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<title>Techdirt. Stories filed under &quot;contracts&quot;</title>
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<item>
<pubDate>Tue, 21 May 2013 10:05:49 PDT</pubDate>
<title>Kitchen Nightmares Lawyers Threaten Infamous Samy And Amy If They Talk About Their Experience On The Show</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130521/01321523153/kitchen-nightmares-lawyers-threaten-infamous-samy-amy-if-they-talk-about-their-experience-show.shtml</link>
<guid>http://www.techdirt.com/articles/20130521/01321523153/kitchen-nightmares-lawyers-threaten-infamous-samy-amy-if-they-talk-about-their-experience-show.shtml</guid>
<description><![CDATA[ Last week we wrote about the <a href="http://www.techdirt.com/articles/20130515/07262023094/restaurant-facebook-goes-nuclear-facebook-over-reviews-gordon-ramsay-owner-cry-hack.shtml">crazy mess</a> that followed the recent episode of the show <i>Kitchen Nightmares</i> on Fox, in which the star of the show, Gordon Ramsay, actually walked away from Amy's Baking Company, after the owners, Samy and Amy Bouzaglo, didn't take well to any criticism.  After the episode aired, they were further mocked on Yelp and Reddit (Yelp "haters" were a key part of the episode), and there was an explosion of anger on the restaurant's Facebook page, though the couple insists they were hacked.
<br /><br />
Following all of this, however, the restaurant announced that it was doing a grand "re-opening" today, which involved a planned press conference and a <a href="http://consumerist.com/2013/05/20/amys-baking-company-needs-to-hire-30-people-held-weekend-job-fair/" target="_blank">"job fair"</a> to try to hire 30 new workers.  As the show noted, the Bouzaglos apparently have difficulty keeping staff employed for very long.  However, the "press conference" has been <a href="http://www.abc15.com/dpp/news/region_northeast_valley/scottsdale/amys-baking-company-cancels-press-conference-re-opening-still-a-go" target="_blank">cancelled</a>.  The couple claims it had to do with <a href="http://radaronline.com/exclusives/2013/05/amys-baking-company-death-threats-press-conference-canceled/" target="_blank">death threats</a> they received, though it might have more to do with a very different kind of threat: <a href="http://radaronline.com/exclusives/2013/05/kitchen-nightmares-lawyers-threaten-restaurant-owners-amys-baking-company/" target="_blank">a legal threat from the producers of the show</a>, as reported by RadarOnline.
<br /><br />
Lawyers representing the producers of Kitchen Nightmares, Upper Ground Enterprises, sent the couple a letter warning them that talking about the show would be a breach of contract:
<blockquote><i>
We understand that you are planning a public event on May 21, 2013, at which you will discuss your experiences and your "unflattering portrayals" on the show.  If you speak about the show without Upper Ground's and Fox's prior approval, and if you disparage the show, its host, or its producers, you will breach your obligations under Paragraph 10 of your Personal Release and Paragraph 14 of your Participant Agreement.  These agreements prohibit you from speaking publicly about <b>Kitchen Nighmares</b>, other than to acknowledge "the mere fact of your participation in the Series in personal publicity relating to yourself."  Your conduct exposes each of you to liability for liquidated damages of $100,000.
</i></blockquote>
Hmm.  While this is a reminder to be careful about what sorts of gag clauses you sign before you do anything, it still seems like a highly questionable move by the producers.  The more they seek to silence the couple, the more it suggests that perhaps the portrayal wasn't entirely fair.  Meanwhile, the more the couple is allowed to stay in the news, the better one would think it would be for the TV show.  The couple's actions and statements on the episode were absolutely ridiculous and clearly showed a restaurant/ownership not worth patronizing.  Since then, the couple's <a href="http://consumerist.com/2013/05/20/owners-of-amys-baking-company-say-yelpers-are-endangering-their-lives/" target="_blank">confirmed statements</a> (even ignoring the Facebook comments, whether or not you believe they were the result of hackers) concerning Yelp have only served to confirm that the couple can't take any criticism and seem to think that bad reviews of bad food are the world out to get them.
<br /><br />
The decision to call out the gag order in the contract to silence them seems ridiculous by Fox.  Even if the couple trashed the show (as expected), does anyone think that the couple has even the slightest credibility at this point?  No one believes them.  Pulling out the gag order makes the show look like it has something to hide.<br /><br /><a href="http://www.techdirt.com/articles/20130521/01321523153/kitchen-nightmares-lawyers-threaten-infamous-samy-amy-if-they-talk-about-their-experience-show.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130521/01321523153/kitchen-nightmares-lawyers-threaten-infamous-samy-amy-if-they-talk-about-their-experience-show.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130521/01321523153/kitchen-nightmares-lawyers-threaten-infamous-samy-amy-if-they-talk-about-their-experience-show.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>hmmm</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130521/01321523153</wfw:commentRss>
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<pubDate>Fri, 5 Apr 2013 11:52:00 PDT</pubDate>
<title>YouTube Won't Put Your Video Back Up, Even If It's Fair Use, If It Contains Content From Universal Music</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130405/01191322589/youtube-wont-put-your-video-back-up-even-if-its-fair-use-if-it-contains-content-universal-music.shtml</link>
<guid>http://www.techdirt.com/articles/20130405/01191322589/youtube-wont-put-your-video-back-up-even-if-its-fair-use-if-it-contains-content-universal-music.shtml</guid>
<description><![CDATA[ Patrick McKay, who has been a harsh critic of some of YouTube's failings when it comes to the DMCA process and various takedowns, has highlighted a very serious issue with YouTube that has received little attention.  YouTube now admits that, when it comes to some videos that contain content from certain "partner" companies, <a href="http://fairusetube.org/articles/27-youtube-refuses-counter-notices" target="_blank">it won't repost those videos</a>, even if the video uploaders file a counternotice and show that they're relying on fair use.  YouTube claims that it will still keep some of those videos blocked due to <a href="http://support.google.com/youtube/bin/answer.py?hl=en&#038;answer=3045545" target="_blank">"contractual" obligations</a>:
<blockquote><i>
YouTube enters into agreements with certain music copyright owners to allow use of their sound recordings and musical compositions.
<br /><br />
In exchange for this, some of these music copyright owners require us to handle videos containing their sound recordings and/or musical works in ways that differ from the usual processes on YouTube. Under these contracts, we may be required to remove specific videos from the site, block specific videos in certain territories, or prevent specific videos from being reinstated after a counter notification. In some instances, this may mean the Content ID appeals and/or counter notification processes will not be available. Your account will not be penalized at this time.
</i></blockquote>
If this sounds vaguely familiar to something in the past, you may recall that a few years ago, Universal Music and Megaupload got into a bit of a spat when UMG issued a <a href="http://www.techdirt.com/articles/20111209/14234917026/universal-music-issues-questionable-takedown-megaupload-video-that-featured-their-artists.shtml">questionable takedown</a> of a song promoting Megaupload, which featured a ton of big stars singing the praises (literally) of Megaupload.  Megaupload eventually sued UMG, but ended up dropping that lawsuit as a month or so later it had bigger legal issues on its hands, following the US's decision to shut down Megaupload.  But, at the time, Universal Music made a strange claim that it had some sort of <a href="http://www.techdirt.com/articles/20111216/01463417102/explanation-why-umg-may-be-right-that-it-can-pull-down-megauploads-video.shtml">contractual agreement</a> that allowed it take down videos like Megaupload's.  YouTube quickly came out with a statement denying this, but the situations described in McKay's post certainly raise serious questions about this, and clearly suggest that YouTube has made at least some deals that effectively wipe out fair use for some users.  I assume it will surprise next to no one that the key example that led McKay to discover this situation... also involved Universal Music.
<br /><br />
As I noted at the time of that UMG/Megaupload spat that I believed the real issue might be YouTube's contract with Universal Music for Vevo -- and I suspect that's still the case now.  As I said then, part of the "announced" deal was that as part of providing the backend for Vevo, YouTube would transfer over the videos of various UMG artists, such that they appeared exclusively on Vevo.  I suspect that's the same thing happening here.  Because part of the Vevo deal is a promise that Vevo gets exclusive rights to videos involving certain artists' works, it allows YouTube to simply ignore fair use claims from users on such content, and refuse to ever post them again.
<br /><br />
Now, as McKay notes, this is (mostly) well within YouTube's rights.  I remember, a few years back, seeing a discussion on some legal blogs about this question.  The DMCA implies that if you file a legitimate counternotice following a DMCA takedown and <i>if</i> the copyright holder does not take further legal action, the service provider is <i>obligated</i> to put the work back up in no less than 10, but no more than 14 business days.  But, to some extent, that seems questionable. After all, as a service provider, any site has the right to <i>not</i> allow certain content to be published if it doesn't want to.  And yet, if read literally, some could make the argument that the DMCA obligates a service provider to put up content even if it doesn't want to.  As McKay notes, in this manner, the only liability is to the person who filed the counternotice, and any such liability would likely be pretty limited.
<br /><br />
Either way, there's no way to look at this that makes YouTube look good.  Following so soon on our other story about YouTube <a href="http://www.techdirt.com/articles/20130325/12380522458/youtube-terms-use-sweep-results-takedown-fail.shtml">taking down</a> a video on a questionable "terms of service" violation and then refusing to repost the video, it's once again a situation where it seems like YouTube <i>needs</i> to do a much better job handling these situations.  While we obviously don't know the details of the UMG contract, fair use rights <i>cannot be signed away</i>, especially by two third parties.  It would be a shame if YouTube decided that it would arbitrarily give UMG the ability to deny someone's fair use rights in posting a video.<br /><br /><a href="http://www.techdirt.com/articles/20130405/01191322589/youtube-wont-put-your-video-back-up-even-if-its-fair-use-if-it-contains-content-universal-music.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130405/01191322589/youtube-wont-put-your-video-back-up-even-if-its-fair-use-if-it-contains-content-universal-music.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130405/01191322589/youtube-wont-put-your-video-back-up-even-if-its-fair-use-if-it-contains-content-universal-music.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>that's-a-shame</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130405/01191322589</wfw:commentRss>
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<pubDate>Mon, 4 Feb 2013 14:58:39 PST</pubDate>
<title>Investigative Journalist Claims Her Public Tweets Aren't 'Publishable;' Threatens To Sue Blogger Who Does Exactly That</title>
<dc:creator>Tim Cushing</dc:creator>
<link>http://www.techdirt.com/articles/20130203/18510621869/investigative-journalist-claims-her-public-tweets-arent-publishable-threatens-to-sue-blogger-who-does-exactly-that.shtml</link>
<guid>http://www.techdirt.com/articles/20130203/18510621869/investigative-journalist-claims-her-public-tweets-arent-publishable-threatens-to-sue-blogger-who-does-exactly-that.shtml</guid>
<description><![CDATA[ <b>Update</b>:  <i>In case this isn't enough, there's a <a href="http://www.techdirt.com/articles/20130205/11093021889/teri-buhl-responds-to-our-story-still-confused-about-internet-law.shtml">follow up to this story</a>, as Teri Buhl is apparently not a fan of our writeup.</i> 
<br /><br />
Choose your battles carefully. This warning/advice is more relevant than ever in an era of instant feedback, social media and thousands of pages of "relevant results" microseconds away. Here's a small story of how <i>not</i> to deal with a problem caused by your own actions.<br />
<br />
Mark Bennett, a Houston criminal defense lawyer, <a href="http://blog.bennettandbennett.com/2013/02/doin-it-wrong-on-twitter.html" target="_blank">was recently pointed in the direction of a rather inexplicable statement attached to a Twitter profile</a>. Teri Buhl, an investigative journalist specializing in Wall Street, has this wording on her profile page:
<br />
<center><a href="http://blog.bennettandbennett.com/2013/02/doin-it-wrong-on-twitter.html" target="_blank"><img alt="" src="http://i.imgur.com/XHPFIat.png" style="width: 500px; height: 251px;" /></a></center><br />
A friend of Bennett's (<a href="https://twitter.com/gideonstrumpet" target="_blank">@gideonstrumpet</a>) asked, "What does that mean?" Buhl replied:<br />
<br />
<center><a href="http://blog.bennettandbennett.com/2013/02/doin-it-wrong-on-twitter.html" target="_blank"><img alt="" src="http://i.imgur.com/D9uNTLH.png" style="width: 501px; height: 332px;" /></a></center>
<br />
Gideon sensibly replied "<a href="https://twitter.com/gideonstrumpet/status/298075245506592768" target="_blank">ok thanks. I don't know how you prevent that, though. I could write a post quoting you</a>."<br />
<br />
At this point, Buhl went "legal," responding that she would sue him because she "stated" her tweets are not "on record comments." And she certainly could, although one wonders who would take her case. Gideon asked for a few second opinions on the legality of Buhl's claim, and got answers from these two gentlemen whose names are likely familiar to Techdirt regulars, <a href="http://randazza.wordpress.com/" target="_blank">Marc Randazza</a> and <a href="http://www.popehat.com/" target="_blank">Popehat</a>.<br />
<br />
<center><img alt="" src="http://i.imgur.com/YxsegGx.png" style="width: 501px; height: 405px;" /></center>
<br />
So, we have someone thinking their public tweets are private property, and therefore lawsuit-bait if anyone attempts to "quote" them. While Twitter's TOS assures users that their Tweets are <i>their</i> property, it's quite another thing to state something publicly and then claim you don't want it quoted. Would a retweet be a violation of Buhl's statement? After all, it's a "direct quote" originating from another account. What about embedding the tweet? Still a problem? Even if Buhl's claim <i>wasn't</i> baseless, she'd still have a hell of a time enforcing it. If you don't want something you said going public, why on earth would you use a very public platform like Twitter to say it?<br />
<br />
It gets uglier from there, though. Buhl decided to continue her legal threats via email shortly after Mark Bennett posted screencaps of her tweets.<br />
<br />
<center><img alt="" src="http://i.imgur.com/c526foQ.png" style="width: 500px; height: 557px;" /></center>
<br />
This prompted Bennett to do a little digging. For someone who's so concerned with retaining strict control of <i>her</i> information, Buhl certainly doesn't seem to mind throwing around other people's information -- <a href="http://newcanaan.patch.com/articles/disturbing-story-emerges-in-new-canaan-journalist-case" target="_blank">even the contents of a teenage girl's personal journal</a>.
<blockquote>
<i>A New Canaan woman police say posted personal and sexually explicit information on Facebook about her boyfriend's 17-year-old daughter was arraigned Tuesday in state Superior Court on charges of second-degree harassment, second-degree breach of peace and interfering with an officer.</i><br />
<br />
<i>Teri Buhl, 38, of 81 Locust Ave., appeared briefly before Judge Maureen D. Dennis with her lawyer, Christopher W. Caldwell of Norwalk...</i><br />
<br />
<i>Buhl surrendered on Oct. 27 at New Canaan police headquarters after learning that a warrant had been obtained for her arrest. She was released after posting a $5,000 bond.</i></blockquote>
Here's how Buhl allegedly set about "publishing" someone else's much more private "statements:"
<blockquote>
<i>A look at the documents that led to the warrant and arrest tells a disturbing story of Web-based strong-arming and privacy invasion from a woman who knew her victim and attempted to disguise her own identity.</i><br />
<br />
<i>New Canaan police Youth Bureau Commander Sgt. Carol Ogrinc said in an affidavit that the girl and her father, Paul Brody, came to police June 24 to report that someone using the name 'Tasha Moore' had posted personal notes from the girl's journal on Facebook.</i><br />
<br />
<i>The girl said she kept the journal in her dresser drawer in her bedroom, and that she wrote the notes shown on Facebook last April. The girl said she had replied to the e-mail address provided by Moore on her Facebook page, and had told Moore to stop posting personal information about her or she would contact police.</i><br />
<br />
<i>Moore reportedly answered that she welcomed the legal action and knew the girl's father was a corporate lawyer. Moore said she didn't think the girl would contact police because then her father would find out about the embarrassing information from the journal, according to Ogrinc's statement.</i></blockquote>
As Bennett points out, it's apparently OK to publicly post information from a minor's personal journal, but <i>not OK</i> to post a <i>public</i> Teri Buhl tweet anywhere else on the internet.<br />
<br />
Buhl has finally done what she should have done a <i>long time ago</i> and taken her account private. This will likely be the end of this story as Buhl has probably realized she's on very shaky ground. (This belated tweet <a href="http://muckrack.com/tbuhl" target="_blank">captured via her page at Muck Rack</a> seems to confirm this.)
<br /><br />
<center><img alt="" src="http://i.imgur.com/u7zoNAz.png" style="width: 502px; height: 110px;" /></center>
<br />
With <a href="http://newcanaan.patch.com/articles/buhl-harassment-trial-delayed-by-ailing-judge-82a417af" target="_blank">a trial date set for March 22nd</a>, she may not have time to fight another legal battle. Not only that, but if she's going to go after "republishers" like Bennett and Gideon, she's also going to need to free up time to go after less human foes like <a href="http://favstar.fm/users/tbuhl/recent" target="_blank">favstar</a>, <a href="http://topsy.com/twitter/tbuhl" target="_blank">Topsy</a> and <a href="http://twitter.yfrog.com/user/tbuhl/profile" target="_blank">yfrog</a>.<br />
<br />
Here's a suggestion: don't antagonize people by attaching implicit legal threats to your public profile. All it does is attract the kind of attention you <i>don't</i> want -- for instance, another public airing of your alleged illegal actions. It doesn't win you any new friends or followers and it certainly does very little to raise anyone's estimation of you. Instead, it makes you look like exactly what you are -- someone who's going to slip into "sue" mode at the drop of a tweet.<br /><br /><a href="http://www.techdirt.com/articles/20130203/18510621869/investigative-journalist-claims-her-public-tweets-arent-publishable-threatens-to-sue-blogger-who-does-exactly-that.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130203/18510621869/investigative-journalist-claims-her-public-tweets-arent-publishable-threatens-to-sue-blogger-who-does-exactly-that.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130203/18510621869/investigative-journalist-claims-her-public-tweets-arent-publishable-threatens-to-sue-blogger-who-does-exactly-that.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>hubristupidity!</slash:department>
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<pubDate>Tue, 29 Jan 2013 00:01:00 PST</pubDate>
<title>YouTube Stars Fighting YouTube Networks Over Their Contracts</title>
<dc:creator>Timothy Geigner</dc:creator>
<link>http://www.techdirt.com/articles/20130114/11470721663/youtube-stars-fighting-youtube-networks-over-their-contracts.shtml</link>
<guid>http://www.techdirt.com/articles/20130114/11470721663/youtube-stars-fighting-youtube-networks-over-their-contracts.shtml</guid>
<description><![CDATA[ As YouTube becomes more and more popular as a primary entertainment resource, it is going to have many of the same growing pains as traditional entertainment venues. If it can ever get past its <a href="http://www.techdirt.com/articles/20130101/17480121534/pakistan-briefly-raises-youtube-banhammer-reinstates-it-three-minutes-later.shtml">"internet problems"</a>, it can move on to having actual entertainment issues. This means far more fun problems, like agents screwing young stars out of money, networks building contract language to screw young stars out of their artistic freedom, and lawyers threatening to enforce exclusive contracts to screw young stars out of their lives. Are you noticing a theme here? It's going to become increasingly important that formerly amateur YouTube stars read the contracts they sign with a growing number of upstart "YouTube Networks" very carefully, or else they are going to face situations such as we're seeing with Machinima stars, who are shutting down production because they're locked <a href="http://www.laweekly.com/2013-01-10/news/machinima-maker-studios-YouTube/full/">into lifetime and beyond contracts</a> with the multi-channel network.
<blockquote>
<i>Vacas, known online as Braindeadly, has big brown eyes, a fauxhawk, a stubbly goatee and a British accent, discernible as he tells his 40,000 YouTube subscribers goodbye.</i><br />
<br />
<i>"I woke up today hoping to make a video, but I went into a call with Machinima this evening and they said that my contract is completely enforceable. I can't get out of it," Vacas tells the camera. "They said I am with them for the rest of my life &mdash; that I am with them forever. If I'm locked down to Machinima for the rest of my life and I've got no freedom, then I don't want to make videos anymore," he says quietly.</i></blockquote>
<blockquote>
<i>The screen fades to black.</i></blockquote>
Ominous, but not entirely unexpected. Those who make their bones on YouTube and any other new platform that might arise aren't going to have traditional avenues for making sure they know what they're signing. In the case of Vacas, he admits to this explicitly, later stating that he signed his Machinima contract quickly, not realizing they would own the rights to anything he produced on YouTube "in perpetuity, throughout the universe, in all forms of media now known or hereafter devised." Even death would not release Vacas of his contractual obligations. It sucks, but he signed it.<br />
<br />
The point is that in these early days of YouTube channel capitalization, artists need to be very wary of sharks swimming in those waters. As the article points out, this isn't really new, it's just a different venue.
<blockquote>
<i>A recent string of high-profile disputes is prompting comparisons between YouTube networks and the exploitative Hollywood studios of the 1930s and '40s: Both convinced young and naive talent with little leverage to sign contracts that leave them at a disadvantage. For networks, that means contracts that bind creators to them indefinitely, demand rights to their content in perpetuity and take large ownership stakes in any resulting businesses.</i></blockquote>
As ugly as some of these contracts are, as are the intentions of those that wrote them, this should end up working itself out as YouTube matures as a primary entertainment platform. After all, Machinima can have all the dastardly contractual language it likes, but if the artists like Vacas refuse to produce in protest, what good does that do them? Eventually, a middle ground should and will be found.  In the past, if you didn't like the contract offered to you by a major gatekeeper, you were pretty much out of luck.  Today, however, not only are there more providers, but it's not difficult to "go it alone" if you choose such a path.<br /><br /><a href="http://www.techdirt.com/articles/20130114/11470721663/youtube-stars-fighting-youtube-networks-over-their-contracts.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130114/11470721663/youtube-stars-fighting-youtube-networks-over-their-contracts.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130114/11470721663/youtube-stars-fighting-youtube-networks-over-their-contracts.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>read-before-you-sign</slash:department>
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<pubDate>Tue, 8 Jan 2013 16:09:17 PST</pubDate>
<title>ISP Says It's Doing Away With Contract Requirements; Wants People To Pay Them For Offering Good, Reliable Service</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130102/18024421555/isp-says-its-doing-away-with-contract-requirements-wants-people-to-pay-them-offering-good-reliable-service.shtml</link>
<guid>http://www.techdirt.com/articles/20130102/18024421555/isp-says-its-doing-away-with-contract-requirements-wants-people-to-pay-them-offering-good-reliable-service.shtml</guid>
<description><![CDATA[ In this era of mega ISPs and few small or independent options in many regions, it's always nice to learn of smaller ISPs who realize that competing on providing good service is a better strategy for attracting customers, instead of the game the big guys play: lock you into long term contracts knowing they're going to screw you over sooner or later and you'll have no real alternatives so you'll deal with it.  I had that experience myself with both Comcast (who took my service down from 10am to 4pm every day for nearly a month, and each day I'd call and they'd say it was "scheduled maintenance" for that day only, and refused to tell me if any was scheduled for the next day) and AT&#038;T (who signed me up for service, and then cancelled it without telling me because I was too far from the CO).  Eventually I found Sonic.net, who has been wonderful, but they're a local ISP.
<br /><br />
Over in Utah, an ISP called Direct Communications has announced that it <a href="http://blog.directcom.com/2013/01/02/no-contract-required/" target="_blank">no longer requires contracts</a> and instead they want you to sign with them because, you know, they offer <b>a better product</b>:
<blockquote><i>
Over the past couple of years, our non-customers in annual focus groups have told us that the thing holding them back was our contract terms. Many people did not want to sign long-term commitments various reasons&#8212;some did not feel secure in their employment and feared they might not be able to pay for service in a few months; many said they were looking to move out of Eagle Mountain sometime in the coming year; others said they just don&#8217;t like contracts as a matter of principle. We agree&#8212;<b>people should stay with us because we offer the best, most reliable service in Eagle Mountain, and not because we have them locked into a contract</b>. However, until recently, our hands were essentially tied because of NECA and FCC regulation.
