  granted registration of the mark LET YOUR AD MEET TWEETS in 2008. However, in a move to claim "tweet" as its own, Twitter has filed a complaint with the United States District Court in Northern California for the cancellation of Twittad's registration.
 
Giving its reasons for bringing the action, Twitter stated that Twittad's use of the mark  "exploits the widespread association by the consuming public of the mark TWEET with Twitter and threatens to block Twitter from its registration and legitimate uses of its own mark."
The lawsuit argues that "tweet" became widely adopted by consumers and media outlets to refer to Twitter immediately after its launch. Prior to this, "tweet" was not generally known to the consuming public beyond its dictionary meaning and had no association with web-based social networking and communications services.

The social networking site brings action against Twittad, an online advertising service, for use of the trademark "Let Your Ad Meet Tweets" in a battle to win trademark registration of the term "tweet".

Twittad, a provider of online advertising was  granted registration of the mark LET YOUR AD MEET TWEETS in 2008. However, in a move to claim "tweet" as its own, Twitter has filed a complaint with the United States District Court in Northern California for the cancellation of Twittad's registration.

Giving its reasons for bringing the action, Twitter stated that Twittad's use of the mark  "exploits the widespread association by the consuming public of the mark TWEET with Twitter and threatens to block Twitter from its registration and legitimate uses of its own mark."

The lawsuit argues that "tweet" became widely adopted by consumers and media outlets to refer to Twitter immediately after its launch. Prior to this, "tweet" was not generally known to the consuming public beyond its dictionary meaning and had no association with web-based social networking and communications services.

The IOC issues guidelines for use of social media during the London 2012 Games

Reposted from DLA Piper's Media & Sport Group bulletin

Editorial Team: Nick Fitzpatrick, Duncan Calow and Patrick Mitchell 

Editorial Team: Nick Fitzpatrick, Duncan Calow and Patrick Mitchell

The International Olympic Committee is encouraging athletes competing at the 2012 Games to use social media after issuing guidelines for its use.

The IOC encourages competitors to "post, blog and tweet their experiences" but warns that if rules are broken it can withdraw accreditation, shut down online operations and start legal proceedings for damages. The IOC guidelines also warn against athletes using social media platforms for commercial or advertising purposes and prohibits sharing videos filmed at Olympic venues, although still photographs will be permitted.

The IOC issued the guidelines in order to pre-empt the problems that occurred at the Vancouver Winter Olympics. The IOC said: "Unlike in Vancouver, where the rules were adapted to fit changed circumstances, the rules in force in London have been properly codified."

The IOC recommends that postings, blogs or tweets should be in a first-person, diary-type format and should not be in a journalistic style. Further, all content should "be dignified and in good taste, and not contain vulgar or obscene words or images".

Athletes will not be permitted to use the official Olympic symbol, and any reference to the word "Olympic" must be factual and "not associated with any third party or any third party's products or services".

The guidelines can be viewed on the IOC website here.

Social Media: Legal (and less Legal) Tips for the Hospitality Industry for Avoiding Pitfalls and Reaping Benefits

It goes without saying that social media platforms are now key weapons in the armoury of any marketing department.  Few major brands in any sector are without a Facebook presence, and even those yet to use social media as a marketing tool will be affected by references to them on such platforms.

The hospitality industry is as affected by this phenomenon as any.  As well as universally relevant platforms like Facebook, Twitter and Bebo, there are of course numerous specific hospitality industry sites enabling user-generated postings and reviews: Tripadvisor, Expedia, Yelp, Toptable, and so on.  In addition, there are content-hosting sites like Youtube, which may for example be used to host viral advertisements.  These different sites raise numerous legal issues: around branding, advertising, content ownership, defamation, rights in content, etc.  The issues themselves are rarely new, but the response to them may demand a different approach.  Below are some recommendations from a lawyer’s perspective on how hospitality industry operators may best shape their social media strategy.

