Intellectual property is a blanket term for multiple areas of law that govern the ownership and rights to "products of the mind." Many, but not all, intellectual property laws seek to encourage innovation and creativity, with an ultimate aim of promoting a general benefit to society. They typically do so by granting a bundle of rights to the originator of the work or creation. Intellectual property encompasses four areas of law, each of which governs creations of different types and promotes different policies:
Copyright:
Copyright law protects the fruits of creative efforts, called "original
works of authorship" in legal terminology. A copyright owner enjoys the
exclusive right to reproduce the work, distribute it, display or
perform it, and to create derivative works from it, as well as the
ability to transfer any or all of these rights. Copyright protection
generally lasts for seventy years beyond the death of the original
author. Copyright's purpose is to stimulate the production of creative works by giving authors a financial incentive to create
new works. Examples of copyrightable works include blog posts, photographs, videos,
podcasts, news articles, musical
compositions, and computer software. See the Copyright section in this guide for more information.
Trademark: Trademark law creates usage rights in words, phrases, symbols, and other indicators that identify the source or sponsorship of goods or services. The owner of a valid trademark can stop others from using its trademark or a similar mark in connection with similar goods and services. The owner of a famous trademark may also stop others from using it in connection with dissimilar goods or services. The main purpose of trademark law is to protect consumers from confusion about the source of a particular good or service, and a secondary purpose is to protect companies that have spent time, effort, and money to create a positive association between their trademarks and their goods and services. Examples of trademarks include the word "Cheerios" for breakfast cereal, the Apple logo for computers, and YouTube's slogan "Broadcast Yourself" for video-hosting services. Website domain names can also, in certain circumstances, be trademarks. See the Trademark section in this guide for more information.
Trade Secrets: Trade secrets law protects secret information that a company or other organization creates or compiles to give it an economic advantage over its competitors. A trade secret owner can stop others from acquiring its trade secret through improper means, such as theft, trespass, hacking, or breach of a confidentiality agreement, or from disclosing it to others under certain circumstances. Trade secrets law is aimed at encouraging research and innovation and maintaining high standards of commercial morality. Examples of trade secrets include the technical specs of an unreleased product, confidential customer lists, and manufacturing processes and formulas. See the Trade Secrets section in this guide for more information.
Patent: Patent law provides ownership rights and protection for unique processes, procedures, methods, inventions, and discoveries. It gives the patent owner the exclusive right to exploit (i.e. create, use, sell, distribute) the invention for a limited period of time (typically twenty years from the time of a patent application filing). Patent law's purpose is to spur innovation by giving inventors a financial incentive to invent. We do not cover patent law in this guide. For general information, see the U.S. Patent and Trademark Office's General Information Concerning Patents.
A basic understanding of copyright principles is essential for any blogger, researcher, reporter, photographer, or anyone who publishes their creative works. It’s important for two reasons. First, you should understand how you can properly make use of someone else’s work – quoting from it, reprinting it, summarizing it, even satirizing it. And second, you should understand how you can protect your own legal rights in what you create, so that others don’t take unfair (even unlawful) advantage of it.
Like any area of the law, copyright can get complex at its outer limits. However, a working knowledge of copyright law is not hard to acquire and will guide you through nearly all the situations you are likely to face in your day to day work.
What Copyright Covers
Let’s start with some of the building blocks. First, all copyright law is federal law and therefore uniform across the country (in theory). States have no role, because the Constitution gives Congress the sole "power . . . [t]o promote the Progress of Science and the useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries." Congress first exercised this power to establish copyrights (and patents) in its first meeting in 1791, and it has regularly revised and updated the law ever since. Though the last comprehensive copyright revision was enacted in 1976, Congress has passed many new copyright laws and amended others – sometimes after highly contentious lobbying and debate – in the digital era.
Second, copyright law covers an extraordinarily broad range of creative work. The law calls them "works of authorship" but copyright protects almost all creative work that can be written down or otherwise captured in a tangible medium:
For more information on works protected under copyright law, see the section in this guide on Copyrightable Subject Matter.
Copyright Ownership
Owning a copyright gives you the exclusive right to publish, copy or otherwise reproduce the work; to distribute the work publicly (or not so publicly); and to perform or display the work, if it is a work of performance or visual art. Owning a copyright also gives you the exclusive right to prepare "derivative works," which are the original works in new forms – for example, a translation into another language, or a movie made from a novel, or a revised or expanded edition of an existing work. Someone who does these things without your permission is infringing your copyright, and the law provides recourse to you. For more details on the exclusive rights granted to a copyright owner, see the section on Rights Granted Under Copyright.
Copyright is extraordinarily easy to acquire. In fact, you really need do nothing at all – the law provides that copyright springs to life and protects an author’s work from the time the work is “fixed in a tangible medium of expression…from which [it] can be perceived reproduced, or otherwise communicated . . . .” So when words are put on paper, or paint to canvas, or sights to a videotape, digital camera or cellphone, or even when any of the above are stored in a computer’s memory – they’re copyrighted. That’s it. They don’t have to be published. There is no requirement to put a copyright notice on it (though that is often helpful). There is no requirement that it be registered with the Copyright Office in the Library of Congress, although commercial publishers routinely do that, to show up in the database of copyrighted works; registration can also grant you certain additional rights. If you are interested in registering your work with the Copyright Office, consult the section on Copyright Registration and Notice.
The law requires only that copyrightable works of authorship be "original" – but that is an easy hurdle to clear. Unlike the patent laws, there is no requirement that a work be innovative, meritorious, or even particularly bright or interesting. A work of authorship just can't be a copy of anyone else's work, and it must have some modest degree of creativity to it. In 1991, the Supreme Court ruled that an ordinary white-pages telephone book was not sufficiently creative to be copyrighted, but that gives you an idea of how low the barrier is. Any "work of authorship" that you create in the honest application of your own skills will likely be sufficiently "original" to be protected by copyright.
So what is the catch? None, really, but there are two cardinal principles of copyright that – fortunately – limit its reach. First, copyright protects the form in which ideas are expressed (the essay, the novel, the news story in the paper or on the blog) but it does not protect the ideas themselves. Nobody owns ideas. You might write the most insightful, original, and brilliant blog post on how to achieve peace in the Middle East or reduce carbon emissions, but from the moment you publish the post anyone may seize upon that idea to expand upon it, analyze it, criticize it, or discuss it in any way they like. What they can’t do is reprint your expression of the idea, without your permission. (And, at least in academia and among reputable publications, they ought not to present the idea as their own, or even to discuss it without first acknowledging that it is your idea. However, because copyright does not protect ideas, the law does not punish plagiarism of ideas. For more information on the distinction, refer to the section on Copyright Infringement.)
Second, copyright does not protect facts. No matter how long and hard you work to uncover and report facts, no matter how significant the impact of your reporting, you don’t own those facts. Anyone can repeat them, so long as they do not copy your story itself. By the same token, of course, you can appropriate facts that someone else has reported, without copyright concerns. (You ordinarily have an ethical obligation to credit the source of your facts, but it’s not a copyright obligation.) For more information on the types of works not covered by copyright, consult the section on Works Not Covered by Copyright.
As these principles suggest, copyright in its classic formulation is an effort to balance two often-conflicting goals. We want to encourage people to report the news, create art, publish works of history and science, and generally advance knowledge. The law provides the creators the exclusive ownership of their works for a limited time so that they can make money from them. On the other hand, we want to encourage a free flow of ideas, discussion, and intellectual synergy. Facts and ideas are put into the public domain at the moment of birth. In the words of Oliver Wendell Holmes, "the best test of truth is the power of the thought to get itself accepted in the competition of the market…. That at any rate is the theory of our Constitution." Abrams v. U.S., 250 U.S. 616, 630 (1919) (Holmes, J., dissenting).
Using the Work of Others and Licensing Your Work
This effort to achieve balance naturally produces conflict. How can you challenge a blog post proposing a new way to reduce carbon emissions unless you can quote from the copyrighted post itself? Requiring you to get the original author’s permission would certainly inhibit the free flow of ideas and would come very close to giving that author control over the idea. To ease this conflict, the law recognizes a principle known as "fair use," which is simply the freedom to use another’s copyrighted work in the course of creating your own copyrighted work.
There have always been unspecific but sensible limits to this principle – you generally can't, for example, “quote” another’s work by reprinting it in its entirety, even if you threw in a few new words of your own (on the other hand, if the original work was only a few paragraphs long, you might even be able to do that in some circumstances). Generally, courts recognize that if the borrowing is not excessive, that if it advances the creation of a new work, and if it does not undercut the market for the original work, the use is fair. The section on Fair Use in this guide provides more information on the fair use doctrine.
In the digital era, "fair use" has become a battleground. No one challenges the original principles, but instant reproduction and worldwide distribution of any digital work is within everyone’s reach. Some creators of copyrighted works – record labels and movie distributors most prominently – have imposed electronic lockdowns, known as digital rights management, on their works. This has led some to claim that these lockdowns extinguish their fair use rights.
There is another aspect to this political battle. The Constitution authorizes Congress to protect writings and discoveries for "limited times." In the 19th century, a "limited time" meant no more than 28 years after publication. For most of the 20th century, it meant up to 56 years. But since 1998, it has meant for the life of the author and for an additional 70 years. So, if a 25-year old author creates a work in 2008 and lives another 60 years, that work is protected by copyright until 2138, an extraordinary 130 years. By that measure, most of the works of Henry James and Mark Twain would still be copyrighted today. Many critics of the current copyright structure point to this lengthy protection as an unwarranted distortion of “limited time,” but the Supreme Court upheld the law in 2003. (As a rule of thumb, any work published before 1923 is probably now in the public domain; any work published since then probably is not, but there are exceptions to both those guidelines.)
Because a copyright is intangible property (hence, "intellectual property," a field that also includes patents, trademarks, trade secrets, and now URLs and domain names), it can be bought, sold, given away, bequeathed at death, and licensed to others. Indeed, licensing is an active field in copyright law. An author’s contract with a publisher is a license; while the author may retain the copyright, the publisher shares the revenue and edits, prints, and distributes the work. Works may also be sold outright, as newspapers often require freelancers to do. Ownership may also vest in the employer from the outset, if creating copyrighted works is part of one’s employment. For more information, visit the sections on Licensing Your Content and Getting Permission to Use the Work of Others to use someone else's work.
There are other aspects to copyright law that can be useful to know. For example, works of the US Government are never copyrighted and hence can be reproduced without payment or permission. Copyrighted works such as music, movies, and drama may be performed or displayed (but not copied) without permission in the course of face-to-face teaching and distance learning in schools and universities. A library user is generally entitled to make a single copy of a copyrighted work for private study and scholarship.
In the sections that follow, we lay out further specifics about the principles described above. This guide is not a full treatise on copyright law, but it does provide what we hope is a good understanding of what you need to know, both to make intelligent use of others’ creative works and to protect your own.
Copyright law applies to any original works of authorship that are fixed in a tangible medium of expression, and gives copyright owners certain rights to control the use and distribution of their work. The following two sections explain the two concepts in more detail:
If you are interested in information on who can own a copyright and how to use the copyrighted work of others, see the sections on Copyright Ownership and Using the Work of Others for discussion of these topics.
Copyright protection automatically applies to "original works of
authorship" that are "fixed in a tangible medium of expression." The
definition is less complicated than it sounds. If you create a blog
post, podcast, or article, your work is covered by copyright the
instant it is created in a tangible form, such as on paper, in a blog
post, email, or video. You do not need to do anything more, such as
signing or filing any papers or provide specific notice to the world
that the work is covered by copyright. (You may however wish to provide
copyright notice and register your copyright; see the section on Copyright Registration and Notice
for more information.) Assuming it meets the requirements for
protection, a work is automatically copyrighted in the U.S. and in over
160 other countries from the moment of its creation.
Original Works of Authorship
The level of creativity required for a work to be "original" is extremely low. A work satisfies this requirement as long as it possesses some creative spark, "no matter how crude, humble or obvious it might be." Feist Publ'ns, Inc. v. Rural Telephone Service Co., Inc., 499 U.S. 340, 345 (1991) (internal citations omitted). A work that originates from the author and contains any level of creative expression will satisfy the originality requirement. In the Feist case, the Supreme Court held that listing names alphabetically in a phone book is not creative; almost anything more creative than that probably qualifies.
Sometimes, a creative work will have both original and
unoriginal elements. In that case, the owner of the copyright to the
work may assert rights over the original elements, but not the
unoriginal elements. For example, a hip-hop music publisher recently
sued the famous rapper, 50 Cent, claiming that his popular song, "In Da
Club," infringed the publisher's copyright in a song called "It's Your
Birthday" (written by another hip-hop artist named Luther Campbell). Lil' Joe Wein Music, Inc. v. Jackson,
No. 06-16342 (11th Cir. 2007). The lyrics to "It's Your Birthday"
include the phrase "Go [name], it's your birthday" with various proper
names used in succession. 50 Cent's "In Da Club" also includes a
section where he sings "Go Shorty, it's your birthday." The court found
that the phrase "Go [name], it's your birthday" in Campbell's "It's
Your Birthday" was not original -- the evidence showed that Campbell
borrowed this phrase from chants popular at hip-hop nightclubs in the
early 90s. Although the rest of Campbell's "It's Your Birthday" was
protected original expression, the music publisher could not hold 50
Cent liable for infringement because he had only used the "birthday"
phrase, which was not original to Campbell.
Fixation in a Tangible Medium
A copyrightable work is considered "fixed in a tangible medium" if it can be perceived, reproduced, or otherwise communicated for more than a transitory period. This includes any electronically readable formats (e.g., a blog post, email, or even storage in computer memory), audio recordings, and video. It does not matter whether the work has been "published" (i.e., made available to the world), as copyright protection is available to both published and unpublished works, so long as it is otherwise fixed in a tangible medium.
Some examples include:
This list is not exclusive. Copyright protection can apply to any work fixed in any tangible medium of expression, whether this medium is currently known about or is yet to be developed, so long as the work can be perceived, reproduced, or otherwise communicated, either directly or with the aid of a machine or device. See 17 U.S.C. Sec. 102.
Some works cannot be copyrighted; visit the section on Works Not Covered By Copyright for more information.
Copyright law grants you several exclusive rights to control the use and distribution of your copyrighted work. The rights include the exclusive power to:
See Section 106 of the Copyright Act.
As a copyright owner, you can transfer each of these rights to others, either individually (e.g., just the reproduction right or just the display right) or as a group (all of the rights listed above). Additionally, although the exclusive rights are broad, copyright law does not give you an attribution right (i.e., the right to require that your name be associated with the work). Thus, if you decide to transfer or license any or all six of the rights listed above and wish to have your name be associated with the work, make sure to provide for attribution through the contract or license. For information on how to transfer or license rights under copyright, visit the Copyright Licenses and Transfers section of this guide. Note that if you are a minor, although you retain ownership over your own copyrightable work, state laws may restrict your ability to conduct business transactions, such as licensing and transfer.
If someone else performs an action that violates one of these exclusive rights without your permission, you can sue that person or entity in federal court for copyright infringement. Bear in mind that certain prerequisites apply before you can file suit-- consult the Copyright Registration and Notice section of this guide for details.
You can exercise these six rights for the duration of the copyright term. For works created on or after January 1, 1978, this term will vary depending on who is the rightful copyright owner:
Because copyright rules changed significantly in 1978, the copyright terms for works created prior to 1978 follow different rules. For an explanation of the rules relating to copyright term for works created prior to 1978, see the U.S. Copyright Office's official website. You can also find more information on when works fall into the public domain in the Works Not Covered By Copyright section of this Guide.
Copyright ownership encompasses several important concepts beyond the simple question of who initially created the work at issue. As discussed below, the person who creates a work is not necessarily the copyright owner. Many mistakenly believe that the creator of a work automatically holds the copyright. While this is often the case, exceptions do occur when an employee creates a work in the course of his or her employment, or if an independent contractor creates a work "made for hire." Moreover, if more than one "creator" is involved, the copyright might be shared. Further complicating the picture, the original creator(s) may have transferred their copyright to another person or entity.
The following sections touch on each of these issues, as well as the advantages that come from registering a copyrighted work and providing copyright notice:
Copyright protection begins when an original work becomes fixed in a tangible medium of expression. (For more information on when a work is "fixed" and what qualifies for protection, see Copyrightable Subject Matter). As a general rule, the creator of the work (the author) owns the copyright.
You are the author of a work if you create something original, as opposed to merely copying the work of another. For instance, you are the author of a blog post when you put the story/idea/information into "expression" through words. In contrast, merely coming up with an idea does not make you the author because nothing has actually been expressed.
As the sole owner of a copyrighted work, you enjoy certain exclusive rights. However, if you collaborate with other authors to produce a final work, or if you allow another person to use copyrighted work in a collection of works, copyright law treats you differently.
When two or more authors materially contribute to a work, and each does so with the intent of creating a single work, the work is "jointly authored."
A "material contribution" must be independently copyrightable (i.e., original, fixed in a tangible medium of expression, not non-copyrightable material like facts or ideas). If you only contribute non-copyrightable elements, such as ideas and suggestions, then you're not an author.
For example, if a friend suggests a topic that you subsequently blog about, you alone own the copyright on the posting because your friend contributed nothing but non-copyrightable material (the idea).
As another example, let's say you work with a group of journalists and someone routinely edits your work. If the editor is only fixing facts or making minor grammatical changes, you are still the sole owner of the copyright. However, if the editor's changes are more substantial, such that he is contributing original content or points of view, the work might be jointly authored.
Finally, consider multiple individuals contributing to the creation of a website. One person does page layout, another handles graphics, and a third develops the underlying code. Copyright ownership will vest jointly in all of these contributors.
Your Legal Rights As a Joint Author
If you are a joint author, you hold an equal interest in the copyright with the other authors regardless of your actual contribution to the work.
Technically speaking, you hold an undivided ownership share in the copyright. An undivided ownership share provides nearly all the rights of individual ownership, while also sharing the value of those rights. As a joint author, you retain the right to reproduce the work, create derivative works, distribute copies of the work, and publicly display or perform the work without getting the permission of the other joint authors. Of course, this goes both ways, and the other joint authors may do the same. You can also transfer your undivided ownership share without seeking approval.
As a joint author, you cannot grant an exclusive license. Granting an exclusive license would directly harm the other joint authors, and thus you need their approval. See the section on Copyright Licenses and Transfers for more on the difference between exclusive and non-exclusive licenses.) However, you may grant non-exclusive licenses without approval from the other authors, which can lead to situations in which each author licenses the work to a different publisher.
Finally, as a joint author you share in the value created through performance, distribution, or licensing of the work. Because each joint author only has a share in the copyright, any value must be distributed equally to all joint authors.
What to Consider if You are Working with Other Authors
You don't have to be restricted by the rules of joint authorship detailed above. Instead, you and your co-authors can enter into a collaboration agreement (a contract) to alter your rights and obligations. A collaboration agreement defines the responsibilities, compensation, and control of each author. Collaboration agreements may also designate how credit will be presented (e.g. the list of authors) and may outline the approval process to license or transfer an author's rights. As an example of a collaborative agreement, see Hollywood Comics' template.
A collective work consists of smaller works that are independently copyright-protected. Whereas a work of joint authorship is a single copyrightable work with contributions that were not intended to stand alone, a collective work compiles constituent parts that do (and often were originally intended to) stand alone.
The person who assembles the collective work (the "collective author") owns the copyright to the selection and arrangement, but the owners of the copyrights to the underlying works retain their rights. See 17 U.S.C. 201(c), 17 U.S.C. 103(b).
Copyright law gives the collective author the right to reuse the underlying works in a subsequent publication if that subsequent publication is:
See 17 U.S.C. 201(c). If the collective author wants to include the underlying works in a different manner than the above three categories, she needs to get express permission from each copyright owner.
Some common examples of collective works are poetry anthologies, newspapers, magazines, and scholarly journals. In general, each discrete edition of the newspaper, magazine, or journal is a collective work made up of individual articles, some of which are written by freelancers. (For a discussion on the difference between the work created by a freelancer--or independent contractor--and an employee, see the section on Works Owned by Someone Else.) The freelancer owns the copyright to his individual contribution, and the publisher owns the copyright to the collective edition of the newspaper.
Generally, a publisher can reprint an article from one issue in a later issue of its newspaper or magazine ("a later collective work in the same series"). However, when publishers publish in new media, the legal issues get more complex. In one case, the New York Times digitized articles from its print edition, put them in a database, and made them individually available online. The Supreme Court held that because the online version of the articles were viewable individually, they violated the freelance writers' copyrights because they were were "disconnected from their original context" and did not replicate the original selection and arrangement. See New York Times Co. v. Tasini, 533 U.S. 483 (2001). On the other hand, the Court suggested that preserving the collective work through microfilm would be a permitted revision because the microfilm maintains the original organization, layout, and context of the collective work. Thus, a magazine publisher can distribute digital scans of their print magazines, since the resultant work uses the "almost identical 'selection, coordination, and arrangement' of the underlying works as used in the original collective works." See Faulkner v. National Geographic Enters., 409 F.3d 26, 38 (2nd Cir. 2005).
While most cases involve a collective work transitioning from print to digital publication, there is no reason to believe the same would not hold true in the opposite direction. Thus, if you created a web page of the most influential blog posts from 2001-2005, getting permission from each original poster to do so, you would need to retain the selection, coordination, and arrangement in order to also distribute a print version.
What This Means For You
When you allow someone else to use your work in their collective work, you are not giving the collective author the rights to do whatever she wants. If you are compiling a collective work, the permission an author gives you to use a work in your collective does not give you free reign to use that work as you please. You should pay particular attention to these points if you are publishing or distributing in multiple mediums. If you have a particular concern about how, where, and when works may be used, be proactive and ensure those details are finalized in a written contract. See the sections on Copyright Licenses and Transfers and Getting Permission to Use the Work of Others for more information.
In general, if you create a work, you are the copyright owner of the work. However, if you create a work for hire, copyright law recognizes the person who hires you as the owner of the work. Your work may be a work for hire if you create it as an employee or as an independent contractor (a freelancer). However, if you are an independent contractor, the law makes it harder for the hiring party to obtain the copyright ownership of your work. While we discuss the work for hire doctrine below, you may wish to also consult Keep Your Copyright's excellent resource on Works for Hire for more information.