</i></blockquote>
As alluded to in that last line, they were limited by regulatory issues that just expired making this more difficult.  While they actually did offer a no-contract option before, for regulatory reasons they had to require a massive installation fee in such cases:
<blockquote><i>
Contrary to some reports, we actually have never required a contact for internet customers. New customers could always choose to forgo a contract term. However, very few people ever chose to sign up without a contract because we have always offered free installation with a 1-year commitment. We previously required a $185 broadband installation fee if new customers did not want to sign a 1-year commitment up front. This was largely dictated by FCC requirements for telecommunications and broadband companies like us. Recently, these regulations have changed to give us more leeway in deciding how to set contract and installation terms.
</i></blockquote>
There will still be an install fee, but it's $75, which is much lower, obviously.
<br /><br />
I have no idea how good the company's service is, but this is the kind of thing you start to see when there's real competition (and less regulatory interference).  It would be nice if more such ISPs were able to exist around the country, but they're still pretty limited, unfortunately.<br /><br /><a href="http://www.techdirt.com/articles/20130102/18024421555/isp-says-its-doing-away-with-contract-requirements-wants-people-to-pay-them-offering-good-reliable-service.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130102/18024421555/isp-says-its-doing-away-with-contract-requirements-wants-people-to-pay-them-offering-good-reliable-service.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130102/18024421555/isp-says-its-doing-away-with-contract-requirements-wants-people-to-pay-them-offering-good-reliable-service.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>what-a-concept</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130102/18024421555</wfw:commentRss>
</item>
<item>
<pubDate>Mon, 3 Dec 2012 05:40:26 PST</pubDate>
<title>Don't Promise $1 Million For Your Lost Laptop Via YouTube &#038; Twitter If You're Not Prepared To Pay</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121129/18272921180/dont-promise-1-million-your-lost-laptop-via-youtube-twitter-if-youre-not-prepared-to-pay.shtml</link>
<guid>http://www.techdirt.com/articles/20121129/18272921180/dont-promise-1-million-your-lost-laptop-via-youtube-twitter-if-youre-not-prepared-to-pay.shtml</guid>
<description><![CDATA[ The Hollywood Reporter has the somewhat amusing 
<a href="http://www.hollywoodreporter.com/thr-esq/r-b-artist-ryan-leslie-395545" target="_blank">cautionary tale of why you shouldn't use various social media tools to make promises you can't back up</a>.  Hip hop/R&#038;B artist Ryan Leslie apparently lost his laptop recently while on tour in Germany.  He then went on YouTube and posted a video offering $20,000 if anyone returned the laptop.  He noted that the laptop contained music and videos that he wanted back.  Another video <a href="http://www.youtube.com/watch?v=F8Jf0huEyNU" target="_blank">was posted later</a> with a message that reads: "In the interest of retrieving invaluable intellectual property contained on his laptop and hard drive, Mr. Leslie has increased the reward offer from $20,000 USD to $1,000,000 USD.  He also tweeted the same info directly, saying: "I raised the reward for my intellectual property to $1mm."
<center>
<iframe width="560" height="315" src="http://www.youtube.com/embed/F8Jf0huEyNU" frameborder="0" allowfullscreen></iframe>
</center>
Then the problem.  A guy named Armin Augstein found the laptop.  And claimed the $1 million.  Leslie refused to pay and everyone went to court.  Leslie, perhaps quite reasonably, noted that the returned laptop was broken such that the hard drive didn't work, and the content he had hoped to retrieve was not available.  According to the judge's account from back in October:
<blockquote><i>
After Augstein returned the laptop and hard drive, Leslie refused to pay the reward because, Leslie alleges, the intellectual property for which he valued the laptop was not present on the hard drive when it was returned. Leslie claims that he and several staff members tried to access the data on the hard drive but were unable to do so. Leslie sent the hard drive to the manufacturer, Avastor, which ultimately deleted the information prior to sending Leslie a replacement. The circumstances of the return of the hard drive and the meaning of Leslie's communications with Avastor are disputed. Augstein claims that Leslie, after he received correspondence from Augstein regarding the collection of the reward, caused the hard drive to be erased.
</i></blockquote>
I can definitely see a reasonable argument that having the laptop returned without being able to retrieve the content shouldn't qualify for the reward (especially since in the initial offer, Leslie specifically called out the value of the "intellectual property" on the laptop as his reason for offering a reward), though the disputed info makes it a bit fuzzy.  Leslie also argued that "a reasonable person would not have understood the mention of the reward to be an offer of a unilateral contract, but instead would have understood it to be an
advertisement&#8212;in essence, an invitation to negotiate."  That seems like a much more difficult argument to make, and the judge, Harold Baer, didn't buy it at all:
<blockquote><i>
A reasonable person viewing the video would understand that Leslie was seeking the return of his property and that by returning it, the bargain would be concluded. The increase of the reward from $20,000 to $1,000,000, the value of the property lost (in particular the unreleased album) and the news reports regarding the reward offer would lead a reasonable person to believe that Leslie was making an offer. As such, the video constitutes a valid offer and summary judgment is granted as to that issue. "[I]f a person chooses to make extravagant promises . . . he probably does so because it pays him to make them, and, if he has made them, the extravagance of the promises is no reason in law why he should not be bound by them."
</i></blockquote>
I can definitely understand why the offer was considered valid, but given how often he specifically called out the content on the hard drive as being what's valuable, why did the judge consider the "offer" to have been met by Augstein?  Because of what Leslie did after getting the laptop back.  The issue here, it seems, is that "Leslie was on notice that the information on the hard drive may be relevant to future litigation and, as a result, had an obligation to preserve that information." And the judge is not at all happy with how he handled the situation:
<blockquote><i>
Whether a party must prove that the destroyed evidence is relevant to a claim or defense depends on the level of culpability. "When evidence is destroyed in bad faith (i.e., intentionally or willfully), that fact alone is sufficient to demonstrate relevance. By contrast, when the destruction is negligent, relevance must be proven by the party seeking the sanctions." ... The contents of the hard drive are undoubtedly relevant, regardless of the culpability. The satisfactory performance of the offer of the reward depends on the return of Leslie's intellectual property.
</i></blockquote>
The judge goes on to point out that, while some of the facts are disputed, there isn't much evidence that Leslie or people who worked with him had Avastor try to recover the data (though other testimony suggests they asked data recovery shops and were told that the data could not be recovered).  Either way...
<blockquote><i>
Based on the foregoing, and the inescapable fact that the hard drive was destroyed when litigation was all but certain, I find that Leslie and his team were at least negligent in their handling of the hard drive.
</i></blockquote>
That's a no-no.
<br /><br />
The jury then took all of this in and came back telling Leslie to pay up the $1 million.  Apparently even they were <a href="http://www.nypost.com/p/news/local/manhattan/rap_slap_kvSTBaoDlN18eNtiOLK72L" target="_blank">conflicted about the amount</a>, but were left with little choice:
<blockquote><i>
The verdict came about 45 minutes after jurors sent out a note saying they were divided because "we feel the $1 million is too high," and asking if they could compromise on a lower amount.
<br /><br />
Leslie's lawyers then sought some time to try to strike a settlement, but Augstein's team said "that ship has sailed" and insisted that the jury be told to continue deliberating toward an all-or-nothing decision.
</i></blockquote>
It seems likely that he'll appeal, but I imagine this story is going to make a fun case study for various lawyers who teach contract law... and for the rest of you, it should be a reminder to be careful what you promise.<br /><br /><a href="http://www.techdirt.com/articles/20121129/18272921180/dont-promise-1-million-your-lost-laptop-via-youtube-twitter-if-youre-not-prepared-to-pay.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121129/18272921180/dont-promise-1-million-your-lost-laptop-via-youtube-twitter-if-youre-not-prepared-to-pay.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121129/18272921180/dont-promise-1-million-your-lost-laptop-via-youtube-twitter-if-youre-not-prepared-to-pay.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>just-saying</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121129/18272921180</wfw:commentRss>
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<pubDate>Thu, 29 Nov 2012 16:04:49 PST</pubDate>
<title>PeopleBrowsr Gets Temporary Restraining Order Against Twitter For 'Felony Interference With A Business Model'</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/innovation/articles/20121129/14255421177/peoplebrowsr-gets-temporary-restraining-order-against-twitter-felony-interference-with-business-model.shtml</link>
<guid>http://www.techdirt.com/blog/innovation/articles/20121129/14255421177/peoplebrowsr-gets-temporary-restraining-order-against-twitter-felony-interference-with-business-model.shtml</guid>
<description><![CDATA[ For years, we've seen so many legal disputes that could be jokingly described as arguing <a href="http://www.techdirt.com/articles/20071004/163314.shtml">"felony interference of a business model"</a> -- a term coined by Steven Bellovin a while ago as shorthand for lawsuits that are much more about a company who bet on the wrong business model, than any actual legal wrongs.  Normally, this relates to legacy companies upset at upstarts who win through the disruptive judo of taking a totally different approach.  But it can be seen in other arenas as well.  We've also talked, for example, about how odd it is that some companies appear to base their entire business on what <i>some other</i> company does -- and they seem wholly unprepared for a situation in which the company they are 100% reliant on changes.  As venture capitalist Fred Wilson has summarized, a good company can't be someone else's <a href="http://www.techdirt.com/blog/entrepreneurs/articles/20110531/01505814470/being-someone-elses-bitch-being-your-own-bitch-making-others-your-bitch.shtml">bitch</a>.
<br /><br />
Both of those concepts seem relevant given the news that a startup called PeopleBrowsr has <a href="http://allthingsd.com/20121128/data-nerds-revolt-peoplebrowsr-takes-twitter-to-court-over-alleged-anticompetitive-actions/" target="_blank">successfully obtained a temporary restraining order against Twitter</a> for changing how it doles out access to its "Firehose" (i.e., the raw stream of all public tweets).  As has been covered widely, over the last few months, Twitter has really clamped down on some of its more open practices lately.  I actually agree with many people that I'm not sure this is a smart long-term business move, but I can't see how it could possibly be a legal violation.  Yet, that's what PeopleBrowsr appears to be claiming.  Of course, its Firehose offering has long been an offering that companies had to work out a deal with Twitter to get access to, so even then it was never fully "open."
<br /><br />
As part of the changing business strategy, Twitter has cut off many of its "Firehose" partners, including PeopleBrowsr.  In response, PeopleBrowsr sued arguing that this change has a negative impact on PeopleBrowsr's business (apparently true), and thus it must be illegal.  The company highlights how it has all sorts of highly valuable deals with other companies <i>because</i> of its analytics of Twitter's Firehose.
<blockquote><i>
PeopleBrowsr's products are highly valuable to its users, who utilize them to
extract relevant information from the massive Twitter stream, as well as to organizations
marketing their messages or brands. PeopleBrowsr has entered into valid contracts including: (1)
a three-year, $3 million contract with defense contractor Strategic Technology Research, (2) a
long term, $400,000 contract with Cadalys to build a customized Kred application, (3) a long
term, $300,000 contract with Radian6 to incorporate Kred into its products, (4) a long term,
$400,000 contract with Badgeville to incorporate Kred into its products, (5) a contract with
Mashable to power its mRank product through PeopleBrowsr's API, and (6) a contract for at least
one year with DynamicLogic, worth at least $75,000. PeopleBrowsr has business relationships
that are likely to ripen into new business with firms including Dell Computer, Demand Media,
Ogilvy, Bell-Pottinger, and CBS Interactive, among others.
</i></blockquote>
It is not difficult to understand why PeopleBrowsr is <i>upset</i> that Twitter decided to end the relationship, even as PeopleBrowsr claims to pay over $1 million a year to Twitter for access to the Firehose.  The key argument that PeopleBrowsr makes, is that Twitter has, in the past, made various statements concerning its embrace of an open platform that allows others to build on top of their work.  But I'm not sure why that's actually relevant here.  PeopleBrowsr obviously knew that Firehose wasn't completely open since it signed two separate licensing agreements with Twitter (according to its own filing).  In fact, they explicitly note that the agreement has a <i>termination provision</i>, so PeopleBrowsr had to know it was a possibility.  In addition, most of the statements about openness that PeopleBrowsr cites, are vague statements about the importance of openness.  Even the specific comments about keeping Firehose open are things like an engineer noting that he's "fighting to keep access to the Firehose and other API's as open as possible," which should have clearly indicated to PeopleBrowsr that the entire company was not in agreement, and there was a very real chance that it would not remain so open.
<br /><br />
In the end, it really seems like the problem is entirely PeopleBrowsr's for building a business in which it relied almost entirely on a single relationship, and did not set up the contract to ensure that relationship would not go away.  Again, I'm not sure that Twitter's strategy here is smart, but it's difficult to see how it's illegal.  The problems seem entirely self-created by PeopleBrowsr.  It even seems to admit that it bet its entire business on this fact, without securing a contract that they knew would last.
<blockquote><i>
The Firehose is an essential input for PeopleBrowsr's business. PeopleBrowsr's
products function by creating a comprehensive view of Twitter activity, and a mere sample of
Twitter's data is not sufficient to provide the sophisticated analytics PeopleBrowsr's clients have
contracted for.
</i></blockquote>
All that says is that perhaps they shouldn't have put things in their client contracts that they really couldn't promise they'd have access to -- or they should have put together a much more solid agreement with Twitter in the first place.  While PeopleBrowsr may have won a temporary injunction, preventing Twitter from turning off its access to Firehose for the time being, it seems like a massive long shot to think that it can possibly win this lawsuit.  Yes, it sucks that the one partner you bet your business on is changing its own ways of doing business, but that's what happens when you bet your business model on being someone else's "bitch."<br /><br /><a href="http://www.techdirt.com/blog/innovation/articles/20121129/14255421177/peoplebrowsr-gets-temporary-restraining-order-against-twitter-felony-interference-with-business-model.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20121129/14255421177/peoplebrowsr-gets-temporary-restraining-order-against-twitter-felony-interference-with-business-model.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20121129/14255421177/peoplebrowsr-gets-temporary-restraining-order-against-twitter-felony-interference-with-business-model.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>someone-else's-bitch</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121129/14255421177</wfw:commentRss>
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<item>
<pubDate>Tue, 6 Nov 2012 07:44:40 PST</pubDate>
<title>Epic's 'Music First' Approach: Delay Album Release; Drop Band When They Leak It</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121105/07291120932/epics-music-first-approach-delay-album-release-drop-band-when-they-leak-it.shtml</link>
<guid>http://www.techdirt.com/articles/20121105/07291120932/epics-music-first-approach-delay-album-release-drop-band-when-they-leak-it.shtml</guid>
<description><![CDATA[ Last month, we wrote about how the band Death Grips, an indie sensation who had signed with Epic Records (owned by Sony Music), had decided to <a href="http://www.techdirt.com/articles/20121001/19120320564/band-gives-away-latest-album-after-label-attempts-to-shelve-it-until-sometime-next-year.shtml">release</a> their latest album for free all over the internet, after some sort of dispute with Epic over the release date.  The band was already considered one of the <a href="http://www.techdirt.com/articles/20120928/23265120546/yes-there-are-many-many-many-many-legal-uses-bittorrent.shtml">top authorized downloaded bands</a> on BitTorrent due to earlier releases it had put online for free itself.  However, with Epic trying to take a standard "slow down and wait" approach, the band posted its new album to various file lockers and started tweeting out links, noting that "the label will be hearing the album for the first time with you."
<br /><br />
Last week, the band <a href="https://www.facebook.com/photo.php?fbid=474002185978299&#038;set=a.176170062428181.39239.170869886291532&#038;type=1&#038;permPage=1" target="_blank">posted a screenshot</a> of an irate email from the label about this. Epic notes not only that is it absolutely furious about the leak, but that (1) the release is a breach of contract; (2) since Epic owns the copyright, the label considers the leak to be infringing; (3) the band's decisions have "financially damaged Epic"; (4) even though Epic still intended to release the album, <b>the album would not count towards the recording commitment</b> in the band's contract and (5) while Epic still intended to collect money for the sale of the album (which, again, would not count towards the recording commitment), Epic would not cover the cost of recording the album.
<center>
<a href="http://imgur.com/fm3dX"><img src="http://i.imgur.com/fm3dX.png" width=560 /></a>
</center>
Those last two points are the really interesting ones to me.  If it's not counting the album towards the recording commitment, and it now refuses to pay for the cost of the album, it seems wrong to then still consider it something that Epic gets to sell and to keep all the revenue from.
<br /><br />
Either way, it appears that won't be an issue, because just a few weeks after that email was sent, Epic officially <a href="http://pitchfork.com/news/48448-epic-records-drops-death-grips/" target="_blank">began the process of dropping Death Grips</a> from the contract.  This probably won't surprise many people, though it will be interesting to see if Epic retains "ownership" of the work in question or if Death Grips is able to get back control of its masters.  That said, Epic's "statement" about this move is absolutely hilarious for being obviously, blatantly, false:
<blockquote><i>
Epic Records is a music first company that breaks new artists. That is our mission and our mandate. Unfortunately, when marketing and publicity stunts trump the actual music, we must remind ourselves of our core values. To that end, effective immediately, we are working to dissolve our relationship with Death Grips. We wish them well.
</i></blockquote>
First of all, Death Grips had already "broken" without Epic's help.  Second, since when has a major label ever really cared about "the actual music" as compared to the ability to make money off of it with marketing and publicity stunts?  And, really, if it were just about "the music," then why would it have freaked out so much when the band made "the music" available for free?<br /><br /><a href="http://www.techdirt.com/articles/20121105/07291120932/epics-music-first-approach-delay-album-release-drop-band-when-they-leak-it.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121105/07291120932/epics-music-first-approach-delay-album-release-drop-band-when-they-leak-it.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121105/07291120932/epics-music-first-approach-delay-album-release-drop-band-when-they-leak-it.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>uh-what?</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121105/07291120932</wfw:commentRss>
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<item>
<pubDate>Mon, 10 Sep 2012 12:36:00 PDT</pubDate>
<title>How The Major Labels Screw Artists: Jurisdiction &#038; Venue</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120904/16501420272/how-major-labels-screw-artists-jurisdiction-venue.shtml</link>
<guid>http://www.techdirt.com/articles/20120904/16501420272/how-major-labels-screw-artists-jurisdiction-venue.shtml</guid>
<description><![CDATA[ Last year, entertainment lawyer Marty Frascogna made some waves by explaining the various hidden "gotchas" in major label contracts that could set up a situation where a band had sold over a million albums, but was <a href="http://www.techdirt.com/articles/20110707/03264014993/riaa-accounting-how-to-sell-1-million-albums-still-owe-500000.shtml">still in debt</a>.  A few months later, we had him <a href="http://www.techdirt.com/articles/20110816/17194815553/breaking-benjamin-dispute-lays-bare-dirty-laundry-behind-scenes-record-label-deals.shtml">analyze</a> an actual record label contract that had become public as evidence in a legal dispute (most of the time, those things are kept very, very secret).
<br /><br />
Marty's back with some new work, this time a video explaining some more of the little clauses that most musicians probably overlook in their contracts, but which allow the major labels to screw over artists.  Key terms this time around: <a href="http://musicglobalization.com/2012/08/28/watch-out-for-these-killers/" target="_blank">jurisdiction and venue</a>.  We've seen this in other arenas as well -- and lots of online service providers also uses these clauses in the terms of service you sign -- basically trying to force you to use a court that's convenient for the company, but not for you.
<center>
<iframe width="560" height="315" src="http://www.youtube.com/embed/bAxuo2P2At4" frameborder="0" allowfullscreen></iframe>
</center>
This is one of those clauses that most people just skip right over.  But, of course, it can make a big difference especially if -- as Frascogna uses in his example -- you're 3,000 miles away, and the label owes you lots of money.  It can be more expensive to actually get to the court in question than the money that's owed to you.  His suggestions are to push back and seek a jurisdiction and venue that's better for you, though he admits that's unlikely to happen.  I'm less convinced by the next two suggestions: mandatory mediation and binding arbitration.  Those are certainly cheaper than full on litigation, but there are details that matter there as well.  Various studies have shown that, at least with arbitration, the big companies win a ridiculous percentage of the time -- and it's often because (even if the arbitrator is agreed upon by both parties) the arbitrator is going to do a lot more business with the big company over time and wants to be on the "recommended" list.  So they have incentives to side with the company in order to "keep the business."
<br /><br />
Either way, it's good to see Frascogna back to revealing some of the "tricks of the trade" of the major labels in setting up a contract that is inherently biased against artists.<br /><br /><a href="http://www.techdirt.com/articles/20120904/16501420272/how-major-labels-screw-artists-jurisdiction-venue.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120904/16501420272/how-major-labels-screw-artists-jurisdiction-venue.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120904/16501420272/how-major-labels-screw-artists-jurisdiction-venue.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>letting-out-the-secrets</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120904/16501420272</wfw:commentRss>
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<pubDate>Mon, 14 Nov 2011 10:29:00 PST</pubDate>
<title>How The Entertainment Industry Is Killing Copyright</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20111113/00163416752/how-entertainment-industry-is-killing-copyright.shtml</link>
<guid>http://www.techdirt.com/articles/20111113/00163416752/how-entertainment-industry-is-killing-copyright.shtml</guid>
<description><![CDATA[ Law professor Jason Mazzone very kindly sent me a copy of his new book, <a href="http://www.copyfraud.com/" target="_blank"><i>Copyfraud and Other Abuses of Intellectual Property Law</i></a>.  It's sitting on my desk and is the next book I'm planning to read.  However, he's also written up a fantastic post over at TorrentFreak, that describes <a href="http://torrentfreak.com/the-privatization-of-copyright-lawmaking-111112/?utm_source=dlvr.it&#038;utm_medium=twitter" target="_blank">how copyright has been privatized by the entertainment industry</a>.  He has two key examples of this:
<ol>
<li><b>Diminished copyright exceptions via contract</b>:  Thanks to the digital era, the entertainment industry likes to claim that you no longer purchase content, you merely "license" it.  Thus, they're able to establish their own rules to govern what you do with the content, rather than relying on the boundaries of copyright law.  As such, for the most part, many have tried to (a) claim copyright/control over more than they have a right to (b) deny you any fair use exceptions and (c) deny you your first sale rights to resell the products you "bought."  In other words, by claiming that the sale is a "license" rather than a "sale," companies are effectively able to wipe out the important limitations on copyright.</li>
