Fasten Your Seatbelts, It’s Going to Be a Bumpy Night: The Implications of Recent Delaware Case Law on the Film Industry

Recently, the Court of Chancery in eBay v. Newmark doubted the ability of firms to cite a threat to corporate culture as legitimate grounds for implementing a takeover defense. Just over a year ago, the Court in Amylinexpressed doubt about a firm’s ability to impede changes of control by embedding financial penalties, for lack of a better word, in otherwise ordinary business transactions. Jason Tyler argues that Hollywood presents an exceptional context, or, to put it another way, that the economic reality of movie studios pushes at the logical assumptions that underlie the eBay and Amylinholdings. Accordingly, if applied broadly, eBay and Amylin may threaten movie studios in particular.

How to Protect Against a Licensing Partner’s Bankruptcy: Patent Licenses and the Bankruptcy Code

Since the financial crisis of 2008, many contractual partners who formerly looked rock solid have experienced major cash-flow problems. In addition, it has always been the case that in some fields of technology, such as biotech, a significant number of businesses are expected to fail. Thus, it is important to think through at the outset how a license might be treated by a bankruptcy court, and where possible, to structure the agreement accordingly. How to best do this will depend primarily on whether a party is the patentee or the licensee, and on the extent to which rights are transferred (i.e. whether the transaction results in a sale or merely a license agreement). As Jordan Markham argues, in the context of a bankruptcy proceeding, the patentee is generally better served by a greater, and a licensee by a lesser, transfer of rights.

Regulating the Film Industry in China: A New Approach

For U.S. filmmakers, the People’s Republic of China represents a prodigious market opportunity. Yet, true exploitation of the market is simply chimerical due to an obstinate web of import quotas, censorship, and government intervention, all founded upon a guise of cultural protectionism.Brian R. Byrne argues that: (i) China’s authoritarian approach to film distribution, coupled with its deficient intellectual property regime, actually promotes the dissemination of Western culture within its borders – a direct perversion of its intentions; and (ii) in order to achieve its cultural objectives, China must undertake a number of key reforms.

Contributory Liability for Trademark Counterfeiting in an Ecommerce World

Scott Gelin and G Roxanne Elings analyze the current standard of contributory liability in the wake of Tiffany (NJ) Inc. v. eBay, in which the Second Circuit affirmed the Southern District’s finding that eBay is not liable to trademark owners for counterfeit sales of their products by third parties on its site. After highlighting certain ambiguities in the current state of the law, the authors propose practical tips to help brand owners protect against counterfeit sales, and to help service providers and selling platforms avoid secondary liability.

Using Clean Hands to Justify Unclean Hands: How the Emergency Exception Provision of the SCA Misapplies an Already Controversial Doctrine

While the government’s encouragement—and even reliance—on third-party monitoring of citizens is not a new phenomenon, the emergency exception to the SCA adopted in the Patriot Act oversteps constitutional bounds by providing the executive with the incentive to exaggerate potential threats in order to gain the collaboration of the telecommunications companies. The policies underlying this strategy are similar to those explained and adapted by the Sixth Circuit while articulating its Clean Hands Exception.Brendan Coffman argues that by allowing the government to gain access to evidence it normally would not be able to obtain, and ignoring the normal parameters of the exclusionary rule, the Sixth Circuit created a regime encouraging complicity between law enforcement and private citizens. Similarly, the arguments running contrary to the Clean Hands Exception ring true when assessing the emergency exception: the government has too great an incentive to encourage third parties to violate the privacy rights of others, and the third parties, especially telecommunications companies, are ultimately trapped in a Hobson’s Choice.

Software Developers, On Guard!: Offering Software for Sale Can Trigger a Bar to Patentability Even If the Software Is Untested and Incomplete

Paul A. Ragusa and Jack Chen discuss the on-sale bar to patentability in the context of nascent software. They conclude that a simple investigation concerning whether software code was complete at the time of an offer for sale is insufficient to establish the critical date for the purposes under 35 U.S.C. § 102(b) (“Conditions for patentability”).

Foreign Formats – Licensing Optional?: Why ABC’s “Bombshell” Memo regarding Foreign Formats Isn’t Scandalous at All

On June 24, 2008, ABC Executive Vice President Howard Davine wrote a memo to ABC’s executive producers and show-runners which suggested that there may be no need to license a foreign television show when all that is being taken from the show is the “underlying premise.”Alexandra Schwartz argues that there is, in fact, no difference between the decisions to license a U.S. format and a foreign format. While Mr. Davine’s memo may be provocative, Schwartz concludes that it reaches a sensible legal solution. Simply put, show-runners and executive producers need not contract and pay for every concept they produce as a result of seeing or hearing about a foreign TV show, movie, or book.

Girl Talk, Fair Use, and Three Hundred Twenty-Two Reasons for Copyright Reform

The music of the artist known as Girl Talk consists of hundreds of pre-existing samples taken without permission from popular songs. As Girl Talk becomes more prominent, lawyers, journalists and bloggers have entered the debate regarding whether the use of pre-existing samples from copyrighted works is a “fair use” as defined in the U.S. Copyright Act of 1976.Brian Pearl analyzes the merits of the “fair use” argument in light of sparse and largely unsympathetic case law regarding music sampling and ultimately concludes that Girl Talk’s use of pre-existing samples fails to qualify as a “fair use.” The Article further proposes an amendment to the Copyright Act that would enable Girl Talk to record legally while fairly compensating the owners of the sampled works.