Tag Archives: copyright

CDAS Named a Top Tier Firm, Nationally, for Entertainment Law and Trademark Law in U.S. News – Best Lawyers® “Best Law Firms in America 2020,” and achieved High Rankings in Copyright and Media Law

CDAS achieved a Tier 1 ranking nationally for Entertainment Law – Motion Pictures & Television as well as Trademark Law. The firm was also ranked nationally in Tier 2 for Copyright Law. Within New York City, CDAS was ranked in Tier 1 for Entertainment Law – Motion Pictures & Television, Copyright Law and Trademark Law, and in Tier 3 for Media Law.

These competitive rankings are based on extensive client and peer review, focused on practice group expertise, responsiveness, understanding of business needs, cost-effectiveness, and other important parameters. Inclusion in “Best Law Firms” is considered a significant achievement.

The Entertainment Industry in 2020: Four Legal and Business Issues For Consideration

By Simon Pulman and Briana Hill

1. AB5 Brings Uncertainty: The new California Assembly Bill 5 (AB5) became effective on January 1, 2020. Originally created to codify the California Supreme Court’s decision in Dynamex Operations West, Inc. v. Superior Court of Los Angeles (2018) 4 Cal.5th 903 (Dynamex), and to address the increase of misclassification of workers as independent contractors, the drafting of AB5 is so broad that it greatly expands the definition of “employee” in a way that potentially reclassifies most independent contractors as employees. This has huge potential repercussions for many companies doing business in California, including those in the entertainment industry (which has traditionally been extremely reliant on independent contractors), as companies may now need to provide full employment benefits to individuals previously characterized as independent contractors.

While there are certain statutory exemptions, the exemptions do not cover traditional entertainment job categories.  There is currently very little guidance as to how the law will be interpreted and enforced, and how it will interact with guild rules. It is incumbent on all studios, producers, networks, and other entertainment companies to watch developments closely, and to consult with knowledgeable counsel when in doubt.

2. Continued Evolution in Streaming: The rise of streaming platforms has dominated the film and episodic programming business over the past few years. 2020 is poised to bring the most significant year of change yet, as new platforms such as HBO Max, Quibi and Peacock will join the recently launched Apple TV+ and Disney+, and incumbents such as Netflix, Hulu, and Amazon. Each of these platforms is targeting a slightly different position in the marketplace, and the economics for content producers vary on a platform-by-platform basis based on the rights and territories that each discrete platform is presently seeking to acquire.

From a deal-making perspective, it is possible that the increased competition will put pressure on platforms to offer greater transparency into the performance of their content and potentially more meaningful participation for creators in the upside of successful series and movies. Additionally, it will be interesting to see if Netflix blinks with respect to its (to date) steadfast insistence on dropping all series on an all-at-once “binge” model, given the plaudits and positive buzz that Disney+ has received for releasing episodes of The Mandolorian on a weekly basis. Finally, Quibi is a truly interesting new entrant that is planning some fascinating creative experiments with short form and interactive content, in addition to providing producers with a business model that is arguably more favorable than some of its competitors.

3. Exclusivity Reigns in Podcasting: 2019 was a year of huge growth and continued maturation for the podcast industry. Mainstream coverage of the industry expanded significantly, many major celebrity names launched podcasts for the first time, and a number of big media conglomerates entered the space or materially increased investments in their podcast divisions. The maturing of the podcast industry has had notable effects on the business side of this burgeoning medium. Participants at all levels in the value chain have started to stake a claim to ownership of, or participation in, podcast rights and revenues. Moreover, the deal-making has become much more sophisticated. Prior to 2019, the dominant podcast distribution model was very simple – make your podcast available on as many ad-supported platforms as possible, and split revenues between stakeholders (usually the creator and the production company or network) (often in a straight 50/50 configuration). This began to change during 2019 as certain companies grew and engaged more experienced representation, and entrants such as Spotify and Luminary started to lock down exclusive rights to content.

Expect the podcast content arms race to heat up in 2020, as high-profile shows and creators commit exclusively to platforms in exchange for sizeable minimum guarantees. However, platforms that offer podcasts in combination with music (such as Spotify, Apple, iHeart, and Pandora) would appear to be best positioned in the market versus pureplay podcast subscription outlets because of their existing subscriber bases and the value proposition of bundling music with podcast (and, indeed, expect 2020 to be the year of the “music podcast”).

4. Gaming Grows: As Netflix Chairman and CEO Reed Hastings famously opined, Netflix is primarily competing with Fortnite rather than with other SVOD platforms. Expect 2020 to be a huge year for gaming, with the release of several big titles (such as Cyberpunk 2077 and The Last of Us 2) being followed by the impending launch of much-anticipated new consoles Playstation 5 and Xbox Series X in the fall.

The continued growth of gaming will fuel a corresponding growth in esports and “game-adjacent content culture” – the creation, consumption and interactive fan participation in content around the culture of videogames, via platforms such as Twitch, Mixer, YouTube and Instagram. All of the next-generation gaming platforms will include built in recording and streaming capabilities allowing gamers to easily create media and engage with other users. While this arguably implicates copyright issues for rightsholders, many of the game companies have taken a permissive stance regarding streaming (and other activities, such as creating derivative works), believing it to be helpful to their business – although distributors must also be cognizant of other issues such as right of publicity.

Additionally, as discussed in a previous blog, expect a flurry of announcements during 2020 and beyond with respect to entertainment extensions of videogame properties – most notably film and TV adaptations, but also podcasts and graphic novels. A significant portion of these will probably involve the original game developers and/or publishers in a meaningful way, as rightsholders understand the importance of maintaining a strong and consistent brand across platforms.