<li><b>Regulatory capture</b>: The article highlights how copyright policy these days appears to be almost entirely driven by the entertainment industry, who is merely one beneficiary of the law -- but not the intended beneficiary (that would be the public).  He uses the examples of the recent "voluntary" (at the strong urging of the White House) agreement between ISPs and the entertainment industry, as well as SOPA, which he notes just takes those "private" powers to extend copyright law even further:
<blockquote><i>
The Stop Online Piracy Act  (SOPA), the companion bill to the Senate&rsquo;s PROTECT IP Act, would further privatize adjudication and punishment. Title I of that law (dubbed the E-PARASITE Act) creates a &ldquo;market-based system to protect U.S. customers and prevent U.S. funding of sites dedicated to theft of U.S. property.&rdquo; It achieves this by empowering copyright owners who have a &ldquo;good faith belief&rdquo; that they are being &ldquo;harmed by the activities&rdquo; of a website to send a notice to the site&rsquo;s payment providers (e.g. PayPal) and Internet advertisers to end business with the allegedly offending site.
<br /><br />
The payment providers and advertisers that receive the notice must stop transactions with the site. No judicial review is required for the notice to be sent and for the payments and advertising curtailed&mdash;only the good faith representation of the copyright owner. Damages are also not available to the site owner unless a claimant &ldquo;knowingly materially&rdquo; misrepresented that the law covers the targeted site, a difficult legal test to meet. The owner of the site can issue a counter-notice to restore payment processing and advertising but services need not comply with the counter-notice.
<br /><br />
There is also a catch: a site owner who issues a counter-notice automatically consents to being sued in U.S. courts (a strong disincentive for sites based abroad). <b>With few checks at all, SOPA gives copyright owners a sharp tool to disrupt and shut down websites. Based on their past conduct, there is no reason to think that copyright owners will use this tool with any measure of restraint.</b>
</i></blockquote></li></ol>
After thinking about this article for a little while, it finally hit me what's going on.  While the entertainment industry and its supporters keep claiming that they're "strengthening copyright," nothing could be further from the truth.  All of this is about the industry <b>killing copyright</b>.  They're wiping out everything that's actually important about copyright law.
<br /><br />
Think about it: the beneficiaries of copyright law are supposed to be the public.  The <i>mechanism</i> is through limited-time, government-granted monopolies.  But all that matters in copyright law is if the public is benefiting.  Things like fair use and the first sale doctrine were added to copyright law to <i>make sure</i> that copyright law benefited the public.  But when you look at the two situations described by Mazzone, you realize that everything the industry is doing is to make sure that copyright law no longer benefits the public at all, but rather all of the benefits accrue solely to a few gatekeepers.  They're not strengthening copyright law at all, they're killing it.  They're making it something entirely different than what it's intended to do... and in the process they're harming the public.<br /><br /><a href="http://www.techdirt.com/articles/20111113/00163416752/how-entertainment-industry-is-killing-copyright.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20111113/00163416752/how-entertainment-industry-is-killing-copyright.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20111113/00163416752/how-entertainment-industry-is-killing-copyright.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>this-isn't-copyright</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20111113/00163416752</wfw:commentRss>
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<item>
<pubDate>Fri, 4 Nov 2011 11:06:00 PDT</pubDate>
<title>Fight The Power: Chuck D Sues Universal Music For Hundreds Of Millions In Unpaid Royalties</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20111104/04202416631/fight-power-chuck-d-sues-universal-music-hundreds-millions-unpaid-royalties.shtml</link>
<guid>http://www.techdirt.com/articles/20111104/04202416631/fight-power-chuck-d-sues-universal-music-hundreds-millions-unpaid-royalties.shtml</guid>
<description><![CDATA[ When Eminem's publisher <a href="http://www.techdirt.com/articles/20100903/15093610898.shtml">won</a> its lawsuit with Universal Music over how to account for iTunes royalties, we expected a flood of similar litigation, possibly enough to seriously cripple the world's largest record label.  Universal Music insisted that Eminem's deal was unique and the case was specific only to that, but so far, we're seeing more and more musicians understanding the implications of the ruling, and filing similar lawsuits.  If you don't recall, the battle came down to the simple question of whether or not an iTunes sale was a <i>sale</i> or if it was a <i>license</i>.  Amusingly, in almost all other legal contexts, Universal Music claims that when you "buy" a song at iTunes it's just a license.  But that proved to be UMG's undoing here -- because many of its old contracts had extremely different terms for royalties on "sales" and "licenses."
<br /><br />
Now, there's a good reason for this.  Historically, sales were of things like CDs, where Universal had relatively higher production, storage and distribution costs.  So for "sales" (of CDs), the royalty to the musician was lower.  "Licenses" generally referred to things like licensing a song for a movie or TV commercial.  There, labels were willing to share higher royalties with the artist, and for good reason.  The costs to the label of such a license were minimal, and licensing was always a relatively small part of the business.
<br /><br />
But, of course, iTunes makes for a weird situation.  The labels want to pretend it's the same thing as selling a CD, and thus they've been paying the lower royalty rate.  But, in other legal contexts they keep claiming that downloading a song from iTunes is not really a "sale" but merely a "license."  Thus, the basic legal claim from musicians is that for iTunes sales, they deserve the much higher royalty rate (usually closer to 50%, rather than 10% for sales).  The court in the Eminem/FBT case said that iTunes songs were licenses... and thus the higher rates applied.
<br /><br />
As we noted, when others started suing, this could lead to <a href="http://www.techdirt.com/articles/20110404/12211913771/record-labels-may-owe-artists-close-to-2-billion-lawsuits-ramp-up-with-rick-james-lead.shtml">somewhere around $2 billion</a> that the labels may need to pay out to artists, and the artists are noticing.
<br /><br />
The latest to file suit is <a href="http://www.digitalmusicnews.com/permalink/2011/111102chuckd" target="_blank">is Chuck D of Public Enemy</a>, claiming that Universal owes him hundreds of millions of dollars.
<br /><br />
The full filing (embedded below) provides some additional details about UMG's "standard" recording contract.  As was <a href="http://www.techdirt.com/articles/20110707/03264014993/riaa-accounting-how-to-sell-1-million-albums-still-owe-500000.shtml">detailed</a> earlier this year by entertainment industry lawyer, Martin Frascogna, royalty rates are often just a part of the calculation -- and those royalties tend to come after a bunch of other "deductions."  In the Chuck D lawsuit, he notes that the "sold" equation includes a ton of additional "deductions" compared to the "licensed" equation.  This includes a "container charge" and an "audiophile deduction."  Because of those significant other deductions that only are used on "sales," the claim is the amount owed is <i>even larger</i> than just the discrepancy in royalty rates... and considering that the "container charge" is officially for physical packaging of a CD, it seems pretty ridiculous that UMG has been applying the container charge to digital licenses like iTunes.
<br /><br />
In the lawsuit, Chuck D actually reveals the data on how UMG has been calculating royalties... and how they should.  It highlights record label accounting at its finest:
<center>
<a href="http://imgur.com/XTLDL"><img src="http://i.imgur.com/XTLDL.png" width=560 /></a>
</center>
As you can see, just as Frascogna explained in his video, the "standard" way of accounting for "sales" is pretty ridiculous.  First, there's a "net sales" deduction, which simply deletes 15% of sales from the equation.  Then the "container charge" takes out another 25%.  So, on 1,000 units -- which brought UMG $700... UMG is able to say that Chuck D is only provided with $80.33... despite a (quite generous for a record label deal) royalty rate of 24% (standard deals start closer to 10%).  In other words, the <i>real</i> royalty rate for Chuck D is actually more like 11%, rather than the 24% claimed in the contract.
<br /><br />
As the lawsuit notes, the proper way to account for digital royalties would show a much, much higher number: $315.85 for every 1,000 units sold:
<center>
<a href="http://imgur.com/4b3Oa"><img src="http://i.imgur.com/4b3Oa.png" width=560 /></a>
</center>
The lawsuit goes on to make similar (though with even more number discrepancy) arguments around ringtone royalties, suggesting that UMG is paying $49.89 per 1000 ringtones sold... when the actual number should be more like $660.
<br /><br />
UMG is going to be facing a lot more of these kinds of lawsuits, and it's somewhat amusing to see it hoisted on its own petard for being so insistent that iTunes and other digital stores were "licensing" deals.  And, for what it's worth, Chuck D has actually been one of the artists on the forefront of embracing the internet and what it allows -- way before almost any other artist.  All the way back in 2000, we had an article about him <a href="http://www.techdirt.com/articles/000515/1024254.shtml">defending Napster</a> in a debate against Lars from Metallica.  If anyone deserves to take Universal for "hundreds of millions of dollars," he seems like a good candidate.<br /><br /><a href="http://www.techdirt.com/articles/20111104/04202416631/fight-power-chuck-d-sues-universal-music-hundreds-millions-unpaid-royalties.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20111104/04202416631/fight-power-chuck-d-sues-universal-music-hundreds-millions-unpaid-royalties.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20111104/04202416631/fight-power-chuck-d-sues-universal-music-hundreds-millions-unpaid-royalties.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>bring-the-lawyers</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20111104/04202416631</wfw:commentRss>
</item>
<item>
<pubDate>Mon, 22 Aug 2011 05:15:28 PDT</pubDate>
<title>Would You Volunteer For An Organization That Makes You Sign Away Your Right To Ever Say Anything Negative About It?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110818/03563515573/would-you-volunteer-organization-that-makes-you-sign-away-your-right-to-ever-say-anything-negative-about-it.shtml</link>
<guid>http://www.techdirt.com/articles/20110818/03563515573/would-you-volunteer-organization-that-makes-you-sign-away-your-right-to-ever-say-anything-negative-about-it.shtml</guid>
<description><![CDATA[ Paul Alan Levy alerts us to the news that Save-A-Pet is making volunteers <a href="http://pubcit.typepad.com/clpblog/2011/08/new-rule-from-save-a-pet-illinois-volunteers-may-not-criticize-it-on-social-media.html" target="_blank">sign an extremely overbroad form</a>, forbidding them from saying pretty much anything negative about the organization or anyone associated with it:
<blockquote><i>
According to the form, a <a href="http://sapvolunteers.wordpress.com/2011/07/17/social-media-policy-action-required/ " target="_self">recent policy change</a> requires volunteers to <a href="http://www.citizen.org/documents/sap-volunteer-social-media-policy.pdf" target="_self">sign a form</a> giving up their right to post &ldquo;any comment or picture&rdquo; about an &ldquo;employee, volunteer or client&rdquo; of Save-A-Pet without their consent.&nbsp; Volunteers must also agree not to post any &ldquo;negative comments or pictures involving any . . . resident,&rdquo; nor post any comment that &ldquo;could be construed as harassment of the public, volunteers or staff,&rdquo; nor use the Save-a-Pet logo or "organizational material&rdquo; except on &ldquo;approved Save-A-Pet flyers."&nbsp; Volunteers who have questions about whether information is &ldquo;confidential,&rdquo; or whether any posting is otherwise &ldquo;appropriate,&rdquo; are directed to ask the chief administrator for guidance.
</i></blockquote>
As Levy notes in his post, a private organization can make you sign something that gives up your First Amendment rights, but there are some limitations.  The bigger concern is just how extensive, broad and ambiguous the limitations are.  For example:
<blockquote><i>
The vague language about postings that "could be construed as harassment" is also disturbing.  In the course of my practice, I have often seen complaints (and threats of litigation) from companies or political figures who treat mere criticism as harassment.  Even the term "harassment" can be dangerously vague.  Forbidding speech simply because of how it "could be construed" sweeps far too broadly.  And companies often misuse the fact that all of its information is otherwise "confidential" to claim that any criticism that includes such inside information is improper.
<br /><br />
Similarly, a posting that is accompanied by a group&rsquo;s logo, or which reproduces the text of a memo from an organization&rsquo;s director, is likely to be protected as fair use rather than infringement of entity&rsquo;s trademark or copyright, to the extent that they are being used to illustrate or demonstrate the points being discussed (as, for example, I have done in this blog post).  Yet again Save-A-Pet&rsquo;s broad form prohibits such innocent uses.
</i></blockquote>
While Levy notes that it appears Save-A-Pet is probably responding to a specific event and is also using a form that it appears to have copied from elsewhere, you really have to wonder if the "cost" of such a form is worth it.  It's so aggressive and broad that it's clearly scaring off some potential volunteers (such as the one who sent the form to Levy).  But are people saying negative things on Twitter about the organization really such a problem that it outweighs the cost of people being unwilling to volunteer?  It seems likely that the cost of such a form greatly outweighs the benefit.
<br /><br />
It seems likely that whoever decided to use the form simply never considered the negative consequences of offering such a form.  Because, really, all it does is scream out that the organization is really sensitive about any form of criticism -- and makes you wonder if, perhaps, that's because it deserves some.<br /><br /><a href="http://www.techdirt.com/articles/20110818/03563515573/would-you-volunteer-organization-that-makes-you-sign-away-your-right-to-ever-say-anything-negative-about-it.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110818/03563515573/would-you-volunteer-organization-that-makes-you-sign-away-your-right-to-ever-say-anything-negative-about-it.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110818/03563515573/would-you-volunteer-organization-that-makes-you-sign-away-your-right-to-ever-say-anything-negative-about-it.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>what-are-they-hiding?</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110818/03563515573</wfw:commentRss>
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<item>
<pubDate>Fri, 19 Aug 2011 09:35:20 PDT</pubDate>
<title>First Year Associate Fired After Telling Partners He Had A 'Superior Legal Mind' Sues Firm For $77 Million</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110818/11051015586/first-year-associate-fired-telling-partners-he-had-superior-legal-mind-sues-firm-77-million.shtml</link>
<guid>http://www.techdirt.com/articles/20110818/11051015586/first-year-associate-fired-telling-partners-he-had-superior-legal-mind-sues-firm-77-million.shtml</guid>
<description><![CDATA[ Lawyers filing lawsuits on their own behalf are always interesting specimen.  Witness the case of Gregory Berry, a recent graduate of UPenn's law school, who got a job at big law firm Kasowitz, Benson, Torres & Friedman.  Like most first year associates, he was given work that wasn't all that interesting, but that's the life of a first year associate at a big law firm.  Mr. Berry decided to take it upon himself to shake things up and sent an email to some partners talking up his "superior legal mind," compared to others at the firm and asking for more important work to focus on.  This came a few months after he had already been reprimanded over a separate incident concerning his (perhaps reasonable) inability to work on a particular case (he claimed he was too busy on other cases).  Either way, the firm decided that Mr. Berry was best suited elsewhere, gave him a severance package and even let him hang onto his work email, voicemail and secretarial answering service for a while.  Hell, to make it easier for him to find another job, they even told him he could keep his bio on the website.
<br /><br />
So he turned around <a href="http://www.abajournal.com/news/article/fired_kasowitz_first-year_sues_for_77m_says_firm_didnt_appreciate_his_super" target="_blank">and sued the firm along with a partner and an associate</a> he felt were instrumental in his firing... for $77 million.
<br /><br />
The email that pushed the firm over the edge read, in part:
<blockquote><i>
It has become clear that the only limiting factor on how much value I am to a case is how much responsibility I am given: the
more responsibility I am given, the better the outcome. I am in
kind of an uncomfortable position at the firm because although I
am a &ldquo;first year,&rdquo; I have 15 years business and real world
experience, as much as many senior associates. When I first got
here I did not know what to expect, but after working here for
several months now it has become clear that I have as much
experience and ability as an associate many years my senior, as
much skill writing, and a superior legal mind to most I have met.
</i></blockquote>
A partner explained to Berry that this email had "upset" some partners and that it had "burned bridges" at the firm.  A few days later, he was fired.
<br /><br />
Reading the case itself is hilarious and highly recommended.  Basically, it sounds like any very typical office situation where there's a minor dispute, but Berry plays up each action.  He also plays up his own abilities.  My favorite line is this one:
<blockquote><i>
After conquering Silicon Valley, he decided to take his talents in a new direction, and in 2007 began law school at the University of Pennsylvania Law School in Philadelphia, PA
</i></blockquote>
I also like how he portrays a pretty standard move.  After he told an (more senior) associate that he probably was too busy to work on her project, she forwarded his email to a partner.  But, look at the way Berry tells the story:
<blockquote><i>
Mr. Berry&rsquo;s communications were, as Ms. Conroy knew, entirely
proper under the duties of his employment. Upon information and belief, refusing her project nonetheless angered Ms. Conroy and she lashed out by maliciously
"reporting" Mr. Berry's e-mail to Mr. Marks.
<br /><br />
Such vindictiveness is outside the scope of Ms. Conroy&rsquo;s employment.
<br /><br />
Complaining to Mr. Marks had no purpose other than to harm Mr.
Berry and interfere with his employment.
</i></blockquote>
Can you imagine what kind of world we would live in if every time an employee complained about another employee, it was deemed to have "no purpose other than to interfere" with someone's employment?  And, I'm now planning to use "such vindictiveness is outside the scope of your employment" as much as possible in future conversations.
<br /><br />
Oh, and after he got fired and went through all of this, he still wrote the partners at the firm to ask for a letter of recommendation.
<br /><br />
While he's now set up <a href="http://www.gregoryberrylaw.com/" target="_blank">his own law firm</a>, where he advertises "creative and cutting-edge legal strategies," he claims in the lawsuit that the firing will cost him $2.55 million in "lost income."  Then there's an additional $25 million for "emotional distress" and the harm to his career and reputation.  Finally, another $50 million in punitive damages.  Just because.
<br /><br />
I am curious, of course, which thing people think will damage his reputation more.  Getting fired by a big law firm... or then turning around suing that firm for $77 million?<br /><br /><a href="http://www.techdirt.com/articles/20110818/11051015586/first-year-associate-fired-telling-partners-he-had-superior-legal-mind-sues-firm-77-million.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110818/11051015586/first-year-associate-fired-telling-partners-he-had-superior-legal-mind-sues-firm-77-million.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110818/11051015586/first-year-associate-fired-telling-partners-he-had-superior-legal-mind-sues-firm-77-million.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>creative-legal-strategies</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110818/11051015586</wfw:commentRss>
</item>
<item>
<pubDate>Wed, 17 Aug 2011 16:08:00 PDT</pubDate>
<title>Paul Ceglia To Facebook: I Didn't Forge A Contract, You Did!</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110817/14471315563/paul-ceglia-to-facebook-i-didnt-forge-contract-you-did.shtml</link>
<guid>http://www.techdirt.com/articles/20110817/14471315563/paul-ceglia-to-facebook-i-didnt-forge-contract-you-did.shtml</guid>
<description><![CDATA[ We just wrote about how, during the discovery process in the lawsuit in which Paul Ceglia claims he only recently discovered a contract giving him more than 50% of Facebook, Facebook found an original contract with identical handwriting on it, that <a href="http://www.techdirt.com/articles/20110816/04160615542/original-contract-used-paul-ceglia-to-claim-facebook-ownership-doesnt-mention-facebook.shtml">has nothing to do with Facebook</a>, suggesting that Ceglia forged the contract at the center of the dispute.
<center>
<a href="http://i.imgur.com/70l6U.jpg"><img src="http://i.imgur.com/70l6U.jpg" width=560/></a>
</center>
Ceglia has now responded with the not-particularly-believable claim that he didn't forge the contract, but that <a href="http://www.zdnet.com/blog/facebook/exclusive-paul-ceglia-says-facebook-is-doing-the-forgery/2707" target="_blank">Facebook forged that "original" document and placed it on his computer</a>.  Even better, he suspects that perhaps Mark Zuckerberg himself was the one who placed it there:
<blockquote><i>
Ceglia&rsquo;s main argument appears to be that the original &ldquo;authentic contract&rdquo; Facebook says it found is really just a Photoshopped image the company planted on his computer. He says he and his lawyers reportedly knew about it for some time and willingly handed it over to Facebook. He declares that his team will prove the image in question &ldquo;has no authenticating properties whatsoever.&rdquo;
<br /><br />
Ceglia speculates it could have been Zuckerberg himself, or the US law firm Orrick, Herrington &#038; Sutcliffe that may have done the alleged dirty work. He also says Facebook co-founder Eduardo Savrin accused Orrick of &ldquo;conspiring with Zuckerberg to deprive him of his shares during his case.&rdquo;
</i></blockquote>
The rest of the article is pretty funny.  As we've mentioned in the past, Ceglia has had trouble keeping lawyers, as most of his lawyers have ditched him after becoming more aware of the details of the case.  That's generally a huge warning sign that the lawyers don't believe the client.  In this article, Ceglia claims that he's looking for a more "collaborative" law firm, and is trying to open source his defense via a wiki (good luck with that).  Nothing in the claims that Ceglia makes in this article make him sound any more credible.  He's about to lose this lawsuit.<br /><br /><a href="http://www.techdirt.com/articles/20110817/14471315563/paul-ceglia-to-facebook-i-didnt-forge-contract-you-did.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110817/14471315563/paul-ceglia-to-facebook-i-didnt-forge-contract-you-did.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110817/14471315563/paul-ceglia-to-facebook-i-didnt-forge-contract-you-did.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>nice-try</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110817/14471315563</wfw:commentRss>
</item>
<item>
<pubDate>Wed, 27 Jul 2011 19:12:59 PDT</pubDate>
<title>Football Player Sues Hanes; Says It Can't Fire Him Over Controversial Things He Said On Twitter</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110725/18034915251/football-player-sues-hanes-says-it-cant-fire-him-over-controversial-things-he-said-twitter.shtml</link>
<guid>http://www.techdirt.com/articles/20110725/18034915251/football-player-sues-hanes-says-it-cant-fire-him-over-controversial-things-he-said-twitter.shtml</guid>
<description><![CDATA[ NFL player Rashard Mendenhall is <a href="http://www.hollywoodreporter.com/thr-esq/lawsuit-defends-celebrities-rights-say-214881" target="_blank">suing Hanes for dropping his sponsorship deal</a>, after he said some controversial things on Twitter about the Osama bin Laden killing.  Hanes points to a "moral clause" that was in its contract with Mendenhall.  In response Mendenhall says that he should have a right to express his opinions.  I can't see this going very far.  Mendenhall certainly has a right to express his opinions, but none of that means that Hanes has to continue working with him.  There's some argument that the morals clause is "broad and ambiguous," making it unenforceable, but that seems like a stretch.<br /><br /><a href="http://www.techdirt.com/articles/20110725/18034915251/football-player-sues-hanes-says-it-cant-fire-him-over-controversial-things-he-said-twitter.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110725/18034915251/football-player-sues-hanes-says-it-cant-fire-him-over-controversial-things-he-said-twitter.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110725/18034915251/football-player-sues-hanes-says-it-cant-fire-him-over-controversial-things-he-said-twitter.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>freedom-of-speech-is-different-than-contractual-relationships</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110725/18034915251</wfw:commentRss>
</item>
<item>
<pubDate>Wed, 22 Jun 2011 11:37:00 PDT</pubDate>
<title>Ridiculous Assertion: Righthaven Ruling Threatens Open Source</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110619/23422614744/ridiculous-assertion-righthaven-ruling-threatens-open-source.shtml</link>
<guid>http://www.techdirt.com/articles/20110619/23422614744/ridiculous-assertion-righthaven-ruling-threatens-open-source.shtml</guid>
<description><![CDATA[ With the recent <a href="http://www.techdirt.com/articles/20110614/17302814695/judge-rules-that-righthaven-lawsuit-was-sham-threatens-sanctions.shtml">Righthaven ruling</a> effectively declaring Righthaven's legal strategy a sham, someone going by the somewhat uncreative name "Plessy Ferguson" sent us the following essay claiming that the ruling is a disaster for open source development.  I'll post the full essay here, and then explain why it's wrong:

