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Archived: 10/04/2007 at 19:05:48

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October 03, 2007

The 700 MHz Club: Verizon’s Challenge to the FCC’s Open Access Requirements

I. Introduction

With the passing of the Deficit Reduction Act of 2005, Congress amended Section 309(j)(14) of the Communications Act of 1934, setting a February 17, 2009 deadline for the switchover from analog television to digital television.[1] After this deadline, all full-power television station licensees that hold a license to operate on a frequency between 698 and 806 megahertz (MHz) may no longer operate on that frequency.[2] On a television, these frequencies encompass channels 52 to 69.[3]

As a result of this freed up bandwidth going back to the government, Congress instructed the Federal Communications Commission (FCC) to auction off licenses to operate on these frequencies.[4] The purpose of these auctions is to encourage the development of new technology, to encourage competition, to recover a portion of the value of the spectrum for public use, and to encourage efficient and intensive use of the electromagnetic spectrum.[5]  According to some estimates, the auction of these frequencies could raise in excess of $10 billion.[6]

Continue reading "The 700 MHz Club: Verizon’s Challenge to the FCC’s Open Access Requirements" »

October 02, 2007

Balancing Public Interest with the Right to Publicity

    Celebrities work hard to create a public interest. Celebrities like Paris Hilton capitalize on this interest earning money for endorsements, appearances, and entertainment roles. While it is important to protect the intellectual property rights of this persona, we must be careful to also protect free speech rights. First will I look at the substantive law surrounding the right to publicity then explore why Hallmark's work is protected under the First Amendment.
    The First Amendment of the United States Constitution provides that “Congress shall make no law . . . abridging the freedom of speech, or of the press.” Additionally, Article 1 Section 2 of the California Constitution allows that “[e]very person may freely speak, write and publish his or her sentiments on all subjects, being responsible for the abuse of this right. A law may not restrain or abridge liberty of speech or press.”  The California legislature effectively codified the freedom of speech guarantees found in the United States and California Constitutions:(a) Any person who knowingly uses another's name, . . . photograph, or likeness, in any manner, on or in products . . . shall be liable to the injured party or parties[.] (d) For purposes of this section, a use of a name, . . . photograph, or likeness in connection with any news, public affairs, or sports broadcast or account, or any political campaign, shall not constitute a use for which consent is required under subdivision (a). [1]
    The constitutional guarantees of freedom of expression apply equally to publications, whether it is a news report or an entertainment feature; therefore, newsworthiness is not limited to “news” pertaining to current events. [2] Furthermore, it is the respondent’s burden to demonstrate that the facts published about him were not newsworthy. The contents of the publication are protected as newsworthy only if they have some substantial relevance to matters of legitimate public interest. [3] Newsworthiness is not governed by tastes or limited interests of an individual judge or juror; a publication is newsworthy if some reasonable members of the community could entertain a legitimate interest in it. [4] Public interest, in published matters that allegedly appropriate name or likeness, attaches to people who by their accomplishments or mode of living create bona fide attention to their activities. [5]
    The scope of the privilege extends to almost all reporting of recent events, even though it involves the publication of a purely private person's name or likeness. [6] There is a public interest that attaches to a person who has achieved “a marked reputation or notoriety by their accomplishments, mode of living, professional standing or calling.” [7] The accomplishments and way of life of such persons may legitimately be mentioned and discussed in print. [8] This discussion can take place through satire.
    Due to the Paris Hilton’s acting and music career and recent stay in jail, she has relinquished part of her expectation of privacy. She has, through her choice of career, created a marked reputation, creating legitimate public interest. The card shows Paris Hilton’s head super-imposed over a cartoon waitress with the dialogue: “Don’t touch that, it’s hot. What’s hot? That’s hot.” The interior of the card, the left side reads "The  Really, Really, Really, Really, Simple Life." with a cartoon image on Paris sitting in a jail cell. The right side contains the words "I hope your birthday is really, really, really, really, happy." The card is commenting on an image she has created that is of the public interest. The image is one of an airhead who likes to go out to clubs and socialize. Her life is simple and carefree. She goes to many events and parties to expose herself to the media. She makes her living off of endorsements, appearances, movie, and television acting. Her recent arrest and conviction for driving while intoxicated, a news event, adds an interesting perspective to Hilton's life. Perhaps, her life is not as idyllic as she portrayed to the public.  Hilton’s past mode of living, as a socialite and a movie star, creates a bona interest in her activities, thereby, creating a valid public interest removing Hallmark from any liability.
    It may feel like a stretch to call the card “news”,  but the California state statute provides for another exception: (d) For purposes of this section, a use of a name, . . . photograph, or likeness in connection with any news, public affairs, or sports broadcast or account, or any political campaign, shall not constitute a use for which consent is required under subdivision (a). [9] Courts have interpreted this to mean that matters of public affairs are exempt from the consent required under California Code section 3344 (d). [10]  The term “public affairs” includes not only newsworthy information, but also things that would not necessarily be considered news. [11] Moreover, the public affairs must be related to real-life occurrences. [12] The focus of the card is to compare the recent arrest and jail stay of Mrs. Hilton to the persona the public understood. This persona is a public affair. Her mode of living creates a bona interest in her activities, thereby, creating a valid public interest.
    When an artist is faced with a right of publicity challenge to his work, he may use as an affirmative defense that the work is “protected by the First Amendment inasmuch as it contains significant transformative elements. . . ." [13] 
    Courts look to see if the “celebrity likeness is one of the ‘raw materials’ from which an original work is synthesized, or whether the depiction or imitation of the celebrity is the very sum and substance of the work in question.” [14] Courts ask if the product containing the celebrity’s likeness is so transformed that it has become primarily the respondent’s own expression rather than the celebrity’s likeness. The word “expression” means an expression of something other than the likeness of the celebrity. [15] Courts have looked at this from a quantitative rather than a qualitative inquiry, asking if the literal/imitative or the creative elements dominate the work. [16]
    Hallmark created a card that held a meaning beyond the image of Paris Hilton. The card significantly transformed the meaning of likeness.  The meaning behind the imagine of Hilton's head was most likely to drum up public interested in her.  It is important that the public remained interested in her so she could continue to make a living off of endorsements, appearances, etc. The statements, "That's Hot" reminds the public of Hilton's old persona, the carefree Hilton with the catch phrase "That's Hot." This combine with the cartoon of the waitress give that statement new meaning, it reminds the reader of her fall from grace. The interior of the card confirms this. Hilton was arrested. She is fallible, just like everyone else. These statements sufficiently transform the images from merely exerting the likeness of Hilton to creating a new meaning. The new meaning is that no one's life is perfect, not even Paris Hilton's so do not worry about your concerns and have a happy birthday.
    Celebrities cannot be surprised when they create a public interest in their actions, that the public will remain interested. There is an understandable desire to protect the image that Hilton has worked hard to develop. It is her mode of living. However, when your mode of living is derived from creating public interests, we cannot be expected to curtail First Amendment rights to protect to Hilton's investment. This is a risk she took in the industry she chose. Hallmark was within its First Amendment rights to comment on Paris Hilton's persona.


