SIIA Weighs in on Supreme Court Arguments in ‘First Sale’ Case – Kirtsaeng v. John Wiley & Co.

Today, the U.S. Supreme Court held arguments in Kirtsaeng v. John Wiley & Co. – a hotly contested case that threatens the U.S. information industry. Last month, SIIA filed an amicus brief in the case, which involves the legality of purchasing copyrighted works overseas and selling them here in the U.S. without authorization from the publisher.

We believe that, if the First Sale Doctrine were to apply to materials made and sold overseas, it would severely undermine U.S. companies’ ability to compete in foreign markets. At today’s Supreme Court argument, the Justices seemed fairly split on the issues. Wiley’s counsel, Ted Olson, reiterated a critical point made in SIIA’s brief – that there are many of exceptions in the Copyright Act, including the Fair Use Defense, which can be used to prevent the concerns raised by the appellant.

Ultimately, we hope that the Court will be convinced by the very real argument that both publishers and consumers will face direct harm if our markets are allowed to be flooded with copyrighted material that was intended for purchase overseas. American consumers will be defrauded into buying products that may be inferior or otherwise very different from those intended for U.S. markets, while confronting higher prices in the long run. Meanwhile, consumers and students abroad will lose access to valuable U.S. resources that were created for them.


Keith Kupferschmid is General Counsel and SVP, Intellectual Property Policy & Enforcement at SIIA.

This Week in IP Enforcement

ISP Piracy Warnings Launching Within Weeks (PC Mag)
The Center for Copyright Information says participating ISPs expect to begin rolling out the new Copyright Alert System over the next two months, but exact launch dates will be up to each ISP.

Brands Cry Foul Over Unauthorized Sellers on Amazon (Reuters)
Amazon is grappling with a problem that eBay has struggled with for years – the proliferation of unauthorized third-party sellers that undercut the world’s top consumer brands.

Massachusetts Fines Thai Seafood Company Over Pirated Software (The Boston Globe)
Massachusetts’s fined the Narong Seafood Co. $10,000 over the use of pirated Microsoft software, marking the first time the state has ever used laws intended to combat unfair business practices against a company for illegally obtaining software.

BuzzFeed Lawsuit Over Celeb Photos Raises Copyright Questions (GigaOM)
At a time when online media is increasingly image-based, a $1.3 million lawsuit brought by a so-called “copyright troll” over BuzzFeed’s publication of nine celebrity photos raises questions about current copyright law.

Publishers Fight Back Against Schoolbook Piracy (The Village Voice)
With textbook piracy on the rise (spurred by rising costs of course materials and proliferation of tablets and e-readers), publishers have quickly embraced new technology to fight the growing piracy problem.

Cloud No Cover for Software Pirates, Claims FAST (CloudPro)
The Federation Against Software Theft (FAST) denounced the Pirate Bay’s move to the cloud as useless, saying measures already exist for governments to access cloud data in cross-border criminal investigations.

Retailers, Libraries, and Internet Companies Join “Owners Rights” Coalition (Publishers Weekly)
With ownership rights at issue in the Kirtsaeng vs. Wiley case, a new coalition of businesses and libraries has formed to advocate for ownership rights while educating consumers, businesses, and policymakers.


Keith Kupferschmid is General Counsel and SVP, Intellectual Property Policy & Enforcement at SIIA.

This Week in IP Enforcement

Court Holds that Associations do not have Standing to Bring Copyright Suits in their Name on Behalf of their Members

On October 10th, in Authors Guild Inc. v. HathiTrust, the U.S. District Court for the Southern District of New York held that, under the Copyright Act, associations do not have standing to bring copyright infringement actions on behalf of their members. The court did say that because the U.S. constitution does not prevent associations from bringing suit, foreign associations might have standing, if such standing is provided for under their home countries’ copyright laws. The case involves a lawsuit between various authors and university libraries over the mass digitizing the authors’ copyrighted works through the Google Book Search program. Under this program, Google made arrangements with several of the world’s largest libraries to digitize the entire contents of their collections to create an online searchable database, and to provide the libraries with copies of the digitized versions of their collections. In 2011, a group of libraries that participated in this program established a new service, called the HathiTrust digital library, to which the libraries would contribute their digitized collections. According to HathiTrust, this database of copies is to be made available for full-text searching and preservation activities. It is also intended to offer free access to works to individuals who have “print disabilities.” For works under copyright protection, the search function would return only a list of page numbers that a search term appears on and the frequency of such appearance. The suit was brought by The Authors Guild and several other parties (including many foreign authors associations and several individual authors) against the HathiTrust, as well as the participating universities (the University of Michigan, the University of California, the University of Wisconsin, Indiana University, and Cornell University).