<blockquote><i>"While many supporters of net freedom continue to celebrate the <a href="http://www.techdirt.com/articles/20110614/17302814695/judge-rules-that-righthaven-lawsuit-was-sham-threatens-sanctions.shtml#comments">recent decision penalizing the Rightshaven lawsuit mill</a>, open source advocates are beginning to understand the brutal implications for enforcing licensing terms. Simply put, open source projects without <a href="http://en.wikipedia.org/wiki/Contributor_License_Agreement"> CLAs (Contributor License Agreements)</a> will not be able to sue anyone for breaking the license agreement. Smaller, less-professional projects will have to choose between accepting casual contributions and enforcing the license.<br />
<br /><br />
The limit threatens much of the casual work done by corporate partners. While it's usually relatively easy for small, independent developers to sign a contract giving away all rights to the code, it's another matter for a corporate developer to get permission from the legal department. If the company is paying for the development-- something that is common with many projects supported by companies-- the company owns the code and the company needs to sign the document. This will be too much red tape for many developers.<br />
<br /><br />
The interpretation also dramatically threatens an important right built into many open source licenses, the right to fork the code. In the past, anyone could take a project protected by the Gnu Public License and start adding their own enhancements. Many projects have forked over time when developers have disagreements over the best path. <br />
<br /><br />
The trouble is that the new team creating the fork won't have CLAs governing the old code making it impossible for them to enforce the license. Any forked project won't be able to enforce all of the rights, a crucial issue because the judge is requiring plaintiffs to be able to control the copyright completely before suing. <br />
<br /><br />
The matter also threatens some CLAs that transfered an exclusive reproduction right to any project. Some CLAs don't transfer much more than the right to sue, something the court said couldn't be transfered. If projects don't renegotiate these agreements with all contributors, they'll be unable to enforce their license.<br />
<br /><br />
While all of these limitations can be overcome with more legal paperwork, they still threaten the more casual open source projects. Teams will need buildmasters, coders, architects and lawyers if they want to create anything lasting. Unfortunately, the strength of open source licenses are directly related to the strength of copyright."</i>
</blockquote>
I can't decide if this is the work of someone who's just trying to drum up bogus support for Righthaven, or who simply doesn't understand the Righthaven ruling at all.  Nothing in the Righthaven ruling supports what's written above.  Whoever wrote it appears to be trying to paint a picture saying that the Righthaven ruling makes it more difficult to transfer copyright.  That's not true.  All the Righthaven ruling said was that you can't transfer <i>solely</i> the right to sue over copyright.  That's it.  That has nothing to do with open source development, as I don't know of anyone in the open source world who is trying to just transfer the right to sue, while retaining the actual Section 106 rights under copyright.
<br /><br />
The idea that forked projects won't be able to enforce their license rights is, again, totally unrelated to the ruling.  Forked projects will have a license that allows them to enforce their rights, because of the nature of the open source license they're using, which grants such rights.  Pretending otherwise is pure folly.  Honestly, the more I read this piece, the more I think it's someone who's trying to spread pro-Righthaven FUD.<br /><br /><a href="http://www.techdirt.com/articles/20110619/23422614744/ridiculous-assertion-righthaven-ruling-threatens-open-source.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110619/23422614744/ridiculous-assertion-righthaven-ruling-threatens-open-source.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110619/23422614744/ridiculous-assertion-righthaven-ruling-threatens-open-source.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>let's-debunk-this-now</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110619/23422614744</wfw:commentRss>
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<item>
<pubDate>Fri, 6 May 2011 19:39:00 PDT</pubDate>
<title>When Copyright And Contracts Can Get In The Way Of Art</title>
<dc:creator>Nina Paley</dc:creator>
<link>http://www.techdirt.com/articles/20110506/15124514188/when-copyright-contracts-can-get-way-art.shtml</link>
<guid>http://www.techdirt.com/articles/20110506/15124514188/when-copyright-contracts-can-get-way-art.shtml</guid>
<description><![CDATA[ <center><a href="http://blog.ninapaley.com/wp-content/uploads/2011/05/avatar640clear0001.png"><div style="text-align: center"><img class="size-medium wp-image-1988" src="http://blog.ninapaley.com/wp-content/uploads/2011/05/avatar640clear0001-300x300.png" alt="" title="avatar640clear0001" width="300" height="300" /></div></a><p class="wp-caption-text"><em><font size=-2>Matsya the Fish</font></em></p></center> 
<p>Back in January I was asked by the Brooklyn Museum to create a set of  11 iconic Vishnu avatars for an exhibit they&rsquo;re planning in June. They  didn't offer a whole lot of money &ndash; an &ldquo;honorarium,&rdquo; they called it &ndash;  but said the images could be under a Free license (they said CC-BY-SA  was fine). I chose to do it because it was a cool gig, right up my  alley; and I love the Brooklyn Museum and was excited to have my art be  part of one of their exhibits. It turned out to be more work than I  expected, but I was very pleased with the results.</p> <p>Thus began a comedy of errors, the climax of which may have yet to be reached.</p>


