Thursday, March 24, 2016

Daily Deal: Nut Mini Tracker

Keep tabs on your important objects with the Nut Mini Tracker. Attach the tiny tracker via an included strap or with the included 3M VHB tape and download the smartphone app. Whenever you stray too far from the Nut tracker, it will alert your phone. The Nut mini also notifies you when you leave your phone behind and the app even helps you track down lost items. It is less than 1.5 inches long and weighs in at a mere .35 ounces so you can attach it to anything and hardly notice it is even there. The tracker is available now for $15 for 1, or $25 for 2.


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Court To Film Director: You Must First Create An Infringing Work Before We Can Discuss Whether Or Not It's Actually Infringing

Is there anything more gloriously effed-up than IP law? I submit to you there is not. Here's the sub-headline for Eriq Gardner's Hollywood Reporter article, which deftly sums up the predicament facing a filmmaker looking to make a movie based on an old Buck Rogers novella.

Don Murphy can only clear rights if he potentially violates them first.
That's the ruling boiled down to a dozen words. The details, while enlightening, do nothing to change the underlying fact that Murphy may have to get sued for copyright infringement before he's allowed to prove he isn't infringing on anything.

That's not the only conundrum Murphy's facing. The other is this: no studio wants to touch the project until the rights have been sorted out. Murphy announced his plans to make a film based on "Armageddon 2419 A.D." at last year's Comic Con. The book was published in 1928. Murphy believes the copyright on the book and characters expired in 1956.

Quite obviously, the trust presiding over the original publisher's estate feels differently. The Dille Trust told Murphy the property must be licensed -- despite offering no proof that the copyright was still valid and despite one of the trust's beneficiaries (Robert Dille) being on board as a co-writer.

So, Murphy did what others have done: sued to have the work declared in the public domain. The problem is he hasn't infringed on the possibly uninfringeable work. The court, relying on a 2007 Supreme Court decision, basically tells Murphy he must start making this possibly-infringing work before it can start addressing his public domain claims.

Looking at the Buck Rogers case, Conti applies the Supreme Court's holding by questioning whether the dispute rises to an actual controversy from "immediacy" and "reality."
Regarding immediacy, Conti writes:

"In this case, the amended complaint does not contain specific, or even approximate, allegations about when plaintiff could begin film production, let alone release the allegedly infringing film, assuming a declaratory judgment is entered in plaintiff’s favor. A dispute 'lacks immediacy' where there are no allegations about 'when, if ever,' the product will be 'used in a manner that could potentially infringe' the intellectual property rights of another. Plaintiff’s nebulous allegations that 'development of the [film] is well underway' and that 'further production efforts could be undertaken in short order' are conclusory and insufficient to show the immediacy required by Article III."

Examining reality, Conti continues:

"At this early stage, the production and release of plaintiff’s film are 'contingent future event[s]' that may not occur 'as anticipated' or 'indeed may not occur at all.' As pleaded by plaintiff, the film project is still in an inchoate stage. Plaintiff does not allege it hired or entered into preliminary agreements with the parties 'integral to the commencement of production'—let alone the release—of a 'major motion picture.'... Plaintiff received 'preliminar[y,] . . . firm interest' in the project from Warner Brothers and Sony. Without allegations of actual commitment or intent to commit—through, for example, letters of intent—plaintiff’s vague, equivocal assertions fail to demonstrate the reality of this dispute. Plaintiff does not allege it entered into finalized, or even preliminary, financing, acquisition, licensing, or distribution agreements with these companies in connection with its potential film."
The Supreme Court decision being cited to put Murphy in the awkward position of having to roll the dice on copyright infringement has nothing to do with copyright. It's all about patents. And it's actually a good decision.
The latest ruling is in the MedImmune/Genentech case looking at whether or not licensing a patent means you can't challenge its validity. Genentech (and plenty of other patent holders) claimed that once you licensed a patent, you were basically saying that you agreed to its validity, and could no longer challenge it. The lower court agreed. This is problematic in a lot of ways, especially with the rise in patent extortion lawsuits, where it's often cheaper to just license the patent rather than fight it. MedImmune licensed the patent early on, rather than waste money fighting it, but challenged it later on when the patent in question became much more important (and the license much more expensive). With an 8 to 1 decision, the Supreme Court sided with MedImmune, saying that licensing a patent shouldn't preclude challenging that patent's validity. Another small step in the right direction.
And yet, here we are, looking at a director being asked to set himself for a lawsuit by the Dille Trust in order to prove he doesn't owe it anything. And in order to do that, he needs to convince a studio to walk across this IP minefield with him -- something no studio in its right mind would ever be willing to do.

The court has given him permission to file an amended complaint, but it's unclear what purpose that will serve under the Supreme Court's MedImmune decision. The only sensible response is to let the idea die. No studio will back a project based on a disputed property and no director is going to put the work in just to be hit with an injunction and statutory damages if the trust comes up with proof it still holds the copyright.

