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December 2017

Submitted by: Michael Q. Walshe, Jr.

 

Interesting IP Cases

 

It's been an interesting few weeks in the literary and music worlds.

 

A California federal judge recently declined to dismiss a lawsuit by Dr. Seuss Enterprises LP seeking to block a parody book titled "Oh, the Places You'll Boldly Go."  The book is a mash up of Star Trek and Dr. Seuss.  The defendants' claim that their actions were protected by a fair use defense, but the court disagreed.  This case bears watching as the number of parody mash ups continues to grow.  The case is Dr. Seuss Enterprises, LP v. ComicMix LLC, case no. 3:16-cv-02779, U.S. District Court for the Southern District of California.

 

A Nevada writer brought suit last week in Illinois federal court claiming that the author of the novel "Gone Girl" and producers of the movie stole ideas from her unproduced screenplay "Out of the Blue."  The case is Leslie Weller v. Gillian Flynn, et al., case no. 1:17-cv-08799, U.S. District Court for the Northern District of Illinois, Eastern Division.

 

The estate of the late artist Prince recently brought suit against a man who posted video recordings of six Prince songs to YouTube.  YouTube immediately removed the allegedly infringing videos from its site.  Comerica Bank & Trust N.A. v. Kian Andrew Habib, case no. 1:17-cv-12418, U.S. District Court for the District of Massachusetts.

 

2018 Winter Meeting – Amelia Island

 

We'd like to plan a section social event at the 2018 Winter Meeting.  Please let me know if you have any ideas or preferences (e.g., breakfast meeting, lunch meeting, cocktails, etc.) for this event.

 

We will be having a section call in advance of the meeting.  More information on that in next month's newsletter

 

2018 Annual Meeting -- Maui

 

We've already started planning our section presentation for the 2018 Annual Meeting in Maui.  Our topic will be an expansion of the Insights article that is being prepared on cannabis law.  We expect several other sections to want to participate.  If you would like to help plan the presentation and participate, please let me know.  I can be reached at mwalshe@stonepigman.com.

 

Monthly E-Newsletter

I'm also happy to consider submissions for this newsletter.  Submissions are due by the 10th of the month, so feel free to send your submissions before then. 

 

Membership

 

We're always on the lookout for new members for the FDCC and, especially, our section.  Please pass on the names of any prospects you may have.  To date, I have not received any suggestions for new members.  Please put some thought into this over the next few weeks so that we can meet our section obligation for submitting prospective names for membership.

 

Closing Thought

 

Always borrow money from a pessimist.  He won't expect it back.

 

I hope that each of you has a very happy holiday season and a Happy New Year.

 

 



November 2017

Submitted by: Michael Q. Walshe, Jr.

 

Interesting IP Cases

 

Medtronic, Boston Scientific, St. Jude Medical S.C., Inc., and Biotronik, Inc. succeeded in having lawsuits brought against them by Imran Niazi alleging infringement of a cardiac catheter patent dismissed because none of the defendants had a regular place of business in the Western District of Wisconsin.  The judge saw no reason to deviate from the rule recently pronounced by the Supreme Court in TC Heartland despite the fact that all the defendants had sales representatives living in the district.  The court noted that while the defendants may be doing business in the district, they did not maintain a place of business in the district.  See Niazi v. St. Jude Medical S.C., Inc., No. 3:17-cv-00183; Niazi v. Boston Scientific Corp., No. 3:17-cv-00184; Niazi v. Biotronik, Inc., No. 3:17-cv-00185; and Niazi v. Medtronic, Inc., No. 3:17-cv-00283.

 

A Nevada federal judge recently ruled that Johnny Love Vodka was not entitled to a jury trial in its trademark infringement lawsuit against Beam, Inc. regarding Beam's use of lipstick imprint on its Pucker flavored vodka products.  The court noted that the only potential jury issue was for an accounting of profits and that a request for accounting and disgorgement did not give the plaintiff the right to a jury trial.  JL Beverage Co., LLC v. Beam, Inc. and Jim Beam Brands Co. et al, No. 2:11-cv-00417, United States District Court for the District of Nevada.

 

2018 Winter Meeting – Amelia Island

 

We'd like to plan a section social event at the 2018 Winter Meeting.  Please let me know if you have any ideas or preferences (e.g., breakfast meeting, lunch meeting, cocktails, etc.) for this event.

