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Legal Updates 2000

1.
Astaire Celebrity Image Protection Act
2.
a. Use of Public Domain Film Clip Doesn't Violate Trademark
b. Signatures
3.
Domain Names News
4.
The Use of Princess Diana's Name and Likeness on Memorabilia Is Held Not to Be an Infringement of Her Estate's Memorial Fund
5.
a. Messenger vs. Gruner and Jahr
b. Wolff & Godin
6.
Background to $1500 Image Value
7.
The Digital Theft Deterrence and Copyright Damages Improvement Act
8.
Request for Support from the Graphic Artists' Guild
9.
When Is a Book Not Just a Book?
10.
The Case of "Deep Linking"
11.
Morris vs. Business Concepts Inc.
12.
Webshots.com
13.
Webshots.com Update
14.
Important Notice Regarding "Group Registration of Photographs" With the U.S. Copyright Office
15.
Well Explained Terms in Licensing Agreements Are Monumental
16.
Update on Catalog Registration
17.
Morris vs. Business Concepts Inc.
18.
a. Sports Artist Prevails in Suit by Tiger Woods
b. Tasini Update
19.
NBA Sues NY Times for Photo Sales
20.
Websites
21.
IP Archive (Intellectual Property Archive)
22.
Court Reverses Decision on Jack Leigh's Bird Girl Photograph
23.
a. New French Law
b. Another Decision Reversed
24.
The National Football League Players Association ("NFLPA") Sues Dot.com Company and Wins!
25.
PACA Has Joined in as a "Friend of the Court" in Support in Three Important Photography Cases
26.
Copyright Protection for SKYY Vodka "Product Shots"
27.
Right of Publicity in NY -- Yankees Fan Sued and Lost
28.
Tasini Is on Its Way to the Supreme Court
29.
The Color of Pills
30.
New York Court Refuses to Assert Jurisdiction Over German Publisher
31.
Copyright Protection for Photograph of Picture Frames

1. ASTAIRE CELEBRITY IMAGE PROTECTION ACT
California's statute regarding deceased celebrities rights of publicity has always had an exception to permit the use of images for what we consider "editorial purposes". This exception has come under recent attack by celebrities wishing to obtain greater control over the use of their images in magazines and other publications. Fortunately California's exceptions regarding the commercial exploitation of dead celebrities remain intact, notwithstanding efforts by Robyn Astaire, the widow of actor Fred Astaire.

Under California law, the name, voice, or likeness of dead celebrities may not be used to advertise or sell products without the permission of the heirs. However, there have always been exceptions for political, newsworthy and artistic works. Ms. Astaire contended that the exceptions should be applicable only for serious artistic and literary works. Opponents protested that removing the exceptions would grant heirs the right to block almost any use and placing the burden on an author to establish that their work was protected by the First Amendment. The opponents of the bill prevailed. In addition, sponsors of the bill initially sought to prohibit the use of digital technology to alter the names or images of deceased celebrities. Such an amendment would have prevented the use of historical characters with live actors in films like Forrest Gump. They had also proposed language that would have given heirs of a dead celebrity the right to sue newspapers, magazines and film studios for falsely depicting the celebrity. Both efforts were abandoned before the bill was finalized.

The final version of the bill states:

For purposes of this subdivision, a play, book, magazine, newspaper, musical composition, audiovisual work, radio or television program, single and original work of art, work of political or newsworthy value, or an advertisement or commercial announcement for any of these works shall not be considered a product, article or merchandise, good or service if it is fictional or non-fictional entertainment, or a dramatic, literary, or musical work.

At this time, the sale of photographs depicting deceased celebrities to magazines and other publications does not run afoul of California Law.

2.USE OF PUBLIC DOMAIN FILM CLIP DOESN'T VIOLATE TRADEMARK
The Ninth Circuit U.S. Court of Appeals, which hears appeals over federal district court cases in California, unanimously ruled that a 30 second film clip of the Three Stooges' "Disorder in the Court" played in the background of a scene in a 1996 movie The Long Kiss Goodnight does not violate trademark laws. New Line Cinema did not have to seek permission from Comedy III Productions, holders of the rights to use the clip.

"Disorder in the Court" was no longer protected by copyright and in the public domain. Without the armament of copyright law, Comedy III Productions filed a trademark claim, known as a Lanham Act claim, in order to protect their rights in the Three Stooges image. Comedy III Productions has a history of aggressively going after parties who use The Three Stooges' image. Their case against a sketch artist who sold T-shirts bearing the likeness of Larry, Curly and Moe is currently pending before the Supreme Court of the State of California. The court rejected the Lanham Act argument, finding that the short clip was not an "enforceable trademark". To succeed under a Lanham Act claim, the plaintiff needs to demonstrate likelihood of confusion over ownership of a trademark. The purpose of a trademark is to identify the source and origin of goods. The court made reference to the pending state court case and asserted that if The Three Stooges likeness was on T-shirts, the heirs might have an arguable claim. Also mentioned was the fact that just because other film producers chose to pay Comedy III Productions a fee that they did not have to, New Line Cinema was not legally obligated to follow suit.

This case demonstrates the difficulty in relying on trademark law rather than copyright law when trying to control the use of film or still images that have fallen into the public domain. It is not surprising that rights holders will try to use trademark law when copyright law is unavailable to continue to control rights. Disney has been trademarking illustrations of Mickey Mouse, knowing that early films will soon enter the public domain. This decision supports the long-standing practice of film and still archive houses of renting images of public domain publicity stills and movie clips that are not protected by copyright. Of course, some uses may still fall under a Lanham Act claim, such as the T-shirt action, and each situation should be analyzed as to whether the image or clip is serving as an enforceable trademark. I will keep you updated on the status of the pending state court claim involving the use of the illustration on T-shirts.

SIGNATURES
An international affiliate had a question as to whether signatures were protected by copyright or trademark in this country. Copyright does not protect signatures since the Copyright Act expressly excludes the protection of short words and phrases. Trademark law in the United States is complicated by the fact that trademark owners have rights based on use, while many countries require that any mark must be filed in order to have protection. Marks are filed in the United States as well, but a search of the filed marks will not reveal those who claim rights simply by use. However, as the Three Stooges' case demonstrates, the mark or signature must actually be an enforceable trademark. It must be used to identify the source of goods and services. And the alleged infringing use must actually cause confusion over ownership of the mark. The answer to the question will depend on the use of the signature.

3. DOMAIN NAMES NEWS
The conflict between trademark law and domain name reservation continues to be a major issue, as many traditional businesses have adopted web sites and entered in to the world of e-commerce. Trademark law has always permitted unrelated businesses to share the same name. You could be Ford, the car manufacturer, or Ford, the modelling agency. But there is only one web address, or URL that can reside at www.ford.com. Guess who has it!

