Showing posts with label advertising. Show all posts
Showing posts with label advertising. Show all posts

Thursday, September 5, 2024

In 'Baywatch' case, court ponders discovery rule for models' tort claims over ads posted on Facebook

Models suing an adult entertainment club occasioned the high court of Massachusetts to ponder the problem of social media and the statute of limitations on media torts in a decision Wednesday.

When I heard that the Massachusetts Supreme Judicial Court decided a case about Baywatch, I knew I would want to blog about it.

Alas, I was misled. "Bay Watch" in the instant matter has nothing to do with the The Hoff or 1990s TV.

Plaintiffs allege this ad depicts model Paola Cañas.
From Compl. ex. D.
Still, it's an interesting case. Bay Watch, Inc., is the owner of an adult entertainment club in Stoughton, Massachusetts, Club Alex's. In a lawsuit filed in federal district court in June 2021, six globally recognized models alleged that Club Alex's posted their images, some of them in scant swimwear, to Facebook to promote the club, even though none of the models had any association with the club. The models alleged trademark infringement, misappropriation ("right of publicity"), defamation, and conversion.

The issue in the trial court was the statute of limitations for the state tort claims. Sitting on the generous end of the spectrum, Massachusetts allows three years for media tort claims. But the ads the plaintiffs complained about appeared from 2013 to 2015. The district court accordingly granted summary judgment on the tort claims to the defendant in 2023. But on a plaintiff motion to reconsider at the end of the year, the court agreed to certify the limitations question to the Massachusetts Supreme Judicial Court (SJC).

Alas, not that one (IMDb).

The plaintiffs in the trial court had tried to avail of "the discovery rule," a common law rule that tolls the statute of limitations when it would work an unfairness on a plaintiff who is reasonably not cognizant that she suffered an injury for which there might be a legally responsible actor. 

The discovery rule gets a lot of play in toxic tort cases, in which illness alleged to have resulted from exposure to toxic substances might take years to manifest, and the risk of exposure might not even have been known to the victim at the time. Buttressing his decision with gender-equity-oriented social science, the late Judge Jack Weinstein famously used the discovery rule in the 1990s to give reprieve to plaintiffs suing the makers of DES, a once widely prescribed synthetic estrogen replacement that turned out to be dangerously carcinogenic.

The discovery rule is appealing as a matter of fairness, but applying it can introduce a thorny question of fact. And there are many more thorns when the rule is invoked in a case without the clear delimiters of physical injury.

It's often said, as a default matter, that the limitations period for media torts, such as defamation, runs from the time of publication. Usually that rule works well enough. But in some cases, plaintiffs are able to invoke the discovery rule. If cases are any indication, then defamation occurs in the disruption of business relationships more often than in the pop culture paradigm of media subject versus publisher. A businessperson, for example, might think she lost a contract on the merits of a bid and only later discover that she lost the contract upon the whisper of a false and harmful rumor into the right ear.

Proliferation of media in the internet age has made courts slightly more willing to afford plaintiffs an argument for the discovery rule, because mass media publication in a sea of online content might not rise to an injured's attention as quickly as a story in the town paper in ye olden days. But courts' patience is not without limit. In the online environment, courts have adapted another rule familiar to the conventional interplay of mass media and the discovery rule. As the SJC opined, in part quoting the Massachusetts Appeals Court:

"[W]here an alleged defamatory publication is broadly circulated to the public, and did not involve concealment or confidential communications," the discovery rule will not be applied, and the cause of action will accrue upon publication, as such widespread publication should have been discovered by the plaintiff.

In other words, the limitations period runs upon publication, unless plaintiff can invoke the discovery rule because a reasonable person would not have recognized the harm and arguably causal actor, unless the thing was out there for everyone so the plaintiff should have recognized the harm and arguably causal actor—in which case we come back around to publication again.

If that sounds circular .... Right. The problem with this approach is that if a reasonable person would not have recognized harm, cause, and actor, then, by definition, the plaintiff cannot be expected to have recognized harm, cause, and actor. In tort analysis, the word "should" means "a reasonable person would."

What this approach really allows is for the court to deny the plaintiff the latitude of the discovery rule as a matter of law, and to dismiss, without having to hassle (or Hassel) with the plaintiff's reasonable cognizance as a question of fact suitable for trial. In short, what the court giveth, the court may taketh away.

And that's what happened in the instant case. The federal district court first indicated that it was inclined to dismiss because the ads appeared too long ago. When the plaintiffs tried to invoke the discovery rule, the court was skeptical. These are world famous models with agents whose job it is to scan for unlicensed uses of clients' likenesses, and with lawyers who have sued over misappropriations before. All the same, the court concluded, credibility notwithstanding, these images were out there in the world long enough that the plaintiffs should have found out about them. So no discovery rule.

