Friday, November 21, 2003

USE OF ELVIS FOOTAGE IN FILM BIOGRAPHY IS NOT FAIR USE

November 21, 2003

In this newsletter:

THE BIG EMPTY OPENS TONIGHT IN L.A.

Congratulations to our client, Echo Lake Productions. Their film, “THE BIG EMPTY,” starring Jon Favreau, Joey Lauren Adams, Rachael Lee Cooke, Kelsey Grammer, and Daryl Hannah opens this Friday, Nov. 21, at the Laemmle Sunset Five (8000 Sunset Boulevard, corner of Sunset and Crescent Heights) in Los Angeles. Producer Doug Mankoff will conduct an informal Q&A at the Wolfgang Puck CafĂ© next to the theater on Sunday evening. The film is also screening at the Century Orleans in Las Vegas, and AMC River Park Square 20 in Spokane, WA. Watch the trailer or read about the production by connecting to www.thebigempty.com . Advance tickets are available at www.moviefone.com or www.laemmle.com .
FIRESIDE FILMS LLC

Congratulations to our client, Fireside Films, LLC and director Brad Keller. Their film, “A Killer Within,” began principal photography in Dallas this week. The production stars C. Thomas Howell, Sean Young, Ben Browder, Dedee Pfeiffer and Giancarlo Esposito.

USE OF ELVIS FOOTAGE IN FILM BIOGRAPHY IS NOT FAIR USE

The King has won its appeal. Elvis Presley Enterprises won affirmation from the U.S. Court of Appeals for its preliminary injunction against Passport Entertainment, which prevented Passport from selling a multi-disc documentary about Elvis Presley entitled, “The Definitive Elvis.”

Elvis Presley Enterprises received its original injunction on the basis of copyright infringement. “The Definitive Elvis” incorporated unlicensed clips of copyrighted music, photographs, movies, and television appearances.

Passport Entertainment, which produces celebrity video biographies for the home video market, sought a review of the lower court’s decision, claiming the court abused its discretion and that Passport could, among other things, present a plausible fair use defense.

The doctrine of fair use requires the courts to consider four factors: the purposes and character of the use, including whether the use is of a commercial nature or is for nonprofit educational purposes; the nature of the copyrighted work; the amount and substantiality of the portion used in relation to the copyrighted work as a whole; and the effect of the use upon the potential market for and value of the copyrighted work.

In an analysis of the lower court’s decision, Circuit Judge Richard Tallman of the U.S. Court of Appeals determined that the lower court had not made any errors, legal or otherwise, in its factual findings. However, the judge left the door open for a rehearing, writing that the Appeals Court “might view this case as closer than the district court saw it.”

In a dissenting opinion, Circuit Judge John T. Noonan wrote that the district court had both misstated critical facts and governing law, and that the appeals court should, in fact, reverse the grant of preliminary injunction.

Detailing the errors in the district court’s findings, Judge Noonan further commented on the district court’s failure to conduct an analysis of the public interest in the subject of the documentary and the public injury that would be caused by what is essentially a suppression of speech.

Tuesday, November 04, 2003

NEW YORK VOLUNTEER LAWYERS FOR THE ARTS

November 4, 2003

In this newsletter:

NEW YORK VOLUNTEER LAWYERS FOR THE ARTS

On Nov. 8 at the Lower Manhattan Cultural Council, Mark will conduct a comprehensive seminar that explores how independent films are financed and distributed. During this Volunteer Lawyers for the Arts seminar, Mark will review include financing via pre?sales, debt and limited partnerships, negotiating tactics, typical contract terms, cross?collateralization and creative accounting. He will address how producers and filmmakers can protect themselves by watering down warranties, getting added to the E&O policy, using lab access letters to retain possession of the negative, utilizing termination and arbitration clauses. The seminar includes a handout with a distribution contract, articles, a self?defense checklist and other materials. Other topics include criteria for selecting a distributor; what is negotiable and what is not; compliance with state and federal laws when seeking investors; retaining an attorney or producer’s rep; confirming arbitration awards in Superior Court; and, enforcing judgments. To register, please call Jonathan Tominar, VLA Office Administrator, at 212-319-ARTS (2787) ext. 10, or email vla@vlany.org.

Tuesday, October 07, 2003

CALIFORNIA SUPREME COURT DECLARES COMICS PROTECTED BY FIRST AMENDMENT

October 7, 2003
In this newsletter:
UPCOMING LECTURES: HAMPTONS FILM FESTIVAL

On Oct. 23 at 1PM, Mark will be participating in a panel discussion at the Hamptons Film Festival. He and other industry professionals will discuss the differences between traditional and alternative financing models, domestic tax incentives, European tax incentives, and financing options for digital vs. celluloid filmmaking. To order tickets for the panel, entitled “Foregoing the Frustrations of Film Financing,” visit www.ticketweb.com/user/?region=ny&query=detail&event=463058 The official Hamptons Film Festival site is http://www.hamptonsfilmfest.org/2003/

NEW YORK VOLUNTEER LAWYERS FOR THE ARTS

On Nov. 8 at the Lower Manhattan Cultural Council, Mark will conduct a comprehensive seminar that explores how independent films are financed and distributed. During this Volunteer Lawyers for the Arts seminar, Mark will review include financing via pre-sales, debt and limited partnerships, negotiating tactics, typical contract terms, cross-collaterization and creative accounting. He will address how producers and filmmakers can protect themselves by watering down warranties, getting added to the E & O policy, using lab access letters to retain possession of the negative, utilizing termination and arbitration clauses. The seminar includes a handout with a distribution contract, articles, a self-defense checklist and other materials. Other topics include criteria for selecting a distributor; what is negotiable and what is not; compliance with state and federal laws when seeking investors; retaining an attorney or producer’s rep; confirming arbitration awards in Superior Court; and, enforcing judgments. To register, please call Jonathan Tominar, VLA Office Administrator, at 212-319-ARTS (2787) ext. 10.

