Turnabout is Fair Play – Getty Sued for $1B for Copyright Violations

The Trees are Laughing at Us by daspunkt from Flickr (Creative Commons License)

The Trees are Laughing at Us by daspunkt from Flickr (Creative Commons License)

Getty Images is known for sending letters to people suspected of using their images without purchasing a license. These demand letters essentially say, “By using our image, you’ve agreed to pay for a license. Pay $XXX by this date or we will sue you.”

They may have started the trend of other photographers sending similar demand letters when people use their images without permission. (I’ve sent these type of letters and counseled clients who have received them – usually from pulling images from a Google Image search without verifying that they had permission to use it.)

Getty sent such a letter to documentary photographer Carol Highsmith, claiming that she was violating their terms for using an image. Here’s the catch – it was a photograph that Highsmith took herself and previously shared with the Library of Congress to allow free use of her work by the general public. Highsmith has shared tens of thousands of images with the public through the Library of Congress since 1988.

Highsmith learned that Getty is claiming copyright rights to thousands of her images work and demanding payment for licenses, often without attribution to her, and adding “false watermarks” to the images. She filed a $1,000,000,000 (that’s $1B with a “B”) copyright infringement lawsuit against these agencies for the “gross misuse” of 18,755 of her photographs.

That’s a lot of photographs.
I hope they have good insurance.

But $1B?! Really?!
Actually, yes. In this case, suing for $1B makes perfect sense.

A party who adds or removes a watermark from a photo to avoid detection for copyright infringement can be fined up to $25,000 per image in addition to other financial damages for copyright infringement.
$25,000/image x 18,755 images = $468,875,000

And if a party is found to have violated this law in the last three years – which Getty has – the complaining party can ask for triple the damages.
$468,875,000 x 3 = $1,406,625,000

Looking at this, it’s easy to see how easy it is for Highsmith to reasonably request over $1B in damages. She’s also requested a permanent injunction to prohibit future use of images by Getty and the other Defendants and attorneys’ fees.

You can read the full complaint filed by Highsmith against Getty in New York Federal Court here.
So far, Getty claims they will defend themselves “vigorously.”

This could be a fun case to watch. If this case doesn’t go to trial (and most cases don’t), I hope the settlement isn’t kept completely secret behind a non-disclosure agreement. One of the recommendations I make to anyone who is a professional creative is determine in advance how you want to respond when your work is used without your permission and plan accordingly. For many people, it’s not if their work is stolen, but when.

There are a lot of issues that come into play surrounding photography, image rights, and copyright. If you want to chat more about these topics, you can contact me directly or connect with me on TwitterFacebookYouTube, or LinkedIn. You can also get access to more exclusive content that is available only to people on my mailing list, by subscribing here.

EDIT: The previous version of this post stated that Highsmith released her work to public domain. My apologies. Highsmith retains the copyright in her work, but allows others to freely use it through the Library of Congress.

Reclaiming your Copyrights

Music by Brandon Giesbrecht from Flickr (Creative Commons License)

Music by Brandon Giesbrecht from Flickr (Creative Commons License)

It was recently announced that Sir Paul McCartney filed papers in the United States to reclaim the rights to 32 songs from The Beatles’ catalog. The rights to these songs are currently owned by Sony. Yes, there is a provision (call if a loophole if you will) in the U.S. Copyright Act that allows for this.

How the Rule Works
This is a rule that applies to all creatives, not just a rule that applies to the rich and famous. You can look it up at 17 U.S.C. § 203 if you want to read it for yourself. The purpose of this rule is to five an author a “second bite of the apple” to those who may have granted a copyright transfer or license that they later regret. It protects people from being taken advantage of.

Here’s how the rule works: 35 years after the copyright assignment or license was granted or 35 years after the work was published, the author(s) can send notice to terminate this transfer or license and reclaim their rights. There’s a relatively small window in which an author must send the notice of termination with the effective date. A copy of this notice must be filed with the U.S. Copyright Office. If an author has passed away, whoever has the author’s “termination interest” in the work can send the notice – usually the author’s family.

There is one caveat to this rule – it does not apply to works made for hire.