What seems to have given the court pause on reconsideration is that the images here were posted on social media. A paralegal in the employ of the plaintiffs

attested that there is no software that would allow her to efficiently search for the images in question and that Internet search engines do not search social media posts. As a result, the only available method is this "particularized research of particular establishments." It is this process, presumably, that led the plaintiffs to the defendant's Facebook posts.

But that took time.

The witness had a point. Google seems slow to index social media when it does at all. Many writers have trumpeted "the death of the search engine," as users prefer to seek answers in familiar social media not as polluted as Google search results with commercialization and distortions resulting from digital marketing under the guise of "optimization."

As well, the tech giants seem to have backed off image searching. When reverse image search first came out, I had fun seeing what famous people Google thought I looked like. Now, no matter what image I start with, Google either finds me, or finds nothing, saying, "Results for people are limited. Try searching a larger [image] area." The search tools can't have gotten dumber; that must be a choice. The SJC observed in evidence in the case that Facebook terminated its image search tool in 2021.

You see it, right?

There are now reverse image search apps, by the way, especially for celebrity matches. I'm apparently a dead ringer for UK actress Natalie Dormer (image via Flickr by Gage Skidmore CC BY-SA 2.0, cropped) or the great James Earl Jones (image via Flickr by Phil Davis CC BY-NC-SA 2.0, edited). Eat your heart out, Hollywood. The Celebs app sees me.

The federal district court thus asked the SJC to clarify how the statute of limitations works in a social media world.

In a characteristically methodical opinion for a unanimous court, Justice Scott Kafker stepped through the analysis in 25 pages. The opinion is elaborative, but it adds nothing new. The approach remains: publication, unless discovery rule, unless broad circulation. At greater length in conclusion, here is the court's explanation of the discovery rule in the context of social media:

Claims ... that arise from material posted to social media platforms accrue when a plaintiff knows, or reasonably should know, that he or she has been harmed by the defendant's publication of that material. Given how vast the social media universe is on the Internet, and how access to, and the ability to search for, social media posts may vary from platform to platform and even from post to post, that determination requires consideration of the totality of the circumstances regarding the social media posting, including the extent of its distribution, and the accessibility and searchability of the posting. The application of the discovery rule is therefore a highly fact-specific inquiry, and the determination of whether plaintiffs knew or should have known that they were harmed by a defendant's post on social media must often be left to the finder of fact. If, however, the material posted to social media is widely distributed, and readily accessible and searchable, a judge may determine as a matter of law that the discovery rule cannot be applied.

The record was insufficient, the SJC opined, to determine how the approach should work in the instant case. The plaintiffs had equivocated, the SJC observed, when asked when they first knew about the postings. If they knew before 2018, the court reasoned, then case over. Someone should ask them that.

It is possible for the conventional "whisper" scenario to play out on social media. The SJC cited a California case, Jones v. Reekes (Cal. Ct. App. 2022), in which plaintiff had been blocked from viewing the defendant's postings. Still, the California court concluded that the postings "were otherwise available to the public[,] and the block was easily circumventable;" moreover, the plaintiff was on alert generally to the defendant's derisive commentary. So the plaintiff was precluded from availing of the discovery rule, and the date of publication controlled.

Now I can't unsee it.
Jones was thus not exceptional as a mass media case, and I don't think Bay Watch is either. I suspect the SJC was being deferential to the federal trial court, giving it a chance to make the final call. It seems to me quite clear already that the district court did what the SJC commanded when it first ruled for the defense in 2023. The SJC having confirmed the rule, there seems little more for the district court to do but reenter that judgment.

The result might seem unfair to the assiduously searching plaintiffs, or, more precisely, their agents and lawyers. But the statute of limitations furthers meritorious competing interests, including finality in freedom from legal jeopardy on the part of all publishers.

The case in the SJC is Davalos v. Bay Watch, Inc., No. SJC-13534 (Mass. Sept. 4, 2024) (Kafker, J.) (FindLaw). The case in the federal court is Davalos v. Baywatch, Inc., No. 1:21-cv-11075 (D. Mass. Dec. 15, 2023) (Gorton, Dist. J.) (Court Listener).

UPDATE, Sept. 12: I was saddened to hear of James Earl Jones's passing shortly after I published this post (N.Y. Times, Sept. 9, 2024). All joking of resemblance aside, I was a fan.

