Archive for: December, 2007

Poland: unfair commercial practices

December 30th, 2007, Tomasz Rychlicki

The Act of 23 September 2007 on Combating Unfair Commercial Practices – CUCP – (in Polish: ustawa o przeciwdziałaniu nieuczciwym praktykom rynkowym) published in Journal of Laws (Dziennik Ustaw) No. 171, item. 1206, came into force on 21 December 2007. It implemented the Directive 2005/29 of the European Parliament and of the Council of 11 May 2005 concerning unfair business-to-consumer commercial practices in the internal market and amending Council Directive 84/450, Directives 97/7, 98/27 and 2002/65 of the European Parliament and of the Council and Regulation 2006/2004 of the European Parliament and of the Council (“Unfair Commercial Practices Directive”).

Among others things, it defines in article 5(1) misleading commercial practices as actions connected with introduction of products into the market which may lead to mistake as regards to products, its packaging, trade marks, trade names or other signs capable of identifying entrepreneurs, particularly comparative advertising.

The Act also deals with crypto-advertising which is defined as using commentary content in mass-media sources to promote a product where the business/entrepreneur paid for such action but it is not clearly indicated in the content, images or sounds and it is not easily identified by the consumer.

The Act also covers aggressive commercial practices. It defines such actions as (i) onerous processes which are not connected with consumers’ actions or (ii) desisting from acting, i.e. inducing the purchase of products via phone, fax, electronic mail or other means used to communicate in distance.

To whom the MC?

December 23rd, 2007, Tomasz Rychlicki

McDonald’s Corp. will not be allowed to “monopolize” the Mc-prefix. The Voivodeship Administrative Court (VAC) in Warsaw in its judgment of 18 December 2007, case file VI SA/Wa 1100/07, rejected McDonald’s Corporation complaint against the Polish Patent Office’s decision and ruled that a Singapore company was allowed to register MacCoffee mark for coffe products.

This judgment should make all trade mark practitioners aware of differences between legal systems. Especially when this Polish case is compared to holding in the case Quality Inns Int’l v McDonald’s Corp., 695 F. Supp. 198 (D. Md. 1988). The Court ruled that Quality International’s use of the name “McSleep” infringed McDonald’s family of marks that are characterized by the use of the prefix “Mc” combined with a generic word.

IX. GENERIC DEFENSE

Both Mr. Hazard, Quality International’s CEO, and Mr. Mosser, its vice president in charge of franchising, urged at trial that “Mc” has become a generic prefix meaning thrifty, consistent, and perhaps convenient. They urge that the notion of thriftiness comes from the association with the Scots and the perception that the Scots are thrifty. The Court was directed to the writings of H.L. Mencken, the famous Baltimore journalist and writer, who said:

Nearly all the English words and phrases based on Scotch embody references to the traditional penuriousness of the Scots, for example Scotch coffee, hot water flavored with burnt biscuit; to play the Scotch organ, to put money in a cash register; Scotch pint, a two-quart bottle; Scotch sixpence, a threepence; and the Scotchman’s cinema, Piccadilly Circus, because it offers many free attractions.

The American Language by H.L. Mencken (4th Ed. Abridged with Annotations and Material by Raven I. [appropriately] McDavid, Jr.), at pages 388-89.

Both Mr. Hazard and Mr. Mosser acknowledge that the aspect of “Mc” that includes consistency and convenience derives from McDonald’s and its extensive promotional efforts. They urge, however, that any such association with McDonald’s is now lost to the public domain by common usage.

In support of the contention that “Mc” as a prefix has derived a singular meaning and become part of the language, Dr. Roger W. Shuy, a linguist from Georgetown University, reviewed hundreds of journalistic uses of the prefix “Mc” for purposes of deriving its meaning and to evidence it common usage. Several examples will give a sampling of the broad range of his findings.

The term “McFood” has been used as follows: “It’s a push-button, do-it-yourself, convenience-oriented world. . . . Why cook when we can zap a Lean Cuisine in the micro, or order McFood from a drive-in McSpeaker.” Similarly, the word McLunch has been used for what kids are eating in school.

