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Legal Updates 1999

1.
Rights Clearance Alert: Buzz Aldrin
2.
Digital Millenium Copyright Act of 1998
3.
Can Landmarks Be Trademarked?
4.
Questions and Answers Regarding Trademarks and Landmarks
5.
Bridgeman Art Library vs. Corel Corporation
6.
Bridgeman Art Library vs. Corel Corporation II
7.
Fees for Filing Copyright Registration
8.
Copyright Office Proposes to Increase Certain Fees July 1, 1999
9.
More on the Digital Millenium Copyright Act
10.
a. Change to Recommended Delivery Memo
b. Insurance
c. Copyright/Update for Copyright Commandments
11.
a. Smiley Face
b. Registration of CD-ROMs
12.
Recent Trademark Case -- Elvis Presley
13.
The European Union's Privacy Directive
14.
a. U.S. Copyright Office Fee Increase
b. Thank You, Thank You, Thank You for Photoplus Expo West
c. Geographic Guilty of Copyright Infringement>
15.
Compulsory Licenses for PBS Broadcasts
16.
Additional Information Regarding Licensing to PBS
17.
Digital Millenium Copyright Act
18.
The Horse-Whisperer Case
19.
Infringement Regarding Moving Images Derived From Still Images
20.
Granting of Perpetual Rights
21.
Tiffany Design Inc. vs. Reno-Tahoe Specialty Inc.
22.
Update to Gentile vs. Rock and Roll Hall of Fame
23.
New Copyright Infringement Act Passed By Congress
24.
Court Holds That Scanning of a Maze Is an Infringment
25.
Visual Web Crawlers
26.
Duration of Copyright

 

1. RIGHTS CLEARANCE ALERT: BUZZ ALDRIN
It has been brought to my attention that several PACA members have had clients contacted by an attorney representing the astronaut Dr. Buzz Aldrin as the result of a use of a NASA originated photograph of an astronaut standing on the moon. The allegation is that the use of the image for any commercial purpose violates Dr. Aldrin's right of publicity. Although no identifying features of Dr. Aldrin are recognizable since he is encased in a space suit, his attorney asserts that the photograph itself is so famous, including the composition and pose, that Dr. Aldrin is recognizable as the astronaut. This is a novel theory of liability and has not been tested in the courts. His attorney is persistent in seeking compensation from the ultimate user. The particular image is of an astronaut standing on the moon with the reflection of Neil Armstrong in the visor.>

2. DIGITAL MILLENIUM COPYRIGHT ACT OF 1998
The Digital Millennium Copyright Act ("DMCA") was signed into law on October 28, 1998. It serves to implement two World Intellectual Property Organization (WIPO) treaties as well as a number of copyright related issues. The DMCA is divided into five separate titles. The Copyright Office recently published an 18-page summary of the various titles. This summary can be found at the Copyright's Office home page www.loc.gov/copyright/.

The DMCA is a complicated piece of legislation. Already technical corrections are planned, as there are two new sections 512 to the Copyright Act. Over the next few weeks I will try to highlight some of the provisions that may be of interest to the members. This update will focus on the new Section 1202 of the Copyright Act, which protects the integrity of copyright management information (CMI). An example of CMI would be a Digimarc style system that imbeds copyright information into the digital image. This section acknowledges that although the Copyright Act currently prohibits unauthorized copying of work, technology has enabled copying to be done with ease, and often in the privacy of ones home. Since policing of such copying is unrealistic, technological "self-help" is necessary to encourage digital commerce. This section recognizes the need for CMI to function as self-help and prohibits the tampering with CMI.

Section 1202 addresses both false CMI and the removal or alteration of CMI. In order to be liable, the falsification or removal of the CMI must be done with knowledge, (for criminal penalties) or with reasonable grounds to know that it will induce, enable, facilitate or conceal an infringement. CMI is defined as identifying material about the work, the author, the copyright owner, and in certain cases the writer, director or performer of the work, the terms and conditions for use of the work, and such other information the Register of Copyrights may prescribe by regulation. Law enforcement, intelligence and governmental activities are exempt.

A person may bring a civil action in federal court against anyone who violates this section. The court can reduce or remit damages if the violator proves that it was not aware and had no reason to believe that the acts constituted a violation. Non-profit libraries, archives and educational institutions are entitled to a complete remission of damages in these circumstances. [A notice on a web site that contains CMI should advise users that tampering with CMI is a violation of the Copyright Act to avoid a claim that the violator was unaware.] Criminal penalties apply to wilful violation for purposes of commercial advantage or private financial gain. Penalties can range up to a $500,000 fine or up to 5 years imprisonment for a first offence, and up to $1,000,000 fine or 10 years imprisonment for a subsequent offence. [Non-profit libraries, archives and educational institutions are exempt from criminal liability.]


3. CAN LANDMARKS BE TRADEMARKED?
Can you imagine a picture of New York without any landmarks in the skyline? No Chrysler Building, no Public Library, no Flatiron Building, no Rockefeller Center? Would designers, illustrators, and photographers then be forced to create generic skyscraper buildings, using Photoshop to disguise the actual buildings when depicting, say, a scene of Fifth Avenue at Christmas? Sounds far-fetched? Not if you share the opinion of the owners of the New York Stock Exchange, the Chrysler Building, Rockefeller Center, the Public Library, Radio City Music Hall, and the Flatiron Building, among others.

Some owners of Manhattan buildings are trying to prevent use of illustrations or photographs of their buildings on everything from advertising to note cards and textbooks. The problem is now trickling down to the illustrator and graphic artist who works either on assignment for a client or selling stock. Clients are becoming gun-shy in the face of demand letters by large corporate building owners requiring that creators of images supply property releases or clear the usage rights. In many cases this simply results in another type of work being chosen for the job. No own wants to risk legal action or having to pull an advertisement after it's been created. Few creators can afford to be caught in a lawsuit over usage rights.

THE LIABILITY BANDWAGON
Licensing is a grant of a limited right to use a trademark, copyright, or, with publicity rights, one's name, likeness, or portrait. Licensing has grown into a multibillion-dollar industry in this country. Trademarks and logos are splashed on everything - bags, hats, jackets, jeans, shoes, sunglasses and T-shirts, so that many Americans look like walking advertisements. The right of celebrities to control the exploitation of their name, likeness, and even voice extends well beyond their death. Now the owners of buildings have jumped on the licensing bandwagon. The owner of the Chrysler Building, for example, has demanded that Fishs Eddy, a Manhattan tableware store, cease selling a line of "212" dishes, claiming that the illustration on the tableware violates its trademark of the Chrysler Building. (The dishes contain illustrations of iconic buildings from the jazz age, including the renowned Chrysler spire). The New York Stock Exchange, alleging trademark violation has sued a casino in Las Vegas for building a model of its facade on their gambling floor.

This craze to control the "exploitation" of property is not limited to New York. The artist Karen Nangle, known for her drawings of historic buildings in Savannah, Georgia, has received demands from the current owner of the city's Mercer/Williams House to cease distributing her cards of the house based on an alleged trademark violation. What is next? Will all recognizable property be off limits? What about your ordinary seaside cottage, barn, or suburban home?