Other sectors of the entertainment business should ignore gaming at their peril. For more, we recommend reading “7 Reasons Why Video Gaming Will Take Over” by Matthew Ball.

Fox Television Stations, Inc., et al. v. Aereokiller, LLC, et al.: Ninth Circuit Holds FilmOn X Not a “Cable System” Entitled to Compulsory License; Implicates Federal Agency Deference Doctrines

In 2014, the United States Supreme Court, in American Broadcasting Companies v. Aereo, Inc., held that unlicensed re-broadcasts of copyrighted content over the Internet constituted public performances of copyrighted works in violation of content owners’ exclusive rights under the Copyright Act; as part of its discussion, the Court analogized services like Aereo’s to “cable services.”  Emboldened by the Court’s comparison, Aereo competitor FilmOn X (formerly Aereokiller) took the “cable services” ball and ran with it.  FilmOn X has sought to brand itself as a “cable service” under § 111 of the Copyright Act, a status that would entitled it to re-transmit performances of copyrighted works without securing prior consent if it complies with certain regulations and pays a minimal statutory fee – the “compulsory license.”  FilmOn X is now fighting high-stakes copyright battles before several federal appellate courts around the country.  On March 21, the Ninth Circuit dealt a blow to FilmOn X’s western front, becoming the second federal court of appeals (along with the Second Circuit in WPIX, Inc. v. ivi, Inc.) to hold that Internet re-transmitters do not constitute “cable systems” under the Copyright Act. Continue reading

Copyright Termination Is Comin’ To Town Law360, New York

After sorting through the tangled 80-year history behind the song “Santa Claus is Comin’ to Town,” the Second Circuit recently held that rights to the Christmas classic will revert back to the songwriter’s heirs on Dec. 15, 2016. Rights to the composition, written by J. Fred Coots and Haven Gillespie, are currently held by EMI Feist Catalog Inc. According to the Second Circuit, EMI’s rights are derived from a post-Jan. 1, 1978, author-made grant that replaced and superseded a prior grant, and that is now eligible for termination.

The Second Circuit’s decision provides insight into the judicial review of termination rights, and sets out certain principles concerning the statutory calculation of termination dates. This article outlines the court’s decision in order to provide practitioners with guideposts that may be useful in determining if, and when, to terminate a grant of copyright.

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Rock the Vote: Public Performance of Music on the Campaign Trail

Election season is upon us, and while music may not be the first thing that comes to mind amidst scandals, poll numbers, and innumerable primary debates, politicians’ use of theme songs almost inevitably becomes a hot-button issue for musicians, recording artists, and lawyers.  Two presidential candidates have already angered artists who feel their music was misused during campaign rallies, but like many other musicians in the past, those artists will likely need to seek vindication by means other than copyright law – whether via endorsement theories, or in the court of public opinion.

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Copyright Trumps Right of Publicity – Permitting Display and Download of Basketball Photographs (Maloney v. T3Media, Inc.)

The U.S. District Court for the Central District of California in Maloney v. T3Media, Inc. recently held that state right-of-publicity claims brought by former college basketball players complaining of photographs licensed of their likenesses without consent warranted dismissal with prejudice pursuant to California’s anti-SLAPP statute, which prohibits suits aimed at inhibiting free expression.  Members of the 2001 NCAA Division III champion Catholic University basketball team sued T3Media, a cloud storage, hosting, and digital licensing service, alleging violations of their rights of publicity when photographs of the players from the NCAA championship were displayed and made available for licensing on T3Media’s website.

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CDAS Partner Nancy Wolff’s Webinar Available Online

Recently, CDAS Partner Nancy Wolff hosted a webinar for the Digital Media Licensing Association which answered common questions about when you need releases when using visual images. The webinar is now available online for free, and is a useful resource for anyone publishing or displaying still or motion images and wondering whether permissions are needed from the subjects or property owners depicted in the content. The webinar footage can be found here.

Copyright on the Wild Side

With a Push of a Button, Monkey Raises New Question About Copyright Authorship and Ownership of Photographs

It’s been theorized that if you give a million monkeys a million typewriters, they will eventually produce the entire collected works of William Shakespeare. It’s been proven, however, that if a troupe of monkeys steals a camera, one will eventually take a really good selfie. By now you’ve probably heard this story, but just in case, the facts are as follows.

In 2011, British wildlife photographer David Slater traveled to the forests of Indonesia, equipment in tow, to follow and photograph the endangered crested black macaque species of monkey. According to news reports, during his trip, Slater set up his camera and tripod and briefly stepped away, and when he came back, a group of macaques had, in the words of The Telegraph, “hijacked” his camera, ultimately taking hundreds of shots. Many of the shots were, as expected, blurry or otherwise unusable, but several actually came out quite well, including a crystal-clear selfie of a female macaque showing off her large amber eyes and huge toothy grin. Slater sold the image to several publications, and soon the story – and the selfie – caught fire in the media, filling inches in the Guardian, the Telegraph, and the Washington Post, among other media outlets. The selfie soon ended up on Wikimedia Commons (owned by the parent company of Wikipedia), which is advertised as a repository of over 22.3 million free public domain images. Continue reading

How And Why Aereo Got To The Supreme Court

Note: This blog is cross-posted from Law360.com with permission from Portfolio Media, Inc.

This spring, the U.S. Supreme Court will hear arguments in a case that could have significant impacts on several segments of the television industry. While it may seem unusual that a dispute centered on dime-sized antennas would capture the attention of the high court, the case captioned American Broadcasting Companies Inc. v. Aereo Inc., on certiorari from the Court of Appeals for the Second Circuit, sits in the context of a half-dozen pending litigations across the country; it also tests both the boundaries of a Second Circuit decision that the court refused to hear five years ago, and the language that Congress drafted over 35 years ago. Continue reading