Why More People Don’t Take Advantage of This
Why is this the first time most people are hearing about this loophole? Most of the time, it’s not worth pursuing.

At 35 years after a work was created, there is likely little or no money to be made off the work, so from a financial perspective, it’s not worth pursuing. If money is being made from the work, the author may be better off leaving their work in its current situation and the royalties keep flowing in. They don’t have to fix what’s not broken.

In Sir Paul McCartney’s case, he signed over the rights to his work decades ago, and yet he is still going strong as a musician. The BBC article on his bid to reclaim his rights specifically stated that he’s trying to obtain the publishing rights in his music. John Lennon’s share of the rights in the McCartney-Lennon catalog will remain with Sony.

If you signed away your copyright in a work and you wish to reclaim your rights, speak to a copyright attorney about your options. If you have questions about copyright or intellectual property ownership that you want to discuss with me, you can contact me directly or connect with me on TwitterFacebookYouTube, or LinkedIn. You can also get access to more exclusive content that is available only to people on my mailing list, by subscribing here.

Legal Issues if you Outsource your Blog Content

“Sam, Sam, the Gorilla Man” by Beth Rankin from Flickr (Creative Commons License)

I don’t believe in outsourcing my blog content, but I understand that some people do because they’re busy, or they’re afraid they’re not a good writer, or they’re not dedicated to maintaining their site. Whatever the reason, it happens. If you fall into this boat, there are some legal ramifications you need to be aware of and plan for.

Regardless of who you use to write your blog material, you should review every post before it goes up to ensure that the content is accurate, especially if you work in a field where misstatements can happen and readers could be harmed if they rely on your blog’s information.

Copyright
If you outsource your blog to a third party, your content creator owns the copyright in whatever they create for you unless you have a contract that states otherwise. Without this contract, they own everything and, at most, you have an implied license to use it on your site. If you want to repurpose a blog post, you have to get your writer’s permission; otherwise, you could commit copyright infringement by reusing the material from your own site.

Indemnification
When your writer creates a post, you often do not know what source material they used or where they got the images for each post. (Yes, every blog post needs an image.) There is always a risk that your writer will rip off someone else’s verbiage or image without your knowledge.

If you do not review each post before it is released on your site, there is a risk that your writer could post something defamatory or harmful to another person. The alleged victim in that case might sue you for damages because they were injured because of your website. To avoid this problem, you can protect yourself with an indemnification clause that holds the blogger responsible for the damage they cause or at least requires them to a pay your attorneys’ fees and/or damages assessed against you.

Clear Contracts
If you work with a third party content creator, you want a clear contract that explains all the pertinent aspects of your relationship – what they will create for you, deadlines, who is responsible for website problems, if they’re allowed to write similar content for others, how you’re going to resolve problems, who will own the copyright, and if the writer can use posts as work samples if they assign the copyright to you.

I love contracts. If the term “contract” is a turn-off for you, think of it as a relationship management document. All it is a document that lays out how your relationship is going to work. I made a video this week about how awesome contracts are.

When you work with third party content creators, not having a contract is not an option. If you want to chat more contracts for your content creators, connect with me on TwitterFacebookYouTubeLinkedIn, or you can email me. You can also check out my books about the legalities of blogging:

Please subscribe to the Carter Law Firm monthly newsletter and visit my homepage for more information about Carter Law Firm.

Highlights on Copyright & Publishing from the Indie Author Conference

Rockin' my Magic Red Chucks at the Changing Hands Indie Author Conference - Photo by Jeff Moriarty (used with permission)

Rockin’ my Magic Red Chucks at the Changing Hands Indie Author Conference – Photo by Jeff Moriarty (used with permission)

I had the pleasure of speaking at the Changing Hands Indie Author Conference over the weekend. It was a day packed with sessions for indie authors and aspiring indie authors on how to publish and market a book. I did two sessions called “Legally Speaking” on how copyright applies to book writers. Here are the top 10 highlights from my presentation and the audience’s questions.

1. You have copyright rights in your work the moment your ideas are captured in any tangible medium (paper, computer file, etc.). You still have your rights even if you forget to put a copyright notice in your book.