How did we get to this point? Legally, there is very little, if any, basis for preventing artists, illustrators, photographers, or even souvenir makers from creating, reproducing, and distributing their interpretation of a building. Posters, postcards, and replicas of the Chrysler Building have been created for years without anyone raising so much as an eyebrow. While copyright protection was extended to buildings a few years ago when the United States became a member of the international Berne Convention, this protection is essentially limited to constructing look-alike versions of a building or nearly identical building. The act specifically provides that the owner of the copyright to a building which is located in, or visible from, a public place, cannot prevent third parties from taking or distributing photographs of the building. The copyright laws are not the answer to building owners' efforts to control any photographic or illustrative reproduction of their property. If copyright is not the answer, what about rights of publicity and privacy? These are the laws, by either state statute or case law, that prohibit the use of a person's name or likeness for commercial use. But these laws only protect people, not property. They were originally based on an area of tort law, which evolved to prevent injury to one's feelings or reputation, such as preventing the disclosure of private facts about an individual. But a building has no feelings or reputation that can be injured. Therefore, publicity rights are of no assistance to building owners in their effort to control exploitation of their property. >
This leaves only the law of trademark for building owners to rely on. But the law of trademark is not a perfect fit. Trademarks are indicators, through design, words, or symbols, of the source of goods or services. If your baseball cap has a swoosh, you assume that Nike manufactured the hat and you can rely on its reputation for craftsmanship. Trademarks do not have to be registered in the United States, but there are some legal advantages. And if you continue to use a trademark, the rights can last forever, unlike copyright and patents that offer a limited period of protection. However, if you purchase "212" china from Fishs Eddy, with illustrations of the Brooklyn Bridge, Grand Central Station, the Empire State Building as well as the Chrysler Building, would you assume that the Chrysler Building was the source of the plate? Not likely. But this is exactly the argument the lawyers for the owners of the Chrysler Building are making.

Some buildings have distinctive structures or markings that you associate with a particular business. McDonald's is known for its golden arches. Howard Johnson's roofs are always orange. These are proper trademark designations. But the Chrysler Company does not own the Chrysler Building. A real estate company does. Surely people don't gaze up at the stainless steel spire and immediately think of Tishman Speyer Properties. Different businesses work on the many floors. The building as a structure does not represent any particular good or service. It simply represents what it is: a landmark skyscraper representative of the art deco period of architecture. The law in the area of building protection is very sparse. The only case I am aware of that prevented the commercial exploitation of a photograph of a structure is a unique case involving the 1964 New York's World Fair. This case, decided the same year, has never been followed by other courts. The case involved the still-standing Unisphere on the World's Fair grounds in Queens, New York. The facts are unusual, making this an example of the legal expression "bad facts make bad law." The defendant's request for an exclusive license to publish postcards, albums, and other items using the World's Fair buildings was denied. Despite that, the defendant went ahead anyway, and the World's Fair sued and won, despite strong dissent. No legal grounds were given, except that the court took "judicial notice that the New York World's Fair is universally acclaimed as one on the world's greatest shows in 1964-1965. In our opinion a photograph of a unique building, structure or object situated within the World's Fair grounds, to which an admission fee is charged, is a photograph of a show in which the plaintiff has a property right." This narrow ruling would not apply to buildings that are freely visible to the public.

In a more recent case the owners of the Rock and Roll Hall of Fame Museum brought a case against a photographer, Charles Gentile, who had created a poster of the museum against a vibrant sunset. Under the poster the words "Rock and Roll Hall of Fame, Cleveland" appeared. The museum alleged trademark and unfair competition violations in its complaint, asserting that the building was a symbol of the rock and roll movement and likened the building to the protected shape of a coke bottle. The museum initially won a preliminary injunction, but the decision was ultimately overturned. The appeals court stated that the museum was unlikely to succeed at trial on its claims and returned the case to the trial court. The appeals court found that the museum did not use the building as a symbol or indicator of goods, a requirement of trademark protection. The use of the name "Rock and Roll Hall of Fame" as a mere description was likely judged to be fair use. This ruling makes logical sense. To register a trademark, you must provide the Trademark Office with specimens of the mark. What is the mark in a building? What is actually deposited? A drawing of the building from a certain angle? Almost any illustrator or photographer can depict a building in a unique way. There are multiple viewpoints and angles from which to view any three-dimensional property. And what goods or service does the building represent? It is not like the golden arches where you can rightly assume hamburgers and french fries are sold.

As yet there is no follow-up decision on the Rock and Roll Hall of Fame case that provides further guidance. It is clear that owners of landmark buildings are going to continue to use trademark and any other laws to attempt to restrict the reproduction of their buildings. No one wants to be left out of the licensing bandwagon. How the courts will apply the law of trademarks to building is still in the offing. How this affects creators and publishers of images in the future is significant. Already publishers are avoiding the skylines of Dallas, Disneyland, and Las Vegas. The Graphic Artists Guild is currently working on an action plan to address this issue. Hopefully, the skylines of our cities and other landmarks will continue to be the subject of art and design.

Editor's Note: As PACA members know, Nancy Wolff was recently named PACA Counsel. Her firm has also begun a counsel relationship with The Weinberg Legal Group, a national law group based in Phoenix, Ariz., which is engaged exclusively in the practice of laws relating to intellectual property, digital technology, and new media, including the Internet.

4. QUESTIONS AND ANSWERS REGARDING TRADEMARKS AND LANDMARKS
I received several follow-up questions to my article on trademarks and landmark buildings.

I thought I would respond to the questions in this week's newsletter and share the answers with everyone.

QUESTION: Is there a distinction to be made between representing a property in a descriptive way (i.e. editorial) and representing a property in a commercial way?

ANSWER: Yes. Trademark law recognizes the right to use a trademark in a descriptive manner. The term, as with copyright law, is the defense of "Fair Use". For example, in the "Rock and Roll Hall Of Fame Case", the court, which reversed the earlier ruling that the photographer's sale of a poster of the building infringed the museum's trademark, found that the title under the poster "Rock & Roll Hall of Fame, Cleveland" to be descriptive and permissible. An article describing the historic buildings in the Wall Street area of New York City could publish photographs of the landmark buildings, including the New York or American stock exchange. The magazine would not be in violation of any alleged trademark rights in the buildings. However, if a financial services company wanted to use a photograph of the American or New York Stock Exchange in an advertisement, it would be advisable to seek permission of the exchange. In the commercial use, there is risk of confusion in showing a recognizable image of the stock exchange. The viewer could interpret the use of the image as the stock exchange endorsing the financial service company, when in fact it had not. Again, the underlying question is "Does the building represent a trademark? " Is it so connected to a particular business or service that if it is used in an advertisement an assumption of support or endorsement is made? Most buildings do not represent a particular business or industry, but some do. Ask yourself, is this more like McDonald's arches or a generic office building?

QUESTION: Is there a distinction between the use of a photograph of the exterior of a home as opposed to the use of a recognized landmark?

ANSWER: YES: In most instances, no laws prevent the reproduction of an image of a person's home. The laws that protect an individual's right of privacy, relate to the use of the person's name or likeness for commercial purposes. Even though an owner might recognize his or her own home, the home itself does not conjure up the image of the owner to the viewing public. Some homes may be so identified to the owner, that an association would be obvious. Most farm houses, suburban homes and common buildings would not have any association with a particular owner and no additional permissions would be necessary to use them commercially.

QUESTION: Why have we been recommending that photographers obtain property releases?

