Read online - IPPro The Internet
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Read online - IPPro The Internet
Special w w w. i p p r o t h e i n t e r n e t . c o m The primary source of global intellectual property internet news and analysis Za-Za-Zooming In On A Brand How to keep your portfolio ticking over Copyright Reform Content portability and beyond Google Books Fair to whom? Turkish Trademarks Modernising the law Online Disputes Choosing an arbitration centre Intellectual Property in an Innovative World Latest News Contents Baidu to collaborate with publishers to tackle copyright infringement China. This memorandum of understanding today represents a great step towards this, creating a collaboration which will lead China’s largest search engine, Baidu, has to faster and streamlined approaches to signed a memorandum of understanding for tackling a global problem.” Bob Barchiesi, president of the IACC, copyright protection collaboration with the provides an update on the fight against International Publishers Copyright Coalition Luxury brands unperturbed by threats counterfeiting and piracy (IPCC), in a bid to reduce online infringement. to intellectual property online p6 IACC Update The agreement sets out a programme of The threats posed to data, online collaboration to tackle the shared issue of transactions and intellectual property are online infringement. largely underplayed as perceived challenges to luxury brands, Taylor Wessing has claimed Emma House, director of public relations at in a new report. the UK Publishers Association, said of the agreement: “As one of the sponsors of the The Luxury Barometer is aimed at predicting IPCC, we warmly welcome the memorandum trend forecasts in the market, to help aid of understanding with Baidu signed during businesses. The underlying research was UK-China Copyright Week.” conducted by YouGov. “This demonstrates Baidu’s commitment to working with global rights holders to tackle copyright infringement for mutual benefit.” Dr Ros Lynch, director of copyright and enforcement at the UK Intellectual Property Office, witnessed the signing as part of her visit to China to understand cooperation activities on copyright protection and enforcement. Lynch planned to meet Chinese government and law enforcement counterparts, and was accompanied by Detective Chief Inspector Peter Ratcliffe of the City of London Police Intellectual Property Crime Unit (PIPCU). She heard discussions covering exchanging enforcement best practices, including online copyright initiatives such as PIPCU’s Infringing Website List and cross-border joint operations to tackle counterfeit goods. New gTLDs Lexsynergy, the TMCH and fTLD Registry Services outline how trademark attorneys should approach brand protection in the new gTLD programme p8 RPM Review An ICANN working group is reviewing the rights protection mechanisms of the domain name system When the firm asked luxury brands what p12 challenges their business might face in the next 12 months, only 2 percent mentioned intellectual property. Tips for selecting the most appropriate arbitration and mediation centre for disputing Both cyber crime or data security was only domain name registrations considered a threat for 8 percent of luxury p16 brands surveyed. UDRP/URS Naming Strategy The UK luxury market is worth around £32 For those brands interested in aligning their billion. When questioned, luxury brands put corporate intangible assets, there are some their faith in online channels rather than key points to consider their own retail stores, at 61 percent and 37 p18 percent, respectively. Cross-Border Copyright The firm said luxury brands are embracing The proposed EU Content Portability online and mobile technology as an Regulation may not alone revolutionise the opportunity for growth, but without European content licensing market acknowledging the risks of operating in an p24 online market. Google Books “For some businesses, this unbridled An entertainment and new media attorney “In the UK, we recognise that government optimism could itself create risks that unpicks the US Supreme Court’s decision to and legislation can only reach so far. It is challenge business growth plans.” let Google Books stand important that rights holders and internet p28 platforms work together to help protect IP,” Tom Carl, senior associate at Taylor Lynch said of the Baidu agreement. Wessing, said counterfeiters, copycats, discount sellers and parallel importers are New legislation in Turkey promises a swathe of “The benefits of an efficient and fair global “hungry” to exploit this market and its new trademark changes IP system are huge, for both the UK and platforms and technologies. p34 Turkish Trademarks IPzen 3 Latest News Carl explained: “These offer lower running costs, no borders, and more anonymity—making them particularly attractive for infringers and harder for brand owners to protect and police their IP.” Following the consultation, which attracted The changes must still be presented to 1,032 responses, it “became clear” that in parliament before they can go into effect. order to achieve its aim, some wider changes were also required to the offence provisions, Getty Images takes aim at Google said the government in its response, which “Whether or not they fully embrace the digital was published this month. Getty Images has filed a competition law marketplace themselves, brand owners complaint against Google with the European therefore also need to invest in suitably A large percentage of respondents were Commission over the internet company’s protecting their IP and policing infringers concerned that there is currently no Images search engine. online. Appropriate selective distribution requirement to prove an infringer has intent arrangements should also be implemented to to cause harm, in order for them to be The complaint follows Getty’s support of the preserve exclusivity.” culpable of the offence. European Commission’s investigation into allegations that Google is distorting search UK to increase prison term for online Under the revised changes, criminal offences results in favour of its own services. will not apply to low-level infringement that The UK has confirmed it will increase the causes minimal harm to copyright owners, in The new complaint accuses the internet maximum penalty for online copyright particular where the individuals involved are company of contributing to widespread infringement to 10 years in prison. unaware of the impact of their behaviour. piracy. Getty’s complaint, which was filed with the European Commission on 27 April, Changes have been made to scope of the Baroness Lucy Neville-Rolfe, the UK’s focuses on changes made to the image offence following a consultation carried out minister for intellectual property, said: “The search functionality of Google Images last year in which the government received UK is frequently cited as the world leader in IP product in 2013. substantial criticism for the proposal. enforcement, and as minister for IP I want to do everything I can to preserve this standing.” In a statement, Getty Images argued Under the proposal, online copyright that the changes not only affected its infringement on a commercial-scale would “The provision of a maximum 10-year sentence “image licensing business, but content be treated with the same penalty as offences is designed to send a clear message to creators around the world, by creating related to infringement of physical goods, which criminals that exploiting the IP of others online captivating galleries of high-resolution, attracts a prison sentence of up to 10 years. without their permission not acceptable.” copyrighted content”. SINGH LALL CHANDER LALL SENIOR PARTNER BITIKA SHARMA PARTNER SUDEEP CHATTERJEE PARTNER MEMBERS TEJVEER SINGH BHATIA PARTNER RAGHAV MALIK PARTNER 100 COUNTRIES In addition to India the firm has strong international presence in SAARC countries Member Law Firm SINGH SETHI COMPETITIVE EDGE IP power house with IP Litigation and filing and prosecution capability Represent almost 90% of the Patent Litigation cases and 30% of the IP Litigation cases of the country In‐house Litigation Capability is the USP. In‐house developed IP Management Software equipped to handle all aspects of IP management, relationship management, and transparent billing practices PRACTICE AREAS JYOTIDEEP KAUR PARTNER TIA MALIK PARTNER SAYA CHOUDHARY PARTNER Prosecution & litigation of matters related to Trademark, Copyright, Patent, Geographical Indicators, Designs, Telecom Law and Policy Making INDUSTRY SECTORS Pharmaceuticals, FMCG, Entertainment, IT, Beverages, Banking, Telecommunication, Cosmetics, fashion & others Widely appreciated for quality services. Recipient of several national and international accolades and recognition in last one decade ANJU KHANNA PARTNER OFFICE: D – 17, SOUTH EXTENSION – II, NEW DELHI - 110 049 INDIA P: +91 11 4289 9999 F: +91 11 4289 9900 E: [email protected] 4 Many brands make light work Bob Barchiesi of the International AntiCounterfeiting Coalition provides an update on the fight against counterfeiting, and previews the Spring Conference in Florida IACC Update Mark Dugdale reports What are the most pressing issues that brands are facing when protecting and enforcing their trademarks online? working with Alibaba Group to offer IACC MarketSafe to participating members, the IACC will continue to pave the way, building bridges with different parties to develop innovative solutions to counterfeiting. Online counterfeiting continues to be a problem. Because of it, brands get victimised twice: they lose sales and sustain damage to their brand equity. The problem persists. In fact, the Organisation for Economic Co-operation and Development’s recent report, The Economic Impact of Counterfeiting and Piracy, speaks to the increasing importance of internet and ecommerce in international trade. We are currently working on a number of major initiatives that will be some of the most innovative anti-counterfeiting programmes to date. We are looking forward to sharing the news with our members. What will your message be for members at the Spring Conference in Orlando? On the one hand, we need greater coordination and communication between government agencies and brand owners. Counterfeiters operate in a complex network that spans borders and works both online and offline. The only way to enforce IP protection is to have governments speak with one another and work hand-in-hand with brand owners to ensure that goods shipped across borders are legitimate products. Counterfeiters are evolving, and our ways to combat them should, too. This includes engaging with and working with all industries and agencies, increasing cooperation on current enforcement initiatives and ensuring that we all continue to be innovative in our approach to anticounterfeiting. As the leading global anti-counterfeiting organisation, the IACC will continue to build bridges and lead IP enforcement. On the other hand, we need to work across industries and sectors to develop more effective and innovative ways to stop counterfeit goods from being sold online. One way to accomplish this is by bringing intermediaries to the fold and working closely with these companies on developing solutions to this issue. Is the counterfeit fight being won? Counterfeiting is a complex and ever-evolving problem. Counterfeiters are sophisticated and adapt to successful anti-counterfeiting efforts and technology. The key for rights holders and governments is to continue to also adapt, work together and use innovative tools and partnerships to combat counterfeiting. The IACC’s RogueBlock initiative goes after the money—how effective has this programme been since its inception? Finally, can you confirm the keynote speakers you have lined up for the Spring Conference? Since launching RogueBlock five years ago, more than 5,500 merchant accounts have been terminated that were affiliated with over 200,000 websites. The key to fighting counterfeiters is to take the profit out of their trade, and RogueBlock does exactly that. We are pleased that our partnership with major the credit card companies and payment providers has been helpful to our members. This year we’re