When Is A Risk Worth It?

When Is A Risk Worth It?

Lawyers are cautious by definition. We want you to make good decisions before you act because that’s how you insulate yourself from lawsuits (and make our jobs easier as well). Personally, I’m a bit less conservative than the average attorney. Maybe it’s my background as an artist, but if the winds are favorable, I’m willing to take risks now and then, and I’m willing to counsel my clients to do the same.

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When Is It Okay to Write a Bad Review of a Client?

If I had a dime for every time a client complained to me that a customer violated a contract, well thankfully I’d only have like 50 cents. But still, it does happen. And when it does the client sometimes asks me if it’s okay to write a bad review online. That’s when I hesitate.

Whenever possible, You should never badmouth a party in public at all… yes even one who acts in bad faith. But if you’re absolutely going to do it no matter what, you should definitely wait until you’ve recouped what you’re owed (or as much of it as you can) from them and acquired a written history of their bad faith actions. Even then I’m hesitant to advise it. I’m a big fan of killing them with kindness no matter how badly you’re treated, because if you’re ever involved in a litigation, all of your communications will come out in discovery; you don’t want a judge or jury thinking YOU’RE the asshole in this transaction.

Most people don’t write bad reviews when they’re in a good frame of mind. They’re upset - understandably so - but not necessarily thinking clearly about the long-term effects of their actions. So it’s really easy for a person who has been harmed and is mad about it to overstep and accidentally defame the offending party. And the last thing you want is to be sued for defamation when you’re the victim.

There’s a fine line between warning people of bad faith operators and defamation. Defamation is defined as a statement to at least one other party about a person designed to ruin that person’s reputation. Usually the statement must also be false, but that is not a requirement in every state. When the defamatory statement is spoken, it is called slander, when it is written or otherwise recorded, it is called libel, but no matter what form it takes, the effect is the same. 

Your intent in making the statement also matters, as well as the defamed party’s public status… if the party is a public figure (politician, celebrity, etc), for example, your statement must be made with malicious intent, while a statement against a private figure must only be made with negligence. It’s also worth noting that simple name-calling is generally not considered defamation and statements of opinion might also not be considered defamatory (depending on context, of course) since they are harder to prove.

Here are some examples:

“Don’t work with John Smith Productions. They purposely stole my idea and cut me out of the production without paying me!” This is most likely defamation if the statement is false because it asserts as fact that the production company stole your work (on purpose, no less).

“I think John Smith Productions used my copyright without asking me.” Because this is a statement of opinion, it is less likely to be considered defamatory, though it wouldn’t necessarily prevent the production company from suing you anyway, especially if the statement is untrue.

“John Smith Productions is filled with conniving thieves and John Smith is the worst of them all!” Whether or not this is factually true, because this statement is merely name calling and doesn’t allege actual wrongdoing, this would not be considered defamatory.

What I tell people who are determined to write a bad review online is this: divorce yourself as much as you can from emotion. Statements of fact that you can actually back up with evidence are best. And of course, make sure that whatever you say is TRUE. When in doubt, be kind and truthful. Just because you were treated badly doesn’t mean you have to become the bad guy too.

UPDATED! Defamation and The Donald: How To CYA When Standing Up To A World-Class Bully

There’s a difference between a dispassionate telling of the facts, and a heated accusation of wrongdoing. The more your remarks hew towards the latter, the more likely you veer into defamation territory, which robs you of the high road and puts you in danger of getting sued yourself. The last thing you want, as a victim of copyright infringement or breach of contract, is to defend yourself against a defamation claim. And the more prominent they are, the less likely they are to feel bad for suing you. After all, they have a bottom line to maintain, don’t they? 

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Paramount Releases Star Trek Fan Film Guidelines, Shows Other Studios How To Interact With Fans

Surely you’ve heard by now the story of the troubled fan film, Star Trek: Axanar. The film, which had earned over a million dollars from backers on Kickstarter and Indiegogo, was sued by Paramount for violating “innumerable copyrighted elements of Star Trek, including its settings, characters, species, and themes." While Star Trek fan films have been around forever (I was a Trekkie as a kid and remember seeing them a lot at meetings and conventions), Paramount was concerned about Axanar’s size and scale - high quality visual effects, name actors, feature-length runtime, etc. I guess they were concerned that a film of sufficient quality could impact not only the release of Star Trek Beyond, but its future slate of Trek films and spinoffs. 

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On Bill Watterson’s Refusal To License Calvin and Hobbes

When Calvin and Hobbes went out of print twenty years ago, I think most people assumed it would return at some point. I know I certainly did. Calvin and Hobbes was a formative part of my youth - the sly brilliant writing and stark black and white illustrations providing color to my sense of childhood wonder and adventure. Watterson had the innate ability to put on the page something that spoke directly to the brash creative misfit lurking deep inside of me (or maybe not so deep if my mother is to be believed), like he was illustrating the comic for an audience of one. With something so clearly loved by its creator and so personal, I just couldn’t envision a world where there would be no more new ones. And if Calvin and Hobbes had been created by anyone other than Bill Watterson, we probably wouldn’t have heard the last of it. 

