IP Strategies for Your Online Business

Transitioning into an online business may feel daunting. From operations to technology, there are so many potentially new processes. Business owners currently operating online can also benefit from a review of their operations and how they can best protect their work. Don’t let your intellectual property strategy hinder your success! Here are five perspectives of what you need to consider when engaging online:

Advertising and Marketing 

  1. Marketing your product or service is an integral part of any business, especially when operating online. Creating an advertising strategy that abides by legal guidelines may sound confusing but there are a few easy tips.
  2. Firstly, make sure that all claims are truthful and substantiated. If you’re selling socks, don’t say that they can fix a broken bone.
  3. Don’t forget that this also applies to social media. Not only you and/or your business, but anyone you may work with such as content influencers, with must adhere to these rules.

Trademarks

  1. Select a strong name and/or logo for your business. What is a strong name? A good rule of thumb is, if it describes what you’re selling, it’s probably not distinct enough.
  2. Make sure you take steps to decrease the likelihood of infringement. Before committing to a name to use commercially, consult with a legal team to search existing marks and assess potential risks.
  3. Will you conduct business in multiple countries? Keep up to date with individual country’s trademark requirements so you understand how to file.
  4. Lastly, make sure to review your contracts to be aware of which rights you have and which rights you are granting. You cannot grant any rights that you don’t have! If you need help deciphering a contract, reach out.

Copyright

  1. Is there content that you use on your website, social media, or mobile apps? Make sure you know whether you can use media like music, text, photos, art, video, or other content in various ways- personally, commercially, within whatever geographic restrictions. Additionally, follow “proper credit and/or attribution” requirements for the content.
  2. Are third-parties able to post content on your website? You may want to limit your liability against their potential copyright infringement by taking advantage of the Digital Millennium Copyright Act (DMCA)’s Safe Harbor. Let us know if you need help navigating these requirements.
  3. Is there a person whose name, likeness, or image you are using in connection with your business? There are right of publicity laws that you must follow as well as applicable state laws.
  4. An online entrepreneurs’ website is like their online storefront. Do you have a clear agreement with your website or software developer? Make sure any other tools created for the operation of your business, like mobile apps, are included in your strategy. A well-written contract is a good way to take preventative measures before the work is done to avoid later infringement or theft.

Privacy and Other Legal Considerations

  1. Be in the know when it comes to changing data privacy and internet laws. Specific state laws may apply to your business even if you are not physically located there.
  2. The California Consumer Privacy Act (CCPA) and Californica Public Records Act (CPRA) grants California residents greater control over their personal data and how businesses use that information. If you want to prepare your businesses for CPRA compliance, start by reviewing how your company collects data, and then contact a professional about how to make sure everything is above board and complies with the new laws.
  3. Virginia recently passed similar legislation known as the Consumer Data Privacy Act (CDPA). There are some differences compared to California’s legislation such as which businesses apply to the regulations.
  4. Finally, set up your online presence to comply with other regulations such as the Americans with Disability Act (ADA). For example, make online offerings available to those with disabilities. Other important legislation includes the Children’s Online Privacy Protection Act (COPPA) and the Communications Decency Act (CDA).

Protection Strategies

  1. Last but certainly not least, educate yourself and pursue all routes to protect your content.
  2. Seeking registration with the Copyright Office and/or the USPTO is a great first step in protecting your business and intellectual property.
  3. Another strategy which helps to prevent improper use is to include notices on your website, social media, and /or mobile applications.
  4. If you are concerned about improper use, explore all monitoring tools and consult with your legal team.

Whether you already conduct business online or not, the internet is here to stay. It’s become an invaluable economic resource, especially with the need for remote options in the past year. As such a fast and accessible way to work, make sure you take into account all your legal and commercial options as an intellectual property owner.

(This is not intended as legal advice. Contact a lawyer for assistance in your particular situation.)