Saturday, February 24, 2024

South American visitor wonders at lawyer billboards; artist imagines canine advocates instead

A young man I know from Paraguay recently visited the Philadelphia area for a week, his first time in the United States.

I texted to check on him when he returned home to Asunción. He had a great visit, was home safe and exhausted, he texted back, and had seen so much, it would take a while to process it all.

But one question, he wrote.

Three text messages reading 'There's something I noticed; Which is signs of lawyers all over Philly and on the highway (I-95); Why is that?'
 

Hmm.

I guess Americans get in a lot of accidents, I said. 

No, actually, I just texted, "🤑." I think that covered it.

Lawyer advertising is the theme of some delightful imaginings in a canine vein by Kensington Campbell: Instagram embed below. See more there or on TikTok. Hat tip @ Molly Sullivan and Frances Fendler.

Tuesday, February 13, 2024

Lawyers on social media delight, inform, raise ethics questions about attorney-client relationships

An attorney panel earlier this month shared the joys and hazards of lawyers addressing the general public through social media.

A hat tip to Mississippi attorney Kye C. Handy, Balch & Bingham, for introducing me to California attorney and influencer Reb Masel on TikTok, the J.D. genius behind Reading Iconic Court Transcripts and other legal commentary.

@rebmasel i dedicate this one to Kohl’s cash #transcripts ♬ original sound - reb for the rebrand
Reb Masel's Rebuttal
(Spotify, Apple, YouTube)
Reb Masel hosts the Rebuttal podcast at Spotify, Apple, and YouTube. Read more about her at Tubefilter, where she said in fall 2023 that she practices in defense-side civil litigation "for now." If you must know more about Pepperdine Law alumna Reb Masel in the muggle world, the Daily Mail wrote about her in 2022.

Handy served on an ethics panel at the Next Generation and the Future of Business Litigation program of the Tort Trial & Insurance Practice Section (TIPS) of the American Bar Association (ABA) at the 2024 ABA Midyear meeting in Louisville, Ky., earlier this month.

A key takeaway of the panel for attorneys: be careful you don't create an attorney-client relationship through social media posts. If giving legal advice, disclaim, disclaim, disclaim.

Florida attorney Richard Rivera said that ethical obligations may arise merely from a viewer's subjective belief that an attorney-client relationship exists. I presume there is a reasonableness check on that, but the objective measure would be lay perception, not the knowledge and experience of the attorney. Thus, a social media post can trigger an attorney's duties of confidentiality and timely response to questions.

Accordingly, Washington attorney Matthew Albrecht warned attorneys to keep up with their inboxes in all media. If a viewer or listener reaches out through a web form, social media direct messaging, etc., asking a question in response to a post, failure to respond promptly can be an ethics violation.

Moreover, an attorney must be wary of questioners who overshare, Albrecht said. They might post comments on a public website that compromise their cases, and the attorney may be obliged to delete the comments to protect the prospective client. A questioner also might provide information that puts the attorney in conflict with prior or existing clients. So an attorney with any online presence should have and adhere to a careful policy for receiving and processing incoming communications.

I wish I could count on a response from a doctor's office when I ask a question. Clearly, the bar for attorneys is higher.

Probably needless to say, some attorneys give advice in mass media that might be accurate in context and not run afoul of ethics rules, but might at the same time invite trouble in problematic misunderstanding. For example, many online videos present Texas lawyers schooling viewers on the use of force in defense of property under the state's generous castle laws. Handy shared one video by a lawyer who described a property owner vs. trespasser confrontation in which the property owner might lawfully "beat her ass."

To inform professionalism, Handy recommended to law students and new lawyers the podcast Young Lawyer Rising from the Legal Talk Network, an ABA partner.

The ABA TIPS panel comprised Albrecht, Handy, Rivera, and D.C. attorney Josephine M. Bahn.

Saturday, September 3, 2022

FTC finally notices abuse of customers, shady business practices by car rental industry

In an omnibus resolution late last week, the Federal Trade Commission (FTC) green-lighted investigation of the car rental industry.

Earlier this year, I wrote about the "new lows" of our car rental oligopoly in the United States, including my own experiences with the misleading Hertz "loyalty" program and the manipulation of pickup and drop-off times to draw overage fees.

The resolution broadly compels investigation "[t]o determine whether any persons, partnerships, corporations, or others have engaged or are engaging in deceptive or unfair acts or practices in or affecting commerce in the advertising, marketing, promotion, sale, tracking, or distribution of rental cars."

For context, Frankfurt Kurnit's Jeff Greenbaum wrote in Advertising Law Updates that commissioners ordered similar investigations in July 2021 into "areas such as COVID-19, healthcare, and technology platforms," and in September 2021 into services targeting veterans and children, "algorithmic and biometric bias, deceptive and manipulative conduct online, repair restrictions, and abuse of intellectual property."

