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Trends in Entertainment, Media, and IP Law #2

Litigation Trends in Social Media, Music, and Video Streaming:

  • The Most Litigious Firms in Copyright Law Are Boutiques. Small boutique firms (specializing in a certain area such as photojournalism, fashion, and the internet) filed the most copyright lawsuits during the second quarter of 2017. Between April 1 and June 30, Liebowitz Law Firm filed 113 new copyright cases, the most by a single firm. Doniger Burroughs came in second place with 83 new lawsuits this quarter. Doniger has filed at least 40 new copyright lawsuits each quarter for the last two and a half years. Lonstein Law Office came in sixth place with 14 new copyright lawsuits that all alleged bars had illegally shown UFC matches.
  • Paparazzi Plaintiffs Sue Celebrities for Instagram Posts. Celebrities and their social media accounts are being targeted by a string of paparazzi plaintiffs who are suing the celebs for posting photos of the themselves that were candidly taken by the paps. Diddy recently settled an infringement suit brought against him for posting a picture on his Instagram account. The paparazzi plaintiff took the photo of Diddy at the opening of a Harlem charter school. A paparazzi plaintiff also sued Khloe Kardashian after she posted a picture of herself on her Instagram account that the pap had captured of Khloe and Kourtney Kardashian eating out in Miami.
  • Artists Advised Not to Reveal Inspiration behind New Songs. After Pharrell Williams said he was “channeling … that late 70s feeling” of Marvin Gaye’s music which played a pivotal role in William’s younger years, Gaye’s estate was awarded $7.3 million for copyright infringement in Robin Thicke and Pharrell Williams’ “Blurred Lines.” Industry leaders and agents are cautioning artists not to publicly declare the inspirations behind their latest music, out of fear that “inspiration can [now be interpreted as] a catalyst for infringement.” Other artists are required to sign contracts that reveal their inspirations to the record labels, which use those lists to research potential infringement claims before they happen.
  • Beware of the Newest Way to Illegally Stream Content. Mobdro is the one of the latest streaming services that facilitates infringement by directing users to a trove of illegal live and on-demand television shows, movies, and sporting events. While the app isn’t available in the app store, in-the-know users are able to install the app for free online in order to play content directly on their TVs through Google’s Chromecast or Amazon’s Fire TV Stick. The new app has been frequently compared to Kodi, another streaming service that has been the subject of numerous lawsuits.

Policy Trends in Entertainment, Media, and Intellectual Property:

  • Google Influences Policy by Paying Professors for Research. Drawing on a list of IP academics, Google paid between $5,000 and $400,000 for hundreds of research papers that the tech giant then cited in its fight against regulations. Google made the payments either directly or through the think tanks it funds. Some professors gave Google a degree of editorial oversight, allowing the company to review the work and offer suggestions before publication. The professors argue that disclosing research to the company before publication ensures accuracy. Additionally, Google told professors that it appreciates attribution or acknowledgement of its financial support. However, many professors did not disclose their financial incentives. Google argues that it values the independence and integrity of universities, and simply supports IP and tech researchers in hopes of amplifying voices that argue for an open internet. Other tech giants have also paid professors for research. In fact, Microsoft, Qualcomm, Verizon, and AT&T have all paid for negative research on Google. Some have compared this new trend in the tech industry to Big Tobacco’s funding of questionable research into the dangers of smoking.
  • U.S. Tech Companies Unite in Support of Net Neutrality. On July 12, tens of thousands of tech companies and websites protested proposed changes to net neutrality rules in the United States during the Internet-Wide Day of Action to Save Net Neutrality. Sites including Facebook, Netflix, Twitter, Reddit, Amazon, and OkCupid participated by displaying banners or videos and by promoting hashtags or other media to incite their users to oppose the new administration’s attempts to overturn the Obama-era regulations on internet fast-lanes. Other companies including internet service providers like AT&T and Verizon voiced support for net neutrality while opposing the 2015 regulations.
  • “Right to Repair” Bills. Repair rights advocates argue that corporations are abusing copyright law to prevent third-party mechanics from fixing their products. Specifically, The Repair Association takes issue with companies that use the DMCA’s anti-circumvention provision to prevent mechanics from fixing smart machines, since doing so often constitutes a hack punishable by hefty fines and prison time. This leaves customers with only two options: return to the manufacturer for an expensive repair or buy a new device. The point of contention frequently comes down to whether users are owners or licensees of the products – usually, you own the hardware but license the smart software. Twelve states are currently considering “Right to Repair” bills which would require manufacturers to sell parts and manuals to be used by third-party mechanics. On the national stage, the You Own Devices Act, which was introduced to Congress in February, would extend the first sale doctrine to software, by restricting a company’s ability to prevent their customers from reselling or leasing their products. Customers would be able to transfer the licenses of any software on their devices to the new owner.
  • New Bills would have Major Impact on Music Industry if Passed. Congressional representatives have introduced or reintroduced multiple bills that seek to make copyright law apply more evenly and equally across the many different entities in the music industry. Here is a brief look at some of the most important aspects of these pending bills:
    • Fair Play Fair Pay Act of 2017. In an attempt to make copyright law apply to traditional broadcast radio stations as it does to digital streaming services, this bill would require terrestrial stations to pay royalties to copyright owners by giving copyright owners a new exclusive right to perform or authorize the performance of a sound recording by means of any audio transmission. The bill was previously introduced in 2015, but failed to pass after extensive lobbying by the radio industry.
    • Performance Royalty Owners Music Opportunity to Earn Act of 2017. In a different approach to a similar issue, this bill would require terrestrial radio stations to secure permission to use an Artist’s song. While the bill does not change the royalty landscape, Congressman Issa explained that the bill “calls the bluff of both sides in a debate over performance rights” by allowing artists to pull their songs from radio and miss out on the “exposure and promotional value” of radio air time.
    • Compensating Legacy Artists for their Songs, Service, and Important Contributions to Society Act. Terrestrial radio isn’t the only free-riding target that Congress has its sights set on. This bill would require streaming services to pay a royalty for pre-1972 songs, by applying existing law to songs created before February 15, 1972 in the same way that it is applied to songs created after that date.
    • Allocation for Music Producers Act. This bill would amend Section 114 of the Copyright Act to grant music producers a new right to be compensated for their recordings through the letter of direction process.
    • Register of Copyrights Selection and Accountability Act of 2017. Under current law, the Librarian of Congress has the authority to appoint a Register of Copyrights. The bill seeks to make the position a presidential appointment subject to Senatorial confirmation and limited to a renewable ten-year term. While the position has no power to make law, anyone appointed plays a signification role in shaping copyright policy – a role that expands under this bill.
    • Copyright Office for the Digital Economy Act. Similarly, this bill would make the position of Register a presidential appointment, however the position would not be renewable. This bill also seeks to move the Copyright Office away from the Library of Congress to a more independent position.

About: DJ turned JD highlights the latest legal updates in the entertainment and media industries, intellectual property, the internet and social media. The blawg is compiled and curated by Bobby Desmond. After working as a radio personality, Bobby enrolled in the University of Florida Levin College of Law with hopes of pursuing an in-house legal career at an entertainment or media corporation. He has held legal internship positions at PBS with America’s Public Television Stations in Arlington, VA and at AMC Networks in New York, NY. He expects to graduate in May 2018.