In my last blog I talked a little about copyrights and the First Sale Doctrine.  In this blog, I’d like to go back to Copyrights to discuss Copyright law and the Fair Use Doctrine.

Here is the situation:  Instagram, with over 1 billion monthly uses, has become a common place for individuals and companies to post original stories, pictures, and short videos about the life and business.  Let’s use a video as an example. What is the copyright protection to the creator of the video from Instagram? From other users who see the material? Let’s use a video as an example. What if another user reposts the original post?  Reposts the photo to critique? Uses the video outside of Instagram?

Under copyright law, the creator, unless he assigns his rights to someone else, or creates the video as an employee or “work for hire”, is the copyright owner.  But what happens when he posts that video on Instagram? Well first, under Instagram’s terms of service, Instagram receives a lifetime royalty free license for the video.  Thus if a user merely shares the original post, there will not be any copyright infringement by the user.

What if a user takes a portion of the video and puts it in a new post, with commentary about the video, for the purpose of critiquing it?  Under the Fair Use doctrine in copyright law (17 USC § 107), use “for purposes such as criticism, comment, news reporting, teaching (including multiple copies for classroom use), scholarship, or research, is not an infringement of copyright.”  Thus, a review of the video would not create an infringement. The idea being that the fair use is designed to give the public some information about that video. This is a clear example of “fair use.”

But what if the video is taken down and then a portion of it is reposted on some other medium? Or a portion of it is taken and reposted on another medium for other purposes, or “repurposed” for comparison to a competitor’s goods?   Well, in such situations, the “Fair Use doctrine” may not be so clear. If the use is clearly for commercial purposes, if there is some gain the person using the video, or part of it, then as you might expect, such a usage would probably be found to be infringing.

So, when seeing material on Instagram, unless sharing other’s posts, limit any uses of other’s materials for a specific purpose as outlined in “Fair Use Principles” above, or better yet, consult an attorney before you consider reposting anyone else’s materials.

With the explosion of the Internet and the different media outlets, such as Twitter, Instagram, Facebook, Youtube, Tik-Tok, just to name a few, the issues surrounding copyright ownership and rights have come to the forefront. But these also only reflect long time issues regarding copyright ownership. One such issue is what the doctrine of First Sale.

First, one who creates an original piece of art, such as a photograph, painting or statute, or a story or book, owns a copyright to that work. It is created upon the creation of the work. Unless the individual specifically sells the copyright rights to someone, only that individual has a right to make copies of his work. Most people have a general understanding of this.

Where things can get confusing sometimes is when an individual purchases a book, or a poster, or a piece of art. The question then becomes, what can he do with that piece of work? The obvious answer is that if he purchased that item, whether it is a book, poster or piece of art, he can do whatever he wants with it. Display it in his office, at his home, carry it around in his car and show it to his friends wherever he goes. This is covered in copyright law by what we call, the “First Sale” doctrine. Essentially, the holder of the purchased copy of a copyrighted work has the right to do anything he wants with that copy. However, that’s where his rights end as to the copyrighted work.

In one instance, a client has a poster that he used in his own artwork. His use of the poster in his own artwork is perfectly acceptable. He can sell the artwork as well. However, he cannot take photos of the artwork and then display that artwork on flyers or on his website. This is because his rights do not expand to displays of the poster. He does not have the right to advertise the copyrighted work. And in fact, he has repurposed the copyrighted work, or created what is called a “derivative” work. Without authorization, or proof that he purchased the copyright to the artwork, he cannot therefore otherwise display copies of his artwork in any other medium.

So, be careful what you do with Artwork. But what happens if someone posts a copyrighted work on Instagram and hashtags you on Instagram? And you want to repost it? That is a question for our next blog.

Someone recently asked whether a minor, a person under eighteen years of age, can register a trademark or copyright.  Many answered that there are no federal age restrictions, but there might be restrictions in your state.  Some answered that the minor should incorporate and went on to explain how to go about becoming a shareholder in their state.  All of this is good advice, but we thought we would explain the why in addition to the how.

Can a minor register a trademark or copyright?

The answer is yes, a minor can own a trademark or copyright. There is no age restriction for registering a trademark or copyright.

However, a minor may not be able to enforce a trademark or copyright.  In federal court, a minor needs a guardian to sue for infringement. In most state courts, a minor would also need a guardian to be in charge of the business proceedings involving a trademark or copyright owned by a minor.

When does a minor benefit from incorporating and becoming a shareholder?

Depending on the state, incorporation comes with certain costs.  In California, the tax liability alone is a minimum of $800 annually. As such, we would not recommend just any minor with a copyright or trademark to incorporate.

Having said that, there are instances when incorporating would be beneficial to a minor with intellectual property.  Such instances would include minors who are in business and therefore have business income, earnings, and sales.  If a minor needs to sign contracts in relation to their intellectual property, then it may be beneficial to incorporate so as to protect the minor’s interests.

How does a minor form a corporation in the state of California?

In California, a minor cannot be a Director or officer for a corporation, but a minor of any age can own stocks.  This means a minor can be a majority stock holder in a corporation.

While the age restriction does mean the minor would need another trusted adult to act as an officer for the corporation, it also means that the minor can sue any of the officers as a shareholder.  This is an important protection for the minor in the event an officer or guardian acting as an officer, misuses the corporate funds or intellectual property.

 

Do you have more questions regarding minors and intellectual property? Contact an attorney today!

