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Ninth circuit rejects efforts to liberate “orphan works”

“Orphan works” are works that are protected by copyright, but for which it is difficult, if not impossible, to locate the copyright owner. These works usually have little or no commercial value, but some argue that the uncertainty surrounding their ownership needlessly discourages subsequent creators and users from incorporating them into new creative efforts.

Works created before the effective date of the Copyright Act of 1976 (i.e., under the 1909 Act) were subject to copyright protection for 28 years. That duration could be extended if the copyright owner renewed the copyright for another 28 years. Accordingly, the old system has been characterized as an “opt-in” system, in that to extend the duration of copyright ownership, the owner had to take certain affirmative steps.

The Copyright Renewal Act of 1992, Pub. L. No. 102-307, 106 Stat. 264, eliminated the renewal requirements for works created between 1964 and 1977. The Sunny Bono Copyright Term Extension Act, Pub. L. No. 105-298, 112 Stat. 2827 (1998), extended the term of copyright ownership to the life of the author plus 70 years (in the case of works authored by individuals). The present framework has been described as an “opt-out” system, in that copyright protection attaches automatically, unless a person takes some affirmative act to convey the work to the public domain.

The opt-out system and longer terms of copyright mean a larger number of orphan works. Some say that orphan works “probably comprise the majority of the record of 20th century culture.”

Brewster Kahle, founder of the Internet Archive, along with a number of other plaintiffs, sought to fix the present situation of orphan works by challenging the constitutionality of the Copyright Renewal Act of 1992 and the Sunny Bono Copyright Term Extension Act. They filed a declaratory judgment action in federal court in California, emphasizing the increased possibilities for archiving and disseminating content over the Internet. When the court granted the government’s motion to dismiss, the plaintiffs sought review. On appeal, the Ninth Circuit affirmed the dismissal of the action.

[Aside: Check out this interesting interview that Dr. Moira Gunn did with Brewster Kahle last year.]

The plaintiffs raised two arguments. First, they argued that the change from an “opt-out” system to an “opt-in” system “altered the traditional contour of copyright” and therefore, under the holding of Eldred v. Ashcroft, 537 U.S. 186 (2003), should be subject to First Amendment review. The second argument was that the current copyright term — providing what the plaintiffs characterized as a term that is “effectively perpetual” — violated the Constitution’s “limited Times” prescription, found at Article I, Sec. 8, Clause 8.

The court rejected each of these arguments. Relying on the Eldred case, the court held that the Copyright Renewal Act of 1992 and the Sunny Bono Copyright Term Extension Act both served to “lengthen the term for [certain works], but in doing so they simply placed existing copyrights in parity with those of future works.” In Eldred, the act of creating “parity” survived constitutional scrutiny. And so it did in this case too.

As for the second argument, namely, that the current term of copyright — in many instances well over a century — was too long, the court relied again on Eldred. Noting that the decision of Congress to extend the term of copyright was subject to rationality review, the court looked to the “rationally credited projections that longer terms would encourage copyright holders to invest in the restoration and public distribution of their works.” In other words, Congress had undertaken an appropriate balancing test between encouraging creativity and bringing works into the public domain.

Kahle v. Gonzalez, (Slip Op.), —F.3d—-, No. 04-17434 (9th Cir., Jan. 22, 2007).

New Terms and Conditions for Internet Cases

Website terms and conditions are a strange animal. And they’re sometimes even more puzzling when they’re on a lawyer’s website. I’ve been thinking about what the terms and conditions for this site should say, and so I’ve come up with the following. Sure I could make it all legalese and complicated, but I’m trying a more conversational approach. Here goes.

Dear Reader:

When you read this website, Internet Cases, please keep the following in mind. If you cannot or will not accept what is stated below, please direct your browser somewhere else. If you go ahead and read the content on the site, I’ll conclude that you agree to all of this. I don’t want there to be any misunderstanding as to the purpose of this website or as to the relationship between author and reader.