 

We will be having a section call in advance of the meeting.  More information on that in next month's newsletter.

 

Insights Article

 

As reported last month, our section is responsible for an Insights article in January 2018.  The approximately 1200-word article should focus on a practical topic.  Section vice-chair, David Jaroslaw, is planning a fascinating article on cannabis regulation.  I'm sure that David would be willing to accept assistance with this article.  Please let me or David know if you would be interested in helping out with the article.  I can be reached at mwalshe@stonepigman.com, and David can be reached at david.jaroslaw@gmlaw.com.

 

Monthly E-Newsletter

 

I'm also happy to consider submissions for this newsletter.  Submissions are due by the 10th of the month, so feel free to send your submissions before then.

 

Membership

 

We're always on the lookout for new members for the FDCC and, especially, our section.  Please pass on the names of any prospects you may have.

 

Closing Thought

 

Haikus are easy.

But sometimes they don't make sense.

Refrigerator.

 

 

 

 

October 2017

 

Interesting IP Case

 

On October 4, 2017, legendary crooner Meat Loaf was sued for copyright infringement in California federal court.  The plaintiff, Enclosed Music LLC, claims that Meat Loaf's stole his hit "I'd Do Anything for Love" from songwriter Jon Dunmore Sinclair.  The case is Enclosed Music LLC v. Steinman et al., No. 2:17-cv-07304 in the United States District Court for the Central District of California.

 

2018 Winter Meeting – Amelia Island

 

At the 2018 Winter Meeting, the Intellectual Property Section will be presenting with a new partner – the Life, Health, and Disability Section.  Neil Hartzell from the IP Section and Bill Demlong from Life, Health, and Disability will present:  "Intellectual Property Issues Every Insurer Should Consider."  Topics will include copyrights for insurance policies and patent troll litigation.  Please plan to attend this session in Amelia.

 

Writers Needed

 

Our section is responsible for an Insights article in January 2018.  The approximately 1200-word article should focus on a practical topic.  Please let me know if you would be interested in writing this article.

 

I'm also happy to consider submissions for this newsletter.  Submissions are due by the 10th of the month, so feel free to send your submissions before then. 

 

You can reach me at mwalshe@stonepigman.com or at (504) 593-0881.

 

Membership

 

We're always on the lookout for new members for the FDCC and, especially, our section.  Please pass on the names of any prospects you may have.

 

Closing Thought

 

The meaning of opaque is unclear.



SEPTEMBER 2017


As More States Legalize Marijuana, Legal Sellers Look for Ways to Protect Their Trademarks

By the end of 2016, marijuana was either fully or medically legal in 29 states.  But sellers that want to enter the industry have had issues with registering their marks.  Trademarks for "unlawful" uses are barred from registration by the Lanham Act.  This means that marks used in connection with the sale of marijuana cannot be registered because marijuana remains a controlled substance that is illegal under federal law.


So far, the United States Patent & Trademark Office has upheld this ban.  In a case arising out of Washington, where marijuana is fully legal, the Trademark Trial and Appeal Board (the "TTAB") upheld the examining attorney's refused to register the mark HERBAL ACCESS for "retail store services featuring herbs."  The applicant had not specifically listed marijuana as an herb being sold, but the TTAB found that it was proper for the examining attorney to rely on evidence from the applicant's website regarding its marijuana sales to support rejection of the application.


In a later case, another applicant from Washington was equally unsuccessful despite taking a different position regarding registration of its mark.  The applicant, a company called JuJu, argued that even though marijuana was illegal, because the Department of Justice had decided not to prosecute marijuana businesses in legal jurisdictions, that was sufficient to make marijuana legal for trademark purposes.  The TTAB rejected that argument, finding that the Department of Justice's position, which had been outlined in a document known as "The Cole Memo" did not supersede the Controlled Substances Act.


Proponents of allowing registration of marijuana marks argue that allowing registration of the marks protects not only the businesses selling marijuana, but also protects consumers from purchasing fraudulent or dangerous imitations.


This is certainly an issue to watch in the future.

