Archive for July 2009

Website Law / Web Law – Court of Appeal of England and Wales considers effectiveness of exemption clauses on websites

Friday July 31st 2009, by Piers Strickland

Most people (especially cautious creatures such as lawyers) worry a bit when posting content online in blogs etc, especially anything which could be considered to be “advice”, legal or otherwise.  The thought of some nicompoop relying on a blog instead of paying for proper detailed advice can keep website owners up at night.  The Court of Appeal of England and Wales has kindly added to that paranoia.  Many thanks, M’Luds.

In a case about a disclaimer on the website of a pool installers’ trade body, SPATA (Gary Patchett And Karen Patchett V Swimming Pool & Allied Trades Association Ltd), the Court of Appeal had to decide whether the disclaimer provided on SPATA’s website was effectively brought to the Patchetts’ attention to enable SPATA to escape liability.

The case was quite complex and entailed a review of the long-standing English case law surrounding exclusion clauses, including the case of  Hedley Byrne v Heller.  This old case set out a test for deciding the scope of a duty of care between advisor and advisee.

Altough SPATA won, the take away message from this case is that exemption clauses should be located on the same page as any “advice” given on a website.  Hence, if your website has blogs or articles on it, then a link or reference to the exemption clause in question should be clearly visible on the same page.  Constructing your site like this would increase the chances of any exemption clause at least being effectively brought to the attention of the relevant reader.  (Whether the exemption clauses will be effective themselves is another question and will be determined by how well they are drafted.)

This court decision will be important in terms of Website Law / Web Law.  Many (cautious) website owners will be reviewing their website terms and conditions and exemptions nervously in light of this new decision.

This case further serves to emphasise that Website Law / Web Law does not stand still.  In order to maximise the chances of websites being fully compliant with the various “website laws”, website owners should seek periodic legal advice to ensure that they are minimising their exposure to legal liabilities, for example by tweaking their exemptions clauses and website terms of use.

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Web law / Website law

Thursday July 30th 2009, by Piers Strickland

There is no single source of “website law” or “web law”.  Instead, the law affecting websites (hereinafter described in this article as “Website Law”) is varied and complex, comprising elements of both civil and criminal law.

The following precise bodies of law may need to be considered by website owners operating in the UK:

  • Copyright issues – websites which host copied text and other content might run into copyright infringement issues.  Website owners will also want to make sure that they own their important copyright and other important content (which may be protected by a range of intellectual property rights).
  • Trade mark issues – websites which use a trade mark in a URL address or otherwise use brands / trade marks in the course of trade may risk brand disputes (i.e. trade mark infringement proceedings or passing off disputes).
  • Domain name issues – use of a domain name which is too close to another’s brand may also lead to a brand dispute / trade mark infringement issues.
  • Defamation – any libellous content on your website could lead to a defamation issue on your website.
  • Data protection – website owners are likely to be processing personal data in a way which is likely to need consideration of the UK’s Data Protection Act.  Breaches of data protection law can lead to criminal sanctions.
  • E-commerce laws, such as the Electronic Commerce Regulations and the Distance Selling Regulations.
  • E-marketing Law – such as The Privacy and Electronic Communications (EC Directive) Regulations 2003, which sets out laws relating to electronic marketing and related communications.

In other words, Website law is a complex area.  Lawyers who do not specialise in the above area are not really well placed to advise on Website Law / Web law.  If you require expert advice on Website Law, or on any other aspect of “Internet Law”, then please contact Strickland LLP.

In a series of future blogs, I will go into a bit further detail about the above areas of Website Law.

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Important ECJ case for copyright disputes and copyright litigation

Wednesday July 29th 2009, by Piers Strickland

SUMMARY: ECJ holds that even 11 word long extracts from newspapers can amount to acts of copyright infringement if such reproductions are “the expression of the intellectual creation of their author”.

In a the recent case of Infopaq International A/S v Danske Dagblades Forening, Case C‑5/08, 16 July 2009, the ECJ considered whether reproduction of extracts from newspaper articles infringed copyright.

Facts

Infopaq International A/S (“Infopaq”) operated a business which collected summaries of selected articles from Danish daily newspapers.

Danske Dagblades Forening (“DDF”), a professional association of Danish daily newspaper publishers, became aware in 2005 that Infopaq was scanning newspaper articles for commercial purposes without authorisation from the relevant rights-holders. Taking the view that such consent was necessary, DDF complained to Infopaq about this procedure.

Infopaq denied that consent was required, and brought an action against DDF before the Østre Landsret (Eastern Regional Court), claiming that DDF should be ordered to acknowledge that Infopaq was entitled in Denmark to apply its data capture procedure without DDF’s or its members’ consent. The Østre Landsret dismissed that action, so Infopaq then appealed to the Højesteret (the Danish Supreme Court).

The Højesteret stayed the proceedings and asked the ECJ for a preliminary ruling on:

•    Whether the concept of ‘reproduction in part’ within the meaning of the Copyright Directive is to be interpreted as meaning that it encompasses the storing and subsequent printing out on paper of a text extract consisting of 11 words;

•    Whether acts of reproduction occurring during a data capture process, such as that at issue in the main proceedings, satisfy the conditions laid down in Article 5(1) of Copyright Directive and, therefore, whether that process may be carried out without the consent of the relevant rightholders, since it is used to draw up summaries of newspaper articles and consists of scanning those articles in their entirety to produce a digital file, storing an extract of 11 words and then printing out that extract.