This is a website that provides information. It is not legal advice. Is it an advertisement for legal services? I say no. I don’t intend for this website to be an advertisement, and I don’t think you should either.

Unless you have signed a written agreement with my employer, I am not your lawyer and therefore, you are not my client. That means there is no attorney-client relationship. Even if you are one of my clients, the information here is intended for a general audience and is not tailored for your specific needs. If you need legal advice, get in touch with a lawyer directly. You’d be foolish to make important decisions relating to your life, liberty or property based only on information you read online. You shouldn’t do that with any website, and certainly not this one.

Although I try my best in every instance to be accurate, it could be that some information on this website contains errors. I’m a lawyer, all lawyers are human, and therefore, I’m a human. Moreover, the information you find here may have become out-of-date. Opinions get overruled and the law changes. I DISCLAIM ANY AND ALL WARRANTIES RELATING TO THE INFORMATION ON THIS SITE, INCLUDING, BUT NOT LIMITED TO THE ACCURACY OR CURRENTNESS OF THE INFORMATION CONTAINED THEREUPON.

The vast majority of the time I do not editorialize or state opinions of what I think the law should be. Instead I talk about what the law is. In the rare instances that I do indicate some opinion or put a spin on an issue, that is in no way a reflection on or a representation of any opinion held by my employer. Furthermore, I never write about ongoing matters in which I represent the participants.

I like getting e-mail from my readers, and if you’d like to contact me, go right ahead. But please use discretion when doing so. Again, unless there’s a written agreement in place, I’m not your lawyer, and so the question of confidentiality in that situation may be problematic. (What if I already represent the other side?) If you write to me and I don’t get back to you, please don’t take it personally. It does not mean that I don’t like you. It’s just that I’m very busy and I have to prioritize.

If you’re with the press, or are looking for a speaker at your event, I’ll probably be more than happy to talk with you.

Check back to this page from time to time, as I reserve the right to modify these terms and conditions, and if you continue to visit the site after those changes are made, I’ll assume you accept them.

Thank you for visiting Internet Cases.

Sincerely,
Evan Brown

Sixteen-year-old girl criminally liable for child pornography

A state appellate court in Florida has affirmed the decision of a trial court that adjudicated a 16-year-old girl, A.H., a delinquent based on her violation of the state’s anti-child pornography statute. The law in question, Section 827.071.(3), prohibits one from producing, directing or promoting a photograph or representation that the person knows to include sexual conduct of a child.

The charges against A.H. were based on digital photos A.H. and her 17-year-old boyfriend took of themselves “engaged in sexual behavior.” The photos were never shown to a third party, but A.H. e-mailed them to the boyfriend’s personal account.

At the trial court level, A.H. moved to dismiss the charges, arguing that the Florida statute was unconstitutional as applied to her. She contended that, because the photographs were not actually distributed to a third party and the other participant in the photos was an older minor, her right to privacy was implicated and that criminal prosecution was not the least intrusive means of furthering a compelling state interest.

The trial court ruled that there was a compelling state interest in preventing the production of the photographs and criminal prosecution was the least intrusive means of furthering the state’s compelling interest. The appellate court agreed, and further determined that the privacy provision of the state constitution did not protect A.H.’s behavior.

At the heart of the case was the court’s determination that A.H. had no reasonable expectation of privacy in the photographs. First, the decision to take the photographs and to keep a record that may be shown to people in the future weighed against a reasonable expectation of privacy. Second, because the persons in the photos were minors, they had no reasonable expectation that the photos would not be shared with others. The court stated that “[m]inors who are involved in a sexual relationship, unlike adults who may be involved in a mature committed relationship, have no reasonable expectation that their relationship will continue and that the photographs will not be shared with others intentionally or unintentionally.” Third, the fact that they had kept the photos private was immaterial: “The fact that these photographs may have or may not have been shown in no way affects the minor’s reasonable expectation that there was a distinct and real possibility that the other teenager involved would at some point make these photos public.”