The FTC didn't detail the buzz in its bonnet, but they likely heard lawmakers in the spring frowning on Hertz's misreporting of stolen cars. Senator Richard Blumenthal (D-Conn.) wrote Hertz a nasty-gram in March. Forty-seven customers filed suit for false arrest in July, CNN reported (via ABC 7 L.A.), and they're not the only ones.

I documented my rental return this summer in Thunder Bay, Ontario.
(RJ Peltz-Steele CC BY-NC-SA 4.0)

I've started taking the advice of The Points Guy's Summer Hull to take pictures and videos of my rental cars when I pick them up and when I return them. One Mile at a Time advises the same

But I'm doubting the utility of it. I'm not sure you can see scratches or dents in the images, especially in dark garages. And, as Hull herself reported, she was called out for alleged damage to the roof, which she had not climbed up to photograph. I wonder whether I should crawl under the car to photograph the undercarriage.

Lately rental companies have presented me with an up-sell option for tire and window insurance, threatening that they're not covered even if a buy the CDW. And don't get me started on involuntary "upgrades" to fuel-inefficient trucks. Even the sedan pictured here, which I rented this summer in Thunder Bay, Ontario, was what I got when I reserved an SUV to tackle unpaved roads.

Meanwhile, my budding occupation as car portraitist is eating into my travel time and my hard drive space.

It seems to me that when customers start having systematically to video-record their interactions with industry to protect themselves against fraud, the problem might be with the industry and not with the customer.

Oh, FTC ... 🤙

Sunday, January 23, 2022

Business touting 'access,' 'journalism' is an ad broker

I find this ad,* "Because Journalism Matters," below, which I saw on my local morning news, troubling.

One could certainly get the impression that the advertiser is a business concerned principally with what the words say: access, accountability, objectivity, and journalism.  So I was pretty excited to see what journalistic outfit made this sleek sales pitch for all that I hold sacred.

The Trade Desk, it turns out, is not a journalistic outfit at all.  It's a media advertising buying platform.  The kind of outfit, I presume, that uses aggregated personal data obtained under the weak American consent regime to target advertising for viewers like me.

That's not all bad.  My wife was quick to point out that ads pays for the journalism I'm watching, insofar as one can still describe local news as journalism.  And The Trade Desk, on its website at least, does advocate for an open internet, so, I presume, supports net neutrality, which is a good thing.

But the commercial motive hardly equates to the public interest that drives journalism.  The ad opens with images of working journalists.  This is misappropriation, in my estimation.  The selection of words, access, accountability, objectivity, and journalism, doubles down on a misleading impression.

The company's website is a bit more honest, inserting between "because" and "matters": trust, reach, measurement, and innovation.  In descriptions, those words are contextualized in commerce.  Trust means transparency to the ad buyer about the ads, not the public's trust.  Reach and measurement plainly are about advertising efficacy.  And innovation, "[f]rom privacy to identity," "focuse[s] on the interests of the entire industry" (my emphasis), not innovation in journalism, and certainly not innovation in the protection of personal privacy and identity from industry.  

Those priorities don't sync in my mind with what looks like a journalist running down a street with a camera and a press badge in one of the opening stills.  Unless he's in a hurry to invade someone's privacy.

I don't know the answer to our woes in journalism, whether nonprofits, public funding, etc.  But if The Trade Desk, however laudable a model in the advertising business, marks the way forward for journalism, then the craft that I learned in j-school will soon be a quaint anachronism comprising only words.

* I realize that by drawing attention to this ad, I'm giving the advertiser exactly what it wants, in a no-publicity-is-bad-publicity way.  I decided that sharing the ad with commentary was only fair.  You decide, as the saying goes.

Sunday, April 25, 2021

Introducing your next ambassador of quan

Peltz
If you've consumed any social media from Clemson Tigers Baseball in the last couple of years, you're probably already a reader of the 2021 winner of Clemson's Outstanding Academic Achievement Award in Sports Communication.

Spencer Peltz, my brother, is your next ambassador of quan.  Look out when he is unleashed on the communication market.  He will not rest until you're "holding a Coke, wearing your own shoe, playing a Sega game featuring you, while singing your own song in a new commercial, starring you, broadcast during the Super Bowl, in a game that you are winning."

According to the Clemson COMMunity Roar, "[t]his award is given annually to a student in recognition of ... outstanding performance in the classroom, academic achievement, involvement in the program, creative effort, and character."  Congratulations, Spence!