honoured to have a number of high-level speakers participate in our opening ceremony. Jack Ma, executive chairman of Alibaba, will deliver the keynote speech at the Spring Conference. Ma will address the importance of ecommerce, the industry coming together to collectively fight counterfeiting, and Alibaba’s efforts to protect IP rights on its platforms. China remains a top priority and the IACC was ahead of the game in collaborating with Alibaba—what more do you need the intermediaries to do to fight online counterfeiting? The US ambassador to China, Max Baucus, will speak to the US government’s efforts in China to promote strong protection and enforcement of IP rights and to combat counterfeiting and piracy by bringing industry (both rights holders and intermediaries) together in order to collaborate to find new, practical, and effective solutions to this shared problem. We are pleased that our partnership with Alibaba Group has produced positive results for members who participate in the IACC MarketSafe programme, which identifies and removes counterfeit listings on Taobao and Tmall. To date, the programme has removed more than 170,000 infringing listings and banned more than 5,000 seller storefronts from Taobao and Tmall platforms. The programme results in a 100-percent takedown rate when companies stand behind their claims. We recognise that more needs to be done. The IACC will lead a call to action and build a coalition of the willing. One company or one marketplace cannot fight counterfeiting alone. It will take a collaborative effort by intermediaries and brand owners sharing best practices and implementing sound policies. This is why the IACC created the general membership category. General membership is reserved for companies that are not directly or substantially affected by counterfeiting, but whose industry position or policies make them a potential partner with the IACC in its mission to combat counterfeiting and piracy. Companies such as Alibaba, The RealReal Inc and Wish.com have already joined, and we invite other intermediaries that are committed to being part of the solution to participate. Lastly, the White House’s intellectual property enforcement coordinator, Danny Marti, has been invited to speak at the conference’s second-day opening ceremony. This year’s conference will be the most exciting one yet. We are looking forward to seeing everyone in Orlando. IPPro IACC is working on a number of major initiatives that will be some of the most innovativeanti-counterfeiting programmes to date How is the IACC working to develop more of these collaborations? From collaborating with major credit card companies to develop RogueBlock to Bob Barchiesi, President, International AntiCounterfeiting Coalition 7 A new internet domain, a new era, a new strategy Daniel Greenberg of Lexsynergy, Peter Van De Wielle of the TMCH and Craig Schwartz of fTLD Registry Services outline how trademark attorneys should approach brand protection in the new gTLD programme New gTLDs Whether you agree or disagree, domain names are intertwined with trademarks. The vast majority of trademark law firms offer services relating to domain names or have assisted clients in resolving domain name disputes. secure a domain name matching a trademark before the internet extension is opened to the general public. Each new internet extension launches with a sunrise period, which provides the owner of a validated trademark with a priority to secure an identical domain name within a specific extension. In order to qualify for the sunrise period, a mark must be submitted to the Trademark Clearinghouse (TMCH) for validation. The impact of new internet domain name extensions, such as .adult, .bank, .insurance, .london and .sucks, is significant, creating ‘new real estate’ and marketing opportunities for brand owners to employ and for infringers to exploit. Ignoring the risks or overreacting is not a solution. It is advisable for attorneys to adopt a strategic approach making use of the various mechanisms available to trademark owners. This will ensure their clients are comprehensively protected or, at the very least, informed of the opportunities and risks that stem from new gTLDs. The TMCH is the body that manages the centralised database of verified trademarks and is connected to each new internet extension, confirming the validity of registered trademark rights. Only registered trademarks of national effect can be validated with the TMCH. The validation is not only a trademark’s ticket to the sunrise, but also includes a watch service (called Claims Notifications) that notifies the trademark owner when a third party registers a domain name that matches its trademark. It only requires a single submission in the TMCH to coverage and access to the myriad new internet extensions. Registered versus unregistered trademarks The starting point is to identify which marks a client wishes to protect and to which degree. The mark can be registered as a domain name or blocked. Further, the mark holder can be notified if someone else registers the matching name. If a mark is a registered trademark, the validated route should be followed, and if unregistered, the nonvalidated route is the only option. After a trademark is validated, the TMCH issues a signed mark data (SMD), a type of password file that is used by the trademark owner to register a domain name during the sunrise period. The single SMD file is valid for all sunrise applications during the registered period in the TMCH. Validation route The validation route is intended to provide trademark owners with the least congested route to secure domain names that match their trademarks. This route (highlighted in blue on the flowchart below) provides a trademark owner with a priority during which they can Example: Validating the trademark ‘Lexsynergy’ will allow Lexsynergy to register the exact match ‘lexsynergy.domains’ during the sunrise period. It will also forewarn anybody trying to register, for example, 9 New gTLDs ‘lexsynergy.london’, that the trademark is a registered mark and notify the mark holder if that registration is completed. To be notified when a third party activates ‘lexsynergydomains.vegas’, Lexsynergy could submit that variation of its label to the TMCH. it should understand the risks and that it could lose out on securing its desired domain names. Registering and/or blocking your mark in all internet extensions is challenging, both from a administrative and financial perspective. However, the rights protection mechanisms for mark holders doesn’t stop there. Block services Watch services should be considered as part of a brand protection strategy since they identify identical and confusingly similar domain name registrations. Eliminating squatting is impossible, but knowing what infringements exist is valuable and allows for proactive domain name recovery based on the priority of the particular infringement. Three companies that collectively applied for approximately one third of all new gTLDs offer a blocking service. Donuts and Rightside have named their blocking service the Domains Protected Marks List (DPML), while Minds + Machines calls its service the Minds + Machines Protected Marks List (MPML). A trademark with a valid TMCH SMD file can block the identical match of the trademark in approximately 300 new gTLDs. If a name is considered to be infringing specific rights, the Uniform Domain Name Dispute Resolution Policy (UDRP) and the Uniform Rapid Suspension (URS) system are the dispute resolution mechanisms available to trademark owners that fall victim to squatting. It is also possible to block keywords that contain the mark (minimum three characters). The registration term for a block is five years. The right protection strategy Example: The validated trademark ‘Lexsynergy’ will block an identical match across all of the TLDs covered by the block. The block can be extended to ‘LexsynergyDomains’ but will require a separate, additional five-year subscription. The domain name industry is expanding drastically with several new extensions launching each week. The five-year block covering the three registries’ TLDs reduces the per-unit cost for each domain name, making it an affordable option for brands that are susceptible to cybersquatting. The block reduces the size of a domain name portfolio and the administration that is associated with managing a large number of domain names. It is advisable to assess all the extensions to determine which are relevant to a particular trademark and monitor the launch dates, so that the registrant is prepared to submit its application on time and during the appropriate period. The new gTLD process can be complex and time consuming for trademark attorneys in that the key launch information is not always readily available. A block results in a domain name that does not resolve, meaning that it cannot be used or registered to an entity, but merely is prohibited from registration. A law firm should therefore consult and collaborate with a corporate domain name registrar to provide the required advice to trademark owners and to process domain name registrations. If a trademark owner wishes to use/register a domain name it blocked, it can be overridden, on a per-TLD basis, by paying an override fee for that specific domain name and submitting the matching SMD file. A TMCH-certified agent such as Lexsynergy can validate your clients’ core trademarks and thereafter develop a domain name strategy so that the launch dates for each relevant new gTLD are monitored, allowing the client to submit its application during the sunrise and to make provision for TLDs that have local presence requirements or that are restricted to a specific industry. A block can also be overridden, on a per-TLD basis, by another trademark owner that has a matching trademark validated with the TMCH. Example: ‘Lexsynergy’ has purchased a DPML and it has blocked the .careers extension. If on a later point in time, the human resources department wants to launch a ‘lexsynergy.careers’ section, it will need to pay an override fee and submit its SMD file to register the domain. The block will still cover the remaining TLDs. The rules and regulations of each new gTLD may differ and early preparation will ensure that the specific requirements are met. Some of the most popular new gTLDs among brand owners are industryspecific, including .bank, .insurance, .law and .pharmacy. Many of these industry-specific gTLDs carry strict eligibility requirements that add another step to the registration process. Non-validated route Example: The gTLD .insurance launched its sunrise period on 9 May 2016, and is restricted to licensed insurance companies, agents, brokers, associations, regulators and select service providers. Clients that are eligible for a .insurance domain name are required to submit specific contact and company information during the application process. Each application is then verified by Symantec (a third-party provider) to ensure compliance with the eligibility and name selection requirements. If a mark is unregistered (common law mark) then the non-validated route will have to be followed, which usually starts after the TMCH sunrise period. As each internet extension defines its own launch plan, these can vary on a per extension basis. Most commonly, a sunrise period is followed by ‘landrush’ and lastly, ‘general availability’. The landrush period is open to the general public, but domain names are sold for a premium price. The rules for each landrush period may differ between the different extensions. A landrush period can operate on a first-come, first-served basis or via an application process (the domain name is allocated at the end of the period, with multiple applications for the same domain being resolved via auction). Preparation for a TLD such as .insurance takes time as the client needs to provide the required information, which may be pre-verified prior to submitting the application. It is essential for trademark owners to secure their domains within these industry-specific gTLDs as early as possible. Brands from around the globe will be competing for their desired .insurance domain names making the sunrise period very valuable to trademark