On the other hand, all the Dille Trust has to do is continue to insist it owns the property… even if it doesn't. That's it. Hail copyright.



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Tuesday, March 15, 2016

DailyDirt: How Will Anyone Get To Mars?

Traveling to mars is going to be a really, really long term project. We had some fun on the moon and drove around up there in a nifty moon buggy, but we didn't have a commitment to stay there for very long -- or even plans to keep going there once we knew it could be done. Getting astronauts to mars requires a completely different level of planning than going to the moon. Current technology won't get us there (well, at least not alive and healthy), but maybe we're still making some progress with a few untested propulsion systems. After you've finished checking out those links, take a look at our Daily Deals for cool gadgets and other awesome stuff.

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Monday, March 14, 2016

Friday, March 11, 2016

Music Licensing Shop Harry Fox Agency Appears To Be Scrambling To Fix Its Failure To Properly License Songs

A couple of months ago, I wrote a long post trying to dig into the details of David Lowery's class action lawsuit against Spotify. In the end, while there was some question over whether or not streaming music services really need to get compulsory mechanical licenses for producing reproductions of songs, it seemed like the fact that such licenses are compulsory and can be obtained easily via having the Harry Fox Agency issue a "Notice of Intention" under Section 115, it seemed crazy to think that the various music services had not done that. In fact, we noted that the only way the lawsuits made any sense was if the various music services and HFA ignored this and didn't send out such NOIs. At the time, I noted that this would be a surprise, and it could mean the services were in deep trouble.

Or perhaps not a surprise... and, yes, some folks may be in deep trouble. Beyond Lowery's lawsuit, a few other similar lawsuits have been filed. Earlier this month, Tim Geigner wrote about a very similar lawsuit filed by Yesh Music against Tidal. Of course, what didn't get as much attention is that Yesh filed very similar lawsuits against a bunch of other music services as well, including Google Music, Slacker, Line Corporation (which runs Mix Radio) and Guerva (which I think is a misspelling of the music site Guvera). Yesh also sued Deezer a few months ago.

One of the key questions that came up following the reporting on all of these cases is the Harry Fox Agency's role in all of this. HFA, an organization that was set up by the publishers themselves is supposed to be responsible for managing compulsory licensing for the vast majority (though not all) of popular songwriters (remember, HFA is about compositions/publishing, not sound recordings). But it's beginning to look seriously like HFA just fell asleep on the job and didn't bother to do the one key thing it was supposed to do for all these music services: file Section 115 NOIs.

Both David Lowery and another songwriter, Ari Herstand, have recently posted examples of HFA suddenly sending them NOIs that appear to be rushed and are showing up way after they're supposed to. I rarely agree with Lowery about anything, but it's seriously looking like HFA totally fucked up here. Big time. Here's the notice Lowery received:
As Lowery notes, this NOI was sent on February 16th, 2016, but was signed by a Spotify exec who left the company in 2015, for a song that showed up on Spotify in 2011 and using an HFA address that didn't exist until 2012. Basically... it looks like HFA is rushing around trying to send out NOIs that it failed to do properly, and doing a pretty half-assed job about it. And that seems especially stupid when it comes to issuing those NOIs to the guy who is already suing over those missing NOIs.

Herstand just received a similarly late NOI from HFA for his music appearing on Apple Music. As he notes, his notice says the music should appear on Apple Music as of March 10th of 2016, but it's actually been there since Apple Music launched last summer. He also notes this is the first NOI he's ever received from HFA, while he has received plenty of NOIs from the much smaller HFA competitor Music Reports "on a regular basis."

So, given all that, it sure looks like HFA didn't do the one thing that it was supposed to be doing all along, and that's... going to be bad news for someone. The big question is who? All of the lawsuits have been against the various music services, but without being privy to the contracts between HFA and the music services themselves, I'd be shocked if they didn't include some sort of indemnity clauses, basically saying that if music isn't licensed because of HFA's own failures to do its job that any liability falls back on HFA.

And, if that's the case, HFA could be on the hook for a ton of copyright infringement. If it's true that it's basically been ignoring the fairly simple NOI process for a lot of artists, then that's going to be a major scandal -- but one that seems a lot harder to pin on the music services themselves. They went to HFA and hired the company to handle mechanical licenses. There may be more going on behind the scenes here, but at a first pass, based on what appears to be happening, HFA may be in some seriously deep trouble.

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Thursday, March 10, 2016

Apple Might Be Forced To Reveal & Share iPhone Unlocking Code Widely

Among the many questions swirling around the challenge to U.S. Magistrate Judge Sheri Pym's Order that Apple create software to bypass the iPhone passcode screen, a matter of paramount public interest may have been overlooked: Even if the government prevails in compelling Apple to bypass these iPhone security features: (A) evidence for use in a criminal trial obtained in this way will be challenged under the Daubert standard (described below) and the evidence may be held to be inadmissible at trial; and (B) the Daubert challenge may require disclosure of Apple's iPhone unlocking software to a number of third parties who would require access to it in order to bring the Daubert challenge and who may not secure the new software adequately. To state that neither consequence would be in the public interest would be an understatement in the extreme.

