This presentation, brought to you by Chicago's leading Entertainment Law firm, is geared for in-house counsel tasked with managing a broad range of IP, marketing, branding and promotions efforts.
2. OVERVIEW
Tech is transforming the way that people interact:
How Companies Engage in Bus. Dev.
How We Grow & Maintain Relationships
Empowers Individual Consumers
Consumers Impact Business Decisions
Leavens, Strand, Glover & Adler
3. KEY AREAS
Digital Marketing & Advertising Channels Present New
Challenges:
Reputation Management
Online Comparative Advertising
Marketing Through Social Channels
Use By Celebrities
Endorsements
Mobile Platforms
Marketing to Children
Leavens, Strand, Glover & Adler
4. Reputation Management
Impersonation/Reputational Harm on the Internet
Online imposters, defamers, and infringers, Reviews &
Recommendation Engines
Yelp, Amazon
Be familiar with features, practices, and policies of these
sites.
Preserve objectionable content immediately (e.g.
screenshots)
Delegate responsibility: do not want your CEO or trial lawyer
becoming a witness merely for the purpose of authenticating
Leavens, Strand, Glover & Adler
5. Reputation Management
Social Media: The New Frontier
Reputation can be ruined in minutes
Anonymous/Defamatory/Incorrect/Incomplete
Internal Controls
Who is registering the account? (e.g. summer intern)
Create an Ownership Agreement:
Account log in
Use company email
Social Media policies
Damages: Clay Corp. v. Colter (MA) $700,000
Leavens, Strand, Glover & Adler
6. Online Comparative Advertising
Use of Another’s Trademark in a Manner that is NOT
Infringement
Ebates Performance Marketing, Inc. v. Integral
Technologies, Inc., No. 12-cv-06488-YGR, (N.Dist. CA)
Leavens, Strand, Glover & Adler
7. Online Comparative Advertising
TRO
Irreparable harm to reputation, customer trust & goodwill
Though not discussed, use was “nominative”
No suggestion of affiliation or misrepresentation
Take Aways:
Balance creativity of advertising with facts communicated
Draw clear distinction between Products & Services offered
under your trademarks / your competitor’s trademarks.
Qualitative or Quantitative claims? Must have data and tests
Leading 7th circuit case: Mead Johnson & Co. v. Abbott
Labs., 209 F.3d 1032 (7th Cir., 2000)
Leavens, Strand, Glover & Adler
8. Marketing In Social Channels
Endorsements & Testimonials
October 2009, Updated “FTC’s Guides Concerning the Use
of Endorsements and Testimonials in Advertising.”
Endorsements increasingly used by consumers, experts,
organizations and celebrities in online marketing.
Removed “results not typical” safe harbor
underscored the longstanding principle of disclosing
“material connections”
Leavens, Strand, Glover & Adler
9. Marketing In Social Channels
Seven Step Compliance Plan
1. Personal Opinion: No $ = No Disclosure
2. Sample/Gift: How item or service received
3. Promotional: 1) Existence, 2) Value, & 3) Impact
4. Employment: “material business relationship”
5. Affiliates: Links + Paid referrals
6. Healthcare: safety warnings, side effects, provide official
links
7. Financial Services: NASD, SEC, FINRA - Record Retention;
Suitability; Public Appearances; Third-Party Posts
Leavens, Strand, Glover & Adler
10. Marketing In Social Channels
Celebrity Issues
Right of Publicity
Hart v. EA Sports
Leavens, Strand, Glover & Adler
11. Mobile Platforms
In the digital world, mobile is the new driver of commerce:
Consumers and business are transacting business over mobile devices
New legal issues around advertising, privacy & security
FTC Enforcement:
01/26/2012 - First Workshop on Mobile Payments and Their Impact on Consumers
02/02/2012 - Marketers Warned That Mobile Apps May Violate FCRA
02/16/2012 - First Report On Privacy Questions About Mobile Apps for Children
09/05/2012 - Mobile App Developers Truth-in-Advertising & Privacy Guide
10/10/2012 - Second Report On Privacy Concerns in Mobile Apps for Children
02/01/2013 - Path Consumer Deception In Collecting Personal Information
02/22/2013 - Settlement with HTC America (handsets) Privacy By Design
03/07/2013 - Crack Down on Spam Text Messages
03/08/2013 - Staff Report Examines Growing Use of Mobile Payments
04/17/2013 - First Case Against Mobile Phone "Cramming"
Leavens, Strand, Glover & Adler
12. Marketing to Children
Protect Kids’ Privacy
FTC: “If app is designed for children under 13 or you
know you collect personal information from kids, you
have additional compliance requirements under
COPPA
Applies to Mobile Apps (not just web sites)
Expanded Definition of Personal Information
July 1, 2013
Civil penalties of up to $16,000 per violation
Leavens, Strand, Glover & Adler
13. Conclusion
Rapid Technological Change = Opportunities + Risks
Confusing & changing set of challenges
Complex & inconstant regulatory environment
LSGA focused on the intersection of innovation &
creative content
Successful Marketing & Advertising requires
specialized knowledge beyond basic IP
Leavens, Strand, Glover & Adler