Employee
Your work falls under the work for hire exception if you create it in a conventional employment setting. For example, if you write blog posts as part of your job responsibilities, your employer owns the copyright to those posts.
However, determining whether an employee creates a work in the
scope of employment is not always so straightforward. For example, if
you write a screenplay during your lunchtime, you own the copyright to
the screenplay. As another example, a university professors, despite
being an employee of the university, owns the copyright to her
textbooks, scholarly articles, and blog posts. (See Columbia
University's copyright policy and Trinity University's copyright policy as examples of how educational institutes are following this practice.)
Independent Contractor
Your work may also fall under the work for hire exception when you create it as a freelancer, if:
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The person who hired you as an independent contractor owns the copyright to the work only if these two conditions are met. Otherwise, copyright ownership remains with you. Therefore, as a freelancer, you own the copyright to your work unless you sign a contract explicitly designating it as a work for hire. This gives freelancers a considerable amount of bargaining power in negotiating the terms for a commissioned work.
Issues to Consider
The work for hire area is complex. Whether someone is an employee or independent contractor often turns on specific factual circumstances, and includes a discussion on factors outlined in the business section on Employee Versus Independent Contractor. Additionally, whether a work fits into one of the above nine categories hinges on sometimes difficult distinctions. You should safeguard against any future misunderstandings by being clear about your relationship in writing.
For example, if you're contemplating a situation in which the person hiring you will own the copyright to your work (which falls into one of the nine categories), not only should you add express language about the work being "made for hire", but you should also consider bargaining for additional compensation due to giving up your copyright ownership.
On the flip side, if you are commissioning someone to make a work "made for hire," make sure that the work fits into one of the nine categories listed above. If the work clearly does not fit into one of those categories, consider having the freelancer assign the copyright to the work to you as part of the agreement, or adjust the payment to reflect your lack of copyright ownership.
You may want to consult a lawyer before entering into an relationship where you will be creating works for someone else or hiring someone to create work for you. Refer to the section on finding legal help to explore your choices.
Although you do not need to use a copyright notice or register your work in order to hold a copyright in the work, notice and registration give you a number of benefits, which we discuss below. (For more information on the basic requirements of copyright ownership, see the section on Copyright Ownership in this guide.)
By putting a copyright notice on your work, you inform the public that your work is protected by copyright. Notice allows someone to contact you for permission to use your work. Notice also limits the ability of someone who infringes your work to claim they didn't know of the copyright's existence.
A copyright notice of must be affixed (or must exist in a place) so that it “give[s] reasonable notice of the claim of copyright.” A notice of copyright typically includes the copyright symbol, ©, the year of first publication, and the name of the owner of the copyright. For example, © 2008 Berkman Center for Internet & Society.
The copyright symbol may be replaced by the word “Copyright” or the abbreviation “Copr.” For example, Copyright 2008 Citizen Media Law Project and respective authors.
You do not need to register your work before putting notice on it. Note that if your work is a sound recording embodied in "phonorecords", you will need to complete a separate form for copyright notice.
Copyright registration is not a prerequisite to copyright protection. However, registering a copyright in your work with the U.S. Copyright Office provides the following advantages:
For more on why you might want to register your works, please see Sarah Bird's excellent post, Why You Should Go Through the Trouble of Registering Your Copyright When Everyone Tells You That Your Work Is Protected Automatically.
Bear in mind that when you register a work, the Copyright Office does not validate the accuracy of your copyright claim. Also, registration (and copyright law in general) does not protect against similar, independently created works. A person can create a work that is substantially similar to yours without legal ramifications, so long as that person created the work without any reliance on your work (i.e., never read, saw, heard about it, etc.).
Registering Online WorksOnline works (including web pages) provide a unique challenge for those wishing to register their work. Online works are typically updated frequently, with content changing regularly. Unfortunately, under copyright law, each substantially updated version (or, in legal terminology, derivative work) must be registered separately. For more details on the registration of online works, see the U.S. Copyright Office's Circular #66: Copyright Registration for Online Works.
The U.S. Copyright office does, in some instances, provide the ability to register copyrights in a group (i.e., a single registration covering multiple versions). Specifically, you can register an automated database, a serial (published weekly or less often), and a newsletter (published more often than weekly) to get protection for multiple versions. Some web sites have registered under these classifications, but it remains to be seen if/how the contents will be protected. For more details on these alternative types of registration, see the U.S. Copyright Office's Circular #62: Copyright Registration for Serials and Circular #62a: Group Registration of Newspapers and Newsletters on Form G/DN.
How to RegisterThe process of registering a copyright with the U.S. Copyright Office is relatively straightforward. Sarah Bird at Seomoz.org has a fantastic resource on Sample Forms and Strategies for Registering your Online Content.
There are four basic steps to the registration process:
1. Determine which form to use and fill it outNote: For compilations, use the form that best fits the majority of the work.
2: Determine how many copies are needed
As part of the Copyright Office's new "Electronic Copyright Office" ("eCO") system, certain works can now be uploaded instead of physically mailed when registered online. For more on this process, visit the eCO page.
Note: copies are non-returnable.
3. Pay the fee
4. Mail the package
The mailing address is:
Library of Congress Copyright Office
101 Independence Avenue, S.E.
Washington, D.C. 20559-6000
A broad array of creative, expressive media are subject to copyright protection, including literature, photographs, music compositions and recordings, films, paintings and sculptures, and news articles – any “original work of authorship fixed in any tangible medium of expression.” 17 U.S.C. § 102. For more information on copyright creation and ownership see the Copyright Ownership section of this legal guide.
If you are the copyright owner of a work (and you likely will be if you created the work), such as an article, a blog post, a photograph, or a video, you can authorize others to use it. You can do this by transferring to the person or entity that wants to use your work any or all of your rights as a copyright owner, or any subdivision of those rights. Alternatively, you can license any or all of those rights (or any subdivision of them) to that person or entity.
As the person granting the transfer or license, you have a
great deal of freedom in how to structure the transaction. How you
choose to do so can have a substantial impact on your ability to make
money from the work, the amount of control you retain over it, and the
costs associated with the transaction. Often, it will make sense to
hire a lawyer in order to deal with such a transaction because of the
complexity of the subject-matter, the potential flexibility of the
transaction, and the potentially high stakes. On the other hand, there
are three models or approaches that generally do not require the
assistance of a lawyer: an "all rights reserved" approach, using a
Creative Commons license, and a dedication to the public domain.
Whether one of these three approaches or some other approach is best
for you is a matter of personal preference. In the discussion that
follows, we go into more detail to give a sense of the issues involved
and to explain how you can effectively transfer or licensing your work.
The decision about whether and how to license or transfer your work
will depend on your own personal preference. There are a number of
factors that you may want to consider in reaching your decision,
including the potential for making money from the work, the extent of
control retained over the work, the costs involved in the
licensing/transfer transaction, and the permanence of the measure.
These and other issues are addressed below.
One obvious benefit to licensing/transfer is that people or businesses may be willing to pay you for use of your work. In some instances, this payment can be a significant source of income and may help support your project or website as well. In the How to Effectively Transfer or License Your Work section, we discuss three models for licensing/transferring your content: an "all rights reserved" model, using a Creative Commons (CC) license, and dedicating your work to the public domain. The most direct way of seeking revenue from exploitation of a work is to reserve all rights with respect to the public at large and then to pursue selective licensing or transfer deals in exchange for money. This is because granting a CC license to the public does not involve payment in return, although it does not rule out granting other licenses in exchange for money, and a public domain dedication obviously gives up all your rights to exploit the work. In contrast, if you are interested in contributing to, or gaining extra exposure in, an artistic, intellectual, business, or other community (perhaps with indirect financial benefits), a CC license or public domain dedication might be more appropriate.
One thing to keep in mind is that a full transfer of your rights will probably fetch more money in the short term than a non-exclusive license, but this comes with a corresponding sacrifice in terms of control of the work and personal exploitation.
Another thing to consider is whether your goals in relation to your work may change over time. Your aim now might be to gain exposure, but you might wish to commercialize your work down the line. Granting broad permission for others to freely use your work (through a CC license or similar) now may curtail your ability to commercialize the same work in the future.
Retaining control of your workRetaining control of your work is another significant issue. The important thing to remember in this regard is that you are not presented with an "all or nothing" scenario. You have significant freedom in how you structure your transfer or license, and the amount of control you retain is largely up to you. For details, please see the Which Rights Can Be Transferred or Licensed section.
For those seeking more control, an "all rights reserved" model combined with selective licensing transactions may be the best route, but this may necessitate the help of a lawyer specializing in intellectual property licensing. A CC license offers slightly less control (because the license is given to the public at large and generally allows sub-licensing on the same terms), but it is much lower cost because the entire process is automated on the CC website. That said, you still retain significant control with a CC license. For instance, you can grant the public a license to copy and distribute your work, but bar them from making derivative works (adaptations) of it or using it for commercial purposes. For more on what constitutes a "commercial use" and a "non commercial use," please see CC's Discussion Draft Noncommercial Guidelines.
Are there any costs involved?Different costs are involved based on which approach you take. For instance, granting a CC license to the public is free, but you will not make money directly from the license. Because a CC license is non-exclusive, you can still enter into one-on-one transactions for money, but these are more complex and likely require the assistance of a lawyer, which is expensive. Registering the transfer with the Copyright Office, an optional step which some copyright transferors take to protect their interests, also carries a fee (see Copyright Office Fees). Likewise, reserving your rights with regard to the public at large and transferring or licensing your rights in one-on-one transactions for money is likely to be expensive for the same reasons. You can dedicate your work to the public domain at no cost, but by doing so you give up all control and prospect of future remuneration.
If I transfer or license my work, is this permanent?Not necessarily. The length of time that a grant lasts will depend on the transfer or license arrangement you enter into. For instance, you can grant a transfer or license your rights in relation to your work for a specified duration of time (see the Which Rights Can Be Transferred or Licensed section). If you do not specify an end date in the executing document, or even if you if specify that the transfer or license is permanent and irrevocable, under the Copyright Act the grant is generally terminable by your (or your successors) within a five year window starting 35 years after the execution of a grant (see the Terminating a Transfer or License section).
It is also worth noting that if you grant a non-exclusive license to a person, and do not receive "consideration" (payment or some other kind of benefit in exchange for the grant) from them, this license is revocable (see the How to Effectively Transfer or License Your Work section).
How this all works with a CC license is not 100% clear. All varieties of CC license have a clause saying that the license grant is non-revocable. According to the CC FAQ:
This means that you cannot stop someone, who has obtained your work under a Creative Commons license, from using the work according to that license. You can stop distributing your work under a Creative Commons license at any time you wish; but this will not withdraw any copies of your work that already exist under a Creative Commons license from circulation, be they verbatim copies, copies included in collective works and/or adaptations of your work.
It is not entirely clear whether the contractual language purporting to make the license non-revocable would stand up to a legal challenge based on the automatic termination right granted by the U.S. copyright law or the argument that a CC license is a non-exclusive license made without consideration. In any event, it is probably safest to assume that a CC license is permanent, so you should think very carefully about whether or not you are happy with the public making use of your work in the way described in the license.
If I license or transfer my work, does it affect what I can do with the work?It depends. If you transfer all or one of your rights to someone else, then you may no longer exercise those rights. If you grant an exclusive license to someone with regard to a particular right or group of rights, then you are similarly prohibited from exercising those rights. But if you grant a non-exclusive license to someone else to exercise a right or group of your rights, then you are free to continue exercising the right or group of rights and authorizing others to do so. A CC license is a non-exclusive license, so granting the public a CC license does not affect your ability to use your work. For more information on what constitutes a "transfer," an "exclusive license," and a "non-exclusive license," please see the Understanding the Difference Between a Transfer and a License section.
Can others use my copyrighted work without being granted a license or transfer?Yes. United States copyright law allows others to make "fair use" of your work without permission. Under the fair use doctrine, third parties are permitted to use your copyrighted work without your permission for limited and "transformative" uses, including criticism, commentary, news reporting, parody, and teaching. For example, if a blogger quotes a paragraph from an article or post on your website and compares your opinion with that of other commentators, this is likely permitted by the fair use doctrine without a license. Nevertheless, fair use is a notoriously fact-sensitive defense to a copyright claim, and it is difficult to determine beforehand whether a particular use is a fair use. See the Fair Use section for more details. For this reason, many people may prefer to seek out a license before engaging in a use that might be a "borderline" fair use. When you grant someone permission to use your work via transfer or licensing, the idea is that you are permitting them to engage in a use that would not be "fair" under the law.
A transfer of copyright is a conveyance of ownership, much like the sale of personal property. When you transfer your entire interest in a copyrighted work, or one or more of your exclusive rights under copyright, you give up all claim to the right(s) you convey (except as explained in the Termination of a Transfer or a License section). The recipient of the transfered right(s) may:
A license is a grant of permission to exercise your rights under copyright. In copyright terminology, there are "non-exclusive" and "exclusive" licenses. When you give someone a non-exclusive license, you give the licensee permission to exercise the right in question, but you also reserve the right to continue exercising it yourself and to authorize others to do so. When you give someone an exclusive license, you promise that the licensee and only the licensee may exercise the right. This means that when you grant an exclusive license, even you may not exercise the granted right, nor may you authorize anyone else to do so.
Copyright law treats an exclusive license like a transfer. Therefore, the recipient of an exclusive license to a right or right(s) may:
The recipient of a non-exclusive license may exercise the right or rights licensed, but MAY NOT:
If you are the copyright owner of a work, you can transfer, or license others to exercise, some or all of the rights listed in Section 106 of the Copyright Act. These include:
For instance, say that you've uploaded an e-book that you have written to your website in PDF format. You could grant a user of your website permission to download and make copies of this book, but prohibit him or her from distributing your e-book to other people.
You can further limit the rights granted based on type of media, geographical effect, and time (among other possible criteria). Three illustrative examples follow.
The particular examples given above are not important, nor necessarily representative of all the possibilities. The point is that you have many options in how you choose to define the rights that you transfer or license. Because of this flexibility, crafting a license can be complex and may require the assistance of a lawyer to draft terms that reflect your specific preferences as to how other people use your work. On the other hand, a Creative Commons license gives you a great deal of flexibility in terms of choosing which rights to grant others and which to withhold, without the complexity of drafting your own agreement or the expense of hiring a lawyer.
Note: You can transfer (or grant an exclusive license to) all of the Section 106 rights together. By doing this, you transfer ownership of the "copyright" itself -- i.e., all rights in the work, except for the right of termination.
Below are three models or approaches to transferring or licensing your work that are relatively straightforward and therefore can be accomplished without the assistance of a lawyer. One caveat is that the first approach, the "all rights reserved" model, could be used in conjunction with sophisticated transfer/licensing transactions on a case-by-case basis, in which case the assistance of a lawyer would be more indispensable.
You might decide that, although you want to display your work online and/or distribute it to your users, you do not want to grant to those users any rights beyond those necessary for their personal consumption of your work. In that case, you could adopt the "all rights reserved" model. This approach is not really a transfer or a license -- rather it is an effort to limit the scope of the implied license you give to your users when you post and/or distribute your work.
All you need to do is affix the standard copyright notice to each page of your website (and/or to any other materials you distribute) and add a short statement indicating that you intend to reserve all your rights. For instance, you may affix to each page of your website the following statement: "Copyright © [Year], [your name or name of applicable entity], all rights reserved." If you are distributing a podcast, you might want to include a short statement at the beginning of the podcast indicating that you "reserve all rights" in it. As a general matter, you may want to alter the rights reservation statement on your site to indicate that you are reserving rights only in the content specifically created by you.
Displaying an "all rights reserved" notice will not prevent fair use of your work.
Note: the concept of an "all rights reserved" model is adapted from the Podcasting Legal Guide © 2006 Colette Vogele of Vogele & Associates, Mia Garlick of Creative Commons and the Berkman Center Clinical Program in Cyberlaw. This Guide was produced as part of the Non-Residential Fellowship Program of the Center for Internet & Society at Stanford Law School.
Creative Commons licenses give you the ability to allow some reuse and redistribution of your work by others without giving up all control. They are licenses that you grant to the public at large at no cost, and they specify to what uses the public may put your work. There are six main types of Creative Commons licenses to choose from, and they vary based on several factors, such as whether the licensee (the person to whom you give the license) can create derivative works (i.e., alter, remix, or build upon your work) and whether commercial redistribution of the work or its derivatives is permissible. They all require attribution - that is, the licensee must credit you as the author in the way you designate.
Note: the most recent 3.0 versions of these licenses are not specific about the form of attribution. As a matter of best practices, you may want to require that the attribution include the name of your site and/or organization and a link back to your site.
The process of choosing the license that fits your needs is automated on the CC website. Once you choose a CC license, applying it to your online work is simple. According to the CC FAQ:
Once you have selected your license, and if you are applying it to an online work, follow the instructions to include the html code in your work. This code will automatically generate the "Some Rights Reserved" button and a statement that your work is licensed under a Creative Commons license, or a "No Rights Reserved" button if you choose to dedicate your work to the public domain. The button is designed to act as a notice to people who come in contact with your work that your work is licensed under the applicable Creative Commons license. The html code will also be include the metadata that enables your work to found via Creative Commons-enabled search engines.
For an example of how this works, the Citizen Media Law Project (CMLP) has licensed the content of its website under a CC Attribution-ShareAlike 3.0 License, a notice about which is displayed at the bottom of every page of our website as a footer. It allows users to copy, distribute, and remix the CMLP's original content, so long as (1) it is attributed to the CMLP in the manner specified; (2) it is not used for a commercial purpose; and (3) adaptations are distributed under the same or similar license.
Before you apply a Creative Commons license to your website, you need to consider whether or not you are the copyright owner of the materials that appear on your website. You can only apply a CC license to materials that you have created or for which you have express permission of the copyright owner(s) to license under a CC license. If everything appearing on your website does not fit this criteria, you might consider applying a CC license to only some elements of your website, such as your text and photographic images, while not applying the license to other elements to which you may have a limited license, such as photographs taken by a colleague or ad-related material. In that case, it is critical that you identify which elements of your website are subject to a CC license and which parts are not. For a great page that discusses issues you need to think about before applying a CC license to your website or other copyrighted material, see CC's Things to Think About page.
One side benefit of using a CC license is that you can incorporate Creative Commons metadata into your website, allowing users to find your work through customized Creative Commons searches via Google or other search engines.
Licensing your work under a CC license does not preclude you from entering into a separate license agreement with someone else, for instance for using your work for commercial purposes. The details of such a license, including whether or not you could grant the licensee exclusive rights to distribute the work commercially, would depend upon what type of CC license you initially select. There are services such as Lisensa designed to work in tandem with CC licenses to display commercial license terms and automatically collect license fees. Lisensa, however, takes a 10% cut of all royalties and is also fairly limited in scope at the present time. You may want to consult a lawyer when dealing with the sometimes complicated intersection between CC licenses and commercial licenses.
For more detail on what constitutes a "commercial use" and a "non commercial use," please see CC's Discussion Draft Noncommercial Guidelines.
You may wish to dedicate all of your rights of copyright ownership in a work to the public. The public domain model could also be described as a "no rights reserved" model. You can do this by simply be putting a dedication notice on the work with language like "This work to which I own copyright is hereby released into the public domain" or "Everything on this site to which I/we own copyright is hereby released into the public domain." Alternatively, you can use a Creative Commons Public Domain Dedication.
The two sections listed below are mostly of academic interest if you choose one of the three models mentioned above, but they may be of more assistance if you choose to pursue transfer or licensing deals on a case-by-case basis. They give details about the formal requirements for a valid transfer or licensing contract, as well as information about the circumstances under which a copyright owner is entitled to terminate a transfer or license. These summaries of the law necessarily reduce some of the complexities involved, and readers are advised to consult with a lawyer when presented with issues of formal validity, consideration, and termination/revocation.
Transfers and Exclusive Licenses
A transfer or exclusive license of any or all rights under copyright must be in writing and signed by the owner of the rights conveyed (or the owner's duly authorized agent). The writing should describe the nature of the rights conveyed. As a copyright owner, you should specifically carve out any rights that you wish to retain in the work, especially with regard to exploitation of the work in new media or technological formats developed in the future. 17 U.S.C. Sec. 204(a).
The U.S. Copyright Office does not have any special forms for the contract through which you transfer right(s). Copyright law provides for the recordation of transfers of copyright ownership in the Copyright Office. Although recordation is not required to make a valid transfer between the parties, it provides certain legal advantages, and may be required to validate the transfer as against third parties. For more information on recordation of transfers and other documents related to copyright, see the Copyright Office's Circular 12: Recordation of Transfers and Other Documents.
Writing is not required for a non-exclusive license, because by defining a "transfer of copyright ownership" to exclude non-exclusive licenses, 17 U.S.C. Sec. 101 relieves non-exclusive license from the operation of U.S.C. Sec. 204(a). The grant of a non-exclusive license can be oral or inferred from conduct.
No writing is required for transfers of copyright "by operation of law." 17 U.S.C. Sec. 204(a). The Act does not specify what is meant by "by operation of law", but in general a copyright is conveyed "by operation of law":
Copyright is a personal property right, and it is subject to the various state laws and regulations that govern the ownership, inheritance, or transfer of personal property, as well as terms of contracts or conduct of business. For information about relevant state laws, consult an attorney.
Non-exclusive Licenses
Non-exclusive licenses do not require a writing in order to be valid, and the existence of a licensing arrangement can even be implied from conduct (an "implied license"). Your conduct may give rise to an implied license when it indicates that you intend to extend a license to those using your work, but you never agree to specific terms for the license. The user of your work acquires some right to use it, but only to the extent that you would have agreed to, had you negotiated an agreement.
Generally, the custom and practice of the relevant community or industry determine the scope of an implied license. For example, if you send a letter to a newspaper editor entitled "Dear Editor," under customary practice, the editor of the newspaper has an implied license to publish your letter in the newspaper. For more information about and examples of implied licenses in the Internet context, see Cyberspace Law for Non-Lawyers, Lesson 7 - Copyright 6.