When Network Solutions was the company that reserved domain names, they reluctantly handled disputes, if one company had a trademark that was identical to the domain name in dispute. Essentially, they had hands off policy. If you had a dispute, they would put the name on hold for a period of time and you needed to bring a court action to resolve the dispute. Since Network Solution has turned the reins over to ICANN, it is no longer placing names on hold. Now, ICANN is the organization responsible for domain name reservation. In the last days of 1999, ICANN officially adopted a new dispute resolution policy. Under the policy, agreement, court action, or arbitration must resolve most types of trademark-based domain-name disputes before a registrar will cancel, suspend, or transfer a domain name. Disputes alleged to arise from abusive registrations of domain names (for example, cybersquatting) may be addressed by expedited administrative proceedings that the holder of trademark rights initiates by filing a complaint with an approved dispute-resolution service provider. Persons who believe that a domain name has been registered in bad faith now can force the domain name registrant into a mandatory administrative dispute resolution process with one of three approved dispute resolution "providers." Seven proceedings have been initiated so far. Information regarding the Uniform Policy and Rules, as well as Providers, current proceedings, and background are available at ICANN's Dispute Resolution website: http://www.icann.org/udrp/udrp.htm

The administrative action is fairly inexpensive (as compared to a court action) and quick. The relief is the cancellation of the bad faith registration. Congress was active in legislating against cybersquatters as well. Again in the last days of 1999, Congress enacted the Anticybersquatting Consumer Protection Act, which was passed as part of the Intellectual Property and Communications Omnibus Reform Act of 1999. The legislation, which went into effect in December, provides for both civil and criminal remedies against "cyberpiracy" in the domain name/trademark context, and amends Titles 15 and 28 of the US Code. (The Trademark Laws) While the civil remedies are retroactive, the criminal penalties are not.

Abusive registrations are those that register a name in bad faith with an intent to profit. It applies to marks that are distinctive, famous or protected by statute. Trademark owners can seek an injunction, actual damages or statutory damages ranging from $1000 to $100,000, costs and attorney's fees. The action, being part of the federal Lanham Act, requires the complaint or proceeding to be filed in federal court. Trademark owners have wasted no time in using this new tool in the war against cybersquatting. A copy of the Act can be found at: http://thomas.loc.gov. S 1948. Now those that are the victim of cybersquatters, have a few more armaments against the stagecoach robbers of the digital era.

4. THE USE OF PRINCESS DIANA'S NAME AND LIKENESS ON MEMORABILIA IS HELD NOT TO BE AN INFRINGMENT OF HER ESTATE'S MEMORIAL FUND
In a recent unpublished opinion, the Court of Appeals for the 9th Circuit ruled in favor of the Franklin Mint Co., in an action brought by The Diana Princess of Wales Memorial Fund, for alleged violations of publicity, false association, false advertisement, and trademark rights.

Franklin Mint was selling memorabilia which bore Diana's name and likeness, and advertised that the profits from the sale of these products would be donated to a charity that Diana supported. The Memorial Fund claimed that prospective purchasers of these products were likely to believe the profits mentioned were going to be donated to their organization, when in fact there was no association between the two parties. The Memorial Fund additionally requested that the court force Franklin Mint to cease selling the merchandise because of this likelihood of confusion. The Court of Appeals upheld the lower court's dismissal of all claims and denied the Memorial Fund's injunction request.

The Court refused to even address the Memorial Fund's right of publicity claim, holding this right is a personal property right and therefore must be governed by the law of the State/Country where the right actually exists. Applied here, any postmortem right of publicity that exists would be governed by England, Diana's domicile at the time of her death. Furthermore, because England does not recognize the right of publicity, no such right could pass to her estate upon her death. For this reason, the right of publicity claim was dismissed. The court also dismissed the Memorial Fund's false association and false advertisement claims, holding that they failed to show that Franklin Mint's conduct created a likelihood of confusion as to whether the Fund was endorsing Franklin Mint's product. The court found that just because Franklin Mint was using the name and image of Princess Diana, the meaning of the mark was different that the Fund's mark because of the context in which it was marketed. The Fund used a purple crest to signify that a product is authorized by their organization, and no such crest was on Franklin Mint's product. The court also felt that the high cost of Franklin's product would reduce any likelihood of confusion noting that, "most purchasers exercise greater care when buying expensive items."

Finally, the court dismissed the Memorial Fund's trademark claim. The court ruled that the name "Diana, Princess of Wales" has not acquired a secondary meaning such that it has become synonymous in the public mind with charitable activities. They stated that, "while Princess Diana received a great deal of media attention for her charitable acts, she received equal if not greater attention for her status as a member of England's royal family." For this reason, that was no reason to believe that the Fund was likely to succeed with any trademark dilution claim in conjunction with their organization.

This case is yet another example of how aggressively owners may attempt to protect what they believe to be their rights. When no copyright remedy is available, claimants will often try to fit their attack into types of actions, such as right of privacy claims and trademark infringement suits. It is important to note that, regardless of the law asserted, each case must be determined on a case by case basis and there is no across the board rule to turn to. Even if you win, these cases can be extremely time consuming and expensive.

5. MESSENGER VS. GRUNER AND JAHR
Recent Ruling in New York on Use of Photographs in Newsworthy Articles. This Friday, the New York Law Journal published an important decision, Messenger v Gruner + Jahr Printing and Publishing by the New York State Court of Appeals (New York's highest court- the Supreme Court is the lowest court) interpreting New York's Right of Privacy Law, Section 50 and 51 of the New York Civil Rights Law.

The plaintiff, a teenage girl and minor, consented to be photographed for the magazine Young and Modern (YM) published by Gruner + Jahr. No legal consent was obtained from her parent or legal guardian. The photographs were published as an illustration for a column entitled "Love Crisis" which began with a letter to the editor-in-chief from a 14 year old girl identified as "Mortified". A pull out quote in bold type above the column states "I got trashed and had sex with three guys". The letter details a teenager who got drunk at a party and had sex with her 18-year-old boyfriend and two of his friends. The editor-in-chief, wisely responds and tells Mortified that she should avoid that situation in the future and should see a doctor for a pregnancy test and to be tested for sexually transmitted diseases. Three full color photographs of the plaintiff illustrate the article.

The plaintiff brought an action in the United States District Court for the Southern District of New York, alleging that the magazine violated Section 50 and 51 of New York Civil Rights law that prohibits the use of ones picture for purposes of advertisement or trade without written consent. The magazine moved to have the case summarily dismissed, arguing that it could not be liable as a matter of law because the photographs were used to illustrate a newsworthy column, and that the photographs had a real relationship to the article and it was not an advertisement in disguise. The teenager argued that the newsworthy exception should not apply because the column and the photographs gave the false impression that the teenager in the photograph was the author of the letter. The district court agreed and the jury awarded $100,000.

Upon appeal the Second Circuit certified the New Court of Appeals to answer a question involving New York State Civil Rights Law "May a plaintiff recover under Section 50-51 where the defendant used the plaintiff's likeness in a substantially fictionalized way without the plaintiff's consent, even if the use is in conjunction with a newsworthy column?" Fortunately for the stock photography industry, where the editorial use of images has relied on the newsworthy exception under New York Law, the answer was in the negative. It should be noted that laws involving the rights of privacy and publicity vary from state to state. There are no federal statutes for uniform guidance. New York does not recognize any common-law right of privacy. If you cannot make a claim under Section 50/51, you are out of luck.

