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Conference Special www.ipprotheinternet.com The primary source of global intellectual property internet news and analysis You’ve got a friend in UDRP WIPO’s Brian Beckham reveals how new TLDs are affecting the Arbitration and Mediation Center’s workload IP Technology New kid on the blockchain Enforcement Insight The IPR Center is going global China Trademarks The strange case of the patent office’s logo Intellectual Property in an Innovative World 3 Latest News Cox’s liability confirmed A US district court judge has affirmed that Cox Communications is liable for the copyright infringement of its users and must pay $25 million in damages to BMG Rights Management. In the 8 August decision, US District Court for the District of Eastern Virginia Judge Liam O’Grady denied the ISP’s motion for judgment as a matter of law or a new trial on the basis that the original jury’s verdict of willful infringement was correct. BMG, whose musicians include Bruno Mars, David Bowie and Kings of Leon, held Cox responsible for the copyright infringement committed by the ISP’s users. BMG also sought a judgment on its claim of vicarious infringement and demand for permanent injunctive relief. The injunction would have required Cox to terminate the accounts Contents of infringing subscribers, as well as monitor potential infringements. WIPO Interview But Judge O’Grady found that “the relief requested would have a substantial spillover effect far beyond the parties to this lawsuit”. WIPO’s Brian Beckham reveals how new TLDs are affecting the Arbitration and Mediation Center’s workload “While there is significant public benefit in reducing copyright infringement, BMG has not demonstrated to the court’s satisfaction P10 IPR Center that such a reduction here would not come at the expense of other nontrivial interests, including privacy and access to the internet.” US IPR Center director Bruce Foucart reviews the progress that his agency and its partners have been in the fight against intellectual Judge O’Grady explained that injunctive relief is inappropriate in the property infringement face of uncertainty. P12 “A court should not impose an injunction lightly, as it is an Tech Profile extraordinary remedy involving the exercise of a very far-reaching power, which is to be applied only in the limited circumstances Tech startup Blockai’s novel approach to protection and enforcement which clearly demand it.” promises to “democratise” copyright for artists whose rights have been misappropriated Last year in the closely watched case, Cox was denied its safe P16 harbour defence under the Digital Millennium Copyright Act due to its apparent failure to terminate the accounts of its infringing customers. China Trademarks Judge dismisses Alibaba racketeering claims Tingxi Huo and Zhanqing Tang discuss the strange case of a trademark office approving a third party’s application for the patent A US district judge has dismissed racketeering claims asserted office’s logo against Chinese e-commerce giant Alibaba Group. P18 Judge Kevin Castel rejected the Racketeer Influenced and Corrupt Patent Damages Organizations Act claims of French luxury brand owner Kering on 4 August in the District Court for the Southern District of New York, on Yu-Li Tsai of Deep & Far examines how damages are calculated in the grounds that the claims were unsubstantiated. patent infringement litigation in Taiwan P20 Kering owns several high profile luxury brands including Gucci and Mexico Trademarks Yves Saint Laurent, which claim that Alibaba had essentially formed an enterprise through ecommerce platforms such as Taobao, which A recent amendment will make costly annulments a thing of the dominate online retailing in China, selling fake versions of Kering past. Gilberto Sanchez, partner at SPECyF, explains products for as little as $2, when authentic versions could cost up P22 to and over $1,000. Software Solutions Judge Castel’s ruling does not affect other aspects of the lawsuit against Alibaba. IPzen’s Ava Kammer considers the benefits of working in the cloud P23 Kering filed several copyright infringement and trademark claims India Insight against Alibaba in May, which Alibaba has said have “no basis”. The Calcutta High Court recently ruled that only the owner of a In August last year, Kering won a court order that barred certain vendors trademark can sue for its infringement. Lucy Rana and Bijit Das SS from using Alibaba’s online marketplaces to sell counterfeit products. Rana & Co report Since then, Alibaba has upped efforts to defend against copyright