[1] Cal. Civ. Code § 3344(a),(d)(West 2007).

[2] See, Gates v. Discovery Communications, Inc., 101 P.3d 552, 562 (Cal. 2004), and Shulman v. Group W Productions, Inc., 955 P.2d 469, 486 (Cal. 1998), and Comedy III Productions, Inc. v. Gary Saderup, Inc., 21 P.3d 797, 803 (2001).

[3] Shulman, 955 P.2d at 478.

[4]  Id. at 479.

[5] Dora v. Frontline Video, Inc. 18 Cal. Rptr. 2d 790, 792 (Cal. Ct. App. 2d Dist. 1993).

[6] Rodney A. Smolla, Part II. Invasion of Privacy and Related Torts, Law of Defamation § 10.6 (2d. ed. 2006).

[7] Eastwood v. Superior Court, 198 Cal. Rptr. 342,350 (Cal. Ct. App. 2d Dist. 1983) (holding that a celebrity has relinquished a part of his privacy interest to the extent that the public has a legitimate interest in his doings affairs or character).

[8] Id.

[9] Cal. Civ. Code § 3344 (a),(d)(West 2007).

[10] Dora, 18 Cal. Rptr. 2d at 790.

[11] Compare Id. (holding the term 'public affairs' is not limited to politics or public policy, because that would jeopardize society's right to know, since broadcasters could be sued for use of name and likeness on subjects that “do not relate to politics or public policy, and may not even be important, but are of interest”), and Gionfriddo, 114 Cal. Rptr. 2d at 318 (holding that Baseball is the national pastime; therefore, baseball league's uses of retired baseball players' likenesses on Web sites, documentaries, and game day programs were public affairs uses exempt from consent under right of publicity statute).

[12] Dora, 18 Cal. Rptr. 2d at 792.

[13] Comedy, 21 P.3d at 809.