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Taking franchise disputes to the internet: judicial absolute immunity does not apply

By Scott McIntosh and Joe Englert 

Reposted from DLA Piper client alert

A Florida appellate court recently held in Ball v. D’Lites Enterprises, Inc., 2011 WL 3109733 (Fla. 4th DCA July 27, 2011), that a franchisor was not entitled to judicial absolute immunity for allegedly defamatory statements made regarding several franchisees on its corporate website, even though the franchisor and franchisees were currently engaged in litigation and the statements were related to the issues underlying the dispute. In light of this decision, franchisors, franchisees and franchisee associations should be aware that, when posting statements on the Internet related to pending litigation, they will not likely be protected by judicial absolute immunity.

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Parody Sites & Trademark Dilution

Guest blog post by Melanie Garcia.  Melanie is a Summer Associate in the Washington, D.C. office of DLA Piper LLP.  She is a J.D. Candidate at the Georgetown University Law Center.

Unhappy customers have been embracing the Internet for years to vent their frustrations with companies.  Lately, several bloggers have capitalized on websites that lampoon popular companies and companies are beginning to fight back.  
Recently, Forever 21 threatened to sue fashion blogger Rachel Kane for diluting its brand and trademark with her blog, WTForever21.com.  Forever 21, a global retail chain of clothing and accessories for young men and women, reportedly sent cease-and-desist letters to Ms. Kane regarding her blog.  On WTForever21.com, Ms. Kane posts and satirizes images of clothing from Forever21.com.  For example, on April 14, 2011 Ms. Kane posted a picture of earrings from Forever 21 with the following caption, “Those bead curtains that provide no privacy and serve no other purpose than to get tangled around each other, or in your hair when you walk through them, came back from 1973 and decided to become earrings.”  While this is understandably offensive to the company, it seems Forever 21 has chosen not to pursue further action against Ms. Kane.  
There are many reasons why Forever 21 may have chosen not to bring a suit against Ms. Kane.  Forever 21 has had several widely publicized legal battles over alleged copyright infringement.  Widespread coverage of its actions against Ms. Kane throughout the fashion blogosphere and other social media outlets may be one reason Forever 21 shied away from the lawsuit.  
Another possible reason is that the law is also complicated in this area and any legal battle would be hard won.  In order to win a dilution claim, a plaintiff must prove that the defendant’s use of a mark is confusing and therefore dilutes the plaintiff’s trademark.  A dilution claim must also prove that the defendant is using the plaintiff’s mark as a mark.  It is possible that the WTForever21.com domain name does just that, but it is less clear whether this use is confusing.  
Moreover, a claim against WTForever21.com would not just involve a trademark dilution claim.  Because WTForever21.com is a blog such a claim would also implicate Ms. Kane’s First Amendment protected speech.  First Amendment freedoms would protect Ms. Kane’s blog from liability unless the court found that the title of the blog, WTForever21.com, has no artistic relevance to the blog’s product, i.e., its content.  The blog would also be liable if it made explicitly false statements regarding the original mark.  Because Ms. Kane’s blog is a critique or parody site of Forever 21, and because the site explicitly states that it is not affiliated with Forever 21, it is possible that First Amendment defenses might defeat a claim of trademark dilution.  
If  such a claim is not defeated on First Amendment grounds, it is possible that Ms. Kane could argue that the blog is a parody.  To be found a parody, the blog must fall under the exception in the Lanham Act that protects parodic competing marks from liability.  For a parody to meet this exception under the Lanham Act, it must  not be a “designation of source for the person’s own goods or services.”  15 U.S.C. § 1125(c).  Under the Second Circuit’s analysis in the “Charbucks” case, Starbucks Corp. v. Wolfe’s Borough Coffee, Inc., 588 F.3d 97 (2nd Cir. 2009), the competing Charbucks mark could not use parody as a shield because Charbucks used the mark “as a designation of source” for the defendant’s goods, and the mark was “at most, a subtle satire.”  The court held that the Charbucks mark did not meet the parody threshold because rather than being a “satire or irreverent commentary of Starbucks” it functioned as a signal to consumers that Charbucks was a Starbucks competitor.  Under the Second Circuit’s analysis, because WTForever21.com does not signal itself as a competitor but is in fact an irreverent commentary, Ms. Kane’s blog likely falls under the Lanham Act’s exception.   
Under the Fourth Circuit’s analysis of trademark parodies, finding that a mark is a parody is not an automatic defense to trademark infringement.   However, if a mark is found to be a parody this will likely weigh in favor of the defendant, especially if the original mark is recognizable and there is little chance of confusion.  An infringing mark is a parody in the Fourth Circuit if it successfully creates an association with the famous mark and simultaneously communicates that it is not the famous mark.  Under the Fourth Circuit’s analysis, WTForever21.com will also likely be free of liability because it both signals the famous global retailer Forever 21, and that it is not the retailer itself.
Like WTForever21.com, other sites like Lamebook.com or Regretsy.com may also be protected by the First Amendment and because they are parody sites.  While this may irk the original trademark owners, Facebook.com and Etsy.com, bloggers and blog-readers will continue to revel in the snide commentary these parody sites provide.  
However, First Amendment protections do not mean that bloggers always get a free pass.  Bloggers using a trademark to cultivate traffic to their site but whose site is not related to the trademark may be found to be infringing.  For example, if the blog Lamebook.com was about pet grooming rather than lame comments on Facebook, its title would have no relevance to the blog’s expressive content.  Facebook might then have a dilution of trademark claim against Lamebook.com if it could prove confusion.  Moreover, any blog that makes a false claim or purports to be authorized by the trademark owner will likely be subject to liability.  Even when it is possible that First Amendment claims might prevent blogger liability, trademark owners may still want to consider bringing suit against bloggers for trademark dilution when there is a real chance of confusion regarding the infringing mark.  
Companies should monitor the Internet for blogs that use their trademarks, including blogs that critique them, to ensure that bloggers are not making false claims and that the blogs are not being confused with the original marks.  Trademark owners should also consult with counsel if there are any blogs that they believe might cause trademark confusion, regardless of whether the blog is protected speech.  Counsel can help determine whether bringing suit is a viable option.

