JOLT Digest

Despite First Amendment Challenge, Seventh Circuit Allows High School Sports Association to Exclusively License Broadcasting Right

By Abby Lauer – Edited by Andrew Segna

Wis. Interscholastic Athletic Ass’n v. Gannett Co., Inc., No. 10-2627 (7th Cir. Aug. 24, 2011)
Slip Opinion

The Seventh Circuit Court of Appeals affirmed the District Court for the Western District of Wisconsin, which had granted summary judgment to the Wisconsin Interscholastic Athletic Associate (WIAA) in a declaratory judgment action against local news media company Gannett Co., Inc.

The Seventh Circuit held that it is constitutional for the WIAA, a state actor, to exclusively license the right to broadcast tournament games played by member schools. In so holding, the court rejected Gannett’s argument that WIAA’s contract, which grants American Hi-Fi the exclusive right to stream tournament games and requires consent and payment for third-party broadcasts of entire games, violates the First Amendment.

The State Bar of Wisconsin provides an overview of the case. Techdirt criticizes the decision, expressing concern that the Seventh Circuit has created a new intellectual property right. (more…)

Seventh Circuit Denies Moral Rights Protection to Chicago Garden
By Albert Wang – Edited by Matthew Gelfand

Kelley v. Chicago Park District, Nos. 08-3701 and 08-3712 (7th Cir. Feb. 15, 2011)
Slip Opinion

The Court of Appeals for the Seventh Circuit affirmed the Northern District of Illinois’ judgment in favor of the Chicago Park District on Chapman Kelley’s Visual Artists Rights Act (VARA) claim, while reversing the court’s judgment in favor of Kelley on his claim of implied contract.

The Seventh Circuit, while affirming on the VARA claim, rejected the district court’s finding that Kelley’s garden was unoriginal and that VARA categorically excluded site-specific art. The court held that the garden was ineligible for copyright not for want of originality, but of authorship and fixation.  As a work not subject to copyright, the garden was not covered by VARA’s grant of moral rights. In addition, the court attacked the district court’s finding that the garden constituted a painting and sculpture for VARA purposes. In reversing on the contract claim, the circuit court held that the commissioner lacked the power to bind the city through her representations.

IPLawChat provides an overview of the case. Clancco and ArtSlant discuss the decision’s ramifications for concept art at large. (more…)

Charitable Activities Do Not Create Commercial Interests in Untrademarked Names
By Harry Zhou – Edited by Ryan Ward

Stayart v. Yahoo! Inc., __ F.3d __, 2010 WL 3785147, No. 09-3379 (7th Cir. Sept. 30, 2010)
Slip Opinion hosted by Seattle Trademark Lawyer

On September 30, 2010, the Seventh Circuit affirmed the United States District Court for the Eastern District of Wisconsin, dismissing a complaint filed by Beverly Stayart alleging false endorsement under the Lanham Act and various state law claims against Yahoo! Inc. [hereinafter “Yahoo”] and other defendants.

Stayart’s complaint centered on the unfavorable search results generated by Yahoo’s search engine when she used her name as the search string. In finding that Stayart lacked standing under § 43(a) of the Lanham Act, the court held that Stayart’s charitable activities such as protests, publication, and boycotts did not imbue into her name a “commercial interest” necessary for a finding of Lanham Act violation. The court also affirmed the district court’s dismissal of Stayart’s state law claims under the abuse of discretion standard.

Lowering the Bar and Internet Cases offer brief summaries of the opinion. Eric Goldman voices support for the court’s ruling. A summary of the facts leading up to the filing of suit can be found at Seattle Trademark Lawyer. (more…)

No Permission Needed to Copyright a Derivative Work

By Adrienne Baker – Edited by Ian C. Wildgoose Brown
Schrock v. Learning Curve Int’l, No. 08-1296 (7th Cir. Sep. 9, 2009)
Opinion

On November 5, the Court of Appeals for the Seventh Circuit reversed and remanded a decision of the District Court for the Northern District of Illinois, which had ruled that copyright for a derivative work requires permission from the underlying copyright holder to be valid. The district court’s ruling was based on reasoning in Gracen v. Bradford Exchange, 698 F.2d 300 (7th Cir. 1983). The Seventh Circuit instead held that a valid copyright in a derivative work is created by “operation of law” and not by authority of the copyright owner in the underlying work, unless a contract dictates otherwise. Additionally, the court held that there is no heightened standard of originality for copyright protection in a derivative work.

The Exclusive Rights Blog provides an overview of the case. Rebecca Tushnet’s 43(B)log criticizes the circuit court for not explicitly overturning Gracen and asserts photographs of copyrighted material should not be treated as derivative works. (more…)

Charges against Craigslist for their “Adult Services” section dismissed by Illinois District Court
By Ye (Helen) He – Edited by Eric Engle

Dart v. Craigslist, Inc., No. 09 C 1385 (N.D. Ill. Oct. 20, 2009)
Opinion

The United States District Court for the Northern District of Illinois held, on Craigslist’s motion for judgment on the pleadings, that Craigslist is not liable for the content posted by its viewers. The court cited Section 230(c) of the Communications Decency Act, concluding that Craigslist, as an Internet classified ads service provider, is immune to civil liability for third party content. The court found Craigslist analogous to an ISP or phone service provider and thus not liable for users’ content and conduct, as opposed to, as plaintiff contended, a newspaper or magazine which may be held liable for its ads.

Bloomberg.com and Eric Goldman’s Technology & Marketing Law Blog summarize the case.

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