<center><a href="http://blog.ninapaley.com/wp-content/uploads/2011/05/avatar640clear0002.png"><img class="size-medium wp-image-1990" src="http://blog.ninapaley.com/wp-content/uploads/2011/05/avatar640clear0002-300x300.png" alt="" title="avatar640clear0002" width="300" height="300" /></a><p class="wp-caption-text" align="center"><em><font size=-2>Kurma the Tortoise</font></em></p></center> 


<p>First they wanted revisions. Creating is fun, but revisions are not.  For what they were paying, revisions weren&rsquo;t part of the deal. We hadn&rsquo;t  signed a contract; they hadn&rsquo;t even mentioned a contract. It was just  an oral agreement for a modest sum of money (&ldquo;honorarium&rdquo;) and because  the work would be CopyLeft they could do whatever they wanted with it,  including revise and modify.</p> 

<center><em><a href="http://blog.ninapaley.com/wp-content/uploads/2011/05/avatar640clear0003.png"><img class="size-medium wp-image-1991" src="http://blog.ninapaley.com/wp-content/uploads/2011/05/avatar640clear0003-300x300.png" alt="" title="avatar640clear0003" width="300" height="300" /></a></em><p class="wp-caption-text"><em><font size=-2>Varaha the Boar</font></em></p></center>