Unhappy customers have been embracing the Internet for years to vent their frustrations with companies.  Lately, several bloggers have capitalized on websites that lampoon popular companies and companies are beginning to fight back.  

Recently, Forever 21 threatened to sue fashion blogger Rachel Kane for diluting its brand and trademark with her blog, WTForever21.com.  Forever 21, a global retail chain of clothing and accessories for young men and women, reportedly sent cease-and-desist letters to Ms. Kane regarding her blog.  On WTForever21.com, Ms. Kane posts and satirizes images of clothing from Forever21.com.  For example, on April 14, 2011 Ms. Kane posted a picture of earrings from Forever 21 with the following caption, “Those bead curtains that provide no privacy and serve no other purpose than to get tangled around each other, or in your hair when you walk through them, came back from 1973 and decided to become earrings.”  While this is understandably offensive to the company, it seems Forever 21 has chosen not to pursue further action against Ms. Kane.  

There are many reasons why Forever 21 may have chosen not to bring a suit against Ms. Kane.

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Social Media & The Future of Legal Service

Guest blog post by Carissa L. Bouwer. Carissa is a summer associate in the Sacramento office of DLA Piper. She attends University of the Pacific, McGeorge School of Law and will obtain a J.D. in 2012.  

Advances in technology have changed the way lawyers conduct research, communicate with clients, discover information about opposing parties, and even file documents with courts.  Is the next advancement likely to be in the way that defendants are served process?

Since 2008, the United Kingdom, Canada, New Zealand, and Australia have all allowed substituted service of process through Facebook when a defendant could not otherwise be served.  In 2009, the United Kingdom allowed an injunction to be served via Twitter by sending a message that contained a link to the injunction.  In giving approval for service through social networking sites, the courts required that reasonable efforts were made to serve the defendants, that they could not be served in another manner, and that the service was likely to give actual notice.  The Australian court also stipulated that the papers be sent through a private message and not just posted on the defendant’s wall where it would go into the newsfeed of all of the defendant’s friends.