[14] Id.

[15] Id. (holding that the reproductions of images of The Three Stooges on t-shirts were not sufficiently transformed because the overall goal was to create literal depictions of The Three Stooges to exploit their fame); Winter v. DC Comics, 121 Cal. Rptr. 2d 431, 441 (Cal. Ct. App. 2d Dist. 2002) (holding the use of Winters' identities and stage personae's in comic books where not sufficiently transformative when there is no new meaning attributed to their musical talent, or their works or performances).

[16] Comedy, 21 P.3d at 809.

October 02, 2007

Google's AdWords Faces New Litigant

I. Background

Google currently derives most of its revenue from its AdWords and AdSense advertisement programs.[1] Through its automated AdWords, Google sells advertisement space, with prices based on either cost-per-click or cost-per impression. Google enables advertisers to closely target potential customers through “keyword advertising,” where advertisers bid on keywords for their ad campaigns. Keywords can be single words such as “tennis,” or phrases such as “tennis lesson” and “tennis racquet string.”[2]

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Does SOX reduce the competitiveness of New York Stock Exchange (NYSE) in the cross-listing market

INTRODUCTION:
In this Post-post-Enron era, people are moving from the regulatory boom to a new awareness of the costs of the Sarbanes-Oxley (SOX) Act.[1] One of this awareness is that SOX hurts the competitiveness of New York Stock Exchange (NYSE) in the cross-listing market. Indeed, a popular explanation for the recent decrease in foreign listings on the exchanges in New York is that the passage of the Sarbanes-Oxley (SOX) Act of 2002 has made U.S. listings significantly less attractive to foreign companies.[2] However, two recently studies provide different view on the impact of the SOX to the competitiveness of NYSE in the cross-listing market.[3]

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Casper the Lonely Ghost: Buyers Don’t Want Haunted Houses

As intriguing as haunted houses are, they are not an easy sell.  Whether you believe in ghosts or not, this is the scary truth: if a home has had a murder, suicide, or illness take place in it, it is “psychologically impacted” and carries a supernatural stigma.  [1]  This fact alone may keep buyers away more than any of its physical characteristics.  [2]  According to a study done by professors at Wright State University, psychologically impacted houses take 50% longer to sell than homes with comparable features.  [3]  On top of that, they price at an average of 2.4% less than those that do not come with a supernatural tenant.  [4] And since apparitions are not always readily apparent to the prospective buyer, sellers with stigmatized property are faced with the temptation to keep their ghosts a secret.  Legally though, it may not be in their best interests to do so.

Continue reading "Casper the Lonely Ghost: Buyers Don’t Want Haunted Houses" »

September 28, 2007

Sampling in the Post-Bridgeport World

The 6th Circuit decision in Bridgeport v Dimension Films held that sampling a previously recorded work was a per se copyright infringement, regardless of the quantity of recorded material taken.  Though affirmative defenses such as fair use still apply, the court found that a bright-line rule eliminating any de minimis defense to copyright infringement in the context of sampling is more efficient.  As a result, using even a microsecond of a recorded work as part of another work is now a copyright violation.  According to the court, this is justified by the simplicity of the new rule and the ability of the market to set fair prices for samples.  Unfortunately, the court's simplistic analysis of the issue doesn't quite match up with the reality of the recording industry.

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Legal Outsourcing: The Endangered Associate

            For the past 30 years United States manufacturing jobs have been outsourced to foreign countries as a means to save both time and money. [1] Long thought to be immune to outsourcing, American workers in the service industry have recently also been replaced by cheaper foreign workers. [2] For example, customer service and technical support telephone numbers are rerouted to call centers in India. [3] As service providers themselves, should lawyers and law students be worried that they may too be replaced by a cheaper alternative? Is there a substitute for seven years of higher education and a degree worth six figures of student loans? In actuality, there is, and in-house legal departments and law firms alike are taking advantage of the opportunity.

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September 25, 2007

Privatization In China

The term privatization was believed to be coined in 1936, first appearing in a chronicle published in “The Economist”. It did not become popular until 1980s when most European countries began their privatization efforts. With the fall of USSR and other socialist countries in the early 1990s, the tide of privatization has reached a lot of developing countries. As an example, for four Eastern European countries (namely Poland, Hungary, Czech and Slovak) in Eastern Europe, “the average share of national GDP attributable to the private sector increased from 20% to more than 50% over the three year period 1990-1993.” [1]

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Get Ready for Mobile Ads

Nokia Corp. announced on September 17, 2007 that it has reached a definitive agreement to acquire Enpocket, Inc. [1] The move is set to boost Nokia’s products and services in the area of mobile advertising. [2] 

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Navigating the Chinese Real Estate Market

I. Introduction

In comparison to the sagging US real estate market struck by the subprime mortgage crisis, the Chinese real estate market has become more appealing to investors. Different from the late1990s, when foreign investment almost exclusively flew from East Asia, the source of capital has become much more diversified. In particular, some U.S. financial institutions have started navigating the Chinese real estate market. 