In addition to addressing the associational standing issue the court also denied the Plaintiff author associations’ motion to prevent the HathiTrust from asserting a defense of fair use. The Plaintiffs argued that Section 108 of the Copyright Act, which allows libraries to make limited copies of certain works for specified purposes, precluded libraries from arguing that their activities constituted fair use under Section 107 of the Copyright Act. However, the court held “Section 108 provides rights to libraries in addition to fair-use rights that might be available.” The court then considered the four fair use factors and determined that the uses of digitized works pursuant to the HathiTrust book digitization project might constitute fair use and therefore Defendants fair use defense should not be dismissed. The decision in this case should not be confused with the pending copyright infringement case between the Authors Guild against Google.

Other IP News

AT&T Starts Six-Strikes Anti-Piracy Plan Next Month, Will Block Websites (Torrent Freak)
A set of leaked internal AT&T training documents reveal that the ISP will start sending anti-piracy warning notices to its subscribers on November 28, under the new copyright alert system. The documents show AT&T decided to implement a targeted website blockade and a copyright course as punishment for repeat infringers.

Korean Pirate Sentenced to Over Three Years in Prison (The Enumclaw Courier-Herald)
Sang Jin Kim, an undocumented Korean immigrant living in Everett, Washington, was sentenced to 40 months in prison and ordered to forfeit $409,776 for operating websites that distributed pirated software, movies, and videos. Kim had plead guilty in July to two counts of criminal copyright infringement.

Music Publishers Win $6.6 Million in Song Lyrics Copyright Case (Sacramento Bee)
In a first of its kind case establishing liability for posting unlicensed song lyrics on a website, a U.S. District Court judge awarded $6.6 million in statutory damages to a group of leading music publishers.

FBI in DC Creates Intellectual Property Squad (ABC News)
The FBI’s Washington field office has created an intellectual property squad dedicated to investigating all corners of intellectual property and economic espionage.

Study: Trolls Account for 40 Percent of Patent Lawsuits (GigaOM)
A study of 500 patent lawsuits found that those brought by patent trolls almost doubled in size from 2007 through 2011, and accounted for nearly 40 percent of the cases brought in 2011.


Keith Kupferschmid is General Counsel and SVP, Intellectual Property Policy & Enforcement at SIIA.

New SIIA Member Benefit: Discounted Legal Rates

SIIA is happy to announce a new member benefit: discounted rates for legal representation through its partnership with two partner-only law firms that focus on general counsel and patent counsel.

Outside GC is a partner-only team of senior business lawyers with substantial in-house experience who act as part-time in-house counsel to their clients at a fraction of the cost of either hiring a full-time in-house attorney or relying exclusively on traditional law firm counsel. For companies with no in-house legal staff, they act as the as-needed general counsel, doing the company’s day-to-day legal work and helping to manage the legal services provided by outside counsel. For companies that have a general counsel or in-house staff, they act as overflow attorneys, serving as an extension of the in-house team, either on a regular or a periodic basis.

Their sister firm, Patent GC, is also a partner-only firm, and is comprised exclusively of former senior in-house IP counsel. Patent GC handles patent and trademark prosecution work on a fixed-fee basis, but also performs portfolio management services, and can even serve as a company’s part-time in-house IP counsel.  Both Outside GC and Patent GC have specific domain expertise in software.

As a special benefit for SIIA members, Outside GC and Patent GC will offer their “volume discount” rates (ranging from $210 to $275 per hour) to all SIIA members, irrespective of work volume. Interested SIIA members should contact Jon Levitt (jlevitt@outsidegc.com, 617-548-1289) or Bill Stone (stone@outsidegc.com, 617-501-8158) for more details. Make sure to mention that you are an SIIA member!


Keith Kupferschmid is General Counsel and SVP, Intellectual Property Policy & Enforcement at SIIA.

This Week in IP Enforcement

SIIA Calls for More Trademark and Copyright Protections for New Domain Names
In comments filed with ICANN (Internet Corporation for Assigned Names and Numbers) last week, SIIA called for more intellectual property (IP) safeguards before any new generic top level domain (gTLD) applications are approved. Under the new program, trademark and copyright owners will be forced to expend significant resources and time to protect their intellectual property on thousands of new domains. Specifically, SIIA continues to stress the need for registries (the gTLD applicants) that are approved by ICANN put in place greater safeguards to protect against piracy and counterfeiting — this is especially true for domain names that are targeted toward software and information products and brands. Establishment of a clear process for complaints and systems for ensuring that domain information is accurate and publically available are the minimum levels of protection that rights holders deserve under this new program. Read more on SIIA’s Digital Discourse Blog.