The court went on to hold that even if A.H. had a reasonable expectation of privacy in the photos, the State had a compelling interest in seeing that the content of the photos, namely, minors engaged in sexually explicit activity “is never produced.” The court concluded that prosecution of the participants, regardless of their age, was the least intrusive means of furthering that compelling interest. Moreover, the court observed that “the statute was intended to protect minors like appellant and her co-defendant from their own lack of judgment.”

The court also addressed the significance of the fact that A.H. had e-mailed the photos to the boyfriend (who, you’ll remember was the other participant in the photos), concluding that that act would contribute to the widespread distribution of the photos:

Not only can the two computers be hacked, but by transferring the photos using the net, the photos may have been and perhaps still are accessible to the provider and/or other individuals. Computers also allow for long-term storage of information which may then be disseminated at some later date.

One of the judges on the three-judge panel lodged a vigorous dissent, arguing that the application of the statute against A.H. violated her constitutional right to privacy. Citing to the Florida constitution and previous case law, the dissenting judge noted the “clear constitutional mandate” of privacy giving rise to a right that applies to both adults and children alike.

The dissenting judge also criticized the majority opinion’s emphasis on the fact that A.H. had e-mailed the photos to the boyfriend:

That the Internet is easily hacked, as the majority says, is not material. The issue is whether the child intended to keep the photos private, not whether it would be possible for someone to obtain the photos against her will and thereby to invade her privacy. The majority states that the child “placed the photos on a computer and then, using the internet, transferred them to another computer,” as if to suggest that she left them out carelessly for anyone to find. That is not what happened. She sent the photos to her boyfriend at his personal e-mail address, intending to share them only with him.

So the case is problematic for a number of reasons. It certainly complicates the analysis as to what kind of privacy rights minors have. But it also raises a fundamental question as to how laws should be enforced to effectuate their purposes. If anti-child pornography statutes are intended to protect minors from exploitation, doesn’t it seem at least a bit anomalous to prosecute the very persons who are being exploited?

A.H. v. State, (Slip Op.) — So.2d —-, 2007 WL 120008 (Fla.App. 1 Dist. Jan. 19, 2007)

Another court adopts the Cahill standard for unmasking anonymous online defendants

A trial court in Arizona has quashed a subpoena served on Godaddy, issued by a plaintiff in a defamation suit against an anonymous website owner. Applying the standard articulated in the Delaware Supreme Court decision of Doe v. Cahill, 884 A.2d 451 (2005), the court held that the plaintiff had failed to present a strong enough case to overcome the defendant’s First Amendment right to speak anonymously. Under the Cahill standard, a plaintiff seeking to unmask an anonymous Internet defendant must put forth evidence sufficient to withstand a motion for summary judgment before the court will order the identity to be revealed. [Read more here.]

Public Citizen represented the anonymous defendant, and issued this press release which explains the case in more detail, and provides a link to the court’s opinion.

See also Techdirt’s commentary on the case.

McMann v. Doe, Case No. CV 2006-092226, Maricopa County Superior Court, January 18, 2007.

Publication of photo on website not a “continuing violation” in right of publicity case

This post is by Greg Smith, a contributor to Internet Cases. [Bio]

In Blair v. Nevada Landing Partnership, a casino worker sued his former employer, claiming that the casino used a photograph of him in various marketing materials and later, without authorization, on the casino’s website. Although the plaintiff consented to the photograph when it was taken, he complained about its use after he quit his job.

The plaintiff claimed that the casino misappropriated his likeness, and filed an action in Illinois state court, alleging violations of the state’s Right of Publicity Act. The trial court dismissed the action as time-barred, and the plaintiff sought review. The Appellate Court affirmed.

The court began by analyzing when the limitations began to run. Said another way, it looked to determine when the cause of action “accrued.” The photograph was taken in 1994, and about six months later, it appeared on various flyers and brochures, signs and billboards, casino restaurant menus, and calendars and postcards for sale in the casino gift shop. Some time later, the photo appeared on the casino’s website. The plaintiff did not file suit until September 2004.