owners. IPPro Common law marks should be secured during this period. General availability is the last of the launch periods and the point at which most squatting activity begins. If a client waits until this period, 10 Stillwaters Law Firm ADDRESS & CONTACT DETAILS 2nd Floor 11, Awolowo Road, Ikoyi P. O. Box 56161, Ikoyi 101008, Lagos, Nigeria Tel: +234 (0) 1 454 7179, +234 (0) 1 460 5471 Mobile: +234 (0) 803 324 8860 Fax: +234 (0) 1 460 5470 Email: [email protected] www.stillwaterslaw.com STILLWATERS is an award winning law firm in Nigeria that specializes in intellectual property law, corporate and commercial, taxation and litigation. The firm operates from the commercial cities of Lagos and Abuja in Nigeria, with associate offices in Accra in Ghana and Douala in Cameroon. Professionalism, flexibility and innovation are the hallmark of our practice. We value professional excellence, outstanding result and realize they both require creativity and hard work. We strive to gain every legal advantage for our clients while upholding the principles behind the practice of law. Over the years, we have acquired considerable experience and an enviable reputation for rendering quality legal services in our areas of specialization. Practice representative clients include over 660 foreign multinationals, publicly-quoted companies, private companies, financial institutions, government institutions, industrial medium size businesses and individuals. Our practice is adequately equipped and well positioned to meet the challenges of legal practice in an ever-changing technological age. People . Integrity . Service • • • • Trademarks Patents Designs Copyright Anti-counterfeiting Border Enforcement Measures Domains Data Protection IP Litigation • • • • • IP Due Diligence Annuities Transfer of Technology Piracy Licensing Distributorship Franchising Customs Related Assistance Registrations Renewals Assignments Point and fix An ICANN working group is reviewing the rights protection mechanisms of the domain name system. Joe Alagna of 101domain considers the size of the task ahead The Internet Corporation for Assigned Names and Numbers (ICANN) recently organised the PDP Working Group to catalog all rights protections mechanisms (RPMs) in place now and to review developing policy for RPMs in all gTLDs in the future. When I first heard about this working group, I couldn’t help but ask: Aren’t we there yet? At what point do we have a good set of RPMs? There have been countless discussions and policies created regarding rights protection. I’ve always been an advocate of a minimalist approach to policy since these processes can go on forever and often just for the sake of justifying their own existence. However, upon consideration and after listening to a few of the first meetings (I am an official observer), I agree that a review of all these mechanisms is a good idea and needs to be done. After all, most of the existing policies were created right along with the creation of new gTLDs and there were no observable actions in place related to new gTLDs until the past year or two. So this is a good idea. ICANN and this working group should be credited with doing a good job of following up. As an example, there are critics of the relatively new Uniform Rapid Suspension (URS) system. The Internet Commerce Association, which represents domain name registrants from around the world, issued several statements that point out shortcomings. In June, 2015, it wrote “that the URS could be converted into a low-cost, fast-track version of the UDRP with more opportunities for domain hijackers and less due process for domain registrants”. The association also pointed out a weakness in the policy that domains remain with cybersquatters rather than being transferred. The National Law Review reported: “Under the URS, a prevailing mark owner is entitled only to suspension of the domain name. While this means that a registrant infringer can no longer use the domain name, it also prevents a mark owner from exercising control over the disputed domain. Thus, if a mark owner wants to obtain an infringing domain name for its own use, the URS is not a viable option.” URS is simply a fast track to take down a domain that obviously infringes, but the domain is not transferred to a trademark holder. This review may be an opportunity to reduce the number of processes in place or possibly improve them. Leadership of the working group is almost set. Phil Corwin, a Washington DC attorney, is the interim chair. Other chairs are J Scott Evans, who has been involved in both ICANN and the International Trademark Association for many years, as well as Kathy Kleiman, a telecoms law firm attorney. There are 133 members on the committee and 76 observers. The committee has held two meetings so far, beginning 21 April, and are planning to meet weekly until the work is completed. The work they are doing will be completed in two phases. The first phase is to review: • Sunrise and trademark claims: These services provide trademark holders with an advance opportunity to register domain names and a method of warning potential infringers that a potential claim may exist on domain names that they are registering. • URS: This is a complement to the UDRP and provides trademark holders with a quick and low-cost process to suspend domains under the new gTLDs. • Trademark Clearinghouse (TMCH): The TMCH is a global database of verified trademark information to support rights protections. • Post-delegation dispute resolution procedures (PDDRPs): This is a mechanism that provides alternative avenues for trademark holders that believe they are harmed by the conduct of a registry operator in the new gTLDs. RPM Review The second phase will be for the working group to review the UDRP, which was created in 1999 and provides an alternative dispute resolution procedure to resolve disputes between trademark holders and domain name registrants. • • • • The UDRP is more tried and true than the RPMs to be reviewed in the first phase, but it has never been reviewed before. • Working group leaders expect to complete phase one by the middle of 2017 and have not estimated a time for completion of the second phase. Once it is over, however, they believe that another review won’t be required for at least a decade or more. So the work is meant to be comprehensive and long-lasting. • • • • • In its charter, the group listed more than 100 questions to consider. These questions were made by the community regarding improvements or modifications to the RPMs in question and should form part of the discussions of the working group. The working group may decide to address all, some or additional issues to these. Some of the questions include: • Do the RPMs collectively fulfil the objectives for their creation? • Are the UDRP’s current appeal mechanisms sufficient? • Should there be a limit to the time period allowed (for example, similar to a statute of limitation) for bringing UDRP complaints? • Are free speech and the rights of non-commercial registrants adequately protected in the existing policy? • Under what circumstances (if any) should/could UDRP proceedings be made anonymous? • Should there be an introduction of a ‘loser-pays’ scenario? • Should filing fees be lower? • Should repeat and serial offenders be blacklisted from obtaining new registrations? • Are the critical concepts of ‘fair use’ fully reflected in the UDRP, URS and TMCH rules? • Are generic dictionary words being adequately protected, available for all as allowed under national laws? • Is the URS’s ‘clear and convincing’ standard of proof appropriate for the proceeding? • Is the current length of suspension to the balance of the registration period sufficient? • Has ICANN done its job in training registrants in the new rights and defences of the URS? • How can the appeals process of the URS be expanded and improved upon? • Should the trademark claims period be extended beyond 90 days? • Should the trademark claims period continue to apply to all new gTLDs? • • • • Should the Abused Domain Name Label service be continued? Does a trademark claims period create a potential ‘chilling effect’ on genuine registrations? Is the protection of the TMCH too broad? Is the TMCH and the sunrise period allowing key domain names to be cherry-picked? How can the TMCH provide education services for registrants and potential registrants? What is the effect of the 90-day trademark claims process? Is the notion of ‘premium names’ relevant to a review of RPMs? Should sunrise periods continue to be mandatory? Should there be an additional or a different recourse mechanism to challenge rejected trademarks? Should the TMCH matching rules be expanded, for example, to include plurals, ‘marks contained’ or ‘mark + keyword’, and/or common typos of a mark? Do the RPMs work for registrants and trademark holders in other scripts/languages? Do the RPMs adequately address issues of registrant protection such as freedom of expression and fair use? Is there a policy-based need to address the goal of the Trademark PDDRP? Is ICANN reaching out properly and sufficiently to the multistakeholder community? You can see that their work is cut out for them. The first two calls of the working group had over 50 people participating and all participants are required to file a statement of interest on ICANN’s website. They discussed principles of openness and transparency. Chairs and co-chairs will have off line discussions, but they do not make decisions. Decisions will be made after all discussions have been made, papers filed, and public comments considered. Once the work is completed, the working group will issue a draft report for review by the ICANN community and then, after a public comment period, will issue final recommendations. ICANN staff provided two excellent presentations in these initial meetings, one as a background review to bring all members up to date on how we got to where we are as a community, and another the following week to lay out typical structures for action. They are going to do weekly calls at 60 or 90 minutes. Most of the comments and discussion so far have had to do with introductions, sharing background information and setting rules of order. If you want to get more information or follow their progress, you can do so via community.icann.org IPPro Once it is over, the working group believes that another review won’t be required for at least a decade or more. So the work is meant to be comprehensive and long-lasting Joe Alagna, Vice president, channel development, 101domain 14 Domain Disputes UDRP/URS proceedings: Where do you go? Nathalie Dreyfus of Dreyfus in Paris offers 10 tips for selecting the most appropriate arbitration and mediation centre for disputing domain name registrations Uniform Domain Name Dispute Resolution Policy (UDRP) proceedings were established in 1999 to fight cybersquatting. More than 31,800 disputes have already been handled thanks to its efficiency. Five centres are entitled to receive UDRP complaints: the World Intellectual Property Organization (WIPO), the Czech Arbitration Court (CAC), the National Arbitration Forum (NAF), the Asian Domain Name Dispute Resolution Center (ADNDRC) and the Arab Center for Dispute Resolution (ACDR). adhered to the UDRP proceedings. Other special proceedings regarding specific domain names will be governed by specific alternative dispute resolution proceedings by centres different from those mentioned above, for example, the SYRELI proceedings administered by the registrar AFNIC for .fr. Also, according to UDRP rules, the complaint may involve several domain names, provided that they have all been registered by the same person. The URS proceedings (and some UDRP centres, namely the CAC) allow group actions against the disputed domain name holder but only if the applicants are related. The launch new domain name extensions in 2013 gave birth to a new alternative dispute resolution process: the Uniform Rapid Suspension (URS) system. Three arbitration centres have jurisdiction to decide URS cases today: Italy’s MFSD, the ADNDRC and NAF. Geographical location of the centre: Thanks to the many authorised UDRP and URS centres spread worldwide, selecting a centre, which, due to its