CALIFORNIA SUPREME COURT DECLARES COMICS PROTECTED BY FIRST AMENDMENT
By Chrys Wu, Paralegal to Mark Litwak

In an opinion hailed as preserving First Amendment rights, the California Supreme Court has reversed and remanded a case pitting celebrities’ right of publicity against the First Amendment. DC Comics created a series of stories featuring the characters “Johnny and Edgar Autumn.” These characters were portrayed as vulgar, distasteful villains. Real-life musicians Johnny and Edgar Winter sued DC Comics alleging, among other causes of action, that DC Comics had misappropriated their names and likenesses in a series of comic books featuring characters named “Johnny and Edgar Autumn.” The California high court agreed to review the case, applying a balancing test the court established in the case Comedy III Productions, Inc. v. Gary Saderup, Inc. (2001) 25 Cal.4th 387, 396. In creating the balancing test, the court wrote that while celebrities had a right to protect the economic value of their names and likenesses, the right of publicity “does not confer a shield to ward off caricature, parody and satire. Rather, prominence invites creative comment.” Therefore, First Amendment protections could apply to some uses of celebrity likeness. The court applied its test to determine if DC Comics had appropriated the Winter brothers’ likenesses merely for economic gain, which the First Amendment does not protect; or if the publisher had significantly transformed the likenesses into a creative product, which the First Amendment does protect. The court found that while the characters portrayed in the comic book were “less-than-subtle evocations” of the Winter brothers, they were just cartoon characters in a larger, expressive story. Ultimately, the court wrote, DC Comics had created and sold, and buyers bought, comic books featuring “fanciful, creative characters, not pictures of the Winter brothers.” The comics books are therefore protected by the First Amendment. The case has been reversed and remanded to the Court of Appeal. Winter v. DC Comics, 30 Cal.4th 881, 134 Cal.Rptr.2d 634, 69 P.3d 473, 2003 Cal.LEXIS 3492 (Cal. 2003)

Wednesday, September 03, 2003

WRITERS’ CLAIM AGAINST AARON SORKIN DISMISSED

September 3, 2003

WRITERS’ CLAIM AGAINST AARON SORKIN DISMISSED
by Chrys Wu, paralegal to Mark Litwak

Writers Kyle Morris and William Richert lost their case before a New York federal court. They wrote a treatment and script called “The President Elopes,” which Castle Rock Entertainment agreed to co-produce. Castle Rock bought the property after they greenlighted Aaron Sorkin’s script, “The American President.”

“The American President” went on to make a solid showing at the box office. “The President Elopes” was never produced. Morris and Richert thought the two projects were substantially similar and asked a WGA arbitration panel to determine if they should receive shared writing credit for “The American President.” The WGA arbitrators determined Sorkin deserved sole writing credit.

Morris and Richert then sued in New York’s federal court, alleging Castle Rock had purchased their property to essentially block its production while filming Sorkin’s project. The writers also claimed breach of contract against Castle Rock for failure to pay additional compensation for “The American President”; copyright infringement by Castle Rock, Sorkin, and Warner Bros., for “The West Wing,” which Sorkin writes; and accused Sorkin and others of conspiracy to defraud the WGA arbitration panel.
A federal district judge has dismissed the case without trial, stating first that the writers were never entitled to make a copyright claim since they had written “The President Elopes” under a work-for-hire agreement and had thereby signed away their copyright. Further, as Castle Rock then properly purchased the copyright to the material, Castle Rock was the rightful copyright holder.

The attorney for Morris and Richert argued that the copyright should revert to the writers as it was “unconscionable” for Castle Rock to own the rights simply to take the script out of production. The judge disagreed, both because “American President” and “President Elopes” had only “superficial similarities” and because the termination clause in Morris and Richert’s contract stipulated that Castle Rock would retain the copyright in the event of termination.

The judge ruled that the breach of contract claim also failed, since the original Castle Rock contract stated additional compensation was only due if the writers were entitled to shared writing credit, which the WGA arbitration panel ruled they should not receive.
As for conspiracy to defraud the WGA panel, the judge determined this was a meritless claim.

Morris v. Castle Rock Entertainment, Inc., 246 F.Supp.2d 290, 2003 U.S.Dist.LEXIS 2420 (S.D.N.Y. 2003)

Mark litwak TO Teach at UCLA and in Seattle This MonthOn Saturday, September 6, Mark Litwak will be teaching “Financing Independent Features and Negotiating a Distribution Agreement” at UCLA. Mark will discuss how financing can be obtained through pre-sales, debt, and limited partnerships. He will also review negotiating tactics, typical contract terms, cross-collaterization, and creative accounting. Handouts include a distribution contract, articles, a self-defense checklist, and other materials. To register, visit http://www.uclaextension.edu, click on the “Quick Enroll” tab and type in “N9506U” in the box that says “Reg #.”
On September 12 and 13, Mark Litwak will be in Seattle on a speaking tour to lecture and answer questions for screenwriters and filmmakers.