The Law

Article 2(a) of the Copyright Directive states that:

“Member States shall provide for the exclusive right to authorise or prohibit direct or indirect, temporary or permanent reproduction by any means and in any form, in whole or in part:

(a) for authors, of their works”

Article 5(1) of the Copyright Directive provides that:

“Temporary acts of reproduction referred to in Article 2, which are transient or incidental and an integral and essential part of a technological process and whose sole purpose is to enable:

(a) a transmission in a network between third parties by an intermediary, or

(b) a lawful use

of a work or other subject-matter to be made, and which have no independent economic significance, are exempted from the reproduction right provided for in Article 2.”

The exceptions and limitations provided for in Article 5(1) can only be applied in certain special cases which do not conflict with normal exploitation of the work or other subject-matter and do not unreasonably prejudice the legitimate interests of the right-holder (Article 5(5), Copyright Directive).

Decision

The ECJ held that Infopaq’s data capture process did come within the concept of reproduction as set out in Article 2 of the Copyright Directive, if the elements reproduced were the “expression of the intellectual creation of their author”.

The ECJ also ruled that the act of printing out an extract of 11 words, during such a data capture process, was not transient in nature as required by Article 5(1) of the Copyright Directive. Therefore, that process could not be carried out without the relevant right-holders’ consent.

Comment

The battleground in copyright disputes and in copyright litigation will be over the question of whether the reproduction in question will constitute an “expression of the intellectual creation of their author”.   It has been left for the national courts to decide upon this issue.

In the courts of England and Wales, copyright infringement matters have been recently decided by assessing whether a “substantial part” of the copyright work has been reproduced.  The substantial part test is part qualitative and part quantitative.

The new test introduced by the ECJ seems to be different.  It doesn’t seem to place the reproduced text in its originating context, but instead asks whether this text alone is the expression of the intellectual creation of their author.  This will be difficult for the national court to decide during copyright litigation proceedings and will provide hours of fun for barristers in court (and thus hours of frustration for clients…).

The ECJ also gave some useful guidance about Article 5(1) of the Copyright Directive.  In particular, in respect of what amounts to a “transient” act for the purposes of that provision. The ECJ made clear that, amongst other things, in order to fall under this condition the process had to be automated so that the copy created was deleted automatically, without human intervention.  Again, the ECJ left it for the national courts to decide whether such acts of reproduction were transient given this guidance.

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Trade mark litigation – the importance of instructing a specialist trade mark litigation lawyer

Wednesday July 29th 2009, by Piers Strickland

When I am acting for a client and the other side has instructed a lawyer who does not understand trade mark law or is handling the dispute themselves in-house with no specialist trade mark law experience, then, in tennis terms, I always feel it is 40-0 to my client, on serve.

Trade mark litigation is not an area for a non-specialist, as trade mark law is a specialist area requiring a broad experience of handling a range of trade mark disputes through the courts.

Set out below are some of the traps for the inexperienced lawyer dabbling in trade mark disputes / litigation:

1.    Beware a threats action. Section 21 of the Trade Marks Act 1994 gives the right to any person aggrieved by a groundless / unjustified threat of trade mark infringement.  Therefore, if you send out an unjustified threat of trade mark infringement (such as by way of a cease and desist letter / letter before action), then you, the trade mark owner, may find yourself as the defendant in a trade mark litigation action. Not the best way to start a trade mark enforcement programme…

2.    Think about other intellectual property rights. Intellectual property law encompasses a myriad of different intellectual property rights.  You want to make sure that you are enforcing the correct intellectual property rights.  Think about and take specialist advice on unregistered trade mark law (passing off), copyright, design rights, confidential information, patents etc.

3.    Consider building up your registered trade marks (and other intellectual property rights) portfolio before writing to the other side in a trade mark dispute.  It may often be better to get your house in order before firing off a letter alleging trade mark infringement.

4.   Consider the position in other jurisdictions. Even if you have a strong case for trade mark infringement in the UK, do you have operations in other countries, or an intention to expand internationally?  How will a trade mark dispute in the UK affect the trade mark position internationally?  What is your intellectual property / trade mark position outside the UK?  For example, could the other side cause you problems in the future outside the UK in respect of intellectual property infringements?

5.    Consider how you are going to pay for trade mark infringement / litigation proceedings if needs be. (Strickland  LLP can help here as our fees are much more competitive than our competitors at BigLaw).

6.    Make sure you get the first letter to the other side right. This is important, not only for creating the right impression on the other side, but also to create the right impression on the ultimate audience, the court.  Poor letters before action for trade mark infringement and other intellectual property infringement matters can have costs consequences later on in the litigation.

7.    Think laterally about the settlement agreement. If you reach a settlement with the other side, i.e. you avoid having to go through a round of litigation and attend court hearings, or at least you bring the litigation to an early end, then make sure the settlement agreement is sufficient for your needs, whether you are the claimant or the defendant.  One of the most annoying situations for a client is to spend a lot of money on an intellectual property dispute / piece of intellectual property litigation, only then not to fully exploit their bargaining position by virtue of poor drafting in the final version of the settlement agreement.

The above just gives a flavour of the inherent complexities in trade mark litigation and other forms of intellectual property litigation.

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Trade Marks Disputes Regarding New Company Names – The Company Names Tribunal

Friday July 17th 2009, by Piers Strickland

Companies who wish to protect their brands which subsist in their actual company names now have another option when there is such an opportunistic application for a new company name: they can make an application to the Company Names Tribunal (an adjunct to the UK’s intellectual property office – which manages the UK’s trade mark register).

COMMENT: Such an application costs an initial fee of £400.  As such, this should prove to be a potentially cost-effective method of addressing nuisance trade mark disputes / issues arising from the register of companies.  Certainly the cost will compare very favorably compared to using the courts to issue trade mark infringement proceedings.

However, one point to note is that if the new company name application at issue is not opportunistic, then an application should be made to Companies House, rather than the Company Names Tribunal,

Further information about the Company Names Tribunal can be found on http://www.ipo.gov.uk/cna.htm.

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