Implied licenses may be important in situations where you hire a freelancer to create a work for you. Imagine, for example, that you hire a website designer to design your website. Neither of you knows much about copyright law, and you fail to agree (even orally) about who owns copyright to the designer's work. You would not own the copyright as a work made for hire because there is no written agreement (please see the Work Made for Hire section of the guide), but a court might still rule that you have an implied license to exploit the work for those uses reasonably within the contemplation of the designer at the time you both entered into the freelance arrangement (probably the right to reproduce and display the website, perhaps the right to create adaptations). Note that in this example, the web designer is the creator (and thus the owner) of the copyrighted work, and you are the person taking advantage of the implied license.
For another example, imagine that you prepare a weekly email newsletter that highlights your best postings for the week. This newsletter contains your copyrighted work (text, images, maybe video). If you email this to your subscribers, a court might find that you have granted them an implied license to share the newsletter with friends and colleagues through email forwarding.
As a general matter, it is a good idea to reduce a non-exclusive license arrangement to writing, just like an exclusive license or transfer. It helps you better protect your rights to the work, and allows you to structure your arrangement with licensees with greater clarity and precision. On the other hand, you might not want to bother users with a written license notice in the case like that of the email newsletter, so long as your subscribers' foreseeable uses don't particularly bother you.
Do I Have to Give or Receive Anything of Value to Make a Transfer or License Valid?In general contract law, the parties to a contract each have to give the other "consideration" in order to make the contract legally binding. "Consideration" is something that each party to a contract gives to the other party in exchange for that other party's promise or performance of the contract.
Transfers of rights under copyright, including exclusive licenses, do not require consideration in order to be valid. Therefore, while it is common for the transferee (the party obtaining the right or rights under copyright) to pay the copyright owner for the grant of rights, payment or other benefit is not required.
Nonexclusive licenses also do not require consideration in order to be valid. However, nonexclusive licenses are revocable (meaning the copyright owner can revoke the license at any time) in the absence of consideration. This means that, whether or not you set a fixed time limit for the duration of the non-exclusive license in the licensing agreement, you (as the copyright owner) can revoke the license at any point if you do not receive consideration for it. Conversely, if you (as the copyright owner) receive consideration in return for the grant of the license, then you cannot revoke the license unless you provide for revocation in the license agreement.
Note, however, that consideration for the grant of a license does not have to be something valuable, and it certainly does not have to be equivalent to the market value of the grant. Consideration is mostly a symbolic gesture. If the licensee gives up anything in exchange for the grant of the license, then that likely would qualify as consideration.
For works created after 1978, section 203 of the Copyright Act provides that the creator (or "author" in copyright terminology) of a work may terminate a transfer, exclusive, or non-exclusive license of any or all rights under copyright for that work during the five-year period:
To terminate a grant or license, you must serve notice of termination upon the grantee (the recipient of the transfer or license) or the grantee's successor in title (meaning the person or entity to whom the original grantee transfered his interest). The notice must be in writing and state the date of termination, which must fall within the five-year period outlined immediately above. You are required to serve the notice not less than two, nor more than ten, years before the termination date designated in the notice. Additionally, you need to file a copy of the notice with the Copyright Office prior to the termination date.
To be valid, a termination notice must comply with the form, content, and manner of service set out in the Copyright Regulations. You can find these regulations at 37 C.F.R. 201.10.
Joint Works, Works Made for Hire, and Deceased Authors
In case of a work of joint authorship, a grant executed by two or more joint authors may be terminated, pursuant to the section 203 of the Copyright Act, only if a majority of the joint authors who executed it agree to the termination. For more on works of joint authorship, see the Joint Authorship section.
When the creator of the work is deceased at the time of the five-year statutory period for termination discussed above, her successors in interest (surviving spouse and/or children; the executor, administrator, personal representative, or trustee in case there is no spouse or surviving children) may exercise the right of termination. The rules governing who owns what share of the termination interest and who must agree in order to effect termination are complex, and a lawyer's help will usually be necessary under these circumstances.
Works that qualify as works made for hire are not subject to termination by the employee or freelancer. For more on works made for hire, please see the Works for Hire section.
Note: Non-exclusive licenses granted without consideration can also be revoked at will, but it may be difficult to determine whether valid consideration has been granted. See the Creating a Written Contract to Transfer or License Rights Under Copyright section for details.
When you use someone else's work without their permission, you face the prospect of a lawsuit for copyright infringement. Luckily, this unappealing outcome is not inevitable. Some awareness about copyright law, a little investigation, and a bit of flexibility can help you avoid claims of infringement.
First, you should consider whether the material you plan to use is protected by copyright. Many things are not copyrightable, such as facts and ideas, and therefore you can use them without worrying about infringement. Additionally, even works that qualify for copyright protection will eventually fall into the public domain after a certain period of time. For more information on this topic, refer to the section on Works Not Covered By Copyright.
Second, if you've determined that the material you wish to use is protected by copyright, you should consider seeking the copyright owner's permission to use the work. You will first need to identify the copyright owner, and then request permission for your specific use. If you are told that you cannot use the copyrighted work, this doesn't necessarily preclude you from using the work. You will not lose the ability to assert that your use is a "fair use" even if the copyright owner refuses to give you permission to use his work. See the section on Getting Permission to Use the Work of Others for guidance on how to do this.
Third, the doctrine of fair use may make it legally permissible for you to use a copyrighted work without permission for purposes such as commentary, criticism, parody, news reporting, and scholarship. Whether or not your use is lawful usually depends upon how different or "transformative" your use is from the original. Refer to the section on Fair Use for more information.
Fourth, rather than directly copy the work itself, you may decide to link to the material, if it is available online, is sufficient and thus avoid potential copyright infringment claims entirely. The section on Linking to Copyrighted Materials explores the legal issues that might arise from linking to or using a link to embed other online works.
Another issue you may face occurs when the work is protected by digital rights management systems (DRM) or some other technology that controls access to the work. You cannot circumvent these access controls without the permission of the owner of the copyright, and no fair use defense is available to you. We address these issues in the Circumventing Copyright Controls subsection.
If you are dealing with a work that contains a DRM system, or if the work is not in the public domain and you do not believe that the doctrine of fair use covers your use of the work, you will need the express and specific permission of the person who owns copyright in that material. We will discuss the process of getting permission to use someone's work from making informal requests to seeking formal licenses.
Finally, the section on Copyright Infringement goes through the elements of a copyright infringement claim and also discusses the intersection of plagiarism and infringement.
You may want to use or incorporate someone else's work into your own. While the works of others may be protected by copyright, there are a class of works that fall outside the scope of copyright law. The following categories of work are not eligible for copyright protection, regardless of when they were created and whether or not they bear a copyright notice.
Additionally, even works that qualify for copyright protection fall into the public domain after a certain period of time.
You can use facts in your online work without the fear of liability because facts are not protected under copyright law. As we explain in the section on Copyrightable Subject Matter, copyright protection applies to "original works of authorship." Although the level of creativity required to be "original" is extremely low, facts do not have the requisite level of creativity. For example, baseball scores, telephone numbers, dates of birth, and the number of people at a protest are noncopyrightable facts.
However, there may be situations in which a compilation of facts may be protected if the creator of the original publication selected, coordinated, or arranged the facts in an original way. For example, a sports almanac may arrange baseball scores in a creative way, a genealogy chart may arrange birth dates in an original way, or a cookbook may arrange ingredients in a creative and original way as part of its recipes. In each of those instances, the creator of the work would have a copyright in the creative arrangement of the facts, but not the facts themselves.
You can use any work of the United States Government because copyright law does not cover such works. Works of the United States Government include:
However, note that copyright law may protect works created by others that the United States Government receives by assignment, bequest, or otherwise.
While federal copyright law does not expressly apply to the works of state governments, state laws are similarly uncopyrightable. See Tim Armstrong's analysis in Can States Copyright Their Statutes? for more information. However, be aware that Oregon recently asserted copyright ownership "in the arrangement and subject-matter compilation of Oregon statutory law, the prefatory and explanatory notes, the leadlines and numbering for each statutory section, the tables, index and annotations and such other incidents as are the work product of the Committee in the compilation and publication of Oregon law." See our blog post, Oregon Claims Copyright in Its Statutes -- Well, Sort Of, discussing the validity of Oregon's copyright claim.
Copyright protection only applies to "original works of authorship" that are "fixed in a tangible medium of expression." Consequently, if you attend an improvisational speech that has not been notated or recorded, you may publish the speech in your online work without fear of liability. (However, you should cite the speech in order to avoid the taint of plagiarism.)
Copyright does not cover ideas, concepts, and principles themselves, only the form in which they are expressed. For instance, merely coming up with an idea does not make you the copyright owner because you haven't actually expressed anything. You become the copyright owner only when you put that idea into "expression" through words (e.g., in a blog post) or other tangible form (e.g., in a video, a photograph, or a podcast).
For example, Einstein's theory of special relativity is not copyrightable because it is an idea (or concept or principle). However, Einstein's article, "On the Electrodynamics of Moving Bodies," in which he explained and expressed the theory, was copyrightable.
If you come across an idea/concept/principle, you can use it in your online work with out fear of liability as long as you do not use the form in which it is expressed (which may be copyrightable). However, you should consider citing to the source in order to avoid a claim of plagiarism.
In general, copyright does not protect individual words, short phrases, and slogans; familiar symbols or designs; or mere variations of typographic ornamentation, lettering, or coloring; mere listings of ingredients or contents. (However, copyright protection may be available, if the artwork of the symbol or design contains sufficient creativity.)
While copyright protection may not apply, be aware that trademark law protects certain words, short phrases, slogans, symbols, and designs. For example, trademark law protects the word "Apple," the slogan "Got Milk?" and the Nike symbol of the "swoosh." See the Trademark section for more information on using a trademark protected word, phrase, symbol, or other indicator that identifies the source or sponsorship of goods or services.
You can use any work in the public domain without obtaining permission of the copyright owner. A work falls into the public domain when the copyright term expires or, in the case of works published between 1923 and 1989, if the work lost copyright protection because the copyright owner neglected to take the necessary steps under then-applicable copyright law. Additionally, a copyright owner can directly dedicate a work to the public domain. This is done expressly, through language such as "Everything on this site to which we own copyright is hereby released into the public domain," or by using the Creative Commons Public Domain Dedication.
Determining whether any particular work is in the public domain is a complex task, and the answer often depends upon when the work was published, whether it was published with notice, and whether the copyright holder subsequently registered the work. However, there are some rules of thumb that will help you with this analysis:
If you want to go beyond these rules of thumb to understand more of the specifics, Cornell Law School has an excellent chart that shows when different types of works (published, unpublished, published outside the US) will fall into the public domain based on an analysis of pre- and post-1978 copyright law. Additionally, the Creative Commons' Podcasting Legal Guide has a terrific discussion on how to determine whether a work is in the public domain.
A word of caution about using public domain works. You should check whether a public domain work has already been incorporated into another work. Although the public domain portions of that new work are not protected, the author's new expressive content and selection and arrangement of the public domain work may be protected by copyright. Creative Commons' Podcasting Legal Guide gives two examples that illustrates this potential issue:
The policy behind copyright law is not simply to protect the rights of those who produce content, but to "promote the progress of science and useful arts." U.S. Const. Art. I, § 8, cl. 8. Because allowing authors to enforce their copyrights in all cases would actually hamper this end, first the courts and then Congress have adopted the fair use doctrine in order to permit uses of copyrighted materials considered beneficial to society, many of which are also entitled to First Amendment protection. Fair use will not permit you to merely copy another’s work and profit from it, but when your use contributes to society by continuing the public discourse or creating a new work in the process, fair use may protect you.
Section 107 of the Copyright Act defines fair use as follows:
[T]he fair use of a copyrighted work, including such use by reproduction in copies or phonorecords or by any other means specified by that section, for purposes such as criticism, comment, news reporting, teaching (including multiple copies for classroom use), scholarship, or research, is not an infringement of copyright. In determining whether the use made of a work in any particular case is a fair use the factors to be considered shall include --
- the purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes;
- the nature of the copyrighted work;
- the amount and substantiality of the portion used in relation to the copyrighted work as a whole;
- and the effect of the use upon the potential market for or value of the copyrighted work.
Unfortunately, there is no clear formula that you can use to determine the boundaries of fair use. Instead, a court will weigh these four factors holistically in order to determine whether the use in question is a fair use. In order for you to assess whether your use of another's copyrighted work will be permitted, you will need an understanding of why fair use applies, and how courts interpret each part of the test.
1. Purpose and Character of Your Use
If you use another's copyrighted work for the purpose of criticism, news reporting, or commentary, this use will weigh in favor of fair use. See Campbell v. Acuff-Rose Music, 510 U.S. 569, 578 (1994). Purposes such as these are often considered "in the public interest" and are favored by the courts over uses that merely seek to profit from another’s work. Online Policy Group v. Diebold, Inc., 337 F. Supp. 2d 1195, 1203 (N.D. Cal. 2004). When you put copyrighted material to new use, this furthers the goal of copyright to "promote the progress of science and useful arts."
In evaluating the purpose and character of your use, a court will look to whether the new work you've created is "transformative" and adds a new meaning or message. To be transformative, a use must add to the original "with a further purpose or different character, altering the first with new expression, meaning, or message." Campbell, 510 U.S. at 579. Although transformative use is not absolutely necessary, the more transformative your use is, the less you will have to show on the remaining three factors.
A common misconception is that any for-profit use of someone else's work is not fair use and that any not-for-profit use is fair. In actuality, some for-profit uses are fair and some not-for-profit uses are not; the result depends on the circumstances. Courts originally presumed that if your use was commercial it was an unfair exploitation. They later abandoned that assumption because many of the possible fair uses of a work listed in section 107's preamble, such as uses for purposes of news reporting, are conducted for profit. Although courts still consider the commercial nature of the use as part of their analysis, they will not brand a transformative use unfair simply because it makes a profit. Accordingly, the presence of advertising on a website would not, in of itself, doom one’s claim to fair use.
If you merely reprint or repost a copyrighted work without anything more, however, it is less likely to qualify for protection under this prong. If you include additional text, audio, or video that comments or expands on the original material, this will enhance your claim of fair use. In addition, if you use the original work in order to create a parody this may qualify as fair use so long as the thrust of the parody is directed toward the original work or its creator.
Moreover, if the original work or your use of it has news value, this can also increase the likelihood that your use is a fair use. Although there is no particular legal doctrine specifying how this is weighed, several court opinions have cited the newsworthiness of the work in question when finding in favor of fair use. See, e.g., Diebold, 337 F. Supp. at 1203 (concluding "[i]t is hard to imagine a subject the discussion of which could be more in the public’s interest”), Norse v. Henry Holt & Co., 847 F. Supp. 142, 147 (N.D. Cal. 1994) (noting "the public benefits from the additional knowledge that Morgan provides about William Burroughs and other writers of the same era").
2. Nature of the Copyrighted Work
In examining this factor, a court will look to whether the material you have used is factual or creative, and whether it is published or unpublished. Although non-fiction works such as biographies and news articles are protected by copyright law, their factual nature means that one may rely more heavily on these items and still enjoy the protections of fair use. Unlike factual works, fictional works are typically given greater protection in a fair use analysis. So, for example, taking newsworthy quotes from a research report is more likely to be protected by fair use than quoting from a novel. However, this question is not determinative, and courts have found fair use of fictional works in some of the pivotal cases on the subject. See, e.g., Sony Corp. v. Universal City Studios, Inc., 464 U.S. 417, 456 (1984).
The published or unpublished nature of the original work is only a determining factor in a narrow class of cases. In 1992, Congress amended the Copyright Act to add that fair use may apply to unpublished works. See 17 U.S.C. § 107. This distinction remains mostly to protect the secrecy of works that are on their way to publication. Therefore, the nature of the copyrighted work is often a small part of the fair use analysis, which is more often determined by looking at the remaining three factors.
3. Amount and Substantiality of the Portion Used
Unfortunately, there is no single guide that definitively states how much of a copyrighted work you can use without copyright liability. Instead, courts look to how such excerpts were used and what their relation was to the whole work. If the excerpt in question diminishes the value of the original or embodies a substantial part of the efforts of the author, even an excerpt may constitute an infringing use.
If you limit your use of copyrighted text, video, or other materials to only the portion that is necessary to accomplish your purpose or convey your message, it will increase the likelihood that a court will find your use is a fair use.
Of course, if you are reviewing a book or movie, you may need to reprint portions of the copyrighted work in the course of reviewing it in order to make you points. Even substantial quotations may qualify as fair use in "a review of a published work or a news account of a speech that had been delivered to the public or disseminated to the press." Harper & Row, Publishers, Inc. v. Nation Enters., 471 U.S. 539, 564 (1985). However, substantial quotations from non-public sources or unpublished works do not enjoy the same protections.
4. The Effect of Your Use Upon the Potential Market for the Copyrighted Work
In examining the fourth factor, which courts tend to view as the most important factor, a court will look to see how much the market value of the copyrighted work is affected by the use in question. This factor will weigh in favor of the copyright holder if “unrestricted and widespread” use similar to the one in question would have a “substantially adverse impact” on the potential market for the work.
Although the copyright holder need not have established a market for the work beforehand, he or she must demonstrate that the market is "traditional, reasonable, or likely to be developed." Ringgold v. Black Entm't TV, 126 F.3d 70, 81 (2d Cir. 1997). An actual effect on the number of licensing requests need not be shown. The fact that the original work was distributed for free, however, may weigh against a finding that the work had publication value. See Nunez v. Caribbean Int'l News Corp., 235 F.3d 18, 25 (1st Cir. 2000). Likewise, the fact that the source is out of print or no longer sold will also weigh in favor of fair use.
The analysis under this factor will also depend on the nature of the original work; the author of a popular blog or website may argue that there was an established market since some such authors have been given contracts to turn their works into books. Therefore, a finding of fair use may hinge on the nature of the circulated work; simple e-mails such as those in the Diebold case (discussed in detail below) are unlikely to have a market, while blog posts and other creative content have potential to be turned into published books or otherwise sold. In addition, the author of a work not available online, or available only through a paid subscription, may argue that the use in question will hurt the potential market value of that work on the Internet.
Assessing the impact on a copyrighted work’s market value often overlaps with the third factor because the amount and importance of the portion used will often determine how much value the original loses. For instance, the publication of five lines from a 100 page epic poem will not hurt the market for the original in the same way as the publication of the entirety of a five-line poem.
This fourth factor is concerned only with economic harm caused by substitution for the original, not by criticism. That your use harms the copyright holder through negative publicity or by convincing people of your critical point of view is not part of the analysis. As the Supreme Court has stated:
[W]hen a lethal parody, like a scathing theater review, kills demand for the original, it does not produce a harm cognizable under the Copyright Act. Because "parody may quite legitimately aim at garroting the original, destroying it commercially as well as artistically," the role of the courts is to distinguish between '[b]iting criticism [that merely] suppresses demand [and] copyright infringement[, which] usurps it.'"Campbell, 510 U.S. at 591-92 (citations omitted).
The fact that your use creates or improves the market for the original work will favor a finding for fair use on this factor. See Nunez, 235 F.3d at 25 (finding fair use when the publication of nude photos actually stirred the controversy that created their market value and there was no evidence that the market existed beforehand).
In summary, although courts will balance all four factors when assessing fair use, the fair use defense is most likely to apply when the infringing use involves criticism, comment, news reporting, teaching, scholarship, or research. In addition, some general rules of thumb can be helpful in analyzing fair use:
Publishing the Contents of Private Letters and E-Mail (including letters from lawyers threatening legal action): Fair use may protect the publication of the content of private letters and email, including communications from lawyers threatening legal action. As mentioned above, unpublished materials sometimes enjoy greater protection than published documents. Although an author may argue that the "unpublished" nature of his or her correspondence warrants a finding against fair use, such an argument carries weight only when the use involves a heretofore secret work “on its way” to publication, which is never the case for lawyers' cease-and-desist letters. Recently, two students at Swarthmore college posted an archive of internal emails among Diebold employees; an online newspaper linked to the archive in an article critical of Diebold’s voting machines. A court held that although the emails were not published, publishing them was nonetheless protected by fair use. Diebold, 337 F. Supp. 2d at 1203. The court found that the important fourth fair use factor weighed in favor of fair use because Diebold had no intention of selling the archive for profit and therefore it lost no value when the archive was published online. The court also noted the students and newspaper use was intended to support criticism of the company, which was a transformative use under the first factor.
Copyright as a Tool to Silence Criticism: Sometimes, copyright owners try to use copyright law as a weapon to squelch speech that is critical of them or their works of authorship. For example, in Savage v. CAIR, a conservative radio host has filed a copyright infringement lawsuit against the Council on American-Islamic Relations for using excerpts of his radio show in order to criticize his rabidly anti-Muslim views and to call for sponsors to withdraw their support from his program. CAIR's use of these audio excerpts, and similar uses of copyrighted material in order to criticize a copyright owner, are almost certainly protected by fair use. As EFF argues in its brief asking the court to dismiss Savage's lawsuit:
The fair use doctrine exists precisely to prevent copyright holders from doing what Savage attempts here -- abusing a limited monopoly granted to encourage creativity to punish dissenters and to chill speech aimed at criticizing copyrighted works. For all his ironic appeals to the First Amendment, Savage asks this Court to punish CAIR for publicly criticizing the offensive content of his radio program. That CAIR's criticism might result in Savage losing popularity (and advertisers) is of no moment to either a free speech or copyright infringement analysis and indeed, should be expected in the marketplace of ideas that the First Amendment and Copyright Act strongly protect.
For another case involving an attempted use of copyright to silence criticism, see our database entry, ABC v. Spocko.
While there is no definitive test for determining whether your use of another's copyrighted work is a fair use, there are several things you can do to minimize your risk of copyright liability:
If you publish your work online, you are already in the practice of using links to enhance your content. The Web's basic architecture relies heavily on the ability of webpages to link to other pages to allow natural navigation between related content. It is hard to imagine the smooth functioning (or even continued existence) of the Web without hypertext links that act as a reference system identifying and enabling quick access to other material. Fortunately, courts generally agree that linking to another website does not infringe the copyrights of that site, nor does it give rise to a likelihood of confusion necessary for a federal trademark infringement claim. However, different kinds of linking raise different legal issues, and the law is not entirely settled in all of these areas. Moreover, some linking activities may expose you to liability for contributory copyright infringement or trafficking in circumvention technology in violation of the Digital Millennium Copyright Act (DMCA).