geographical location, will be better suited than another for a specific case for reasons such as location of the dispute, different time zones, language and bank transfer costs, is wise. Moreover, the ADNDRC is itself composed of four centre located in Asia. The applicant is free to opt for the centre of its choice. Each proceeding is administered according to the guidelines enacted by the Internet Corporation for Assigned Names and Numbers (ICANN). The policies constitute a common set of rules for all arbitration centres to follow. They refer to a set of supplemental rules that are defined by the centres themselves, and govern the points that have deliberately not been covered by ICANN. Complaint formalities: Complaints are sent by electronic means to the chosen centre. The ACDR is the only centre that still authorises parties to file a complaint by post or fax. The new UDRP proceeding rules provide that the centre itself will be responsible for sending the complaint to the defendant. Some UDRP and URS centres allow parties to submit new documents after receiving the defendant’s response. This is generally accompanied by financial compensation. For example, a review in URS proceedings costs $300 at the ACDR. The centre, such as NAF, may even allocate an additional time if required by the proceedings, against remuneration. Special attention should be paid to the drafting and sending of the complaint. As a result, each centre has adopted its own rules, which evolve over time. Which proceedings do you choose: URS or UDRP? And which centre do you go for? Here is a list of key points to take into consideration when choosing the most appropriate centre: Domain name extension: Depending on the domain name extension, it is important to choose between the UDRP or URS proceedings. Legacy TLDs such as .com, .org, and .edu are not eligible for the URS proceedings. They only apply to new TLDs. Moreover, only some country-code TLDs can be the object of a UDRP complaint, if the entity responsible for the concerned country-code TLD voluntarily Length of the complaint: The common UDRP rules allow the centres the freedom to set themselves the maximum number of 16 Domain Disputes words or pages that a complaint may contain. So, most centres limit the number of words to 5,000 (ACDR, CAC and WIPO). Only 3,000 words are allowed for a complaint filed with the ADNDRC. NAF accepts complaints containing a maximum of 15 pages (including appendices). However, each centre provides a standard complaint form allowing the applicant to gain time and efficiency. URS complaints are all limited to a maximum of 500 words by the common rules (Article 1.2.7). parties, and so on. It may therefore be interesting to consult the list of experts before opting for a centre. Length of the proceedings—suspension: The duration is set by the rules established by ICANN in order to ensure a speedy process and foreseeable deadlines. The response time, or that relating to the appointment of the panel, the decision-making, or even the publication, does not really differ from one centre to another, regardless of the type of proceedings. Communications: The parties cannot contact panel members directly. An administrative officer is provided by every centre to whom all papers and documents relating to the dispute will be forwarded throughout the proceedings. However, the administrative officer does not have any decision-making powers. Therefore, this is a similar factor in all centres. The suspension of ongoing UDRP proceedings is an option open to the parties to enable them to find an amicable settlement. The terms and conditions regarding this point vary according to centres. NAF allows parties to seek a suspension of up to 45 days after filing the complaint and before the panel of experts is appointed, while the CAC allows a 14-day suspension upon written request by both parties, which can be renewed twice. Language of the complaint: Depending on the centre, the language of the complaint may vary. Theoretically, it shall be the language used in the registration contract of the disputed domain name(s), unless otherwise agreed by the parties or otherwise decided by the panel. Moreover, it may be ordered that any document submitted in a language other than that of the proceedings be accompanied by a translation into the language of the administrative proceedings (to WIPO, for example). Appeal: It is not possible to appeal UDRP decisions, but a lawsuit remains possible. All URS centres provide a right to appeal and such proceedings are regulated in the same way. The only significant difference would be the costs of appeal. There is a fixed price for NAF, based on the number of domain names, and on the number of panel members for the ADNRC and the MFSD. Cost: The cost of proceedings is probably the most significant factor in distinguishing centres from one another. Indeed, for UDRP proceedings, depending on the centre, on the number of members in the panel and the number of domain names involved, the cost of proceedings can vary greatly. However, NAF adopts a stricter requirement compared to other centres by requiring that the language of the proceedings shall only be the language used in the domain name registration contract. URS complaints must always be drafted in English and will be translated into the language of the country of the holder by the centre. This question regarding the language of the proceedings is essential as it might significantly increase the costs of proceedings. Therefore, costs need to be carefully considered. UDRP proceedings involving five domain names and a panel of three members will cost $2,900 before NAF, $3,300 before the ADNRC, $4,000 before WIPO, $3,700 before the ACDR and $3,100 before the CAC. Identity of panel members: Each centre provides a list of its experts publicly available on its website. At the very least, their names and qualifications must appear. This transparency gives information on the members who have been chosen by the centre to arbitrate on the dispute, and it allows the verification of any conflict of interest, as well as their impartiality. Moreover, when a panel of three experts is requested by the parties, the latter can, under certain conditions, propose three experts from the centre’s list to arbitrate the dispute. However, where only one expert is requested, the choice will be made by the centre. For URS proceedings involving five disputed domain names, they will cost the applicant $375 before NAF, $225 before the MFSD and $360 before the ADNDRC. However, the MFSD will take into account, in its pricing structure, the type of applicant (individual, public or private company, association, and so on), and the price varies according to this criterion. Finally, we must not forget that additional costs may be charged due to a suspension request, a re-examination of the case or an appeal from the URS decision. The number of experts available for each centre depends on the size of the centre and parties can make the best choice based on the expert’s experience, the nature of the dispute, the language of the Selecting an arbitration centre can therefore be tricky and requires careful deliberation in each case according to the context of the dispute. IPPro It isn’t possible to appeal UDRP decisions, but a lawsuit remains possible. All URS centres provide a right to appeal and such proceedings are regulated in the same way Nathalie Dreyfus, Founder, Dreyfus, Paris 17 Trademarks and domain names: breaching the great divide For those brands interested in aligning their corporate intangible assets, Catherine McGirr and Andy Churley of Nameshield have some points to consider With the coming of the internet, the ability to have a virtual presence in almost every country on the planet and the capability to do business globally, transformed the way we see and approach the world of commerce almost overnight. The reality is that not everything in business has changed in such a rapid and revolutionary fashion due to the internet. In the world of intellectual property, things have carried on pretty much as normal. The availability of the internet and the nature of domain names actively lend themselves to global commerce and active protection of a global online territory. However, the trademark system, and other IP frameworks, continue to provide the same jurisdictional legal defence as they did pre-internet. While this may function adequately for now, compared to things happening on the internet, the world of trademarks seems to operate at a velocity that mirrors that of geological movements. Two sides of the same coin There are striking similarities between trademarks and domain names. When considered as separate facets of the same brand strategy, both mechanisms show synergy when supporting each other with the common aim of promoting economic growth through commerce. Both trademarks and domain names expire and require renewal, reinforce brand strategy, provide protection, and facilitate freedom and the ability to operate. But while trademarks and domain names have similarities, there are also marked differences between them. Tactical versus strategic Trademarks can be considered strategic in nature. They provide the trademark owner the right to use a mark and accord a level of protection (underwritten by a legal framework) restricting third parties from using that mark. A trademark provides the ‘boundaries’ within which a brand can safely apply its business strategy—for example, a UK trademark in Class 12 applies to the UK jurisdiction and “apparatus for locomotion by land, air or water; wheelchairs; motors and engines for land vehicles; vehicle body parts and transmissions”. A domain name is more tactical in nature. If a domain name is registered, no-one else can use it. It is not simply that a third party is not permitted to use it, the same domain name cannot physically be used because it is under the control of the registrant. So if Ford Motor Company has a trademark for ‘Ford’ in Class 12 in the UK, this provides a strategic territory within which to operate that mark. However, nothing physically stops a third party from using that mark illegally. If Ford also possesses ford.uk, then that domain name cannot be used by anyone else, no matter what trademark class they are operating in. Similarly, if Ford possesses cars.uk, it prevents any other vehicle manufacturer (or anyone else) from owning it. Domain names are a tactical measure to control the online space for a brand owner and should closely reflect the trademark policy. Effect on loss One other key difference between these important intangible corporate assets is the effect on the brand owner should it let the asset lapse. If a trademark lapses, there is no discernable effect on business operations in the short term. There is no immediate loss of revenue, no change in customer behaviour and competitors are unlikely to use the fact against the brand owner even if they are aware. If a domain name lapses, the brand owner immediately loses its online presence. If the website behind the domain name is set up to permit online sales, this affects revenues immediately. The loss of online presence is noticeable by all stakeholders, customers, competitors, suppliers, press and investors. Corporate reputation is affected. Naming Strategy trademark or a domain name lapse and so keep renewing legacy trademarks and domain names. The new gTLD expansion has provided additional relevance to the trademark system Catherine McGirr, Head of services, Nameshield The added dimension of new gTLDs • • • The lack of an integrated strategy • Despite such a strong synergistic relationship between trademarks and domain names, it may come as a surprise to many that there is a huge disconnect between the management of trademarks and domain names in the majority of companies. • This can be usually be attributed to some or all of the following factors: • • • • • Such a system works on both a strategic and an operational level. While this approach may seem obvious, Nameshield’s experience is that, in practice, it is rarely truly implemented. For those brands interested in aligning their corporate intangible assets, Nameshield recommends the following steps: This expansion has