2. Having a copyright gives you the exclusive right to copy, display, distribute, perform, and make derivative works based on your work. These rights last for the duration of your life, plus 70 years if your work was created after January 1, 1978.

Close-up of my Magic Red Chucks - photo by Pam Slim (used with permission)

Close-up of my Magic Red Chucks – photo by Pam Slim (used with permission)

3. You don’t have to register your copyright with the U.S. Copyright Office to get your rights. You do have to register if you want to sue for infringement.

4. You should submit you application to register the copyright in your book before you make it available for sale.

5. If you live in a community property state (like Arizona), copyrights acquired during the marriage are community property unless you have a prenuptial agreement or spousal agreement that states otherwise.

6. Make sure you understand the difference between a copyright assignment and a copyright license. In the former, you give away your copyright rights; in the latter you retain copyright ownership but grant someone permission to use some of your rights.

7. If you are incorporating other works, characters from existing works, or trademarked products, consult an attorney to make sure you understand what legal risks you’re taking with your project.

8. You will need works made for hire contracts or copyright assignments for artists who contribute to your book (i.e., illustrations, graphics, forward or afterward by another writer, cover art) to give you the copyright in what they create. Consider adding a provision to the contract that states the contributor indemnifies you if you’re accused of copyright infringement because of their contribution.

9. When you create a budget for your book, plan to pay for a lawyer for a few hours to draft or review your contracts. Use a copyright lawyer, not your lawyer buddy who specializes in personal injury law.

10. If you have a publisher, read your contracts carefully to make sure you understand what rights you’re giving up (if any) and how and when you’ll be paid. Don’t sign anything you don’t understand because you’ll probably be stuck with the contract as long as it’s not illegal. Never be afraid to ask for clarification.

If you want to chat more about this topic, please can connected with me on TwitterFacebookYouTubeLinkedIn, or you can email me. You can also subscribe to the Carter Law Firm monthly newsletter.
Please visit my homepage for more information about Carter Law Firm.

Why You Have to Respond to Suspected IP Infringement

Cease and Desist by H.L.I.T. from Flickr (Creative Commons License)

Cease and Desist by H.L.I.T. from Flickr (Creative Commons License)

A few weeks ago we all had a good laugh when Jeff Briton, owner of Exit 6 Pub and Brewery in Cottleville, Missouri got a cease and desist letter from Starbucks when he named one of his craft beers “Frappicino.” Starbucks said this was too similar to their Frappuccino and even took the liberty of contacting the beer review website Untappd to get the Frappicino beer listing removed.

Briton responded with a letter and a check for $6 – the profit he made from selling the beer to the three people who reviewed it on Untappd. If you haven’t read this letter yet, go do it. It’s hilarious.

My hat’s off to Briton for writing such a brilliant response and turning this situation into an awesome opportunity to promote Exit 6. Some people might say that Starbucks’ lawyers were being jerks for sending a cease and desist letter to the little guy who wasn’t their competition anyway. But it was what Starbucks had to do to protect its intellectual property.

When you have a copyright or a trademark and you know that someone is using your intellectual property without your permission and you do nothing, you send a message that you don’t care about protecting your intellectual property rights. If you let the little guys get away with things like Frappicino beer and then one of your big competitors does something similar and you try to lay the smack down on them, your competitor will have an argument that your track record shows that you let others use your property without permission or penalty. By not protecting your intellectual property, you put yourself at risk of losing your intellectual property rights.

It’s because of this risk that Starbucks has to send cease and desist letters to Exit 6 Pub. This is why I tell clients to keep an eye out for other people using their intellectual property. In trademark situations, a cease and desist letter is usually the proper response, even in situations like Frappicino beer.

This is also why I tell bloggers and photographers to be diligent about who is using their work. If they find that someone’s using their copyrights without permission, even if they’re ok with it, I often recommend they contact the alleged infringer and grant them a license after the fact and request an attribution if the infringer didn’t give them one. If they’re not ok with what the alleged infringer did, we discuss whether the artist wants to send a cease and desist, a DMCA takedown notice, a licensing agreement with a bill, or sue for infringement. There should always be a response.