Protect Your Brew: National Beer Day and IP

It’s no secret that Virginia loves a good brew. Virginia boasts an impressive selection of craft breweries and cideries, with more than 30 breweries in Richmond alone! But, did you know that several other states have an even higher proportion of breweries per capita? Vermont, Maine, and much of the Pacific Northwest carry an even denser selection of craft beer.  With so many small and mid-size independent brewers emerging in Virginia and across the country, it’s important for those in this increasingly competitive industry to understand their intellectual property rights. This National Beer Day, we wanted to share important legal considerations for those in the industry.

Our legal team tailors our established expertise in the field of intellectual property to assist in the protection and success of brewery-specific concerns.  From business formation to naming your brews, to protecting specialty artwork and maintaining local partnerships we offer assistance so you can focus on your craft.

Trademark Law:

How much have you attached to your brand’s name and logo? A trademark represents all the hard work you have put into your business and sets you apart in the field.  We can assist you with protecting your business/brewery name, beverage names, and taglines or slogans and enforce your rights in the same.  It is important to take steps to solidify your brand and ensure that your product is not confused with others.  Additionally, working with counsel prior to using a new trademark can help protect you from infringing upon others’ rights, and could avoid a costly infringement scenario.

Trade Secret Law:

How important are your recipes to your business? The recipes for your unique ciders and brews are only as valuable as they are kept in confidence. Trade secrets can be vital to a company’s survival, and are often among a business’s most valuable corporate assets.  Failing to properly protect trade secrets (for example, by filing a patent for a recipe that then discloses the details to the public) can prove disastrous for businesses.  Trade secret law provides an avenue to protect your valuable intellectual property while allowing it to be kept secret and potentially protected forever (while a patent only lasts for 20 years, a trade secret will last for as long as it is kept secret). Fortunately, there are measures you can take as well as policies and contractual provisions we can help you put in place to help protect your trade secrets.

Copyright Law:

Do you have artwork on your label? Did an artist create your logo or website? Alcohol brands dabble in copyright law more than you may expect. Brands should recognize the importance of filing and registering copyrightable subject matter to protect their hard work. Copyright registration and strong contracts and/or copyright assignments when necessary can help avoid preventable issues such as ownership disputes and infringement actions.  For example, under copyright law the author of the artwork, logo, website, etc., could own that material instead of the business unless the business has agreements in place that state otherwise. Our team can help ensure rights to commissioned works are transferred appropriately and provide the best copyright enforcement approach.

Licensing Law:

Do you want to partner with a local bakery for a wheat beer? How about a local coffee place for a stout? These kinds of deals can involve the sharing of proprietary information, and the parties may need to obtain permission to use the other’s trademarks and/or copyrights to market the product. Ensuring that proprietary information is kept confidential, and that certain guidelines are followed by the other business using your trademark, are smart measures to take.

Contract Law:

One of the best ways to safeguard against the various intellectual property issues mentioned above, as well as other legal issues impacting breweries, is a well drafted contract. Do your existing contracts cover all the bases with your vendors, business partners, or other third parties? How about your employment agreements?  Are they protective enough of your company in the event of a disgruntled employee? Thinking through these issues and contacting an attorney for assistance is not cynical – it’s a smart step towards safeguarding your business and ensuring its success.  Companies in the alcohol industry have significant need of contracts due to the many moving components needed to operate, and there is no one-size-fits-all contract.  Notably, brewers conducting business in certain states including California and Virginia should consider whether data privacy laws apply to their businesses that may impact their contractual requirements (The forthcoming  Virginia Consumer Data Protection Act may affect your business, which you can learn more about here.)

Celebration of National Beer Day on a brewery patio in Richmond, VA

This National Beer Day, we would like to raise a glass to the love and dedication that Virginia brewers pour into their craft.  Craft breweries, cideries, and wineries in any state should explore how considering these legal issues and putting protections in place can benefit their business. No matter what your specialty is, we want to help you protect it.