Friday, August 21, 2020

Law students embrace bad lawyering

My colleague Amy Vaughn-Thomas gave a terrific assignment to students in her Professional Responsibility (Legal Ethics) class this summer:  Make a bad (unethical) lawyer ad, then write a paper about its faults under the rules of professional responsibility.

Students ran with the assignment, including the team that invented bad lawyer "Jeb Dundy."  From content producer Fatiga Mental (friend of the blog: Ig, Tw) and law students Noah Aurelio, Ricardo Serrano, Sebastian Garcia, and Samantha Tuthill, here is a lawyer for our times. See if you can spot the ethics issues.

Credits:

Suffice to say, the paper practically wrote itself.

Saturday, May 9, 2020

Report from a Social Distance Week 7: For lockdown horror, 'Dr. Rick' prescribes hibachi, водка, and tulips

My new doorbell cam
spies a ne'er-do-well.
Quote of the Week:  "Murder hornets, but with the right lawyer, manslaughter bees. 🐝"  —attorney Jennifer T. Langley

Our stay-at-home order is formally lifted in Rhode Island as of today, May 9, though in this phase one, most restrictions remain in place as either mandates or recommendations.  I’m not eager to go out much myself until we have effective antibody testing, and then we'll see.  And we’ll have to hope and pray that our economic reopening doesn’t drive up the infection numbers.  Three days ago, with stay-at-home still in place, I saw dozens of kids playing basketball at Burr's Hill Park.  Parents were there, too.  “Knock it off,” Governor Gina Raimondo would have said.

Oh, I almost forgot the week's most exciting news.  Hitting the grocery store first thing in the morning, we scored a whole package of toilet paper!

Knock it off.  This is week 7.

What I’m Watching

Knives Out (2019).  This movie is a rollicking good time, an Oscar-nominated screenplay in the hands of a classic cast.  Daniel Craig, with a credible Mississippi drawl, proves why he’s so much better than Bond, and Jamie Lee Curtis, well, enough said.

Ozark s3 (2020).  I finally caught up, and there’s a reason why this show was viewers’ number one new binge in lockdown.  The show remains intense, not for the faint of heart.  I didn’t see coming that Helen would play such a pivotal role in season 3.  Now I have to make room on my top TV lawyers list, category: drama, for Janet McTeer’s Helen Pierce (link to spoilers).  This is not Newcastle UK-born McTeer’s first turn as a TV lawyer; she played Patty Hewes’s vengeful secret sister Kate Franklin in the final season (2012) of Damages.  In the Marvel universe, she’s Jessica Jones’s mom, Alisa Jones.

American Horror Story: 1984 (s9) (2019).  For me, AHS has never been able to top season 5’s super-creepy Hotel (2015-16), with Lady Gaga, but season 9 was enjoyable.  It’s AHS’s answer to Stranger Things, and I can’t get enough of these tongue-in-cheek ’80s tributes.  As usual, the anthology series assembles an all-star squad of regular and guest stars.  Carrie Fisher daughter and “Scream Queen” Billie Lourd well anchors the cast.

Locke & Key s1 (2020).  I was pleasantly surprised by the first couple episodes.  The show may fairly be described as YA, employing the convenient contrivance that the adults can’t see the evil spirits.  Nevertheless, it’s creative and cleverly executed.  Our teenage heroes occupy a haunted house, of sorts, in coastal Massachusetts.  Really the series is filmed mostly on finely crafted sets in Toronto with gorgeous outdoor scenes in UNESCO World Heritage Site Lunenberg, a port town on Nova Scotia’s southeastern coast.  I’m fast becoming a fan of lead actor Connor Jessup, who played Ben Mason in Falling Skies (2011).  The Locke & Key story is based on a 2008-13 graphic novel series (Amazon) of the same name and in a style that pays homage to H.P. Lovecraft (a Providence, Rhode Island, native, see also Atlas Obscura) and Richard Matheson (obituary).  A Fox pilot that wasn’t picked up, Locke & Key also was a 2011 TV movie by director Mark Romanek, who directed the recent s1e01 of Tales from the Loop.