ANSWER: To prevent clients from being hassled by annoying homeowners that think that you need permission to use a photograph of their home. The problem is, everyone has the idea that you need permission for everything these days. Including a photograph of their home, stray cat and pet frog. And if they have a lawyer send your client a letter, it becomes your problem, even if they are wrong. A property release prevents the question from being raised, and allows for smooth transactions. It is more for preventative measures than a legal necessity.

5. BRIDGEMAN ART LIBRARY VS. COREL CORPORATION
The Bridgeman Art Library case against Corel Corporation is still waiting for a decision from Judge Kaplan after Bridgeman filed a motion requesting the court to reconsider its decision dismissing the action on a summary judgement motion by Corel Corporation.

As a background, the Bridgeman Art Library, a British company, brought a copyright infringement action against Corel Corporation based on the inclusion of approximately 120 images of fine art in a series of Corel CD-ROM titles of well known paintings of European Masters. Bridgeman has exclusive rights in many well-known works of public domain art from museums located around the world. It maintains a library of large format transparencies created by professional photographers of such works as well as a digital library. Bridgeman licenses these transparencies to clients for a fee. Since Bridgeman has exclusive access to many of the works and the only authorized transparencies, it was inferred that the reproductions included in the Corel CD-ROMS were unauthorized copies. Corel claimed that it obtained the images as 35-mm slides from a California Company, Off the Wall, Inc. The trial court dismissed the action upon a motion by Corel for summary judgement. (This means that the court found that as a matter of law Corel was entitled to judgement without the need for a trial to determine the facts.)

The court concluded that it must look to UK law to determine whether copyright exists in the transparencies. Under the UK version of the copyright act, the Copyright, Designs and Patent Act 1998, copyright protection is granted to "original literary, dramatic, musical or artistic works. The court held that the large format transparencies, taken by professional photographers were not protected by the act since they were not original. Because the transparencies strove to accurately reproduce the underlying works of art without any modification, they could not in the court's eye, be original. The court analogized the photographs taken by professionals to that of a photocopier and distinguished between photographs of people, places and events that were creative and deserving of copyright. The court determined that a photograph that was merely a copy of someone else's work could not be original despite the change of medium or talent used in taking the image. Although the law of the UK was relied upon, the court concluded that it would reach the same result under US law and found US law to be persuasive in analysing the UK law.

Bridgeman requested that the court reconsider its decision and provided the court with Amicus briefs from leading UK copyright lawyers, which suggested that the court misinterpreted UK law. Under UK law, they argued, the photographs of public domain works would be protected. Further, the court did not recognize that the US Copyright Office had accepted one of the transparencies for registration, indicating that it was sufficiently original to meet their requirements. Since courts rarely reverse themselves, it is likely that Corel will appeal the decision to the next higher court, the Second Circuit Court of Appeals. This decision has caught the attention of the photography community both in the US and abroad. Many museums and photo agencies, as well as PACA, have offered support in the form of Amicus briefs (friend of the court) in the event an appeal is undertaken.

This decision would appear to have far reaching affects, undermining the accepted notion that a professionally taken photograph is protected by copyright. Several recent cases have failed to recognize that photographs are original works of art, which suggests that the medium of photography as a creative medium is not understood. Taken to an extreme, any photograph of an existing object, for example, a sculpture, a work of architecture, or even Mount Rushmore, might not be considered original, since another author created the underlying work. If the experience and skills of a photographer are equated to a photocopy machine that merely records natural objects, the art of photography is lost. The selective eye of the photographer, the choice in camera, film, angle, lighting, composition etc. is then nothing more than a technical skill, unprotected by copyright.

If the skills of a professional photographer are reduced to such mechanical definitions, the digitization of photographs for use in an electronic medium is surely suspect as well. The Register of Copyrights has granted separate copyright protection to digital works, based on the enhancements made to the digital images after scanning. However, following the court's reasoning in the Bridgeman case, if the enhancements only serve to make the digital image more accurately reflect the underlying transparency, the transparency has not been adapted or transformed, and is therefore not original, and is denied copyright protection. Ironically, a poorly taken photograph of a work of art, or a poor scan, that differs from the original, whether it is out of focus or the color correction is off, would be entitled to protection, while the professional image would not. This anomaly flies in the face of years of industry practice and understanding and threatens many works found in archives worldwide. I have been asked by the Bridgeman Art Library to review the case in conjunction with an experienced appellate attorney and will keep you informed of any new developments.

6. BRIDGEMAN ART LIBRARY VS. COREL CORPORATION II
As I was writing to members about the Bridgeman Art Library V. Corel Corporation
decision last week, Judge Kaplan signed a 20-page memorandum decision addressing the post judgment request for re-argument and reconsideration.

After the decision, the court received several Amicus briefs from UK counsel asserting that UK law was not correctly applied. In addition, Professor Patry, a copyright expert, wrote the court on his own initiative, asserting the court misapplied the choice of law question. Having a second opportunity to review the case, the court reaffirmed its prior decision. Previously, the court looked at UK law to determine copyrightability. In this current decision, the court concluded that US law should apply.

The court elaborated on the issue of whether a transparency of a public domain work of art was subject to copyright under US law. Starting at the beginning, the court examined the history of photography as an art form protected by copyright. As early as 1884 in the case of Burrows-Giles Lithographic Co. v. Sarony, the Supreme Court of the Unites States held that a photograph was a "writing" under the Copyright Clause of the then existing Copyright Act. Citing the best known treatise on copyright law Nimmer, the court quoted a passage in which Nimmer reflects on two situations in which a photograph should be denied copyright for lack of originality. The situation that the court found persuasive in this case was "where a photograph of a photograph or other printed matter is made that amounts to nothing more than slavish copying".

Judge Kaplan noted that in order for a photograph of other printed work to be protected by copyright, the case law requires a "distinguishable variation, something beyond technical skill to render the reproduction as original". Further, the court concluded that a change in medium (such as from a painting to a photograph) is insufficient to find the requisite "distinguishable variation".

While the court concluded that the overwhelming majority of photographs would have at least a modest amount of originality required for copyright protection, "slavish copying" that only required technical skill would have no spark of originality and would not be protectible.

The court then reviewed UK law and determined that even under UK law, his prior decision was correct. At issue, seems to be the art of "realistic" copyright. Apparently the court did not recognize any create input in the professional photographic skills employed in creating the art reproduction transparencies. The photographer and the camera, was merely a skilled technician, akin to someone pressing a button on the photocopy machine. What has been understood as being part of the photographers creative process, the selection of lighting, angle, choice of film and camera, were equated with "sweat of the brow" and technical skills, that were not "original". The term "original" appears to be misunderstood as requiring originality in the subject matter. I believe, the originality is in the creative eye of the photographer, and the choices involving lighting, angle composition, mood, camera and film are all part of what is creative. And although in photography involving art reproduction, the photograph will never look like the painting itself. There would in fact be many differences in the way different photographers would light and approach the subject. And surely someone entering a museum and simply pushing a button on the camera would not achieve the same result as a professional photographer.

The case raises difficult nuances in copyright law. Since a "better" art reproduction photograph will more closely reflect the colors of a painting, the argument that this style of photography is only a "slavish copy", was easy for the court to accept given some of the prior court decisions in the US and the emphasis on the purpose of the transparencies to be exact copies without examining the differences. Since the decision was based on a motion before trial, there was no opportunity for the court to see a painting, a professional transparency and a non-professional photograph. The differences between the painting and the photographs would have been more apparent, instead of the similarities. Since the artistic aspects of this style of photography were not well developed in the case, if appealed, the role of Amicus (friend of the court) will be critical to help explain the artistic and aesthetic aspect of photo- realism. The notion that the choices a photographer uses in creating an image can be described as merely a technical skill, no more than a photocopy machine, could have repercussions if expanded to other areas of photo-realism. If the term "original" begins to stand for original in subject rather than original eye of the photographer, many types of photography can start to be called into question.