The New York Statute has always been recognized as a limited right of privacy and has been very narrowly construed. In contrast, the newsworthy exception is broadly construed and includes actual events, political happenings, social trends and any matter of public interest. The courts do not hold the public to a high standard when considering what is of interest to the public! If the picture is used to illustrate an article of public interest, there are only two conditions in which the publisher can be liable. One is if the picture bears no relationship to the article. The second is if the article is really an advertisement in disguise. For example, a prior New York case permitted the publication of photograph of a large family to illustrate and article about the effects of caffeine and in vitro fertilization even though none of the children were conceived through in vitro fertilization.

The plaintiff in the Messenger case argued that an action for violation of the right of privacy statute should still be permitted if the photograph and the article creates a substantially fictionalized impression. The court rejected this argument and limited the analysis of whether the newsworthy exception applied to the two factors described above, specifically: 1) whether the photograph bears a real relationship to the a newsworthy article and 2) whether the article is an advertisement in disguise.

This case was followed closely by New York's large publishing community. Claims for violation of rights of privacy is an area of great vulnerability for stock agencies as well, even if they are careful and have "sensitive subject policies". The client may not always give enough information about the contents of the article that the photograph is intended to illustrate. The photograph may be appropriate but a caption such as "I got trashed and had sex with three guys" could make the use offensive to the person depicted.

PACA's recommended language in its form of invoice provides that the user must hold the agency harmless for any claim arising out of the use of a photograph and that the client may not use a photograph in any manner that is defamatory. But everyone knows if a model brings a lawsuit in this area, the lawyers try to bring everyone one into the case: the publisher, stock agency and photographer. However, this decision greatly limits the ability of a model or person depicted a photograph to bring a successful claim for the use of a photograph that accompanies any article that is of public interest, no matter how offensive the use. Of course, this decision does not apply to the use of a photograph for purposes of advertising or trade. The importance of valid model releases when licensing photographs for commercial use is not changed by this decision.

WOLFF AND GODIN
Nancy E. Wolff is pleased to announce that Helene Godin has joined the firm as a partner. The firm's name has been changed to Wolff & Godin, LLP. Helene Godin is an intellectual property and entertainment lawyer with a subspecialty in media law.

6. BACKGROUND TO $1500 IMAGE VALUE
QUESTION: We would appreciate any information you can provide concerning the value of $1,500 being used per image.

Background:
The business of licensing images, or stock photography, operates under the United States Copyright Law wherein the photographer or his or her heirs, controls all rights to and usage of the image for the duration of the copyright (presently the life of the creator plus 70 years). In licensing the right to use photographs, the fee paid is determined not only by the photograph itself but more importantly by the intended use. Thus a photo may be used one month as a magazine illustration for a fee of a few hundred dollars and several months later the same photograph may be licensed for a national advertisement for many thousands of dollars. This repeated licensing continues for the life of the photographer and eventually as part of the photographer's estate.

The photographic industry, back in the late 70's, under the auspices of the American Society of Magazine Photographers (ASMP) undertook to establish a fair and equitable value for stock photographs. This was done through surveying photographers, agents, advertising agencies and publishers as to the number of times images sold and the fees paid for the various types of uses. The survey revealed that on average, a professionally taken and professionally edited image would sell 3 to 8 times over the life of the copyright for fees ranging from $150 to $10,000. It was thus determined that $1500 per image was a reasonable and conservative value to place on professionally taken and professionally edited photos. This figure first appeared in print in the Guide to Business Practice published in its first edition by ASMP in 1973. It has continued to appear in 3 subsequent editions plus two editions of the ASMP Stock Photography Handbook.

In the intervening years, this figure has been accepted by the professional trade organizations such as the American Society of Picture Professionals and as well as the Picture Agency Council of America. PACA's legal forms recommend that the agency state a value for each photograph in its stipulated damage clause. It is imperative that a sum certain is used to value each original image and not a minimum figure, which has been disallowed by the courts as an invalid liquidated damage clause. Many agencies value each original transparency at $1500, while other choose an increased figure, given the number of years since 1973 when the figure was first used. The courts have for some years used this same $1500 figure as a benchmark in assessing damages while determining that some images may be worth more and some worth less. Both the courts and the industry consider a number of criteria in determining valuation.

1. technical excellence

2. the selective eye of the photographer.

3. The prestige and earning level of the photographer.

4. The uniqueness of the subject matter.

5. Established sales or use prices.

6. Group value of individual images.

7. Frequency of acceptance by users.

CASES:
These factors were first enumerated in a New York case entitled Rattner v. Geo Magazine, Supreme Court, New York County, Index No. 15762/84 (Shorter, J.) N.Y.L.J. page 39, col. 2, 3/16/87). The figure of $1500 was used by the New York Court in Hoffman v. Portogallo, Supreme Court, New York County, Index No. 19102/85 (Gabel, J.) 6/26/87. The Appellate Division in New York upheld the value of $1500 for a photographers best work over a period of years in Girard Studio Group v. Young & Rubicam, 147 A.D. 2d 357 (1st Dept. 1989) and in Lowit v. Consolidated Edison Company of New York 24 A.D. 2d 2; 650 N.Y.S. 2d 152. (1st. Dept 1996).

This figure was not intended to cover every image taken by a professional photographer, only those that met rigid standards of editing for professional quality and marketability.

Recent cases have emphasized the "uniqueness" of the photographs, looking at subject matter and replacement costs, and earnings potential. In Gasperini v. Center of Humanities, Inc. 972 F. Supp. 765 (SDNY 1997), vacated on other grounds, 149 F 3rd 137, 1998 U.S. App. LEXIS 16177, 1998 WL 374953 (2nd Cir. 1998), the court determined that a number of photographs lost by the defendant were unique and valued at $1500, while other more generic images were given a lesser value.

In addition, when agencies have brought arbitration demands against clients to recover damages based on the terms contained in their delivery contracts for the loss or original transparencies, the stipulated damage clause in the agencies' invoice and delivery contract are usually upheld by the arbitrator where the paperwork is proper. The importance of correct documentation cannot be stressed enough.

At some time, when all delivery is digital, these concerns may no longer be relevant. However, there are still millions of valuable photographs in the files of the various agencies. Unfortunately, some do get lost. Some insurance companies may request an expert report to substantiate the loss. PACA through Jane Kinne and Nancy Wolff had begun an expert witness program to train various members in preparing such reports. You may wish to contact the PACA's legal committee to get a list of the members who were involved in the program. Jane Kinne (203-966-4900) is currently the head of this committee.

(Nancy Wolff would like to thank Jane Kinne for providing her with certain information on the background of the $1500 valuation.)