Outer Banks s1 (2020).  I'm not going to pretend this is more than it is.  Another YA offering, sometimes I like to immerse myself in the equivalent of what my grandmother called her "stories," pretty people in the throes of impossible melodrama. Bonus, Outer Banks actually has a thrilling story from writer Shannon Burke and the filmmaker Pate Brothers. It's Treasure Island meets 90210, and I thought that before I learned that Burke's most recent and successful novel, Into the Savage Country (2016), was, he said, inspired by books including TI, Kidnapped, and White Fang.  The show totally confirmed my suspicion that my niece and nephews growing up on the OBX lead frenetic lives filled with intrigue, murder, and buried treasure, all interlaced with vertiginous adolescent lust.  The cast, the usual twenty-somethings pretending to be ten years younger, are mostly relative newcomers, well handpicked from the minor character ranks of such other recent features as Stranger Things, Black Lightning, and The Hate U Give.  On the adults-as-adults side, American Horror Story alumna Adina Porter, also a veteran of True Blood and Newsroom, turns in another spellbinding performance as Sheriff Peterkin.

Basic Versus Baller: Travel at Any Cost s1 (2018-19).  The perfect virtual escape from lockdown, I'm torn between loving these guys and burning with envy that I didn't think of this first.  Brothers Marko and Alex Ayling, "the Vagabrothers," went to university in southern California and were teaching English in Spain when they started vlogging in 2012.  They became a YouTube sensation and were invited to make 10 episodes of this show for Tastemade, an eight-year-old, Santa Monica-based, food-and-travel media company that has carved out a lucrative niche on the digital frontier.  The show is available on various platforms; I'm watching on Hulu.  The conceit is that in each episode, one brother gets to live the high life and the other has to hostel it, as they explore destination cities and their food worldwide.  Sponsorships figure in unobtrusively.  The competition angle is light-hearted, as the brothers succeed in sharing the delights of different price points and put local culture on center stage.

https://www.youtube.com/playlist?list=PL-TXSFxFLp5G0ZEePpmHEjyFWvCbxzYfC
Progressive adsProgressive Insurance—which has never had a worthwhile deal for me—has a hilarious new ad character, "Dr. Rick."  “Progressive can’t protect you from becoming your parents” is the theme; Dr. Rick's intervention was forecast by two also funny "parentamorphosis" ads seven months ago.  Two new 30-second bits are “Group Outing” and “Pillows.”  There’s also a 74-second mockumentary on YouTube.  Progressive’s faux Zoom lockdown ad, with Flo, is pretty funny, too.  Progressive uses the Boston-based ad agency Arnold, and Martin Granger directed.

What I’m Eating

Miku Japanese CuisineTo #Save­Our­Restaurants, we ordered curbside this week from nearby Miku: wonton soup, crispy calamari, pork gyoza, sesame chicken, and a ridiculous portion of hibachi chicken.

What I’m Drinking

Community House Blend.  A new order arrived from Community, and we started with the solid house blend, a medium-dark roast.

Водка Окно в Европу.  We took a short interlude from our gin habit.  The name of this Russian vodka by St. Petersburg-founded Ladoga Group translates to “Window on Europe.”  I brought it back from Russia, mostly for the pretty design on the bottle.  Inside, what can I say, it’s vodka.

Dry Line Cape Cod GinA Christmas gift from my wife, this briefly barrel-aged, organic-cane-sugar double distillation from South Hollow Spirits in North Truro, Massachusetts, leads with juniper berries harvested locally from eastern red cedars, and follows up with angelica root grown in a compost of Truro Vineyard grape skins.  My bottle is from small batch #10.  The Boston Globe aptly said it “has a soft bite,” and Drink Hacker likewise reported a “palate … extremely soft for a gin of this alcohol level,” 47% ABV, with a “sweet and lengthy” finish.

What I’m Doing to Stay Sane

Google Nest Thermostat and Hello.  We gained some distraction through home improvement and a socially distancing visit from our masked local technician.  Google’s thermostat gets a 👍 thumbs up; its doorbell gets a 👎 thumbs down.  The thermostat we bought to replace our broken one.  It’s pricey, but we expect to recoup savings from all those times we both leave home and forget to turn the heat off.

The Hello doorbell/security cam was a gift.  It makes a quality image and shares a futuristic look with the thermostat.  But it comes with a lot of shortcomings.  First, the Hello is almost useless without a paid subscription.  The device itself has no processing ability; it’s dumber than a mere motion sensor.  The Hello must constantly stream image to and from Google just to check for motion.  Hence, the subscription is necessary if you want the device to be anything more than a doorbell.  Second, the data stream eats bandwidth and will ruin you if your service is capped.  Third, the cloud-based detection algorithms have a long way yet to go.  The motion sensor is oversensitive, set off by trees and shadows.  The sound sensor is a non-starter on our busy street.  These shortcomings are all understandable for a work-in-progress product, but not for one that demands a monthly fee.  I have a Blink camera already, and I’m much happier with that.

Watching spring spring.  The tulips are opening, despite a continuing cold that diverges daily more from seasonal highs.  The birds are fighting it out for access to the feeder.  Sometimes #QuarantineLife is just about watching the grass grow.