In the area of clothes, McFashion has been used in connection with smaller, specialized express stores for kids, imitating the concept of a fast food outlet.

McMedicine has been used to refer to prompt, inexpensive medical care centers, and McSurgery becomes surgery without overnight hospital stays.

McLaw has been used to describe the legal franchise phenomenon, suggesting that legal advice is dispensed through drive-in windows. Describing franchising in other areas have been McFuneral for funeral operations; McLube or McOil Change for the fast, little drive-in shops offering ten-minute oil changes; and McMiz for franchising of the Broadway musical “Les Miserables.” Even the franchising of local post office branches has been suggested to become McMail, and franchised tax preparation as McTax.

In the news and media area, USA Today has been characterized as McPaper, “fast news for the fast-food generation.” There was even a book called The Making of McPaper. The distillation of books or books without substance has been referred to as McBook, and similar characterizations have been made about digested news stories, McNews.

Even culture that has been subjected to mass marketing has been characterized with the prefix “Mc.” The proliferation of low-cost mass-produced art is McArt. One article even referred to McMozart.

Movies that are analogized to fast food which satisfy the appetite and taste good have been called McMovies or McCinemas. Similarly, there is McTelevision, McTelecast, and McVideo.

No subject seems to have been excluded. In connection with religion there has been a reference to McGod: “It was a difficult year for the McGod family network. [Jimmy Baker, Jimmy Swaggart, and Jerry Falwell] fought a major turf battle over control of the PTL McTelevangelism.”

One article perhaps summarized it all, “This is the era of instant gratification, of poptops, quick wash, fast fix, frozen foods, McEverything.”

A news report placed into evidence referred to the trial before this Court as taking place in the McCourt, which, of course, would make the judge the McJudge. While the Court understood that association with the Courthouse in Baltimore, it could not come to grips with the suggestion that the trial was before a McJudge. The Court could find few, if any, of the attributes of “Mc” used by McDonald’s or by the journalists otherwise to fit. Perhaps this McPinion will fulfill that prophecy.

After reviewing these articles and numerous others, Dr. Shuy reviewed the context of the “Mc” word and derived a list of 27 definitions for the prefix “Mc”: highly advertised; franchise; easy access; inexpensive; high volume; lacks prestige, comfort, cost; everyday; prepackaged; specialty chain; quick; convenient; reduces choices; self-service; mass merchandising; standardized; state of the art marketing; low brow; assembly line precision; uniform; market dominance formula; handy location; positive attitude; simple; comfortable; honest; looks okay; and working man. He reduced these to four terms which he characterizes as the definition of “Mc,” that is, “basic, convenient, inexpensive, and standardized.”

McDonald’s retained an outside firm to do its own internal marketing research into the public perception of the meaning of “Mc” and the conclusions reached were similar to those reached by Dr. Shuy. McDonald’s list, which was much shorter, distilled the following definitions: (1) “reliable at a good price,” (2) “prepackaged, consistent, fast, and easy” (3) “a prefix McDonald’s adds to everything it does,” and (4) “processed, simplified, has the punch taken out of it.”

Dr. David W. Lightfoot, a linguist from the University of Maryland, testified at trial on behalf of McDonald’s. He took no issue with the meanings derived by Dr. Shuy and by McDonald’s own internal survey. However, he disputed vigorously any notion that “Mc” is a generic word. He pointed out that “Mc” does not have a single easy identifiable meaning. For instance, of the 27 or so definitions derived by Dr. Shuy from the journalistic uses, many were not incorporated into Dr. Shuy’s condensed definition. Dr. Lightfoot concluded that all the meanings derived by Dr. Shuy, by McDonald’s and by him were essentially descriptive of McDonald’s Corporation and the reputation it has earned over the years. He concluded that whether or not there was a specific reference to McDonald’s Corporation in each article, in every case the allusion was to McDonald’s and its family of marks in a manner that was intended to be cute and playful.

The Court concludes that indeed the uses in the press of “Mc” plus a generic word are coined and novel to each article for the playful use by the author. In each case the allusion, whether express or implied, was to McDonald’s, sometimes flattering and sometimes pejorative. There was no single independent meaning of “Mc” understood in the language and its uses have been created to convey any one of several attributes that the author makes to McDonald’s.

