Darin M. Klemchuk 4/2/18 Darin M. Klemchuk 4/2/18

Weekly IP Buzz for week ending March 30, 2018

Weekly IP Buzz -- Cryptocurrency Hacks; Urban Outfitters and Copyright Infringement; Trademark Squatting in China and Michael Jordan -- Here's a summary of interesting developments in intellectual property, technology, social media, and Internet Law for the week ending March 30, 2018.

Cryptocurrency Hacks; Urban Outfitters and Copyright Infringement; Trademark Squatting in China and Michael Jordan

Here's a summary of interesting developments in intellectual property, technology, social media, and Internet law for the week ending March 30, 2018.

Cryptocurrency Hack – Conversion under Texas Law?

This post discusses the elements of a claim for conversion under Texas law, and whether that type of claim would cover a cryptocurrency hack situation such as Bitcoin theft. As discussed below, a claim for cryptocurrency conversion likely would be treated by Texas courts similar to theft of a bank account or bank deposit such that Texas law would not recognize a claim for conversion of cryptocurrency or any other kind of digital currency. Plaintiffs should look to other Texas law to remedy such a theft. Read more about cryptocurrency.

Lessons from Urban Outfitters' Willful Copyright Infringement Case

In April 2017, Urban Outfitters and Century 21 were found liable for willful copyright infringement of a fabric design owned by Unicolors, Inc. Unicolors has filed over 60 lawsuits to enforce its copyright registrations in its fabric designs. The trial court awarded $164,400 in damages and $366,910.17 in fees and costs. On appeal, the Ninth Circuit upheld the infringement ruling and agreed with the district court that the striking similarity between the registrations and the accused designs allowed the court to infer that Urban copied the design even thought there was no evidence of Urban having access to the design. Importantly, the Ninth Circuit rejected Urban Outfitters’ argument that knowledge is a requirement of willful infringement, holding that reckless was sufficient. Read more about copyright infringement.

Trademark Squatting in China: Michael Jordan and Hope for Other Brands

Earlier this month, China’s Supreme People’s Court passed down a decision in favor of basketball star, Michael Jordan. Jordan had been waging a four-year battle with a Chinese sporting goods company, Qiaodan Sports Company, Ltd. (“Qiaodan”). In finding for Jordan, China’s Supreme People’s Court held that “Jordan” in its Chinese character equivalency still referred specifically to Michael Jordan, and as such, the Supreme People’s Court declined to maintain protection of the Qiaodan’s trademark that had been registered for use in multiple classes in connection with Jordan’s surname. In finding for Jordan, China’s Supreme People’s Court overturned the previous ruling of a lower court that had granted the protection to Qiaodan. Read more about trademark squatting.

Click to read last week's Weekly IP Buzz.

For more posts, see more at our intellectual property law blog.

--------

Darin M. Klemchuk is founder of Klemchuk LLP, a litigation, intellectual property, and transactional law firm located in Dallas, Texas. He also co-founded Project K, a charitable movement devoted to changing the world one random act of kindness at a time, and publishes Thriving Attorney, a blog dedicated to exploring the business of the practice of law, productivity and performance for attorneys, and other topics such as law firm leadership and management, law firm culture, and business development for attorneys.

Click to learn more about Darin M. Klemchuk's law practice as an intellectual property lawyer.

Darin M. Klemchuk 3/30/18 Darin M. Klemchuk 3/30/18

End to Movie Piracy? Blockchain Technology in Movie Industry Debuts

"No Postage Necessary," is a romantic comedy about a hacker that makes a living through stealing mail. The film, set for release in June, may be one of the first instances of blockchain technology in the movie industry.

"No Postage Necessary," played by George Blagden is a romantic comedy about a hacker that makes a living through stealing mail. The film gets its US and worldwide release in June. It is also being distributed through blockchain technology similar to Bitcoin. This may be one of the first instances of blockchain technology in the movie industry.

Blockchain Technology and Intellectual Property Rights

While not common in the movie industry, blockchain technology has been around for years and functions like a shared and encrypted "ledger" that is fixed such that users and third parties cannot manipulate the records. In addition to cryptocurrency, blockchain has been used in a variety of industries. The technology stores transaction data in a ledger that identifies buyers, sellers, and property akin to land records.

Assuming a blockchain system is used to distribute movies or other intellectual property rights, access through such a system could lessen piracy via a secure peer-to-peer payment system granting exclusive access to the digital media. This requires the blockchain system to provide the exclusive access to the media, which is nearly impossible to achieve. Moreover, it is possible to have a cryptocurrency hack, so no system is completely safe.

Blockchain Technology Movie Industry

"No Postage Necessary" is slated for theatrical release in June as well as available online to purchase through cryptocurrency. In addition, the movie is reported to allow moviegoers who upload a review to unlock Vevue tokens as rewards.