 

JULY 2017


Supreme Court Finds the Lanham Act’s Disparagement Clause Unconstitutional

On June 19, 2017, the Supreme Court issued its decision in Matal v. Tam, No. 15-1293.  The case involved a challenge by the Asian rock band The Slants to the United States Patent & Trademark Office’s (“PTO”) denial of registration of the band’s name as a trademark.  Section 2(a) of the Lanham Act (15 U.S.C. Sec. 1052(a)) authorized the PTO to refuse registration of any mark that the trademark examiner found to be disparaging.  The Slants contend that they had chosen their name in order to reclaim what had become a derogatory term for Asian-Americans and argued that Section 2(a)’s disparagement clause was unconstitutional infringement on free speech.  The Supreme Court agreed, holding that the disparagement clause violates the free speech clause of the First Amendment.

This is an issue that the Intellectual Property Section has followed for some time.  The more well-known case involving the disparagement clause involved the PTO’s decision to cancel six trademarks owned by the Washington Redskins.  At the 2015 Winter Meeting, the Intellectual Property section presented on the Redskins matter and discussed the case law under the disparagement clause at some length.  Interestingly, at that time, the majority of courts had rejected First Amendment challenges to the disparagement clause.  There is no doubt that the Tam decision is a positive result for the Washington Redskins.  It will be interesting to see if the decision encourages others to seek registration of what may be considered disparaging terms or phrases as trademarks.

 

JUNE 2017

 

On May 22, 2017, the Supreme Court issued its decision in TC Heartland LLC v. Kraft Food Group Brands LLC.  The case involved an interpretation of the venue provision for patent infringement lawsuits, 28 U.S.C. Section 1400(b).  The statute provides that patent infringement lawsuits “may be brought in the judicial district where the defendant resides, or where the defendant has committed acts of infringement and has a regular and established place of business.”  In 1957, in Fourco Glass Co. v. Transmirra Products Corp., the Supreme Court held that, for purposes of Section 1400(b), a domestic corporation resides only in its state of incorporation.  At issue in TC Heartland was whether amendments to the general venue statute, 28 U.S.C. Section 1391, necessitated a change in the Fourco decision, which several lower courts had endorsed.  Ultimately, the court decided that no change was needed and affirmed its earlier decision in Fourco.

 

Commentators discussing TC Heartland believe that it will limit the ability of so-called “patent trolls” to bring patent infringement lawsuits in what they perceive to be favorable venues instead of the defendant’s state of incorporation.



MAY 2017


Lost Profit Calculations in Patent Cases Clarified In Recent Federal Circuit Decision

 

In March 2017, The Federal Circuit issued its decision in Mentor Graphics Corp. v. EVE-USA, Inc. 851 F.3d 1275 (Fed. Cir. 2017). This decision provides some needed guidance on how lost profits are calculated in patent cases, an area where there had been conflicting decisions in the district courts. The underlying dispute concerns a patent for a feature of an emulator, a machine that tests for bugs in computer chips.


This was a complex case with a long history. In the district court, the jury found that the defendant had infringed on two features of the plaintiff’s patent and awarded the plaintiff $36 million. On appeal, the defendant argued that the $36 million damage award was improper as it should have reflected an apportionment analysis that factored in non-infringing features for product sales. In other words, defendant argued that plaintiff was not entitled to the lost sales, but only the value attributable to plaintiff’s features of the emulator. The Federal Circuit disagreed and held that once the four Panduit test factors are met,[1] apportionment is taken into consideration as lost profits are tied to “specific claim limitations and ensure that damages are commensurate with the value of the patented features.” 851 F.3d at 1288. Thus it upheld the jury damages award. 

 

The defendant has sought a rehearing before the full panel. Stay tuned.



[1] A patentee is entitled to lost profits if it can establish (1) a demand for the patented product; (2) absence of acceptable non-infringing alternatives; (3) manufacturing and marketing capability to exploit the demand; and (4) the amount of profit it would have made. Panduit Corp. v. Stahlin Bros. Fibre Works, 575 F.2d 1152, 1156 (6th Cir. 1978)

 

more Calendar

1/22/2018
Webinar - Succession Planning for In-House Counsel

2/25/2018 » 2/28/2018
2018 Winter Meeting - Amelia Island

2/27/2018
Professional Women's Forum 2018

4/6/2018 » 4/8/2018
TechU

5/20/2018 » 5/23/2018
Litigation Management College

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