If anyone would like to read the full decision, I can make it available.

7. FEES FOR FILING COPYRIGHT REGISTRATION
The current fee schedule for filing copyright registration applications with the Library of Congress is effective through June 30, 1999. Fees are definitely going to increase after that time. The Library of Congress held hearings last October regarding the proposed fee increases. This February the Copyright Office sent a new proposal to Congress. The new proposed fee for a registration of a work in the visual arts (Form VA) is $30 per application. This represents a $10 increase over the current fee of $20. Although this proposed fee increase is less than what had been previously proposed, for a photographer with a large body of work, the increase could be significant. I would encourage everyone to register outstanding works before July 1, 1999, when the fee increase takes affect. There is still no word on any new regulations that will allow for group registration of photographs without regard to whether they are published or not. Currently a group of photographs can be registered as a collection for one fee is all the materials are owned by the same person and are "unpublished." Published photographs must be registered individually in most instances. I will keep you informed if any new regulations are forthcoming.

8. COPYRIGHT OFFICE PROPOSES TO INCREASE CERTAIN FEES JULY 1, 1999
The Copyright Office proposes to increase certain fees effective July 1, 1999. These include the fees for basic registration, document recordation, supplementary registration, search services, certificates, and additional certificates. The final status of the fee increase will be known on June 1. If, as anticipated, the fee increase goes into effect, any request received in the Copyright Office on or after July 1, 1999, for a service whose fee is scheduled to increase on that date must be accompanied by the new fee. Check the Copyright Office Website at http://www.loc.gov/copyright for additional information.

9. MORE ON THE DIGITAL MILLENIUM COPYRIGHT ACT
Section 512 of the Digital Millennium Copyright Act limits the liability of online service providers for copyright infringement. If an infringing work is posted on the Internet, section 512 may limit you from holding a service provider liable for the copyright infringement. However, these limitations are closely defined and a service provider may shield itself from monetary damages and injunctive relief only if it falls within one of the four enumerated categories.

These categories are limited to situations where:

1) The provider merely acts as a data conduit, transmitting digital information from one point on a network to another at someone else's request. Section 512(a).

2) The provider regularly retains copies, for a limited time, of material that has been made available online by a person other than the provider, and then subsequently transmits them to a subscriber at his or her direction. Section 512(b).

3) The provider has infringing materials on websites hosted on their systems. Section 512(c).

4) The provider refers or links users to a site that contains infringing material. Section 512(d).

For purposes of this weeks' update I will focus on Section 512(c) since it may carry the most direct consequences for PACA members.

Not all service providers may be shielded from liability. Section 512(c) defines an eligibility standard whereby if a service provider fulfils certain conditions it may consequently enjoy protection from a copyright infringement claim. Three conditions are listed: 1) The provider must not have the actual or circumstantial evidence of the infringing activity. 2) The provider must not receive a financial benefit directly attributable to the infringing activity, in a case in which the service provider has the right and ability to control such activity; and 3) Upon notification of claimed infringement, the provider must respond expeditiously to remove, or disable access to the infringing material. If the provider does not violate any of these conditions and has in addition filed with the Copyright Office a designation of an agent to receive notifications of claimed infringement, then no monetary damages or injunctive relief may be ordered against the service provider. (To find a list of designated agents, go to the Copyright Office Homepage.)

A service provider is defined as "an entity offering the transmission, routing, or providing of connections for digital online communications, between or among points specified by a user, of material of the user's choosing, without modification to the content of the material as sent or received."

It is important, however, for the copyright owner to provide proper notification of the infringement. If you find an infringing work on the Internet, specific procedures must be followed in order for the notification to be considered proper. It must be in written form, provided to the designated agent and must include a specified amount of information including an identification of the copyrighted work, the infringing work and information sufficient to locate the complaining party as well as the site of the infringing work. If the service provider promptly removes the infringing work then the provider is exempt from monetary damages. In addition, in order to prevent fraudulent notification, the subscriber may file a counter-notification. However, if the counter-notification states that the infringing work was removed because of mistake or misidentification, the provider can put up the work again within 10- 14 business days, unless you, as the copyright owner, file an action seeking a court order against the subscriber.

Although it may sound tedious, the Act is meant to protect service providers that merely post websites without any knowledge or control of the contents. In order to protect your rights to the full extent, you may bring a copyright infringement claim against the subscriber as well as the service provider for any works which may infringe upon your exclusive rights under Copyright law. However, if the service provider complies with the statutory requirements of section 512, you may find that you will not be able to prevail in your claim against the provider.

BRIDGEMAN ART LIBRARY
The Bridgeman Art Library has informed me of their decision not to proceed with an appeal of the federal court's dismissal of its claim against Corel Corporation for copyright infringement of its transparencies of public domain paintings.

10. CHANGE TO RECOMMENDED DELIVERY MEMO
Jane Kinne, Chair of PACA's Legal Committee, in conjunction with PACA Counsel urges that the following sentence be added to the recommended "Terms of Use" at the end of point #8:

In the event of unauthorized use, it is agreed that a retroactive license can be made available at a fee of ten (10) times the normal reproduction charge.

INSURANCE
Following interest from last year's PACA annual meeting, Taylor & Taylor has finalized an error and omissions insurance policy for PACA members. The blanket policy covers still images. An additional endorsement can be obtained for film and video clips and illustrations. The policy covers claims for: invasion of rights of privacy or publicity, libel, slander and defamation, copyright, trademarks and related claims.

If you wish to review the policy, contact Scott Taylor at Taylor & Taylor Associates, Inc. at either 212-490-8511 or 310-826-7200.

COPYRIGHT/UPDATE FOR COPYRIGHT COMMANDMENTS
Reminder, last October the Copyright Act was amended to extend the duration of copyright from life plus fifty years to life plus 70 years. Please update the Second Commandment of PACA's Copyright Commandments if you have it on your website or in printed material.

11. SMILEY FACE
A member recently asked about the use of the "Smiley Face" and thought there might have been a problem in using an image that contained a "Smiley Face." Well, thanks to the Internet, I was able to get to the bottom of this. In 1998 a Frenchman, Frank Loufrani did try to claim that he was the originator of the famous yellow smiley face that was on buttons, T-shirts, posters and about everything else since the 1960's. However, the "true" originator, Harvey Ball, now has his own website at www.worldsmile.com. He asserts that he originated the smiley face in 1963, well before the year Mr. Frank Loufrani claimed that he created the yellow face. Frank Loufrani has filed for US Trademark protection. When I checked the status on the USPTO website, the trademark application was still pending.

The smiley face would not be protected by copyright. It was freely distributed -- (it was the 60's)- without a copyright notice and therefore entered the public domain. Since copyright does not protect symbols, it might not have even been subject to protection had the proper procedures been followed. However, Harvey Ball has since attempted to register his "official" smiley face as a trademark of his newly formed World Smile Corporation to market Signature Smiley products. (The Smiley Face with Harvey Ball's signature.) Since we all now know that a trademark needs to identify goods and services, whether this mark truly serves as a trademark for his corporation after being freely distributed in the market for at least 35 years is questionable. He does use a TM instead of the (r) that might indicate that he has not been granted a trademark from the Patent and Trademark office and the application is yet pending. A press release posted on his sight infers that he does not intend to be the sole source of Smiley products but will compete in the marketplace with all others and donate his after-tax profits to charitable cause! If you have any other questions he left his attorneys e-mail address, Charles Ball! Since it does not appear that the smiley face has ever acted as the sole source of anyone's goods or services, a trademark claim would be weak by any party.