Washington Lawyers for the ArtsAt 11:45 a.m. on September 12, Mark will be speaking at the City Centre Building, 1420 Fifth Ave., 4th Floor Conference Room in Seattle. He’ll be discussing "Copyright Law for Literary Artists & Filmmakers: Practical Tips for Protecting Artistic Works." The brown bag lunch seminar is organized by Washington Lawyers for the Arts; MCLE credit may be available. For more information, email director@wa-artlaw.org with your name, postal address, email address and phone number, call (206) 328-7053, or visit the website: http://www.wa-artlaw.org/lecture.html#brownbag9.

Northwest Screenwriters GuildFrom 7 p.m. to 9 p.m. on September 12, Mark will be conducting an informal discussion on "Protecting Your Work from Theft and Prevent Legal Pitfalls" at the Mercer Island Community Center (MICC). The event is hosted by the Northwest Screenwriters Guild. No advance registration is required. Call (206) 842-7995 for more information or visit the NWSG website: http://www.nwsg.org.
The Indie Film GroupOn September 13, Mark will conduct a one-day workshop on "Self-Defense for the Writer & Filmmaker." Mark will describe common abuses and how to prevent them. He’ll also review how to secure underlying rights to a story and the remedies available should you find your project in trouble. This workshop is organized by The Indie Film Group and Circle Rock Productions. For more information or to register online go to http://www.indiefilmgroup.com or call toll free: 1-866-484-3434.

Sunday, July 27, 2003

In this newsletter:

kiss-and-tell eliminates rights of publicity and privacy.

22-year old Diana Lynn Daly was caught on tape smooching with a member of Texas rockers Flickerstick, a group featured on VH1's "Bands on the Run" reality show.

Daly had no problem with that. In fact, she herself publicly disclosed the kiss. However, she and the band's drummer were in a bathroom stall, and video of her locking lips was broadcast on the show and still images of same were used in a national advertising campaign.

Embarrassed, Daly sued Viacom, Inc., VH1's parent company, for misappropriation of her right of publicity, invasion of privacy, fraud, and infliction of emotional distress, among other causes of action.

The California District Court judge didn't buy it. Judge Maxine Chesney found that the show is an "expressive work," and as such is protected by the First Amendment. Therefore, Daly could not claim misappropriation of her likeness in the program or in advertisements.

Furthermore, since Daly had publicly disclosed the kiss, she could no longer claim a right of privacy. Ruling that the publicly disclosed act could not be made private again "merely by virtue of the location in which such activity occurs," the judge struck down the privacy claim.

Daly's other claims also failed.

Daly v. Viacom, Inc., 238 F.Supp.2d 1118 (N.D.Cal. 2002)

LAST CALL FOR Hollywood Finance and Distribution symposium, JULY 19–20

On July 19 and 20, I am chairing an event that provides independent filmmakers with the opportunity to learn about finance and distribution opportunities.

The two-day event will cover such topics as international co-productions, subsidies, and production incentives; distribution channels; how soon is too soon to promote or market a film; and the future of film financing. In addition, filmmakers will have the chance to discuss their projects with agents, studio execs and distributors in 30-minute round tables.

Speakers include Rob Aft, Independent Consultant; Jeff Andrick, XL.Ent Media Group; Barry Barnholtz, Barnholtz Entertainment; Craig Baumgarten, MAC Releasing; Craig Bernstein, ICM; Paul Colichman, Regent Entertainment; Michael Dalling, Rogers and Cowan; Joseph Dickstein, Mainline Releasing; Bruce Eisen, Cinema Now; Udy Epstein, Seventh Art Releasing; Erik Feig, Summit Entertainment; Gary Garfinkel, Showtime Networks, Inc.; Marina Grasic, IFG; Judith Jecmen, MGM; Chris Libby, mPRm; Steve Lustgarten, Leo Home Video; Doug Mankoff, Echo Lake Productions; John Manulis, Visionbox Pictures; Sandra J. Ruch, IDA; Morris Ruskin, Shoreline Entertainment; Tony Safford, Fox Searchlight; Art Stribley, Lew Horwitz Organization; and Jared Underwood, Comerica.

The full schedule of events and details can be found at http://www.hollywoodawards.com/conference/market.html

Mark litwak to Speak AT VSDA in Las Vegas

On July 29, Mark will speak about "The Business Side of Filmmaking" during the Video Software Dealers Association Home Entertainment convention held at the Venetian Hotel, Las Vegas.

VSDA has partnered with organizers of the Had To Be Made Film Festival to bring independent filmmakers, distributors and retailers together to promote independent film to the public. This year's Filmmaker Program brings together the nation's leading video retailers, distributors and acquisition professionals to share their ideas and comments. The program is geared to provide networking, learning and sales opportunities.

Kiss-and-tell eliminates rights of publicity and privacy

July 27, 2003
In this newsletter:

Kiss-and-tell eliminates rights of publicity and privacy

22-year old Diana Lynn Daly was caught on tape smooching with a member of Texas rockers Flickerstick, a group featured on VH1's "Bands on the Run" reality show.
Daly had no problem with that. In fact, she herself publicly disclosed the kiss. However, she and the band's drummer were in a bathroom stall, and video of her locking lips was broadcast on the show and still images of same were used in a national advertising campaign.

Embarrassed, Daly sued Viacom, Inc., VH1's parent company, for misappropriation of her right of publicity, invasion of privacy, fraud, and infliction of emotional distress, among other causes of action.

The California District Court judge didn't buy it. Judge Maxine Chesney found that the show is an "expressive work," and as such is protected by the First Amendment. Therefore, Daly could not claim misappropriation of her likeness in the program or in advertisements.

Furthermore, since Daly had publicly disclosed the kiss, she could no longer claim a right of privacy. Ruling that the publicly disclosed act could not be made private again "merely by virtue of the location in which such activity occurs," the judge struck down the privacy claim.