If you have questions about your intellectual property rights or your strategy to protect them, please contact an intellectual property attorney in your community. If you have questions related to copyright or trademark and blogging, please check out my book The Legal Side of Blogging: How Not to get Sued, Fired, Arrested, or Killed.

If you want to chat with me more about this topic, you can connected with me on TwitterGoogle+FacebookYouTubeLinkedIn, or you can email me. You can also subscribe to the Carter Law Firm monthly newsletter.
Please visit my homepage for more information about Carter Law Firm.

Creepy New Facebook Terms of Service Coming

Facebook’s Infection by Ksayer1 from Flickr (Creative Commons License)

When I got the notice that Facebook was updating its Statement of Rights and Responsibilities and its Data Use Policy, I didn’t think much of it. If you want to use their service, you’re stuck with their terms of service. I just made a mental note to verify that my privacy changes hadn’t changed when they roll out the new policies go into effect. But then a friend told me about some of the changes that made me take a closer look.

Facebook says, “Your privacy is very important to us.” That doesn’t mean they care about keeping your information private. That just means they’re telling you how they’re using it.

Facebook previous terms of service put us on notice that they treat your name and profile picture like public information and they basically track all of your activities on the Facebook site and mobile app – this includes when others’ tag you in a photo, status update, at a location, or if someone adds you to a group.  And don’t think about creating a profile with fake information because that’s against the rules too. When you post a photo on Facebook, you give them a “non-exclusive, transferable, sub-licensable, royalty-free, worldwide license to use” it however they want. If you delete a photo, the license ends, unless it’s been shared with others and they haven’t deleted it.

Facebook: The privacy saga continues by opensourceway from Flickr (Creative Commons License)

Facebook: The privacy saga continues by opensourceway from Flickr (Creative Commons License)

Now here’s something interesting, the old rules state you can’t tag anyone on Facebook without their consent. When’s the last time your friend asked for your permission to tag you? Facebook says tell your friends if you’re ok with them tagging you and if they refuse to respect your desire not to be tagged, then block them. (Blocking = no tagging for you)

So what’s going to be changing with Facebook? Well, they’re going to add a facial recognition program that will scan people’s photos and suggest friends to tag by comparing the photos to others’ profile pictures and other photos where you’ve been tagged. Does that sound a little Big Brother to anyone else?

I’m guessing this change is going to piss off a lot of people who know about it. I get hits on the law firm’s website every day from people who want to know if and how others can post pictures of them online or whether they can post pictures of others online. Every day.

I wonder how many people are going to change their profile picture to a photo of their pet and disallow all other tagging to avoid Facebook suggesting friends tag them when others post pictures of them. I bet more people will talk about this idea more than will actually do it.

And I don’t think this is a change but more of a clarification. The new rules say, “[Y]ou permit a business or other entity to pay us to display your name and/or profile picture with your content or information, without any compensation to you.”  It’s their site and their rules, and they probably don’t care if you don’t like it.

If you don’t like these changes, you can bitch about it but accept it or delete your account. Unlike deactivating your account, this completely removes it from Facebook.

If you want more information about the legalities of social media, please check out my book The Legal Side of Blogging: How Not to get Sued, Fired, Arrested, or Killed. If you need information or advice about a situation involving your Facebook, please contact a social media attorney in your community.

You can connect with me on TwitterGoogle+FacebookYouTubeLinkedIn, or you can email me.
You can also subscribe to the Carter Law Firm monthly newsletter.
Please visit my homepage for more information about Carter Law Firm.

How Work Made for Hire Contracts Work

Photographer Devon Christopher Adams at Ignite Phoenix #10, photo by Joseph Abburscato used with permission

Photographer Devon Christopher Adams at Ignite Phoenix #10, photo by Joseph Abburscato used with permission

If you have ever hired a third party to do photography, video work, web design, graphic design, or to create website or marketing materials for your company, you should check your contracts. If you didn’t draft it correctly, there’s a good chance you don’t own the copyright in what they created.

When you hire a freelancer or a company to create this type of content for you, you need a work made for hire contract. This contract should state that the person being hired is a contractor (not an employee) that they are being hired to create a works made for hire, and that you will own the copyright in everything they create under the terms of the contract. This contract needs to be in writing and signed before the contractor begins work on your project.