Deep Linking: The most straightforward case is so-called "deep linking," which refers to placing a link on your site that leads to a particular page within another site (i.e., other than its homepage). No court has ever found that deep linking to another website constitutes copyright or trademark infringement. Therefore, you can link to other websites without serious concerns about legal liability for the link itself, with the exception of activities that might be contributory copyright infringement or trafficking in circumvention technology (discussed below).
Inline linking: Inline linking involves placing a line of HTML on your site that so that your webpage displays content directly from another site. We now commonly refer to this practice as embedding. For example, many bloggers embed videos from YouTube on their blogs to illustrate a point or initiate discussion. While there is some uncertainty on this point, a recent case from the Ninth Circuit Court of Appeals concluded that inline linking does not directly infringe copyright because no copy is made on the site providing the link; the link is just HTML code pointing to the image or other material. See Perfect 10, Inc. v. Google, Inc., 508 F.3d 1146 (2007). Other courts may or may not follow this reasoning. However, the Ninth Circuit's decision is consistent with the majority of copyright linking cases which have found that linking, whether simple, deep, or inline, does not give rise to liability for copyright infringement. For discussion of these cases, see The Internet Law Treatise. In addition, merely using an inline link should not create trademark liability, unless you do something affirmative to create the impression that you are somehow affiliated with or endorsed by the site to which you are linking. Thus, embedding media in your online work should not expose you to legal liability, with the possible exceptions discussed below.
Framing: Framing refers to the practice of dividing a web page into multiple sections that use HTML code to pull content from different sources. The law should treat framing much like inline linking for purposes of copyright infringement (see discussion immediately above), but no case has considered the issue of framing in the context of copyright law. Framing potentially raises trademark problems. Depending on how you design your page, a user might be confused into believing that all of the source material is yours. Some plaintiffs have sued websites for framing under trademark and related areas of law, but most cases have settled and the law remains unclear.
The situation changes when you knowingly link to works that clearly infringe somebody's copyright, like pirated music files or video clips of commercially distributed movies and music videos. In this situation, you might be liable for what is known as "contributory copyright infringement." Contributory copyright infringement occurs by "intentionally inducing or encouraging direct infringement" of a copyrighted work. Metro-Goldwyn-Mayer Studios, Inc. v. Grokster, Ltd, 545 U.S. 913, (2005). As long as you do not know that a work infringes someone's copyright, then you cannot be held liable for contributory infringement for directing users to that work. On the other hand, it is not necessarily safe to simply claim that you "didn't know" when the circumstances make it clear the material you link to is infringing. Use your common sense. Fred vonLohman gives the following rules of thumb to help avoid contributory copyright infringement (specifically with reference to embedding videos):"(1) don't embed videos that are obviously infringing, and (2) consider removing embedded videos once you've been notified by a copyright owner that they are infringing." Relatedly, you may be able to protect yourself against claims of contributory copyright infringement by complying with the notice-and-takedown procedures of the DMCA. For details, see Notice-and-Takedown.
Linking also raises legal issues in connection with the anti-circumvention provisions of the DMCA. Section 1201 of the DMCA makes it illegal to traffic in technology that enables others to circumvent technological measures put in place by copyright holders to control access to or uses of their copyright work. 17 U.S.C. § 1201(a)(2), (b). "Trafficking" means making, selling, giving away, or otherwise offering these devices or tools to the public. You can "traffic" in circumvention tools simply by posting them on your website or linking to other websites that host them. For example, in 1999 a Norwegian teenager created a software program called "DeCSS" that allowed users to circumvent CSS, the encryption technology used by movie studios to stop unlicensed playing and copying of commercially distributed DVDs. A number of websites posted the source and object code for DeCSS on the Internet, and other websites linked to them. The Second Circuit held that hosting and linking to the DeCSS code violated the DMCA's anti-trafficking provisions, and that this application of the DMCA did not violate the First Amendment. See Universal City Studios, Inc. v. Corley, 273 F.3d 429 (2d Cir. 2001). This decision is controversial, and it is not clear that other courts would necessarily follow its reasoning. For example, one court has held that linking itself is not enough, and liability requires some more direct tie between the offending websites, such as receiving compensation in exchange for linking. See Comcast v. Hightech Elecs., Inc., 2004 WL 1718522 (N.D.Ill. July 29, 2004).
Given the uncertain state of the law, it is best not to knowingly link to sites hosting circumvention software. To be on the safe side, you should also remove user-generated content that links to such postings. This cautious approach may put websites that depend upon high levels of user interactivity in an uncomfortable position, as illustrated by the Digg.com user "revolt" in May 2007.
At some point you may want to use someone else's work. You should first determine whether the work is protected by copyright. Is the work copyrightable? Is it in the public domain? Is your use of the work barred by another area of the law such as trademark law? Keep in mind that a work doesn't have to have a copyright notice affixed to it to be covered by copyright.
Once you've gone through the above analysis and determined that the material you wish to use is protected by copyright, you should seek the copyright owner's permission to use the work. You will first need to identify the copyright owner, and then request permission for your specific use. If you are told that you cannot use the copyrighted work, this doesn't necessarily preclude you from using the work. You will not lose the ability to assert that your use is a "fair use" even if the copyright owner refuses to give you permission to use his work. For more on fair use, see the section on Fair Use in this guide.
In many cases you will be able to quickly identify the copyright owner of the work. For some works, however, locating the copyright owner becomes an involved process. As you research, keep in mind that you may need to contact more than one person to get the necessary permission. For example, if the work you wish to use is the photograph of a person, you should seek permission from the copyright owner of the photograph as well as the person in the photograph if you will use the image of the person for commercial purposes, such as advertising. See the section on Rights of Publicity for more information on this issue.
You will likely find information about the copyright owner by searching several places:
As you conduct your research, refer to the Copyright Office's excellent resource on How to Investigate the Copyright Status of a Work.
Once you've identified the copyright owner, it is time to actually make your request. Often, an informal approach (by emailing or phoning the copyright owner) will work. If you opt for the informal route, be sure to follow up in writing. In many cases, misunderstandings arise over the scope of permission, and you can avoid such controversies by being explicit about how you wish to use the work.
Alternatively, you can go the formal route and send a letter to the copyright holder. In addition, if you need to contact a copyright collective to request a license, you should follow the procedures specific to their organization.
Your request should include:
For example, Jennifer Kyrnin at About.com, Indiana University-Purdue University's Copyright Management Center, and the University of Texas' Office of the General Counsel have sample letters that you can use to create your request.
If the copyright owner gives you permission to use her work, you are nearly done. Your last step should be to keep a record of how you found the owner, and a record of the permission that she gave you. As the Copyright Management Center at Indiana University notes: contact information will help you if you ever wish to get permission from the same owner in the future, and a record of the permission will assist you in the event that any future disagreements arise over the scope of the permission.
You should record:
If you cannot locate the copyright owner, or the copyright owner's response includes a large fee or a flat out denial, then your remaining options are:
You may come across digital works that contain copyright controls, such as digital rights management (DRM) technology or a software copy protection system. As a general matter, you should not circumvent these copyright controls, or you may face civil and criminal penalties under the Digital Millennium Copyright Act (DMCA).
Some copyright owners embed a form of DRM into their digital work in order to control its use and distribution. Typically, copyright controls come in two flavors:
The DMCA prohibits circumventing access-control measures. 17 U.S.C. § 1201(a)(1). For example, if you cannot watch a particular copyrighted DVD on your laptop because of an encryption system, the DMCA makes it unlawful for you to bypass this access-control measure. Access-control measures may also be found on eBooks, Internet streaming platforms, and password-protected sections of websites, among other things. Note that there is no ban on the act of circumventing copy-control measures, but it is illegal for anyone to provide you with the technological tools to do so. In any event, some copyright holders merge access-control and copy-control measures in the same DRM system, making it impossible to circumvent copy-controls (which is not prohibited) without circumventing access-controls (which is prohibited).
The DMCA also prohibits trafficking in devices or tools that help other people circumvent access-control and copy-control measures. 17 U.S.C. § 1201(a)(2), (b). "Trafficking" means making, selling, giving away, or otherwise offering these devices or tools to the public. Beware: you can "traffic" in circumvention tools simply by posting them on your website or linking to other websites that host them. For example, in 1999 a Norwegian teenager created a software program called "DeCSS" that allowed users to circumvent CSS, the encryption technology used by movie studios to stop unlicensed playing and copying of commercially distributed DVDs. A number of websites posted the source and object code for DeCSS on the Internet, and other websites linked to them. The Second Circuit held that hosting and linking to the DeCSS code violated the DMCA's anti-trafficking provisions, and that this application of the DMCA did not violate the First Amendment. See Universal City Studios, Inc. v. Corley, 273 F.3d 429 (2d Cir. 2001). This decision is controversial, and it is not clear that other courts would necessarily follow its reasoning. Nevertheless, it illustrates how risky it is to host or even link to devices or tools that enable others to break access- and copy-controls.
Fair use is not a defense to a prohibited act of circumvention or trafficking. It does not matter that you or someone else has to circumvent DRM in order to make fair use of a copyrighted work. This is one of the reasons that the DMCA is so controversial.
There are, however, several exemptions built into the DMCA that permit the circumvention of access- and copy-control measures for limited purposes or the limited distribution of circumvention tools in particular circumstances. In addition, the DMCA directs the Librarian of Congress, upon the recommendation of the Register of Copyrights, to publish a list of classes of works to be exempted from the anti-circumvention provisions of the DMCA. The Librarian makes the determination of which classes of works to exempt based on a determination, made pursuant to a complex rule-making process, that fair use of a particular class of works is likely to be adversely affected by the anti-circumvention provisions of the law. The best known current exemption is for "computer programs in the form of firmware that enable wireless telephone handsets to connect to a wireless telephone communication network, when circumvention is accomplished for the sole purpose of lawfully connecting to a wireless telephone communication network." Memorandum of Librarian of Congress on 1201 Recommendations. This exemption apparently allows cell phone users to "unlock" their phones for use with other carriers, so long as this is the only motivation. The impact of the cell phone companies' user agreements on this exemption is still uncertain. For more on the story, see Wired's Legal or Not, IPhone Hacks Might Spur a Revolution.
The DMCA is complicated, and this page gives just a brief summary of the anti-circumvention and anti-trafficking provisions. For more detailed analysis, see the Chilling Effects FAQ about Anticircumvention and The Internet Law Treatise.
It is a widely held misconception that works on the Internet are not covered by copyright and thus can be used freely. This is not true. Copyright law applies to online material just as it does to offline material, assuming the prerequisites for copyright protection are met. Thus, if you use someone else's work, you could be liable for what is called "copyright infringement." Basically, copyright infringement exists if you exercise one or more of the exclusive rights held by a copyright owner. A copyright owner enjoys the following exclusive rights:
See Rights Granted Under Copyright for more discussion.
In order to bring a successful claim of copyright infringement in the context of copying on a blog or website, the plaintiff must generally prove:
If the defendant is found liable for copyright infringement, the copyright holder will be entitled to recover his or her actual damages (e.g., lost profits) or, if certain conditions are met, statutory damages between $750 to $30,000 per infringement. If the plaintiff can prove the infringement was willful, the statutory damages may be as high as $150,000 per infringement.
Defenses
There are three common defenses available to defendants who are faced with a copyright infringement claim:
Note that the infringing use of a copyrighted work cannot be cured by attribution (i.e. citing the copyrighted work). While citing to the original source is always a good idea, attribution will not protect you from a claim of copyright infringement.
Plagiarism is the act of using another's work and passing it off as your own. While such a use could open you up to a copyright infringement claim, there is no legal liability associated with the act of plagiarism.
Nevertheless, it is a good idea to avoid plagiarism. The best way to avoid plagiarism is to adequately cite your work. Depending on the nature of your online work, your citations can be informal in style, or adhere to the more formal citation conventions. See the University of Iowa's Guide to Citation Style Guides, and Yale College's guide to citing blogs for more information.
Since plagiarism and copyright infringement are similar concepts, a few examples may be helpful:
In 1998, Congress passed a controversial law known as the Digital Millennium Copyright Act (DMCA). Through the DMCA, Congress attempted to adapt U.S. copyright law to the challenges posed by digital technologies and the online environment. Although the DMCA as a whole extended the reach of copyright law and is generally regarded as favoring the interests of copyright owners, it also created provisions limiting the liability of certain online actors. Section 512 of the DMCA, 17 U.S.C. § 512, contains the DMCA's "safe-harbor" provisions for online service providers. These safe harbor provisions shield online service providers, like ISPs, hosting providers, search engines, and website operators, from copyright infringement claims made against them based on the conduct of their customers or users. To take advantage of the safe-harbor provisions, online service providers need to implement "notice-and-takedown" procedures that call for expeditious removal of content upon receipt of a formally valid takedown notice from a copyright owner. The DMCA's notice-and-takedown procedures could impact your online publishing work in a variety of ways:
If you operate a website that hosts user content, you should consider implementing these procedures and taking the administrative steps required to enjoy safe-harbor protection. You are not legally required to do so, but it may help you avoid copyright infringement liability. The three main things you need to do to take advantage of the safe-harbor provisions are (1) designate a copyright agent to receive takedown notices; (2) adopt and communicate to users an effective "copyright infringement policy"; and (3) properly comply with takedown notices when received. For details, on please see Protecting Yourself Against Copyright Claims Based on User Content.
Alternatively, your content may be the target of a DMCA takedown notice sent to someone else. For example, a copyright owner might send a takedown notice to your hosting provider complaining that you are posting copyright infringing material and asking the hosting provider to remove or disable access to it. Or, a copyright owner might send a takedown notice to YouTube or another video-hosting service demanding that a video you uploaded be taken down. (Our database is filled with examples of this -- Universal Music Group v. Malkin, Creation Science Evangelism v. Rational Response Squad, U.S. Air Force v. Wired/Threat Level, to name but a few). Less commonly, you might even post something in user comments on another blog or website that elicits a takedown notice. The DMCA gives online service providers, like your hosting service, YouTube, and other website operators, an incentive to take down your material when someone sends a notice complaining about it, but it also enables you to send a "counter-notifice" to get your material put back up. Sending a counter-notice may result in the copyright owner suing you, so you will want to be sure that you are not infringing the complaining party's copyright before sending a counter-notice. For details on what to do if your content is the target of a takedown notice, see Responding to a DMCA Takedown Notice Targeting Your Content.
Finally, if you discover that someone else is copying or using your work in a way that doesn't look like fair use, such as by reprinting entire articles or posts without your permission, then you may want to consider sending a takedown notice of your own. For details on this and other strategies for protecting your work online, see Protecting Your Copyrighted Work Online.
If you publish or use the creative work of others, their trademarks, or certain confidential business information without the permission of the owner, you may be exposing yourself to legal liability for violations of intellectual property law. Fortunately, if you allow your site's user to post this type of content you can protect yourself from copyright infringement claims under the Digital Millennium Copyright Act (DMCA), as long as you establish effective "notice-and-takedown" procedures, promptly remove content when a copyright owner notifies you that it is infringing, and have no knowledge that the material in question is infringing. This page explains how this important law works.
Section 512 of the DMCA contains what are called the "safe-harbor" provisions for online service providers. These safe harbor provisions may shield you from liability for the copyright infringements of your site's users and for linking to copyright-infringing material from other online sources, as long as you establish effective "notice-and-takedown" procedures, promptly remove content when a copyright owner notifies you that it is infringing, and have no actual or effective knowledge that the material in question is infringing. Section 512 has a somewhat confusing structure; if you are interested in navigating the language of the statute, this paper from Fenwick & West LLP attempts to lay out the terms of section 512 in a more logical fashion.
You are not legally required to comply with the safe harbor provisions of section 512, but doing so may help you avoid copyright infringement liability. The sections below address those provisions of section 512 that may apply to you and discuss what you need to do in order to take advantage of the safe harbor provisions.
There are two safe-harbor provisions that potentially apply to your online publishing activities.
The first safe-harbor provision relates to materials posted to your blog or website at the direction of a user. This could include a file (e.g., a photograph, a film clip, an audio file) that a user posts to a comment section on your site or to a forum thread. (There are many other potential examples, the important thing is that the material is posted by another person, not you). This safe-harbor provision is found in section 512(c), and it states that, as the administrator of a website or other service, you will not be held liable for money damages for infringing content posted "at the direction of a user," as long as you
The second safe-harbor provision relates to links you post to other online material located elsewhere. This safe-harbor provision is found in section 512(d), and it states that an online service provider will not be held liable for money damages "for infringement of copyright by reason of the provider referring or linking users to an online location containing infringing material or infringing activity, by using information location tools, including a directory, index, reference, pointer, or hypertext link." (emphasis added). If you linked to material without knowing that it infringed copyright, the language of this section appears to relieve you of liability, as long as you
These safe harbor provisions could be valuable protections for you as a website operator, but in order to take advantage of them, you have to meet a few further administrative requirements.
Note: the existence of the safe-harbor provisions does not imply that you will be held liable for copyright infringement if you opt not to use the safe harbors. Rather, your liability will depend on the independent principles of direct and secondary infringement. For details, see the Chilling Effects FAQ about Copyright - What constitutes copyright infringement? and its FAQ about DMCA Safe Harbor Provisions - What is third-party liability, also known as secondary liability?
There are a few additional administrative steps that you need to take before you can enjoy the benefits of the safe-harbor provisions. These steps seem complicated at first, but in fact do not require a significant amount of effort or cost in order to comply with them. The steps are as follows.
1. Designate a Copyright Agent to Receive DMCA Takedown Notices
The U.S. Copyright Office maintains a list of designated agents to receive notices of claimed copyright infringement. This list enables copyright owners who believe that their work is being infringed to send complaints or "takedown notices" to internet service providers hosting or linking to the disputed material. You need to designate an agent, which can be you or someone else who agrees to do it, in order to take advantage of the DMCA safe-harbor provisions. To do this, you file an Interim Designation with the United States Copyright Office, along with an $105 filing fee.
2. Adopt and Communicate to Users a Copyright Infringement Policy
In order to qualify for the safe harbor protections, you must also publish a statement on your site giving notice to your users of your DMCA agent's contact information and your policies regarding copyright infringement and the consequences of repeated infringing activity. The notice can be a part of the website's terms of use or some other notice displayed prominently on the site. For more on terms of use, see the Terms of Use and Website Privacy section for details. The statement should explain that you respond expeditiously to notices of claimed copyright infringement andterminate users or account holders who are "repeat infringers." If you have no subscribers or account holders, your policy may state "If we become aware that one of our users is a repeat copyright infringer, it is our policy to take reasonable steps within our power to terminate that user."
You may want to include a statement detailing the proper form for a notice of claimed infringement, which must include:
17 U.S.C. § 512(c)(3)(B) states that if a complaining party does not substantially comply with these requirements, its notice will not serve as "actual notice" for the purpose of Section 512. Your policy statement should also include a statement explaining the procedure for users of your site to make a counter-notification (discussed below).
3. Properly Comply with a Notice of Claimed Infringement When Received
You may from time to time receive a notice of claimed infringement from a copyright owner, alleging that content on your site infringes the holder's copyright. Such a notice must comply with the form outlined above. Once you verify that a copyright notification substantially meets these formal requirements, in order to qualify for the safe harbor, you are required to:
For information on the content of a proper counter-notice or if your content has been removed by your service provider as a result of a DMCA takedown notice, see Responding to a DMCA Takedown Notice Targeting Your Content.
The DMCA gets a great deal of attention in discussions of online speech, especially in technical circles. This attention is warranted, and vigorous debate about this controversial provision of the Copyright Act is necessary. But it is important to remember that other legal issues may also affect your online activities. The DMCA safe-harbor provisions apply only to claims of copyright infringement. They do not apply to trademark infringement claims, defamation claims, or claims alleging misappropriation of trade secrets, to name just a few of the possibilities. This means that you cannot insulate yourself from liability on one of these other claims simply by "expeditiously removing" the disputed content. In many situations, you may be protected by section 230 of the Communications Decency Act for publishing the statements of your users. See the Primer on Immunity -- and Liability -- For Third-Party Content under Section 230 of the Communications Decency Act for details on this provision.
Website and blog operators get cease-and-desist letters based on non-copyright claims with some frequency. You should not assume that every threatening letter you receive is a DMCA takedown notice -- you need to look at the precise allegations and legal claims made in the letter and evaluate your next steps from there. It is not sufficient, for example, to conclude that a cease-and-desist letter relating to defamation or trade secrets law is somehow "defective" because it has not met the formal requirements for a notice of claimed copyright infringement under section 512. This will only muddle your thinking and could potentially exacerbate a delicate situation. For more on what to do if you receive a cease-and-desist letter, consult the Responding to Correspondence Threatening Legal Action section. For more on the confusion between other kinds of cease-and-desist letters and notices of claimed infringement, see our blog post, Not Every Cease-and-Desist Letter is a DMCA Takedown Notice.
This confusion may also work in reverse. There may be times when you receive a DMCA takedown notice for material that is technically not eligible for safe-harbor treatment, such as material you posted yourself. If it satisfies the complaining person that you take the material down, and you have no serious objection, you might want to do so.
It is becoming more and more common to embed videos from other online sources into an article or post in order to illustrate a point or get a laugh. This raises the question of whether you could be held liable for embedding an infringing video on your website or blog. The technical point to keep in mind is that an embedded video is just a link. So, there is no copy of the video being stored on your server, just the HTML code for the embed. Therefore, you may be able to claim the protection of the safe harbor found in 17 U.S.C. § 512(d), discussed above. For details see our blog post, Embedded Video and Copyright Infringement.