Daly's other claims also failed.

Daly v. Viacom, Inc., 238 F.Supp.2d 1118 (N.D.Cal. 2002)

LAST CALL FOR Hollywood Finance and Distribution symposium, JULY 19–20

On July 19 and 20, I am chairing an event that provides independent filmmakers with the opportunity to learn about finance and distribution opportunities.

The two-day event will cover such topics as international co-productions, subsidies, and production incentives; distribution channels; how soon is too soon to promote or market a film; and the future of film financing. In addition, filmmakers will have the chance to discuss their projects with agents, studio execs and distributors in 30-minute round tables.

Speakers include Rob Aft, Independent Consultant; Jeff Andrick, XL.Ent Media Group; Barry Barnholtz, Barnholtz Entertainment; Craig Baumgarten, MAC Releasing; Craig Bernstein, ICM; Paul Colichman, Regent Entertainment; Michael Dalling, Rogers and Cowan; Joseph Dickstein, Mainline Releasing; Bruce Eisen, Cinema Now; Udy Epstein, Seventh Art Releasing; Erik Feig, Summit Entertainment; Gary Garfinkel, Showtime Networks, Inc.; Marina Grasic, IFG; Judith Jecmen, MGM; Chris Libby, mPRm; Steve Lustgarten, Leo Home Video; Doug Mankoff, Echo Lake Productions; John Manulis, Visionbox Pictures; Sandra J. Ruch, IDA; Morris Ruskin, Shoreline Entertainment; Tony Safford, Fox Searchlight; Art Stribley, Lew Horwitz Organization; and Jared Underwood, Comerica.
The full schedule of events and details can be found at http://www.hollywoodawards.com/conference/market.html

Mark litwak to Speak AT VSDA in LAS vegas On July 29, Mark will speak about "The Business Side of Filmmaking" during the Video Software Dealers Association Home Entertainment convention held at the Venetian Hotel, Las Vegas.
VSDA has partnered with organizers of the Had To Be Made Film Festival to bring independent filmmakers, distributors and retailers together to promote independent film to the public. This year's Filmmaker Program brings together the nation's leading video retailers, distributors and acquisition professionals to share their ideas and comments. The program is geared to provide networking, learning and sales opportunities.Click here for more info.

Thursday, June 12, 2003

Court decision puts IMPLIED-IN-FACT CONTRACTS under scrutiny

June 12, 2003

In this newsletter:

"FINANCING MOTION PICTURES" EXCERPT AVAILABLE ON MARKLITWAK.COM
One of the most frequent questions filmmakers ask is, "How do I structure financing for my film project?" At marklitwak.com, you can now read an excerpt from Mark's upcoming book Risky Business, Financing and Distributing Independent Films, which addresses the question.

DISCOUNTED REGISTRATION AVAILABLE FOR Hollywood Finance and Distribution Market, JULY 19–20
On July 19 and 20, the Hollywood Film Festival will provide independent filmmakers with the opportunity to learn about finance and distribution opportunities. Those who register by June 15 will pay $145. After June 15, the registration fee is $295.
The two-day event will cover such topics as international co-productions, subsidies, and production incentives; distribution channels; how soon is too soon to promote or market a film; and the future of film financing.
In addition, filmmakers will have the chance to discuss their projects with agents, studio execs and distributors in 30-minute round tables.
The full schedule of events and details can be found athttp://www.hollywoodawards.com/conference/market.html

Court decision puts IMPLIED-IN-FACT CONTRACTS under scrutiny
by Chrys Wu, Paralegal to Mark Litwak

Common scenario: A production company comes up with an idea and wants to pursue it with a large corporation. The production company gets in touch with a corporation rep to discuss the idea. Instead of hearing a pitch off the cuff, the corporation schedules a pitch meeting to hear the idea.

In some industries, when a pitch meeting is scheduled at the corporation's request, it's generally accepted that the invited production company will be compensated for the ideas it presents if its ideas or materials are used. When the corporation invites someone to pitch, the pitch meeting becomes, in effect, an implied contract, and an implied contract, according to case law, does not require an express oral or written representation of compensation.
Implied contracts always run the danger of being denied by one of the parties involved. Such was the case when animation company Gunther-Wahl Productions accused Mattel of stealing its ideas for a line of girls' toys after Mattel invited Gunther-Wahl to pitch. Claiming breach of implied-in-fact contract, Gunther-Wahl sought compensation.

At trial, the jury was given instructions that proved to be confusing, even though the instructions are similar to those given in implied contract cases since the 1956 landmark decision in Desny v. Wilder.

According to one of these instructions, the jury had to find that Gunther-Wahl "clearly conditioned their disclosure (of their ideas) on Mattel's agreement to pay Gunther-Wahl" if Mattel used any portion or the whole of its pitched concept.

The Appeals court found these instructions ran contrary to case law and basically forced the jury to rule against Gunther-Wahl. The Court therefore reversed the judgment against Gunther-Wahl, allowing the lower court to retry the case.

Gunther-Wahl Productions, Inc. v. Mattel, Inc., 128 Cal.Rptr.2d 50, 2002 Cal.App.LEXIS 5097 (Cal.App. 2002), review denied, 2003 Cal.LEXIS 1144 (Cal. 2003)

Thursday, June 05, 2003

Small distributor triumphs over 20th century fox in court

June 5, 2003
In this newsletter:

Mark Litwak to Lecture at University OF HAWAII jUNE 21-22
Mark Litwak will be teaching two of his most popular courses at the University of Hawaii at Manoa.