Definition of a Copyright

Copyright is a form of protection provided by the laws of the United States to the authors of “original works of authorship”, including literary, dramatic, musical, artistic, and certain other intellectual works.  This protection is available to both published and unpublished works.  Section 106 of the 1976 Copyright Act generally gives the owner of copyright the exclusive right to do and to authorize others to do the following:

  • reproduce the work in copies of phonorecords
  • prepare derivative works based upon the work
  • distribute copies or phonorecords of the work to the public by sale or other transfer of ownership, or by rental, lease, or lending
  • perform the work publicly, in the case of literary, musical, dramatic, and choreographic works, pantomimes, and motion pictures and other audio-visual works
  • display the work publicly, in the case of literary, musical, dramatic, and choreographic works, pantomimes, and pictorial, graphic, or sculptural works, including the individual images of a motion picture or other audio visual work
  • perform the work publicly (in the case of sound recordings) by means of digital audio transmission

(17 U.S.C. Section 102)

Who can claim Copyright?

“Copyright protection subsists from the time the work is created in fixed form.  The copyright in the work of authorship immediately becomes the property of the author who created the work.  Only the author or those deriving their rights through the author can rightfully claim copyright.” – 17 U.S.C, Section 201(a)

Term of a Copyright

For works created after 1978, the duration of ownership is for the life of the author(s) plus seventy (70) years after the author’s death.

For works that are anonymous, pseudonymous, or a work made for hire, the period of time is ninety-five years from the date of first publication, or 120 years from the date of creation, whichever is sooner.

Notice of Copyright

The following symbols are used to show copyright:

(c),  © , Copr. or Copyright

Examples:

  • “Copyright 2017 Albert Justin Lum”
  • “Copr. 2017 Albert Justin Lum”
  • “© 2017 Albert Justin Lum”
  • “Copyright © 2017 Albert Justin Lum”

Why Register your Copyright?

Without copyright registration, damages are limited to actual damages.

With copyright registration, one can obtain statutory damages, up to $30,000 per infringement for innocent infringement (“I didn’t know I was violating copyright laws”) to $150,000 per infringement for willful infringement (“Copyright? Who cares!) as well as attorney fees; and injunctive relief.

What does “Work for Hire” mean?

A “work made for hire” is–

  • a work prepared by an employee within the scope of his or her employment; or
  • a work specially ordered or commissioned for use…
    • as a contribution to a collective work,
    • as a part of a motion picture or other audiovisual work,
    • as a translation,
    • as a supplementary work,
    • as a compilation,
    • as an instructional text,
    • as a test,
    • as answer material for a test, or
    • as an atlas,
  • if the parties expressly agree in a written instrument signed by them that the work shall be considered a work made for hire.
  • For the purpose of the foregoing sentence, a supplementary work” is a work prepared for publication as a secondary adjunct to a work by another author for the purpose of introducing, concluding, illustrating, explaining, revising, commenting upon, or assisting in the use of the other work, such as forewords, afterwords, pictorial illustrations, maps, charts, tables, editorial notes, musical arrangements, answer material for tests, bibliographies, appendixes, and indexes, and an “instructional text” is a literary, pictorial, or graphic work prepared for publication and with the purpose of use in systematic instructional activities.

(17 U.S.C, Section 201(b))

Bottom line, if you hire an independent contractor to create something for you, make sure there is an agreement that whatever is created is made as “work for hire” and the owner of the copyright will be you.

 

Not sure if you should be registering a copyright? Perhaps you’re worried about breaking copyright laws? Read more on how we can help your business with intellectual property!

Intellectual property (IP) refers to creations of the mind: inventions, literary and artistic works, and symbols: names, images, and designs used in commerce.

IP is divided into two categories:

  1. Industrial property, which includes…
    1. inventions (patents),
    2. trademarks,
    3. industrial designs, and
    4. geographic indications of source;
  2. Copyright, which includes…
    1. literary and artistic works, such as
      1. novels,
      2. poems,
      3. plays,
      4. films,
      5. musical works,
      6. artistic works, such as
        1. drawings,
        2. paintings,
        3. photographs and
        4. sculptures,
    2. architectural designs.

Think of intellectual property as the “sword and shield” against your business competitors. By registering your intellectual property, you’re ensuring your “enemies” cannot take your weapons from you or copy your weapon technology.

 

More on how we can help your business secure your intellectual property!

Our intellectual property attorney, A. Justin Lum, was interviewed by Steve Thompson, writer of 245 Days to Go, a blog for small business and startup entrepreneurs and Contented Writing.

One of the biggest issues for a startup business is protecting your ideas. Every startup is built on the solid foundation of an idea and the passion of an individual. We can all see a niche in the market or something that has never been tried before. As an entrepreneur, you look to develop what you offer every day so customers can see your product or service and flock to you. This is how success is made.
But without the proper protections in place, you are vulnerable to other businesses and unscrupulous operators. Something needs to be done. Don’t worry – there is help at hand.

Do you or your company make designs that are used in fabrics for sale to companies that export to the United States either fabric, or finished clothing companies in the United States?  Or are you a buyer of designs made by people outside the U.S.?  What you may not realize is that there may be companies in the United States that see those same designs and are then making slight variations of those designs and then registering copyrights in the United States on those variations to then accuse the imported fabrics of infringing the variations.

This may impact your company’s ability to sell fabric and/or garments in the United States.

How can you prevent this from happening?  By filing a U.S. copyright registration first.  Our office can help you to register copyrights for your designs in the United States.  This will not only protect your designs from being copied by companies in the United States, but provide assurances to your buyers in the United States and enhance your company’s reputation within the industry drawing companies to use your copyrighted designs because they know they are protected in the United States.  Contact us so we can determine what is the best and most economical way to protect your intellectual property.