P26 3 Latest News and trademark infringement in an attempt to create confidence ICANN maintained throughout the application process that it had among its disgruntled critics. investigated the alleged problems with Nu Dot Co’s potential leadership changes and found no alterations. Alibaba joined the International Anti-Counterfeiting Coalition (IACC) earlier this year but was suspended after protest resignations by Donuts filed for an injunction requiring ICANN to refrain from high profile brands, including Gucci. conducting the auction for .web, but the bid was denied. In July, Alibaba launched a new IP infringement system that gives Roche recovers domain name haul brands their own account managers to work with them through the takedown process. Pharma company Roche Group and its subsidiaries have reclaimed 18 domain names that were filed in bad faith. Alibaba did not immediately reply to a request for comment. The World Intellectual Property Organization Arbitration and Donuts demands $22.5 million from ICANN Mediation Center’s recent ruling covered 18 domain names that infringed five trademarks that cover Roche drugs. Donuts has amended its lawsuit against the Internet Corporation for Assigned Names and Numbers (ICANN) to demand a new The domains mixed various iterations of the trademarks ‘Boniva’, settlement of $22.5 million plus damages. ‘Cellcept’, ‘Herceptin’, ‘Lucentis’ and ‘Mabthera’ with generic words such as ‘buy’ and ‘order’. The amended complaint was filed in the US District Court for the Central District of California on 8 August and cited new evidence The drugs have a range of applications, including immunosuppressive of Verisign’s alleged involvement in Nu Dot Co’s winning $135 agents that can help with organ transplant and medicines for the million bid for .web, arguing that ICANN “willfully and intentionally treatment of cancer. committed wrongful acts”. Multiple domain names were directed towards the website of a Canadian Following Nu Dot Co’s successful bid for .web, evidence emerged pharmacy that claims to sell Boniva and Cellcept at low prices. in Verisign’s quarterly report that it had transferred $130 million for “the future assignment of contractual rights, which are subject to “The complainants find proof of use in bad faith in the domain third-party consent”. names redirecting to an online pharmacy, therefore demonstrating awareness of the complainants’ pharmaceutical products associated Donuts claims that ICANN “intentionally failed to abide by its with the trademarks,” said sole panellist Gregor Vos. contractual obligations to conduct a full and open investigation into Nu Dot Co’s admission because it was in ICANN’s interest that the “All of the domain names include a recognisable trademark of the .web contention set be resolved by way of ICANN auction.” complainants. This will create confusion as these trademarks are highly distinctive and have no common colloquial use.” “ICANN deprived Donuts and the other applicants for the .web gTLD of the right to compete for .web in accordance with VirnetX’s $625.6 million verdict against Apple voided established ICANN policy. Court intervention is necessary to ensure ICANN’s compliance with its own accountability and A US federal judge has voided a verdict ordering Apple to pay transparency mechanisms.” $625.6 million to VirnetX for infringing four patents. The demanded $22.5 million is equal to the amount Donuts said it Judge Robert Schroeder said in a decision on 29 July at the US would have received if the auction had been private and still closed District Court for the District of Eastern Texas that two lawsuits that for $135 milion. had been combined into a single trial led to jurors being unknowingly influenced by a prior verdict. The registry’s original lawsuit was filed less than a day after a request for ICANN to postpone the auction was denied. Donuts had The cases, referred to by VirnetX as Apple I and Apple II, will now be requested that ICANN fully investigate .web applicant Nu Dot Co’s tried as separately. The cases had previously been combined after leadership changes, with the registry suspecting that Verisign was the Court of Appeals for the Federal Circuit had remanded Apple I behind Nu Dot Co’s bid. and vacated the $368 million damages award VirnetX had won. IPzen 4 Latest News VirnetX said that the issues in Apple I were largely similar to the to-peer networks and towards illegal web streaming. In a report issues in Apple II and that all of these issues could be decided at published at the end of July, the content protection provider the trial for the