"Self-defense for Writers & Filmmakers" will be held June 21. This seminar explains how writers and filmmakers can prevent problems from arising by properly securing underlying rights and by encouraging the other party to live up to agreements by adding performance milestones, default penalties and arbitration clauses. Participants will also learn what remedies are available to enforce their rights in the event of a dispute.
For more information and registration for this class, click here: http://www.outreach.hawaii.edu/programs/2003/EVENT-L06013.htm

"Financing and Distributing Independent Features" will be held June 22. This seminar explores how independent films are financed and distributed. The seminar includes an extensive handout with a long-form distribution contract, checklists and other materials useful in preparing to raise cash and distribute your film.
For more information and registration for this class, click here: http://www.outreach.hawaii.edu/programs/2003/EVENT-L06014.htm

Hollywood Finance and Distribution Market AT DOUBLETREE HOTEL, JULY 19–20
Want to know how industry insiders approach financing and distribution? Wonder how you can improve your distributor and studio execs think your project's chances are?
On July 19 – 20, the Hollywood Film Festival will provide independent filmmakers with the opportunity to learn about finance and distribution opportunities from organizations such as Buena Vista Studios, Regent Entertainment, Initial Entertainment Group, iFilm, Paramount Classics, Miramax Films, Lions Gate Films Releasing, and Laemmle Theatres.

The two day event will cover such topics as international co-productions, subsidies, and production incentives; distribution channels; how soon is too soon to promote or market a film; and the future of film financing.

In addition, filmmakers will have the opportunity to discuss their projects with agents, studio execs and distributors in 30-minute roundtables. The full schedule of events and details can be found at http://www.hollywoodawards.com/conference/market.html.

Small distributor triumphs over 20th century fox in court
by Chrys Wu, Paralegal to Mark Litwak

The U.S. Supreme Court gave one to the little guy on Monday, June 2. Fox had attempted to stop the defendant, Dastar Corporation, from distributing a program that had gone into the public domain by relying on unfair competition law since copyright law no longer protected the work. Under copyright law, once a copyright expires, others are free to copy and distribute the work without restriction. Unlike copyright law, which provides for a limited term of protection, a trademark can last indefinitely, provided the mark stays in use. Fox attempted to stop Dastar from duplicating and distributing footage from a program that was once under copyright to Fox, by asserting that Dastar had violated unfair competition laws by distributing this material under Dastar's name, and not crediting the origin of the work to Fox.

If Fox had prevailed with this line of reasoning, then unfair competition laws would be able to restrict the use of works that were no longer copyrighted.

Key to the Supreme Court's decision was determining the definition of the phrase "origin of goods" as used in the §43(a) of the Lanham Act.

In the late 1940s, 20th Century Fox was granted exclusive television rights to a book by General Dwight D. Eisenhower. Fox arranged for Time, Inc. to produce a TV series based on the book. Time assigned the TV series copyright to Fox and Fox first broadcast the series 1949.

In 1975, Doubleday renewed the book's copyright. Fox, however, did not renew the TV series copyright and the series fell into the public domain in 1977. In 1988, Fox reacquired television rights to the book, including the exclusive right to distribute the TV series on video and to sub-license that right. The sub-licensors then began to repackage and resell the 1949 TV series.

In 1995, Dastar released its own set of World War II videotapes based in part on the 1949 TV series now in the public domain. Dastar did not attribute the portions of the public domain footage to Fox or its sub-licensors and they, claiming reverse passing off in violation of Section 43(a) of the Lanham Act.

The lower courts ruled in Fox's favor, saying that because a substantial portion of Dastar's videotape series was based on the 1949 Fox television series, the public was likely to be "deceived or confused" about the origins of the Dastar video content.

The Supreme Court ruled that had Dastar bought some of the sub-licensors new tapes and simply repackaged them as Dastar's own, they would surely have been in violation of the Act.

In this case, the Court wrote, Dastar had taken work from the 1949 TV series, which is in the public domain, made additional changes and produced its own video series, resulting in a new "origin of goods."

Writing for the Court, Justice Antonin Scalia determined that "origin of goods" referred to the producer of a tangible product sold in the marketplace. However it would be impossible for this phrase to refer to "the person or entity that originated the ideas or communications that 'goods' embody or contain," as it would conflict with the Act's purpose – which is to make "actionable the deceptive and misleading use of marks" and "to protect persons engaged in … commerce against unfair competition."

Furthermore, if one had to trace the "origin of goods" to uncopyrighted materials, such the public domain work in this case, "'origin' has no discernable limits," the Court wrote. By example, the Court traced one possible attribution sequence for the MGM film, "Carmen Jones." If uncopyrighted materials had to be attributed for this film after its copyright expired, not only would attribution be made to MGM, but also to Oscar Hammerstein II, who wrote the musical on which the film was based; and to Georges Bizet, who wrote the opera on which the musical was based; and to Prosper Mérimée, who wrote the novel on which the opera was based.

"We do not think the Lanham Act requires this search for the source of the Nile and all is tributaries," the Court concluded. Ruling that trademark law, as embodied in the Lanham Act, does not prevent the unaccredited copying of a work in the public domain, the high court reversed a decision against music and video distributor Dastar Corporation, sending the case back to the lower court for further review.
Dastar Corporation v. Twentieth Century Fox Film Corporation et al., S.Ct. No. 02-428

Friday, May 23, 2003

Mark Litwak to Lecture at University of HAWAII

May23, 2003

In this newsletter:

Hollywood Finance and Distribution Market AT DOUBLETREE HOTEL, JULY 19–20

Want to know how industry insiders approach financing and distribution? Have you wanted to ask distributor and studio execs what your project’s chances are?
On July 19 – 20, the Hollywood Film Festival will provide independent filmmakers with the opportunity to learn about finance and distribution opportunities from organizations such as Buena Vista Studios, Regent Entertainment, Initial Entertainment Group, iFilm, Paramount Classics, Miramax Films, Lions Gate Films Releasing, and Laemmle Theatres.

