Sports & Entertainment Beat

Website owners are battling or quietly settling an increasing number of copyright infringement claims for images posted without permission.  To avoid such claims, webmasters should be careful to make sure they have the proper permission from the copyright owner.  Just because an image is on the Internet and easy to cut and paste from another website, Facebook, Twitter, or other social media sites does not mean it can be re-used without permission. Images are protected even if they do not display the symbol ©. Save yourself headaches and legal fees by first going through the proper channels to obtain the clearances you need to use others’ images.  This article focuses on copyright issues but depending on how a photograph is used on your website, other permissions may be needed.  For example, publicity rights laws may require that you obtain permission from the people in the photograph, and trademark laws may require permission from the owner of any logo or branding appearing in the photo.

Professional athletes spend considerable time working with sports equipment.  Baseball players, for example, use different types of shoes, various protective equipment (such as helmets), devices to block the sun (such as bills of hats), and devices to otherwise improve performance (such as batting gloves to better grip a bat).  In part because of the time they spend using such equipment, and the time they spend on a field or court in front of a large crowd, not to mention the impact equipment can have on their athletic careers, professional athletes can recognize the desire for improved equipment to meet a need and can envision such improvements.  In at least a few situations, professional athletes have conceived of new ideas and have applied for and received patent protection for their inventions.

Billboard, the leader in the music industry for charting top artists and music, has partnered with Twitter and unveiled two new charts this week - the Billboard Twitter Trending 140 and the Billboard Twitter Emerging Artists.  Since its inception, Billboard has regularly developed new charts in response to changes in the music industry, specifically in the way that fans interact with and consume music.  According to Mashable, music is the most discussed topic on Twitter, with around one billion music-related tweets in 2013.

The National Labor Relations Board (“NLRB”) ruled on March 26, 2014 that Northwestern University football players who receive scholarships from the University are employees of the University and are eligible to unionize.

The NLRB cited several reasons for its decision, including that the University benefits from the players’ services through the compensation it receives for those services in the form of advertising, sponsorships, media buys, ticket sales, etc.  Additionally, it found that the University controls how and when the players perform their services and that these football players receive compensation for their services in the form of scholarships. The NLRB determined that football players receiving scholarships from the University are not “primarily students” and that their activities are rather economic ones that benefit the school.

Case Background

In a case titled Garcia v. Google, Inc., 12-57302, the recent ruling of the 9th Circuit Court of Appeals (which covers nine states, including California) suggests that an actor has a protectable copyright in the recording of his or her performance. In this case, Cindy Lee Garcia was hired and paid to act in a film entitled “Desert Warrior.” Ms. Garcia’s role was minimal. She was given only 4 pages of script and filmed for 3 ½ days. While “Desert Warrior” was never released, the film’s writer and producer dubbed over Ms. Garcia’s performance and included it in a different film called “Innocence of Muslims.” “Innocence of Muslims” was posted on YouTube. The context in which Ms. Garcia’s performance appeared in the film was interpreted as anti-Muslim by the Muslim community. Following the film’s release and posting on YouTube, Ms. Garcia received death threats. Despite Ms. Garcia’s numerous requests to Google that it remove “Innocence of Muslims” from YouTube, Google refused.

As a general rule, in accordance with IRC § 61, the value of any prize or award a taxpayer receives is subject to taxation. Internal Revenue Code (IRC) §§ 74 and 117 provide limited exceptions to this general rule.

IRC § 74 specifically excludes from the income of the recipient certain employee achievement awards and certain prizes or awards transferred to charitable organizations prior to receipt. IRC § 117 specifically excludes from the income of the recipient “qualified scholarship” proceeds. These exceptions are subject to rigid qualifications.

Spotify has launched a new commission-free service that permits music artists to make their merchandise and live concert tickets available to fans through the Spotify platform.  Through Spotify’s partnership with direct-to-consumer marketing platform, Topspin Media, artists will now be able to link from their Spotify artist page to a webstore, enabling them to provide fans direct access to CDs, vinyl records, t-shirts, posters, stickers, writstbands, and other merchandise through Spotify.  Participating artists will manage “preview” merchandise images, item titles, and descriptions that will be linked to the applicable webstore.  Spotify will moderate submissions to ensure the authenticity of offered merchandise.  It is anticipated that the merchandise offerings will appear on an artist’s page 24 to 48 hours after submission by the artist.  Currently, the service limits artists to offering a maximum of three merchandise items at a time.

California recently adopted a new law that affects almost all website operators and online service providers. The update to the California Online Privacy Protection Act (“CalOPPA”) became effective January 1, 2014, and applies to any person or company that operates a commercial website or online service (California’s position is that “online service” includes mobile apps) and collects personal information about California residents, whether such information is actively provided by the visitor or user or automatically collected by the site or service.