If your hosting service or other online service provider receives a DMCA takedown notice regarding your content, it ordinarily will respond by removing the complained-of material, and it will do this automatically without making any judgment about whether your content actually is infringing. However, the DMCA notice-and-takedown procedures provide you with protection from a wrongful claim of copyright infringement. The DMCA requires your service provider to notify you promptly when it removes any of your content because of a takedown notice, and you have the right to submit a counter-notice asking that the material be put back up. There is no specific time limit for submitting a counter-notice, but you should not delay unreasonably in doing so. If you send a counter-notice, your online service provider is required to replace the disputed content unless the complaining party sues you within fourteen business days of your sending the counter-notice. (Your service provider may replace the disputed material after ten business days if the complaining party has not filed a lawsuit, but it is required to replace it within fourteen business days.)
Before you send a counter-notice, you should consider carefully whether you are in fact infringing the complaining party's copyright. There are two reasons for you to consider this carefully. First, the counter-notice requires you to state, under penalty of perjury, that you have a good faith belief that your material was wrongly removed. You do not want to make this claim lightly because it might come back to haunt you. Second, if the complaining party has a good infringement claim, sending a counter-notice may trigger a lawsuit. If you are not prepared to stand up for your use of the copyright owner's work in a lawsuit, you should think twice about firing back a counter-notice. That said, copyright owners sometimes send bogus takedown notices that have no basis in law or fact, which are meant solely to intimidate the target. A prompt counter-notice can make these empty threats go away for good.
Some common bases for sending a counter-notice are that the complaining party does not own copyright in the work in question -- either because it is not covered by copyright or because someone else owns the copyright to it -- and that your use of the copyrighted work is a fair use. You should be extra careful when relying on a claim of fair use to justify sending a counter-notice. Determining whether something is a fair use often requires a complex, fact-specific analysis, and even lawyers have difficulty predicting what a court will say about fair use ahead of time. If you believe fair use might protect you, you should examine the four fair use factors carefully and consider contacting an intellectual property attorney.
To work effectively, your counter-notice must contain the following items:
17 U.S.C. § 512(g)(3). Chilling Effects has a great counter-notification generator to help you draft a valid counter-notice.
If you are not a U.S. resident, you must consent to the jurisdiction of a U.S. court in your counter-notice. If you never come to the United States and have no assets there, then this may not be a significant concession because a plaintiff would not be able to enforce a judgment against you in the U.S. Nevertheless, a plaintiff might be able to convince a court in your country to enforce a foreign (U.S.) judgment, and this proceeding might not give you the opportunity to make out your case. In any event, sending a counter-notice makes non-U.S. residents give up a powerful argument they would otherwise have -- namely, that a U.S. court does not have the authority to render a judgment against them. For these reasons, non-U.S. residents may not want to send a counter-notice unless they are willing to fight a copyright infringement claim in the U.S.
Section 512(f) of the DMCA creates liability for knowingly making false claims in a DMCA takedown notice or counter-notice. See 17 U.S.C. § 512(f). So, if you claim in a counter-notice that your content does not infringe the complaining party's copyrighted work while knowing this to be false, then the copyright owner can win damages from you, including court costs and attorneys' fees stemming from your wrongful counter-notice. Note, however, that this provision also works against a person or company sending a wrongful takedown notice. If someone claims in a takedown notice that you are infringing their copyrighted material while knowing this to be false, then you can win damages from them in a lawsuit. In recent years, the targets of wrongful takedowns have fought back and won damages and favorable settlements from individuals and companies sending bogus takedown notices. For instance, in Online Policy Group v. Diebold, Inc., 337 F. Supp. 2d 1195 (N.D. Cal. 2004), two students and their ISP sued voting machine manufacturer Diebold after it tried to use DMCA takedown notices to disable access to Internet postings of the company's leaked internal email archive. The court granted summary judgment to the students and ISP on their claim, finding that portions of the email archive were so clearly subject to the fair use defense that "[n]o reasonable copyright holder could have believed that [they] were protected by copyright." According to the EFF, Diebold subsequently agreed to pay $125,000 in damages and fees to settle the lawsuit. For another example, see Crook v. 10 Zen Monkeys in our legal threats database. Someone who has sent a baseless takedown notice about your content may be more inclined to back off if you remind him or her about section 512(f) of the DMCA, in addition to sending a counter-notice.
Often, the best strategy for dealing with speech you do not like is through more speech, rather than resorting to threats of legal action. In some situations, however, more speech may do little good, such as when someone copies your work and publishes it on another website without permission. For instance, a recent post on MediaShift's Idea Lab blog asks "How Do We Deal With Stolen Content?". In that post, Gail Robinson, the editor-in-chief of Gotham Gazette, relates how the Gazette's technical director has found many sites reprinting the full text of Gazette articles without permission, often using them with little or no attribution and sometimes even making the articles look like original material. This post prompted us to think about strategies for citizen media creators to protect their online work from copyright infringement. The law provides you with several tools for protecting your work, including sending DMCA takedown notices to online service providers that host websites or blogs that copy your work. Despite the potential usefulness of these tools, it is important to use them judiciously to protect your rights without unduly chilling the speech of others.
We cover the basics of copyright law elsewhere in this guide -- see especially What Copyright Covers and Using the Works of Others -- but suffice it to say that copyright protects your articles, posts, photographs, videos, and other works of creative expression from the time that they are fixed in a tangible medium of expression (e.g., from the time you first type your words into your computer or save a photograph or video as a digital file). At the very least, other websites that post your articles or other work without permission are infringing your rights to reproduce (i.e., the right to make a copy) and distribute them. Before taking any action, however, you should consider carefully whether the other site's use of your work could be a fair use. Wholesale copying of your work will usually not be fair use, but selective quoting and paraphrasing may be permissible, especially if it is for purposes of commenting on or criticizing your work. For details, see the Fair Use section in this guide. You should also consider whether you have granted a license to the public to reproduce and distribute the work, such as through a Creative Commons license posted on your site. For details on licensing, see the Copyright Licenses and Transfers section and its subsections.
If you determine that someone is infringing your copyrighted work and that it likely is not a fair use, the most straightforward route is to look for contact information on the offending site or blog and write the person an email stating that the site or blog is infringing your work and asking for it to be taken down. Your email need not be long and complicated; you just need to state the basics facts (i.e., the website is using your copyrighted work without permission) and what you want done about it (i.e., take it down). The Chilling Effects Clearinghouse has thousands of copyright cease-and-desist letters in its database that you can use as models.
If contacting the infringing website operator does not work, you might have better luck with the company that hosts the website or blog. You can use a tool like Who is Hosting This? to help determine the identity of the host. A hosting service or other online service provider has an incentive to comply with a takedown notice because the DMCA safe-harbor provisions give it a defense to copyright liability if, upon receiving such a notice, it expeditiously removes infringing material posted at the direction of its clients. For details, see Protecting Yourself Against Copyright Claims Based on User Content. In order for a takedown notice to be effective, you must send it to the registered copyright agent of the host or other online service provider you want to contact. The U.S. Copyright Office maintains a directory of designated agents, and the provider's website will often list the designated agent in its "Copyright Infringement Policy," "DMCA Policy," or a like posting. In addition, a takedown notice must contain the following items in order to be valid:
17 U.S.C. § 512(c)(3)(B). If your takedown notice meets these formal requirements, then the host or other online service provider has to expeditiously remove the complained-of material if it wants to maintain its immunity from copyright liability. After it does so, however, the person whose work has been taken down may send a counter-notice to the service provider. If this happens, the service provider will notify you about the counter-notice. From this point, you have fourteen business days to file a lawsuit and notify the service provider that you have done so, or else the service provider is obligated to put the disputed material back up. See 17 U.S.C. § 512(g)(2).
Note: If both the website operator and the hosting service are outside the United States, then you may not have luck via these routes.
Another strategy you can adopt to help protect your work online is to register your website content with the U.S. Copyright Office. Registration is most valuable, however, only if you would be willing to go through with filing a lawsuit. The good thing about registration is that, if you sue someone for infringement and win, then the court can award you statutory damages (damages that are set by statute, so you don't have to prove how you were actually injured, which can be hard) and attorneys' fees. In a sense, registering your work puts some teeth behind the letter-writing strategies discussed above. If you are interested in this route, please consult the Copyright Registration and Notice section of this guide and Sarah Bird's excellent posts about registering website content, Sample Forms and Strategies for Registering Your Online Content and Why You Should Go to the Trouble to Register Your Copyright When Everyone Tells You That Your Work Is Protected Automatically. Again, let me emphasize that registration really only helps if you are willing to sue, which many are not willing to do.
A trademark is a word, phrase, symbol or other indicator that identifies the source or sponsorship of goods or services. If an individual, business, or other organization uses a trademark to sell or promote its goods or services, then it can gain the right to exclude others from using the trademark in connection with similar goods or services. Owners of famous trademarks, like "Windows," "McDonald's," or "Google," may also stop others from using them in connection with even dissimilar goods or services. Trademark law is a branch of intellectual property law that is governed by both federal and state laws. By far the most important trademark law is the federal Lanham Act; because state laws generally follow the Lanham Act, this guide focuses on it exclusively.
A basic understanding of trademark law is important to your online activities for two reasons. First, as a provider of goods or services (e.g., online publishing, educating the public, newsreporting), you may want to use trademarks to identify your work to the consuming public. In that case, you'll want to understand how to protect your legal rights, so that others do not unfairly take advantage of your reputation and the positive association you've built up between your trademark(s) and your work. Second, you should understand how you can properly make use of someone else’s trademark for purposes of news reporting, commentary, and criticism. This overview page and the more detailed sections that follow will help you to understand both of these important aspects of trademark law.
Common examples of trademarks include "Yahoo!" in its characteristic red font, YouTube's slogan "Broadcast Yourself," and the venerable "New York Times."
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Many trademarks use a stylized font or logo, but a trademark can be as simple as plain text, such as "iPod," or a domain name, such as "hotels.com," so long as the trademark owner uses it to identify its products or services. Trademarks are not limited to traditional marks like text, images, or symbols, but can be anything that acts as a source-identifier for goods or services. Examples of such non-traditional trademarks are the color brown for a shipping company (a trademark of UPS), the sound of chimes for a television channel (a trademark of NBC), and the scent of plumeria for yarn. For more information about what can constitute a trademark, see the section on What Trademark Covers.
Not all trademarks receive the same degree of protection. They differ in strength according to their distinctiveness. Generally, the more unique or distinctive the mark is, the greater protection it receives. On a spectrum of decreasing distinctiveness, marks are classified as: (1) fanciful, (2) arbitrary, (3) suggestive, or (4) descriptive.
Fanciful marks (made-up words like "Kodak"), arbitrary marks (existing words used in a way unrelated to their common meaning, like "Apple" for computers), and suggestive marks (those that hint at a quality or aspect of the product or service, like "Coppertone") are considered inherently distinctive.
Descriptive marks, or marks that describe the product or service directly such as "The Container Store," are not inherently distinctive and require the showing of "secondary meaning" in order to be entitled to trademark protection. Secondary meaning is acquired when consumers associate a descriptive mark with a particular source. Marks that contain a person's name, such as "Dell Computers," or describe a geographic location, such as "Kentucky Fried Chicken," are also considered descriptive marks.
Lastly, a generic word can never receive trademark protection. A generic word is the common name for the product or service to which it attaches -- for example, calling an email service provider "email" would be a generic mark. For more information on the range of protectability of trademarks, see the section on Naming Your Business: Choosing a Name Capable of Trademark Protection.
There are two ways to acquire rights or "ownership" in a trademark. The first is by simply using the trademark in commerce in connection with your goods or services. Trademark rights acquired through use in commerce (so-called "common law" rights) are limited to the geographical area in which the trademark has been used or is reasonably expected to be used. This limitation does not typically arise when a trademark is used online because of its wide accessibility.
The second way to acquire rights in a trademark is through federal trademark registration. There are several benefits to federally registering your trademark. Perhaps most importantly, it puts others on constructive notice that you are using and claiming rights in the mark. This notice not only discourages others from using your mark, but also creates certain presumptions in your favor in the event of a lawsuit to enforce your trademark rights. Registration is fairly expensive, however, so you will want to consider whether the benefits of registration justify the expense. View our Trademark Ownership page for more information about obtaining trademark rights, registering a trademark, or protecting your rights once established. In addition, our section on Trademark Law and Naming Your Business provides specific information on choosing a name for your website, blog, or organization.
The primary goal of trademark law is to protect consumers from confusion about the source or sponsorship of goods and services. It does this by allowing a trademark owner to prevent others from using confusingly similar marks to attract customers. In other words, the law aims at helping consumers accurately identify the products and services that they want to buy and protects them from deceptive market practices. To illustrate, imagine a consumer - Sally. If Sally buys a new computer that is labeled with the distinctive Dell logo, she can be fairly sure that the computer was made by Dell, Inc. and nobody else. She can rely on Dell's reputation without worrying whether the computer was actually made by Dell or some knockoff, lower-quality company. Trademark law prohibits this kind of confusing commercial activity, and allows Dell to sue companies who engage in it for trademark infringement. In recent years, Congress has expanded the scope of trademark law to encompass harms other than consumer confusion, including dilution and cybersquatting, that we discuss below.
Federal trademark law protects against three distinct unlawful activities:
Although trademark law provides trademark owners with a powerful tool for protecting the integrity of their trademarks, the law does not permit them to silence legitimate reporting, commentary, criticism, and artistic expression. As one court put it: "Trademark rights do not entitle the owner to quash an unauthorized use of the mark by another who is communicating ideas or expressing points of view." L.L. Bean, Inc. v. Drake Publishers, Inc.,811 F.2d 26, 29 (1st Cir. 1987). Because of the important role that trademarks play in our cultural vocabulary, "much useful social and commercial discourse would be all but impossible if speakers were under threat of an infringement lawsuit every time they made reference to a person, company or product by using its trademark." The New Kids on the Block v. News America Publ'g, 971 F.2d 302, 306 (9th Cir. 1992).
The good news for media creators is that the courts have careved out protections for the public's right to use the trademarks of others in criticism, commentary, news reporting and other forms of noncommercial expression. This point is of special importance not only to journalistic sites, but also to gripe sites that focus criticism on particular companies and often use the companies' trademarks in their domain names. However, while the law is solicitous of your rights of free expression, the legal doctrines in this area are complicated, and so it may be difficult to understand just how the law protects your use of a trademark in a particular act of reporting, commentary, criticism, and the like. If you want to make use of another's trademark in the course of these kinds of activities, you should consult the section on Using the Trademarks of Others.
Finally, if you host user-generated content, such as user comments, you'll want to consider whether trademark law will hold you responsible for materials posted on your website or blog by your users. Unfortunately, the protection provided by the "safe harbors" of the Digital Millennium Copyright Act and Section 230 of the Communications Decency Act generally do not protect you from trademark claims. For details, see Trademark: User-Generated Content.
This guide is not a full treatment of trademark law, but it does provide what we hope is a good understanding of how to deal with the legal issues surrounding trademarks. In the sections that follow, we lay out further specifics about the principles described above.
Trademark law applies to the use of words, phrases, symbols, slogans and other "marks" to identify the source or sponsorship of goods or services. The Lanham Act, which is the federal statute that covers trademark law, makes it unlawful for you to use a trademark in a manner that confuses consumers about the source or sponsorship of goods or services. Creating this kind of consumer confusion is called trademark infringement. Trademark law's primary purpose is to protect consumers from confusion in making purchasing decisions, and it does not protect against confusion generally. If you use a trademark in a way that does not create consumer confusion, you cannot be held liable for trademark infringement.
But, in 1996, Congress expanded federal trademark law so that it now covers some uses of trademarks that do not create consumer confusion. The federal dilution statute, found at 15 U.S.C. § 1125(c), gives the owner of a "famous" trademark the ability to bring a federal lawsuit against someone for trademark dilution. Trademark dilution occurs when someone other than the rightful owner of a famous mark uses it in a manner that diminishes its power to identify the trademark owner's goods or services regardless of consumer confusion about source or sponsorship. The dilution statute does not apply to noncommercial uses of a famous trademark, such as for news reporting, criticism, commentary, and parody.
The following sections go into greater detail to explain what kinds of things can serve as a trademark, and what activities qualify as trademark infringement and trademark dilution.
A "trademark" is an intellectual property right in a particular "mark" used to used to identify the source or sponsor of a good or service. (Don't be intimidated by the word "mark" -- it is just a generic term for the various things that can qualify as a trademark, which we are about to describe.) A number of things can serve as a trademark (from Chilling Effects):
Other types of trademarks are possible -- the key element is that the word, phrase, symbol, or design element act as a source-identifier for goods or services. You can think of it as very similar, if not identical, to the concept of branding. A trademark right is limited. It only applies to those goods or services actually identified with the trademark. A valid trademark entitles the trademark owner to stop others from selling similar goods or services using the trademark or confusingly similar trademarks; it does not entitle a trademark owner to completely lock up a word, phrase, or image and remove it from society's common vocabulary.
Common examples of trademarks include the word "Kodak" for cameras and the familiar Apple logo for computers, music-downloading services, iPhones (another trademark), and iPods (yet another). Other examples include the Nike "swoosh" for sneakers, the "golden arches" for fast food, the Starbucks mermaid for coffee, and slogans like "There are some things money can't buy -- for everything else there's MasterCard" and "Priceless" for credit-card services. A good example of trade dress is the the particular shape of a Coca-Cola glass soda bottle. On the Internet, trademark protection may apply to domain names, websites names, website logos, and the "total image" of a website, among other things. Again, the essential ingredient for trademark protection is that the name, phrase, symbol, or whatever serve to identify the source of a good or service. Some common Internet trademarks include the word "gmail" and domain "gmail.com" for email services, the domain "nytimes.com" for online news, the name "TechCrunch" for electronic publishing services, and the name "eBay" and its familiar logo for online auction services. In addition, website operators can protect the overall "look" of their websites as trade dress, if they can establish that consumers uniquely associate that "look" with their goods or services.
Not all words, phrases, symbols, and the like can serve as a trademark, however. The primary requirement for a valid trademark is that the mark be distinctive. For details on what kinds of words and phrases qualify as distinctive, see Naming Your Business: Choosing A Name Capable of Trademark Protection. Although the discussion focuses on names, the same points apply to other types of trademarks like symbols, words, and slogans.
For more information on registering and acquiring ownership of a trademark, please see the Trademark Ownership section.
Trademark law gives trademark owners the ability to bring a lawsuit for trademark infringement and trademark dilution. These two distinct legal claims are discussed below. Trademark law also creates a legal claim for cybersquatting, which is discussed separately in the Cybersquatting section of this guide.
An owner of a valid trademark may sue an individual or company for trademark infringement when that individual or company uses an identical or confusingly similar mark in connection with goods or services. The Lanham Act contains two statutory provisions authorizing an infringement lawsuit. 15 U.S.C. § 1114 gives the owner of a registered trademark the right to sue for infringement of that trademark. 15 U.S.C. § 1125(a) gives the owner of an unregistered trademark the right to sue for infringement of that trademark. For details on how trademark ownership arises via registration and otherwise, see Trademark Ownership. A trademark owner that wins a trademark infringement lawsuit can recover money damages and get an injunction barring the defendant from continuing its infringement. A court may also force a losing defendant to pay the trademark owner's attorneys' fees under "exceptional circumstances" -- basically, when the court determines that the defendant willfully or intentionally infringed the trademark.
The key to an infringement claim is a likelihood of confusion between the defendant's use of a mark and the trademark owner's use of its trademark. While different courts use slightly different standards to make this comparison, the factors most commonly used to determine the likelihood of confusion are as follows:
The more similar the marks used, the more likely that consumers will be confused. In addition, confusion tends to arise when the plaintiff's and the defendant's goods or services are similar and they use similar marketing channels. The rationale is that, if the parties' goods or services are dissimilar, the ordinary consumer will not be confused about whether the goods or services come from the same source. For example, given the existence of Pepsi brand soda, someone selling soft drinks under a slightly different brand name, such as "Pipsi" or "Peps," would almost certainly lose a trademark infringement lawsuit. On the other hand, a company selling pet grooming services under the "Pipsi" or "Peps" brand name would be more likely to successfully defend against an infringement suit because ordinary consumers would probably not assume that Pepsi had moved into the pet grooming business. Needless to say, this example is a simplification of what you might see in a real case. The multi-factor test can result in complex line drawing, and it is often difficult to tell whether a certain use of a trademark will or will not infringe a trademark owner's rights. This is one of the primary reasons why trademark lawsuits are expensive to defend.
When it comes to online publishing, there are a few points to remember. First, a plaintiff cannot win an infringement lawsuit without proving that the defendant used a confusingly similar mark in connection with the sale, offering for sale, distribution, or advertising of any goods or services. If you operate a purely noncommercial website (i.e., you do not sell any goods or services, and you don't host advertising or solicit donations in connection with your services), then you may be able to defeat a lawsuit without even getting to the likelihood of confusion question. We discuss this issue and other possible defenses to an infringement lawsuit in the Using the Trademarks of Others section.
Second, even if you do sell advertising or solicit donations, you primarily need to worry only about trademarks used by businesses or individuals doing work that is similar to yours. Before adopting a trademark (whether a domain name, a title for your blog, a logo, or whatever), you should look around at other websites doing work similar to yours to see if they are using the same or similar trademark. When you consider whether something is "work similar to yours," take a broad view. This could be anything from a journalism site, a blog, some kind of interactive web service, something tech-y with a heavy online presence, etc. Keep in mind that there is little certainty in this area, and you will just have to do your best in making the call. There is one important caveat. As discussed below, owners of famous trademarks can protect their trademarks with a dilution claim, even if there is no likelihood of confusion. So you may want to avoid using famous trademarks altogether.
Third, if you use a trademark owner's trademark in the process of criticizing, commenting, or reporting on the trademark owner, its activities, or its goods or services, you will have a good argument that no reasonable consumer would be confused into thinking that the trademark owner is the source or sponsor of your work. Take news reporting, it stretches credulity to imagine that consumers get confused about source or sponsorship when the New York Times reports on Wal-Mart's most recent earnings release or Ford's new hybrid car. The lack of confusion should be even more clear when it comes to criticism. For example, in Lamparello v. Falwell, 420 F.3d 309 (4th Cir. 2005), the United States Court of Appeals held that there was no likelihood of confusion between a website criticizing the religious and social views of Reverend Jerry Falwell and the Reverend's own services, even when the website made use of the domain name "www.fallwell.com." The court noted, in relevant part: "After even a quick glance at the content of the website at www.fallwell.com, no one seeking Reverend Falwell's guidance would be misled by the domain name-www.fallwell.com-into believing Reverend Falwell authorized the content of that website. No one would believe that Reverend Falwell sponsored a site criticizing himself, his positions, and his interpretations of the Bible."