provided additional relevance to the trademark system and now permits even closer ties between trademark and domain name registration strategy. • Aligning your trademarks and domain names to reinforce each other provides the possibility of a layered IP protection mechanism. Over the past few years, Nameshield has been working with select brand owners to develop automated technologies to support the implementation of an integrated naming strategy and IP management approach. For the past 25 years, the domain name system has operated largely on a geographical basis, with 21 notable exceptions such as .com, .net and .tel, which are global in nature. In 2013, the Internet Corporation for Assigned Names and Numbers (ICANN), the body that regulates the internet naming infrastructure, expanded the domain name system to allow almost any series of characters after the final dot in a domain name. With nearly 2,000 applications, these new gTLDs have opened the significance of a TLD to include industry sectors such as .archi, .accountant or .lawyer. • Is now the time for a truly integrated approach? In many companies, obtaining a list of trademarks, domain names and brands is not such an easy task and discovery technologies have to be deployed. Registered trademarks may not be supported by corresponding domain name registrations or extensions that match trademark classes. While often there are reasons for disparities, it is essential that these reasons are explicit and recorded. Use the gap analysis as a basis on which to build policy decisions on naming rules. If the naming and registration strategy is sound, don’t be afraid to let valueless legacy domain names or trademarks lapse. Don’t do it in one fell swoop but as a part of an ongoing portfolio optimisation plan. But keep an eye on what is happening to them for a period of time. Corporate strategy and focus changes, products and services are launched and others are retired, and business structures change through mergers, acquisitions and divestments. By ensuring your naming reflects corporate strategy you can guarantee that your trademark and domain name portfolio always contain the correct components to provide the optimum active and passive defence. IPPro Disassociated responsibility: The management of trademarks and domain names resides in different departments. Fragmented approach: Registering domain names by division or operating entity, while trademarks are managed centrally. Legacy registrations: Legacy domain names or trademarks have led to complex and fragmented portfolios, which are difficult to align. Corporate focus: Attention is If the naming and on either trademarks or domain names, but not both registration strategy is sound, No clear policy: Nothing for governing domain name or don’t be afraid to let valueless trademark registration exists Dearth of outsourcing providers: legacy domain names or A lack of external vendors exist that trademarks lapse have the competence, capacity and tech to handle both trademark and domain name portfolios. Fear of loss: Brand owners are often concerned about the unforeseen effects of letting a Andy Churley, Chief marketing officer, Nameshield Group 20 Patents | Trademarks | Designs | Copyrights | Litigation | Prosecution | Consultancy IP Searches | IP Valuations | Portfolio Management | License Agreements Unfair competition Lawsuits | Corporate Rights | Health Registrations. Cordillera de los Andes #320, Col. Lomas de Chapultepec C.P. 11000, Mexico, D.F. www.fernandezmanzo.com · [email protected] (52)(55) 5525-5586 · 5514-5126 · (52) (55) 5207-3911 (fax) Copyright Societies The show must not go on A court recently restrained an unregistered copyright society from issuing licences on a late Ghazal singer’s music. Lucy Rana and Tulip De of SS Rana & Co report In a recent case entitled Chitra Jagjit Singh v the Indian Performing Rights Society (IPRS) and others, the Delhi High Court restrained the IPRS from issuing licences with regard to the musical works of the late Jagjit Singh, a renowned Indian Ghazal singer who passed away in 2011. were also directed to not hold any similar concerts in the future without prior permission of the court. The case is a landmark one in the sense that the court has considered the incompetency of the IPRS in issuing licences and recovering license fees in respect of musical works. It was imperative for this to be clarified, as the 2014 Novex Communications decision of the Bombay High Court had still left some room for unregistered societies, if they could prove that they were acting as an agent, by holding that a ‘duly authorised agent’ under Section 30 of the Copyright Act of 1957 would not be hit by the prohibition under Section 33 of the act. A concert was to be organised by Panache Entertainment and the IPRS at the Siri Fort Auditorium in New Delhi on 18 March 2016, in memory of the late and renowned Jagjit Singh. The concert, however, was entitled ‘Ek Ehsaas Jagjit Singh Live in Concert’ and had taglines to the effect that Jagjit Singh “sings again for charity”. The advertisements gave the overall misleading impression that the late singer would be performing live whereas, in reality, extracts from his various live performances were going to be played along with the live band that had played alongside him for more than two decades. Aggrieved by this, the late singer’s widow, Chitra Jagjit Singh, filed the present suit. That provision states that no person or association of persons shall commence or carry on the business of issuing or granting licences in respect of any work in which copyright subsists or in respect of any other rights conferred by the act, except under, or in accordance with, the registration granted under the act. As a result, the IPRS continued to issue licences even though it was no longer a copyright society registered under the Copyright Act. Further, the plaintiff had not received any royalties from the IPRS or the event organiser for a similar concert previously held in Mumbai, for which the IPRS had collected a fee of INR 49,140 ($740). Agreeing with the plaintiff, the Delhi High Court restrained the IPRS from granting any licence in respect of the works of the plaintiff and Jagjit Singh, and from recovering any licence fee from any third party in respect of the works. The order was passed ex parte with no representation from the defendants. Subsequently, following representation from the defendants, the Delhi High Court considered the fact that the show was already booked, tickets were in fact sold out, and it was being held for charity. The Delhi High Court directed the defendants to discontinue their misleading advertisements, and stop using the name and picture of Jagjit Singh, much less portraying him to be “live in concert”. The court also told the event organisers to deposit an amount of INR 500,000 ($7,530) to secure the rights of the plaintiff on or before the date of the concert. The defendants 22 SS Rana & Co The IPRS was not competent to grant licences for the works, in which the plaintiff claims copyright as her own works and the works produced by Jagjit Singh in respect of which she has obtained letters of administration from the Bombay High Court. The attention of the court was drawn to Section 33(1) and Section 33(3A) of the Indian Copyright Act of 1957, and also to the letter written by the IPRS to the Indian government in which the copyright society claimed that it was no longer a registered copyright society within the meaning of the act as its registration had lapsed in 2013 and it had failed to get a new registration certificate. Lucy Rana, Managing associate advocate, The advertisements for the show gave the misleading impression that Jagjit Singh would perform live, whereas the event would be using Jagjit Singh’s voice and images from previous concerts. SS Rana & Co The ultimate repercussions in the Chitra Jagjit Singh case, with regard to the competency of the IPRS, are yet to be seen. IPPro Tulip De, Associate advocate, The main contentions of Chitra Jagjit Singh were: Content portability and beyond The proposed EU Content Portability Regulation may not alone revolutionise the European content licensing market, says Kalle Hynönen of Krogerus Attorneys The digital world has revolutionised the way we enjoy music and audio-visual content. People expect access to digital content anywhere, anytime, and from any device across Europe. The ability to impose territorial limitations and apply different prices to different territories has, however, been at the heart of licensing of audio-visual content for decades. Within the EU, with some exceptions, each national broadcaster or other content distributor has typically acquired rights only for their own territory. This practice has allowed content rights holders to monetise their content rights effectively, but it also has allowed national distributors to acquire exclusive rights only for their respective territory. In the world of territorial (and analogue) distribution networks, this practice was largely unproblematic, as the technical distribution means simply did not allow for a larger coverage of the transmissions. Occasional signal overspills over national borders were an unintended side-effect of technology. The borderless nature of the internet, however, has changed this and artificial borders in the shape of ‘geo-blocking’ have been deployed. According to an issues paper published by the European Commission on 18 March 2016, 68 percent of the responding content providers use geo-blocking within the EU. Typically, geo-blocking is a contractual requirement imposed by the content suppliers. The territorial exclusive licensing has been under critical discussion for some time and now the European Commission is beginning to take up arms. In 2011, in the so-called Murphy case (joined cases C‑403/08 and C‑429/08), the Court of Justice of the EU (CJEU) ruled that EU free movement of services and competition rules prohibited contractual provisions (and national legislation) that prevent viewers in one EU member state from importing satellite decoder devices from another member state in order to watch the services of a foreign broadcaster. While the English Premier League could still grant rights on a territorial basis, the relevant provisions in the Premier League’s broadcasting licence agreements against the supply of decoding devices outside the contracted territory (in that case Greece) were artificially making that territorial exclusivity “absolute”, and therefore infringed Article 101 of the Treaty on the Functioning of the EU. These restrictions could, according to the CJEU, not be justified on the basis that they were necessary to ensure appropriate remuneration for the Premier League. and EU pay TV broadcasters. The commission adopted a statement of objections in the matter on 23 July 2015 and in December last year, almost five years after the Murphy ruling, the first concrete legislative proposals in relation to the matter were released. The first step of an ambitious reform? According to the CJEU, when licensing its rights, the Premier League could take into consideration the actual and potential audience of the applicable broadcaster, both in its own member state and in the other member states in which its broadcasts could be received. The proposal for the Content Portability Regulation was released on 9 December 2015. As explained in the relevant press release: “At present, Europeans travelling within the EU may be cut off from online services providing films, sports broadcasts, music, e-books or games that they have paid for in their home country. Today’s proposed regulation on the cross-border portability of online content services addresses these restrictions in order to allow EU residents to travel with the digital content they have purchased or subscribed to at home. Cross-border portability, a new EU right for consumers, is expected to be a reality in 2017, the same year as the end of roaming charges in the EU.” The Murphy ruling revealed the EU’s ambitions to make content truly portable throughout the EU, and while it only addressed ‘traditional’ distribution technologies, its wider implications on internet distribution have remained a somewhat open