If you don’t do this, you will not own the copyright in the work. You will only have an implied license to use the work in ways specified in your verbal or written agreement. The contractor will still own the copyright in the work. If you repurpose the work in another way without the contractor’s permission, there’s a chance that you will be infringing on the contractor’s copyright. The contractor could sue you for copyright infringement or force you to buy another license to use the work. They could offer to sell you the copyright in the content too, which basically means, from your perspective, you’ll have to pay for the same work twice.

I work with companies and freelancers on both sides of this issue. I encourage companies to make sure they have a proper works made for hire in place with their contractors and to not let their contractors lift a finger until that contract is signed. I often suggest that they have provision in their contracts that states the contractor will indemnify the company against any infringement claims made against the company because of the contractor’s work. The company should make the contractor cover the attorneys’ fees and any damages if it turns out the contractor ripped off someone else’s work instead of creating the work themselves.

On the flip side, I frequently write contract templates for freelancers to ensure that they understand what rights they are retaining and which ones they are giving up. Many freelancers want contracts that give the hiring party the copyright in their work and that also give the freelancer a license to put a copy of their work in their portfolio so they can use it to obtain other jobs.  Without this license, the contractor can’t use their work in any way without risking violating the copyright that the company now owns, even though they created it.

If you are a freelancer or a company who hires third parties to create content, please contact a copyright attorney to make sure your rights and interests are protected by the terms of your contracts. You can connect with me on TwitterGoogle+FacebookYouTubeLinkedIn, or you can email me.

You can also subscribe to the Carter Law Firm monthly newsletter.
Please visit my homepage for more information about Carter Law Firm.

Publishing Contracts: Copyright Assignment vs Copyright License

The best analogy for copyright is a jar of markers where each marker represents one of your rights - 10 things: Sharpies by Crystl from Flickr

The best analogy for copyright is a jar of markers where each marker represents one of your rights – 10 things: Sharpies by Crystl from Flickr

I had the pleasure of speaking about the legalities of publishing at Changing Hands Indie Author Conference on February 9, 2013. My session covered the basics of copyright, the importance of registering your copyrights and publishing contracts. I wanted to do a recap of the two types of publishing contracts from a copyright perspective: copyright assignments and copyright licenses.

A copyright is the rights you get in your work. Your rights are created the instant you have an original work of authorship fixed in a tangible medium. As the copyright holder, you have the exclusive right to copy, distribute, display, perform, and make derivative works based on your original work. If you want to let someone publish your work, you need a copyright assignment or a copyright license. This should be a signed contract between the parties and it should be explicit about the rights you’re giving up (if any) and what you will get in return.

Copyright Assignment
When you give someone a copyright assignment, you give them your copyright. When you have a copyright assignment, you do not own your copyright anymore; the other party does. If you publish your work after you assign it to someone, you will be committing copyright infringement, even though you were the original author of the work. Some publishers require you to assign your copyright to them or else they won’t publish your work.

If you give someone a copyright assignment and you later regret the decision, you have to buy your copyright back from them. I know at least one artist who sold the copyright in his work and later purchased it back because it was more lucrative for him to control it.

Copyright License
If you grant someone a copyright license, you retain ownership of your copyright and you give the other party permission to use some or all of your copyright rights. You may grant a publisher the rights to publish your work in print and/or as an ebook but retain the right to create an audio version of your work. J.K. Rowling retained her internet rights to the Harry Potter series when she negotiated her contract with her publishers, which is why she could create Pottermore.

If you license your work, the license should explicit state whether the license is exclusive or non-exclusive, time-limited or perpetual, and clearly state how you will be compensated for granting the other party the license.

Publishing contracts are complicated and it’s best to have a lawyer review the contract before you sign it to ensure you understand what rights you’re giving up and what rights you get to keep. As always, if there’s a portion of a contract that you don’t understand, don’t sign it.

I also created a video this week about the difference between copyright assignments and copyright licenses here.


You can connect with me via TwitterGoogle+FacebookYouTube, and LinkedIn, or you can email me.
Please visit my homepage for more information about Carter Law Firm.