SIIA Continues on China’s Trade Practices at Issue at USTR
Last week, USITO filed comments with the United States Information Technology Office (USITO) in China, in the annual review of China’s compliance with its accession commitments to the World Trade Organization (WTO). As a follow-up, SIIA Public Policy VP Mark MacCarthy will be testifying on behalf of SIIA and USITO at the USTR’s hearing on these issues on October 3rd, focusing on the issues of intellectual property enforcement, utility model patents, services invention remuneration and Internet regulation. His oral testimony is here.

IP News

Holder Announces Grant Winners in Effort to Prosecute Intellectual Property Theft (The Baltimore Sun)
U.S. Attorney General Eric Holder announced $2.4 million in grants to 13 jurisdictions that are helping to fight intellectual property theft.

Japanese Music Pirates Face Jail, Big Fines (paidContent)
In contrast with the emerging approach in other countries, new laws in Japan make uploading and downloading illegal content a criminal rather than civil offense, punishable by large fines and up to two years in prison.

Google’s Motorola Drops ITC Patent Infringement Complaint Against Apple (International Business Times)
Google’s Motorola unit suddenly and unexpectedly withdrew a complaint it recently filed with the ITC against Apple, asking the ITC to ban U.S. imports of all current and recent iPhone, iPad and Mac Computer models.

MPAA Chief Says SOPA, PIPA ‘Are Dead,’ But ISP Warning Scheme Lives On (Wired)
Former Sen. Christopher Dodd, now chairman of the MPAA, said SOPA and PIPA are not going to be floated again in Congress, but the nation’s major internet service providers are cooperating to implement mitigation measures to fight piracy.


Keith Kupferschmid is General Counsel and SVP, Intellectual Property Policy & Enforcement at SIIA.

More Trademark and Copyright Protections are Needed before New Domain Names Go Live on the Internet

SIIA today called for more Intellectual Property safeguards before any new generic top level domain (gTLD) applications are approved. SIIA filed comments with the Internet Corporation for Assigned Names and Numbers (ICANN ) on the new gTLD applications as part of the public comment and objection process.

Under the current program, trademark and copyright owners will be forced to expend significant resources and time to protect their intellectual property on thousands of new domains. It is essential that the registries (the gTLD applicants) that are approved by ICANN put in place greater safeguards to protect against piracy and counterfeiting. This is especially true for domain names that are targeted toward software and information products and brands.

SIIA and other concerned groups have recommended a minimum set of safeguards that all new gTLDs should be required to abide by. Among other things, these safeguards would require registries to offer publicly accessible, authenticated, verified Whois data for all second-level domain names within the registry. All registries must implement standards that ensure prompt investigation and resolution of rights holder complaints.

A clear process for complaints and systems for ensuring that domain information is accurate and publically available are the minimum levels of protection that rights holders deserve under this new program. Without this, the new domains will create huge potential for abuse by those seeking to profit from the name, reputation, and content of others. Trademark and copyright owners need a reasonable and open complaint process to turn to.


Keith Kupferschmid is General Counsel and SVP, Intellectual Property Policy & Enforcement at SIIA.

This Week in IP Enforcement

Switzerland, Italy Join Congressional Watch List on Piracy for First Time (Hollywood Reporter)
The U.S. Congressional International Anti-Piracy Caucus released its annual Anti-Piracy Watch List, with Italy and Switzerland making the list for the first time.

Jones, Others, Face Copyright Infringement Lawsuit from 2 Leading Publishers in N.Y. (Murray Ledger & Times)
McGraw-Hill Companies and Pearson Education filed a copyright infringement lawsuit against Murray businessman Charles Jones and his business College Book Rental Company for reproducing and distributing counterfeit copies of various textbooks.

Microsoft Said to Ask China to Stop Piracy at Four Firms (Bloomberg)
Microsoft filed complaints asking China to stop the alleged use of pirated versions of its Office software at four state-owned companies, including China Post Group and China National Petroleum Corp.

Client Loses Bid to Sue Ex-Lawyer for Copyright Infringement (Thomson Reuters)
A U.S. District Judge tossed a lawsuit brought by Bernard Gelb, a man who claimed his former attorney, Norman Kaplan, committed copyright infringement by using a complaint Gelb authored five years earlier.


Keith Kupferschmid is General Counsel and SVP, Intellectual Property Policy & Enforcement at SIIA.