REGISTRATION OF CD-ROMS
In the days of our "paper" newsletters, I published an article on registering stock photo catalogs. This was after PACA's representatives visited the Copyright Office and met with Mary Beth Peters, the Register of Copyrights and other members of the Visual Arts Division to see if we could get some relief to the regulations that made catalog registration so difficult. As a result of their advice, we changed our PACA sample agreement with photographers to permit agencies to register the images as well as the catalogs in situations where the photographers transferred title to the photographs for registration purposes solely. The Copyright Office has regulations that require the copyright claimant to be the same for all the elements covered in an application. This solution got around that regulation.

The registration of CD-ROM catalogs is essentially the same. The form would be filled out the same way. You would use a form VA. In Space 2 "Name of Authors," you would list the name of the agency, and name three contributing photographs and then the actual number of other contributors. (i.e., Jane Smith, Joe Jones, Bob Green and 54 others). Space 4 "Claimant" would be the agency. Where it asks for transfer information in this section, you would state "By Written Agreement."

In Space 6(a) you would state "Some previously published images," and Space 6b would state "new images" or whatever the artwork is on the disk. The only difference with filing a CD-ROM catalog is the deposit requirement. You must provide the CD-ROM, as well a representative samples of the images (in color if they are in color). I have had no problem with providing thumbnail prints of the images. To satisfy the "representative" requirement, 50 images are usually enough. In your cover letter you should state what viewing software is used with the disk. A caveat with either the print or CD-ROM catalogs, if any of the images have been previously published, the registration will not cover the published images. The Copyright Office requires that published images be registered separately, with two copies of the image as first published.

If you have other questions concerning registration, you may contact me or check the Copyright Office Home Page at http://loc.gov/copyright. Circular 65 covers registration of multimedia works.

12. RECENT TRADEMARK CASE -- ELVIS PRESLEY
An interesting case has been decided that might have implications for those that are claiming that photographs of certain buildings and landmarks violate trademark rights of the owner, regardless of the angle, distance or view. The Unites States Patent and Trademark Office Trial and Appeal Board affirmed the final rejection for trademark registration, the likeness and image of Elvis Presley as a trademark for cotton fabric. The applicant tried to register the likeness of Elvis in all possible manners or presentation without regard to age, manner of dress or pose.

As each application for a trademark must only contain one drawing of the mark, the applicant failed to comply with the requirement that the applicant submit an acceptable drawing of its mark. The Trademark Act does not permit the registration of a concept or idea. The Trademark Appeals Board noted that if every likeness of Elvis from birth to death were covered by the application, the applicant would be in the position to prevent others from using or registering the specific images of other individuals (real or fictional) that resemble one of the thousands, if not millions, of vastly different photographs, film frames or video frames depicting Elvis Presley.

The court cited a New York case involving photographs of Babe Ruth (Pirone v. MacMillan) as published in a baseball trivia calendar. Here, Pirone asserted that the trademark rights in the word Babe Ruth included every photograph of Babe Ruth. The court noted that an individual's likeness is not consistently represented in a fixed image. In order to serve as a trademark, a particular photograph must consistently be used on specific goods. In this situation, no one pose of Babe Ruth had been used as a source to identify goods. Further, since the use of the name Babe Ruth was intended only to identify a great baseball player, it was not a trademark use.

These cases illustrate the problem in attempting to control the use of photographs under the law of trademarks. While owners of buildings, such as the Chrysler building, assert that the building itself is a trademark, the mark must identify a source of goods, which in most instances the building itself does not do. The image must be a consistent depiction of the trademark. A building, like a person, can be photographed in many ways. It can be in the morning or evening, a close up or as part of a skyline. Being three dimensional, there are many views and angles in which to depict the building. Under the law of trademarks, it seems unlikely that most building will qualify as a true trademark.

13. THE EUROPEAN UNION'S PRIVACY DIRECTIVE
Privacy issues on the Internet have been of recent concern in the United States, particularly in the area of children and the FTC has taken an active role in patrolling the Internet for sites that collect data concerning children. But the United States has essentially taken a position that businesses should regulate themselves in the area of data collection. Not so in Europe where the difference between the United States approach and the European Union is often referred to as the "Privacy Wars."

The European Union's Directive on Data Protection known as the Privacy Directive became effective on October 25, 1998. It requires that transfers of personal data take place only to non-EU countries that provide an "adequate" level of privacy protection. European countries have traditionally been more sensitive to the collection of personal data revealing information about their citizens. Most countries in the EU have had comprehensive privacy statutes in their countries for many years and have taken the requirement in the EU Data Directive as an opportunity to update and extend their privacy laws to protect the interests of their citizens. These privacy protection laws place severe restrictions on the collection and transfer of sensitive personal information, such as data revealing the individual's racial or ethnic background, political affiliation or union membership. These laws date back to the Second World War where personal data was seized to track down those considered undesirable. Europe developed a comprehensive statutory approach to privacy regulation to prevent future abuse.

Many US organizations have expressed uncertainty about the impact of the EU-required "adequacy" standard on personal data transfers from the European Community to the United States. The fear was that the EU would block data flows to the US due to the ineffectualness of our laws. A major concern is that the privacy directives require member EU states to provide judicial remedies and the payment of damages for the misuse of personal data. In fact, a report by the FTC in June of 1998 revealed that industry in the US was sorely lacking in its self regulation, noting that 85% of commercial websites collect personal information and only 14% provided consumers with any personal notice and only 2% had adopted the comprehensive privacy policies encouraged by industry leaders.

To head off devastating trade barriers that would result if the EU blocked the transfer of data to the US and to diminish the uncertainty over what was "adequate" protection, the Department of Commerce in consultation with industry with a stake in e-commerce issued draft "safe harbor" principles.

The following draft was dated April 19, 1999, and the Department of Commerce is currently collecting public comments regarding this draft. If companies voluntarily complied with the seven privacy principles they would presumably meet the minimal requirements necessary to continue to do business in Europe. These safe harbors are set forth at the Commerce Department Website at: www.ita.doc.gov/ecom/menu.htm.

Safe Harbor Principles
1. NOTICE: An organization must inform individuals about the purposes for which it collects information about them, how to contact the organization with any inquiries or complaints, the types of third parties to which it discloses the information, and the choices and means the organization offers individuals for limiting its use and disclosure. This notice must be provided in clear and conspicuous language when individuals are first asked to provide personal information to the organization or as soon thereafter as is practicable, but in any event before the organization uses such information for a purpose other than that for which it was originally collected or discloses it to a third party.

2. CHOICE: An organization must offer individuals the opportunity to choose (opt out) whether and how personal information they provide is used or disclosed to third parties (where such use is incompatible with the purpose for which it was originally collected or with any other purpose disclosed to the individual in a notice). They must be provided with clear and conspicuous, readily available, and affordable mechanisms to exercise this option. For sensitive information, such as medical and health information, information revealing racial or ethnic origin, political opinions, religious or philosophical beliefs, trade union membership or information concerning the sex life of the individual they must be given affirmative or explicit (opt-in) choice.