(This blog post is not intended as legal advice.  Please contact us for more information and assistance regarding your particular situation.)

 

 

What You Need to Know About the CASE Act

The CASE Act of 2020 establishes a new Copyright Claims Board (“CCB”) to hear infringement, noninfringement and misrepresentation claims which meet certain criteria.  Generally, the Act provides a less expensive method for harmed parties to assert copyright claims short of filing in federal court.

Remedies available include actual damages and profits, statutory damages and injunctive relief.  Works timely registered with the Copyright Office are eligible for an award of statutory damages of up to $15,000 for each infringed work.  Statutory damages for timely registered works may not exceed $30,000 in any single proceeding.  Works considered not timely registered are eligible for statutory damages of $7,500 per infringed work, not to exceed, however, $15,000 in any single proceeding.  For both timely and not timely registered works, statutory awards limitations are exclusive of attorneys’ fees and costs.

Claimants must file an application to register the allegedly infringed work prior to filing with the CCB. Although issuance of a copyright registration certificate is NOT required to initially file, registration IS required for damages to be awarded.

 

Why does it matter?

Lower value small claims may now be asserted more easily.  For those seeking small licensing fees for use of their works or wishing to represent themselves, the CASE Act will help.

The CCB will be staffed with attorneys who may be available to help claimants evaluate or state their claim.  This may allow certain claimants to file on their own without hiring a personal attorney; it should be noted, however, that CCB staff attorneys may or may not provide more than general guidance to the claimant and may or may not be available when needed.

Defendants/Respondents in CCB claims have the right to opt out of the proceedings (within 60 days) and to instead have the claim heard in federal court.  If so, the claimant will have wasted time filing with the CCB and will still need to move forward in federal court, which will benefit large corporate defendants.

 

What to do?

  1. Get Registered. To take full advantage of the CCB statutory damages awards, copyrighted works need to be timely registered.
  2. Audit Content and Contracts. Don’t be an easy target for claims, meaning, review content and related contracts to ensure proper licensing or originality of content and add a layer of indemnity to contracts before small claimants can take advantage of new easier filing of copyright complaints against you.

 

 

– Pam Gavin & Elizabeth Sewell

(This is not intended as legal advice. Contact a lawyer for assistance in your particular situation.)

Copyright Registration for Short Online Literary Works

The Copyright Office recently implemented a new method of group registration for short online works that simplifies the registration process and provides a much more cost-effective path to protection.  This development offers a great opportunity for bloggers and other authors that frequently publish online content, who may not have previously considered copyright protection due to effort and expense, to obtain protection for their works.  The Group Registration for Short Online Literary Works (GRTX) allows authors to simultaneously register between two and fifty works.

To be eligible for the GRTX process, the relevant works must be:

  • Published for the first time online;
  • Between 50 and 17,500 words;
  • Published during the same 3-month period; and
  • Written or co-written by the same author or joint author.

The process is primarily for those who regularly publish content online, for example with social media posts, articles, and blogs.  The protection conferred only applies to the text of the work, so the GRTX is not suitable for images, videos, audiobooks, or computer programs.  Works made for hire are also not eligible for GRTX.

A major benefit of the GRTX is its ability to save copyright owner’s money.  For a Copyright Office fee of only $65,[1] authors using the GRTX can register up to fifty works.  Before the GRTX, clients would have spent more than $3,000 in government fees to register and protect the same volume of works in separate applications.  The new filing also helps to accelerate the registration process for online content creators who would likely have spent much more time and effort on registering their many publications separately before the GRTX.

If you are interested in developing a copyright protection strategy for your creative works, please feel free to reach out to us for more information on the process and associated fees.

-Jamie Seibert

[1] Please note, this fee represents only the government filing fee at the Copyright Office, and not any associated legal fees if you hire an attorney to represent you in connection with strategizing and filing for copyright protection.