Ping® by Adlerlaw January 2024 – A Brief Comparison of NY and IL NIL laws.

This month’s issue of Ping® highlights some trends in digital advertising. On June 29th, 2021, Illinois passed a Name, Image, Likeness (NIL) law for their colleges and institutions allowing a student-athlete to earn compensation commensurate with market value while enrolled at a postsecondary educational institution, and obtain and retain a certified agent for any matter or activity relating to such compensation.  This has prompted some discussions around different states treatment of right of publicity laws. This month’s issue of Ping® briefly compares NY and IL NIL laws.

Illinois vs New York Right of Publicity Acts: Key Differences and Protections

A Brief Comparison of the Illinois & New York Right of Publicity Acts

The Illinois Right of Publicity Act

The Illinois Right of Publicity Act is a state law that protects the commercial value of an individual’s identity. It prohibits the unauthorized use of an individual’s “Identity,” which means any attribute of an individual that serves to identify that individual to an ordinary, reasonable viewer or listener, including but not limited to (i) name, (ii) signature, (iii) photograph, (iv) image, (v) likeness, or (vi) voice. The act also allows individuals to transfer their right of publicity to their heirs after death. However, the Illinois law is unique in that it provides for a broad definition of “commercial purpose,” which includes any use that is “primarily intended for commercial advantage or monetary gain.” This means that even non-commercial uses of an individual’s identity could be considered a violation of the law if they are intended to promote a product or service.

Learn More About Illinois Right of Publicity Act

The New York Right of Publicity Act

The New York Right of Publicity Act is another state law that protects an individual’s right to control the commercial use of their name, image, or likeness. However, unlike the Illinois law, New York’s law only applies to uses for advertising or trade purposes. This means that individuals in New York may have less protection against non-commercial uses of their identity. Additionally, the New York law does not provide for the transfer of an individual’s right of publicity after death, meaning that the right to control the commercial use of their identity ends when they pass away.

However, the New York Act provides some post-mortem protection for certain commercial exploitations of individuals’ rights of publicity for 40 years after death for those persons whose publicity rights had commercial value, at the time of or due to, their death. There are a number of other limitations, exceptions and nuances, including that protections only arise from deaths after May 29, 2021.

Learn More About New York Right of Publicity Act

Ping® By AdlerLaw – NYC Written Contracts & Freelance Workers

Ping® by Adlerlaw Reminder: NYC Requires Written Contracts For Freelance Workers

New York City’s Freelance Isn’t Free Act defines freelance workers as any individual hired or retained as an independent contractor by a hiring party to provide services for compensation. Commonly referred to as gigs, tasks, projects, side or contingent work, working on contract or spec, freelancing, contracting, subcontracting, consulting, moonlighting, entrepreneurship, alternative arrangements, self-employment, etc., you can contact DCWP if you have questions about classification as a freelance worker, independent contractor, or employee.

If you employ independent contractors in New York City (NYC), you may need to have written contracts with your workers. Since May 15, 2017, NYC’s Freelance Isn’t Free Act (the “Act” or “FIFA”) established and enhanced protections for freelance workers, a/k/a “independent contractors.” The Act provides the right to a written contract between the hiring party and the contractor, the right to be paid timely and in full, and the right to be free of retaliation. The key terms that must be included in the written contract are (1) the work to be performed, (2) the pay for the work, and (3) the date payment will be made. The contractor and the hiring party must keep a copy of the written contract.

To read the full Article, go to adler-law.com or click here.

Ping® By AdlerLaw – Public Art & Social Media

Or, Can I post a photo of graffiti art to Instagram?

Imagine this scenario: while traversing the city on your daily walk to the office you see some interesting graffiti on the inside of a stairwell in the commercial building housing your favorite independent coffee shop. It’s clearly layers upon layers of works by who-knows-how-many artists. Next to the stairwell is a sign, with icon of a camera, and hashtag. Feeling inspired and intrepid you snap a photo, instantly uploading it to your story with a witty one-liner about undiscovered urban art.