7. THE DIGITAL THEFT DETERRENCE AND COPYRIGHT DAMAGES IMPROVEMENT ACT
A new bill, The Digital Theft Deterrence and Copyright Damages Improvement Act of 1999, has been passed by both the Senate and House and signed by the President. This amendment to the 1976 Copyright Act imposes stiffer penalties for both wilful and non- wilful copyright infringement provided that the work infringed upon is registered promptly. In order to fall within the new Act's protection, the copyright owner must have registered the work before the infringement occurred or within three months of its first publication. The new Bill increases minimum statutory penalties for non-will infringement from $500 to $750 per infringement and increases the total allowed recovery from $20,000 to $30,000. In the case of wilful infringement, the total penalties allowed for each infringement were also increased, rising from $100,000 to $250,000. The new Bill applies to any infringement that is brought on or after December 9, 1999, regardless of the date on which the alleged activity that is the basis of the action occurred.

8. REQUEST FOR SUPPORT FROM THE GRAPHIC ARTISTS' GUILD
The Graphic Artists Guild has requested that PACA help them support an Amicus curiae brief in support of the photographer Leslie A. Kelly in his appeal of the decision Kelly v. Arriba Vista Soft. Corp., the first "visual web-crawler" copyright infringement case that was decided in favor of the Internet search engine and against the photographer. As noted in a previous update, a federal court in the Southern District of California found that the creation of an index of over two million "thumbnail" size images from various web sites fell within the fair use defense under the Copyright Act. The court principally based its decision on the importance of search engines in the functioning of the web, and found that the copying of entire images to be transformative fair use. By reducing the images and organizing them for others access to them, the search engine had "transformed" the use from the initial illustrative purpose. The court described the capturing and reproduction of the images as functional, rather than artistic, thus the use by the web crawler was considered to be very different from the illustrative use the photographs were used for on the photographer's website.

Even assuming visual search engines are essential to the functional of the web, the court's fair use reasoning was weak and may have impact to the visual licensing community beyond this case. The lenient fair use approach to web usage has never been applied before this case. First, analyzing the functional verses artistic purpose of a visual work has been rejected by other courts in the past and can be a dangerous slippery slope. Where does one draw the line between function and aesthetics in the use of illustration? In addition, in analyzing the likelihood of harm to the market for the creator's work, the court found no harm or adverse affect, even though the engine permitted access to images through "deep linking" which avoids the home page and potential advertiser supported sites.

The Graphic Artists Guild has hired a pre-eminent copyright firm in New York to prepare an Amicus curiae brief supporting an appeal of the decision. The American Society of Media Photographers has already retained another attorney to file a separate Amicus curiae brief. The Graphic Artist Guild is looking for support from the image licensing community, since it believes that the lenient approach to fair use on the web could result in furthering the already "wild west" view that copyright does not exist for uses on the Internet.

While PACA does not have any legal fund earmarked for litigation, the reasoning of this case could impact the ability to license on the web and police infringements on the web. We would like to show our support to the Graphic Artists Guild in this effort and have set a goal of raising $2000. Any member interested in donating a sum to the effort is requested to send a check to Lonnie Schroeder payable to PACA Legal Fund.

9. WHEN IS A BOOK NOT JUST A BOOK?
Question: When is a Book Not Just a Book?

Answer: When it is merchandising.

Most agencies are comfortable with the distinction between editorial and commercial use when licensing images. One area that can wear two hats is a book. In general, photographs that illustrate truthful books on a subject of public interest are considered "editorial" and non-commercial. But what if the subject of the book is a protected property, such as a fictitious television show, or a commercial property, such as Beanie babies?

Recently, publishers that have distributed books based on popular television shows, such as a Seinfeld quiz book, or lessons on how to talk to a "Trekky" have been subject to copyright infringement lawsuits for treading on territory that has been considered the exclusive domain of the copyright owner, the right to license merchandise. Companion books to popular television shows have become a property that the owner can license to a publisher. They do not like it when a publisher distributes unauthorized books and cuts them out of their licensing fee.

A recent case has extended this concept to books on popular fads. The district court for the Northern District of Illinois rejected a publisher's claim that the first amendment precluded the issuance of a preliminary injunction against a publisher's alleged copyright and trademark infringement. The books in question were "For the Love of Beanie Babies" and "Beanie Babies Collector Guides." The books featured photographs of the plush toys, including the heart hangtag, a historical essay on the subject, estimated values and the author's ratings. Ty, Inc. the creator of the plush animal toys is known for aggressively protecting its property and has sued many companies for selling "knock-off" toys.

The books contained the disclaimer "This publication is not authorized or licensed by Ty Inc. Publications International, Ltd. is not affiliated with Ty Inc.". Ty, however, had licensed another publisher to distribute the "Beanie Babies Official Club" and that licensee complained about the competition. The court rejected the argument that copyright injunctions are an unconstitutional prior restraint on speech under the First Amendment. The court stated that the fair use doctrine is adequate to protect a person's constitutional right to comment and criticize the Beanie Babies. Fair use, however was not a defense in this case relying on a prior decision in which a Seinfeld trivia book was not fair use. Essentially, it was a commercial work that affected the licensing of the copyright owner's property. The books were also found to violate Ty's trademark, finding a likelihood of confusion between the official and unauthorized books, despite the disclaimer. So, when a client tells you that they need images to illustrate a book, you should find out more about the type of book, particularly the subject matter.

AND A REMINDER...from last week's article:
The Graphic Artists Guild has hired a pre-eminent copyright firm in New York to prepare an Amicus curiae brief supporting an appeal of the decision. The American Society of Media Photographers has already retained another attorney to file a separate Amicus curiae brief. The Graphic Artist Guild is looking for support from the image licensing community, since it believes that the lenient approach to fair use on the web could result in furthering the already "wild west" view that copyright does not exist for uses on the Internet. While PACA does not have any legal fund earmarked for litigation, the reasoning of this case could impact the ability to license on the web and police infringements on the web. We would like to show our support to the Graphic Artists Guild in this effort and have set a goal of raising $2000. Any member interested in donating a sum to the effort is requested to send a check to Lonnie Schroeder payable to PACA Legal Fund.

10. THE CASE OF "DEEP LINKING"
In a ruling that confirms that courts are hesitant to interrupt the free openness of the Internet community, a federal judge in Los Angeles has ruled that online companies can legally offer links to rival websites. Many new Internet firms will link to competitors' websites to attract visitors in a practice that is know as "deep linking" because it bypasses the front page. The front page typically contains more of the banner advertising for the website. Most web companies rely on advertising revenues as their main source of income.

The ruling was in favor of startup Tickets.com, which was the defendant in a lawsuit filed by Ticketmaster Online-CitySearch. Ticketmasters sued a rival startup and alleged that so-called hyperlinking should be banned. Both companies offer tickets to numerous events and allow consumers to purchase the tickets online. Ticket Masters was hoping that the lawsuit would end the intrusion to their website by unauthorized linking. However, U.S. District Judge Harry Hupp dismissed four counts of Ticketmaster's claim, writing that "deep linking by itself...does not necessarily involve unfair competition."

