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Online Advertising & Branding Issues
      on the Evolving Internet



   2012 World Technology Law Conference


                               ®
                                       by Erik M. Pelton


  © 2012 Erik M. Pelton & Associates, PLLC. All Rights Reserved.
®




Online Advertising Issues in the United States



 Recent developments in internet law affecting:

  •   Copyrights
  •   Trademarks
  •   Social Media Accounts
  •   Keywords
  •   Legislation
®




                          Copyright


Viacom International, Inc. v YouTube, Inc.,
10-3270-cv, 2012 WL 1130851 (2d Cir. April 5, 2012)

• Litigation revived: Viacom won appeal which overturned District
  Court finding that YouTube was protected under DMCA
• Issues are somewhat moot: case began 5 yrs ago; copyright owners
  now have access to “Content ID” system
• Opens some potential holes in DMCA §512(c) safe harbors, which
  court says would protect YouTube from both direct and secondary
  infringement
• YouTube satisfied most of the 512(c) elements, but if found to have
  failed on one, the defense fails
®




                      Copyright continued

Pinterest

•   Fast growing social media network
•   Already number 3, after Facebook and Twitter?
•   Dealing with complaints from copyright owners that the site/service makes it
    too simple for users to misuse or share copyrighted works
     – Quickly created a tool to allow a site to block users from sharing on
        Pinterest
     – Quickly updated the “Terms of Use” and policies
®




                          Trademarks

As the types of media grow…
  so too do the ways in which trademarks are affected

  • Social media user names
  • Mobile application names
      » see Justin Bieber v. Joustin’ Beaver (RC3, Inc.)


Domain names
  • 2011: .XXX
  • 2012: “.brand” and “brand.TLD”
  • How will brand owners enforce their trademarks?
®




                   Social Media Accounts
• Who owns an account when an employee leaves?
  – Social media network? Employer? Employee?
  – Employment law?
  – Terms of Use?
  – Many potential causes of action

• PhoneDog v. Kravitz, No. C 11-03474 MEJ (N.D. Cal.)
   – Former employer sued employee for keeping Twitter account
     after the employee left
   – Claims that survived Defendant’s motions to dismiss:
       •   intentional interference with prospective economic advantage
       •   negligent interference with prospective economic advantage
       •   conversion
       •   misappropriation of trade secrets
®




                      Keyword Advertising
Rosetta Stone Ltd. v. Google, Inc., No. 10-2007 (4th Cir. April 9, 2012)
 – Appeals court overturned denial of Rosetta Stone’s claims of direct trademark
   infringement, contributory infringement, and dilution
 – Remanded to district court for further proceedings regarding these claims
 – Likely to create a new wave of actions against Google
 – Though many experts still believe it is very unlikely that
   Google will be found liable for trademark infringement
 – Key question in keyword cases: is it a “use in commerce”?


Network Automation, Inc. v. Advanced System Concepts, Inc.,
2011 WL 815806 (9th Cir. March 8, 2011)
 – Network Automation sought Declaratory Judgment of non-infringement
 – Defendant counterclaimed and rec’d injunction preventing purchase of keyword
   advertising for “Active Batch”
 – Court said that buying keywords is a trademark “use in commerce”
 – Ninth Circuit reversed preliminary injunction and remanded to District Court, noting
   that keyword purchase was not inherently a trademark infringement
®




                     Legislative Issues

After SOPA & PIPA (PROTECT IP ACT), what is next?
    Congress was truly surprised by the attention and resistance
      received
    Congress likely to re-visit issue: helping brand and website owners
      combat infringements and counterfeits in a quicker, cheaper
      manner than litigation
    New bill: CISPA
    However, election year in US
®




                            Conclusion:
• Expansion and growth of online media continues to bring new
  challenges intellectual property law

• 2012 will continue be another active year for developments related
  to online advertising




                          www.ErikPelton.com




                 NOT INTENDED AS LEGAL ADVICE
        © 2012 Erik M. Pelton & Associates, PLLC. All Rights Reserved.

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Online Advertising & Branding Issues on the Evolving Internet

  • 1. ® Online Advertising & Branding Issues on the Evolving Internet 2012 World Technology Law Conference ® by Erik M. Pelton © 2012 Erik M. Pelton & Associates, PLLC. All Rights Reserved.
  • 2. ® Online Advertising Issues in the United States Recent developments in internet law affecting: • Copyrights • Trademarks • Social Media Accounts • Keywords • Legislation
  • 3. ® Copyright Viacom International, Inc. v YouTube, Inc., 10-3270-cv, 2012 WL 1130851 (2d Cir. April 5, 2012) • Litigation revived: Viacom won appeal which overturned District Court finding that YouTube was protected under DMCA • Issues are somewhat moot: case began 5 yrs ago; copyright owners now have access to “Content ID” system • Opens some potential holes in DMCA §512(c) safe harbors, which court says would protect YouTube from both direct and secondary infringement • YouTube satisfied most of the 512(c) elements, but if found to have failed on one, the defense fails
  • 4. ® Copyright continued Pinterest • Fast growing social media network • Already number 3, after Facebook and Twitter? • Dealing with complaints from copyright owners that the site/service makes it too simple for users to misuse or share copyrighted works – Quickly created a tool to allow a site to block users from sharing on Pinterest – Quickly updated the “Terms of Use” and policies
  • 5. ® Trademarks As the types of media grow… so too do the ways in which trademarks are affected • Social media user names • Mobile application names » see Justin Bieber v. Joustin’ Beaver (RC3, Inc.) Domain names • 2011: .XXX • 2012: “.brand” and “brand.TLD” • How will brand owners enforce their trademarks?
  • 6. ® Social Media Accounts • Who owns an account when an employee leaves? – Social media network? Employer? Employee? – Employment law? – Terms of Use? – Many potential causes of action • PhoneDog v. Kravitz, No. C 11-03474 MEJ (N.D. Cal.) – Former employer sued employee for keeping Twitter account after the employee left – Claims that survived Defendant’s motions to dismiss: • intentional interference with prospective economic advantage • negligent interference with prospective economic advantage • conversion • misappropriation of trade secrets
  • 7. ® Keyword Advertising Rosetta Stone Ltd. v. Google, Inc., No. 10-2007 (4th Cir. April 9, 2012) – Appeals court overturned denial of Rosetta Stone’s claims of direct trademark infringement, contributory infringement, and dilution – Remanded to district court for further proceedings regarding these claims – Likely to create a new wave of actions against Google – Though many experts still believe it is very unlikely that Google will be found liable for trademark infringement – Key question in keyword cases: is it a “use in commerce”? Network Automation, Inc. v. Advanced System Concepts, Inc., 2011 WL 815806 (9th Cir. March 8, 2011) – Network Automation sought Declaratory Judgment of non-infringement – Defendant counterclaimed and rec’d injunction preventing purchase of keyword advertising for “Active Batch” – Court said that buying keywords is a trademark “use in commerce” – Ninth Circuit reversed preliminary injunction and remanded to District Court, noting that keyword purchase was not inherently a trademark infringement
  • 8. ® Legislative Issues After SOPA & PIPA (PROTECT IP ACT), what is next? Congress was truly surprised by the attention and resistance received Congress likely to re-visit issue: helping brand and website owners combat infringements and counterfeits in a quicker, cheaper manner than litigation New bill: CISPA However, election year in US
  • 9. ® Conclusion: • Expansion and growth of online media continues to bring new challenges intellectual property law • 2012 will continue be another active year for developments related to online advertising www.ErikPelton.com NOT INTENDED AS LEGAL ADVICE © 2012 Erik M. Pelton & Associates, PLLC. All Rights Reserved.