question. In January 2014, the European Commission announced that it had opened a competition investigation concerning the cross-border provision of pay TV services, particularly the use of absolute territorial restrictions in the licensing agreements between a number of US movie studios Essentially, cross-border portability concerns online content services to which consumers have lawful access, or content that they purchased or rented online in their own member state of residence. According to Article 3(1) of the proposed regulation, the provider of an online content service must enable a subscriber who is temporarily present in another EU member state to access and use such online content service that he or she has acquired in his or her home member state. Copyright Reform Furthermore, according to Article 5 of the proposed regulation, any contractual restrictions, whether between service providers and subscribers or between content right holders and service providers, that seek to limit this right will be unenforceable. Therefore, while it seems unlikely that territorial exclusive licensing and geo-blocking will disappear just yet, the local operators should certainly be on the lookout. Contracting practices in content licensing are notoriously slow to change, but as media companies have learned the hard way, the digital environment may change quickly. So far, the media landscape has been re-shaped by disruptive technologies and business models, rather than by laws. This time, EU legislation might, however, work as a catalyst for wider changes. In practice, this means that a Finnish person should continue to have access to the Finnish content service that he or she has subscribed to in Finland while on holiday in Italy. It does, however, not mean that a Finnish subscriber should be able to subscribe to, and access, an Italian online content service while in Finland or another member state. Moreover, the proposed regulation excludes from its scope online content services that are provided without the payment of money and whose providers do not verify the member state of residence of their subscribers. Amid the changes it should also be kept in mind that the current licensing model that is based on territorial licences, as a side-effect, protects local operators and, consequently, may contribute to some extent to the preservation of local audiovisual culture. In the borderless world where rights are licensed without territorial limitations, premium content rights are much more likely to be acquired by global giants than small local operators. A truly pan-European content market may be a tough place for small players. IPPro Consequently, the proposed regulation alone is unlikely to revolutionise the European content licensing market and it does not challenge the territorial exclusivity of licences. Indeed, the European Commission has not yet gone so far as to say that consumers in one member state must have free access to services in all other member states. However, Recital 11 in the preamble to the proposed regulation recalls that in its judgement in Murphy, the CJEU held that “certain restrictions to the provision of services cannot be justified in light of the objective of protecting intellectual property rights”. One might, therefore, ask why would such restrictions need to be removed only for subscribers temporarily present in a member state other than the one of their residence, and not for all subscribers present, whether temporarily or not, in a member state other than their own? If these key concepts stay as they now stand in the draft, it seems the regulation may need at least a few CJEU rulings to clarify the meaning of these concepts Furthermore, the proposed regulation seems to leave room for interpretation. By way of example, the notion of “temporality” is not defined in the draft regulation. Can a month be temporary enough for the sake of the proposed regulation, while three months would be too long? In the same vein, the concept of “habitually residing” set forth in the definition of “member state of residence” is equally ambiguous. If these key concepts stay as they now stand in the draft, it seems the regulation may need at least a few CJEU rulings to clarify the meaning of these concepts. A modern, more European copyright framework: what’s next? Kalle Hynönen, Senior associate, In the communication, which was published on the same day as the proposal for the Content Portability Regulation, the European Commission unveiled its vision to modernise EU copyright rules, and the proposed regulation is, as stated by digital commissioner Günther Oettinger, only the first step. Based on this vision, the commission will consider legislative proposals during 2016 aimed at further enhancing cross-border access to online television and radio broadcasting services. Several of these will likely be in the form of ‘soft law’ and measures that seek to encourage cross-border availability and licensing practices without actual legislative intervention, but at least the review of the Satellite and Cable Directive may, later down the line, result in concrete legislative proposals that may have an impact on the market operators. 26 Krogerus Attorneys Ltd The ultimate goal of the European Commission is far more ambitious than what the Content Portability Regulation covers. Indeed, in its 9 December 2015 communication, the commission sets as the ultimate objective the “full cross-border access for all types of content across Europe”. Google Books: Fair to whom? Entertainment and new media attorney Jay Rosenthal unpicks t h e S u p r e m e C o u r t ’s d e c i s i o n t o l e t G o o g l e B o o k s s t a n d In a four-to-four year, one can excuse the US Supreme Court for passing on one of the most controversial and interesting copyright cases on its docket. Which it did recently when it rejected an appeal by the Authors Guild to overturn the Google Books case. The Court of Appeals for the Second Circuit ruled in 2015 that the Google Books search product warranted fair “transformative” use protection. The Supreme Court’s refusal to take up the case means the Second Circuit ruling stands. And that’s too bad because I would have loved to read Justice Ruth Ginsburg’s opinion, and she would have written an opinion, on the lower court’s unprecedented expansion of transformative fair use. My guess is that she would conclude the ruling was unjustified. Fair use generally allows for limited copying and use without authority of the copyright owner when supporting First Amendment and public policy goals (education, satire, news criticism, and so on), and also to transform the pre-existing content into new expressive works. The Google book scanning tool, however, does not create new expressive works. It’s not like a parody or satire. It’s a functional tool that allows for massive exact copying of pre-existing books, albeit in segments, ostensibly for the public good. The Second Circuit in the Google Books case made a rather daring leap by using the transformative use test not to promote expression, but to create a product or service designed for a totally different function. That function was to impart information, without any expressive component. An opera lover such as Justice Ginsburg would understand the difference between the two approaches. Artistic expression in derivative fair use works, in the Ginsburg pantheon, would arguably warrant much more deference than fair use applied to goods or services using copyrightable works without authority and without paying the copyright owner. She most likely would have expressed much more concern than the Second Circuit did, about the damage to, and devaluation of, the owner’s property interest. Her concurring opinion in the 2005 Grokster decision, which reexamined the Sony fair use decision over 20 years earlier in the context of peer-to-peer file sharing, speaks volumes about how she would rule in this case. In Grokster, she recognised that the unprecedented damage imposed on the music community from peer-to-peer file sharing warranted a new look at—and perhaps even a reversal of— Sony. Now some would argue that peer-to-peer file sharing technology, like the Google tool, would benefit our culture. But I don’t believe Justice Ginsburg would parse it that way. She would most likely find that the Google Books search product simply would not tip the balance toward Google, even if arguably it would be in the public interest. She has other concerns—namely, Areas of specialization IP registrations and recordings Patice attorneys assist in all subject matters relating to the registration of IP rights and IP disposal contracts with the Icelandic Patent and Trademark Office. The main IP rights for registration and recordings with the Patent Office are patents, trademarks and designs. EP validation in Iceland Patice attorneys have extensive experience in handling EP validation in Iceland. Patice translators are all specialized in IP subject areas. Patice’s prices in validation cases are very competitive. The same applies to Provisional protection of EP applications. Copyright Patice attorneys are experienced in handling copyright cases such as dispute settlement solutions, court cases and enforcement of rights. IP consulting We offer expert legal advice, contract drafting and negotiation in IP subject matters such as use, transfer, franchising, licensing, due diligence, import, export, distribution of goods, confidentiality and data protection, as well as service and agency agreements, including for IP related rights use. Enforcing IP rights – IP dispute resolution – Anti piracy initiatives Enforcing IP rights: Patice attorneys have vast experience in protecting and enforcing IP rights, providing legal support in negotiations and disputes. IP dispute resolution: Disputes relating to trademarks, patents, designs, copyrights, Internet and database rights, trade secrets and related agreements in government agencies and branches. Anti-piracy initiatives: The legal expertise of Patice attorneys combined with a deep knowledge of local markets and true understanding of local mentality and traditions, make our anti-piracy initiatives highly efficient. Patice policy Charges: Charge moderately for rendered IP services for the satisfaction of our clients and associates. Services: Providing quality services in a timely manner in accordance with proper IP business practices. Postal Address P.O. Box 10101 130 Reykjavík Iceland Communication Tel.: +354 588 1817 Fax: +354 588 0044 E-mail: [email protected] Website: www.patice.com the well-being of the authors and owners, and the inherent legal integrity of their property interest that copyright law is supposed to support. She would recognise that facilitating the development of a free licensing market is more important than a tool created by Google, ostensibly for the public good. There are three big problems with the Google Books case: • First, it adopts an expansive fair use test that not only impacts on the economics of the book industry and chokes any chance of development of a vibrant licensing market for use of search tools, but it also threatens, in fundamental ways, the economic interests of other entertainment industries, most importantly, the movie, TV and music industries. • Second, it exacerbates the damage already done to the Digital Millennium Copyright Act (DMCA) by the 2015 Lenz decision, further throwing into flux what it would mean to require a copyright owner to take into consideration whether or not the unauthorised use of its work is ‘fair’, as is now required—at least in the Ninth Circuit—before a takedown notice is sent. • Third, the ruling continues an unsettling trend of cases seeming to recognise less and less the importance of the inherent property interest of the copyright owner. The lower courts seem to be leading us down a path where any functional product or service—or perhaps even an expressive work—is subservient to the interests of the public good and thus fair use. This is a slippery slope that will forever relegate the author to second class property interest status in the US. Arguably, the lower courts took the Google Books search product and service down a tortured, perhaps unwarranted transformative