There are approximately 150 million Facebook users in the United States and more than 750 million around the world.  Twitter users number 300 million.  LinkedIn had 3.6 million visitors in May.  In comparison, readership of newspapers is decreasing dramatically: New York Times print edition is 1.4 million on Sundays and 1.8 million people read USA Today. 

In the United States, the minimum standard for service of process has long been to provide “actual notice.”  In Mullane v. Central Hanover Bank & Trust, the Supreme Court said that due process requires that “notice is reasonably calculated, under all the circumstances, to apprise interested parties of the pendency of the action and afford them an opportunity to present their objections.”  Notice by publication is not thought to give actual notice when a defendant’s identity is known.  That is especially understandable today, as print newspapers are a declining industry and readership continues to fall.  However, a large percentage of the population, nationally and globally, check their e-mail and other social networking sites daily, if not hourly.  When people move from place to place, their access to social networking sites moves with them.  Where other methods of notice have failed, a Facebook message may serve the ultimate goal of providing actual notice to a defendant who can’t be physically found.  It also has the advantages of being fast, cheap, and seems particularly appropriate when the underlying action is web-based.  To date, there are no reported cases of service of process in the U.S. being made through social networking, but attorneys may begin to consider it an option for defendants who are avoiding service by traditional methods.

There are concerns about identifying the correct person and confirming that their social networking accounts are active.  Courts will, and should, require that evidence be offered proving the documents served on social media sites will come to the defendant’s knowledge.  But once those concerns have been alleviated, service through social media may be the next great step of using technology to bring us closer together.

MIP: CAN I TRADE MARK THIS CATCHY HEADLINE?

In June, our team was asked to contribute to a Managing Intellectual Property Magazine feature on trademark protection for slogans/phrases. Our responses were provided alongside responses from seven other practitioners from around the world as part of a global practice feature MIP runs on a monthly basis.  Here are our answers, and we encourage you to read the others in the June 2011 edition of MIP here

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Twitter unmasks anonymous British user in landmark legal battle

Reposted from DLA Piper's bulletin from the Media & Sport Group

Editorial Team: Nick FitzpatrickDuncan Calow and Patrick Mitchell

The social network and blogging site, Twitter, has been forced to hand over details of its users in a landmark ruling.

 

South Tyneside council brought the case before the US Courts, seeking to identify a blogger who criticised councillors and officials.

 

It is believed to be the first time the site has been forced to provide details about users in the UK. The case could now open the gates to a flood of further cases after controversy surrounding gagging orders being breached online by Twitter users. As reported in our May newsletter here, the footballer Ryan Giggs was named in parliament as the footballer at the centre of a Twitter row after details emerged of an injunction he had obtained to keep private details of an alleged affair. Lawyers acting for the footballer have experienced difficulties in obtaining details of Twitter users, due to the fact that Twitter is based in California and not within the normal jurisdiction of the English courts.

 

South Tyneside council went directly to the US, where the 9th Circuit Court has jurisdiction over Twitter, giving Twitter no alternative but to hand over the information because they were required to do so under Californian law.

 

On Radio 4's Law in Action programme, Attorney General Dominic Grieve stated that people who use internet sites such as Twitter to breach privacy injunctions could face action, warning users: "I will take action if I think that my intervention is necessary in the public interest, to maintain the rule of law, proportionate and will achieve an end of upholding the rule of law. It is not something, however, I particularly want to do."

Cashing in on Catch Phrases

The Internet and social media feed our seemingly insatiable appetite for round-the-clock celebrity news and gossip.  In the process, they have radically transformed the playing field for celebrities, and wannabe celebrities, by making them more readily accessible to the public and more famous than ever before.  The savvy celebrity, recognizing that fame can be so fleeting, is keen to take advantage of a sudden spike in interest before the flame sparks out and the crowds have moved on to the next big thing.

It is no surprise, then, that actor Charlie Sheen, who has been much in the news lately, has apparently been busy filing trademark applications through what is believed to be a related company, Hyro-gliff.  Sheen has received much notoriety for statements he has made in recent interviews, which statements have caught on with the public at large and entered into the lexicon of pop culture.  In particular, Hyro-gliff has filed the following twenty-six intent-to-use based trademark applications at the United States Patent and Trademark Office for a variety of goods and services:

 

App. No.