Hupp said hyperlinking is not illegal as long as consumers understand whose site they are on and that one company has not simply duplicated another's page. Ticketmaster plans to file an amended complaint attempting to reinstate the dismissed claims.

The courts have never squarely addressed the legality of deep linking. Several cases have been filed in the past that involved unauthorized linking to some degree, but most settled, leaving little guidance. It is the view of many that linking is no more than a footnote in an article, referencing another company or work. The proponents believe that linking is an integral part of the information highway and should not be discouraged. Companies that invest large amounts of capital in expensive web sites would prefer some control over who and how the linking occurs. So there are yet few known rules on this information highway.

11. MORRIS VS. BUSINESS CONCEPTS INC.
A federal district judge in New York dismissed a copyright action brought by an individual author of a monthly magazine column on the grounds that the author did not have a valid registration. The defendant had copied and republished 24 previously published articles without her authorization or credit. The author had granted Allure magazine first right to publish the articles for 90 days in the United States, and the nonexclusive right to republish the articles through the life of the copyright. Condé Nast, the owner of the publication, applied for and received Certificates of Registration from the Copyright Office on each publication.

The defendants, Business Concepts Inc. publish a newsletter that republished her articles, without obtaining permission. There was no issue that the author was the owner of the copyright to the articles, or that the defendants had infringed her copyright. The issue was whether the author had the keys to the Federal Court house, a valid copyright registration. The court determined that the magazine's copyright registrations in the compilation (the magazine), did not afford protection in the author's individual articles. The author, like many authors and editorial photographers, do not individually register each work, but rely on the fact that the magazine's registration is for the benefit of the individual contributors. This understanding has a long history and was part case law that developed under the 1909 Copyright. Until this case, there was no decision to the contrary. In fact, other federal district courts have specifically held otherwise.

In the case of Curtis v. General Dynamics involving the photograph of a wheelchair that was first published in Communications Art, a district court in Washington State, found that the magazine's assignment of copyright to the photographer, in the collective copyright in the magazine satisfied the requirements of the Copyright Act. While the photographer also filed for his own registration after the infringement, the magazine's prior registration was sufficient to afford him the benefit of statutory damages. It does not make sense that in the Curtis Case, the author could rely on the prior registration of the publication for statutory damages, and that in the Morris case, the same collective registration could not grant the author the right to commence an action for copyright infringement. The formalities of the US Copyright Act, including the need for registration, has long been criticized. The financial burdens of registering a large body of work often make registration prohibitive.

The consequences of this decision are great if it is followed by other courts. Imagine the number of separately owned works in a large textbook or encyclopedia. Once the work was published, each contributor, which could be hundreds or more, would be obligated to send in an application, $30 dollars, and two copies of the textbook to the Copyright Office. The capacity of their already full warehouses will have to be increased many times. Further, it seems contrary to the intent of the Revised Copyright Act of 1976, that authors have less rights than they did under the 1909 Act, where it was clear that the individual contributors were beneficial owners of the publisher's copyright. I understand an appeal has been filed. This case may be an appropriate one for PACA to lend support in an Amicus brief since it affects the ability to enforce copyright protection in all editorial works. The need to separately register each image published editorially is unreasonable and may be impossible, since tear sheets are often not provided once a work has been published. I will keep you posted on any developments.

12. WEBSHOTS.COM
It has come to my attention, via many PACA members, that the website "Webshots.com" is possibly infringing upon the rights of many members and/or their clients. For those members who are unfamiliar with the site, Webshots.com is affiliated with Excite@home. Webshots.com provides all users a free membership, where they are then given access to a database of hundreds of thousands of photographs, and are provided with free software that allows them to upload their own photos to be included in this database. The photographs are then available for downloading as screen savers, wallpaper, and e-cards. In addition to providing its members individual access to these images, Webshots.com also sells the images in its database. Upon request, the photos are "printed" by Webshots.com in their own photo lab (framing is optional) for a fee and shipping charge. All of this activity is done without any regard to the photos' origin or inquiry into the photos' copyright.

Because of the vast amount of photos in Webshots.com's database (over 400,000 and growing daily), and because of the site's lack of inquiry into the copyrights of these photos, many PACA members are being affected by this commercial activity.

I have been requested by the President of PACA, to contact Excite@home's counsel, on behalf of all PACA members, and try to put an end to this activity as soon as possible. If any members have further information that would be helpful please contact me at 212-787-1640.

13. WEBSHOTS.COM UPDATE
This letter was sent to Excite.com on our behalf by Ms. Wolff:

John Sullivan, Esq.
Excite@home
450 Broadway Street
Redwood City, CA 94063
Re: Webshots.com

Dear Mr. Sullivan:

I am the counsel for the trade association, Picture Agency Council of America, whose members include most of the stock photo libraries in North America with many international affiliates. I was asked to contact you on behalf of PACA in order to resolve an issue that affects many of the members, in the hopes that we can more efficiently as an organization address the problem and arrive at a workable solution.

It has come to many members attention, that a website affiliated with your company, "Webshots.com" contains thousands of photographs that users may download as screensavers, wallpaper, e-cards, etc. With the aid of free software, Webshots.com members can utilize images that are already on your site, or upload images that are in their own possession for others to users. It has also come to many users attention, that many of the photographs are copyrighted and license have not been obtained for Webshots.com for their use on the site.

As you know, most stock agencies operate under the same industry practices and norms. Photographs are licensed for a particular usage. All other rights are reserved to the owner. If additional usage or rights are necessary, further permission must be sought and granted. Neither Excite@home, Webshots.com, nor the members of your "community" have requested permission for the duplication or distribution. While we understand that it is usually not your company, but rather a member, that is providing the image, Webshots.com is providing the software ("tools") for which this activity can be accomplished. These tools are critical to the infringements that are occurring and your awareness of this fact is even evidenced by the reply-email you send to new members upon registration, which states, "Our goal is to provide you with all the services you need to enjoy and share photo online." At a minimum, this activity is contributory infringement.

Additionally, Webshots.com offers to print any image in their database from their own photo lab, frame it, and then sell it to any members. This unauthorized commercial distribution of copyrighted photographs, is an infringement under the 1976 Copyright Act, plain and simple. Webshots.com is denying the lawful copyright hold their exclusive rights of reproduction and distribution. I understand that Webshots.com has asserted protection for these activities based on the Digital Millennium Copyright Act. As a specialist in the area of copyright law, with a focus in the photography industry, I can confidently assure you that this "protection" does not exist. I am extremely familiar with the DMCA and, 1) Webshots.com is not an "ISP" under the definition provided in the Act, 2) Even if Webshots.com did qualify as an "ISP" it is still guilty of contributory infringement if it does not remove infringements upon notification, and 3) Webshots.com's own commercial activity of selling photographs it does not own the copyright to is completely outside the scope of the DMCA's protection provisions.

Webshots.com's activity is not unlike that which is currently being litigated in Northern District of California between the members of the RIAA and Napster, Inc. As I am sure you are aware, Napster.com also provides it users with the software to download and upload copyrighted music onto its database. While this case is still being reviewed, the court has ruled that Napster is not merely a conduit for it member's activities and has thrown out the company's defense that it was entitled to "safe harbor" protection under the DMCA.