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September 24, 2007

It’s Not Easy Being Green [1]: The Tech Industry Seeks Greener Solutions to Its Rapidly Increasing Energy Demands

I.  Introduction 
Why do companies go green?  A cleaner, more efficient energy solution certainly sounds progressive and looks great on paper, but aside from generating good public relations with environmental groups, is it an economically sound investment?   In the case of the tech industry and its rapidly increasing energy costs and demands, it may be their only option.  Put another way, the answer may be a resounding "Yes."

To illustrate this problem, take for example the ubiquitous IT data center, or the air-conditioned computer farms found at the heart of almost any large technology firm.  [2]  They offer increasingly more complex and useful applications, web pages, internet traffic and processing power, but at significantly increasing costs.  [3]  Data centers are massive energy consumers and may require as much as fifty times the power of a comparably sized office space.  [4]  Despite some recent notable improvements in hardware power efficiency [5], the Environmental Protection Agency (“EPA”) released a report on August 7, 2007 that projected the tech industry’s overall electricity consumption to double between 2006 and 2011.  [6]

Continue reading "It’s Not Easy Being Green [1]: The Tech Industry Seeks Greener Solutions to Its Rapidly Increasing Energy Demands" »

September 23, 2007

How Can We Protect Fashion Designs With Trademark Law?

     Gucci’s shoes, Louis Vuitton’s bag, and Chanel’s clothes . . . no one would deny the fact that the fashion industry continuously invests tremendous amounts of capital to intellectual creativity and marketing. Such investments earn the industry a tremendous amount of money. As brand names and trademarks become more recognized, trademark owners struggle to find strategies to protect their trademarks and designs from appropriators.

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September 21, 2007

Natural Resources Policy and the Political Correctness Movement

I.  Introduction

     Balancing environmental responsibility with economic efficiency seems an appropriate goal when it comes to our policy towards natural resources. However, such a balance will be difficult to achieve until the environmental movement abandons its allegiance to the political correctness movement and allows its ideas to stand on their own merits. As the third largest country in the world, inferior in size only to Russia and Canada, with 9,826,630 square kilometers of land area to consider, the issue of natural resources policy is certainty an important one for the United States.[1] Among the legion economic topics constantly being debated, however, it seems to receive comparably little attention. Perhaps because of our unparalleled economic prosperity, stemming primarily from industrial and technological, rather than natural, sources, we simply have not been forced to confront issues surrounding our natural resource policy with the vigor they deserve.   

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When Pretend Money Has Real Value: A Study of Virtual Property in Online Gaming

The increasing availability of broadband Internet has led to the popularization of virtual worlds.  As of September 17, 2007, Linden Research, Inc. ("Linden Lab") boasted 9,562,490 "residents" in Second Life, an Internet community modeled after real world environments and mimicking real life interactions. [1]  Those who are more interested in escaping reality can happily immerse themselves in Paragon City, where a mere $29.99 membership and a $14.99 monthly fee allows an online gamer to battle villains and connect with other players as a spandex-clad superhero in NCsoft's "City of Heroes" ("CoH"). [2] Market analysts predict that online games will yield $11.5 billion of revenues worldwide in 2011 at a 25.2 percent compound annual growth rate. [3]  Virtual worlds have become the newest medium in which Internet denizens explore, play, and interact.

Continue reading "When Pretend Money Has Real Value: A Study of Virtual Property in Online Gaming" »

September 20, 2007

Securing IP Interests Means Securing a Future for Your Business

       Starting a new business can be a scary venture, especially for an inexperienced entrepreneur.[1] However, adhering to one little known business fundamental can help make the process run as smoothly as possible.[2] Specifically, securing one's intellectual property (“IP”) interests from the start can secure a solid future for a new business by ensuring more funding from venture capitalists and investors.[3] IP traditionally includes patent, trademark, copyright and trade secrets, all of which can be protected with the right legal knowledge or competent attorney.[4] This article explains the four types of IP interests, their advantages and disadvantages and the benefits of securing them during the start-up stage of new businesses. 

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