While hailed, blockchain technology presents a number of challenges. For example, if blockchain transactions in the ledger are kept completely anonymous, it becomes a tool for money laundering, organized crime, and terrorists. If the transactions are not kept anonymous or there is a security breach, blockchain technology presents enormous privacy risks.

Whether blockchain technology in the movie industry ends piracy remains to be seen. But it is nonetheless an interesting step forward.

Read more here: https://www.yahoo.com/news/hollywoods-first-blockchain-movie-end-piracy-055937341.html

Additional Reading on Blockchain Technology

Below is a list of additional blog posts analyzing blockchain technology:

The Intersection of Cryptocurrency and Intellectual Property Law
The Rise of Cryptocurrency
The Perils of Cryptocurrency and Blockchain Technology

-----

In addition to Thriving Attorney, Darin M. Klemchuk is founder of Klemchuk LLP, a litigation, intellectual property, and transactional law firm located in Dallas, Texas. He also co-founded Project K, a charity devoted to changing the world one random act of kindness at a time. Click to read more about Darin Klemchuk's practice as an intellectual property lawyer.

Darin M. Klemchuk 3/26/18 Darin M. Klemchuk 3/26/18

Weekly IP Buzz for week ending March 23, 2018

Weekly IP Buzz -- Patents and Extrinsic Evidence; Collaborative IP and the "Connected Car'; Online Counterfeiting -- Here's a summary of interesting developments in intellectual property, technology, social media, and Internet Law for the week ending March 23, 2018.

Patents and Extrinsic Evidence; Collaborative IP and the "Connected Car"; Online Counterfeiting

Here's a summary of interesting developments in intellectual property, technology, social media, and Internet law for the week ending March 23, 2018.

Federal Court of Appeals Agrees to Allow Use of Extrinsic Evidence

Recently, the Federal Circuit opened the door to allowing use of extrinsic evidence in deciding claims of patent eligibility. In Berkheimer v., HP Inc., the Federal Circuit reviewed a decision by a lower court to invalidate eight patent claims. The court stated that the “patent eligibility is ultimately a question of law.” However, it added that the underlying question of whether something is patent eligible also includes factual determination. In a second case, the Court of Appeals for the Federal Circuit issued an opinion that allowed extrinsic evidence use. In the decision, Aatrix Software, Inc., v. Green Shades Software, Inc., No. 2017-1452 (Fed. Cir. February 14, 2018), the Federal Circuit held that factual questions can be used to preclude dismissal of complaint of patent ineligibility. Read more about extrinsic evidence.

Sharing The Vehicle: Collaborative Intellectual Property Issues

The “connected car” is viewed as the new platform for a whole host of new innovative technologies. From OEM vehicle manufacturers to the largest of technology companies, many different players are interested in the up and coming “connected car” platform and some consideration must be given as to how the innovative technology is shared, distributed and managed. Innovation for the “connected car” in involves the vehicle manufacturers, many large Silicon Valley companies, and small to medium sized business all vying for inclusion into the platform. Many market participants understand that sharing and cooperation are the only “sure bets” when it relates to the “connected car” platforms. Read more about innovative technology.

Are Amazon and eBay Involved in Online Counterfeiting?

A case pending before the Federal Circuit highlights the challenges in attempting to stop online sales of counterfeit products. It also raises interesting questions about whether online marketplaces, including eBay and Amazon, are legally responsible for sales of counterfeit products sold through their marketplaces but not “sold by” those companies. It began with the family pets, Milo & Gabby. Using them as inspiration, a husband-and-wife team came up the designs for cartoon-like pillowcases for kids. Sold under the name Milo & Gabby, the pillowcases were a commercial success. The small business obtained design patents and took additional steps to secure their intellectual property. Read more about online counterfeiting.

Click to read last week's Weekly IP Buzz.

For more posts, see more at our intellectual property law blog.

--------

Click to learn more about Darin M. Klemchuk's law practice as an intellectual property lawyer.

Darin M. Klemchuk 3/21/18 Darin M. Klemchuk 3/21/18

Ashley Madison and Copyright Law

Hacker group Impact Team has followed through on its threat to release over 30 million user records from the extramarital dating service Ashley Madison, but site owner Avid Life Media continues using copyright law to limit the distribution of the leak. Relying on the Digital Millennium Copyright Act (DMCA), Avid Life has successfully obtained takedowns of links to the data posted onFacebook, Twitter and Reddit. Additional takedown notices have shut down metasites permitting search of the data leak by account email address or phone number.

Will a recent data leak have you headed for divorce court? Read more about Copyright Law.

-----

Darin M. Klemchuk 3/21/18 Darin M. Klemchuk 3/21/18

Brand Protection, Social Media, and Cyberspace

Facebook has more than 350 million users, Twitter boasts 32.1 million, and MySpace attracts over 115 million to its site each month. The number of people using social media makes trademark infringement and brand confusion as easy as creating a username and password. In Dallas alone, where we are based, more than 700,000 area businesses have a Facebook Page, which are customizable mini-sites geared toward organizations, products, or public personalities. In reaching out to their target demographics, these companies allow users, or “fans” of the page, to post comments, view news and information, and basically have a voice about that company.

