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Publishing Law Newsletter - Edition 3 Date: 02/11/2007

Publish and be damned!
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Only a week after our last newsletter the Hamilton Advertiser made history for attracting the first PCC ruling on audio-visual content for its mobile footage recorded at the John Ogilvie High School – and yes the central issue was once again privacy. In another example of the influence of digital technology, new US comic book Thunder Road was released exclusively through mobile phone networks. With the exploitation of illustration works firmly in mind we revisit the default legal framework for the ownership of commissioned works.

Meanwhile, as Graeme McLagan and Orion were vindicated as an example of responsible journalism for exposing “Bent Coppers” two freelance journalists found themselves in court on criminal charges relating to their investigations into the foot and mouth outbreak. Below we examine new criminal legislation amending the Public Order Act that might impact the publishing sector.

The criminal law does not always help in the fight against counterfeiters and it is always disappointing when the authorities gather information investigating allegedly unauthorised activity only to abandon the investigation and stockpile all that useful evidence. Under amends to existing legislation private litigators may be able to require access to records held by various public bodies. We take a quick look at the key changes being made.

Finally, every new website and content creator appears to want to register his own trade mark so, as the registers keep on expanding, we look at the interrelationship of trade marks and book titles and review the circumstances in which you can refer to someone else’s registered mark without their permission.

Please let us know if there are any other issues that you would like us to look at in future editions of this Newsletter or let us have your thoughts on some of these issues.

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In this edition we examine the following topics.
Book Titles and Trade Marks
Stirring up Religious Hatred
New Sources of Information
Copyright in commissioned illustrations
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Book Titles and Trade Marks
In the search for a pithy, apposite book title it is sometimes appealing to reference or parody a well-known brand, phrase or name but will this cause a problem if that name is a registered trade mark? Conversely, what should your response be if someone complains that the book title you thought so original and snappy is in fact a registered trade mark? There is no new law in this area but we have advised on it several times recently and thought it a topic worth revisiting.

We are only concerned here with registered trade marks which are governed by the Trade Marks Act 1994. There have been several cases touching on the topic of book titles and trade marks. The most widely cited of those cases centred around a book about the band Wet Wet Wet. The band name was a trade mark registered in relation to, amongst other things, books. The defendant intended to publish a book entitled "Wet Wet Wet - A Sweet Little Mystery". This was an unauthorised biography about the band. The band wanted to prevent publication under this title saying it infringed their trade mark. The defendant argued that the name of its publishing company was clearly displayed on the book and that company's name was the trade mark which was applied to the book. Put another way, they argued that the manner in which the book was presented did not give rise to the inference that the words Wet Wet Wet were being used "as a trade mark" therefore there was no infringement.

The judge did not accept the defendant's argument but nevertheless allowed them to publish their book for a different reason. His reasoning was as follows: A word such as 'wet' may be used in ordinary language, even repeatedly, without amounting to trade mark use (that was not true of all trade marks as some were made-up words and had no ordinary language meaning). However, the use in the book title was plainly use of the band's name which was a registered mark. The fact that its use was descriptive of the contents of the book (rather than indicating the publisher/source of the book) did not mean it was not used "as a trade mark" which was capable of infringing the registered trade mark.

Whilst on the face of it the title of the book infringed the trade mark there was a get out for the defendant. The Trade Mark Act provides that a registered trade mark is not infringed by use (amongst other things) of an "indication concerning the characteristics of goods". The judge deliberated for some time on whether or not use of the book title fell within this exemption but he finally decided that the defendant had used the trade mark Wet Wet Wet to describe the characteristic [of the contents] of the book and therefore there was no infringement.

This case appeared to give the green light to the use of registered trade marks in the title of unauthorised biographies about the proprietor of the trade mark. But that is not the end of the issue. In a 2003 case touching on this subject matter in the context of criminal proceedings, the House of Lords said that disputes about books and registered trade marks "could not easily be resolved by a single test" which effectively means that the Wet Wet Wet case cannot be wholly relied upon. Further decisions have suggested that the Wet Wet Wet trade mark might not even have been valid in terms of its registration in respect of books.