The court noted that in tort cases, the limitations period begins to run when the plaintiff can first file the lawsuit. Conduct of a defendant falling under the “continuing violation” exception, however, can toll (i.e., delay) the time when the limitations period begins. If there is a continuing violation, the statute of limitations does not begin to run until the tortious acts cease. But the continuing violation exception does not apply if the alleged conduct stems from a “single overt act.” In such cases, the statute begins to run on the date of the single act.

The court declined to apply to continuing violation exception:

We do not believe that the defendants’ act of publishing the plaintiff’s picture in various mediums around the casino falls under the continuing violation exception. Rather, we believe that the use of the plaintiff’s picture in different means such as on the billboard in the casino pavilion, in the casino’s restaurant menu, and on the defendants’ website, constituted a single overt act.

The court cautioned that application of this so-called “first publication rule” is not without its limitations. “[A] republication of the plaintiff’s likeness can constitute a new cause of action if the publication is altered so as to reach a new audience or promote a different product.” Lehman v. Discovery Communications, Inc., 332 F.Supp.2d 534, 539 (E.D.N.Y.2004).

But in this case, even though the casino used the plaintiff’s photograph in different formats over time, it committed only a single overt act for statute of limitations purposes. The uses were all made with the same goal, namely, to attract customers to the casino. Accordingly, a suit filed nearly a decade after the photo was first used was clearly time-barred.

Blair v. Nevada Landing Partnership, — N.E.2d —-, 2006 WL 3594284 (Ill. App. 2 Dist., December 8, 2006)

Court shuts down unauthorized “e-Certificate” site

Ex parte temporary restraining order issued against operator of northwestdiscountcoupons.com

Northwest Airlines gives away “e-Certificates” to passengers who experience flight delays, cancellations, or other inconveniences. These e-Certificates are redeemable for significant discounts on future ticket purchases. Passengers redeem e-Certificates by visiting Northwest’s website and entering the unique coupon number appearing on the face of each e-Certificate. Until recently, passengers were allowed to give away their e-Certificates to others, but were not permitted to sell them.

In the course of investigating the unauthorized sale of e-Certificates on sites like eBay and Craigslist, a Northwest employee discovered the site northwestdiscountcoupons.com, allegedly operated by one Mike Bauer. To confirm its suspicions, Northwest had one of its interns purchase a number of e-Certificates from the site.

Northwest filed suit against Bauer alleging a number of causes of action, including false advertising, tortious interference, cybersquatting, and trademark infringement. It sought an ex parte temporary restraining order against Bauer. The U.S. District Court for the District of North Dakota granted the motion.

Northwest asserted that two independent causes of action entitled it to injunctive relief. First, it argued that Bauer’s misleading use of the NORTHWEST mark violated the Lanham Act and caused continual and irreparable damage to the value and trust Northwest had cultivated in its name and mark. Second, Northwest argued that Bauer’s alleged illegal and fraudulent sale of e-Certificates to unknown and unsuspecting customers was a violation of public trust that could not be permitted to continue under North Dakota law.

The court went no further than analyzing the alleged violations of the Lanham Act to determine that the temporary retraining order was warranted.

It held that Northwest was likely to succeed on its trademark infringement claim, where, among other things, the defendant was alleged to have registered a domain name that was identical or confusingly similar to Northwest’s distinctive mark. On this point, the court cited to Green Products Co. v. Independence Corn By-Products Co., 992 F.Supp. 1070, 1076-77 (8th Cir.1997) and Faegre & Benson, LLP, v. Purdy, No. Civ. 03-6472 (MJD/JGL), 2004 WL 167570 (Jan. 5, 2004, D.Minn).