As the caffeine works its magic you begin to recall hearing about a case where some graffiti artists won a multi-million dollar damage award when someone destroyed their graffiti. That case, known as “the 5Pointz case,” involved a building in New York displaying forty four works of graffiti by twenty one artists, for over two decades. The artists prevented the building’s destruction, but not the ownwer whitewashed the building (thus destroying the graffiti). Cohen v. G&M Realty L.P. 13-CV-05612(FB)(RLM) (E.D.N.Y. Jun. 13, 2018)

Come to think of it you, you may also recall a California case holding VARA did not apply to graffiti comprised of large scale murals on the exterior of San Francisco’s oldest continuously operating queer bar, The Stud. Shortly after the bar closed, the building owners began whitewashing and erasing the Artists’ Murals.

This is almost exactly the same fact pattern as the 5Pointz case. However, in 5Pointz the building owner consented to the artwork installation. Even though “consent of the owner” is not mentioned in the text of the VARA, reads it as a necessary element for a VARA claim based upon placement on a building to proceed. “VARA implies a requirement that an artist obtain the consent of a building owner.” Canilao v. City Commercial Invs., 20-cv-08030-EMC (N.D. Cal. Oct 18, 2022).

So if graffiti can be protected, does one need permission from the artist to photograph the work and then “publish” it to a social media platform? What if the social media account is used to promote the account owner’s own goods or services, or a third party’s brand? As many readers know, U.S. Copyright Law grants the author the exclusive rights to exploit the work, subject to certain fair use defenses.

Whether taking and publishing photos of graffiti violates the Visual Artists Rights Act (VARA) can depend on various factors, including the specific circumstances and location of the graffiti. VARA grants certain rights to visual artists, including the right to prevent the destruction, distortion, or mutilation of their work. However, graffiti may not always be protected under VARA, especially if it was created illegally or without the property owner’s permission. In such cases, the property owner’s rights may take precedence. Laws can also vary by jurisdiction.

So What Rights Are Granted To Artists By The Visual Artists Rights Act?

VARA is part of U.S. copyright law, specifically codified in Title 17 of the United States Code, Sections 106A and 113. Section 106A of the U.S. Copyright Act is the primary section that grants rights to visual artists. This includes various provisions that protect the moral rights of authors of certain works of visual art, including the rights to:

  1. Attribution: The right to have their name associated with the work.
  2. Integrity: The right to prevent intentional distortion, mutilation, or other modification of the work that would be prejudicial to the artist’s reputation.

Section 113 of the U.S. Copyright Act contains provisions related to VARA, including remedies and limitations.

It’s important to note that VARA provides protection for a specific category of visual art, such as paintings, sculptures, drawings, and certain types of photographs, but not all visual art is covered. Additionally, VARA has limitations and exceptions, and the application of VARA can vary depending on the specific circumstances and the interpretation of the law by the courts. Therefore, consulting with a legal professional for specific legal advice is recommended when dealing with VARA-related issues

VARA gives the artist the right (a) to claim or to disclaim authorship of the work, (b) to prevent intentional distortion, modification or mutilation of the work if it would be prejudicial to his or her honor or reputation, or (c) to prevent destruction of the work if it is of “recognized stature.”

These rights are not transferable by the artist, who has these rights for life (or longer for works created before December 1, 1990), even after he or she has transferred ownership of the physical work or of the copyright in the work. But the artist can waive these rights in writing.

There are some exceptions to the application of VARA, including as to works made for hire, works subject to the natural aging of materials, and the fair use of works.

Most importantly, special rules apply to works that are part of a building. VARA does not apply if the artist consented to the installation before December 1, 1990, or after that date, executed a written agreement specifying that the work might be damaged by removal. Otherwise, if the building owner wants to remove a work which can be safely removed, the building owner may do so either (1) if the building owner made a diligent, good faith effort to notify the artist, or (2) if notified, the artist has failed to remove or pay for removal of the work within 90 days.

