Two informative articles have issued in the last week, on the heels of the 2017 Licensing Show. Both are informative and include input from industry leaders.
and Huffington Post: http://www.huffingtonpost.com/entry/592fa717e4b00afe556b0b27
The Ninth Circuit Court of Appeals in Maloney v. T3 Media, Inc., Case No. 15-55630 (9th Cir. April 5, 2017), recently issued the latest installment in the age-old supposed showdown between Copyright and the Right of Publicity and the issue of preemption. The Court states in the holding that preemption can occur “when a likeness has been captured in a copyrighted artistic visual work and the work itself is being distributed for personal use.”
To be clear, copyright does not automatically preempt the Right of Publicity. The two doctrines protect distinct interests and, have separate policy purposes. Preemption generally requires a very specific fact pattern. The assumption seems to be that if the Right of Publicity co-exists in tandem with a copyright interest, preemption must be applicable. That is not the case, and there are countless examples of uses, situations and fact patterns where various rights or interests apply simultaneously without one preempting the other. I read Maloney as a fairly confined, and specific ruling on a distinct fact pattern.
Here is a link to an article with more elaboration on the specifics of the case:
If the report on this link is accurate, that a Florida hair clinic used Brian Urlacher without permission to promote their services, this sounds like a clean-cut case of Right of Publicity infringement. Urlacher reportedly had an endorsement deal with a Florida clinic whose services Urlacher did in fact use, which will likely enhance his position in the damages portion of the lawsuit. Here’s a link with a bit more information: Brian Urlacher sues Florida hair clinic
Interesting Bloomberg article dated 2/1/17 covering the dispute over the valuation of Michael Jackson’s estate. “The IRS claims Jackson’s should have been valued at $434 million. The estate claims that it was worth a mere $2,105.” Sounds like a case for a Right of Publicity valuation expert. Here’s a link to the Bloomberg article: Bloomberg: Michael Jackson estate valuation
Forbes has just released the annual “Top-Earning Dead Celebrities” for 2016. The most notable aspects of this year’s list are the new entries of recently departed personalities, and the amount of the number one earner. Here is a link to Forbes’ coverage: http://www.forbes.com/sites/zackomalleygreenburg/2016/10/12/the-highest-paid-dead-celebrities-of-2016/#5a1f53dd8d2e
Arnold Palmer (#3), Prince (#5) and David Bowie (#11) are the unfortunate new members on the list due to their recent respective deaths in 2016. In Palmer’s case, he had already created a vast business empire so the revenue sources that put him on this particular list were already in place. For Prince, who perhaps is the most surprising entrant on this list due to the especially shocking news of his death, the earnings are due to the surge in music sales that often follow the death of a notable artist. The same could be said of Bowie, but Bowie’s numbers also benefited from the release of a new album that closely coincided with his passing.
The other notable surprise in this year’s list is the amount assigned to the number one entrant, Michael Jackson, at $825 Million. Compare that figure to the number two spot, Charles Schulz, at $48 Million. It is worth noting that Jackson, since his death, has almost always taken the top spot, and while never quite at the $825 Million mark, the drop off from first place to second has often been very steep.
ESPN just published an interesting article that surveys a range of athletes seeking trademark registrations on catch phrases or other aspects of identity. It’s a valuable brand-building step and it has it’s place as a compliment to the Right of Publicity. What the article does not touch on, the elephant in the room, is the question of actual use. Sure, Robert Griffin can apply for “unbelievably believable” but show me the use in commerce. Some athletes obviously will satisfy the use component, but my guess is that the majority of these applications will fall into abandonment, or even fail to to reach registration.
That Minnesota should consider enacting publicity rights legislation is something I stated here shortly after Prince’s untimely passing: http://rightofpublicity.com/prince-knew-the-value-of-his-intellectual-property-42216 Minnesota has responded with draft right of publicity legislation, SF 3609, posted on May 11, 2016: https://www.revisor.mn.gov/bills/text.php?number=SF3609&version=0&session=ls89&session_year=2016&session_number=0
Predictably, critics of the legislation are taking issue with the bill on First Amendment grounds: http://www.law360.com/ip/articles/794846?nl_pk=bb8aeb3e-4ab9-4ba4-a0af-b895a107fd8a&utm_source=newsletter&utm_medium=email&utm_campaign=ip
While the legislation likely would benefit from expanding the list of fair use exemptions, such as for books, overall the legislation is in good shape and appears well-balanced in its reach and application.
As we have seen from the Michael Jackson estate and questions concerning the valuation of his right of publicity, I expect Prince’s estate will go through a similar review by the IRS. It should be noted that Minnesota’s potential adoption of the “Prince law” is not dispositive on whether or not Prince’s estate possess a right of publicity. It should be assumed that it already does. How it should be treated for taxation purposes is another question altogether.
Interesting article in the Wall Street Journal about the coming challenge of valuing the “image rights” of Prince’s estate. Here is a link: Valuing Prince’s Image Rights
There are some interesting points, as well as some common mistakes, threaded into this article which illuminate the complexity of valuing Prince’s image rights. I must refrain from elaborating, as I would be one of a small handful of qualified candidates to perform such valuation. There aren’t many candidates who are qualified for the task.
As the article notes, the valuation could become a “battle of the experts” but there certainly is a way to value Prince’s image rights in a supportable way. Much relies on a truly qualified expert bringing the appropriate perspective to the matter. It won’t come from books or formulas. The valuation must be done by someone who is very well-informed about Prince’s career, beliefs and principles. (As it turns out, that criteria may make me the most qualified potential expert on the matter.)