An owner of a famous trademark may sue an individual or company for trademark dilution when that company or individual uses its trademark in connection with goods or services in a way that is likely to dilute it. See 15 U.S.C. § 1125(c). A trademark owner that wins a trademark dilution lawsuit can get an injunction barring the defendant from continuing its dilution, and in rare circumstances it can obtain money damages and attorneys' fees. To make out its case, the trademark owner need not show that the defendant's use of its trademark causes a likelihood of consumer confusion. The parties to the lawsuit need not be in competition, and the goods or services in question need not be similar. Importantly, the trademark in question must be "famous," which means pretty much what it sounds like. If an ordinary person would recognize a trademark as a household name, then it probably qualifies as famous.
There are two distinct types of dilution, blurring and tarnishment. Blurring refers to the loss of uniqueness of a trademark because of an association with goods or services other than those of the trademark owner. When Congress passed the statute, it indicated that the law would apply to the sale or advertisement of goods like hypothetical "Kodak Pianos," "Buick Aspirin," and "Dupont Shoes." Note that blurring can occur even if no reasonable consumer would believe that Kodak had started making pianos or that Buick had started making aspirin. Blurring is an extremely expansive concept -- it could encompass almost any unauthorized use of a famous trademark, so long as the defendant used the mark to identify its own goods or services, rather than to engage in commentary, criticism, news reporting, and like activities. Tarnishment occurs when the defendant's use of the famous trademark harms its image in the minds of consumes, such as by associating it with immoral or scandalous goods or services. For example, the lingerie seller Victoria's Secret sued a sex shop called "Victor's Little Secret" for tarnishing its famous trademark.
Because of the potential breadth of trademark dilution, Congress wanted to ensure that trademark owners could not use the law to silence speech protected by the First Amendment. To this end, Congress created specific exceptions to the dilution statute for the following uses of a trademark:
These exclusions provide a good deal of protection for citizen media creators, but the courts have yet to provide exact or consistent meanings for many of these terms, such as "fair use", "news reporting," and "noncommercial use." In the most favorable cases, courts have determined that the dilution law does not apply to any speech that does more than propose a commercial transaction. See, e.g., Mattel Inc. v. MCA Records, 296 F.2d 894, 906-07 (9th Cir. 2002); Mattel Inc. v. Walking Mountain Prods., 353 F.3d 792, 812 (9th Cir. 2003); Smith v. Wal-Mart Stores, No. 1:06-cv-526-TCB, slip op., at 81-83 (N.D. Ga. Mar. 20, 2008). Under this view, you could not be held liable for using a famous mark in nearly all forms of criticism, commentary, parody, and news reporting. But not all courts have embraced this view. We take up these issues and other defenses to trademark infringement and dilution in the Using the Trademarks of Others section.
There are three ways to secure your rights in your trademark: (1) use the mark in commerce in connection with a good or service; (2) register the trademark with your state; or (3) register the trademark with the United States Patent and Trademark Office ("USPTO").
Once you use a trademark in commerce in connection with a good or service, you begin to acquire what are called "common law" rights in the mark, so long as it is not confusingly similiar to or dilutive of another's mark. The common law rights you gain in a trademark through use are limited to the geographic area in which you have actually used the mark, or those areas into which you have demonstrable plans to expand your use (the so-called "zone of natural expansion"). This limitation is less important for online ventures, however, as availability of your services over the Internet gives rise to a presumption of national trademark rights. It is important to note that if someone else is already using a confusingly similiar mark, you will be unabale to obtain rights in your mark and could potentially be liable for trademark infringement or dilution. If you intend to obtain rights in a trademark through simple use in commerce, then you must be sure to do an effective search of existing trademarks before you begin using it in connection with your good or service. Please see our section on Naming Your Business: Searching for the Trademarks of Others for details. For more information on how to acquire trademark rights, see Sarah Bird's excellent post, Trademark Basics: Be First in Your Market, Be Distinctive, and Don't Confuse the Consumer.
You may also choose to register your trademark with your state or with the United States Patent and Trademark Office, but you are not required to do so in order to bring a lawsuit to protect it against infringement or dilution. State registration is likely to be both cheaper and easier than federal registration, but is probably not the best option for online activities, which by definition have a national and international scope. However, if you would like to find out more about your state's registration process, you can contact your state authority responsible for trademark matters.
Registering a trademark with the USPTO puts the country on notice that you are using a certain mark, and also provides additional protections and procedural benefits if you need to litigate your rights. However, this process is fairly long (usually taking a year or more) and potentially expensive (the fees start at $275). We provide more information about the federal registration process below.
Benefits of Federal Registration
As noted above, federal trademark registration is not required for you to protect your trademark. However, registration provides some advantages. Specifically, registering a trademark with the USPTO provides the following benefits:
Because federal registration is expensive, you'll want to weigh these benefits against the out-of-pocket costs of obtaining a registration.
How to Register
Once you have decided to federally register your trademark, you can file the necessary forms to apply for federal trademark registration with the United States Patent and Trademark Office online. The cost is between $275-375 per mark for each International Class in which you seek registration, depending upon the filing method you chose.
The USPTO estimates that filling out the form should take about 15-20 minutes, although first time filers are likely to take longer. A federal application must contain at least four things, in addition to the filing fee: (1) the owner's name and address, (2) a clear drawing of the mark (which can be automatically generated from text if you do not have a logo); (3) a description of the goods or services for which the mark is or will be used and the corresponding International Class number(s); and (4) the filing basis.
You can register your trademark for use in connection with more than one set of goods or services, but you will have to pay an additional filing fee if the goods and services you list fall into more than one International Class. The USPTO has available a searchable index of identifications for goods and services that they recommend you use for your application, but you can also type in something else if your product or service does not fit into one of these categories. If your business does not clearly fall within one category of goods or services, you may want to consider filing in more than one class, as this will would give you the greatest protection and flexibility. The downside to seeking registration in more than one class, aside from the additional filing fees, is that you are more likely to encounter a conflict with someone else who is using the mark or a similar one in another field or industry. Furthermore, if you do expand in the future, you can apply for a new registration at that time (unless someone else has already registered the mark in that area).
There are two different filing bases for a new trademark application: use based, or intent-to-use. If you have already begun using the trademark in interstate commerce, you should file a use based application. To do so, in addition to filling out the application, you must supply the USPTO with a specimen showing the mark as it is used in connection with your goods or services, as well as the date(s) on which you first used the mark anywhere and in interstate commerce. If you have not yet begun using the trademark, you should file an intent-to-use application. You will be required to submit a specimen and date of first use later in the application process before your mark is allowed to register.
If this process sounds too complicated for you, you can hire an attorney to do it. Trademark registration is usually fairly straightforward for attorneys who specialize in it, so it is relatively inexpensive.
Within about 3-6 months after you file the registration forms an attorney with the USPTO will examine and research your application. There are several categories of marks that the USPTO will refuse to register, including "immoral, deceptive, or scandalous" marks (such as those including foul language), those that disparage or falsely imply a connection to other people or entities, and marks that are confusingly similar to others that are already registered.
The USPTO attorney may contact you to resolve any issues in your application, by issuing what's called an "Office Action." If you receive an Office Action, you will have six months in which to respond to any issues raised by the examining attorney. If the issues raised in the Office Action are too complex, you may want to hire an attorney to draft your response.
If the USPTO approves your application, it will publish your trademark in the Official Gazette, and anyone who believes that they would be damaged by its registration (such as a senior user of a confusingly similar mark) will have thirty days in which to oppose registration of the mark. If no one opposes (or requests an extension of time to oppose) within those thirty days, the USPTO will either approve your mark for registration (if you have already submitted an acceptable specimen of use) or issue a Notice of Allowance (if your application is still based on an intent-to-use). If the USPTO issues a Notice of Allowance, you will have six months from the date on which it was issued to either submit an acceptable specimen, or request an additional extension of time in which to do so. You can request up to five 6-month extensions of time in which to submit a specimine of use. All told, the registration process can easily take 1-2 years, but once it is approved your rights date back to the day on which you filed your application.
For additional details on registering a trademark, see the Chilling Effects FAQ on Trademark.
Trademark rights can last indefinitely so long as the trademark owner continues to use the mark in commerce to identify goods or services. The term of a federal trademark registration is 10 years, with 10-year renewal terms upon filing an affidavit of continued use, along with a specimen of use. In addition, between the fifth and sixth years after the date of initial registration, the registrant must file an additional affidavit confirming that the mark is still in use in commerce in order to maintain the registration. If no affidavit is filed, the registration is canceled. At this time, if the mark has been in continuous use in interestate commerce for five years following the date of registration, the owner can file an affidavit of incontestibility that, if accepted by the USPTO, will significantly narrow the grounds upon which a third party can seek to have the registration cancelled.
In addition to renewing your registration (should you choose to register), you need to take some additional steps to make sure that you do not lose your trademark rights:
You can choose to include a trademark notice next to your trademark, but you are not required to do so in order to protect the mark. A trademark notice indicates to others that you claim ownership of the trademark in connection with the goods or services in question, warning them against possible infringement. Any time you believe you have a rightful claim to a mark you may designate the mark with a TM (for goods) or SM (for services). You do not have to register the mark to use these notices. In addition, if you choose to seek federal registration of your trademark, you can use these notices during the registration process. If you obtain a federal registration, you will probably want to use the more powerful ® notice, which can only be used after a successful registration with the USPTO. Even then, you can only use the ® notice in connection with the goods or services listed in your application for registration.
An important question for bloggers, citizen media creators, and other online publishers is whether trademark law limits their ability to engage in reporting, commentary, criticism, and other forms of political, social, and artistic expression. There is a threat, should trademark law become too robust, that companies and other trademark holders might use it to silence commentary, criticism, and unfavorable reporting. Such a "right to control language" would offend the First Amendment and seriously undermine the quality of public debate on issues of fundamental importance. The good news is that courts have consistently protected the public's right to use the trademarks of others in order to engage in criticism, commentary, news reporting and other forms of noncommercial expression. As long as what you're doing is really commentary, criticism, or reporting (etc.), and not a surreptitious attempt to sell goods or services, or to deceptively attract customers or readers you otherwise would not have had, you should be able to defeat a trademark claim brought against you. The bad news is that the law relating to this intersection of trademark law and free expression is complex and confusing. Neither Congress nor the courts have developed a simple and clear rule that protects your rights to use the trademarks of others for free speech purposes; instead they've developed a complex array of defenses to trademark claims that even lawyers find difficult to untangle. This makes it hard for a defendant to get a trademark lawsuit dismissed quickly with little expense, and it leaves bloggers and citizen media creators vulnerable to intimidation through the unscrupulous use of cease-and-desist letters. (The ideas here are based on William McGeveran's excellent article, Four Free Speech Goals for Trademark Law.)
The following sections briefly explain the legal protections available to you and apply them to some of the common situations you might face in the course of your online activities.
As discussed in detail in What Trademark Covers, the main purpose of trademark law is to avoid consumer confusion, and the fundamental question in any trademark infringement lawsuit is whether the defendant's use of a trademark creates a likelihood of confusion between the defendant's goods or services and the plaintiff's. Therefore, an obvious first line of defense in any trademark infringement lawsuit is that there is no likelihood of confusion. As a general matter, if you are reporting on, commenting on, or criticizing a trademark owner, most ordinary consumers will not be confused about whether the company or organization is the source or sponsor of your work. You can reduce the likelihood of confusion further by avoiding a website design that looks like the trademark owner's site or resembles its product packaging, and you should never festoon your website with a company's logo (but isolated use when relevant to a discussion is OK). You might also place a disclaimer on your site saying that you are not affiliated with the company in question and providing a link to its official site, but this usually isn't necessary unless you operate a gripe site or fan site focusing on the trademark owner. (If you are just writing a post about Company X, there is no need provide a disclaimer just because you use the words "Company X.")
If someone threatens you with a lawsuit or sues you for trademark dilution, then a lack of consumer confusion will not help you. Here, one obvious line of defense is to argue that there is no likelihood of dilution. Federal and state dilution law protects a trademark owner against the whittling away of the distinctiveness of its famous trademark by association with other goods or services; it does not give a trademark owner the right to shut down all unflattering speech about it. If you do not associate a famous trademark with your own goods or services, then there can be no dilution (or at least that's how your argument goes). A court might agree that, by definition, using a trademark for purely expressive purposes (e.g., criticism, commentary, reporting, parody) is not a use in connection with a good or service and thus cannot cause dilution. Your argument on this point is especially strong if you do not host advertisements on your website and do not link to other websites selling goods or services (especially to your own commercial websites). But you might win this point even if you sell advertising, so long as you use the trademark in criticism, commentary, reporting, or other purely expressive activities, and not in advertising or other promotion of your site. This argument overlaps with one of the defenses discussed below -- noncommercial use.
In addition to these general arguments against infringement and dilution, there are a host of other free expression defenses to a trademark claim. This is where the legal terrain gets complicated and the terminology gets a bit arcane. If the explanations below make your eyes glaze over, feel free to skip down to the next section, Some Free Expression Uses of Trademarks, where we explain how these defenses work in practical situations. The important free expression defenses are as follows:
So how does all this apply in the real world? This section gives some guidance on how the free expression defenses may apply to your activities.
News Reporting
Trademark law does not let a trademark owner exert its trademark rights to stop news reporting about it or its products or services. You see proof of this everyday on the front pages of newspapers, the homepages of news websites, and countless blogs. Mainstream reporters and non-traditional journalists routinely report on earnings announcements, job lay-offs, and accounting scandals without worrying that they are infringing or diluting the trademarks of the companies and organizations they report on. There are several legal bases for this result: there is no risk of confusion between the news source and the trademark owner; nominative fair use protects this use of the trademark owner's mark; and the federal dilution statute expressly exempts "news reporting and news commentary" from a dilution claim. See 15 U.S.C. § 1125(c)(3)(B). As noted above, one court has held that a blogger's critical commentary on a company qualified as "news reporting and news commentary." See BidZirk, LLC v. Smith, 2007 WL 3119445 (D.S.C. Oct. 22, 2007). This is just one case, however, and it remains to be seen how the courts will define "news reporting and news commentary" in the face of different kinds of new media that blur the distinction between reporter and consumer of news.
There is a wrinkle. It is a common practice for bloggers to use the logo of a company when they post about it. For example, TechCrunch often does this:
Although the practice is widespread, it is beginning to draw fire from trademark owners. As noted above, late last year a representative of Avis requested that law blogger Eric Turkewitz cease-and-desist from using its logo in a post about a lawsuit involving the company (see Turkewitz's post). The law is not entirely clear on this point. The nominative fair use defense may not apply because using the logo is not strictly necessary for describing the trademark owner or its products or services. Nevertheless, courts would probably find that use of a logo in the process of news reporting is not likely to confuse consumers. Without confusion, there is no trademark infringement. And, as noted above, there is a categorical exemption from dilution claims for news reporting. So, it looks like using logos for illustration and visual stimulation during news reporting is OK. The one possible weakness is that the logo is not necessarily relevant to the substance of the news reporting, so a court might view its use as outside the news reporting function. Still, confusion and dilution seem highly unlikely in this context.
Commentary and Criticism
Trademark law does not permit a trademark owner to use its trademark rights to silence commentary and criticism. As with news reporting, courts recognize the important First Amendment values at stake and usually deny efforts by trademark owners to encroach on legitimate commentary and criticism. There are several legal bases for this result: there is no risk of confusion between the commentator and the trademark owner, and nominative fair use may protect this use of the trademark owner's mark. Additionally, courts are likely to find that your use of a trademark in commentary or criticism is "not in connection with a good or service" and "noncommercial" (the argument is especially strong for the latter category). But note that some courts may find your use of a trademark for criticism and commentary to be commercial if you host advertising or link to commercial websites. In any event, to defeat a trademark dilution claim, you do not even need to show that your use is noncommercial. The federal dilution statute creates a categorical exemption for "criticizing . . . or commenting upon the famous mark owner or the goods or services of the famous mark owner." 15 U.S.C. § 1125(c)(3)(A)(ii).
The issue of logos comes up with commentary and criticism as well. As with news reporting, using a logo to illustrate or liven up criticism or commentary is probably OK from a trademark perspective. See above for details.
Domain Names
Using someone else's trademark in your domain name is a risky proposition because courts do not necessarily extend the same protections to domain names as they do to commentary, criticism, and news reporting. Early on in the development of Internet law, many cases held that websites could not use a company or organization's trademark in a confusingly similar domain name, even if the website accessible under that domain name criticized the trademark owner, and its content made clear that it was not sponsored by or affiliated with the trademark owner. The reasoning was that a critic has no free speech right to confuse Internet users into thinking that they are entering someone else's website in order to expose them to a critical message.
However, there is a new trend in the cases towards allowing "gripers" and other critics to use domain names that are nearly identical to the trademark owner's trademark, so long as the underlying website does not confuse Internet users into thinking it is affiliated with the trademark owner and it does not engage in commercial activity. For example, in Falwell v. Lamparello, 420 F.3d 309 (4th Cir. 2005), the Fourth Circuit Court of Appeals denied a trademark infringement claim based on the defendant's use of the domain name "fallwell.com" in connection with a website criticizing the social and religious views of the Reverend Jerry Falwell. The court held that it "must look not only to the allegedly infringing domain name, but also to the underlying content of the website" and concluded that, when viewed in this context, the defendant's use of the domain name created no likelihood of confusion. In TMI Inc. v. Maxwell, 368 F.3d 433 (5th Cir. 2004), the Fifth Circuit Court of Appeals denied a trademark dilution claim based on the defendant's use of a developer's trademarked name in her gripe site's domain name. The court determined that the defendant's site was noncommercial because it was dedicated to critical consumer commentary and did not host advertising or links to commercial sites. The court did not treat the domain name as separate from the underlying website, and so it dismissed the entire dilution claim.
It is still not clear which view of the law will prevail. One way to help yourself avoid trademark liability is to include something in the domain name itself that makes it clear that you are criticizing or commenting on the trademark owner, such as a "sucks" designation. This brings the domain name back within the category of commentary and criticism and makes your First Amendment arguments more persuasive. For example, in Taubman v. Webfeats, 319 F.3d 770 (6th Cir. 2003), the court held that the defendant's use of the domain name "taubmansucks.com" was "purely an exhibition of Free Speech, and [federal trademark law] is not invoked." Similarly, in Bally Total Fitness Holding Corporation v. Faber, 29 F. Supp.2d 1161 (C.D. Cal. 1998), the court held that the defendant's use of "ballysucks" in a sub-domain for a website engaging in critical commentary did not constitute trademark infringement or dilution.
Domain name disputes often involve cybersquatting claims under the Anticybersquatting Consumer Protection Act. For details, see the Cybersquatting section.
Gripe Sites and Fan Sites
The two sections immediately above outline most of the legal issues related to running a gripe site. Your use of a trademark owner's trademark in commentary and criticism on the website itself is largely protected because there is little likelihood of confusion, because use of the trademark may be nominative fair use, and because there is a statutory exemption from dilution claims for "criticizing . . . or commenting upon the famous mark owner or the goods or services of the famous mark owner." You can help your case by including a prominent disclaimer on your website, making clear that your site is not "official" and providing a link to the trademark owner's site. Such disclaimers are not foolproof, but they go a long way towards reducing consumer confusion. Use of the trademark owner's mark in a domain name is more risky, but you may reduce this risk by including some critical remark like "sucks" in the domain itself. This may make it harder for you to gain the attention of Internet users trying to find the trademark owner's official website, but this may be the price you have to pay for more security from a trademark claim. In addition, if you refrain from hosting advertising and linking to commercial websites, including the websites of companies that compete with the trademark owner, your case is even better. Gripe site cases often involve cybersquatting claims, so you will want to look at the Cybersquatting section of this guide for additional information.
The legal issues surrounding fan sites are more uncertain. In some cases, you may be able to characterize the content of your fan site as "news reporting," if what you are doing is following the activities or new products and services of the trademark owner. In that case, all the protections for news reporting discussed above would apply. Also, you may have a case that your fan site's use of the trademark owner's trademark is a nominative fair use, so long as the appearance of your site does not create confusion about whether or not you are sponsored by or affiliated with the trademark owner. Again, a prominent disclaimer making clear that your site is not "official" and providing a link to the trademark owner's site may help your case, but is not necessarily foolproof. When registering a domain name, you may want to include some term that makes clear that you are running a fan site, such as a "fans," or you may want to avoid the trademark altogether. See the Cybersquatting section for additional details on domain names. As always, if you refrain from hosting advertisements and linking to commercial websites, you have a better chance of defending against a trademark lawsuit.
Fan sites often raise other legal issues, such as copyright infringement and right of publicity claims. For additional information, consult the copyright section and our forthcoming section on rights of publicity and misappropriation.
Parody
Courts generally recognize that parody is entitled to First Amendment protection in a trademark infringement lawsuit, and the federal dilution statute expressly exempts parody from dilution claims. See 15 U.S.C. § 1125(c)(3)(A)(ii). In addition, a number of courts have held that parodies are "noncommercial" uses exempted by the federal dilution statute. However, simply labeling your work "parody" will not be enough to defeat an otherwise legitimate claim of trademark infringement or dilution. The courts take a relatively narrow view of what qualifies as a "successful" parody. A parody must walk the fine line between evoking the original (i.e., the trademark) and making clear that it is not the original (i.e., it is something new commenting on or criticizing the trademark owner). Moreover, the parody must be aimed at the trademark owner or its goods or services, not at an unrelated third party or issue. In the final analysis, if your parody confuses consumers, and they believe that the trademark owner is the source or sponsor of the parody, then you may be liable for infringement or dilution.