 <p>I hadn&rsquo;t freelanced in years. <em><a href="http://sitasingstheblues.com/">Sita Sings the Blues</a></em>  took up nearly all my time between 2005 and 2011. I had gained a lot of  self confidence during that time and was out of my old freelancer  habits. Instead of doing whatever they asked and resenting them for it, I  did something I&rsquo;d never done before: I said no. I made sure to be  polite. I consulted trusted friends, examined my motives, and was  willing to accept any consequences, including being &ldquo;fired.&rdquo;</p> 

<center><em><a href="http://blog.ninapaley.com/wp-content/uploads/2011/05/avatar640clear0004.png"><img class="size-medium wp-image-1992" src="http://blog.ninapaley.com/wp-content/uploads/2011/05/avatar640clear0004-300x300.png" alt="" title="avatar640clear0004" width="300" height="300" /></a></em><p class="wp-caption-text"><em><font size=-2>Narasimha the Lion-Man</font></em></p></center> 

<p>The worst case scenario would be that they wouldn&rsquo;t use the art and  wouldn&rsquo;t pay me. I was more concerned about the art than the money. I like money too, of course. The best-case scenario would be that they would use the art and pay me. But if they didn&rsquo;t pay me, I planned to release the art myself, so anyone could use it, including them. They would be free to use the art even if they didn&rsquo;t pay me.</p> <p>The happy fact is that once I realized saying &ldquo;no&rdquo; was an option, any budding resentment at their requests evaporated. They were just trying  to get what they wanted, which is what everyone does. It fell on me to set boundaries. It&rsquo;s not wrong to try to get what you want; it&rsquo;s also not wrong to say no.</p> 

<center><em><a href="http://blog.ninapaley.com/wp-content/uploads/2011/05/avatar640clear0005.png"><img class="size-medium wp-image-1993" src="http://blog.ninapaley.com/wp-content/uploads/2011/05/avatar640clear0005-300x300.png" alt="" title="avatar640clear0005" width="300" height="300" /></a></em><p class="wp-caption-text"><em><font size=-2>Vamana thye Dwarf</font></em></p></center> <p>

After I said no, they produced a contract &ndash; one that I never would have signed, even if they&rsquo;d ever shown it to me before, which they hadn&rsquo;t. The contract granted them unlimited revisions.&nbsp; Time passed, I politely stated and re-stated that the work was Free, and already completed; they could do whatever they wanted with it, and weren&rsquo;t even legally bound to pay me.</p> 

<center><em><a href="http://blog.ninapaley.com/wp-content/uploads/2011/05/avatar640clear0006.png"><img class="size-medium wp-image-1994" src="http://blog.ninapaley.com/wp-content/uploads/2011/05/avatar640clear0006-300x300.png" alt="" title="avatar640clear0006" width="300" height="300" /></a></em><p class="wp-caption-text"><em><font size=-2>Parashurama the Axe-Wielding Brahmin</font></em></p></center> 

<p>Finally they removed the revisions clause &ndash; but added a new non-compete clause. This would make my work Free for everyone in the entire world to use, except me. I told them I couldn&rsquo;t sign it, and they assured me it didn&rsquo;t apply to the drawings I&rsquo;d done, but anything I  might do that would be &ldquo;similar.&rdquo;&nbsp; They said the non-compete language  absolutely had to stay in. I again pointed out the work was done, they had all the image files, and they could do whatever they wanted with it, without a contract and without even paying me.</p> 

<center><em><a href="http://blog.ninapaley.com/wp-content/uploads/2011/05/avatar640clear0007.png"><img class="size-medium wp-image-1995" src="http://blog.ninapaley.com/wp-content/uploads/2011/05/avatar640clear0007-300x300.png" alt="" title="avatar640clear0007" width="300" height="300" /></a></em><p class="wp-caption-text"><em><font size=-2>Rama the King</font></em></p></center> 

<p>I understand why contracts can be useful: the producer wants assurance of payment, and the payer wants assurance of production. If either party fails to live up to their obligation, the other party can punitively refuse theirs. But I had already done the work. I didn&rsquo;t need a contract to incentivize it. Of course I wanted to be paid, and I thought paying me would be the decent thing to do; but the work was done, and I placed no restrictions on it.</p> 

<center><em><a href="http://blog.ninapaley.com/wp-content/uploads/2011/05/avatar640clear0008.png"><img class="size-medium wp-image-1996" src="http://blog.ninapaley.com/wp-content/uploads/2011/05/avatar640clear0008-300x300.png" alt="" title="avatar640clear0008" width="300" height="300" /></a></em><p class="wp-caption-text"><em><font size=-2>Krishna the Cowherd Prince</font></em></p></center> 

<p>I don&rsquo;t like contracts. They are overused and unnecessary in most cases. Often it takes more time to negotiate a contract than it does to  execute the work itself. I agree it is uncool and wrong to promise money and not deliver, but I hope to never work with anyone who can&rsquo;t be trusted to live up to such a simple promise. If they don&rsquo;t, a contract is unlikely to make it better. I&rsquo;d have to &ldquo;go legal&rdquo; on them to enforce it, and unless it&rsquo;s a really huge amount of money they reneged on, I&rsquo;d have to spend more money and time on the legal enforcement. Art and Law should stay as far away from each other as possible. I manage to get plenty of work done without contracts, and I manage to take in money as well.</p> 