3. ONWARD TRANSFER: An organization may only disclose personal information to third parties consistent with the principles of notice and choice. Where an organization has not provided choice because a use is compatible with the purpose for which the data was originally collected or which was disclosed in a notice and the organization wishes to transfer the data to a third party, it may do so if it first either ascertains that the third party subscribes to the safe harbor principles or enters into a written agreement with such third party requiring that the third party provide at least the same level of privacy protection as is required by the relevant safe harbor principles.

4. SECURITY: Organizations creating, maintaining, using or disseminating personal information must take reasonable measures to assure its reliability for its intended use and reasonable precautions to protect it from loss, misuse and unauthorized access, disclosure, alteration and destruction.

5. DATA INTEGRITY: Consistent with these principles, an organization may only process personal information relevant to the purposes for which it has been gathered. To the extent necessary for those purposes, an organization should take reasonable steps to ensure that data is accurate, complete, and current.

6. ACCESS: Individuals must have [reasonable] access to personal information about them that an organization holds and be able to correct or amend that information where it is inaccurate. Reasonableness of access depends on the nature and sensitivity of the information collected, its intended uses, and the expense and difficulty of providing the individual with access to the information.]

7. ENFORCEMENT: Effective privacy protection must include mechanisms for assuring compliance with the safe harbor principles, recourse for individuals to whom the data relate affected by non-compliance with the principles, and consequences for the organization when the principles are not followed. At a minimum, such mechanisms must include (a) readily available and affordable independent recourse mechanisms by which an individual's complaints and disputes can be investigated and resolved and damages awarded where the applicable law or private sector initiatives so provide; (b) follow-up procedures for verifying that the attestations and assertions businesses make about their privacy practices are true and that privacy practices have been implemented as presented; and (c) obligations to remedy problems arising out of failure to comply with these principles by organizations announcing their adherence to them and consequences for such organizations. Sanctions must be sufficiently rigorous to ensure compliance by organizations.

The success of the US self-regulatory approach is uncertain. The European Commission working group that represents the privacy interests of European citizens has expressed great concerns about the Safe Harbor proposal. The voluntary nature of the scheme without independent investigative mechanisms and sanctions for failure to comply is still an issue. In addition, leading consumer groups in both the United States and Europe have also rejected the safe harbor approach as lacking an effective means of enforcement and redress for privacy violations. They issued a statement complaining that it places unreasonable burdens on consumers and unfairly requires European citizens to sacrifice their legal right to pursue privacy complaints through their national authorities. It also stated that the proposal fails to ensure that individual consumers will be able to access personal information obtained by businesses. On the other hand, industries active in e-commerce express difficulty in implementing these provisions, particularly in the area of enforcement. Certain aspects of the safe harbor, such as the onward transfer principle poses a duty and burden that the transferring party to provide the same level of privacy protection. Others complain that some of the language in the proposal is too vague and do not provide sufficient guidance.

It is uncertain whether these safe harbor principles will be adopted as written given the continued concerns. It is clear that the US and the EU must find some common ground with the increasing importance of e-commerce to harmonize their laws. In reviewing your own policy even for strictly US use, it is important to examine the following. Is it conspicuous? It should be available on your site where the clients enters into a transaction that includes any transfer if personal data (i.e. name address credit card, etc.) I would recommend having clients agree to the policy and click that they agree to the terms. It should be written clearly and in plain English (not lawyer-speak)! It should accurately reflect what your company is doing with the information. Do not say that you are not collecting certain information nor transferring the information to third parties if in fact you are. Your marketing department might have certain ideas for the use of the data that differs from other departments. Be very careful if you collect any sensitive data or are collecting information from children. Most simple transactions, involving name address and credit cards are not too risky if they are used for the purpose intended and kept secure. The collection and mining of individual preferences is what needs to be examined more carefully.

I will continue to update members as the area develops.

WEBSITE ALERT:
A site "Masters-of-photography.com" represents itself as a "gallery" although it has banner advertisements. It is displaying many works that may be represented by members under the guise of fair use and permits use on personal websites.

14. US COPYRIGHT OFFICE FEE INCREASE
Fees for basic registration (including forms VA and TX), document recordation, supplementary registration, search services, certificates and additional certificates increase on July 1, 1999. Any requests received on or after July for the above services must be accompanied by the new fee. All basic registrations are now $30 instead of $20, renewals are $45, supplemental registrations are $65. The search fee is now $65 per hour and certifications are also $65. A complete listing can be found at the Copyright Office Website www.loc.gov/copyright.

THE COPYRIGHT SOCIETY OF THE USA launched its new website www.FA(c)E-copyright.org, a copyright education initiative. FA(c)E stands for "Friends of Active Copyright Education." It is designed to explain copyright to young Internet users in plain English, and is divided into the basic forms of expression-images, words, music, film, and Internet. I have been involved with the steering committee and overseeing the still and moving images section. It is still a work in progress but is a good place to send people with copyright questions. It includes the basics of copyright, FAQ's and top myths. Any suggestions would also be appreciated.

UPDATE:
Last year I wrote about a copyright case in the SDNY involving a company, Richard Feiner that owned videos of Laurel & Hardy movies who was asserting ownership in publicity stills as a result. (Richard Feiner & Co. v. H.R.I. Inc., Co.) It had brought and action against a publication that had published one of the old publicity stills. Both sides had moved for summary judgment early on, which means that there are no facts in dispute to necessitate a trial, so the court simply needs to apply the law. The court had found in favor of the video owner, on the basis that the publication had conceded that Feiner owned the copyright in the photograph in question. HRI denied that it ever conceded that Feiner owned the copyright for purposes of Feiner's motion and appealed.

The publisher alleged in the appeal that the district court had erred in the decision because, although HRI had in fact conceded to the copyright, it was done only for purposes of their own simultaneously pending motion to dismiss, and not in respect to Feiner's motion for summary judgment. After the summary motion was granted, HRI had moved for reargument or reconsideration to assert its claim that the concession had been taken out of context, and that it did not believe Feiner held the copyright the photograph in question. HRI's request for reconsideration was granted, but the district court adhered to its original decision. Upon appeal, the US Court of Appeals found no support in the record for the district court's finding and reversed. The Court of Appeals based their decision on one major point. HRI had submitted a memo in opposition of Feiner's request for summary judgment. In this motion, they explicitly stated, "...Defendant in no way concedes that plaintiff is either the copyright owner or an exclusive licensee of Liberty..." Because this was expressly stated in the memo, the Court of Appeals felt that the district court ruling was premature, prior to discovery, holding that HRI was entitled to litigate the validity of Feiner's claim to the copyright.

In speaking with the attorney for the publisher, he felt confident that Feiner would not be able to establish copyright ownership in the photograph, since it was a publicity still and not a film grab from the video. In other words, the photograph itself was not in the film. I will continue to update you on this case since Feiner's attorney has contacted many client of PACA members, relying on the lower court's decision in attempting to force payment of thousands of dollars for the use of Laurel and Hardy publicity stills that have long been considered public domain.