Putting your parody in a commercial context -- like using it in an advertisement or fake advertisement, or selling merchandise like coffee mugs or t-shirts emblazoned with the parody -- may make it harder for you to defend against a trademark lawsuit. But this is not necessarily the case. For example, in MasterCard International Inc. v. Nader 2000 Primary Committee, Inc., 2004 WL 434404 (S.D.N.Y. Mar. 8, 2004), the court upheld Ralph Nader's use of MasterCard trademarks in a parody political advertisement, finding that there was no likelihood of confusion and that his use of the marks were political speech and thus "noncommercial." In another case, Mattel Inc. v. MCA Records, 296 F.2d 894, 906-07 (9th Cir. 2002), the Ninth Circuit Court of Appeals held that the band Aqua's use of Mattel's "Barbie" trademark in the parodic song "Barbie Girl" was protected by the First Amendment and "noncommercial," even though the band sold the song for money. The court found that Aqua's parody successfully lampooned the Barbie image and commented humorously on the cultural values the doll represents, and therefore was protected by the First Amendment. Finally, in Smith v. Wal-Mart, 537 F. Supp.2d 1302 (N.D. Ga. 2008), the defendant created a series of parodies using Wal-Mart's logos and slogans, in which he likened the retail giant to Al-Qaeda and the Nazis. He not only posted these parodies on his websites, but sold CafePress t-shirts and other merchandise containing the designs. The court held that the defendant's designs were successful parodies of Wal-Mart's trademarks, that there was no likelihood of confusion between his websites or goods and Wal-Mart's, and that his use of the trademark was "noncommercial," even though he sold the designs to the public on t-shirts and other merchandise.
The term "cybersquatting" refers to registering, using, or selling a domain name with a bad faith intent to profit from someone else's trademark. In the 1990s, when many companies were just beginning to realize the significance of the Internet, cybersquatters would register domain names using trademarks in the hopes of later selling the domain names to trademark holders at exorbitant prices. Congress cracked down on this problem in 1999 when it passed the Anticybersquatting Consumer Protection Act (ACPA), 15 U.S.C. § 1125(d). The ACPA gives a trademark holder the ability to bring a federal lawsuit against someone for cybersquatting. A cybersquatting claim is related to trademark infringement and trademark dilution, discussed in What Trademark Covers, but it is a separate legal claim with its own requirements.
Although not many citizen media creators speculate on domain names for profit, an online publisher may have other reasons to worry about a potential cybersquatting lawsuit. A website operator or blogger might want to register a domain name that includes a company's or individual's trademark in order to criticize, comment, or report on the activities of the trademark owner. For instance, gripe sites like fallwell.com and lowes-sucks.com, as well as fan sites like MarianoRivera.com, have been sued or threatened with suit because of their domain names. Similarly, in 2007 the Academy of Motion Picture Arts and Sciences sued the academy awards-related website, Oscarwatch.com (now operating as Awards Daily), for violation of the ACPA, among other trademark claims. The case settled without a court determining the merit of the Academy's claim.
In most cases, if the trademark is relevant to the content of your website or blog, and you use the mark to engage in legitimate commentary, criticism, or reporting, there is a good chance that a court would not hold you liable for cybersquatting. This is not a sure thing, however, and it does not mean that a trademark owner will not threaten you with a lawsuit or file a lawsuit against you. If you are faced with such a situation, it is important to understand what the ACPA prohibits and what it does not. Below we provide more detailed information on the basics of a cybersquatting claim.
Under the Anticybersquatting Consumer Protection Act, a plaintiff needs to show that the defendant registered, used, or sold a domain name containing language that is identical or similar to the trademark owner's trademark with a bad faith intent to profit from the domain name. A trademark owner that wins a cybersquatting lawsuit can recover money damages (including maximum statutory damages of $100,000 per act of cybersquatting) and get an order canceling the defendant's registration of the offending domain name or transferring it to trademark owner. A court may also award attorneys' fees to a winning trademark owner under "exceptional circumstances" -- basically, when the court determines that the defendant willfully or intentionally engaged in cybersquatting.
The key question in a cybersquatting case is whether the person registering, using, or selling a domain name has a bad faith intent to profit. Courts consider nine factors in determining whether a defendant has such a bad faith intent:
While the courts have applied these factors in different ways, and the result of a multi-factor test like this is hard to predict in advance, a few significant points are worth mentioning:
Noncommercial use rarely amounts to bad faith. Courts often give great weight to the fourth factor -- a bona fide noncommercial or fair use of the trademark in a site accessible under the domain name. The legislative history of the ACPA makes clear that a "noncommercial use" includes "comment, criticism, parody, news reporting, [and similar activities]." S Rep. No. 106-140, at *9. If you use your website to engage in these activities and do not offer goods or services for sale or include links to commercial websites, you are more likely to succeed against a cybersquatting claim. For example, in Lamparello v. Falwell, 420 F.3d 309 (4th Cir. 2005), the court found that a website operator did not have a bad faith intent to profit when he used the website in question to criticize the social and religious views of the Reverend Jerry Falwell. Similarly, in TMI Inc. v. Maxwell, 368 F.3d 433 (5th Cir. 2004), and Lucas Nursery & Landscaping v. Grosse, 359 F.3d 806 (6th Cir. 2004), the courts found that the defendants did not have a bad faith intent to profit and focused on the fact that the defendants were using their websites to engage in consumer commentary and criticism rather than for commercial gain. On the other hand, in Coca-Cola Co. v. Purdy, 3821 F.3d 774 (8th Cir. 2004), the court held that an anti-abortion activist violated the ACPA, despite the plainly religious and political character of his speech, because his websites solicited monetary contributions and sold merchandise. Note too that the activist registered domain names like "drinkcoke.org" and "mymcdonalds.com," which had no relation to his anti-abortion message.
Do not register multiple domain names or offer to sell a domain name to the trademark owner. Courts are aware that Congress passed the ACPA to fight the practice of cybersquatters registering multiple domain names in an effort to sell them to the legitimate owners of the trademarks. If you register more than one domain name, your activities look more like the harm that Congress meant to prevent. If you offer to sell the domain name in question, even after a trademark owner has threatened you with a lawsuit, it may look like your real purpose for registering the domain name was to extort money, not to engage in legitimate criticism, commentary, or reporting. Along these same lines, be sure never to give false contact information to the domain registrar when registering a domain name. When a court sees a website operator exercising his or her free speech rights and not engaging in these types of abusive behavior, it will likely conclude that no bad faith intent to profit is present. See for example Lamparello, Lucas Nursery, and Maxwell, and compare with the result in Purdy, where the defendant registered multiple domain names and offered to turn over one domain name in return for space on the editorial page of a trademark owner's newspaper.
Make it clear that you are not affiliated with the trademark owner. Courts also consider whether the defendant intentionally confuses Internet users as to the affiliation of the website. If you include a prominent disclaimer and a link to the trademark owner's official website, this may help show that you have no bad faith intent to profit. This is especially important if you are trying to make your site a parody of the trademark owner's site. In addition, you may have better luck on all types of trademark claims if you include something in the domain name itself that makes it clear that you are criticizing or commenting on the trademark owner, such as a "sucks" designation.
If you would like additional details about the ACPA and what constitutes a bad faith intent to profit, consult the Chilling Effects FAQ about ACPA.
Besides bringing a lawsuit in federal court, a trademark owner who believes that someone else is violating his or her trademark rights through cybersquatting can use the Uniform Domain Name Dispute Resolution Policy (UDRP). The UDRP is an online dispute resolution mechanism administered by the Internet Corporation for Assigned Names and Numbers (ICANN). Under the UDRP, ICANN can cancel an improperly registered domain name or order a losing party to transfer the domain name to the winning party. The purpose of UDRP is to provide a cheaper and more efficient mechanism for resolving cybersquatting disputes. If you believe that someone is cybersquatting on a domain name that rightfully should be yours, bringing an action under the UDRP may be a cheap and easy alternative to a lawsuit. Note, however, that a losing party in a UDRP proceeding may sue in federal court to reverse the outcome. Importantly, if a court determines that the person initiating a UDRP proceeding knowingly misrepresented that the challenged domain name was "identical to, confusingly similar to, or dilutive of [his or her] mark," then it may award the other party damages and attorneys' fees. See 15 U.S.C. § 1114(2)(D)(iv).
For more details on the UDRP, see the Chilling Effects FAQ about UDRP.
If you host user-generated content, such as user comments, you should be aware of your potential liability for that content under trademark law. For instance, a website user could post another blog's logo in a comment, eliciting a cease-and-desist letter from the competing blogger. While you would have a good argument that inclusion of a logo in a single comment does not create a likelihood of confusion between your two sites, you might consider whether you are responsible at all for material posted by a user. Unfortunately, while the so-called "safe harbor" provisions of the Digital Millennium Copyright Act (DMCA) and section 230 of the Communications Decency Act protect you from liability for user-generated content in a number of situations, they do not protect you against trademark claims, with one possible exception discussed below. The same point holds for third-party content you host on your site through news feeds or other aggregation mechanisms.
DMCA Safe Habors
Section 512 of the DMCA, 17 U.S.C. § 512, contains the DMCA's "safe-harbor" provisions for online service providers. These safe harbor provisions may shield you from liability for the copyright infringements of your site's users and for linking to copyright infringing material from other online sources, so long as you establish effective "notice-and-takedown" procedures, promptly remove content when a copyright owner notifies you that it is infringing, and have no actual or effective knowledge that the material in question is infringing. For details, please see Protecting Yourself Against Copyright Claims Based On User Content.
The DMCA safe harbor provisions only apply to claims of copyright infringement. Therefore, they do not provide any protection against trademark claims, whether for trademark infringement, trademark dilution, or cybersquatting. There may be times when you receive a DMCA takedown notice for material that is technically not eligible for safe-harbor treatment, like an allegedly infringing use of a trademark. If it satisfies the complaining person that you take the material down, and you have no serious objection, you might want to do so.
For information on the difference between copyright and trademark, see the Chilling Effects FAQ on Trademark.
Section 230 of the Communications Decency Act
Section 230 of the Communications Decency Act (CDA 230) protects website owners from many claims based on user comments and other third-party content, but it does not apply to "intellectual property" claims. 47 U.S.C. § 230(e)(2). Courts consider federal trademark claims to be "intellectual property" claims, so CDA 230 will not stop a federal trademark lawsuit based on user-generated or other third-party content.
A closer question is whether trademark claims under state law are "intellectual property" claims. One court has held that only federal intellectual property claims are outside the protection of CDA 230. See Perfect 10 v. CCBill LLC, 488 F.3d 1102 (9th Cir. 2007). Under this view, CDA 230 gives you a defense against state trademark claims based on user-generated content. More recently, another court held that CDA 230 does not bar state intellectual property claims. See Doe v. Friendfinder Network, Inc., 2008 WL 803947 (D.N.H. Mar. 27, 2008). Under this view, CDA 230 does not give you a defense against state trademark claims based on user-generated content.
For details on CDA 230, please see our Primer on Immunity and Liability for Third-Party Content Under Section 230 of the Communications Decency Act.
A trade secret is a form of intellectual property
that applies to business secrets. If a company or other organization
creates or compiles information that gives it an economic advantage
over its competitors, it can protect that information as a trade secret
-- in a sense becoming the "owner" of the trade secret. To do so,
however, a business must take reasonable precautions to keep the
information secret, and it loses its property right when competitors or
the public at large uncover the secret. Trade secrets law is governed
by state law. However, most U.S. states have adopted their own slightly modified version of the Uniform Trade Secret Act (UTSA), so there is a good deal of uniformity among state laws on the subject. For state-specific information, please see the State Law: Trade Secrets section of this guide.
The main goal of trade secrets law is to provide a way for businesses to capitalize on their unique practices or knowledge created through their time and effort. Unlike copyright, trade secrets law protects ideas and facts, rather than just the form in which they are expressed. A trade secret can be any kind of information relating to a business -- formulas, plans, designs, patterns, supplier lists, customer lists, financial data, personnel information, physical devices, processes, computer software, and a catch-all category of "know-how." The most "well known" trade secret is the "secret formula" for Coca-Cola, which has been kept under wraps for more than 100 years.
By definition, trade secrets are not
disclosed to the public. In this way, they are different from
inventions and creative works that are copyrighted or patented. And, in
contrast to copyrighted or patented information, trade secrets are not
time-limited -- they last as long as the company manages to keep them
secret. The company that creates them has the sole ability to exploit
the secret as long as it manages to keep it from becoming public
knowledge. The catch is that trade secrets can disappear without
warning or any specific period of time passing. Once disclosed, they're
gone. In addition, trade secrets law provides no protection against
someone independently developing the owner's trade secret information
or reverse engineering it from a finished product.
For the most part, trade secrets law is directed against industrial espionage and ex-employees sharing their former employers' proprietary information with new employers. You might justifiably ask, then, what all this has to do with citizen media and online publishing? Trade secrets law prohibits publishing someone else's trade secrets under certain circumstances, and businesses and other organizations sometimes look to trade secrets law as a way of stopping the traditional and non-traditional media from publishing valuable, sensitive, or damaging information. Many readers may recall Apple's dispute with Think Secret, AppleInsider, and O'Grady's PowerPage over leaks of confidential information about unreleased Apple products before MacWorld 2005. Apple turned to trade secrets law to make out its case. Ultimately, the courts never decided the merits of Apple's trade secrets claims because Think Secret settled and ceased operations, and Apple voluntarily withdrew its lawsuit against the other sites after a California court upheld the website operators' right to protect the identity of their sources under the California shield law. For additional details on the lawsuits, see our database entries, Apple v. DePlume and Apple v. Does. Going back to 1999, Ford sued a website operator named Robert Lane for posting its confidential documents and photographs on his site. Current and former Ford employees had provided Lane with secret materials in violation of their confidentiality agreements with the auto giant. The court found that Lane had likely violated the Michigan Trade Secrets Act, but held that the First Amendment to the U.S. Constitution did not permit the court to order Lane to remove the photographs and documents from the Internet. See Ford Motor Company v. Lane, 67 F. Supp. 2d 745 (E.D. Mich. 1999), for details.
If, like many people, your online activities are limited to synthesizing and commenting on materials you find online, then trade secrets law will not have any real impact on you. For a business to protect information under trade secrets law, the information must be secret. If you can find a piece of information by searching the Internet, then in all likelihood so can the company's competitors, and that information is not a trade secret. If, on the other hand, you engage in investigative reporting or regularly rely on confidential sources, you should familiarize yourself with trade secrets law in order to avoid potential liability and to stand up for yourself should someone send you a cease-and-desist letter. There are two scenarios where trade secrets problems are likely to come up; in legal terminology, this is when a court could find that you have "misappropriated" a trade secret.
Scenario One: You personally acquire a trade secret by improper means, such as theft, trespass, hacking, or breach of your own employment contract, even if you do not publish the trade secret. This type of conduct is outside the scope of this guide. If you are accused of engaging in such activities, we suggest that you seek immediate legal assistance. See the section on Finding Legal Help for some suggestions.
Scenario Two: You publish secret information received from a source and you know that the source acquired it through theft, hacking, or some other improper means, or breached a duty of confidentiality by giving it to you. This later situation could easily come up if you rely on employee sources for information about a company. If you want to rely on insider sources or are simply curious about what qualifies as a trade secret and what activities may cause trade secret liability, please see Basics of a Trade Secret Claim.
If you are considering publishing information that might be considered a trade secret, don't be intimidated. Not every company document is a trade secret, and a business ordinarily cannot stop you from publishing embarrassing -- but not secret or economically valuable -- information. Even if you publish a bona fide trade secret, the First Amendment of the U.S. Constitution may protect you from having to take it down and even from paying damages, especially if you publish the trade secret in order to report or comment on a matter of public concern. To illustrate both points, imagine that a source inside the XYZ Tire Company provides you with a secret company memorandum revealing a hazardous defect in the company's tires; you may have a host of legal arguments why publishing that information is lawful, including that the information in the memorandum is not a trade secret and that the First Amendment protects your activity. Keep in mind, however, that the law is not clear in this area. If you are interested in the legal protections the law may offer your publishing activities, consult the Publishing Trade Secrets section.
In the sections that follow, we lay out further specifics about the principles described above. This guide is not a full treatment of trade secrets law, but it does provide what we hope is a good understanding of the legal risks surrounding trade secrets.
If you obtain or publish a company's trade secrets, the company may have a legal claim against you for trade secret misappropriation. Generally speaking, a "trade secret" is secret information that confers a competitive business advantage on its owner by virtue of not being known to its competitors. The trade secret owner must exert reasonable efforts to maintain the secrecy of this information, or it ceases to be a trade secret. When a person obtains a trade secret improperly (such as by theft, bribery, or breach of a confidentiality agreement) or publishes it, knowing that someone else acquired it improperly, he or she has "misappropriated" the trade secret. This is the legal wrong against which trade secrets law protects. Possible defenses against a misappropriation claim are discussed in the Publishing Trade Secrets section.
State law governs trade secrets. Most U.S. states have adopted their own slightly modified version of the Uniform Trade Secret Act (UTSA), so there is a good deal of uniformity among state laws on the subject. The discussion below is based on the UTSA. For state-specific information, please see the state pages.
Under the UTSA, a trade secret has three basic characteristics:
Trade secrets can take many forms. They can be formulas, plans, designs, patterns, supplier lists, customer lists, financial data, personnel information, physical devices, processes, computer software, and a catch-all category of "know-how" -- just about any kind of secret information that relates to a business. Even a compilation of generally known facts can be a trade secret, if the compilation confers a competitive edge to whomever has access to it and is kept secret. The Chilling Effects FAQ on Trade Secrets has additional information on what companies can protect as a trade secret. Below we discuss the three elements of a trade secret, listed above.
(1) The information is secret
For information to be "secret," it must not be generally known by or readily ascertainable to competitors. A trade secret loses its "secret" status if a competitor of the owner knows about it; the public at large need not know about it for it to cease being secret. Take for example the formula for Coca-Cola -- right now, virtually no one knows what it is, so it is secret. If one of the Coca-Cola Company's competitors somehow obtained the formula, the formula would lose its "secret" status under the law, even if the competitor did not disclose it to the public at large. On the other hand, if an individual or small group of individuals gained knowledge of the formula, but the Coca-Cola Company stopped them from communicating it to the company's competitors, the formula would not lose its "secret" status.
As we discuss more fully in Publishing Trade Secrets, if a company's information is widely available on the Internet, it probably isn't "secret" because the entire public, including competitors, has access to it.
(2) The information confers a competitive advantage
The information must also give its owner an economic advantage over its competitors. To determine this, courts look at a number of factors: (a) the value the information has to the owner and its competitors; (b) how much effort or money the owner put into developing the information; (c) how seriously the owner tried to keep the information secret; (d) how hard it would be for others to properly acquire or duplicate the information; and (e) the degree to which other people have placed this information in the public domain or made the information readily ascertainable by applying for a patent or marketing.
To use Coke as an example again, the factors point towards the conclusion that the formula confers a competitive advantage. Most importantly, the industry perceives Coke's formula as so valuable that several people tried to sell it to PepsiCo for $1.5 million in 2006. In addition, the Coca-Cola Company makes serious efforts to keep the information secret -- keeping the original formula in a bank vault and supposedly letting only two executives know the formula at the same time. It is not clear how easy it would be for others to acquire this information -- many people claim to have reverse engineered it, but it has never been proven. The information plainly is not in the public domain.
(3) The information is subject to reasonable efforts to keep it secret
Finally, the owner of a trade secret must make reasonable efforts to keep the information secret. What is reasonable is determined by a cost-benefit analysis that varies from case to case. For example, in Rockwell Graphic Systems, Inc. v. DEV Industries, Inc., 925 F.2d 174 (7th Cir. 1991), the court considered a trade secrets claim by a printing press manufacturer which alleged that a competitor had misappropriated drawings of machine parts. The company had given the part drawings to a limited number of vendors and their own engineers. The court explained that it would not be reasonable to require the manufacturer to forbid any copying of the drawings, forcing all of the vendors and engineers to share a single copy, noting that "perfect security is not optimum security."
To use the Coke example one last time, the company certainly takes reasonable efforts to keep the formula secret. As noted above, it keeps the formula locked in a vault, and only a few executives know it. Such extreme measures won't be necessary or practical for many businesses, and courts will take a case-by-case look at the reasonableness of the measures taken.
The legal wrong that trade secrets law protects against is "misappropriation" of a trade secret. Section 1(2) of the UTSA provides the following definition for the term:
While this definition looks technical and complicated, citizen media creators and other online publishers will want to focus on two relatively straightforward points:
First, you commit misappropriation if you personally acquire a trade secret by improper means. "Improper means" include theft, fraud, bribery, industrial espionage, breaching a contractual duty to keep something confidential, or inducing others to breach that duty. For example, if you take home confidential information from your job in violation of your employment contract, that alone could be misappropriation. For another example, if you hack into a company's computer and make copies of confidential files you find there, that likely would qualify as misappropriation. To be clear, if you acquire the information yourself, you do not have to disclose or publish it in order to be liable for misappropriation. The act of acquisition is enough. That said, publishing or sharing information that you acquire improperly would also be misappropriation.
Second, you commit misappropriation if you publish a trade secret and you know that the person who gave you the information acquired it through improper means or under circumstances giving rise to a duty to maintain its secrecy or limit its use. Even if you don't actually know that the person who gave you the information acquired it in this way, you may be liable if you are aware of facts that suggest that this person acquired the information improperly. For example, if documents are stamped "Confidential," or "Secret," this might be enough give you reason to believe that your source acquired them improperly. This type of misappropriation would cover situations where you receive secret documents or information from a source inside the company about which you want to publish. For instance, if your source has signed a confidentiality agreement with his or her employer, then simply giving you secret information would breach that agreement, and your publishing of the information would be misappropriation if you knew or had reason to know that your source was bound by such an agreement. Alternatively, if your source stole secret information or hacked into a company computer to get it, your publishing of the information would be misappropriation if you knew or had reason to know that he or she had done so.
One case has squarely addressed this kind of misappropriation in the citizen media context. In Ford Motor Company v. Lane, 67 F. Supp. 2d 745 (E.D. Mich. 1999), a blogger obtained confidential documents and photographs from current and former Ford employees. The court determined that the blogger had violate the Michigan Trade Secrets Act by publishing the documents and photographs because he had reason to know the employees who gave him the information had breached their duty to Ford not to reveal the information. As discussed in Publishing Trade Secrets, however, the court also held that the First Amendment did not permit it to order the blogger to stop publishing these materials.