This is not analogous to a circumstance where a product is referred to so frequently by brand name that even competitive brands are called by the one name and the brand identity is lost. On the contrary, the attribution of source to McDonald’s in the use of “Mc” is strong and persists. The Court notes that while most of the articles used by Dr. Shuy did not contain express allusions to McDonald’s, a very similar group of articles that he did not use in his analysis, but which conveyed the same meanings, made express allusions to McDonald’s. The Court therefore rejects any contention that McDonald’s has lost its right to enforce its marks because “Mc” has become a prefix with a single meaning that has become part of the English language and beyond McDonald’s control.

I reported on this case in my previous post entitled “Poland: no exclusive rights to MC“.

Good luck Apple'

December 22nd, 2007, Tomasz Rychlicki

The U.S. patent application no. 20070288886.

Abstract
A digital rights management system permits an application owner to cause code to be injected into the application’s run-time instruction stream so as to restrict execution of that application to specific hardware platforms. In a first phase, an authorizing entity (e.g., an application owner or platform manufacturer) authorizes one or more applications to execute on a given hardware platform. Later, during application run-time, code is injected that performs periodic checks are made to determine if the application continues to run on the previously authorized hardware platform. If a periodic check fails, at least part of the application’s execution string is terminated–effectively rendering the application non-usable. The periodic check is transparent to the user and difficult to circumvent.

Poland: no exclusive rights to MC

December 21st, 2007, Tomasz Rychlicki

McDonald’s will not be allowed to “monopolize” the Mc-prefix. The Voivodeship Administrative Court in Warsaw in a judgment of 18 December 2007, case file VI SA/Wa 1100/07, rejected McDonald’s Corporation complaint against the Polish Patent Office’s decision and ruled that a Singapore company was allowed to register MacCoffee mark for coffe products.

This judgment should make all trade mark practitioners aware of differences between legal systems. Especially when this Polish case is compared to holding in the case Quality Inns Int’l v McDonald’s Corp., 695 F. Supp. 198 (D. Md. 1988). The Court ruled that Quality International’s use of the name “McSleep” infringed McDonald’s family of marks that are characterized by the use of the prefix “Mc” combined with a generic word.

Farewell ThinkSecret!

December 20th, 2007, Tomasz Rychlicki

O’Grady v. SUPERIOR COURT OF CALIFORNIA, 2005 CA App. Ct. Pleadings 28579H (CA App. Ct. Pleadings 2005). Some excerpts.

Petitioners seek to stop [**7] a third party from providing the identities of persons who stole highly valuable trade secrets that belong to Apple Computer and were illegally disseminated through Petitioners’ websites. After conducting a thorough but unsuccessful investigation into this unauthorized disclosure, Apple served a narrowly tailored subpoena on an email service provider to recover the stolen materials and discover who had misappropriated Apple’s trade secrets. Asserting special protections they claim attach to their purported role as “journalists,” Petitioners moved for a protective order to block this essential discovery. The trial court denied the motion and this petition followed.

Apple, the real party in interest, is the victim of a serious theft. Unknown individuals stole trade secrets about an unreleased Apple product, code-named “Asteroid,” from secure Apple facilities. Petitioners deliberately posted these misappropriated trade secrets on their websites “PowerPage” and “AppleInsider.” These posts contained little more than outright copies of Apple’s unreleased, copyrighted design, verbatim excerpts from Apple technical specifications, Apple’s pricing projections for Asteroid, and Apple’s comparison of the product to its anticipated competition.
(…)
23. Respondent trial court granted Apple’s application on December 14, 2004, (Order Granting Ex Parte Application for Discovery and Issuance of Subpoenas (“Discovery Order 1″), Ex. 8, 71-72) authorizing Apple to serve subpoenas to “Powerpage.com, Appleinsider.com, and Thinksecret.com requiring each to produce all documents relating to any information posted on its site relating to an unreleased Apple product code named ‘Asteroid’ …” and to serve [*11] subpoenas on each of the Apple News Sites for information leading to the identity of “any individual or individuals who have knowledge regarding the posts on its site disclosing information about the Product … and individuals who received and/or edited information related to the Product.” Apple subsequently drafted and attempted to serve a subpoena on Apple Insider and Monish Bhatia.