second case. discovered that 73.69 percent of the analysed total of 78.49 billion movie and TV piracy site visits were attributable to streaming sites But this was ultimately unfair for Apple, Judge Schroeder ruled. against the 17.24 percent that were visiting peer to peer sites. VirnetX was awarded the $625.6 million judgement earlier this year The Global Film & TV Piracy report covered visits to 14,000 of the in the combined case and was confident in its victory, with Caldwell world’s largest piracy websites over 200 million measured devices Cassidy, attorney at VirnetX, saying “Apple has been infringing and covered 226 countries. VirnetX’s patented technology for years”. As well as these figures, the report uncovered that the biggest user Kendall Larsen, VirnetX’s CEO and president, commented on 29 July: of infringing video content was the US with more than 12 percent of “We are disappointed by the court’s decision to vacate its prior ruling. the world’s global piracy audience. We are reviewing all our options ... we trust that the jury will again make the right decision in the retrials.” France, Germany and the UK were all present in the top 10 countries contributing to piracy audiences. Apple I, which covers the alleged infringement of VirnetX patents in Apple’s VPN-on-Demand, as well as alleged infringement in Apple’s A general decrease in peer-to-peer networks was also uncovered FaceTime product, is scheduled for jury selection on 26 September, with an overall decrease of 18.98 percent from the last six months unless both parties agree to an alternative date. of 2015 to the first six months of 2016. Apple II, which covers similar alleged infringement by Apple’s While the emerging trends seem to exhibit a shift towards other (cid:2)(cid:14)(cid:16)(cid:7)(cid:7)(cid:4)(cid:8)(cid:9)(cid:10)(cid:11)(cid:4)(cid:12)(cid:13)(cid:4)(cid:2)(cid:15)(cid:15)(cid:7)(cid:7)(cid:4)(cid:17)(cid:9)(cid:18)(cid:17)(cid:19)(cid:4)(cid:4) redesigned VPN-on-Demand, FaceTime and iMessage services, will forms of illegal file sharing, the overall global monthly visits to movie be retried after Apple I. and TV piracy sites are dropping, according to MUSO. Streaming dominates piracy This follows research released last month by the UK Intellectual Property Office that revealed legal streaming services such Content protection provider MUSO has released its Global Film & Netflix and Spotify are having a “chilling effect” on illegal TV Piracy report, revealing a clear audience trend away from peer- copyright infringement. 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(cid:12)(cid:6)(cid:10)(cid:4)(cid:13)(cid:14)(cid:10) (cid:12)(cid:6)(cid:10)(cid:4)(cid:13)(cid:14)(cid:10) (cid:2)(cid:3)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:2)(cid:3)(cid:4)(cid:3)(cid:5)(cid:6)(cid:9)(cid:3)(cid:7)(cid:8)(cid:9)(cid:10)(cid:11)(cid:3)(cid:12)(cid:13)(cid:10)(cid:12)(cid:14)(cid:7)(cid:15)(cid:8)(cid:14)(cid:3)(cid:4)(cid:3)(cid:15)(cid:15)(cid:9)(cid:8)(cid:14)(cid:12)(cid:16)(cid:3)(cid:2)(cid:12)(cid:17)(cid:11)(cid:15)(cid:3)(cid:18)(cid:3)(cid:5)(cid:5)(cid:19)(cid:3)(cid:19)(cid:20)(cid:21)(cid:3)(cid:15)(cid:14)(cid:2)(cid:15)(cid:22)(cid:8) (cid:10)(cid:7)(cid:8)(cid:11)(cid:12)(cid:13)(cid:8)(cid:13)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:12)(cid:8)(cid:12)(cid:12)(cid:12)(cid:12)(cid:8)(cid:8)(cid:3)(cid:7)(cid:8)(cid:11)(cid:12)(cid:13)(cid:8)(cid:13)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:12)(cid:8)(cid:12)(cid:12)(cid:17)(cid:17)(cid:8)(cid:8)(cid:6)(cid:7)(cid:8)(cid:4)(cid:18)(cid:19)(cid:20)(cid:21)(cid:4)(cid:18)(cid:22)(cid:23)(cid:24)(cid:4)(cid:10)(cid:25)(cid:26)(cid:20)(cid:27)(cid:8) 6 7 Latest News Apple and Kudelski end OpenTV dispute Apple and Kudelski Group have agreed to settle their patent infringement dispute. Kudelski confirmed on 2 August that an agreement with Apple had been reached, but financial terms were not disclosed. The first accusations of patent infringement against Apple arrived in 2014, with Kudelski’s subsidiaries, OpenTV and Nagravision, then filing three lawsuits against Apple in 2015, alleging that it had infringed their video streaming patents through its iOS mobile devices and Apple TV. A Düsseldorf District Court in Germany ruled against Apple earlier this year, finding that OpenTV’s claims were “predominantly valid and well-founded”. Kudelski has been aggressively asserting its patents and actively entering into patent licensing agreements since it acquired OpenTV in 2010. It has signed up Verizon and Yahoo. Kudelski also signed a broad patent licensing agreement with RPX Corporation, a