If you have questions about using public art to promote your business or on your company’s social media account, each use case must be evaluated on its own merits. Consulting with an experienced attorney is highly recommended. If you have questions about the requirements, the process the costs or any other question about these issues please contact us to discuss the scope of your project and how we’ve helped others like you.

Ping® by Adlerlaw – Structuring and Planning M&A Transactions

Ping® by Adlerlaw – Structuring and Planning M&A Transactions

I was honored to participate in a recent webinar about Merger & Acquisition Transactions as part of the Financial Poise  M&A BOOT CAMP 2023. Our program, the kick-off episode in the series,  “Structuring and Planning the M&A Transaction,” covered a broad range of topics related to preparing for, structuring, and executing M&A transactions.

Whether you are a buyer or a seller, you may have questions, such as “What are the primary types of M&A transactions?” The panel discussed some of the key similarities and how they are structurally different. For example, I discussed the reasons why a buyer might want to structure a deal as an Asset Deal. Other panelists discussed the reason for choosing a merger (combining two companies); stock sales and purchases such as buying a company through a purchase of stock of the selling company from its shareholders. The panel also discussed financing options like  ESOPS and use of debt.

You can learn more here.

Ping® by Adlerlaw – Warhol Loses Copyright Fair Use Defense of Photo at SCOTUS

In Warhol v. Goldsmith, Opinion located here, the estate of deceased pop artist Andy Warhol argued its use of the photo at issue was fair use under the first of the four Fair Use test factors (the “purpose and character of the use”), because Warhol’s contributions were transformative, adding new expression, meaning, or message. The Court countered that while relevant to whether a copying use has a sufficiently distinct purpose or character, it is not, without more, dispositive. It must be weighed against other considerations, like commercialism. Here, the specific use of Goldsmith’s photograph alleged to infringe her copyright is AWF’s licensing of Orange Prince to Condé Nast. As portraits of Prince used to depict Prince in magazine stories about Prince, the original photograph and AWF’s copying use of it share substantially the same commercial purpose.

In 2016, the Andy Warhol Foundation (AWF) licensed an image of “Orange Prince”—an orange silkscreen portrait of the musician Prince created by pop artist Andy Warhol to Condé Nast for $10,000 to appear on a magazine cover. The image is one of 16 works (the Prince Series) derived from a copyrighted photograph taken in 1981 by Lynn Goldsmith, who had been commissioned by Newsweek in 1981 to photograph musician named Prince Rogers Nelson.

Years later, Goldsmith granted a limited license to Vanity Fair for use of one of her Prince photos as an “artist reference for an illustration.” The terms of the license included that the use would be for “one time” only. Vanity Fair hired Warhol to create the illustration, and Warhol used Goldsmith’s photo to create a purple silkscreen portrait of Prince, which appeared with an article about Prince in Vanity Fair’s November 1984 issue. The magazine credited Goldsmith for the “source photograph” and paid her $400. 

After Prince died in 2016, Vanity Fair’s parent company (Condé Nast) asked AWF about reusing the 1984 Vanity Fair image for a special edition magazine that would commemorate Prince. When Condé Nast learned about the other Prince Series images, it opted instead to purchase a license from AWF to publish Orange Prince. Goldsmith did not know about the Prince Series until 2016, when she saw Orange Prince on the cover of Condé Nast’s magazine. Goldsmith notified AWF of her belief that it had infringed her copyright. AWF then sued Goldsmith for a declaratory judgment of noninfringement or in the alternative, fair use. Goldsmith counterclaimed for infringement. 