fair use path. There were reports that other major technology companies were engaged in negotiations with book publishers to actually license the rights for similar search technologies. Thus, this confusing decision not only opened the door to more confusing fair use decisions—a result that will surely come—it also shut the door on the development of a new market. Exceptions to the rights of copyright owners should not be trifled with in this way. The parameters of fair use have always been applied narrowly and with consideration for the economic rights of pre-existing owners balanced against the benefit to the public of incentivising new expressive works incorporating pre-existing material. The Second Circuit obviously did not believe that the potential damage, if any, to book publishers deserved much consideration. It concluded that the potential damage was not so bad—at least bad enough to refrain from granting Google the fair use exception it was seeking. What it did not consider was the possible impact of the case on other entertainment industries. Movie producers are worried that such a search engine could be developed for motion pictures. Creating a system whereby the search algorithms can search for actors’ names and/or images. Or by certain types of scenes. How can this be reconciled with traditional copyright ownership rights—and furthermore, name and likeness rights that protect an actor’s proprietary interest in their name and likeness— and even sometimes in their vocal performance. It’s not clear what contractual rights are further implicated by these types of systems now allowed by Google Books. Record labels, artists, music publishers and songwriters should be just as worried. Unlicensed search systems aggregating small portions of their works—perhaps even just the lyrics— automatically keyed to songs or performances, could deeply impact on the economic interests of those in the music industry. Government agencies have already opined, as a matter of public policy, that use of small portions of music does not justify the creation of a compulsory licence, or adoption of a fair use defence. Copyright Concerns Recently, the US Patent and Trademark Office, in its green paper on digital music issues, refrained from recommending the creation of a compulsory licence or application of fair use for samples and mash-ups. It recognised a market developed and should continue to develop—as it should here. gain economically from the exploitation of their property. Our culture can only absorb so many disincentives for artists to create works. Otherwise, one day, they will simply stop creating. And that is exactly what the copyright law is designed to prevent. Unwarranted expansions of fair use—like that in the Google Books case—harms artists much more than it helps the interests of the public. The DMCA regime is also clearly affected by this decision. The Lenz case stands for the proposition that copyright owners must take fair use into consideration before sending a takedown notice. Arguably, the Google Books case, by implication, adds this as an additional category of inquiry. The Lenz case dealt with the unauthorised use of Prince’s music in a user-generated video uploaded to YouTube. The public good is served by artists creating art—not users expropriating art without authority in the name of fair use. The Google Books case needs to be reversed. The question now is, by whom? If not the courts, perhaps Congress is the only alternative. IPPro Whether or not it is fair use is beside the point. It is the obligation to consider fair use that is so challenging, and perhaps even impossible. Fair use was always an affirmative defence. No one has ever suggested that a copyright owner would have to consider the fair use factors applied to someone else’s work before a takedown notice is sent. Now, most of the thinking regarding the impact of Lenz on the DMCA focuses on the use of pre-existing material in expressive works, and whether the use in the new work is fair. However, most of the unauthorised use on the internet is wholesale use of entire works, such as full songs and movies. This is a category of unauthorised use that is much more immune to fair use defences, and thus arguably not as affected by the Lenz decision. But now with the Google Books case, that assumption is much less certain. If Google can expropriate entire books and call it fair use, then why can’t other users expropriate entire movies or music and claim that copyright owners must take that into consideration as well? In the context of Lenz, the Google Books case disincentivises users from sending takedown notices, and incentivises users to send counter-notices. An already complicated and anti-owner dynamic with the DMCA has now become even more complicated and one sided because of the Google Books case. Jay Rosenthal, Partner, As a final point, the Google Books case joins a number of other fair use and DMCA decisions resulting in a devaluation of the copyright author and owner’s property interest, and their ability to protect their property. This is not an insignificant point. Decisions by courts invoking the interest of the public are important. The public good is, after all, a goal that is desirable and beneficial. But at what cost? Clearly a balance must be reached between the interest of the copyright owner and the users, as well as the public. But in light of the unprecedented amount of unauthorised use of copyright owner’s work on the internet—and the damage this brings to the economic vitality of all artists—the trend should be going the other way. The artistic community does not need any other decision that makes it harder for artists and copyright owners to protect and Mitchell Silberberg & Knupp LLP If Google can expropriate entire books and call it fair use, then why can’t other users expropriate entire movies or music and claim that copyright owners must take that into consideration as well? Most have surmised that DMCA considerations of fair use are essentially limited to uses of pre-existing works in expressive derivative works. Using the Lenz fact pattern, for example, a copyright owner must take into consideration whether the use of its music in a user-generated video (ie, using Prince as a soundtrack to a video of a child’s birthday party) is fair use. And if the target of the takedown notice believes it is fair use, he or she has the right to send a counter-notification to the copyright owner, and then the copyright owner must file a lawsuit in a federal court within 10 days of receipt of the counter-notice. If it does not file a lawsuit, the work can be uploaded again. T h e v i e w s e x p r e s s e d i n t h i s a r t i c l e a r e s o l e l y t h o s e o f t h e w r i t e r, a n d n o t o f M i t c h e l l S i l b e r b e r g & K n u p p L L P o r a n y M i t c h e l l S i l b e r b e r g & K n u p p L L P c l i e n t . 32 Fighting counterfeiting and piracy is a battle. #STARTWINNING The most advanced and innovative online brand protection software available. 24/7 we monitor online market places, social media, web shops and domains. With our advanced risk analysis, we identify unauthorised sales instantly. You will get insights about the largest infringers and their complete sales channel. We prioritise your targets and make sure enforcement resources are allocated efficiently. Our strategy makes a difference. Are you fighting counterfeiting and piracy? Get in touch today and find out how we can help you to win the battle. Order your free risk report now. www.pointerbp.com/riskreport Turkish Trademarks Turkey presses ahead with reforms New legislation in Turkey promises a swathe of trademark changes. Dr Cahit Suluk of Cahit Suluk Intellectual Property Law Firm explains Shortening the period of oppositions: The period for filing an opposition to the publication will be decreased from three months to two after the publication of the trademark application in the Official Trademark Bulletin. This regulation decreases the registration period as well as the opposition period. The Turkish Industrial Property Draft Code (IPDC) was sent to the Grand National Assembly of Turkey recently. The draft, expected to pass in two months, will bring a number of important reforms, particularly in trademark protection. New trademark types: In lieu of the condition of being represented graphically in the previous regulation, it has been decreed that every type of sign can be a trademark provided that it can be “represented in the registry” so as to clearly and implicitly represent the subject matter of the trademark protection. This is a flexible approach reminiscent of EU trademark law, so that non-traditional signs such as audio and motion trademarks can be registered. Signs exclusively containing the shape or any “other characteristic” of the product resulting from the nature of the goods will not be registered as a trademark. Expansion of criminal acts: The IPDC will expand the statutory definition of criminal trademark infringement beyond “produce”, “carry” and “sell” to include those who “import or export”, “commercially purchase”, “stock”, “transport” or “store” goods and services that infringe a trademark. A person convicted will be sentenced to imprisonment of one to three years and pay a punitive fine. Adoption of international exhaustion principle: Aside from integrated circuit topographies, under the Turkish legislation the national exhaustion principle is adopted. The IPDC introduces “the international exhaustion principle” for all categories of rights. Letter of consent: Turkish law adopts the uniqueness principle for trademarks, which is considered within the scope of public order. Under the IPDC, a trademark identical or similar to a previous trademark can be registered in the name of more than one person after the approval of the previous rights holder is given. Effect of previously-dated rights: In practice, those of bad faith apply for a trademark, patent, utility model or design to benefit from the reputation of a trademark of another person or to use the patented invention thereof. In court practice, the subsequently granted document first should be annulled, and then the infringement case should be filed. Unused trademarks to be considered void: Thousands of unused trademarks have been registered in Turkey, causing disorder in the trademark registry. Considering this fact, the IPDC mandates the ‘cleaning’ of the trademark registry so that in case of an objection before the Turkish Patent Institute (TPI), an applicant may request evidence from the objector that he/she uses the trademark. Under the IPDC, the proprietor of a trademark, patent or design cannot plead using his/her own document in the infringement case filed by the proprietors of previously granted rights. The conditions for requesting evidence include: the trademark in question must not be identical with or indistinguishably similar to the previous trademark; five years must elapse after the registration of the previous trademark in Turkey; the previous trademark must not be properly used in the registered goods and/ or services for five years after the application or grant date of the trademark in question, or there must be a legitimate reason for non-use; and the subsequent applicant must request evidence of use from the trademark holder. Procedure of immediate destruction of counterfeit goods: Sufficient samples will be taken from the illegal counterfeit goods and the remaining goods will be destroyed if they are damaged, there is a significant risk of losing value, or storage of goods is laborious. Evidence of use can be requested in cases, to be filed by the proprietor, of trademark invalidation registered after the previous trademark and in cases of infringement to be filed against the person who uses the trademark thereafter. Dr Cahit Suluk, Founder, Administrative annulment: Another feature of the trademark registry clean-up is administrative invalidity. In Turkish legislation, annulment or invalidation of a trademark can only be claimed in court. Under the IPDC, applications for annulment can also be filed before the TPI. Thus, in a much shorter time and at a low cost, unjustly registered trademarks can be annulled. Reasons for annulment include: non-use for five years after the registration; being generic; obtaining such a nature as to deceive the public; and the use of guarantee and collective trademarks in violation of the technical regulation. Being a radical reform, this provision will not enter into force until 2023. Until this date, claims for annulment can be filed only in court. 