I am also aware that the Webshots.com site contains a link providing information on what steps to take if an infringement is found on the database. However, as I am sure you will agree, pinpointing every infringement that exists on your vast database is virtually impossible. We are already aware of hundreds to thousands of infringements that currently exist, and this number is growing as we speak. It would take a full-time employer at a stock photo agency over a month to scan all the images in your database, and by the time they were finished there would be hundreds of new images added by your community that would have to be searched. This is an extremely unreasonable burden to place on companies and individuals, who are simply interested in protecting what is legally theirs - the exclusive copyright in their image.

We thought that we would give you the courtesy of bringing this problem to your attention quickly so you could look into it and get back to me. I am sure that Excite.com would not purposely wish to place itself in a position in which it has infringed the rights of so many copyright holders. Our intent is to quickly stop this unauthorized activity and come to an amicable solution.

If you should need any further information, please do not hesitate to contact me. I look forward to talking with you shortly.

Sincerely, Nancy E. Wolff, Esq.

Editor's Note: We will keep you posted on this situation.

14. IMPORTANT NOTICE REGARDING "GROUP REGISTRATION OF PHOTOGRAPHS" WITH THE US COPYRIGHT OFFICE

- TIME IS OF THE ESSENCE -


The United States Copyright Office is seeking public comment the following proposals regarding 'group registration' of photographs. Please note that all comments are due by June 19, 2000. After reviewing the comments, the Copyright Office will finalize its proposal and adopt new regulations on this matter. The following is a summary of the issues that the Office is requesting comment on. Please keep in mind that these proposals are only to change to registration of published photographs (regulations for unpublished images remains the same).

1. Under the proposed regulations, a claimant must identify the date of publication of each image published within the same calendar year and submitted for registration. As deposited copies, the Office will accept in digital form on CD-ROM or DVD-ROM; single images; contact sheets; slides with single images; slides containing up to 36 images; or multiple images on video tape. The Office will also accept copies of the photographs in the formats in which they were originally published (e.g. clipping from magazines or newspapers). The final regulation will specify how dates must be provided for each photograph in the group in such a way that for each photograph, one can ascertain its date of publication. Recommendations about the best methods for providing this information are invited. In the proposed regulations, applications will have the option of identifying each photograph and its date of publications separately on a continuation sheet or of indicating the date of publication on each photograph itself. For example, if separate photographic prints were deposited, the date of publication of each photograph could be written on the back of the print. However, for other formats (i.e. CD-ROM) other ways of indicating the date of publication for each image will be necessary.

a. Comments are invited on how the date of publication of each photograph can be indicated on the deposit itself for deposits made in such formats, and how each date can be connected to the pertinent photograph.

b. Comments are also invited on how the date of publication can be indicated on a continuation sheet, and how each date of publication entry on the continuation sheet can be related to a particular photograph or photographs. For example, if the continuation sheet is used, should each photograph be numbered consecutively; and for each photograph, should that number be written or other wise indicated on the corresponding copy of the photographs that is deposited?

c. Comments are also invited on whether the Office's general continuation sheet, Form CON, should be used for this purpose or whether the Office should provide an optional specialized continuation sheet, similar to Form GR/CP (the adjunct application form for group registration of contributions to periodicals), which could provide specific information (e.g., title or other description, date of publication) about each photograph included in the group.

2. Comments are invited on whether claimants should be required to number the photographs in a group consecutively (e.g. from 1 to 500), and to indicate the number of each photograph on or affixed to the individual image of the photograph that is deposited. Would such a numbering requirement assist in identifying dates of publication of each photograph when a continuation sheet is used, as suggested in the question above? Would such a requirement assist in creating a clearer public record? How burdensome would such a requirement be?

3.Should the Office accept deposits in formats other than those mentioned in item 1? If so, what other formats should be accepted? Each format must be capable of providing a complete image of each photograph in the group.

4. For photographs submitted on CD-ROMs or in other electronic formats, what file formats (e.g. JPEG, GIF, etc.) should be accepted, and why?

5. As an alternative to requiring a claimant to provide the date of publication of each photograph in the group, should the Office consider offering the alternative of providing a range of dates over a three-month period (e.g. January 1- March 31, 2001)? What would be the advantages and disadvantages - to claimants and to the public record - of such an approach?

The previous information was taken directly from the Proposed Rules section of the United States Copyright Office homepage. For additional or more detailed discussion of the issue, you may find more such information at www.loc.gov/copyright or www.access.gpo.gov/su_docs/aces/aces140.html.

15. WELL EXPLAINED TERMS IN LICENSING AGREEMENTS ARE MONUMENTAL
In a recent ruling, a federal court issued a decision reinforcing the importance of inserting specific terms and conditions in license agreements. This Pennsylvania case, Perry v. Sonic Graphic Systems Inc., involved a professional photographer who issued a license agreement to the defendant's company for use of his photographs in conjunction with an advertising brochure to be distributed within a specific local area. The agreement contained very specific terms as to the type, area, and time frame of use of the images. The agreement also contained a clause stating that "no alterations may be made in these provisions without the express written consent of the photographer."

Approximately one month after the agreement was signed, the plaintiff photographer discovered that the terms of the agreement had been violated and the images were being used in a much broader area and type of use than was agreed upon. Immediately upon making this discovery, the photographer initiated discussions with the defendant about the unauthorized activity. The defendant's reply to the photographer's concerns was that he did not think that clauses in the agreement were serious and he based this assumption on previous 'more casual' transactions that the parties had entered into.

The photographer brought suit in federal court against the defendant for copyright infringement and breach of contract. In an effort to prove the validity of his assumptions, the defendant requested that the court look further than the actual words of the contract, towards evidence explaining the past transactions between the two parties. The defendant hoped that if the court did look to the extrinsic evidence, it would see that the contract wasn't "serious". The court refused the defendant's request, stating that evidence as to disputed terms in a contract is only admissible when the contract is ambiguous. The court held that the contract here was not ambiguous, but was instead very clear as to its terms and conditions. Based the defendant's infringing behavior and the clear and concise wording in the licensing agreement, the court issued a ruling in favor of the photographer.

Because there are countless numbers of licensing agreements that change hands in the stock photo industry, it is very important that the terms of the contract always be clearly and completely worded in the actual agreement. While separate written instruments and oral conversations may sometimes be allowed into evidence, as this case shows that is not always the case. The possible exclusion of evidence can harm stock photo agencies as easily as it can help them in these types of disputes.