defensive patent aggregator, on 3 August. PETA slips in monkey appeal The deal will allow RPX to sub-license patents owned by Kudelski to a limited number of companies. The People for Ethical Treatment of Animals (PETA) has filed Kudelski will receive an upfront payment, mutual patent risk its opening brief in its bid to reverse the decision that the clearance and future transfer of patents from RPX. infamous ‘monkey selfie’ photographer, Naruto, could not claim authorship. Kudelski has also joined the RPX client network as part of the agreement. The brief was filed in the US Court of Appeals for the Ninth Joe Chemesky, senior vice president of intellectual property and Circuit on 28 July in the appeal against the District Court innovation at Kudelski, said of the deal: “Operating companies for the Northern District of California’s January decision benefit when they respect each other’s intellectual property rights that standing for animals under the Copyright Act was a and license patents in a reasonable and collaborative manner.” congressional matter. RPX executive vice president Mallun Yen added: “In bringing The case, with PETA acting as the ‘next friend’ for Naruto together operating companies in complex deals such as this one, in a bid to expand US copyright law to include animals, we reduce the uncertainty of patent-related risk and continue to considered whether the seven-year old crested macaque transform the patent market with our clearinghouse approach.” monkey was the owner of the infamous ‘monkey selfies’, rather than photographer David Slater, whose camera was CSC acquires NetNames used to take the photos. The owner of UK-based NetNames, HgCapital, has agreed to the “Had the monkey selfies been made by a human using sale of the brand protection and domain name specialist to CSC Slater’s unattended camera, that human would undisputedly in the US. be declared the author and copyright owner of the photographs,” PETA argued in its brief to the Ninth Circuit. In a press release on 1 August, HgCapital said it would receive proceeds of £14.3 million on completion of the transaction, but left “Nothing in the Copyright Act limits its applications to other details undisclosed. human authors.” HgCapital acquired NetNames in 2011 for £153 million. PETA further argued that the “Copyright Act did not explain how to identify the author of a photograph” and referenced A spokesperson from CSC said: “We are thrilled to be moving Burrows-Giles Lithographic Co v Sarony, a case in which forward with the acquisition of NetNames.” the court recognised an author as “he to whom anything owes origin”. “We are excited by a future in which we can bring together our combined expertise to help companies worldwide protect and PETA recognised that there was no prior cases that promote their brands in the digital marketplace.” sought copyright protection on behalf of an animal and that “the history of copyright law has been one of The brand and domain name management specialist is gradual expansion”. headquartered in London with offices around Europe and Asia. The opening brief marks the beginning of the appeal. Slater’s It focuses on anti-piracy and online security measures, and offers response is due by 29 August. domain dispute services. 7 Latest News Chipwich claim melts Nestlé has retained its Chipwich domain name, despite abandoning But sole panellist Charles Kuechenmeister denied the request, the US trademark. stating that Nestlé had acquired the name in 2007 in good faith and that “passive holding of the domain name is not sufficient to The Alternative Dispute Resolution Forum reached the UDRP establish that it is being used in bad faith”. decision at the end of July, saying that its passive holding of chipwich.com was in “good faith”. Chipwich was a company that sold ice cream sandwiches using two chocolate chip cookies in the 1980s but entered into financial difficulties The complainant, Jeffrey Kaplan, alleged that Nestlé was with the loss of its Weight Watchers frozen food licence in 2004. cybersquatting and had registered the domain in bad faith after voluntarily surrendering its intellectual property rights to ‘Chipwich’ Nestlé then acquired the company and discontinued production of in 2011. the Chipwich. Kaplan claimed that Nestlé’s domain registration was The trademark was then abandoned by Nestlé and obtained by preventing him from using ‘Chipwich’ for a legitimate Kaplan’s company Retrobrands, which takes on previously famous business purpose. but abandoned brands and trademarks. Zuma presses ahead against Getty Zuma blames Getty’s