THANK YOU, THANK YOU, THANK YOU FOR PHOTOPLUS EXPO WEST
Thanks to everyone who participated in the PACA-sponsored seminars and a very special thank you to all the people at FoodPix for a lovely evening at their wonderful studio. We are especially grateful to owners Jeff Burke and Lorraine Triolo and to M. Cheryl Anderson who coordinated everything for the event. It was a wonderful evening!!!! Thanks to our speakers Cathy Aron/Photo Network, JoAnn Calfee, Roberta Groves/H. Armstrong Roberts, Peter Howe/Corbis, Jeff Schultz/Alaska Stock, Roger Ressmeyer/Visions of Tomorrow, Cheryl Pickerell/Stock Connection, Dana Wallach/Corbis Digital, Leo Gradinger and Tom Mantoani/Zephyr Images, Mary Virginia Swanstock and Robert Dawson/Swanstock-The Image Bank, Bill Gluth and Shawn and Sally Weimer/Index Stock Imagery, Sonia Wasco/Grant Heilman Photography, Ron Scherl/StageImage, Mike Fisher/Custom Medical, and Jeff Burke/FoodPix. Thanks again to PhotoCraft and PDN, too.>

GEOGRAPHIC GUILTY OF COPYRIGHT INFRINGEMENT
Reprinted with permission from Selling Stock Online, June 16, 1999.
Judge Joan A. Lenard has found that National Geographic Society infringed the copyright of underwater publishers Jerry and Idaz Greenberg when they used Jerry's copyrighted images as reference materials for two projects without permission or compensation. The case was heard in Federal Court in the Southern District of Florida in Miami. The case has been referred to Magistrate Judge William C. Turnoff for the purposes of holding a settlement conference to determine the amount National Geographic will be required to pay to the Greenbergs.

This is the first time National Geographic has been found guilty of copyright infringement of a photographer's work. The case may open the door for legal action by other photographers against the Society. In a review of the facts of the case it was shown that Walter Cutler, the work-for-hire illustrator hired by the Society to produce illustrations for an educational GeoPack project, improperly used books produced by the Greenbergs as reference for his illustrations. On his working drawings Cutler noted the page references referring to the photographs he had copied so the Society editors could verify that the illustrations were accurate. This clearly laid the responsibility on the Society editors because they were fully aware of what had been done and were responsible to obtain proper permissions and deal with compensation issues. Cutler's illustrations also met the test of "substantial similarity" according to Judge Lenard. The Greenbergs had produced overlays from their books that clearly showed the illustrations were almost exact matches of the Greenberg's photos.

In challenging the Greenbergs' motion for Summary Judgement on Liability, lawyers for National Geographic Society argued that the newly created illustration did not violate the Greenbergs' copyright, and "that even if these images reflect copyrighted material, this use constitutes "fair use". Judge Lenard found that the illustrations "improperly infringed the photographs at issue, and that the doctrine of fair use is not applicable to these facts." The court took into consideration the four nonexclusive factors to be considered when determining whether the fair use doctrine applies and concluded, "that neither the GeoPack product nor the Jason Project poster qualify as fair use."

The four factors are:

1 - the purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes;

2 - the nature of the copyrighted work;

3 - the amount and substantiality of the portion used in relation to the copyrighted work as a whole; and

4 - the effect of the use upon the potential market for or value of the copyrighted work.

The courts detailed presentation of the facts related to each of these points should be useful to others faced with a "fair use" claim by any organization, and particularly National Geographic. Counts three and four in the Greenberg's case are not a part of this decision and dealt with the use of the Greenbergs copyrighted images in the "108 Years of National Geographic on CD-ROM". Earlier in the proceedings lawyers for National Geographic argued that the "Tasini" decision in the Southern District of New York confirmed their right to make uses in the "108 Years" project without compensating photographers in any way. The Greenberg's argued that "Tasini" should have no bearing on their case because that decision was being appealed. On this point the judge agreed with National Geographic and issued a partial summary judgment on the two counts. Thus, the arguments relating to the use of the Greenberg's images in the "108 Years" project were never heard. The Greenbergs have the option to appeal that decision of the judge.

Oral arguments for the appeal of the "Tasini" decision have been heard in the New York Appeals court and all parties are presently waiting for the judge's ruling in that case. The results of that case could affect the Greenberg's ultimate decision.

15. COMPULSORY LICENSES FOR PBS BROADCASTS
Ambreen Qureshi of Magnum raised a question regarding the usage of images by Public Broadcast systems. Magnum received a check for the use of two images in the amount of $129.56. It may sound too crazy to be true but it is.

This fee is in accordance with the royalty rate schedule published in CFR 253.8 "Terms and rates of royalty payments for the use of published pictorial, graphic, and sculptural works." Title 37 of the CFR is a series of regulations promulgated by the Copyright Office to enforce the provisions of the Copyright Act. Section II 8 of the Copyright Act, limits the exclusive rights granted copyright owners under the Copyright Act. These exclusive rights include the right to make reproductions and to display the work. Cost of living adjustments were made to these rates last December 1998.

Owners of pictorial works are not the only creators with limitations. Anyone who has recorded a song cannot prevent someone else from covering it or recording it as long as they pay the established compulsory license. That is why you can enjoy the songs of the Beatles waiting in an elevator!

I have provided the pertinent language in the CFR that lists the rates and definitions for your information:

(a) Scope. This section establishes rates and terms for the use of published pictorial, graphic, and sculptural works by public broadcasting entities for the activities described in 17 U. S.C. I 1 8. The rates and terms established in this schedule include the making of the reproductions described in 17 U. S. C. I I 8(d)(3).

(b) Royalty rate. (1) The following schedule of rates shall apply to the use of works within the scope of this section:

(i) For such uses in a PBS-distributed program:

(A) For a featured display of a work.

1998-2002 $64.78

(B) For background and montage display.

1998-2002 $31.59

(C) For use of a work for program identification or for thematic use.

1998-2002 $127.71

(D) For the display of an art reproduction copyrighted separately from the work of fine art from which the work was reproduced, irrespective of whether the reproduced work of fine art is copyrighted so as to be subject also to payment of a display fee under the terms of the schedule.

1998-2002 $41.95

(ii) For such uses in other than PBS-distributed programs:

(A) For featured display of a work.

1998-2002 $41.95

(B) For background and montage display.

1998-2002 $21.51

(C) For use of a work for program identification or for thematic use.

1998-2002 $85.76

(D) For the display of an art reproduction copyrighted separately from the work of fine art from which the work was reproduced, irrespective of whether the reproduced work of fine art is copyrighted so as to be subject also to payment of a display fee under the terms of this schedule.

1998-2002 $21.51

For the purposes of this schedule the rate for the thematic use of a work in an entire series shall be double the single program theme rate. In the event the work is first used other than in a PBS-distributed program, and such program is subsequently distributed by PBS, an additional royalty payment shall be made equal to the difference between the rate specified in this section for other than a PBS-distributed program and the rate specified in this section for a PBS-distributed program.

(2) "Featureddisplay"forpurposesofthisschedulemeansafull-screenorsubstantially

00 full-screen display appearing on the screen for more than three seconds. Any display less than full-screen or substantially full-screen, or full-screen for three seconds or less, is deemed to be a "background or montage display".

(3) "Thematic use" is the utilization of the works of one or more artists where the works constitute the central theme of the program or convey a story line.

(4) "Display of an art reproduction copyrighted separately from the work of fine art from which the work was reproduced" means a transparency or other reproduction of an underlying work of fine art.

(c) Payment of royalty rate. PBS or other public broadcasting entity shall pay the required royalty fees to each copyright owner not later than July 3 1 of each calendar year for uses during the first six months of that calendar year, and not later than January 31 for uses during the last six months of the preceding calendar year.