The District Court granted AWF summary judgment on its defense of fair use. The Court of Appeals reversed, finding that all four fair use factors favored Goldsmith. In this Court, the sole question presented is whether the first fair use factor, “the purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes,” §107(1), weighs in favor of AWF’s recent commercial licensing to Condé Nast.Held: The “purpose and character” of AWF’s use of Goldsmith’s photograph in commercially licensing Orange Prince to Condé Nast does not favor AWF’s fair use defense to copyright infringement. Pp. 12–38.

Ping® By Adlerlaw – FTC Notices Concerning Product Claims In Advertising

Advertisers delight in activating values and hidden desires of consumers using the language of the advertising claim. The “claim” is the part of an ad that makes some claim of superiority for the product being advertised. These days it is difficult to recognize those that are misleading and even downright lies, because most fit into the category of neither bold lies nor helpful consumer information. When consumers see or hear an advertisement, whether it’s on the Internet, radio or television, or anywhere else, federal law says that ad must be truthful, not misleading, and, when appropriate, backed by scientific evidence. 

Read the key take away from the Notice HERE.

Ping® By Adlerlaw – The Importance of Trademarks for Lighting Designers.

A recent Trademark Trial and Appeal Board (TTAB) decision is noteworthy for the lighting-design industry. This trademark application rejection sheds light on strategies for lighting designers seeking to protect their trademarks. This begins with the approach to the application process itself. 

In In re B-K Lighting, Inc., Serial No. 88769422 (January 27, 2023) [not precedential], the USPTO refused to register “AGI2” for “lighting fixtures,” finding confusion likely with the registered mark “AGI & Design” for lights, lighting assemblies, and light fixtures for architectural signage. As is often the case, applicant B-K Lighting was left scrambling to distinguish its trademark from the cited “AGI & Design” registration. The TTAB’s analysis of nature and relatedness of the goods, the trade channels, and the classes of purchasers, may be helpful to other brands in the lighting industry when trying to protect their trademarks.

Read the full article here.

Ping® By Adlerlaw – Illinois Evidence Rules on Admissibility of Cell Phone Video

This month’s issue of Ping® highlights Illinois rules regarding use of iPhone-recorded video in a criminal trial. In case you missed it, my article, “Six Things You Can Do to Improve Your Contracts,” from ASID Impact Illinois Magazine, Issue Two, 2022, is discussed below.

Six Things You Can Do to Improve Your Contracts.

In case you missed it, my article “Six Things You Can Do to Improve Your Contracts” appeared in ASID Impact Illinois Magazine, Issue Two 2022, pages 22-24.

Here’s a quick summary.

If you have questions about your business, or about contracts, or if you need assistance navigating the process, please feel to contact me for more information. (866)734-2568 and David [at] adler-law.com

Illinois Rules About iPhone-Recorded Video in a Criminal Trial.

Cell Phone Video. We all have it. We all use it. But what if we need to rely on it in a Court of law to prove – or disprove – a version of the story that’s being told.

We all know how easy it is to fake video and there’s a whole category that’s so credible is hard to prove it’s fake. A free press should tell the truth. But as Pontius Pilate asked, “What is truth?” Who decides what is true? And who should compel the press to “tell the truth”? 

In his article, “Illinois Supreme Court Rules on Admissibility of Cell Phone Videos,” Criminal Law FLASHPOINTS, January 2023, author Matthew R. Leisten of the Ogle County State’s Attorney’s Office, discusses People v. Smith, 2022 IL 127946, an Illinois Supreme Court case upholding the state’s use of iPhone-recorded partial video clips from a building’s surveillance cameras in a burglary trial. Read more here.

Ping® by AdlerLaw – Important Reasons To Register Your Copyright

Copyright law protects the expression not the idea.

Many writers worry about “idea theft,” using it as the reason they don’t tell people about their projects, won’t publicaly post their loglines, or won’t apply for contests and fellowships. But the fact is, copyright law only protects the expression of an idea, not the idea itself. Lots of films and television shows have similar concepts.

But what do you do if you believe your actual script or deck, or other materials were stolen? I recently received a call from a prospective client with that very concern. Read more here.