Further, citing to Coca-Cola Co. v. Purdy, [No. 02-1782 ADM/JGL, 2005 WL 212797 (Jan. 28, 2005, D.Minn)] the court found that “the nature of the Internet makes if unlikely that consumers can avoid confusion through the exercise of due care.”

Northwest Airlines, Inc. v. Bauer, (Slip Op.) 2006 WL 3733295 (D.N.D., December 15, 2006)

Enthusiast website owner enjoined from streaming webcasts of racing events

The RIAA and the MPAA aren’t the only ones out there suing their fans for copyright infringement. Live Nation Motor Sports, Inc. (formerly known as SFX Motor Sports) has convinced a federal judge in Texas to enjoin fan-site owner Robert Davis from streaming live webcasts of racing events through his site supercrosslive.com.

It appears that Davis was simply running the live ClearChannel webcast of Supercross racing events through his own website. According to papers filed by the plaintiff, Davis was “transferring” the webcasts to his own website and thereby displaying or performing them in real time. It doesn’t look like there was any copying of the sound recording — instead, Davis was broadcasting or performing the “same audio web cast.”

The court granted the plaintiff’s motion for a preliminary injunction, finding that the plaintiff would likely succeed on its claim that defendant’s actions constituted copyright infringement.

In concluding that the “transfer” of the audio webcast to the supercross.com website was likely an infringement, the court cited to National Football League v. PrimeTime 24 Joint Venture, 211 F.3d 10 (2d Cir.2000) in which the Second Circuit upheld a permanent injunction against a defendant accused of providing unauthorized satellite transmissions of NFL games to viewers in Canada. In that case, the court held that the process of uplinking the NFL’s original signal to a satellite was an unauthorized public performance of the broadcast.

Perhaps the court would have come to a different conclusion on the question of whether the defendant’s “transfer” of the audio webcast was a public performance had it compared it instead to in-line linking. This concept was discussed earlier this year in Perfect 10 v. Google, Inc., 416 F.Supp.2d 828 (C.D. Cal. 2006). In-line linking is the process where a web developer shows an image on his or her website by providing a path in the <img> tag to a file residing on another server.

In the Perfect 10 v. Google case, the court concluded that Google did not itself display or distribute images to which it in-line linked. [More] It applied the “server test” (as opposed to an “incorporation test”) to conclude that “the website on which content is stored and by which it is served directly to a user, not the website that in-line links to it, is the website that ‘displays’ the content.” It found that in aggregating images from other sites, the Google image search engine was not in the process of storing or serving content. “Rather, [users’] computers have engaged in a direct connection with third-party websites, which are themselves responsible for transferring content.”

Live Nation Motor Sports, Inc. v. Davis, (Slip Op.) 2006 WL 3616983 (N.D.Tex., December 11, 2006).

Employer immune under Section 230 in suit over employee conduct

In 2002, an employee of Agilent Technologies named Moore used his computer at work to send a number of e-mail messages and make postings to a Yahoo! group which were threatening in nature. Plaintiffs Delfino and Day were on the receiving end of this rough treatment, and filed suit against Agilent for, among other things, intentional infliction of emotional distress, for allowing Moore to use the system in the manner he had.

At the trial court level, Agilent moved for summary judgment, on grounds that the Communications Decency Act at 47 U.S.C. §230 shielded it from liability. The trial court granted the motion, and plaintiffs sought review. The California Court of Appeal affirmed, holding that §230 immunity barred the action.

To evaluate Agilent’s claim of immunity under §230, the court applied the three elements parsed out of §230(c)(1) in the case of Gentry v. eBay, 99 Cal.App.4th 684 (2002). That test provides that a defendant is immune where (1) it is a provider or user of an interactive computer service, (2) the cause of action treats the defendant as a publisher or speaker of information, and (3) the information at issue is provided by another information content provider.

The court observed that there were no other published decisions in which a corporate employer had been held to be a provider of interactive computer services. But it cited to a couple of law review articles in which commentators had concluded that an employer could meet the §230 provider criterion, and also observed that the evidence on file showed that Agilent’s servers were the means of access to the Internet by thousands of its employees across the country. That commentary and those facts led the court to conclude that the first element in the §230 immunity test had been met.