Reference in the Wall Street Journal article to the Michael Jackson estate’s representatives claiming a valuation of around $2,000 and the IRS countering with $434 Million shows the critical and sensitive nature of the upcoming Prince valuation.
If only Prince was simply still alive. But fellow artists and musicians, take note: if your attorney isn’t talking to you about the right of publicity, find one who is.
This should lay to rest that old yarn that “it is easier to get forgiveness than permission.” Late last week, Michael Jordan won an $8.9 Million damages award against the grocery store that used his Right of Publicity without permission in print ads that ran in Sports Illustrated.
At trial, jurors heard the familiar infringer’s refrain that Dominick’s achieved no benefit from the ads, and based on expert valuation testimony, the most it should pay for the ad was around $126,000. Of course, this overlooks the fact that Michael Jordan apparently does not do deals for $126,000 and rather, the starting fee for a license to use Jordan’s Right of Publicity is generally in the $10 Million range.
So at $8.9 Million, Dominick’s may have gotten a 10.1 % discount.
Here’s a Right of Publicity fact pattern to kick around: can a company make Pope Francis dolls without a license from the Pope?
I don’t know if the recently announced Pope Francis dolls from Bleacher Creatures are licensed or not, so I want to be clear on that point and allow for the possibility that they are. Bleacher Creatures primarily makes 10″ dolls of famous athletes, and they wouldn’t be doing that without permission.
In the link below, I find it interesting that the company is said to be “crossing their T’s and dotting their I’s” but the extent of that due diligence appears to be simply that they “reached out to the Vatican” and “would love to officially partner with them.” Taken at face value, that strongly indicates that they do not have any form of permission to make the dolls.
Of course, “reaching out” coupled with a statement of desire to “officially partner” is not all that is needed to proceed with commercial products of a famous person. Perhaps the play here is that the Pope isn’t likely to file a claim over it, but last time I checked, “likelihood of getting away with it” was not the legal standard for Right of Publicity infringement.
The Massachusetts Senate has passed a bill urged by Bill Cosby to statutorily recognize a post-mortem Right of Publicity in Massachusetts. The bill heads next to the Massachusetts House of Representatives. I’m including a link (below) to NPR’s coverage of this very positive legislative development.
As is often the case when the media covers the Right of Publicity, the coverage does not give the most balanced picture of the functioning of these rights and the policy purposes behind them. That’s probably the fault of no one or nothing other than time limitations and the need to get in and out of a complex topic in short segments. But, for example, it’s really not that difficult to determine who owns the Right of Publicity of a personality after a person dies, as the host declares. The coverage also does not point out all the limitations and allowances for First Amendment purposes that accompany most Right of Publicity statutes. And lastly, I strongly caution against acting on host Anthony Brooks’ conclusion that “if a business wants to trade on the image of Marilyn Monroe, they can.” (Just after the 2:00 mark in the NRP clip.)
Professor Ray Madoff of Boston College Law School does a good job discussing some of the high points of the Right of Publicity. To the credit of the producer of this segment on NPR/Radio Boston, I (the administrator of http://www.RightofPublicity.com) was consulted to verify certain information about Right of Publicity statutes throughout the country (the part in the interview when the host Sacha Pfeiffer says “we looked this up”).
Here’s a link to the radio segment: http://radioboston.wbur.org/2014/06/13/dead-right-publicity
The lawsuit brought by former Nebraska and Arizona State quarterback, Sam Keller against video game giant Electronic Arts (EA) and the NCAA has been settled. The reported settlement amount is $20 Million.
A statement by the CLO of the NCAA expressed that the timing of the settlement is based on the fact that the video games are no longer in production, as well as Collegiate Licensing Company (CLC) and EA having settled out of the case as well.
The administrator of this site, http://www.RightofPublicity.com joined SAG and other notable rights holders (via Luminary Group) in filing an amicus brief in support of Keller.
It is not entirely clear yet how the settlement funds will be distributed amongst certain affected college athletes, but more information can be found on this link:
Here is a link to more details: http://www.lexology.com/library/detail.aspx?g=38917404-afa9-4b61-ae81-a3ebc21ff996&utm_source=Lexology+Daily+Newsfeed&utm_medium=HTML+email+-+Body+-+Federal+section&utm_campaign=Lexology+subscriber+daily+feed&utm_content=Lexology+Daily+Newsfeed+2014-06-02&utm_term=
BVR is a leading publisher on valuations, and I recently had an extensive discussion with BVR concerning valuations and the Right of Publicity. The resulting article itself is subscription-based, but the title of the article is New cases spotlight the value of ‘right of publicity,’ published February 19, 2014, Issue #137-3. Also see http://www.BVResources.com
Earlier this week, the NCAA’s petition to the U.S. Supreme Court concerning the case of Keller v. Electronic Arts Inc., 724 F.3d 1268 (9th Cir. 2013) was denied. The author of http://www.RightofPublicity.com joined SAG in filing an amicus brief in that case at the lower court level, and the Ninth Circuit’s ruling and analysis were correct under the circumstances.
Electronic Arts, for its part, had already settled the case. The NCAA petitioned the Supreme Court to adopt the Rogers Test to determine use of the Right of Publicity of student athletes in video games and to overturn the determination that the use of the athletes in the video game was not protected by the First Amendment.
The Rogers Test was devised as an analysis for titles and would have been entirely wrong for the Keller case. It is surprising the Rogers test was even suggested, except perhaps it was believed that if adopted the result would be something the NCAA preferred.
The Ninth Circuit’s application of the Transformative Use test was the correct test for the use and issues in question. We don’t need the U.S. Supreme Court to assist in determining that a test devised for titles should not be used in a case like Keller.