10 FOR '10: BRANFMAN'S HOT IP TIPS #2

This is the second in the series:

IP TIP #2: YOUR EMPLOYEES AND EX-EMPLOYEES MAY BE OUT TO GET YOU:


Do you have employees - or better yet disgruntled ex-employees - who might be tempted to turn you in for a million dollar reward? If so, the Business Software Alliance ("BSA") has for several years been offering "rewards" of "up to" $1 million to anyone who turns in a business that is using software that is not properly licensed. [The BSA is a trade association made up of a few little companies like Apple, Microsoft, Symantec, Adobe and about 10 others].

And what does the BSA consider to be "not properly licensed"? Even if you purchased the software you are using legitimately, if you haven't kept the proofs of purchase, receipts, etc., then as far as the BSA is concerned you are guilty of copyright infringement and subject to financial damages of up to $150,000 per infringement. The BSA also considers Microsoft Office to be five (5) separate programs, so if you have an unauthorized copy of Office the BSA claims you are liable for up to $750,000 in damages.

The BSA has been very successful in scaring businesses into paying huge sums of money to avoid a lawsuit. The irony is that sometimes the BSA extracts financial settlements from businesses that exceed what the damages would be if the business went to court and then worked out a court-supervised settlement with the BSA.

Forewarned is forearmed. We have helped several businesses negotiate resolutions of these kinds of disputes with the BSA.

10 FOR '10: BRANFMAN'S TEN HOT IP TIPS

We recently wrote an article called "10 FOR '10: TEN HOT IP TIPS FOR LAWYERS AND THEIR CLIENTS" which highlights ten interesting intellectual property law legal developments and topics. Rather than reprint the whole article here, we will post one of the tips every few days in order to give each of the tips some room to breathe and an opportunity for comment. Here is the first one:

IP TIP #1: Photo-Shock:

Did your website designer grab some nice photos from somewhere to put up on your website? If so, it's time to check the terms and conditions of the license your web designer entered into for you (or didn't!) to make sure you have the right to use those photos for what you are using them for. Three large photo libraries (Corbis, Getty Images, and MasterFile)have recently embarked on a massive campaign which threatens big-time lawsuits in order to extract thousands of dollars (or more) from innocent businesses who have no idea they are using photos on their websites that aren't properly licensed.

We have handled several of these cases just within the last year.

Trademark Wars - Part 3: It's Not All Fun and Games With Online Games

What's in a name? I've been asking that question for almost thirty years and it never gets old. Great names and trademarks make for great businesses. Just ask GOOGLE, YAHOO, MRS. FIELDS, GREYHOUND, APPLE, and countless others.

But naming is often harder than it looks and often not pretty. Right now Zynga - home of the popular Internet game site FARMVILLE - is locked in an expensive legal battle with a company called Digital Chocolate over who owns the rights to the trademark MAFIA WARS for an online game, etc. Here is an article about the lawsuit filed by Digital Chocolate against Zynga in which Digital Chocolate claims that Zynga has stolen the MAFIA WARS trademark. If you are really ambitious, there is a link in the article to the actual complaint filed by Digital Chocolate that started the lawsuit.

It's Called The Music "BUSINESS" For A Reason.......

One of the great challenges for a professional songwriter, musician (or any other creative type for that matter) is to try to balance the creative spirit with the need to take care of business. Sir Francis Bacon is credited with having written "For also knowledge itself is power". In other words - "knowledge is power". Nothing could be more true when it comes to the music business. That is why music business conferences are a great opportunity for songwriters and musicians to bone up on the business side of things in a concentrated way in a couple of days.

San Diego's very own North Park Music Thing kicks off this Friday August 13th at the Lafayette Hotel in the North Park section of San Diego. During the days on Friday and Saturday there will be loads of panels and workshops on everything from getting started in the music business to music public relations to social networking and important legal topics (moderated by yours truly!).

At night on Friday and Saturday there will be dozens of music showcases all over North Park. The price of admission to the conference includes a wristband for the music showcases. People pay hundreds of dollars to attend conferences like this in Austin, Texas and New York City; the North Park Music Thing is quite affordable at $20 for a one-day pass and $35 for a two day pass.

The Importance of Due Diligence

Two of the biggest pitfalls a business owner can make when planning on filing a trademark application with the Patent & Trademark Office is failing to perform a detailed trademark search beforehand and failing to understand the basic rules of trademark law. This is a little something we lawyers like to refer to as a lack of due diligence. Typically what happens is a business owner, who most likely and understandably is trying to save a few bucks, sets their heart (and more importantly their pocketbook) on building their brand around a name and/or logo that may not necessarily be available to them or without understanding what makes a good and clear trademark. What these passionate entrepreneurs fail to understand is the 'likelihood of confusion' their potential mark might cause when compared to existing marks already established in the marketplace. Take Tami Cromar for instance. She is a small business owner of a cookie shop based out of Salt Lake City, Utah. She is currently at odds with Pillsbury Corporation, a subsidiary of General Mills, because of what she chose to name her shop: My Dough Girl. According to the Pillsbury Corporation, the name of Cromar's business is confusingly similar to Pillsbury Corporation's Dough Boy®trademark. Rather than fight the industry giant, Cromar has decided to concede to General Mills' claim of infringement and has begun working on a new name for her business. Ultimately when it comes to filing a new trademark application, we recommend to our clients that they think about the money they can save in the long run by doing their due diligence ahead of time. Here is a link to the article that details the Pillsbury vs. My Dough Girl case.

Copyrights: For Songwriters - Registering Copyrights vs. Registering with ASCAP/BMI/SESAC

One of the questions we frequently receive is whether it is necessary for a songwriter to register his/her songs with both ASCAP (or BMI or SESAC) and the Copyright Office. One of the main things about the U.S. Copyright Office application/registration is that in the U.S. you need either a pending copyright application on file or an actual issued copyright registration certificate IF you have to sue someone for copyright infringement - depending on which legal jurisdiction you have to file your lawsuit in. So...in our experience it is better to file a copyright application sooner rather than later and it is not a question of either filing with ASCAP/BMI/SESAC or the Copyright Office; it is a matter of needing to do both.

Copyright Wars - Why Bother Registering A Copyright?

Of all the forms of intellectual property protection - patents, copyrights, trademarks, trade secrets - copyrights are the most affordable to register. Copyrights are the lifeblood of just about every creative type of business, entrepreneur and artist. The general rule in the U.S. is that the copyright in a work MUST be REGISTERED with the U.S. Copyright Office BEFORE a copyright infringement lawsuit can be filed. There are some exceptions to that general rule, most notably in the 9th Circuit due to a recent court decision here. The 9th Circuit consists of California, Alaska, Oregon, Nevada, Arizona, Idaho and Montana. Thus in the 9th Circuit a copyright infringement lawsuit can be filed if the copyright owner has merely filed a copyright APPLICATION, even if the registration certificate hasn't issued yet. But in states where the general rule applies, it can be a real drag if you have to wait for the Copyright Office to process your copyright application before you can file your lawsuit. That can take anywhere from 8 - 18 months (or more) - UNLESS you want to pay a "Special Handling" fee of $760 on top of the regular $35 fee. The Special Handling fee will usually get the Copyright Office to register your copyright in about 10 days or less. When it comes to copyrights, our motto is: "Register early and often".