Next the court considered whether the plaintiffs’ cause of action sought to treat Aglient as a publisher or speaker of information. In addressing this point, the court did not clearly set forth any basis by which the plaintiffs sought to allege that Agilent was the one speaking or publishing the content giving rise to the alleged infliction of emotional distress. Instead, the court looked to the robust history of other cases addressing §230 immunity, noting the varieties of causes of action that had been held barred. Among those causes of action were defamation, nuisance and premises liability, invasion of privacy, misappropriation of right of publicity, and negligent failure to control. With these cases supporting a broad scope of immunity, the court held that the second element in the test for §230 immunity had likewise been met.

Finally, the court easily dispensed with the third element of the test, noting that the record was devoid of any allegations or evidence that anyone other than Moore was responsible for generating the offending content.

[Also covered at IP Law Observer]

Delfino v. Agilent Technologies, Inc., No. 1-03-CV-001573 (Cal. Ct. App. 6th Dist., December 14, 2006)

Big time blogger faces big time copyright suit

Case promises fair use showdown in blogging context.

[Thanks to Venkat for alerting me to this case.]

The widely-read Los Angeles-based gossip blogger Perez Hilton, whose blog features all sorts of tabloid-like commentary on Hollywood culture, has been sued by X17, a photo agency known for collecting images of celebrities in sometimes not-so-flattering situations. X17 is claiming copyright infringement, and, according to this article from the Boston Herald, the claimed damages are quite substantial (about $7.5 million).

X17 says that Hilton has used its images of celebrities without permission, but Hilton is claiming fair use. And this presents and interesting question. The plaintiff is characterized as a paparazzi agency by this L.A. Times article. It looks like Hilton simply appropriates the images of others, and, using photo editing software, scrawls handwritten messages upon the images. He then posts them with commentary and reports of the celebrities’ goings on.

So will Hilton’s fair use argument get him off the hook? The Copyright Act provides that a defendant’s use of a work is fair if, among other things, the use was made “for purposes such as criticism, comment, [and] news reporting.” Hilton’s lawyer says that the use in this case is fair commentary and a transformation of the original works.

With the dispute framed this way, we’re presented with the question of what are the purpose and character of original paparazzi photos? Are they made for purposes of poking fun and fostering gossip or are they made for some other reason? That “some other reason” seems like it could be elusive. In any event, we’re likely to see X17 make some distinction between serious paparazzi efforts and the efforts of Hilton to make his commentary.

Atkins diet website gets First Amendment protection from negligent misrepresentation claim

In the Spring of 2001, Plaintiff Gorran decided to go on the wildly popular low-carbohydrate Atkins Diet. His cholesterol skyrocketed by almost a hundred points within the first two months, but he stayed on the diet anyway until 2003. After he experienced chest pains, he underwent an angioplasty to unclog an artery.

So Gorran sued Atkins Nutritionals and some other parties, claiming, among other things, that the information on the Atkins website about the diet constituted negligent misrepresentation. The defendants moved for judgment on the pleadings, and the U.S. District Court for the Southern District of New York granted the motion.

The court held that the content on the Atkins website that Gorran complained of could not be the source of any negligent misrepresentation, as it was fully protected by the First Amendment. Gorran had argued that the website functioned “as an electronic store to promote various [D]iet-related food products” and contained, therefore, commercial speech.

The court saw it differently. Indeed the site contained some commercial content (e.g., products for sale). But the content that Gorran alleged was negligent misrepresentations was merely general advice pertaining to the diet. That content was non-commercial. Accordingly, the information was “afforded full First Amendment protection,” and the claim was dismissed.

Gorran v. Atkins Nutritionals, Inc., — F.Supp.2d —-, 2006 WL 3586267 (S.D.N.Y., December 11, 2006).

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