Articles Tagged with Intellectual Property Lawsuit

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The Walt Disney Company recently suffered a setback in a California federal court. Specifically, a judge has denied Disney’s request for a preliminary injunction against Redbox that would have forced the DVD-rental company to stop reselling the download codes for digital copies of the studio’s films.

redbox-1Redbox’s movie rental kiosks have become a familiar part of the landscape in recent years. Consumers stop by these kiosks for the latest releases. For the most part, Redbox has distribution deals with the major movie studios that allow them to profit by renting out the studios’ films. However, Redbox has no such agreement with Disney.

Accordingly, Redbox purchases Disney-distributed movies from retailers, then slips them into their kiosks for customer rental. Disney and other movie studios frequently put new films in combo packs that feature DVD and Blu-ray copies of the films along with a download code for getting a digital copy. In addition to renting DVDs and Blu-rays, Redbox has been selling the download codes on slips of paper that are obtainable at their kiosks.

When Disney found out about this practice, they immediately launched a lawsuit. Among the charges in the complaint were copyright infringement, false advertising, unfair competition, tortious interference with customer contracts and breach of contract. Redbox quickly countersued, arguing that the studio was trying to stifle possible competition for its soon-to-be launched digital streaming service.

Not only has a federal judge denied Disney’s request that Redbox be stopped from re-selling download codes, but also the judge says Disney is actually misusing copyright law. On each Disney movie combo pack, consumers will find language stating that the download code cannot be sold or transferred. The studio argued that this constitutes a legally binding contract, but the judge did not agree. In fact, the judge said that there is no law that prevents what Redbox did. After the “first sale,” which was the lawful purchase of the combo pack, the owner is then free to dispose of the copies as they wish.

Copyright law can be incredibly nuanced. Work with a skilled business attorney to protect your intellectual property rights.

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Does a company have the right to use someone’s image without their permission? That question is central to a new lawsuit. While the lawsuit’s merit remains undetermined, it is stirring up negative publicity for the company. Entrepreneurs who are starting an ad campaign may want to consult with an experienced business attorney to avoid finding themselves in a similar situation.

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Plaintiff Leah Caldwell filed her lawsuit against Chipotle Mexican Grill. The complaint names Steve Ells, the company’s founder and CEO, as a defendant as well as a photographer named Steve Adams.

Caldwell alleges in her complaint that her photograph was taken without her knowledge while she ate in a Chipotle restaurant in Denver during the summer of 2006. She recalls that the restaurant was virtually empty, and she also states that she did not see any cameras or notices of a photo shoot being underway. Nevertheless, as she left the restaurant, she alleges that Adams approached her and asked if she would sign a release for the use of her image. Caldwell refused.

Caldwell was in Orlando in December 2014 when she visited another Chipotle location, only to see her image displayed. In her complaint, she says that the image was digitally altered, most notably by including bottles of alcohol in her vicinity. A few months later, she visited two other Chipotle locations in California, only to see her picture yet again.

She responded by filing the lawsuit, claiming that Chipotle did not have the right to use her image in their marketing campaign. Caldwell is representing herself in the case, and she has asked for a settlement of more than two billion dollars, the amount which she says the restaurant chain earned as a result of the use of her unauthorized photo.

Chipotle has not commented publicly on the suit, and much investigation will be required to determine whether or not Caldwell’s rights were violated and if so, how much money she may be entitled to. Speaking with a qualified business attorney is the best way to avoid legal pitfalls when it comes to using or designing marketing materials.