The two day event will cover such topics as international co-productions, subsidies, and production incentives; distribution channels; how soon is too soon to promote or market a film; and the future of film financing.
In addition, filmmakers will have the opportunity to discuss their projects with agents, studio execs and distributors in 30-minute roundtables. The full schedule of events and details can be found at: http://www.hollywoodawards.com/conference/market.html#session

Mark Litwak to Lecture at University OF HAWAII In JUNE
Mark Litwak will be teaching two of his most popular courses at the University of Hawaii at Manoa.

"Self-defense for Writers & Filmmakers" will be held June 21. This seminar explains how writers and filmmakers can prevent problems from arising by properly securing underlying rights and by encouraging the other party to live up to agreements by adding performance milestones, default penalties and arbitration clauses. Participants will also learn what remedies are available to enforce their rights in the event of a dispute.
For more information and registration for this class, click here: http://www.outreach.hawaii.edu/programs/2003/EVENT-L06013.htm

"Financing and Distributing Independent Features" will be held June 22. This seminar explores how independent films are financed and distributed. The seminar includes an extensive handout with a long-form distribution contract, checklists and other materials useful in preparing to raise cash and distribute your film.
For more information and registration for this class, click here: http://www.outreach.hawaii.edu/programs/2003/EVENT-L06014.htm

Friday, May 16, 2003

GROKSTER, MORPHEUS DO NOT INFRINGE COPYRIGHT SAYS CALIFORNIA COURT

May 16, 2003

This Newsletter:

NEW: FILMMAKER INCENTIVE INFORMATION AVAILABLE ONLINE

In deciding where to shoot, cost is always a factor. Most states and several countries offer a variety of tax breaks, rebates and co-production funds to encourage television, film and commercial production companies to film on location and in state.

We have compiled a summary of U.S. and international filmmaker incentives which are now available online at http://www.marklitwak.com/ under "Filmmaker Incentive Programs." Since these programs are subject to change, confirm the terms of each program by contacting the film offices to get the latest information

GROKSTER, MORPHEUS DO NOT INFRINGE COPYRIGHT SAYS CALIFORNIA COURT
By Chrys Wu, Paralegal to Mark Litwak

A recent California District Court decision has dismissed a copyright infringement lawsuit against two distributors of heavily-used peer-to-peer software that allows users to trade files over the Internet.

Film studios and music publishers sought to block Grokster Ltd. and Streamcast Networks, Inc. from distributing their popular Morpheus and Grokster programs, claiming that the companies were liable for 1) contributory infringement and 2) vicarious infringement of movie and music copyrights.

Citing heavily from A & M Records, Inc. v. Napster, Inc., 114 F. Supp. 2nd 896 (N.D. Cal. 2000), and drawing a key distinction between Napster's distribution methods and the methods used by Morpheus and Grokster, U.S. District Judge Stephen Wilson ruled that neither Streamcast nor Grokster were liable for the two causes of action lodged against them.

To prove contributory infringement, the studios and publishers had to show that defendants knew of specific acts of infringement and could act to stop those particular acts; and that the companies made an "active and substantial contribution" to the infringment by encouraging or assisting its users in wrongdoing.

The defendants could not have had actual knowledge of the specific instances of copyright infringement, the court reasoned, because the programs operate on a peer-to-peer network that allows users to trade files without going through any central server owned and operated by the defendants.

The court also noted that Streamcast and Grokster Inc. merely distributed their software programs, which can be used for both unlawful and lawful purposes such as trading government documents, e-books, free music and software, and files in the public domain, a fact acknowledged by the plaintiffs. Citing Napster, the court wrote that Defendants' liability could not be established "merely because peer-to-peer file-sharing technology may be used to infringe plaintiff's copyrights." Plaintiffs were unable to prove that defendants materially contributed to copyright infringement, other than by distributing the software in the first place.

To prove vicarious infringement, plaintiffs had to show that defendants received financial benefit from the infringement, and had the right and ability to supervise the infringing conduct. Unlike contributory infringement, defendants do not have to be aware of the infringement.

For this cause of action, the court decided that defendants received significant financial benefit by distributing the software, which contains advertisements. The more copies distributed, the more advertising revenues they'd recoup. And since many users download Grokster and Morpheus for the express purpose of trading copyrighted files, "a significant portion of Defendants' advertising revenue depends upon the infringement," the court concluded.

However, the court again noted the important distinction that prevented Grokster and Streamcast from assuming the "right and ability " to supervise the infringing conduct. Because the programs operate on a peer-to-peer basis, "Defendants provide software that communicates across networks that are entirely outside Defendants control," wrote the court.

Based on these findings, the court granted summary judgment to Grokster and Streamcast. An appeal is expected.

HOW TO REDUCE SPAM

If feel overwhelmed by spam, junk mail and telephone solicitations, there are several steps you can take to reduce the flow.