16. UPDATE ON CATALOG REGISTRATION
Background:
In general, a freelance photographer obtains copyright protection in a photograph at the moment the photograph is created. However, the United States Copyright Act rewards registration of works and limits the damages any creator can receive in the event of an infringement, if the work was not registered before an infringement occurs or within three months of publication. Unless a photographer has obtained a prior registration of a photograph, the court will only award actual damages in the event of an infringement. No statutory damages, or increased damages for wilful infringement can be awarded. Statutory damages are the amount of damages a court can award in its discretion against an infringer, without the owner of a work having to prove that he or she was damaged. Statutory damages can be awarded up to $30,000 per infringement and increased up to $150,000, in the event of wilful infringement. In addition, unless the work was registered prior to infringement, no award of attorneys' fees can be made. The reality is that in most situations in which a photograph has been infringed, the amount of damages that can be proven, will not justify the cost of an expensive federal copyright litigation.

The registration of photographs is burdensome and expensive. At present, the fee for each copyright registration is $30. While unpublished photographs can be filed in "collections" of work, published photographs must be individually registered (or if published in the same work, those images may be registered together). The deposit requirement is also burdensome, a copy of each work filed must accompany the registration application. The Copyright Office is aware that the Copyright Act places a burden on photographers, who create large bodies of work annually, that is not shared by many other creators, such as a writer who might only have a few works to register each year. It is also obvious that published works are the ones that are scanned, copied and now downloaded. While it would be ideal if every photographer submitted to stock agencies, only registered photographs, most photographers, daunted by the task and expense of copyright registration, do not register their photographs.

PACA members were particularly concerned with protecting the images published in their catalogs. The ability to register a stock photography catalog in such a way that the photographs, as well as the catalog, are all protected under one copyright application has always been a challenge. There are essentially two types of copyrights involved in the publication of a catalog. The agency owns the copyright to the publication as a whole, known as a collective work or compilation, and includes the selection and arrangement of the photographs and any parts of the catalog owned by the agency. In addition, each contributing photographer or illustrator owns the copyright to his or her individual photograph or illustration contained in the catalog. Copyright Office regulations only permit one claimant per application. Under these regulations, each contributor and the agency would have to file a deposit of two copies of the catalog and a separate application per image (or group of images by one claimant) for $30 per application, amounting to hundreds of applications and fees per catalog.

PACA'S MEETING WITH THE COPYRIGHT OFFICE:
The burden and expense of this procedure resulted in a meeting five years ago among PACA (the then President and the Legal Committee) and the Register of Copyrights, the Chief Examiner and the Head of the Visual Arts Department at the Copyright Office. At this meeting and through follow-up conversations, a recommended simplified registration of catalogs was established. The only way to file ONE application, is for the individual contributors to grant the agency legal title in the photographs for copyright registration purposes. This protects the collection of images (selection and arrangement) and any previously unpublished images published in the catalog. Previously published images must still be registered separately. The copyright can be reassigned to the photographer after registration. A sample application was published in the PACA newsletter at the time. A copy can be faxed to any member upon request.

DIGITAL DATABASE REGISTRATIONS:
Over the past five years, with the increased use of the Internet to promote and sell images, the same difficulty arose in registering large collections of photographs by various photographers published within an agency's digital databases. Again, the Copyright Office worked with me in carrying forward the same recommendations made for print catalogs with digital databases. The Copyright Office has a database registration that permits the submission of a database of works on a CD-ROM and then allows the registration of quarterly updates every three months. Thumbnails of 50 images must accompany the application.

The unpublished underlying images can be protected as well as the database as a collection, if the same grant of rights from the contributors is obtained by the agency that was obtained with the print catalogs. The Photographer Agency Agreement, or another writing, must provide that the photographer is granting legal title to the photographs for registration purposes solely. The agency agrees to reassign the copyright after registration. It is not the intent that the agency would own the photographer's copyright, other than for the limited purpose of economically and efficiently registering the work for the photographers' benefit, and then reassigning the copyright back.

A sample database registration and quarterly update application can be faxed to any member upon request. Exclusion of evidence can harm stock photo agencies as easily as it can help them in these types of disputes.

17. Morris vs. Business Concepts Inc.
A federal district judge in New York dismissed a copyright action brought by an individual author of a monthly magazine column on the grounds that the author did not have a valid registration. The defendant had copied and republished 24 previously published articles without her authorization or credit. The author had granted Allure magazine first right to publish the articles for 90 days in the United States, and the nonexclusive right to republish the articles through the life of the copyright. Cond6 Nast, the owner of the publication, applied for and received Certificates of Registration from the Copyright Office on each publication.

The defendants, Business Concepts Inc. publish a newsletter that republished her articles, without obtaining permission. There was no issue that the author was the owner of the copyright to the articles, or that the defendants had infringed her copyright. The issue was whether the author had the keys to the Federal Court house, a valid copyright registration. The court determined that the magazine's copyright registrations in the compilation (the magazine), did not afford protection in the author's individual articles. The author, like many authors and editorial photographers, do not individually register each work, but rely on the fact that the magazine's registration is for the benefit of the individual contributors. This understanding has a long history and was part case law that developed under the 1909 Copyright. Until this case, there was no decision to the contrary. In fact, other federal district courts have specifically held otherwise.

In the case of Curtis v. General Dynamics involving the photograph of a wheelchair that was first published in Communications Art, a district court in Washin_gton State, found that the magazine's assignment of copyright to the photographer, in the collective copyright in the magazine satisfied the requirements of the Copyright Act. The photographer also filed for his own registration after the infringement, the magazine's prior registration was sufficient to afford him the benefit of statutory damages.

It does not make sense that in the Curtis Case, the author could rely on the prior registration of the publication for statutory damages, and that in the Morris case, the same collective registration could not grant the author the right to commence an action for copyright infringement. The formalities of the US Copyright Act, including the need for registration, has long been criticized. The financial burdens of registering a large body of work often make registration prohibitive.

The consequences on this decision are great if it is followed by other courts. Imagine the number of separately owned works in a large textbook or encyclopedia. Once the work was published, each contributor, which could be hundreds or more, would be obligated to send in an application, $30 dollars, and two copies of the textbook to the Copyright Office. The capacity of their already full warehouses will have to be increased many times. Further, it seems contrary to the intent of the Revised Copyright Act of 1976, that authors have less rights than they did under the 1909 Act, where it was clear that the individual contributors were beneficial owners of the publisher's copyright.

I understand an appeal has been filed. This case may be an appropriate one for PACA to lend support in an Amicus brief since it affects the ability to enforce copyright protection in all editorial works. The need to separately register each image published editorially is unreasonable and may be impossible, since tear sheets are often not provided once a work has been published. I will keep you posted on any developments.

18. SPORTS ARTIST PREVAILS IN SUIT BY TIGER WOODS
A federal judge in Ohio recently issued a decision if favor of a painter sued by ETW, the licensing agent for golf star Tiger Woods. (ETW Corp. v. Jireh Publishing Inc.) The work in question was limited edition poster reproduction of the work "Masters of Augusta." It depicted Woods in three different positions, surrounded by images of past Masters champions. Woods' name and the title of the painting are printed on the lower edge of the poster. ETW claimed that the poster violated Woods' rights under the Lanham Act and state trademark law, as well as Woods' rights under the Ohio right of publicity statute.