Mark

85302835 

MASHEEN 

85287333 

SHEENIUS 

85274004 

Design

85272939 

VIOLENT TORPEDO OF TRUTH 

85272938 

CHARLIE SHEEN 

85272934 

SURPRISE. THAT'S WHAT WINNERS DO

85272930

PARK YOUR NONSENSE

85272929

YOU'VE BEEN WARNED

85272927

I AM NOT BI-POLAR, I AM BI-WINNING

85272926

DEFEAT IS NOT AN OPTION

85272925

LIVING THE SHEEN DREAM

85272923

GODDESS SUITE

85272922

WARLOCK LOUNGE

85272918

ADONIS DNA

85272917

TORPEDO OF TRUTH

85272915

SHEEN'S GODDESSES

85272913

S¢K

85271461

WINNING

85271460

SOBER VALLEY LODGE

85271458

VATICAN ASSASSIN

85271457

TIGER WATER

85271456

ROCK STAR FROM MARS

85271455

DUH, WINNING

85271454

TIGER BLOOD

85271453

TIGER PLASMA

85271452

SHEEN'S KORNER

 

Sheen is not the first, and will certainly not be the last, celebrity to apply for trademark protection in the United States for terms and phrases that they have made popular.  Other celebrities who have registered trademarks for phrases they popularized include football star Terrell Owens (I LOVE ME SOME ME for clothing) and socialite Paris Hilton (THAT’S HOT! for men’s and women’s clothing).  Celebrities use and/or license their marks for, among other things, merchandising, so as to capitalize on their economic value. 

The catchiness of a unique term or phrase is a double-edged sword for a celebrity, as the very thing that makes it such a success – widespread recognition and use by the public – also poses the greatest risk to its undoing as a propriety trademark.  So how does a celebrity maintain that fine line between protecting a term or phrase they coined and widespread use by the public of that same term? 

Social Media & Fashion

By Ann K. Ford, Kiran Gore, & Debbie Rosenbaum

Reposted from Law A La Mode's Summer Edition

It is clear that social media is changing the communications landscape. Therefore, forward-thinking companies across the globe are embracing social networking websites and blogs to build brands, cultivate customers, research products, and improve global business management.  However, few have truly considered some of the important social media implications that are relevant to the fashion and retail industries. Because social media is inexpensive, instantaneous and prolific, it presents new and different concepts for the fashion industry, particularly in light of the fact that these concepts are new to these industries which had previously thrived on a perceived air of exclusivity. 

Social media in the business context is content created by people – individuals both inside and outside a company – on web-based platforms intended to facilitate interaction with peers and public audiences. Well-known examples of social media include Facebook, Groupon and Twitter.  But numerous niche fashion-centric communities are also emerging on websites like gotryiton.com and stylemob.com. Thus, while independent designers and large retail chains alike can benefit from a social media presence, these emerging opportunities also pose new problems and challenges.  Therefore, the way to leverage social media and mitigate possible liabilities is to proactively establish clear rules and standards for its use.  

So how does a company manage its social media presence and ensure that employees are clear with respect to goals and limitations?  First, it is paramount that the company develop a policy on employee use of social media. At a minimum, this policy should include:

  • A prohibition on the sharing of confidential or proprietary information;
  • Standards for whether employees will be allowed to make public comments about the company and which employees may make such comments;
  • Consequences for employees who do not adhere to the policy.

A company should also plan to create a meaningful social media presence for its brand. Such a communications strategy should be updated to include:

  • A social media “voice” and presence that is personal and genuine – a tone that exists outside of your advertising campaigns and corporate talking points;
  • Engagement with customers and followers - today, these individuals are the newest fashion insiders with influence on the Internet.

Please note that this article is the first in an on-going series that will consider various social media platforms, explore legal challenges and ultimately provide guidelines and best practices for the various entities in retail, design and fashion.  We look forward to delving further into these exciting new issues with you. 