The California Department of Justice is now accepting email addresses on their do not call list. This allows one to pre-register for the nationwide Do Not Call list that the Federal Trade Commission (FTC) is expected to launch this summer. This registry is FREE to consumers. If you sign up now, you can stop telemarketing calls beginning in October under the nationwide program. Go to: http://caag.state.ca.us/ to sign up.
You can also contact the Direct Marketing Association and have them put you on their do not contact lists. When you register with e-MPS, your e-mail address is placed in an "opt-out" file for two years. All DMA members who wish to send unsolicited commercial e-mail must purge their e-mail lists of the individuals who have registeredtheir e-mail address with e-MPS. If you are on this list you will not receive unsolicited e-mail from DMA members. Go to: http://www.dmaconsumers.org/consumers/optoutform_emps.shtml

Monday, April 28, 2003

YAHOO! ACQUITTED OF CRIMINAL VIOLATIONS IN FRANCE

April 28, 2003
In This Newsletter:

MARK LITWAK TO TEACH FILMMAKER SELF-DEFENSE AT UCLA

Mark Litwak will be teaching "Self-Defense for Independent Filmmakers: Protecting Your Legal Rights" on May 3-4, 2003 at UCLA. Mark will teach filmmakers how to anticipate problems before they arise in their negotiations with production and distribution companies. He will also discuss how to create incentives to encourage the companies to live up to their agreements, including performance incentives, default penalties, and arbitration clauses. In the event of an unresolvable dispute, participants learn what remedies are available to enforce their rights.
To register, call 310- 825-9971 or enroll online at: http://www.uclaextension.org/

YAHOO! ACQUITTED OF CRIMINAL VIOLATIONS IN FRANCE

In a case that helps define jurisdiction in suits brought in one country against websites hosted in another country, a Paris court has acquitted Yahoo! of criminal charges of exhibiting and justifying crimes against humanity.

At issue was whether Yahoo could be held criminally liable for hosting websites that sold Nazi memorabilia. These websites were hosted on servers in the United States. French law prohibits “justifying war crimes” and “exhibiting a uniform, insignia or emblem of a person guilty of crimes against humanity.”

A Paris judge ruled that Yahoo did not did not glorify, praise or at least present the crimes in question favorably simply by allowing Nazi memorabilia to be sold from websites it hosted, and therefore acquitted the company.

Yahoo’s French web-hosting service never allowed the violation of French law, and Yahoo now maintains a global policy prohibiting the sale of Nazi memorabilia from websites it hosts.

CHRISTOPHER VOGLER TO LEAD SCREENWRITER’S WORKSHOP

Christopher Vogler, author of The Writer’s Journey: Mythic Structure for Writers, will discuss his latest ideas about myths, movies, and the deep structure of storytelling for the screen during a two-day workshop held May 10 and 11 in Los Angeles.
The workshop will examine new maps of story structure for a changing audience, new concepts for troubleshooting story, character and structure problems, and ways in which to develop literary works and plays into coherent movies with broad appeal.To register visit http://www.hollywoodfilmfestival.com/vogler.

Friday, April 11, 2003

SUPREME COURT TO DECIDE RELATIONSHIP BETWEEN TRADEMARK LAW AND COPYRIGHT LAW

April 11, 2003
In This Newsletter:

SUPREME COURT TO DECIDE RELATIONSHIP BETWEEN TRADEMARK LAW AND COPYRIGHT LAW

An upcoming Supreme Court decision may help clarify the relationship between trademark law and copyright law in situations where a copyright has expired.
A video distributor sold videos of a public domain TV series originally produced by Twentieth Century Fox. The distributor, Dastar, copied a substantial portion of the series and resold it under a new title, without giving Fox credit for creating the series.
Fox claimed that this repackaging misled buyers into thinking that Dastar created the work itself and sued Dastar for reverse passing off, that is, representing that someone else's goods and services are one's own.

Even though Dastar did not show that consumers were confused, a Federal District judge ruled that Dastar had indeed infringed on Fox's copyright through "bodily appropriation" of the video series, and ordered Dastar to pay twice the profits from the sale due to deliberate and willful infringement.

Dastar lost on appeal; however, the Supreme Court determined that the case is worth of closer scrutiny. A decision is expected in July.

Twentieth Century Fox v. Entertainment Distributing, 34 Fed.Appx. 312, 202 U.S.App.LEXIS 7426 (9th Cir. 2002), cert. granted sub. nom., Dastar Corp. v. Twentieth Century Fox, 123 S.Ct. 816, 2003 U.S.LEXIS 554 (2003)

"DUNSMORE" PREMIERES AT BIFF AND METHOD FEST

Congratulations to our clients, Peter Spirer and Michael Andrews. Their film, "Dunsmore," has been selected for screening on April 12 and 15 at the Bermuda International Film Festival and at Method Fest on April 15 and 17 in Burbank, California.
For Bermuda International Film Festival tickets and information, visit the website at:http://www.bermudafilmfest.com/

For Method Fest tickets and information, visit the website at:http://www.methodfest.com/methodfest_2001/index.htm

"LEVITY" OPENS IN L.A. AND NEW YORK

LEVITY, produced by our client Echo Lake Productions, opens in Los Angeles and New York City. The film opened the Sundance Film Festival this January. Levity is directed by Ed Solomon. It stars Billy Bob Thornton, Morgan Freeman, Holly Hunter, and Kirsten Dunst in a story about a murderer seeking closure and redemption for his crime.