The judge dismissed both the federal and state trademark claims, finding that use of Woods' image could not create a likelihood of consumer confusion as required by those acts. ETW submitted licensed posters bearing pictures of Woods, but each of them used a different image or images. Quoting from her decision in Rock & Roll Hall of Faine & Museum v. Gentile Productions, the judge stated, "Consistent and repetitive use of a designation as an indicator of source is the hallmark of a trademark. " An individual's image is inconsistent, and a photograph of a person can only constitute a trademark if a particular one were used repeatedly on specific goods.

The licensing agent also claimed a trademark violation based on the use of Woods' name in the poster's caption. However, the court held that the use of the name to describe the artwork was "fair use." The court stated, "The federal trademark statute, provides a defense to an infringement charge on the ground that the use of the term 'which is descriptive of and used fairly and in good faith only to describe the goods ... of such party." The court also rejected the agent's claim based on the right of publicity. ETW argued that the posters were sports merchandise, or alternatively, commercial speech entitled to less First Amendment protection. Finding for the artist, the court distinguished the limited edition reproductions from "posters that merely reproduce an existing-photograph." In so doing the court was making an apparent distinction between a work by a graphic artist and an image created by a photographer. The court relied upon Factors v. Etc., inc. v. Pro-A-rts Inc., among others, in making this distinction. In that case, the owner of the copyright in a photograph of Elvis Presley was enjoined from selling a poster of the image with the words "In Memoriam" printed on the bottom. The court rejected the defendant's argument that the poster was newsworthy, and therefore entitled to First Amendment protection.

Reading the case regarding the Woods poster closely, it seems that the court focused on the artistic merit of the poster. Indeed, the court embraced the argument that the posters conveyed the artistic message of "the majesty of a newsworthy event." In addition, the court made note of the fact that the Woods poster was a limited edition, and that each poster comes with a "certificate of authenticity," confirming that "only 5000 prints are available world-wide".

While the court concluded that it was untenable that all poster are the equivalent of merchandising, I not think it was the intent that a print of a painting is artistic, and a limited edition -print of a photograph is not artistic expression. Photographers of note having been selling limited editions and reprints of celebrities for years without objection. In light of this decision, photographers who release limited runs of reprints of their photographs, and who stress the artistic merit of those works, are likely to overcome the language of ETW v. Jireh and avoid having their work considered -pure "merchandising" as in the Elvis Presley poster situation.

TASINI UPDATE
The Second Circuit recently denied the defendant news organizations' motion for reconsideration of its ruling in Tasini v. New York Times in which it ruled that the news organizations did not have the right under their collective copyright to republish the individual articles of journalists online databases and CD ROMS.

19. NBA SUES NY TIMES FOR PHOTO SALES
The National Basketball Association has brought a breach of contract suit against the national publication New York Times for offering for sale, through its Online Store and newspaper advertisements, its collection of "Basketball" photographs. The Times is selling a collection of five poster-size photographs for $900, or for $195.00 each. The suit brought by the NBA alleges that the Times' sale of NBA game action photographs violates the terms governing the publication's access to NBA games. The Time's press credentials restrict their use of the games' photos "for the sole purpose of news coverage of a particular NBA game." The NBA is seeking an injunction to stop the Times from selling the photographs, in addition to any other photographs it has taken at NBA games. In addition, the league is also seeking money damages, including all profits that have been gained from the sale of the photos thus far.

Photographers and agents have been complaining over the past few years about the restrictive conditions the NBA has been placing on photographers. While this action has only recently begun, the photo industry will be watching.

20. WEBSITES
I had a conference call on Friday, July 21, 2000, with PACA member Larry Minden of Minden Pictures and Richard Schmelzer, who is creating a "fingerprinting" technology for images and other intellectual property, that he hopes will prevent the uploading of copyrighted images on community web sites. As you recall, I have been in communication with the attorneys for Webshots on behalf of PACA and individual PACA members, raising concerns that its web site provides the tools that permit individuals to upload copyrighted images as their own and share them with other community members.

This technology would be at no costs to PACA members. Essentially, members would submit images in digital format. Schmelzer's company would "fingerprint" the images and maintain a database of fingerprinted images. The service would be marketed to web community sites such as Webshots. These communities would screen all existing images, as well as any new images that members upload. Any image that matched a fingerprinted image would be bounced and a message would be delivered to the community member stating that the image is copyrighted. Mr. Schmelzer is currently beta testing the technology and anticipates that the testing will take up to two months. The project is currently called "IParchive.com". Minden Pictures has volunteered to participate as a photo agency for this trial period. Excite, as a community website, has agreed to participate in the beta project as well. If any other members are interested in participating in the testing phase, please let me know.

21. IP ARCHIVE (INTELLECTUAL PROPERTY ARCHIVE)
Several members have had questions regarding PACA's role with the company IP Archive. This company is testing a system that will detect and prevent the uploading of copyrighted digital images in web based photo communities. This company plans to beta test the system over an eight week period during September and October. Although IP Archive is interested in having PACA members participate in the test, it is understood that PACA itself does not have a role in the testing, other than as an "onlooker." The owners of IP Archive will keep me informed of results, that I can share with members. It has also been made clear that PACA's a trade organization does not "endorse" or "Support" any products.

IP Archive is now set up to receive email directly. If any members wish to contact the company for more information, the president of the company, Frank Hightower, can be reached at fhightower@Fastideas.com. The last information I received was that responses for participation should be received by 5 PM PST on August 16, 2000.

22. COURT REVERSES DECISION ON JACK LEIGH'S BIRD GIRL PHOTOGRAPH
In 1998, the Southern District Court of Georgia granted summary judgment against photographer Jack Leigh, in his effort to protect the unauthorized coping of his "Bird Girl" photograph. Leigh was hired to photograph an image for the novel "Midnight in the Garden of Good and Evil." When Leigh came across a statue in a Savannah Georgia cemetery his decided it conveyed the perfect "eerie" and "spiritual" mood of the novel's plot and the photograph was licensed for use on the novel's cover. When it was decided in 1997 that a film version of the novel would be made, Warner Brothers made a replica of the Bird Girl. The film company then took photographs of the replica statue that were then used in the film's promotional materials and the actual movie. While the film company did request permission for this activity from the estate of the sculptor, no permission was ever requested of Leigh. Leigh brought suit against Warner Brothers for this activity, alleging that images taken infringed this copyright and trademark rights in the Bird Girl photograph. In a surprising decision, the lower court judge ruled against Leigh, stating that because the photograph was not original, it was not entitled to protection.

Leigh appealed this decision and the 11th Circuit has just overturned the previous holding for Leigh's copyright claim. The Court has now stated that the use of the image in the two-dimensional promotional materials may in fact be an infringement of Leigh's copyrighted photograph and has remanded the case back to the lower court for further litigation. PACA wishes Jack Leigh much luck in his pursuit to protect the copyright in his beautiful image of the "Bird Girl".

23. NEW FRENCH LAW
For those agencies with new bureaus in France, PDN just reported on a new French law that was just enacted that restricts the photographing of certain news events. The law is obviously in reaction to death of Princess Dian