Learn what steps you can take to combat IP infringement online. Read more about the law surrounding Social Media.

-----

Darin M. Klemchuk 3/21/18 Darin M. Klemchuk 3/21/18

Terms of Use Agreements: Why You Need Them for Your Website and eCommerce

A terms of use agreement serves as a contract between a website operator and a website user, essentially allowing the operator to set ground rules for the website’s use. These agreements have become a near-necessity for website operators because they help show that users understand how they are permitted to interact with the website and that they have agreed to adhere to those parameters of interaction. Thus, any company with an online presence should consider including a well-crafted terms of use agreement for several reasons.

Attention online businesses! Want to help protect yourself and your users against spamming? Read more about Internet Business & eCommerce.

-----

Darin M. Klemchuk 3/21/18 Darin M. Klemchuk 3/21/18

Patent Litigation and China: Next Hub for IP?

We tend to focus on intellectual property rights in the United States. But China is becoming a major player in both filings and enforcement of IP. As a result of its efforts to become a nation of innovators, China is becoming a popular place to file patent applications. From 2010 to 2012, patent applications in China represented 73 percent of the world’s increase in filings. According to a recent National Patent Development Strategy, China intends to have 2 million patent applications in 2020. (By comparison, the U.S. had 571,000 patent applications in 2013.)

What incentives has China come up with to reduce the cost of patent filings? Read more about Patent Litigation.

-----

Darin M. Klemchuk 3/21/18 Darin M. Klemchuk 3/21/18

Trademarks and Naming Your Startup: Facebook's Trademark Objections

If you look back at Facebook’s track record for protecting its trademark, some might say the social media giant goes overboard. As Dow Jones Business News (DJBN) recently reported, Facebook takes an aggressive approach against companies potentially infringing on its mark, and has raised more than 100 objections with the U.S. Patent and Trademark Office so far. According to DJBN, Facebook objects to companies choosing names such as Designbook, Teachbook, Faceplay, and Facewerk, which use either “book” or “face” in their brand names. While the big guy going after the little guy may seem like bullying, Facebook and other big brands have a responsibility to police their brands.

When it comes to brand management, would your business be more like Chick-fil-A® or Coca-Cola®? Read more about Trademark Litigation.

-----

Darin M. Klemchuk 3/19/18 Darin M. Klemchuk 3/19/18

Weekly IP Buzz for week ending March 13, 2018

Weekly IP Buzz -- Trade Secrets to Incentivize Headquarters; Beware the Blue Turf; The Future of 'To Kill A Mockingbird' -- Here's a summary of interesting developments in intellectual property, technology, social media, and Internet Law for the week ending March 13, 2018.

Trade Secrets to Incentivize Headquarters; Beware the Blue Turf; The Future of 'To Kill A Mockingbird'

Here's a summary of interesting developments in intellectual property, technology, social media, and Internet law for the week ending March 13, 2018.

Cities Claim Trade Secret to Incentivize Headquarters

Recently, major cities of Michigan were involved in the bidding war over Amazon’s latest corporate campus. In helping to craft bids for the site, the Michigan state government enlisted the help of the Michigan Economic Development Corporation (“MEDC”) in its quest to secure Amazon’s site. But even though Michigan was unable to procure Amazon’s latest campus, the state government has resisted Freedom of Information Act (“FOIA”) requests to disclose how much was offered in tax incentives to Amazon under FOIA exemptions available if the information can be classified as “trade secrets.” More

Beware the Blue Turf

Boise State is known, at least in part, for the blue color of its football field. The university has had blue turf since 1986, when the athletic director installed blue turf to cut costs. In addition to saving money, the blue turf attracted players, provided additional exposure for Boise State’s athletics, and dramatically increased enrollment. According to a city historian, the blue turf now “represents the city.” More

Harper Lee’s Estate Kills Mass-Market Edition of ‘To Kill a Mockingbird’

One of the most-read books in high schools throughout the country will soon be undergoing a major change. After the death its author, Harper Lee, the novel “To Kill a Mockingbird” will cease publication in its “mass-market edition form”—a decision that Lee’s estate made. This decision is significant because mass-market editions of books are typically much cheaper than their traditional paperback counterparts. For instance, one publisher sells a mass-market edition for $8.99, while a rival publisher, HarperCollins, sells the paperback for $14.99 and $16.99. And one report estimates that two-thirds of the approximately 30 million copies of “To Kill a Mockingbird” sold since its publication have been mass-market editions. More

For more posts, see our Intellectual Property, Technology, Business Law, Social Media, and Internet Law blog.

Click to read last week's Weekly IP Buzz.