Law à La Mode - Summer Edition

Reposted from our DLA Piper Italian IPT team blog.

Summer Law a La Mode

The Summer Edition of Law à la Mode is now available online: click here to view the e-magazine.

As some fashion operators choose Hong Kong for their IPOs, in this Summer edition of Law à la Mode you can read about how the introduction of a competition bill in Asia’s fashion hub may have an impact on its ever booming fashion and luxury market (pages 6-7). If legal updates are what you are looking for and you love shoes, you can’t miss the article on the red soles dispute (pages 10-11) and a report about trade mark distinctiveness for sneakers (pages 12-13). Our opinion articles explore the theme of fashion trade secrets (page 4) and reputation management of brands (page 5). Talking about (super)brands, see how you can benefit from extended protection in Russia (pages 8-9).

Again, we spoke with representatives of the fashion business (“A word from the Industry’s Mouth”, pages 14-15), including Kirstie Clements, editor of Vogue Australia. Moreover, this issue sees the addition of a new column devoted to fashion and social media, in which we will consider the pros and cons of establishing a presence in the social media arena and attempt to give some legal guidance to avoid potential pitfalls (page 16).

Law à la Mode brings together the latest news, comment and legal updates in the fashion, retail and design sector.

If you want to know more about Law à La Mode feel free to contact Ann Ford or Chiara Garofoli.

IP Roundup: May 2, 2011

Some of the latest news on copyright and trademark from around the web:

IP ROUNDUP: MAR. 21

Annnndddd we're back from a small hiatus.  Since the last IP Roundup, there have been a ton of great stories and analyses on Trademark and Copyright Law around the Internet.  

DO YOUR CORPORATE GOVERNANCE POLICIES CONSIDER SOCIAL MEDIA?

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From "The Venture Alley," a blog by DLA lawyers about business and legal issues important to Seattle-area entrepreneurs, startups, venture capitalists and angel investors.

Posted by Trent Dykes on September 20, 2010

Public companies are increasingly turning to social media to market their products and services and drive revenues. Given the sheer number of people who tweet, blog and post, the unique ability to target a message to a desired demographic and the relatively low cost of digital media marketing efforts relative to traditional advertising, such efforts are only going to increase. At many public companies, anyone from the C-level management team to the sales and marketing teams to individual employees – including those who are not designated as company spokespersons under the company’s communications policies – may be using social media to promote the company’s products and services.

The Typical Communications Policy May Predate Social Media

Most public companies have implemented policies aimed in part at (1) designating a very limited group of specific individuals who are authorized to speak publicly on behalf of the corporation, and (2) restricting certain forms of employee communications. These may include corporate communications policies, crisis communications policies, insider trading policies, investor relations policies and other policies, all of which have evolved as a matter of good corporate governance practice and in the interest of limiting liability for communications that may be attributed to the corporation. 

... To read the rest of this article, please click here to visit "The Venture Alley."

Facebook Relaxes Promotion Guidelines

While our practice centers around trademark and copyright, we have found that social media is an incredibly important and challenging space for our clients' brands. For this reason, we are staying up-to-date with all the nuances created by social media.  

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On December 1, 2010, Facebook issued a revised set of Promotions Guidelines for sweepstakes and other contests offered on Facebook.  The most significant change is that promoters no longer need to get permission from Facebook for offering a promotion through the Facebook platform.  Facebook also eliminated the confusing dichotomy between promotions offered through the Facebook platform and those offered outside that platform.  In addition, the rules clarify that a promoter can require an entrant to like a Page, check into a Place, or connect to a promoter's integration before entering, but cannot condition entry upon taking any other action on Facebook.  

The guidelines still retain certain requirements for all sweepstakes promotions offered through Facebook, including the core requirements that (a) promoters can only allow entries through the canvas page of the application or the application box in a tag on the Facebook page; (b) promoters must include on the entry page certain required disclaimer language that the promotion is not sponsored by Facebook; and (c) the rules must also contain such a disclaimer as well as a release of liability for Facebook.  

For further information on the revised Facebook promotion guidelines, contact Scott Pink at scott.pink@dlapiper.com.