infringement on accelerated growth “that makes due diligence and adequate review of acquisitions difficult Press agency Zuma Press has filed a copyright infringement lawsuit and improbable”. against Getty Images over its “careless” licensing of more than 47,000 photos. “Getty has been carelessly and recklessly acquiring content, not doing due diligence and not taking adequate measures to prevent The complaint, filed on 1 August in the US District Court of for the infringement as well as falsifying/removing proper copyright Southern District of New York, claims that Getty acquired Zuma’s management information.” photos and licensed, sold and distributed them on its platform without permission. This lawsuit comes after Carol Highsmith, a US photographer, launched a $1 billion complaint against Getty. Zuma said that though Getty was originally conceived to counterbalance “the internet’s corrosive effect on the creative marketplace”, Getty Getty had allegedly sent Highsmith a $120 copyright claim for a had become “the content creators’ worst detractor”. photo she says she created and owns. “[Getty] acquires more images than it can responsibly administer According to Highsmith’s complaint, she learned that Getty had and belligerently enforces whatever imperfect rights it might have sent similar letters to other users of her photos, all of which are in those images.” available online for free. 8 Interested in patents? Susbscribe free to IPPro Patents - News added daily - Full issue archive - Service providers directory - No registration or paywall www.ippropatents.com Mark Dugdale reports Domain names in new TLDs made up 10.5 percent of the centre’s caseload last year, which was also up overall on 2014. What is the centre having to do to deal with this increase in cases? The World Intellectual Property Organization (WIPO) Arbitration and Mediation Center’s administration of Uniform Domain Name Dispute Resolution Policy (UDRP) cases is facilitated through a tailor- made case management database. We are always looking at ways to adapt such tools not only to further streamline our operations against increased case filings, but also to achieve a high degree of consistency in our case administration. On another resource note, we are fortunate to have a highly motivated team of bright young lawyers and dedicated support staff from around the world. In terms of numbers, new TLDs continue to occupy an increasingly significant proportion of case numbers: almost 15 percent of filings so far in 2016. With new TLDs, are UDRP cases having to retread lots of old ground? What are the benefits of having already established case law? Are any new issues creeping up as a result new TLDs? may legitimately co-exist (for example, abc.bank and abc.shoes). Overall, however, early new TLD cases have not so far presented While readers will know that UDRP cases do not operate on any groundbreaking or landmark jurisprudential issues. a strict principle of binding precedent, both filing parties and UDRP panellists alike unquestionably rely on consensus positions How effective is the transfer procedure operating at the articulated in WIPO-created resources such as the WIPO Overview moment? Are registrars/registries transferring contested of WIPO Panel Views on Selected UDRP Questions and the WIPO domains as quickly and efficiently as they can? Legal Index—both of which cover experiences gained through nearly 35,000 WIPO UDRP cases. While the WIPO centre does not actively participate in the implementation of UDRP decisions, we note anecdotally that These resources lend themselves to a great degree of consistency the most registrars have been appropriately implementing UDRP in decisions and provide parties with reasonable assurance of the decisions. In some cases, however, new registrars are facing degree of merit to their respective cases. something of a learning curve, and in some rare cases, UDRP case implementation matters are brought to the attention of the Internet New TLD cases have largely tracked existing first element Corporation for Assigned Names and Numbers (ICANN). jurisprudence in confirming this criterion as a ‘standing’ threshold. In some cases, panels have been exploring whether a particular Filing parties may themselves use ICANN’s complaint form. While new TLD itself may affect the second and third element analysis, not related to new TLDs as such, we have also experienced some particularly where parties using the same mark in different classes growing pains with registrar implementation of party settlement 10 11

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