(f) Terms of use. (1) The rates of this schedule are for unlimited broadcast use for a period of three years from the date of the first broadcast use of the work under this schedule. Succeeding broadcast use periods will require the following additional payment: Second three-year period--50 percent; each three-year period thereafter--25 percent; provided that a 100 percent additional payment prior to the expiration of the first three-year period will cover broadcast use during all subsequent broadcast use periods without limitation. Such succeeding uses that are subsequent to December 31, 2002, shall be subject to the rates established in this schedule.

(2) Pursuant to the provisions of 17 U. S. C - I 1 8 (f), nothing in this schedule shall be construed to permit, beyond the limits of fair use as provided in 17 U.S. C. 107, the production of a transmission program drawn to any substantial extent from a published compilation of pictorial, graphic, or sculptural works.

§ 253. 1 1 Notice of restrictions on use of reproductions of transmission programs.

Any public broadcasting entity that, pursuant to 17 U. S.C. I 1 8, supplies a reproduction of a transmission program to governmental bodies or non-profit institutions shall include with each copy of the reproduction a warning notice stating in substance that the reproductions may be used for a period of not more than seven days from the specified date of transmission, that the reproductions must be destroyed by the user before or at the end of such period, and that a failure to fully comply with these terms shall subject the body or institution to the remedies for infringement of copyright.

16. ADDITIONAL INFORMATION REGARDING LICENSING TO PBS.
Last week's legal update raised an additional question regarding licensing to PBS stations from a PACA member.

QUESTION: The royalty rate schedule referred to was entitled "Terms and rates of royalty payments for the use of published pictorial, graphic and sculptural works." Does this apply to moving images as well? If not, is there a similar provision that does apply? We have been approached by an independent producer working on a program that he hopes to distribute via PBS, who is interested in licensing some of our footage, so I need to know what rules apply.

ANSWER: Section 118 of the Copyright Act which limits the exclusive rights of certain copyright owners in connection with non-commercial broadcasting only applies to owners of copyright in published non-dramatic musical works and published pictorial, graphic, and sculptural works. The definition of "Pictorial, graphic, and sculptural works" include two-dimensional and three-dimensional works of fine, graphic, and applied art, photographs, prints and art reproductions, maps, globes, charts, diagrams, models, and technical drawings, including architectural plans. Motion picture and audiovisual works are defined separately in the Copyright Act. Therefore the rates for royalty payments under CFR 253.8 do not apply to moving images. No compulsory rates apply to the use of motion pictures.

COPYRIGHT OFFICE NEWS
The Copyright Office web site now offers "fill-in" forms that you can download with Adobe Acrobat and fill in before printing. You still need to mail in the completed form to the Copyright Office with the fee and deposit requirement. One less reason to keep the old typewriter. On-line application filing is not available yet. For information, go to www.loc.gov/copyright.

17. DIGITAL MILLENIUM COPYRIGHT ACT
The Digital Millennium Copyright Act (DMCA) is proving to be a powerful tool to curb Internet copyright infringement. Internet service providers lobbied hard for a limitation of liability from copyright infringement actions, arguing that it was impossible to monitor the web. A compromise was struck, giving ISP's a safe harbor from certain liability if they followed certain procedures and guidelines. The result is Title II, Section 512 of the DMCA. By following specified "notice and take down procedures" ISP's can limit their liability for certain activity by removing any alleging infringing material. The DMCA is complicated and I have had several questions regarding its use to prevent the unauthorized use of photographs lately. I have broken down relevant portions of the Act into a series of questions.

Q. Who is a "service provider" under the law?

A. Anyone who

(1) provides online service;

(2) provides network access;

(3) operates a facility that provides network access; or

(4) transmits, routes or provides connections for digital online communications between or among specified users, of unmodified materials of the users choosing.

This definition is fairly broad and includes any site that offers a "chat" room.

Q. How is a Service Provider eligible for protection?

A. A provider must not have knowledge of the infringing activity. If provider has right and ability to control the infringing activity, it must not receive financial benefit directly attributable to the infringing activity. Upon receiving proper notification of claimed infringement, the provider must expeditiously take down or block access to the material. File with the Copyright Office a designation of an agent to receive notification of claimed infringement. The Copyright Office provides a suggested form and maintains a lists of designated agents on the Copyright Office website http://www.loc.gov/copyright/onlinesp/list/). Post a copy of the notice of designated agent on its website.

Q. What constitutes proper notification of infringement to a service provider?

A. Written communication to the designated agent. Includes a physical or electronic signature of a person authorized to act on behalf of the owner of the exclusive right that is allegedly infringed. Identify the copyrighted work that is claimed to be infringed, or a representative list if multiple copyrighted works on a single online site are covered by the notification. Identification of the material that is claimed to be infringing or the subject of the infringing activity that is to be removed or access is to be disabled. The information must be clear enough to permit the service provider to locate the material. (Information to permit the service provider to locate the complaining party (address, telephone number, e-mail address).

Statement by complaining party that it has a good faith belief that the use of the material is not authorized by the copyright owner, its agent, or the law.

Statement that the information provided in the notification is accurate, and under penalty of perjury, that the complaining party is authorized to act on behalf of the owner of the exclusive right that is allegedly infringed.

Q. What must the Service Provider do to limits its liability?

A. The Service Provider will not be liable for taking down the allegedly infringing material if it:

Takes reasonable steps to notify the subscriber that it has removed or disabled access to the material.

Upon receipt of counter notification, promptly provide the person who provided the notification with a copy of the counter notification and inform the person that it will replace the removed material or cease disabling the material in ten (10) days.

Replaces the removed material and ceases disabling access to the material not less than ten (10), no more than (14) business days following receipt of the of the counter notice unless its designated agent receives notice from the first person who sent a notice of infringement that such person has filed a court order to restrain the subscriber from engaging in infringing activity relating to the material on the service providers system.

Q. What must the counter notice contain?

A. A physical or electronic signature of the subscriber.

Identification of the material that has been moved, or access denied and the location of where the information appeared before it was removed or disabled.

A statement under the penalty of perjury that the subscriber has a good faith belief that the material was removed or disabled as a result of a mistake or a misidentification of the material to be removed.

The subscriber's name, address and telephone number and a statement that the subscriber consents to jurisdiction of the Federal District Court for the judicial district in which the address is located, or if the subscriber is outside the United States, for any judicial district in which the service provider may be found, and that the subscriber will accept service of process from the person or its agent who provided the initial notification.

Q. Can you obtain the identification of the infringer?

A. Yes, a copyright owner can request the clerk of any US district court to issue a subpoena to a service provider for an identification of an alleged infringer.

Q. What must a Service Provider do to become eligible?

A. Adopt and implement a policy of that provides for termination of subscribers that are repeat infringers.

Inform its subscribers of its policy.

Accommodate and not interfere with standard technical measures.

Q. Can you collect money damages against a service provider if they have fully complied with the requirements?

A. No, the service provider is protected from monetary relief for posting infringing material that includes damages, costs, attorneys fees and any other form of monetary payment.

Q. How can this help prevent the infringement of material from a stock library?

A. If a web site contains unlicensed photographs that you believe in good faith are yours, or are an infringing copy, you can notify the hosting service provider of the alleged infringement, identifying that you are the authorized agent of the copyright owner and identify the copyrighted work. If the