<center><em><a href="http://blog.ninapaley.com/wp-content/uploads/2011/05/avatar640clear0009.png"><img class="size-medium wp-image-1997" src="http://blog.ninapaley.com/wp-content/uploads/2011/05/avatar640clear0009-300x300.png" alt="" title="avatar640clear0009" width="300" height="300" /></a></em><p class="wp-caption-text"><font size=-2><em>Balarama the Brother of Krishna</em></font></p></center> 

<p>Throughout all of this I refrained from releasing the images myself, so the Brooklyn Museum could have first use. First use bestows such a competitive advantage that copyright is irrelevant. If the Museum rolled out merchandise first, any potential competitors would be unlikely to catch up. The work would immediately be associated with the Museum, before any competitor could associate it with anything else. Any sane contract would have obligated me to grant them first use, but that wasn&rsquo;t in their contract at all, even though the Free license was. Their contract was built on the assumption of copyright, just with a CC-BY-SA  license inserted into it. (Law students take note: most lawyers have no clue about the implications of Free licenses. Please try to fix this.)  The non-compete clause was pointless, but a first use provision would have been essential for them.</p> 

<center><em><a href="http://blog.ninapaley.com/wp-content/uploads/2011/05/avatar640clear0010.png"><img class="size-medium wp-image-1998" src="http://blog.ninapaley.com/wp-content/uploads/2011/05/avatar640clear0010-300x300.png" alt="" title="avatar640clear0010" width="300" height="300" /></a></em><p class="wp-caption-text"><em><font size=-2>Buddha the Preacher</font></em></p></center> 

<p>Anyway, time continued to pass, and they finally let me strike out  the non-compete clause so I&rsquo;d just sign the damn contract and make the project digestible to their bureaucracy. So I did, and they paid me!  Slightly more than the initially specified &ldquo;honorarium&rdquo; too. This was back in March. I&rsquo;ve been looking forward to the Vishnu exhibit ever since, eager to finally have my illustrations see the light of day in the glorious setting of the Brooklyn Museum.</p> <p>The exhibit is set to open in June. It should be really cool! But it won&rsquo;t include my illustrations, because on May 5th they informed me their director wants to &ldquo;take it in another direction.&rdquo; Yep, they dropped my art, with just a few weeks to go.</p> <p>I&rsquo;m really glad that I specified a Free license from the very beginning. If I had granted them a restrictive copyright, then, when they axed the art, no one would be able to use it. So here&rsquo;s yet another benefit to Free Culture: a client can&rsquo;t kill it.</p> 

