Trademarks, Incorporation, FTC Regs and More

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Excerpts from "Trademarks, Incorporation, FTC Regulations and More" presented December 8, 2010 at AffCon-Miami

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Trademarks, Incorporation, FTC Regs and More

  1. 1. INTERACTIVE LEGAL CLINIC<br />Trademarks, Incorporation, FTC Regulations and More<br />December 8, 2010<br />AffCon – 2010 Miami<br />Presented by the Internet Law Center and Venable <br />
  2. 2. 15 Things Every Affiliate Should Know to Avoid Legal Liability<br />
  3. 3. PRESENTED BY<br />TEXT<br />Brian Benenhaley<br />Columbia, SC<br />Thomas A. Cohn<br />New York, NY<br />TEXT<br />Bennet Kelley<br />Santa Monica, CA<br /> Ari N. Rothman Washington, D.C.<br />
  4. 4. CORPORATE FORM LIABILITY <br />2.    AFFILIATE LIABILITY  <br />3.    TRADEMARK RIGHTS <br />4.    COPYRIGHTS RIGHTHAVEN <br />5.    CAN-SPAM  <br />6.    DOT COM DISCLOSURES <br />7.    DECEPTIVE FORMAT <br />8.    BLOGGER RULE <br />9.    ENDORSEMENTS<br />10.   PRODUCT CLAIMS <br />11.    PROMOTIONS <br />12.    NEGATIVE OPTIONS <br />13.    PRIVACY <br />14.    USE OF WORD FREE<br />15.    GOLDEN RULE THE ENDTHANK YOU FOR COMING<br />THE BIG 15<br />
  5. 5. #1 CORPORATE FORM LIABILITY<br />A<br />B<br />
  6. 6.
  7. 7. THE BASICS<br />
  8. 8. TM ISSUES IN AFFILIATE CAMPAIGNS<br />likely to cause confusion, or to cause mistake, or to deceive as to <br />the affiliation, connection, or association of such person with another person, <br />or as to the origin, sponsorship, or approval of his or her goods, services,<br />
  9. 9. Trademarks and domain names<br />Cybersquatting<br />Legitimate Use<br />Fans and Enemies<br />
  10. 10. Key word search and trademarks<br />Initial Interest Confusion<br />Use of another trademark “in a manner calculated to capture initial consumer attention, even though no actual sale is finally completed as a result of the confusion.”<br />Brookfield Communications Inc. v. West Coast Entertainment Corp., 174 F.3d 1036 (9th Cir. 1999).<br />B Tal<br />10<br />
  11. 11. TM Use Limited to Search Term<br />11<br />
  12. 12. “[A]s a matter of law[bidding on TM without use in ad does] not result in any actionable likelihood of confusion under the Lanham Act.”<br />TM Use Limited to Search Term<br />12<br />J.G. Wentworth SSC Ltd v. Settlement Funding LLC, 2007 WL 30115 (E.D. Pa. Jan. 4, 2007) (granting motion to dismiss).<br />
  13. 13. Display of competing search ad which does not mention defendant’s name, “could mislead [a] consumer to believe the link is associated with” Plaintiff.<br />TM Use Limited to Search Term<br />13<br />Morningware, Inc. v. Hearthware Home Products, Inc., 2009 WL 3878251 (N.D. Ill. Nov. 16, 2009)<br />
  14. 14. © - Copyright<br />Righthaven<br />DMCA<br />
  15. 15. #5 – CAN-SPAM ACT<br />
  16. 16.
  17. 17. Principal Requirements<br />
  18. 18. FCC CAN-SPAM RULES<br />Express Prior Authorization<br /><ul><li>Must Specify
  19. 19. Mobile Address
  20. 20. Potential Senders
  21. 21. Potential Charges
  22. 22. Revocable
  23. 23. Must be
  24. 24. Clearly legible,
  25. 25. In sufficiently large type
  26. 26. Separate from other disclosures</li></li></ul><li>KEY DECISIONS<br />State Law Preemption<br />Advertiser Liability for Affiliates<br />Courts Reject Faux IASPs<br />
  27. 27.
  28. 28. THE L WORD: LOTTERY<br /><ul><li>A lottery is any scheme for the disposal or distribution of property by chance, among persons who have paid or promised to pay any valuable consideration for the chance of obtaining such property or a portion of it, or for any share or any interest in such property, upon any agreement, understanding, or expectation that it is to be distributed or disposed of by lot or chance, whether called a lottery, raffle, or gift enterprise, or by whatever name the same may be known.
  29. 29. CA Penal Code Sec. 319.</li></li></ul><li>What is Not a Lottery?<br />
  30. 30. STATE REQUIREMENTS<br /><ul><li>Bonding
  31. 31. Florida and New York for games of chance with prizes exceeding $5,000
  32. 32. Bilingual
  33. 33. Puerto Rico</li></ul>Registration<br />Florida and New York if prizes exceeds $5,000<br />Rhode Island if retail establishment offers a prize in a game of chance valued at more than $500<br />Arizona if intellectual skill contest requiring purchase to enter<br />
  34. 34. New California Law on AMOESB 1400 (effective 1/1/09)<br />Must include AMOE disclosure in solicitation material<br />Official Rules<br />Elsewhere if no rules<br />Must be clear and conspicuous statement of the no-purchase-or-payment-necessary<br />In understandable terms<br />The no-purchase-or-payment-necessary message included in the official rules shall be set out in a separate paragraph in the official rules and be printed in capital letters in contrasting typeface not smaller than the largest typeface used in the text of the official rules. <br />
  35. 35.
  36. 36. #13 ONLINE PRIVACY<br />
  37. 37. It’s Really Simple (not)<br />
  38. 38. 3 TAKEAWAYS<br />PRIVACY POLICIES<br />DATA SECURITY<br />WHERE ARE WE GOING<br />
  39. 39. CONSUMERS DON’T READ ONLINE POLICIES<br />By placing an order via this Web site on the first day of the fourth month of the year 2010 Anno Domini, you agree to grant us a non transferable option to claim, for now and for ever more, your immortal soul. Should We wish to exercise this option, you agree to surrender your immortal soul, and any claim you may have on it, within 5 (five) working days of receiving written notification from gamesation.co.uk or one of its duly authorisedminions.<br />
  40. 40. 2 BIGGEST PRIVACY POLICY MISTAKES<br />(1) DON’T USE A PRIVACY POLICY HAND-ME-Down –ONE SIZE DOES NOT FIT ALL(2) SAY WHAT YOU DO AND DO WHAT YOU SAY<br />
  41. 41. DATA SECURITY IS SERIOUS BUSINESS<br />FTC:<br />THE EXISTENCE OF A SECURITY BREACH DOES NOT NECESSARILY MEAN NO ENFORCEMENT ACTION; BUT<br />THE ABSENCE OF A BREACH DOES NOT MEAN NO ENFORCEMENT ACTION IF SECURITY IS STILL INADEQUATE<br />
  42. 42. THE FUTURE<br />2011 – PRIVACY A PRIORITY IN CONGRESS<br />2011 – EU REWRITES PRIVACY LAWS<br />INCREASED STATE REGULATION<br />
  43. 43. #15 – THE GOLDEN RULE<br />
  44. 44. OR DON’T DO ANYTHING THAT WOULD TICK OFF GRANNY<br />
  45. 45. THANK YOU<br />

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