Happy Mother's Day!


🌷🌷🌷🌷🌷🌷🌷

Photos and video, except in "What I'm Watching," RJ Peltz-Steele CC BY-SA 4.0

Wednesday, September 12, 2018

Despite IP exclusion, insurer bound to defend in right-of-publicity case over running shoes, Mass. high court holds

Upon an underlying case involving the right of publicity coupled with consumer protection and equity claims, the Massachusetts Supreme Judicial Court (SJC) today held insurers duty-bound to defend an insured running-shoe maker, despite the exclusion of intellectual property claims from coverage.

Abebe Bikila in Rome, 1960
Massachusetts-based Vibram USA, through its affiliate Vibram FiveFingers, named a line of "minimalist" running shoes after Ethiopian Olympic athlete Abebe Bikila, who ran barefoot when he set a marathon world record in Rome in 1960.  (See clips from 1960 and Bikila's 1964 marathon win in Tokyo on the Olympic Channel).  Seriously injured in a car accident in 1969, Bikila died of a cerebral hemorrhage in 1973.  Since then, the family has made commercial use of the Bikila name in enterprises including a Spanish retail sporting goods chain, a Bikila biography, a Japanese commercial, and a biographical feature film.  The family objected to Vibram's association of its shoe with Bikila without permission.

The complaint comprised four counts: (1) right of publicity under the Washington Personality Rights Act, (2) violation of the Washington Consumer Protection Act, (3) unfair competition under the Lanham Act, 15 U.S.C. § 1125(a), and (4) unjust enrichment.  Vibram's general insurance and liability policies with two providers, Salem-based Holyoke Mutual and Maryland Casualty, covered "personal and advertising injury liability," without defining "advertising injury"; however, the coverage excluded intellectual property liability.  The insurers sought, and the superior court granted, declaratory relief from coverage.  The SJC reversed.

To trigger an insurer's duty to defend, the insured need show only "a possibility that the liability claim falls within the insurance coverage."  The duty to defend is broader than the duty to indemnify.  The Bikila complaint alleged that Vibram used Bikila as "an advertising idea."  Bikila family members alleged that they had "intentionally and specifically connected the name to running-related ventures, and the name itself conveys a 'barefoot dedication to succeed under any circumstances,' a desirable quality for any of these ventures."  The insurers were mistaken in arguing that the claim was limited to the right of publicity, or was synonymous with trademark infringement, both IP theories excluded from coverage.  Rather, the essence of the Bikila claim was that Vibram sought to profit from Bikila-associated ideas.

Vibram FiveFingers Bikila Running Shoes (by Fuzzy Gerdes, CC BY 2.0)
From the court's opinion, it is not clear to me which or what combination of claims ensures that a complaint such as this one rises beyond the coverage exclusion.  Count 1 right of publicity by itself would not have been covered by the policy, and it is informative to see that the privacy tort now resides firmly in the IP household.  I suspect that count 3 under the Lanham Act also constitutes an excluded IP claim.  So perhaps statutory consumer protection and equitable quasi-contract each could do the trick.  Yet those theories, in any given case, could overlap wholly with IP claims.  The court's opinion suggests that there is something special about the misappropriation of an "advertising idea" that sets this case apart qualitatively from IP claims.  I'm not sure I see it.