And here are informations from different sources.

Apple and Think Secret have settled their lawsuit, reaching an agreement that results in a positive solution for both sides. As part of the confidential settlement, no sources were revealed and Think Secret will no longer be published. Nick Ciarelli, Think Secret’s publisher, said “I’m pleased to have reached this amicable settlement, and will now be able to move forward with my college studies and broader journalistic pursuits.

You have the right to remain silent

December 16th, 2007, Tomasz Rychlicki

I am really suprised that the U.S. courts are interpreting the Miranda rule so late when it comes to “computer passwords”. I mean In re Grand Jury Subpoena, 2007 U.S. Dist. LEXIS 87951, 2007 WL 4246473 (D. Vt. 2007). I suggest you read the judgment of the European Court of Human Rights judgment in Funke v. France, [1993] ECHR 7 (25 February 1993).

Poles about IP

December 15th, 2007, Tomasz Rychlicki

The Public Opinion Research Center has published a report entitled “Respondent’s attitiudes to Intellectual property law and author’s right“, PDF file. The annoucement from the research, Warsaw, November 2007. A series of research entitled “Current problems and events” (209), 10–14 October 2007, adult residents of Poland (N=1385) – a representative group of respondents.

  • Majority of CDs and tapes’ buyers (62%) is able to distinguish between original and faked products, 34% persons is not able to do it. Only the half of buyers admitted, that they are paying attention while buying CDs and tapes..
  • When having a choice to select between an expensive but original or cheap and unauthorized, 44% respondents would buy the original product.
  • Almost 65% respondents think that audiovisual piracy is somehow excused by high prices of original products and only 28% condemn unauthorized copying and selling of such products perceiving this business as theft.

A riddle

December 14th, 2007, Tomasz Rychlicki

Both movie clips are copyrighted works and they are really good, right? So, here comes the judgment in Toho Co., LTD v. Priority Records, LLC, 2002 U.S. Dist. LEXIS 14093 (D. Cal. 2002). Will you guess the title of my next article? =)

Schizophrenia?

December 14th, 2007, Tomasz Rychlicki

An even more interesting thing has started to happen: unofficial, but sanctioned television show leaks on BitTorrent. Broadcasters aren’t posting their shows directly on PirateBay yet, but they are talking informally and giving copies of shows to a friend of a friend who is unaffiliated with the company to make a torrent.

It is taken from a very interesting article which you may read in full at last100.com website. I would like to recommend you to read something else which in its contex is refering to information above but for me it looks like some kind of schizophrenia.

Rep. Howard Berman (D-CA), also known as Congressman Hollywood, is one of the most powerful members of the House when it comes to intellectual property issues, so when he muses aloud about “revisiting” the DMCA, people listen. Unfortunately, Berman wants to reform the DMCA because it doesn’t go far enough, and his ideas sound like they’re ripped right from the pages of the Big Content playbook.

The whole article is available at arstechnica.com website.

BestBuy logo

December 12th, 2007, Tomasz Rychlicki

There is a very interesting article available at laughingsquid.com website concerning Best Buy’s reaction with regard to a criticism of their business. Best Buy’s lawyer wrote that the questioned trade mark is well-known and famous. For a comparative argument I’d point him at the CFI case T-122/01, Best Buy Concepts v. OHIM, OJ C 213, 06.09.2003, p. 30.

28.
As regards, first, the word mark best buy, the Court notes that it is composed of ordinary English words which clearly indicate an advantageous relation between the price of the services covered by the application and their market value.

29.
It is, therefore, perceived immediately by the relevant public as a mere promotional formula or a slogan which indicates that the services in question offer the best buy possible in their category or the best price-quality ratio, as noted by the Board of Appeal in paragraph 17 of the contested decision.

Update on December 13, 2007.
Best Buy officially regrets sending the C&D letter. More details at laughingsquid.com website.