<center><em><a href="http://blog.ninapaley.com/wp-content/uploads/2011/05/avatar640clear0011.png"><img class="size-medium wp-image-1999" src="http://blog.ninapaley.com/wp-content/uploads/2011/05/avatar640clear0011-300x300.png" alt="" title="avatar640clear0011" width="300" height="300" /></a></em><p class="wp-caption-text"><em><font size=-2>Kalki the Avatar of the Future</font></em></p></center> <p>
<strong>Addendum:</strong> As Terry Hancock wrote in the comments <a href="http://blog.ninapaley.com/2011/05/06/the-avatars-of-vishnu/">on my blog</a>:  &ldquo;in the end, the museum subsidized an enrichment of the commons,  for  which I am grateful to them.&rdquo; Me too!</p><p> <em>All images <a href="http://creativecommons.org/licenses/by-sa/3.0/">CC-BY-SA</a>. Click for 640-pixel-square PNGs with transparent backgrounds. High resolution available <a href="http://www.archive.org/details/AvatarsOfVishnu">here</a>.</em></p><p><em>This article crossposted from <a href="http://blog.ninapaley.com/2011/05/06/the-avatars-of-vishnu/">ninapaley.com</a> </em></p><br /><br /><a href="http://www.techdirt.com/articles/20110506/15124514188/when-copyright-contracts-can-get-way-art.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110506/15124514188/when-copyright-contracts-can-get-way-art.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110506/15124514188/when-copyright-contracts-can-get-way-art.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>tales-from-the-creative-front-lines</slash:department>
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<pubDate>Thu, 14 Apr 2011 22:15:51 PDT</pubDate>
<title>Why Doctors Shouldn't Abuse Copyright Law To Stop Patient Reviews</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110414/03462013893/why-doctors-shouldnt-abuse-copyright-law-to-stop-patient-reviews.shtml</link>
<guid>http://www.techdirt.com/articles/20110414/03462013893/why-doctors-shouldnt-abuse-copyright-law-to-stop-patient-reviews.shtml</guid>
<description><![CDATA[ Two years ago, we wrote about a very sketchy operation, called Medical Justice, that was pushing a highly questionable plan to <a href="http://www.techdirt.com/articles/20090328/1445494290.shtml">use the DMCA</a> to stop patients from rating their doctors on online ratings sites.  The plan works as follows: as part of your visit to the doctor, the doctor makes you sign a "waiver" provided by Medical Justice, which <i>assigns the copyright on any review you might write</i> to the doctor.  Then, if you write a bad review, the doctor can claim copyright infringement, and use the DMCA takedown process to remove the bad review.
<br /><br />
As we noted at the time, this is clearly <i>not</i> what copyright law was designed for.
<br /><br />
We've also pointed out that it's not clear that this process <a href="http://www.techdirt.com/articles/20100609/0154149750.shtml">is actually legal</a>, and many reviews might not have any actual copyright anyway -- and in cases where there is copyright, a very strong fair use defense can be made.  Still, Medical Justice has continued to convince doctors that this is a good idea, and two well-respected law professors have decided to begin educating doctors and patients about why they should be wary.  Professors Eric Goldman and Jason Schultz have <a href="http://blog.ericgoldman.org/archives/2011/04/announcing_doct.htm" target="_blank">launched a new site</a> called <a href="http://doctoredreviews.com/" target="_blank">Doctored Reviews: Why Medical Justice's Anti-Review Contracts are a Poison Pill</a>, hoping to convince doctors to stay away.
<br /><br />
In the announcement, Goldman notes that if the website still fails to stop these kinds of practices, they may need to get more aggressive.  Hopefully doctors realize that this is a bad idea.  And, seriously, if your doctor made you sign one of these, wouldn't you go find a new doctor?  If my doctor is trying to stifle bad reviews, then that makes me a lot more worried than any bad review.  As Schultz notes in the press release:
<blockquote><i>
"Doctors who use these gag-order contracts are essentially telling patients 'if you want medical care, you must sign away your right to free speech,' ... "More speech is the answer [to reviews]," he said, "not censorship and copyright abuse."
</i></blockquote><br /><br /><a href="http://www.techdirt.com/articles/20110414/03462013893/why-doctors-shouldnt-abuse-copyright-law-to-stop-patient-reviews.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110414/03462013893/why-doctors-shouldnt-abuse-copyright-law-to-stop-patient-reviews.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110414/03462013893/why-doctors-shouldnt-abuse-copyright-law-to-stop-patient-reviews.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>it's-bad-for-business</slash:department>
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<pubDate>Tue, 5 Apr 2011 09:04:04 PDT</pubDate>
<title>Record Labels May Owe Artists Close To $2 Billion; Lawsuits Ramp Up With Rick James In The Lead</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110404/12211913771/record-labels-may-owe-artists-close-to-2-billion-lawsuits-ramp-up-with-rick-james-lead.shtml</link>
<guid>http://www.techdirt.com/articles/20110404/12211913771/record-labels-may-owe-artists-close-to-2-billion-lawsuits-ramp-up-with-rick-james-lead.shtml</guid>
<description><![CDATA[ With the Supreme Court <a href="http://www.techdirt.com/articles/20110322/04194213585/forget-infringement-major-labels-should-be-worrying-about-having-to-pay-much-higher-royalties-downloads.shtml">rejecting</a> the appeal of Universal Music concerning how much it <a href="http://www.techdirt.com/articles/20100903/15093610898.shtml">owes Eminem</a> for iTunes sales, we expected a bunch of lawsuits to be filed, and that's starting.  The estate of Rick James has <a href="http://www.hollywoodreporter.com/thr-esq/rick-james-estate-files-class-174323" target="_blank">filed a class action lawsuit on behalf of other artists</a> who also believe that Universal incorrectly paid them for similar digital sales.
<br /><br />
If you don't recall, the key question is whether or not digital "sales" are really "sales" or "licenses."  That's because old record label contracts (the newer ones, not surprisingly, have been changed) gave artists a very small percentage of royalties on "sales," which was supposed to be about CDs, vinyl and tape, and a much higher percentage on "licenses," since there's not much involved in a license.  Eminem and some other musicians have been suing the record labels pointing out that iTunes and ringtones appears to be a lot more like a license than a sale, and thus they should get the (much) higher royalty rates, and the appeals court agreed with Eminem.  I'm not sure the status of some of the other lawsuits in this space, but with this new class action, I'm sure we'll be hearing about plenty of these lawsuits soon.
<br /><br />
While Universal Music keeps insisting that the Eminiem contract was "unique" and had special language that makes the ruling only applicable to Eminem, clearly these other musicians do not agree.  David Kusek has done some (ha ha) <a href="http://www.futureofmusicbook.com/2011/03/music-managers-and-artists-could-collect-over-2-billion-in-unpaid-royalties/" target="_blank">back of the iPad calculations</a> to estimate the potential liability for the record labels at close to $2.15 billion.
<center>
<img src="http://i.imgur.com/qVdRW.jpg" width="420" />
</center>
Even if the estimates are a bit off, the record labels should be pretty worried about all of this.  Of course, I can't wait until the next time they want to insist that they've really only "licensed" the music you have rather than "sold" it to you, since they were arguing exactly the opposite of that in court...<br /><br /><a href="http://www.techdirt.com/articles/20110404/12211913771/record-labels-may-owe-artists-close-to-2-billion-lawsuits-ramp-up-with-rick-james-lead.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110404/12211913771/record-labels-may-owe-artists-close-to-2-billion-lawsuits-ramp-up-with-rick-james-lead.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110404/12211913771/record-labels-may-owe-artists-close-to-2-billion-lawsuits-ramp-up-with-rick-james-lead.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>i'm-rick-james...</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110404/12211913771</wfw:commentRss>
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<pubDate>Wed, 12 Jan 2011 10:13:12 PST</pubDate>
<title>Guy Claims He Owns The Idea Of Oprah Visiting Australia, Plans To Sue</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110112/03022212613/guy-claims-he-owns-idea-oprah-visiting-australia-plans-to-sue.shtml</link>
<guid>http://www.techdirt.com/articles/20110112/03022212613/guy-claims-he-owns-idea-oprah-visiting-australia-plans-to-sue.shtml</guid>
<description><![CDATA[ When you think that ideas are ownable, you get absolutely ridiculous scenarios, such as the idea that anyone could ever "own" the idea of Oprah Winfrey visiting Australia.  And yet, a dive boat operator in Australia is <a href="http://www.smh.com.au/travel/travel-news/megastars-visit-turns-into-legal-soap-oprah-20110106-19gz3.html" target="_blank">planning to sue Tourism Australia</a>, because of Oprah Winfrey's recent visit.  You see, back in 2004, this guy by the name of John Heuvel, had the idea that it would be good for Austalia's tourism if Oprah visited the country.  That seems like the kind of idea just about anyone could have, of course, however he insists that it was unique to him.  He pitched it to Tourism Australia, who agreed to work with him to get Oprah to visit.  They pitched Oprah in 2005, and she (or, rather, her company) turned them down.  Fast forward to 2009.  Heuvel thought he'd try again, and pitched Oprah's company directly (without the help of Tourism Australia).  It appears there was no response.
<br /><br />
However, last month, Oprah did finally go visit Australia, and Tourism Australia was (not surprisingly) heavily involved.  However, Heuvel claims that since Tourism Australia had promised to work with him, it had now breached a contract.  As for the idea that perhaps (just maybe) plenty of others at Tourism Australia might have had the idea of bringing perhaps the most recognizable entertainer in the world to the country to play up tourism in Australia?  Why, that's impossible, according to Heuvel:
<blockquote><i>
"Tourism Australia is saying that it thought up the idea, which is ludicrous."
</i></blockquote>
Ludicrous?  Really?  Tourism Australia admits that it worked with Heuvel in 2005, and that that bid to lure Oprah down under failed.  End of story.  This latest trip was entirely unrelated.  However, it appears that Heuvel really thinks that the idea itself is his and his alone, and that Tourism Australia owes him "millions" for actually having Oprah visit the country, without paying him first.<br /><br /><a href="http://www.techdirt.com/articles/20110112/03022212613/guy-claims-he-owns-idea-oprah-visiting-australia-plans-to-sue.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110112/03022212613/guy-claims-he-owns-idea-oprah-visiting-australia-plans-to-sue.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110112/03022212613/guy-claims-he-owns-idea-oprah-visiting-australia-plans-to-sue.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>ownership-society-at-work</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110112/03022212613</wfw:commentRss>
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<item>
<pubDate>Wed, 1 Dec 2010 10:55:05 PST</pubDate>
<title>Company Claims Submitting Negative Yelp Review Violates Contract</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20101201/00071412074/company-claims-submitting-negative-yelp-review-violates-contract.shtml</link>
<guid>http://www.techdirt.com/articles/20101201/00071412074/company-claims-submitting-negative-yelp-review-violates-contract.shtml</guid>
<description><![CDATA[ Patty points us to a Reddit post where someone claims that after posting a negative Yelp review, the company being reviewed <a href="http://www.reddit.com/r/AskReddit/comments/edxyk/submitted_a_negative_yelpcom_review_and_now_im/" target="_blank">threatened the reviewer with legal action</a>, claiming that the review violated a contract that the customer had signed.  The business apparently is one that repairs damaged hard drives or recovers data off of them.  The customer was clearly not satisfied.  Where it gets strange though is that the company claims that the negative review violates the signed contract.  As per standard Reddit practices, the details of the company are redacted, so it's a bit difficult to dig into the facts here.  However, it seems likely that this threat is more about getting the person to back down than any realistic shot at legal action.  One would hope the company would realize that if it actually took legal action, that information would spread far and wide across the internet, and would probably do <i>significantly</i> more harm than any single bad review on Yelp...<br /><br /><a href="http://www.techdirt.com/articles/20101201/00071412074/company-claims-submitting-negative-yelp-review-violates-contract.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101201/00071412074/company-claims-submitting-negative-yelp-review-violates-contract.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101201/00071412074/company-claims-submitting-negative-yelp-review-violates-contract.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>well,-don't-sign-such-contracts</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20101201/00071412074</wfw:commentRss>
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<item>
<pubDate>Mon, 8 Nov 2010 05:13:44 PST</pubDate>
<title>Houston Votes To Turn Off Red Light Cameras; City Officials Trying To Figure Out How To Cancel Contract</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20101104/03572911723/houston-votes-to-turn-off-red-light-cameras-city-officials-trying-to-figure-out-how-to-cancel-contract.shtml</link>
<guid>http://www.techdirt.com/articles/20101104/03572911723/houston-votes-to-turn-off-red-light-cameras-city-officials-trying-to-figure-out-how-to-cancel-contract.shtml</guid>
<description><![CDATA[ <a href="http://www.techdirt.com/profile.php?u=btr1701">btr1701</a> alerts us to the news that Houston residents have <a href="http://www.kbtx.com/news/headlines/Houston_voters_put_the_brakes_on_the_citys_70_red-light_cameras_106661794.html?ref=794" target="_blank">voted to get rid of red light cameras</a> around Houston.  The vote was actually pretty close, with 52.82% wanting to ditch the cameras, and 47.18% wanting to keep them.  Of course, the cameras might not disappear all that quickly.  It turns out that the city -- which has made $44 million from the cameras -- has a contract with the camera provider that runs for another four years.  There is a 120-day cancellation policy, so the absolute soonest that the cameras might turn off is four months or so in the future.  However, the city is currently reviewing its "options."  And, of course, any citation sent out while this is going on is still a valid citation, so Houston drivers shouldn't run around thinking that the cameras are already off.<br /><br /><a href="http://www.techdirt.com/articles/20101104/03572911723/houston-votes-to-turn-off-red-light-cameras-city-officials-trying-to-figure-out-how-to-cancel-contract.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101104/03572911723/houston-votes-to-turn-off-red-light-cameras-city-officials-trying-to-figure-out-how-to-cancel-contract.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101104/03572911723/houston-votes-to-turn-off-red-light-cameras-city-officials-trying-to-figure-out-how-to-cancel-contract.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>redlight-cameras-get-the-red-light</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20101104/03572911723</wfw:commentRss>
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<pubDate>Wed, 3 Nov 2010 09:01:49 PDT</pubDate>
<title>Campaign Says It Was Duped Into Believing Morgan Freeman Would Do A Political Ad For Their Candidate</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20101102/18003411696/campaign-says-it-was-duped-into-believing-morgan-freeman-would-do-a-political-ad-for-their-candidate.shtml</link>
<guid>http://www.techdirt.com/articles/20101102/18003411696/campaign-says-it-was-duped-into-believing-morgan-freeman-would-do-a-political-ad-for-their-candidate.shtml</guid>
<description><![CDATA[ Apparently, the campaign of BJ Lawson, who just lost in his bid to take a Congressional seat away from Rep. David Price in North Carolina, <a href="http://www.politico.com/blogs/bensmith/1110/Freeman_coda.html?showall" target="_blank">claimed that actor Morgan Freeman</a> did the voiceover on their recent campaign ad:
<center>
<object width="560" height="340"><param name="movie" value="http://www.youtube.com/v/5hGN3L7DOA4?fs=1&amp;hl=en_US"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/5hGN3L7DOA4?fs=1&amp;hl=en_US" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="560" height="340"></embed></object>
</center>
The campaign claimed that the ad was "resonating" with voters.  However, after the press started asking about the ad, Lawson's campaign announced that Freeman had recorded the voiceover for the ad (at less than his usual rates, implying his further support of Lawson's campaign), Freeman <a href="http://www.huffingtonpost.com/2010/11/01/morgan-freeman-bj-lawson-ad_n_777280.html" target="_blank">denounced the campaign as lying</a>, saying that he did not record the commercial, does not support the candidate and that "no one who represents me ever has ever authorized the use of my name, voice or any other likeness in support of Mr. Lawson or his candidacy." 
<br><br>
Following that, the Lawson campaign pulled down its press release announcing that Freeman had done the ad, and replaced it with an announcement <a href="http://www.lawsonforcongress.com/posts/lawson-campaign-tricked-paid-contractor-for-freeman-ad-campaign-scammed" target="_blank">claiming they were scammed by a contractor</a> named MEI Political, and going so far as to actually post the contract and emails that had gone back and forth over this (which show a fee of $4,500, which you have to assume is way below Freeman's going rate):
<center>
<object id="_ds_59256667" name="_ds_59256667" width="560" height="550" type="application/x-shockwave-flash" data="http://viewer.docstoc.com/"><param name="FlashVars" value="doc_id=59256667&mem_id=715794&doc_type=pdf&fullscreen=0&allowdownload=1&showrelated=0&showotherdocs=0" /><param name="movie" value="http://viewer.docstoc.com/"/><param name="allowScriptAccess" value="always" /><param name="allowFullScreen" value="true" /></object>
<br><br>
<object id="_ds_59256851" name="_ds_59256851" width="560" height="550" type="application/x-shockwave-flash" data="http://viewer.docstoc.com/"><param name="FlashVars" value="doc_id=59256851&mem_id=715794&doc_type=pdf&fullscreen=0&allowdownload=1&showrelated=0&showotherdocs=0" /><param name="movie" value="http://viewer.docstoc.com/"/><param name="allowScriptAccess" value="always" /><param name="allowFullScreen" value="true" /></object>
</center>
If you look at the emails the campaign had initially suggested a play on the "Priceless" Mastercard commercials, and the guy from MEI warns them that Mastercard has been known to sue over such copying, so at least that time MEI knew to warn about potential intellectual property issues.
<br><br>
The guy from MEI Political, Ben Mathis, has <a href="http://web.mac.com/benmathis/Site_3/PRESS_RELEASES.html" target="_blank">responded with a press release</a> and by releasing <i>other</i> emails himself, claiming that all along he was clear that it was Morgan Freeman's "voice double" and stating that the campaign could not claim Morgan Freeman made the ad:
<center>
<object id="_ds_59352151" name="_ds_59352151" width="560" height="550" type="application/x-shockwave-flash" data="http://viewer.docstoc.com/"><param name="FlashVars" value="doc_id=59352151&mem_id=715794&doc_type=pdf&fullscreen=0&allowdownload=1&showrelated=0&showotherdocs=0" /><param name="movie" value="http://viewer.docstoc.com/"/><param name="allowScriptAccess" value="always" /><param name="allowFullScreen" value="true" /></object>
</center>
Reading through all of this, it does sound like there was some pretty serious miscommunications going on.  From what's been presented by both sides, it looks like MEI told the Lawson campaign that it had some actual celebrities and some voice doubles, making it clear in the initial email that with the doubles, you couldn't name the celebrities (even though many people would "recognize" the voice).  However, it was in a later email that MEI appears to have lumped all of the available "voices" together in one list, and the Lawson campaign either did not remember the difference or chose to ignore it.  However, it sure does look like the contract the two parties signed flat-out names Morgan Freeman, and not his double, which could put MEI in hot water.  MEI also claims that it made clear, via a phone conversation, not to use Freeman's name, and the Lawson campaign did so anyway.  Also, amusingly, he asks them to keep his name out of it, which the campaign clearly did not do.
<br><Br>
Of course, it will be interesting to see if any lawsuits actually come out of this, and who, exactly, sues whom?  Freeman, conceivably, could have a publicity rights claim against the campaign and against MEI.  The campaign could have a suit against MEI as well if it can make the argument that the contract indicates it would actually be Freeman, not his voice double.  And, you could even see how MEI might have a case against the campaign, after the campaign claimed it was "tricked" by "a political mercenary."   Of course, with the election over, and Lawson losing, they all might just let it slide...  Either way, while some might claim this is a perfect example of where <a href="http://www.techdirt.com/articles/20101020/03475811495/the-rise-of-a-new-intellectual-property-category-ripe-for-trolling-publicity-rights.shtml">publicity rights</a> make sense, it seems like good old traditional <i>fraud</i> statutes and contract law could handle any necessary legal lifting here instead.<br /><br /><a href="http://www.techdirt.com/articles/20101102/18003411696/campaign-says-it-was-duped-into-believing-morgan-freeman-would-do-a-political-ad-for-their-candidate.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101102/18003411696/campaign-says-it-was-duped-into-believing-morgan-freeman-would-do-a-political-ad-for-their-candidate.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101102/18003411696/campaign-says-it-was-duped-into-believing-morgan-freeman-would-do-a-political-ad-for-their-candidate.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>publicity-rights?</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20101102/18003411696</wfw:commentRss>
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<pubDate>Fri, 22 Oct 2010 09:48:51 PDT</pubDate>
<title>Supreme Court Chief Justice Admits He Doesn't Read Online EULAs Or Other 'Fine Print'</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20101021/02145811519/supreme-court-chief-justice-admits-he-doesn-t-read-online-eulas-or-other-fine-print.shtml</link>
<guid>http://www.techdirt.com/articles/20101021/02145811519/supreme-court-chief-justice-admits-he-doesn-t-read-online-eulas-or-other-fine-print.shtml</guid>
<description><![CDATA[ We just recently wrote about how circuit court judge Richard Posner had admitted to <a href="http://www.techdirt.com/articles/20101001/14083711252/if-even-the-best-legal-minds-don-t-read-boilerplate-contracts-why-are-they-considered-binding.shtml">not reading the boilerplate legalese</a> on his mortgage agreement, and wondered why such things were then considered binding.  Taking it up a notch, now Supreme Court Chief Justice John Roberts has <a href="http://www.abajournal.com/news/article/chief_justice_roberts_admits_he_doesnt_read_the_computer_fine_print/" target="_blank">admitted that he doesn't read the fine print on websites or medicines</a> and that this "is a problem."
<blockquote><i>
Answering a student question, Roberts admitted he doesn't usually read the computer jargon that is a condition of accessing websites, and gave another example of fine print: the literature that accompanies medications....  It has "the smallest type you can imagine and you unfold it like a map," he said. "It is a problem," he added, "because the legal system obviously is to blame for that." Providing too much information defeats the purpose of disclosure, since no one reads it, he said. "What the answer is," he said, "I don't know."
</i></blockquote>
Well, that's comforting.  Of course, I'm less interested in "the answer" to all that small type, and more interested in the answer to the question of how those things can be considered legally binding when even the Chief Justice of the Supreme Court doesn't read them...<br /><br /><a href="http://www.techdirt.com/articles/20101021/02145811519/supreme-court-chief-justice-admits-he-doesn-t-read-online-eulas-or-other-fine-print.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101021/02145811519/supreme-court-chief-justice-admits-he-doesn-t-read-online-eulas-or-other-fine-print.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101021/02145811519/supreme-court-chief-justice-admits-he-doesn-t-read-online-eulas-or-other-fine-print.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>so-why-are-they-binding?</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20101021/02145811519</wfw:commentRss>
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<item>
<pubDate>Mon, 18 Oct 2010 16:10:45 PDT</pubDate>
<title>Can The University Of Kentucky Ban Student Newspaper From Being Distributed At Its Stadium?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20101018/03435511468/can-the-university-of-kentucky-ban-student-newspaper-from-being-distributed-at-its-stadium.shtml</link>
<guid>http://www.techdirt.com/articles/20101018/03435511468/can-the-university-of-kentucky-ban-student-newspaper-from-being-distributed-at-its-stadium.shtml</guid>
<description><![CDATA[ College sports have become a big business.  That's no secret.  We see it all the time, and at times that's used to stifle <a href="http://www.techdirt.com/articles/20091231/1111117566.shtml" target="_blank">elements of free speech</a>, such as in making fan-created t-shirts and such illegal.  Now it's going even further.  <a href="http://twitter.com/#!/romenesko/statuses/27475421685" target="_blank">Romenesko</a> points us to the news that the University of Kentucky, a state-funded university, has <a href="http://kykernel.com/2010/10/14/uk-stops-kernel-distribution-at-stadium/" target="_blank">banned the distribution of a free student newspaper</a> at the University's Commonwealth Stadium before football games.  Apparently, UK has a marketing contract with sports licensing giant IMG, which they believe gives IMG a monopoly on any media efforts around the stadium.  Of course, plenty of folks are pointing out that this is a pretty clear First Amendment problem.  It's a public government-owned entity, forbidding the distribution of speech.  The contract with IMG is meaningless as you can't contract away others' free speech rights.  It sounds like folks are gearing up for a legal challenge here, which should be worth following.<br /><br /><a href="http://www.techdirt.com/articles/20101018/03435511468/can-the-university-of-kentucky-ban-student-newspaper-from-being-distributed-at-its-stadium.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101018/03435511468/can-the-university-of-kentucky-ban-student-newspaper-from-being-distributed-at-its-stadium.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101018/03435511468/can-the-university-of-kentucky-ban-student-newspaper-from-being-distributed-at-its-stadium.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>hello-first-amendment</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20101018/03435511468</wfw:commentRss>
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