Apparently the "advertising injury" language of the insurance coverage here is not without precedent, and the court gave an informative catalog of the "wide variety of concepts, methods, and activities related to calling the public's attention to a business, product, or service [that have] constitute[d] advertising ideas":
  • logo and brand name, Street Surfing, LLC v. Great Am. E&S Ins. Co., 776 F.3d 603, 611-612 (9th Cir. 2014);
  • patented telephone service enabling sale and promotion of products, Dish Network Corp. v. Arch Specialty Ins. Co., 659 F.3d 1010, 1022 (10th Cir. 2011);
  • advertising strategy of "trad[ing] upon a reputation, history, and sales advantage" associated with Native American made products, Native Am. Arts, Inc. v. Hartford Cas. Ins. Co., 435 F.3d 729, 733 (7th Cir. 2006);
  • concept of "Psycho Chihuahua" obsessed with Taco Bell food to advertise business, Taco Bell Corp. v. Continental Cas. Co., 388 F.3d 1069, 1072 (7th Cir. 2004);
  • word "NISSAN" to promote vehicles to public, constituting "quintessential example of trademark functioning to advertise a company's products," State Auto Prop. & Cas. Ins. Co. v. The Travelers Indem. Co. of Am., 343 F.3d 249, 258 (4th Cir. 2003);
  • use of internet domain, CAT Internet Servs., Inc. v. Providence Wash. Ins. Co., 333 F.3d 138, 142 (3d Cir. 2003);
  • artwork and product model numbers designed to promote products (claim for trade dress infringement), Hyman v. Nationwide Mut. Fire Ins. Co., 304 F.3d 1179, 1189 (11th Cir. 2002);
  • word "fullblood," connoting desirable quality, to advertise Simmental cattle breed, American Simmental Ass'n v. Coregis Ins. Co., 282 F.3d 582, 587 (8th Cir. 2002);
  • agent misrepresenting himself as working for another company for purposes of inducing customers to make purchases, Gustafson v. American Family Mut. Ins. Co., 901 F. Supp. 2d 1289, 1301 (D. Colo. 2012); and
  • patented technology used to market music for online sales, Amazon.com Int’l, Inc. v. American Dynasty Surplus Lines Ins. Co., 120 Wash. App. 610, 616-617, 619 (2004).
 "Advertising injury" is not "injury caused by other activities that are coincidentally advertised" (quoting Couch treatise).  "Otherwise stated, '[i]f the insured took an idea for soliciting business or an idea about advertising, then the claim is covered ... [b]ut if the allegation is that the insured wrongfully took a ... product and tried to sell that product, then coverage is not triggered'" (quoting Washington precedent and offering authorities in accord from other states).  Thus coverage is excluded in cases such as:

  • use related to manufacture and not marketing, Winklevoss Consultants, Inc. v. Fed. Ins. Co., 991 F. Supp. 1024, 1034 (N.D. Ill. 1998);
  • conspiracy to fix egg prices, Rose Acre Farms, Inc. v. Columbia Cas. Co., 662 F.3d 765, 768-769 (7th Cir. 2011);
  • disparagement of competitor's pineapples to undermine their advertising, Del Monte Fresh Produce N.A., Inc. v. Transp. Ins. Co., 500 F.3d 640, 643, 646 (7th Cir. 2007);
  • advertising another's patented method for cutting concrete, Green Mach. Corp., v. Zurich-American Ins. Group, 313 F.3d 837, 839 (3d Cir. 2002);
  • design of product, Ekco Group, Inc. v. Travelers Indemnity Co. of Ill., 273 F.3d 409, 413 (1st Cir. 2001);
  • misappropriation of product design, Frog, Switch & Mfg. Co. v. Travelers Ins. Co.,
    193 F.3d 742, 749-750 (3d Cir. 1999);
  • taking of customer list and solicitation of customers from it, Hameid v. National Fire Ins. of Hartford, 31 Cal. 4th 16, 19-20 (2003);
  • manufacture and sale of patented product, Auto Sox USA Inc. v. Zurich N. Am., 121 Wash. App. 422, 427 (2004).

So memorize those, and let me know when you're ready for the exam.

The case is Holyoke Mutual Insurance Co. in Salem v. Vibram USA, Inc., No. SJC-12401 (Mass. Sept. 12, 2018).  Suffolk Law has the oral argument video of Feb. 6.  The case was heard by the full court upon granting direct appeal, and the unanimous opinion was authored by Associate Justice David A. Lowy, a Boston University law grad and former ADA and Goodwin Proctor litigator.

Tuesday, August 22, 2017

Abstract: Arthur on vaccination and consumer protection

Donald C. Arthur, M.D., J.D. UMass Law '17, has published Commercial Deception by Anti-Vaccine Homeopathic Websites: A Consumer Protection Approach, 10 Biotechnology & Pharmaceutical L. Rev. 1, 27 (2017).  Here is the abstract.

Abstract
Some internet marketers offer for sale “vaccination substitutes” that can purportedly replace actual scientifically-tested and federally-approved vaccinations. Deceptive internet advertising for vaccine substitutes has dissuaded parents from vaccinating their children, resulting in a resurgence of vaccine-preventable childhood diseases. The Food and Drug Administration and Federal Trade Commission have the authority to address dangerously deceptive product claims, including those for homeopathic preparations that have thus far avoided safety and efficacy testing. This article presents the issues involved in deceptive advertising and proposes regulatory solutions.
The article is available to Westlaw Next subscribers here.  The Review is published at North Carolina Central University School of Law.

Claiming Don as an alumnus is decidedly my privilege.  Dr. Arthur is an emergency medicine and preventive medicine physician.  He served 33 years in the U.S. Navy, culminating his career as Navy surgeon general and retiring at the rank of vice admiral. He served as chief executive officer of three hospitals, including the National Naval Medical Center in Bethesda, Maryland.