The Daubert challenge would arise because any proffered evidence from the subject iPhone would have been obtained by methodology utilizing software that had never been used before to obtain evidence in a criminal trial. The Supreme Court, in Daubert v. Merrill-Dow Pharmaceutical-Dow Pharmaceuticals, Inc., held that new methodologies from which proffered evidence is derived must, when challenged, be substantiated by expert scientific testimony in order to be admissible. In Daubert, the court stated that the criteria that must be utilized when faced with a defense challenge to scientific testimony and evidence are:
  1. Can the methodology used to reach the expert's conclusion (the new software here) be tested and verified?
  2. Have the methodology and software been peer-reviewed and has the review been published in a peer-reviewed journal?
  3. Do the techniques used to reach the conclusion (here, to obtain the evidence) have an ascertainable error rate?
  4. Has the methodology used to generate the conclusion (the evidence) been generally accepted by the relevant scientific community?
Under the Daubert standards, introduction of evidence from the iPhone, electronic communications and data stored in the phone, would require the testimony of an expert witness to, among other things:
  • establish the integrity of the data (and its reliability) throughout the chain of custody;
  • explain whether any person or software could modify the data coming off of the phone;
  • verify that the data that came off the phone as delivered by Apple and held by law enforcement was the data that had originally been on the phone;
  • explain the technical measures, such as the digital signatures attached to the data, used ensure that no tampering has occurred and their likely error rates.
Such an expert would, in preparation for his or her testimony, require access to and examination of the software, as it is inconceivable that defense counsel would simply accept the testimony of the Apple personnel without also demanding that their own, third-party, experts have access to the code.

In addition, defense counsel would undoubtedly demand the right for their own third-party experts to have access not only to the source code, but to further demand the right to simulate the testing environment and run this code on their own systems in order to confirm the veracity of evidence. This could easily compromise the security of the new unlocking code, as argued by in the amicus brief filed with Judge Pym by Jennifer Granick and Riana Pfefferkorn from Stanford's Center for Internet and Society (also covered previously by Techdirt):
There is also a danger that the Custom Code will be lost or stolen. The more often Apple must use the forensic capability this Court is ordering it to create, the more people have to have access to it. The more people who have access to the Custom Code, the more likely it will leak. The software will be valuable to anyone eager to bypass security measures on one of the most secure smartphones on the market. The incentive to steal the Custom Code is huge. The Custom Code would be invaluable to identity thieves, blackmailers, and those engaged in corporate espionage and intellectual property theft, to name a few. 
Ms. Granick and Ms. Pfefferkorn may not have contemplated demands by defense counsel to examine the software on their own systems and according to their own terms, but their logic applies with equal force to evidentiary challenges to the new code: The risk of the software becoming public increases when it is examined by multiple defense counsel and their experts, on their own systems, with varying levels of technical competency. Fundamentally, then, basic criminal trial processes such as challenges to expert testimony and evidence that results from that testimony based on this new software stand in direct tension with the public interest in the secrecy and security of the source code of the new iPhone unlocking software.

At best, none of these issues can be resolved definitively at this time because the software to unlock the phone has not been written. But the government's demand that the court force Apple to write software that circumvents its own security protocols maybe shortsighted as a matter of trial strategy, in that any evidence obtained by that software may be precluded following a Daubert inquiry. Further, the public interest may be severely compromised by a court order directing that Apple to write the subject software because the due process requirements for defense counsel and their experts to access the software and Apple's security protocols may compromise the secrecy necessary to prevent the proposed workaround from becoming available to hackers, foreign governments and others. No matter what safeguards are ordered by a court, security of the new software may be at considerable risk because it is well known that no security safeguards are impregnable.

The government may be well advised to heed the adage, "Be careful what you ask for. You may just get it." Its victory in the San Bernardino proceedings may be worse that Pyrrhic. It could be dangerous.

Kenneth N. Rashbaum is a Partner at Barton, LLP in New York, where he heads the Privacy and Cybersecurity Practice. He is an Adjunct Professor of Law at Fordham University School of Law, Chair of the Disputes Division of the American Bar Association Section of International Law, Co-Chair of the ABA Section of International Law Privacy, E-Commerce and Data Security Committee and a member of the Section Council. You can follow Ken @KenRashbaum

Liberty McAteer is an Associate at Barton LLP. A former front-end web developer, he advises software developers and e-commerce organizations on data protection, cybersecurity and privacy, including preparation of security and privacy protocols and information security terms in licensing agreements, service level agreements and website terms of service. You can follow Liberty @LibertyMcAteer


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