34 Cahit Suluk Intellectual Property Law Firm In the presence of any of these conditions, an examination will be carried out by an expert witness and the goods will be destroyed at the beginning of the proceedings by court decision. IPPro An interview with Stephen Beny Bereskin & Par Partner Stephen Beny How did you find the implementation and change process? What services does Bereskin & Parr provide, and where? Bereskin & Parr LLP is a leading Canadian full service intellectual property law firm serving clients across all industries around the world. Founded in 1965, the firm has grown to be one of the largest IP firms in Canada with offices located in major economic and technology centers. Bereskin & Parr is made up of more than 70 lawyers and patent and trademark agents, many of whom are recognised as leading practitioners in their specialised fields. The firm has established a depth of legal talent and systems to service clients in every aspect of patent, trademark and copyright law and IP litigation. The firm and its award-winning professionals are consistently ranked as the benchmark for IP law in Canada. How long have you been a Patricia® user? Almost eight years. Bereskin & Parr implemented Patricia® Web in 2008. We will be moving staff to Patricia Client Server this year. How do you use Patricia® in your daily business? We use Patricia® to manage our client, contact and file details. In addition, we use Patricia® to track our internal and external due dates as well as generate form letters that auto-populate using Patricia data. Which aspects of Patricia® do you find most useful? There are many aspects of Patricia® that are useful. Of particular importance to our firm is the ability to manage firm processes through workflows/due dates as well as the ability to store our client, contact and files details (including track the location of our files). The ability of our administrator to customise Patricia® to meet the needs of our firm is especially significant. Finally, the robust search function in Patricia® is extremely useful to all staff. The implementation went as well as could be expected. When we implemented Patricia®, we simultaneously changed/ improved some of our processes. This resulted in not only a learning curve of the new software for some staff, but a learning curve of our new processes. Patricia® enabled us to transfer tasks (opening new files, for example) to assistants that were once handled by a centralised department. Patricia® has many functions and capabilities. We tried to keep things simple upon implementation and, over time, have been expanding our use of Patricia®. People learn quickly and are far more adaptable than they would have you think. We are continually looking for efficiencies in our processes and how we utilise the system itself. Feedback from staff is vital to the success of any implementation and we are always encouraging and acting on feedback from staff. Do you feel that you have received an adequate return on your investment? Has Patricia® perhaps assisted with bottom line profits? Yes. The security features in Patricia® allow us to lock down features in Patricia® to certain users, helping us reduce risk of due date errors, for example. Since we were able to decentralise certain tasks through the use of Patricia®, this enabled us to avoid bottlenecks of tasks that were once handled by one individual or department. The batching of data and letters in Patricia® allows us to update file information and generate letters on multiple files in a quick and efficient manner. The ability to customise workflows allows us to quickly adapt when there are changes to the law and to instill best practice processes and conformity throughout the firm. One of the main messages about how Patricia® precisely differs from typical ‘docketing’ systems is how it is so much more than just docketing. Patricia® is a full practice management solution. Which other areas of your practice does Patricia® help you with? As mentioned, we use Patricia® to store our client, contact and file details. We use pop-up notes to remind staff about client-specific reporting needs/standing instructions, and so on. We utilise the documents section to store certain key documents for easy reference. We use the data in Patricia® to analyse and balance workload amongst our administrative staff as well as to look for efficiencies. If you could give us one sentence which encapsulates your understanding of Patrix and Patricia® and what it does for your business, what would it be? Patricia® is a full service IP solution for the management of our client and file details. Extended DMS When your needs for document management surpasses the functions featured in the standard Patricia® document tab, we are happy to offer you the Patricia® Extended DMS. Efficient document management made accessible. Focus Think of all the hours spent looking for the right documents. Now think about all the time you could save if searching for information was swifter and handling your documents was more efficient. Discover the potential of Patricia® Extended DMS. Sophisticated search Patricia® Extended DMS features a full-text search function that allows you to search for content within each document – or across the entire case document tree. Scanned PDF images can be transformed into text, and added to the search index. This means you’re also able to find scanned PDF documents by searching for text they contain. powerful preview Bringing traditional case management into the digital world, the preview function lets you flick through documents and view their content – just like browsing through a physical case file. A quick and intuitive way of finding and reviewing case documents. >> Find your document fast, see what it contains and compare it to other versions. Take complete control of your case documents with Patricia® Extended DMS. << Versioning Communication Not only does this feature allow you to track previous versions of documents without needing to access backup systems, it also lets you see the difference between versions. Documents can include a history of which user edited the document and on what date. Patricia® Extended DMS also features advanced email sending capacities: select your documents by checking their boxes and send them via email, directly from within Patricia®. You can also create PDF letters with your company’s letterhead (or other templates) directly from within Patricia®. Work where you want to business as usual Offline Work Mode lets you work on case documents outside the office. You can synchronize a case document folder before leaving the office, and work on the documents while you’re away. Then, when your laptop next connects to the office network, the Patricia® Extended DMS automatically synchronizes any local changes as a new version of the document to the server. Last but not least: you can continue using Patricia® just the way you’re used to. The advanced functionality of the Patricia® Extended DMS can be accessed when needed, but administrative staff can continue using the standard Patricia® document tab without needing to learn all the new features. Secure signatures The Patricia® Extended DMS allows application of secure digital signatures. A specified security model ensures that defined templates can only be signed by the person responsible – not by other Patricia® users. EuropE TEl: +46 31 50 77 60 Fax: +46 31 50 77 66 uSa TEl: +1 703 879 48 60 Fax: +1 703 997 25 79 E-mail: [email protected] WEb: www.patrix.com With equal knowledge of IP and IT, Patrix provides world class IP Management Software with proven results. We have over 20 years of experience working with a wide international client base from large law firms and corporations to individual practices and smaller firms. People Moves Industry appointments Theo Savvides has become joint managing partner at Bristows in London. Savvides succeeds corporate partner Iain Redford, who has stepped down from the position after serving for two terms. Redford will return to working in his practice in the technology, media and life sciences sectors. Editor: Mark Dugdale [email protected] +44 (0)203 750 6022 Savvides is an experienced IP litigation specialist and currently serves on the firm’s copyright and digital disputes team advising clients in the media, technology and life sciences sectors. Deputy Editor: Stephanie Palmer [email protected] +44 (0)203 750 6019 He will be working with IT and data privacy specialist and joint managing partner Mark Watts in his new role. Watts said: “Savvides has a clear understanding and appreciation of our unique firm culture while also bringing a fresh perspective of the market.” Reporter: Tammy Facey [email protected] +44 (0)203 750 6017 K&L Gates has added Steven Caponi as partner in its cyber security and intellectual property litigation practices. Contributors: Becky Butcher and Drew Nicol [email protected] He joins K&L Gates from Blank Rome, where he was chair of the cyber security and data privacy practice. Associate Publisher: Carlos Northon [email protected] +44 (0)203 750 6023 Caponi focuses his litigation practice on a broad range of corporate and intellectual property matters, including patent infringement, cyber security and data privacy. Account Manager: Clinton Hanson [email protected] +44 (0)203 750 6025 Caponi’s representative matters have included obtaining a successful defence verdict for what the firm calls “the world’s largest social networking site” in a patent infringement action filed in Delaware. Publisher: Justin Lawson [email protected] +44 (0)203 750 6019 Marketing Director: Steven Lafferty [email protected] Scott Waxman, administrative partner of the firm’s Wilmington office, said: “We are thrilled that Steve Caponi is joining us so that our clients across the K&L Gates global platform can realise the full benefit of having an office in Delaware.” Designer: John Savage [email protected] +44 (0)203 750 6021 Richard Hooper is stepping down from his role as chairman of the foundation behind UK licensing initiative the Copyright Hub. Recruitment Manager: Chris Lafferty [email protected] +44 (0)208 663 9624 Hooper will stand down from 1 May. He will hand the role to Mark Bide, the current adviser to the foundation’s board. Office Manager: Chelsea Bowles [email protected] +44 (0)203 750 6020 The Copyright Hub has asked Hooper to become honourary president of the foundation, which he has accepted. Hooper said: “It has been an extraordinary time leading the Copyright Hub Foundation as it has built the foundation of a technology platform that will make licensing easier and cheaper for all creators and rights holders.” Office fax: +44 (0)20 8711 5985 Stay connected with IPPro The Internet on Twitter, Facebook and LinkedIn Bide said he was honoured to be asked to replace Hooper. “Succeeding Hooper will be no easy task.” Published by Black Knight Media Ltd Dominic Young, CEO of the Copyright Hub, said: “It has been a pleasure to work with Hooper over the past few years to get the Copyright Hub in the position it is in today.” Provident House, 6-20 Burrell Row Beckenham,BR3 1AT, UK Company reg: 0719464 “I am delighted that he will continue to be involved in the future.” IPPro Copyright © 2016 Black Knight Media Ltd All rights reserved Have an industry appointment to shout about? Let us know via: [email protected] 38 J. Varbanov & Partners European and Bulgarian Patent & Trademark Attorneys One of the oldest and leading IP companies in Bulgaria Professional, cost effective services and quality advices Areas of practice: *IP Protection *IP Enforcement *Anti-counterfeiting *Litigations *Domain name registrations *IP watches PO Box 1152, BG-1000 Sofia, Bulgaria South Park Complex, bl.1A, 2nd fl., BG-1421, Sofia, Bulgaria Tel.: (+359 2) 986 51 25, Fax: (+359 2) 980 32 47, e-mail: [email protected] www.jvpatents.com