So what about the inadvertent inclusion of a trade mark in your book title? Following the earlier reasoning, if you are using words in a combination, which has ordinary English meaning, and not in a way that is a reference to the trade mark proprietor then this should not amount to infringement of the registered trade mark.

The outstanding area of uncertainty is in circumstances where you make a reference to a trade mark which is gratuitous and bears no reference to the content of the book. For example, "The Spice Girls Ate My Homework" for a fictional story which does not feature the Spice Girls might pose quite a dilemma. It is clearly a reference to the band and therefore their trade mark which, on the Wet Wet Wet analysis, amounts to trade mark use. It is not descriptive of the characteristics of the books so doesn't fall within the exemption so is it infringement?

In cases since Wet Wet Wet opinions have varied as to whether or not "trade mark use" is in fact an essential pre requisite to the finding of trade mark infringement. One question that is frequently preferred in analysing whether infringement has taken place is whether the use of the words complained of damages the "essential function" of the registered trade mark i.e. the ability to distinguish goods. The answer to that question is almost always a matter which turns on the evidence of use in a particular case. In the Spice Girls example you are quite likely to find lawyers’ opinions divided as to whether it is an infringement.

So what practical tips can we draw from the present landscape of cases?

1. If you are referencing a band, brand or name in your title, check the trade mark register.

2. If the name is registered, are you genuinely using it to describe the book’s contents? If not, reconsider.

3. Are you trying to provoke interest by referencing a trade mark even though it is unconnected to the book? If so, consider how you will justify this.

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Stirring up Religious Hatred

On 1 October 2007 the Racial and Religious Hatred Act 2006 came into force. The Act amends the existing Public Order Act 1986. It creates a new criminal offence of stirring-up hatred against a person on the grounds of their religious belief (or lack of belief). The offence may be committed by individuals and by corporations whose directors or other officers consent or connive in such activity. Offences may be punished by fines, or a prison sentence of up to 7 years. The Act makes it clear that it applies to the publication of written material or audiovisual footage as well as other activity but is it something that the publishing industry needs to be concerned about?

The new criminal offence is one of intent and only applies to someone who uses words or behaviour, or displays, publishes or distributes material that is threatening and thereby intended to stir up religious hatred or who possesses inflammatory material (written or recorded) intending it to be displayed, published, distributed, shown, played or included in a programme service for that purpose.

It should also be noted that in response to the high profile campaign for free speech led by actor Rowan Atkinson, the Act contains a wide exemption to protect freedom of speech. The exemption permits discussion, criticism or expressions of antipathy, dislike, and even ridicule of religions or the beliefs or practices of their adherents, or of any other belief system or the beliefs or practices of its adherents. As a consequence the traditional publishing industry should rarely need to confront the detail of the Act in making decisions as to whether to publish material.

The new offence will be of greater concern to online publishers and in particular those who host blogs, wikis or other user generated content. The Electronic Commerce Directive (Racial and Religious Hatred Act 2006) Regulations 2007 also came into force on 1 October 2007. The Regulations provide that an ISP established in the UK can commit an offence under the Act in any European member state. However, a non-UK service provider established in a European member state is only able to commit an offence under the Act if certain conditions are satisfied. There are exceptions for businesses when they are acting as mere conduits or offering caching or hosting services. It is therefore important for online publishers, particularly those hosting user generated content, to build into their content standards or their user terms and conditions appropriate wording to deal with relevant material and to promptly review any complaints that might fall within the provisions of the new offence.

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New Sources of Information
As of 1 October 2007 public bodies are permitted to release certain information to IP owners for the purpose of enforcing or protecting IP rights.