In Los Angeles, the film is playing at Laemmle's Monica 4Plex, Laemmle's Sunset 5, Pacific Galleria Stadium 16 in Sherman Oaks, and United Artists Pasadena Marketplace.
In New York, the film is playing at AMC Theatres Empire 25 in Midtown, Loews Cineplex Lincoln Square on the Upper West Side, and UA Union Square 14 in the Flatiron district.To learn more about the film, visit Sony's website:http://www.sonyclassics.com/levity/index-withflash.html

Wednesday, March 19, 2003

COURT TV CAN USE NEWS FOOTAGE WITHOUT A LICENSE AS A FAIR USE

March 19, 2003

In This Newsletter:

COURT TV CAN USE NEWS FOOTAGE WITHOUT A LICENSE AS A FAIR USE

Plaintiff Los Angeles News Service generates income by licensing video footage to news stations. It has licensed the footage of the beating of Reginald Denny during the L.A. riots, which occurred after the acquittal of police officers accused of beating Rodney King. Some news outlets, however, have used the footage without a license, claiming their use is a fair use permitted under the Copyright Act.

LA News Service sued Court TV and Group W Newsfeed (now owned by CBS) after Court TV used segments of the Reginald Denny video footage to promote its coverage of the trial of one of those accused of beating Denny, and after Group W Newsfeed distributed the footage to its subscribers. Initially a Federal District Judge dismissed the case on a motion for summary judgment. On appeal, LA News was able to partially reverse that ruling because critical pieces of evidence offered by the Plaintiff were excluded as inadmissible. The Judge found that some of the evidence was, in fact, admissible and could be used by a jury to decide in LA News Service's favor. The dismissal was therefore reversed.
However, Court TV had used this clip to tease coverage for a related trial and an evening news program. Based on the specific facts, the Court of Appeals affirmed dismissal of LA News Service's claims, stating that Court TV had a right to air the clips based on the fair use doctrine.

Los Angeles News Service v. CBS Broadcasting, Inc., 305 F.3d 924, 2002 U.S.App.LEXIS 18843 (9th Cir. 2002)

"DUNSMORE" TO SCREEN AT METHOD FEST AND BIFF

Congratulations to our clients, Peter Spirer and Michael Andrews. Their film, "Dunsmore," has been selected for screening at the Bermuda International Film Festival and for a West Coast premiere at Method Fest, which will be held in Burbank, California. Both festivals are in April.
For more information about Method Fest, visit their website at:http://www.methodfest.com/methodfest_2001/index.htm
For more information about Bermuda International Film Festival, visit their website at:http://www.bermudafilmfest.com/

HARD WORK AND SELF-DISTRIBUTION BRING PRESS TO FILMMAKER

In another example of how elbow grease and ingenuity do pay off, VideoBusiness magazine featured our client Jimi Petulla and his self-distributed film, "Reversal," in a recent issue.
Unable to land a distribution agreement, Petulla set up a website to sell the film directly to viewers and has sold about 13,000 DVD copies in 120 days. He attributes the sales volume to the film's "niche appeal," saying, "Filmmakers need to know that if you have movie in a niche, you can reach that niche through the Internet."
VideoBusiness magazine can be found at: http://www.videobusiness.comVisit the official "Reversal" website at: http://www.reversalthemovie.com

FIND PRODUCT PLACEMENT CONTACTS ONLINE AT E.R.M.A.

Filmmakers looking for product placement deals can search online at: http://www.erma.org
The website, run by E.R.M.A., the Entertainment Resources & Marketing Association, lists contacts for more than 70 companies that represent dozens of well-known brands. The site also contains information on the organization itself, which seeks to "ensure high-quality ethics and standards of operation in the industry."

Wednesday, January 29, 2003

Congress Allows Educators to Transmit Copyrighted Works over Internet

January 29, 2003

In This Newsletter:

Mark Litwak to Lecture at University of British Columbia Feb. 6-8

Mark Litwak will be teaching two of his most popular day-and-a-half courses at the University of British Columbia in February.
"Self-defense for Writers & Filmmakers" will be held February 6-7. This seminar explains how writers and filmmakers can prevent problems from arising by properly securing underlying rights and by encouraging the other party to live up to agreements by adding performance milestones, default penalties and arbitration clauses. Participants will also learn what remedies are available to enforce their rights in the event of a dispute.
"Financing and Distributing Independent Features" will be held February 7-8. This seminar explores how independent films are financed and distributed. The seminar includes an extensive handout with a long-form distribution contract, checklists and other materials useful in preparing to raise cash and distribute your film.
For more information and online registration, click here:http://www.cstudies.ubc.ca/newsletter/film/

Congress Allows Educators to Transmit Copyrighted Works over Internet

While the United States has some of the most protective copyright laws in the world, certain groups are exempt from licensing copyrighted material. Among these are non-profit educators who, since 1976, have been free to perform copyrighted works in classrooms and transmit copyrighted nondramatic literary and musical works to classrooms via closed-circuit television without copyright licenses.

Now, thanks to a recent amendment by Congress, non-profit educators can use copyrighted works of almost any kind in distance education courses conducted over the Internet. The transmission can be made to anywhere the enrolled student is, so long as the transmission is part of the equivalent of an in-class discussion.
The amendment, known as the TEACH Act, allows non-profit instructors to transmit "reasonable and limited portions" of movies and music in addition to works previously allowed for license-free use under the 1976 Copyright Act.

The TEACH Act does not change the fair use doctrine. To prevent abuse, the Act has two limitations: only accredited non-profit educational institutions may receive the exemption and "secure tests" such as the SAT and works "primarily" used in Internet instruction must still be licensed.

Hollywood.com to Host 2-day Pitch & Networking Conference
Hollywood.com, founder of the Hollywood Film Festival, will host a pitch and networking conference on March 1 & 2, 2003 called "Sell Your Story to Hollywood Buyers."
Registration for "Sell Your Story to Hollywood Buyers" is $195 by January 31, $245 after.For more information and to register, call 310-288-1882 or click here:http://www.hollywoodawards.com/writing/index3.html