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Tag Archives: copyright

shoes, status signals and property rights

A book that you write is your intellectual property. But what if you design the sole of a shoe?

As econlife described last year:

“The trademark of designer Christian Louboutin, his red soles are supposed to represent glamour, luxury and hidden status. Or, as stated by Mr. Louboutin, ‘A shoe has so much more to offer than just a walk.’

Agreeing, fashion house Yves Saint Laurent (YSL), designed its own line of luxury shoes with colored soles and wound up in a Manhattan courthouse. Louboutin claimed trademark infringement. Saying a red shoe sole is “ornamental and functional,” the court supported YSL.”

But now, most of the decision has been reversed.

A federal court of appeals has said that except for a monochromatic red shoe, Louboutin and only Louboutin has the right to a red sole. Saying that, “We hold that the lacquered red outsole, as applied to a shoe with an ‘upper’ of a different color, has ‘come to identify and distinguish’ the Louboutin brand and…qualifies for trademark protection.”

If your can call the sole your intellectual property, what about the shoe?

Probably not. Like jackets and pants and shirts, shoes are too utilitarian to be protected by intellectual property laws. We all have the right to copy their design. (Please see below for more on what is protected.)

A debate that we can trace back to Alexander Hamilton, James Madison and Thomas Jefferson, the question about whether and how long we can own what we create has been timeless. While patents, copyrights and trademarks can propel a market economy, sometimes they constrain progress.

For fashion, experts like Johanna Blakley believe a copycat culture is good.

Sources and Resources: You can see both sides of the fashion industry “copycat” debate at econlife, here and here and read more about both court cases here and here. In addition, I recommend this wonderful TED talk and a more serious econtalk interview from Johanna Blakley. For more on Christian Louboutin, this New Yorker article was an especially good read.

copyright protected and unprotected industries

Fashion and other industries without intellectual property protection from TED talk, Johanna Blakley

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Registered trademark in a red background

Combine either corned beef, pastrami, turkey or salami with 2 large latkes (potato pancakes) and you have a $24.95 lunch that Manhattan’s 2nd Avenue Deli calls its Instant Heart Attack Sandwich.

instant heart attack sandwich 2nd avenue deli

Because the Heart Attack Grill of Las Vegas threatened a trademark infringement suit, the Deli wanted to be sure it had a right to use cardiac themed names. The opinion from the US District Court was yes.  No one will confuse the Las Vegas triple bypass burger and fries made from lard with food from a kosher deli.

A trademark dispute is all about intellectual property rights. Think for a moment about Apple’s logo or the shape of a glass Coca-Cola bottle or the McDonald’s Golden Arches. All defined as trademarks, they are someone’s intellectual property because they identify the source of a product. In the 2nd Avenue Deli case, since there was no chance of confusion, a trademark was not violated.

In a market system trademarks, patents and copyrights are crucial sources of incentives that encourage innovation.

The result? The 2nd Avenue Deli is now innovating with its Triple Bypass, a 3-latke meat sandwich for $34.95.

You can read more about the lawsuit in this Reuters article while here is the actual decision and here is an econlife post on the red shoe sole trademark fight between YSL and Louboutin. Finally, here is a menu from the 2nd Avenue Deli.

 

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By Mira Korber, guest blogger.

You are a young musician on the brink of your professional career. Graduation is in May, orchestra auditions are around the corner, and where do you go to begin preparing? The IMSLP, of course.

The what? The “International Music Score Library Project” (IMSLP) is the largest, open source, wiki-style website to which anyone can upload public domain sheet music and recordings. It’s the easiest, fastest, and cheapest (free!) source of downloadable scores — and while originally little known, is now considered the ultimate online musician’s resource. With over 150,000 scores and 7,000 recordings, it’s easy to see why.

What’s the catch? IMSLP scores are in the public domain, therefore violate no copyright laws, but sometimes the site finds itself in a sticky intellectual property and publishing rights situation. With everything public — from uploading to managing the sheet music — the site is “crowd-sourced,” according to the founder, conservatory graduate and Harvard law student, Edward Guo.

But the site’s history reflects copyright struggles with music publishing companies, who say IMSLP damages their hard-copy music sales. This article (from 2007) describes the IMSLP battle with Universal Edition, which successfully demanded the site be taken down due to copyright infringements in Europe but not in Canada, Guo’s home country.

Eight months later, after volunteers perused all scores for copyright offense, the site was up and running again — until 2011, when the Music Publishers Association forced closure of IMSLP for one day. However, it is again accessible to all musicians seeking public domain scores; even professionals are using the site’s resources for their performances.

And in an age of struggling orchestras, free parts are certainly welcome.

The Economic Lesson

“There is no such thing as free lunch” (TINSTAAFL) refers to hidden costs associated with something that may appear “free,” just like the music on IMSLP. Anything, from downloadable sheet music to a relaxing park costs someone something. Therefore, when considering something that appears “free,” remember there is always an opportunity cost, or sacrifice, made to access it. Even though IMSLP provides resources for the social good, its founder may pay the price in legal copyright hassle, and music companies in sales they lose.

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This Supreme Court case could affect the music you hear at a concert, the book you can access on Google and the Picasso you might see online. The case is all about copyright protection.

The question: If a foreign movie, painting, song, or book is already in the public domain, then can it get copyright protection?

The answer: Hoping to comply with international law, the Congress said foreign work that was unprotected and in the public domain could be copyrighted.

The Response: Groups that depend on the public domain for their work believe that Congress’s decision is unconstitutional. Orchestra conductors, community theater groups, Google, video distributors, indeed a host of groups said the expense of using a copyrighted piece could prevent them from doing their jobs.

The Supreme Court just heard the oral arguments.

Here is a legal analysis of the case.

The Economic Lesson

2 parts of the Constitution directly relate:

  • Article 1 Section 8: “To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and discoveries.”
  • The First Amendment: Congress shall make no law …abridging the freedom of speech…

An Economic Question: How might property rights help and hinder innovation?

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When do we own what we create? It depends.

For Bruce Springsteen and Billy Joel, hit albums controlled by record companies might soon become theirs again. During the mid-1970s, the Congress decided that after 35 years, a musician could regain the copyright held by a record company by following a specified procedure. Called termination rights, the copyright switch can begin in 2013 for Billy Joel’s “52nd Street” and Bruce Springsteen’s “Darkness on the Edge of Town.” The NY Times provides a list of some of the performers who might benefit and also reminds us that record companies will probably contest the artists’ claims.

In this Econtalk discussion, you can decide whether you agree with an author who complains that his family cannot inherit an unending copyright for his work.

The Economic Lesson

Trademarks, copyrights and patents protect intellectual property. With Article 1, Section 8, Clause 8 saying, “To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries,” the US Constitution established the right to protect innovation.

Interestingly, although Hamilton and Jefferson did not entirely agree, both were involved with the first Patent Act in 1790.

An Economic Question: Being able to restrict use of someone’s ideas can hinder and fuel progress. Explain.

 

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