This new legislation could make bringing civil actions against those who infringe copyright or other intellectual property easier. Websites such as eBay and Amazon have been notoriously reticent to release personal information about their users without a court order compelling them to do so, which has meant that IP owners often have been unable to bring proceedings for infringement for the simple reason that they have not known exactly who was behind an online identity. Now, if a public body such as Trading Standards has obtained information which could assist an IP owner in a civil action against infringers, it is authorised to release that information to IP owners and their representatives.

There are, of course, limits to how far these new provisions go, for example:

  • certain information is excluded. There are various categories of information which will not be obtainable under the new legislation, for example information obtained in the course of a Competition Commission investigation, or information the Revenue has obtained by exercise of their functions in relation to Customs and Excise and VAT.
  • the power to release such information is discretionary (however it has to be exercised in good faith to help IP owners enforce their rights); and
  • data protection and freedom of information laws still apply.

Despite these restrictions, public bodies have a duty to disclose such information where there is a genuine interest to protect and the information is relevant to the rights being to be enforced, unless there is a legally proper reason to deny disclosure.

This may be a small step in the battle against counterfeiting and it remains to see just how liberally public bodies interpret the new provisions but it does promise the potential for time and cost savings for those seeking to protect investment in our creative industries.

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Copyright in commissioned illustrations
Even in industries founded on copyright there is often misunderstanding over the ownership of copyright in commissioned work. This is all the more surprising in the publishing sector in a climate in which character merchandising continues to increase. It is increasingly important to be clear on who owns the rights to illustrations and more specifically to the underlying characters. The best practice is to always ensure that ownership of copyright is dealt with either by a written assignment or an exclusive licence but what is the default legal position if you don’t have a written agreement?

In all commissions there is almost certainly a legal contract between the parties even if it has not been reduced to writing. If an assignment of copyright has not been discussed then the question to be addressed is whether the law will imply an assignment term into the oral contract. Whether or not such a term will be implied will depend on the factual circumstances of each individual case but we can say that a court will require certain minimum conditions to be satisfied. The implication of such a term must be reasonable and equitable and necessary to give business efficacy to the contract. If the contract is workable without the implied term it will not be implied, and it must be so obvious that ‘it goes without saying’. It must also be capable of clear expression, and not contradict any express term of the contract.

In almost all cases to date the courts have concluded that an assignment is not necessary to make a contract workable when there is the alternative mechanism of a licence. The holder of an exclusive licence does have the right to sue for infringement of his licensed works and this has been a factor in the courts deciding to exercise minimal interference with rights ownership. The recent case of Wrenn v Landamore [2007] EWHC 1833, re-affirmed that a ‘minimalist approach’, i.e. preferring an implied licence over an implied assignment, should be taken.

Whilst this default position does at least ensure that the commissioner without a written contract has the benefit of partial rights in his paid-for works it is far from ideal. An exclusive licensee will usually have to join his licensor as a party to any infringement action with possible costs consequences. Furthermore, the defendant to such an action may also have been purportedly granted a licence to the copyright by the owner, where then do both parties stand? The only remedy for either licensee in those circumstances is to sue the copyright owner for breach of contract. One unappealing consequence of this is that the licensees may be unable to stop each other from using the copyright material, even if they believe that they hold an exclusive licence. These types of problem may be exacerbated if the copyright owner assigns the copyright to an assignee without notice of the licence.

If this is not incentive enough to put in place proper written assignments of rights then consider the case of ownership of character rights. If you have commissioned illustrations you may at least have half an eye on entering into various onward deals for the exploitation of the characters expressed in those illustrations. An implied licence in relation to specific works is unlikely to deal with the underlying rights to the expression of a character and only a comprehensive written assignment can guarantee proper control for the commissioner. Returning to an illustrator for a total buy out once characters have become established and valuable will naturally be far more expensive than agreeing the fee upfront.

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Nicola McCormick and Catherine Fehler

http://www.simkins.co.uk/LegalServices/Publishing.aspx



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