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In Brief: Taylor Swift Kicks Apple In The Nuggets, Is Proclaimed Savior Of Music By All [UPDATED]

As everyone knows, Apple has a new Spotify/Tidal/Rdio/Pandora killer coming out this fall called Apple Music. In order to entice consumers, it will give everyone who signs up a free 3-month membership. But since Apple will receive no compensation in this time, neither will any of the artists featured on it. "That dog won't hunt," said Taylor Swift, probably.

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Protecting The Brand: Taylor Swift Seizes Control of Her Brand, Probably Won’t Suffer For It

Protecting The Brand: Taylor Swift Seizes Control of Her Brand, Probably Won’t Suffer For It

The past few months have seen a lot of really intriguing legal activity from Swift’s people. First she took her music down from Spotify (by far the most popular streaming music service), meaning the only way to get her new album 1989 is to pay for it directly. A few weeks ago she filed for trademark protection of the phrase “this sick beat” because apparently she thinks there’s a lot of money to be made from it. And just last month she started issuing takedown notices to fans who were selling knock-off Swift merch on Etsy.

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Protecting The Brand: Marvel Displays Goodwill and Badwill Over Its New Avengers Trailer

A few weeks ago, Marvel had a strategy to punch up ratings on its much-improved, but declining-in-popularity Agents of S.H.I.E.L.D. on ABC. To drive up viewership, it would unveil the new trailer for Joss Whedon's The Avengers: Age of Ultron, the colossal sequel to the already colossal Avengers.

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Protecting The Brand: Katherine Heigl Sues Duane Reade To Protect Her Publicity Rights

Katherine Heigl has never been a lovable celebrity. Throughout her career, she's bad-mouthed her projects and coworkers to such a degree that Hollywood and the public have largely turned on her. Some have even dubbed her "Hollywood's Most Hated Actress." Lately, it appears she's taken a page out of Sheryl Sandberg's playbook and is leaning in to that title; last week she sued NY-based drugstore chain Duane Reade for $6 million after they tweeted a picture of her leaving one of their stores after shopping there. If she wins, she plans to donate that money to charity... her own charity.

To be sure, this lawsuit isn't going to win her any fans. But then it's not really designed to; it's designed to protect her publicity rights. And using that as a guidepost, Ms. Heigl may actually have a point. Here's the tweet in question:

Heigl Tweet

Heigl's complaint alleges violations of the Lanham Act (the law governing trademarks) as well as New York Civil Rights Laws Sections 50 and 51 (which govern privacy). I'm not going to address the trademark issue here because she would have to prove that Duane Reade's use of her picture would likely confuse the public into assuming she was affiliated with Duane Reade. I just don't think the facts are compelling enough to make that claim (the average person will not conflate shopping at a store with endorsement of it). As I see it, this case is more likely to turn on the privacy issue anyhow.

Section 50 of the NY Civil Statutes says that:

A person, firm or corporation that uses for advertising purposes, or for the purposes of trade, the name, portrait or picture of any living person without having first obtained the written consent of such person, or if a minor of his or her parent or guardian, is guilty of a misdemeanor.

That kind of says it all, doesn't it? The image of a person (famous or not) cannot be used in advertising without their consent - which Ms. Heigl obviously did not give. In common law, this would be referred to as "appropriation of likeness" which is considered one of four privacy rights. So does the tweet count as advertising? Based on the nature of the tweet and the wording, I think a convincing argument can be made. After all, why would Duane Reade tweet that picture if there wasn't a business motive behind it? It's not like the picture was taken by an awe-struck fan... the picture was taken by a paparazzo which was then used by a corporation whose message on Twitter and Facebook was clearly that "Ms. Heigl is a patron of our stores."

Even still, this infraction seems relatively harmless... certainly not worthy of $6 million of Heigl's wrath. And it does raise some questions about the nature of publicity rights as used by celebrities. On the one hand, social media has made it difficult for people to know where the line is between advertising and simply pointing out "here's a celebrity!" While I think the tweet counts as advertising, I could be convinced otherwise with some clever lawyering. There are also First Amendment questions at stake - can a corporation never tweet a picture of a famous patron? Is such a tweet automatically advertising by its nature? And would banning those types of tweets violate the right to free speech? On the other hand, celebrities rely on their images to get work, and having that image appropriated for a use they never approved could result in a loss of work or even ruin business relationships (e.g. what if Ms. Heigl just worked out a deal to be a spokesperson for CVS? The tweet of her shopping at a competing drugstore could destroy that deal).

I know, I know. It's hard to care about how Duane Reade's tweet may negatively impact Ms. Heigl. That's the level of damage she's done to her personal brand. And this lawsuit, however justified, doesn't do anything to help her image. For her sake, I hope she realizes that legal protection of a brand is not the same thing as public protection. The former is fine, but if she wants to continue acting, it will be crucial for her to work on the latter.