Pre-registration of a Copyrightable Work

An often overlooked method to protect copyrightable works is pre-registration. This method will likely become a little more prominent because, earlier this year, the United States Supreme Court determined in Fourth Estate Public Benefit Corp. v. Wall-Street.com, 585 U.S. ___ (2019) that a copyright owner must wait to bring suit for copyright infringement until their works have been registered. Previously, in the view of certain lower courts, the copyright owner simply had to apply for registration. This decision increased the burden on copyright owners to bring a suit for infringement, but the Supreme Court noted several reasons for its decision, including pre-registration.

Pre-registration is a tool used to protect unpublished works that are in the final stages before commercial distribution, making them particular susceptible to copyright infringement. Instead of following the full registration process that will take over half a year, the copyright owner would submit the work to the United States Copyright Office and, after a limited review, will receive pre-registration. Under Section 408(f) of the Copyright Act, a work that has been pre-registered provides the copyright owner an opportunity to immediately bring a suit for copyright infringement.

Although this particular method of protection might have limited application, it is an important tool to ensure that owners of particularly vulnerable copyrightable works are able to bring suit immediately against those infringing on their works. Otherwise, the copyright owner will have to wait eight or nine months to receive actual registration from the copyright office before they can bring a suit for copyright infringement, which would likely damage the value of the underlying intellectual property. As always, the attorneys at Vandenack Weaver are available to assist with protecting your intellectual property.

VW Contributor: Alex Rainville
© 2019 Vandenack Weaver LLC
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Copyright Infringement: Will Congress Make it Easier to Obtain a Remedy?

On October 22, 2019, the United States House of Representatives passed H.R. 2426, The Copyright Alternative in Small-Claims Enforcement Act of 2019. The intent of the legislation is to make it easier for copyright owners to seek enforcement of their rights in situations where the overall damages to the copyright owner are minimal. Essentially, the Copyright Office would create a Copyright Claims Board that would adjudicate infringement claims with damages under $30,000.

The rationale behind the legislation is that cost is a significant impediment to a copyright holder bringing a claim against someone infringing on their work. To bring a claim, as recently determined by the United States Supreme Court, the underlying work must be registered with the United States Copyright Office, which takes time and includes certain expenses. Once registered, the copyright owner can only seek a remedy in federal court, since that is the exclusive jurisdiction for a copyright infringement claim. This process is expensive and, although attorney’s fees can be recovered pursuant to section 505 of the Copyright Act, the United States Supreme Court has also recently limited the scope of recovery. The end result is that many copyright owners are unable to seek a remedy.

This legislation passed with near unanimous support in the United States House of Representatives and moves to the United States Senate for consideration. Should this legislation ultimately become law, it will likely have a significant impact on how copyright owners protect their intellectual property.

VW Contributor: Alex B. Rainville
© 2019 Vandenack Weaver LLC
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Continue to Scrape Away! Microsoft’s LinkedIn Ordered to Lift Ban on Third Party Access to Public Profile Data

In the closely followed hiQ Labs, Inc. v. LinkedIn case, the Ninth Circuit affirmed the district court’s decision holding that hiQ, a data analytics company, is entitled to a preliminary injunction forbidding LinkedIn from denying hiQ access to publicly available LinkedIn member profiles. hiQ had been scraping data and building products from LinkedIn public profiles. LinkedIn argued that hiQ was in violation of LinkedIn’s user agreement as well as California law and federal law, including the Computer Fraud and Abuse Act (CFAA) and sent hiQ a cease-and-desist letter.

Similarly, back in 2018, a district court in Washington D.C. ruled that using automated tools to access publicly available information on the open web is not a crime, even when a website bans automated access in its terms of service. The case, Sandvig v. Sessions, narrowly interpreted the CFAA. This federal law makes it illegal to access a computer connected to the Internet “without authorization,” but neglects to specify what “authorization” means. In pertinent part, the court reasoned that:

“Scraping is merely a technological advance that makes information collection easier; it is not meaningfully different from using a tape recorded instead of taking written notes, or using the panorama function on a smartphone instead of taking a series of photos from different positions. And, as already discussed, the information plaintiffs seek is located in a public forum.”

The Ninth Circuit decision and reasoning is in line with Sandvig. However, the court was clear not to outlaw a website owner from pursuing any recourse against wholesale appropriation of its public content. Rather, the court articulated a public policy concern if companies like LinkedIn can use sole discretion to determine who can collect and use data when that company does not own the data which they make publicly available to viewers. Read in this way, the court is mitigating the opportunity for LinkedIn to gain a monopoly on public information of the site’s 500 million member profiles.

Many view hiQ Labs, Inc. v. LinkedIn as a victory for the open source web. The internet is a critical space for researchers, journalists, businesses, and individuals who require meaningful access to collect and analyze public information. Specifically, businesses use web scraping bots to relentlessly pursue data which might help grow their business by monitoring competitor pricing. Web scraping is also integral for predictive analysis, where businesses can study and understand products and associated consumer behavior to assess their costs and benefits. Thus, web scraping provides significant business value to a multitude of companies across various sectors.

LinkedIn could appeal the 9th Circuit’s decision to the U.S. Supreme Court. Until then, data miners, researchers, and other third parties can continue to use any public online data not owned or password protected by a website owner.

VW Contributor: Skylar Young
© 2019 Vandenack Weaver LLC
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Technology Vendor Due Diligence; Protecting your Brand

Most companies in the modern economy utilize technology to compete in an increasingly competitive marketplace. In order to utilize third-party technology, a business has to obtain a license from the technology vendor or reseller, otherwise risk intellectual property infringement. Even when using open-source software, the use is subject to licensing restrictions and other limitations. While getting the licensing correct is critical to ensuring your business obtains the most value from the technology, an often over-looked element of procuring technology is the due diligence phase.

Technology due diligence is similar to diligence performed on any vendor, such as ensuring the technology will fit your needs and obtaining favorable pricing, but the due diligence should be far more extensive in the modern technological world. By way of example, in the healthcare industry, over 25 million health records have been breached to date in 2019, many of which as a result of a third party technology provider failing to protect the health information. This means that businesses, especially those in a regulated industry where the technology vendor has access to personal information, need to perform additional diligence on third-party technology providers.

The additional diligence should focus on what the vendor is doing with the data and personal information, ensure that the vendor has protections and controls that meet the various, and often overlapping, state, federal, and international data protection rules, and ensure that their technical protections meet industry standards. Although this will likely require obtaining additional expertise from outside your organization, taking these additional steps during the diligence phase will protect your brand from a potential disruptive data breach at a vendor that results in your business being harmed.

 

VW Contributor: Alex Rainville
© 2019 Vandenack Weaver LLC
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