Note that trade secrets laws in many states, such as California, state explicitly that reverse engineering is not an "improper means" of obtaining information and cannot be the basis for a misappropriation claim. In those states, if you or your source uses reverse engineering to obtain information that a company claims is a trade secret, you generally cannot be liable for misappropriation. However, you might still run into trouble if you or your source agreed not to engage in reverse engineering in a contract, such as an end-user licensing agreement.
If a court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:
The "statute of limitations" is a term used by courts to describe the maximum amount of time plaintiffs can wait before bringing a lawsuit after the events they are suing over took place. This time limit is typically set by state statute and is intended to promote fairness and keep old cases from clogging the courts. Section 6 of the UTSA sets the statute of limitations for trade secrets claims at three years. However, many states have amended this section of the UTSA, so the statute of limitations for trade secrets claims varies between three and five years depending on the state. See the state pages for the applicable term in your state.
Generally speaking, the limitations period for a trade secret claims runs from the time the plaintiff discovered the misappropriation or the time by which the plaintiff should have discovered it through the exercise of reasonable diligence.
If you are thinking about publishing something that looks like a company's internal -- and possibly secret -- document or information, you need to think about the potential legal consequences under trade secrets law. As explained in Basics of a Trade Secret Claim, if a document or piece of information turns out to be a trade secret, then you might be liable for damages, and a court might order you to take down the material. But not every company document is a trade secret, and a company ordinarily cannot stop you from publishing embarrassing -- but not secret or economically valuable -- information. And even if you publish a bona fide trade secret, the First Amendment of the United States Constitution may protect you from having to take it down and even from paying damages, especially if you publish the trade secret in order to report or comment on a matter of public concern. Thus, if you get your hands on a secret document that shows that a steel plant is spewing pollutants into a local river, the U.S. Constitution may protect your decision to publish this document even if you are aware that your source acquired it through improper means (e.g., theft or breach of a confidentiality agreement). As described in more detail below, however, the law is not entirely clear on these points, and you ultimately will have to make a decision about what to do based on your own willingness to take risks.
The sections below speak in terms of "defenses" -- i.e., what you could argue to protect yourself assuming someone sued you for publishing a trade secret. The focus on defenses should not confuse you into thinking that this information is not valuable before a lawsuit happens. Knowing how you might defend yourself can help you evaluate whether your publishing activity is legally protected or whether you face a serious risk of unwanted legal consequences.
These defenses relate to the legal definition of a "trade secret" and the act of "misappropriation." For background, see Basics of a Trade Secret Claim.
What You Published Was Not a Trade Secret
(1) Not Secret
Your surest defense to a trade secrets claim is to show that the information you published was not a secret when you published it because it was already "generally known." For example, you generally cannot be liable for trade secret misappropriation if you get the information in question from some published source, like a newspaper or book. Similarly, most material previously posted on the Internet is no longer secret. For example, in DVD Copy Control Association v. Bunner, 10 Cal. Rptr. 3d 185 (Ct. App. 2004), a trade association claimed that a website operator had misappropriated its trade secret when he posted DeCSS -- a code for breaking its DVD encryption technology -- on his website. A California appellate court held that DeCSS was not a trade secret when the defendant posted it because hundreds of other websites had already done so. Similarly, several federal district courts have found that numerous Church of Scientology documents were not trade secrets because many websites published the documents before the defendant. See, e.g, Religious Tech. Ctr. v. Netcomm On-Line Commc'n Servs., 923 F. Supp. 1231, 1256-57 (N.D. Cal. 1995); Religious Tech. Ctr. v. Lerma, 897 F. Supp. 260, 266 (E.D. Va. 1995).
Note, however, that publication on the Internet does not always strip information of its trade secret status. For example, information that appears only on an obscure site or sites, and information that appears and quickly gets taken down may remain a trade secret, and you might be liable for publishing it if you have reason to know that it was acquired through improper means.
Even if information was secret when you first disclosed it online, if it becomes public knowledge by the time a plaintiff asks a court for an injunction against you (i.e., an order requiring you to take down the material and not publish it in the future), you may convince the court not to issue the order. The court may not issue an injunction without the plaintiff showing that it would be "irreparably harmed" absent the order requiring you not to publish the trade secret. But if the information is already publicly available, then you cannot harm the plaintiff by publishing what everyone already knows. Even if an injunction is improper, however, a plaintiff can still seek money damages from you.
(2) Generates No Economic Value
You may also avoid trade secret liability if the information you published could not give its owner an economic advantage over its competitors by remaining secret. You could use this defense if a company tries to use trade secrets law to shield embarrassing information that does not relate to its competitive position vis-a-vis its rivals. For example, in MicroStrategy Inc. v. Business Objects, S.A., 331 F. Supp. 2d 396 (E.D. Va. 2004), a court determined that an email sent by a company's CEO to all employees about the the company's financial difficulties was not a trade secret. The email, while interesting to some, had no potential economic value and was about to be made public in a press release anyway.
In another case, Buffets, Inc. v. Klinke, 73 F.3d 965 (9th Cir. 1996), the owners of the Old Country Buffet restaurant chain claimed another chain had stolen their trade secrets when it copied their recipes, but the court determined the recipes had no economic value. The court reasoned that "there was no demonstrated relationship between the lack of success of [the] competitors and the unavailability of the recipes" and, because, in fact, OCB's cooks had used simplified versions of the recipes in preparing their food, so it was unlikely the recipes themselves had conferred a benefit on OCB.
(3) No Reasonable Efforts to Maintain Secrecy
One other way you can defend yourself is the owner of the "secret" did not take reasonable steps to maintain its secrecy. The exact steps required will vary depending on the secret involved, but there is a good chance that information is not a trade secret if a company has failed to take any affirmative steps to protect it. For example, in Hoffmann-La Roche Inc. v. Yoder, 950 F. Supp. 1348 (S.D. Ohio 1997), a federal district court found a company had failed to take sufficient to make a reasonable effort to ensure secrecy because it did not require its clinical investigators to sign confidentiality agreements, it failed to stamp documents "confidential" or "secret," it widely disseminated the information, and it did not use other controls like restricting access to the physical location of the secret, the use of safes, or discussing the importance of confidentiality with people who received the information. If you find documents or information online, you may have a decent argument that the owner did not maintain reasonable efforts to keep the material secret (in addition to the argument that the material is "not secret," as explained above).
You Did Not Commit Misappropriation
Another possible defense is that neither you nor your source(s) used improper means to obtain the information. The Supreme Court noted in Kewanee Oil Co. v. Bicron Corp., 416 U.S. 470 (1974), that "discovery by fair and honest means, such as by independent invention, accidental disclosure, or by so-called reverse engineering" is not misappropriation. Often, this argument would go hand and hand with the argument that the information in question was not secret. If the information is publicly available, then you generally do not need to rely on theft, deception, or breach of confidentiality in order to get a hold of it.
For example, in Religious Technology Center v. Lerma, 908 F. Supp. 1362 (E.D. Va. 1995), the Washington Post published Scientology documents it had obtained from a publicly available court file and the Internet. The district court determined that the Post had not misappropriated the Church of Scientology's trade secrets because the paper obtained the materials from legitimate, publicly available sources. The court further noted that "[a]lthough the person who originally posted a trade secret on the Internet may be liable for trade secret misappropriation, the party who merely downloads Internet information cannot be liable for misappropriation because there is no misconduct involved in interacting with the Internet." Similarly in DVD Copy Control Association v. Bunner, 75 P.3d 1 (Cal. 2003), the California Supreme Court considered a case where a programmer had reverse engineered DVD encryption software. While the majority of the court did not consider the issue, Justice Moreno, concurring, expressed serious doubt that reverse engineering was an improper act. In their versions of the Uniform Trade Secrets Act, California, Illinois, and Oregon explicitly state that reverse engineering alone does not constitute misappropriation.
Even if you are dealing with a bona fide trade secret and you have reason to believe that your source acquired it improperly, the First Amendment of the U.S. Constitution may stop a court from ordering you not to publish it. You may be protected by something known as the "prior restraint" doctrine. The Supreme Court held in the Pentagon Papers case, New York Times v. United States, 403 U.S. 713 (1971), that a plaintiff must make an extraordinary showing of harm in order to obtain a court order that stops the news media from publishing information on a matter of public concern. The United States government had sought an injunction to prevent the New York Times and Washington Post from publishing information from a classified study on the Vietnam War. Though the materials "pose[d] substantial dangers to national interests," the court was unwilling to stop the newspapers from printing them. As one district court found in Religious Technology Center v. Lerma, 897 F. Supp. 260 (E.D. Va. 1995), "If a threat to national security was insufficient to warrant a prior restraint ... the threat to plaintiff's ... trade secrets is woefully inadequate."
Although the law is not entirely certain on this point, a number of courts have extended the prior restraint doctrine to trade secret cases. In CBS v. Davis, 510 U.S. 1315 (Blackmun, Circuit Justice 1994), after CBS News shot the operations of a meatpacking company on an undercover camera, the company sought and obtained an injunction preventing CBS from broadcasting the video footage, claiming that the broadcast would disclose the company's trade secrets. Acting pursuant to a special procedure, Justice Blackmun of the Supreme Court stayed the injunction, ruling that the possibility of economic harm was not a sufficient justification for a prior restraint. (Note that this case does not have great value as precedent because the full Supreme Court did not decide the case.)
Courts have applied the prior restraint doctrine to Internet publishers as well as to the mainstream media. In Ford Motor Company v. Lane, 67 F. Supp. 2d 745 (E.D. Mich. 1999), the auto company sought a court order preventing a blogger from posting the company's internal documents online. The documents were provided to the blogger by anonymous sources (which the court believed were likely former and current Ford employees). Because Lane had reason to know that his sources had given him Ford's trade secrets in violation of their confidentiality agreements, the federal district court determined that the blogger was likely violating the Michigan Trade Secrets Act. Nevertheless, the court held that the prior restraint doctrine prevented it from issuing an injunction requiring Lane to take the confidential information off his blog. Protecting the company's vanity and commercial self-interest was not a sufficient ground to stop the blogger from publishing, the court noted. Another federal district court came to a similar conclusion in Religious Technology Center v. F.A.C.T.NET, Inc., 901 F. Supp. 1519 (D. Colo. 1995)
In contrast, other courts have upheld the use of an injunction to bar publication of a trade secret, at least in some situations. In DVD Copy Control Association v. Bunner, 75 P.3d 1 (Cal. 2003), the California Supreme Court found that an injunction prohibiting the posting of DeCSS was not an invalid prior restraint. However, the court expressly limited its reasoning to publication of secret information that is not a matter of public concern. Therefore, publication of trade secrets for news reporting or news commentary would not fall under the Bunner case. In Garth v. Staktek Corp., 876 S.W.2d 545 (Tex. App. 1994), a Texas appellate court upheld an injunction barring a company from selling a technology developed with misappropriated trade secrets and from revealing information about the technology to third parties.
Despite the protection offered by the prior restraint doctrine, you should be aware of two caveats. First, the prior restraint doctrine may not help you in a situation where you have personally signed an agreement promising to keep materials confidential. In Ford Motor Company v. Lane, 67 F. Supp. 2d 745 (E.D. Mich. 1999), the court noted that "use of trade secrets in violation of a confidentiality agreement or in breach of a fiduciary duty is not protected by the First Amendment." For example, if you agree in an employment contract not to disclose your employer's trade secrets and then post that information on your blog, the First Amendment may not protect you from an injunction. On the other hand, if you receive trade secrets from a source, the First Amendment may protect you, even if that source violated a confidentiality agreement or otherwise acted improperly. Second, the prior restraint doctrine only stops a court from ordering you not to publish information. It does not stop a court from holding you liable for civil damages or criminal penalties. As discussed immediately below, however, other First Amendment considerations may bar civil or criminal liability under certain circumstances.
Beyond protecting you against an injunction, the First Amendment may protect you from civil liability or criminal prosecution for publishing trade secrets. This potential protection stems from a case called Bartnicki v. Vopper, 532 U.S. 514 (2001). In that case, an unidentified person intercepted and recorded a phone call between Bartnicki, a union negotiator, and the the president of the union. Then, the head of a local taxpayer's group received the tape in his mailbox without any indication of where it came from. The head of the taxpayer's group gave the tape to Vopper, a radio commentator, and he played it on the air. Bartnicki sued Vopper for publishing the contents of an illegal recording in violation of federal wiretapping law, knowing or having reason to know that it was illegally recorded. See 18 U.S.C. § 2511(1)(c). Vopper argued his disclosure of the contents of the illegally recorded tape was protected by the First Amendment. Finding that "a stranger’s illegal conduct does not suffice to remove the First Amendment shield from speech about a matter of public concern," the Supreme Court refused to enforce federal wiretapping law against Vopper.
Although no court has yet applied Barnicki to block liability for publication of trade secrets, its reasoning could apply to a trade secret case where a publisher has reason to know that the information was acquired through improper means, but did not himself or herself engage in any misconduct or breach any agreement in order to get the information. The argument goes: Bartnicki protects you from liability when you publish trade secrets relevant to a matter of public concern, when you did not personally steal or breach a duty of confidentiality in order to obtain the information, but rather received it from a source who breached a duty of confidentiality or otherwise acted improperly.
Whether a court would actually accept this argument is far from certain. In Bartnicki, the Court explicitly noted it was not deciding whether the First Amendment would bar liability in a case involving trade secrets, on the assumption that trade secrets would be a matter of purely private concern. If you could show that a trade secret related to a matter of public concern, which it might well if you published it in the process of news reporting, commentary, or criticism, then the general reasoning of Bartnicki might apply to prohibit liability. For example, if you blog about secret documents that show a problem with a car company's emissions standards, then Bartnicki might protect you from liability if you did not yourself engage in improper conduct to get the documents.
Only one court so far has ruled on the application of Bartnicki to trade secrets: the California Supreme Court, in DVD Copy Control Association v. Bunner. While the court found that the trade secrets in issue in Bunner were not protected by the First Amendment, its ruling was based on its belief that those trade secrets, since they were only technical information, did not "involve[] a matter of public concern [or] implicate[] the core purpose of the First Amendment." So even in California, if you published trade secrets more directly involving a matter of public importance, you would still have a strong argument that your speech should be protected. For example, if you published secret information showing that a company's voting machines were not working properly, you could argue that the Bunner case should not apply.
You might be concerned that a user of your website or blog could post trade secrets there without your knowledge or understanding of the character of the information. Section 230 of the Communications Decency Act (CDA 230) protects website owners from many claims based on user comments and other third-party content, but it does not apply to "intellectual property" claims. 47 U.S.C. § 230(e)(2). While the law is not settled yet, the term "intellectual property" may include state trade secrets claims. Thus, if a user posts trade secrets on your website or blog, the owner of those trade secrets may be able to sue you for your user's conduct.
For details on CDA 230, please see our Primer on Immunity and Liability for Third-Party Content Under Section 230 of the Communications Decency Act.
Each state has its own law relating to trade secrets. However, most U.S. states have adopted their own slightly modified version of the Uniform Trade Secret Act (UTSA), so there is a good deal of uniformity among state laws on the subject. Choose your state from the list below for state-specific information on trade secrets law.
Note: This page covers information specific to Arizona. See the Trade Secrets overview for more general information.
The Arizona Uniform Trade Secrets Act ("AUTSA") is located at chapter 4 of title 44 of the Arizona Revised Statutes. AUTSA is largely identical to the Uniform Trade Secrets Act. For generally applicable information on trade secrets, see Basics of a Trade Secret Claim and Publishing Trade Secrets.
Like the Uniform Trade Secret Act, AUTSA prohibits "misappropriation" of trade secrets and provides certain remedies.
A.R.S. § 44-401 defines the key terms of AUTSA:
Trade secret means information, including a formula, pattern, compilation, program, device, method, technique, or process, that both:
Only those secrets affording a demonstrable competitive advantage may be considered trade secrets, and value will be inferred if the owner can show that the information confers upon it an economic advantage over others in the industry. Enterprise Leasing Co. of Phoenix v. Ehmke, 3 P.3d 1064, 1069-70 (Ariz. Ct. App. 1999). The Arizona Court of Appeals has recognized as trade secrets both: a compilation of customer-service factors in managing a car-rental business; and financial records that the owner treated as secret, even if the information they contain is old or outdated. Id.
The Arizona Court of Appeals has indicated that trade secrets contained in public records may be protected by the confidentiality exception to Arizona's public records laws. Phoenix Newspapers, Inc. v. Keegan, 35 P.3d 105, 112 (Ariz. Ct. App. 2001).
Misappropriation means either:
Improper means includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy or espionage through electronic or other means. The Arizona Court of Appeals has ruled that use of secret documents legitimately obtained during employment after that employment has ended can constitute improper means. Ehmke, 3 P.3d at 1071.
Note that the First Amendment may protect you from civil liability or criminal prosecution for publishing trade secrets, provided you were not engaged in the improper conduct that led to the secrets' misappropriation. This potential protection stems from a case called Bartnicki v. Vopper, 532 U.S. 514 (2001). See Publishing Trade Secrets for more information about this case.
For generally applicable information on how a trade secrets claim works, see Basics of a Trade Secret Claim.
If the court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:
The statute of limitations for a trade secret claim in Arizona is three years. See A.R.S. § 44-406.
Note: This page covers information specific to California. See the Trade Secrets overview for more general information.
The California Uniform Trade Secrets Act ("CUTSA") is located at sections 3426 to 3426.11 of the California Civil Code. CUTSA is largely identical to the Uniform Trade Secrets Act. For generally applicable information on trade secrets claims and defenses, see Basics of a Trade Secret Claim and Publishing Trade Secrets.
Like the Uniform Trade Secret Act, CUTSA prohibits "misappropriation" of trade secrets and provides certain remedies. In addition, California law may impose criminal penalties for stealing trade secrets. See Cal. Penal Code §§ 499c, 502.
Cal. Civ. Code 3426.1 defines the key terms of CUTSA:
(a) "Improper means" includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means. Reverse engineering or independent derivation alone shall not be considered improper means.
(b) "Misappropriation" means:
(c) "Person" means a natural person, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision or agency, or any other legal or commercial entity.
(d) "Trade secret" means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:
For generally applicable information on how a trade secrets claim works, see Basics of a Trade Secret Claim.
If a court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:
The statute of limitations for a trade secret claim in California is three years. Cal. Civ. Code § 3426.6 (scroll down).
Note: This page covers information specific to Florida. See the Trade Secrets overview for more general information.
The Florida Uniform Trade Secrets Act ("FUTSA") is located in chapter 688 of title XXXIX of the 2007 Florida Statutes. FUTSA is largely identical to the Uniform Trade Secrets Act. For generally applicable information on trade secrets claims and defenses, see Basics of a Trade Secret Claim and Publishing Trade Secrets.
Like the Uniform Trade Secret Act, FUTSA prohibits "misappropriation" of trade secrets and provides certain remedies. In addition, Florida law may impose criminal penalties for stealing trade secrets. See Fla. Stat. § 812.081.
Fla. Stat. § 688.002 defines the key terms of FUTSA:
(1) "Improper means" includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means.
(2) "Misappropriation" means:
(3) "Person" means a natural person, corporation, business trust, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency, or any other legal or commercial entity.
(4) "Trade secret" means information, including a formula, pattern, compilation, program, device, method, technique, or process that:
For generally applicable information on how a trade secrets claim works, see Basics of a Trade Secret Claim.
If the court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:
The statute of limitations for a trade secret claim in Florida is three years. See Fla. Stat. § 688.007.
Note: This page covers information specific to Georgia. See the Trade Secrets overview for more general information.
The Georgia Trade Secrets Act of 1990 ("GUTSA") is located at title 10, chapter 1, article 27 of the Georgia Code. GUTSA is largely identical to the Uniform Trade Secrets Act. For generally applicable information on trade secrets claims and defenses, see Basics of a Trade Secret Claim and Publishing Trade Secrets.
Like the Uniform Trade Secret Act, GUTSA prohibits "misappropriation" of trade secrets and provides certain remedies. In addition, Florida law may impose criminal penalties for stealing trade secrets. See [Ga. Code § 16-8-13] (link is to entire code; you need to click through to title 16, chapter, 8, article 1, and then choose the specific provision).
Ga. Code § 10-1-761 (link is to entire code; you need to click through to title 10, chapter, 1, article 27, and then choose the specific provision) defines the key terms of GUTSA:
(1) "Improper means" includes theft, bribery, misrepresentation, breach or inducement of a breach of a confidential relationship or other duty to maintain secrecy or limit use, or espionage through electronic or other means. Reverse engineering of a trade secret not acquired by misappropriation or independent development shall not be considered improper means.
(2) "Misappropriation" means:
(3) "Person" means a natural person, corporation, business trust, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency, or any other for profit or not for profit legal or commercial entity.
(4) "Trade secret" means information, without regard to form, including, but not limited to, technical or nontechnical data, a formula, a pattern, a compilation, a program, a device, a method, a technique, a drawing, a process, financial data, financial plans, product plans, or a list of actual or potential customers or suppliers which is not commonly known by or available to the public and which information:
For generally applicable information on how a trade secrets claim works, see Basics of a Trade Secret Claim.
If the court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:
The statute of limitations for a trade secret claim in Georgia is five years. See Ga. Code § 10-1-766 (link is to entire code; you need to click through to title 10, chapter, 1, article 27, and then choose the specific provision).
Note: This page covers information specific to Illinois. See the Trade Secrets overview for more general information.
The Illinois Trade Secrets Act ("ITSA") is located at chapter 765 of the Illinois Compiled Statutes. ITSA is largely identical to the Uniform Trade Secrets Act. For generally applicable information on trade secrets claims and defenses, see Basics of a Trade Secret Claim and Publishing Trade Secrets.
Like the Uniform Trade Secret Act, ITSA prohibits "misappropriation" of trade secrets and provides certain remedies.
765 Ill. Comp. Stat. 1065/2 (scroll down) defines the key terms of ITSA:
(a) "Improper means" includes theft, bribery, misrepresentation, breach or inducement of a breach of a confidential relationship or other duty to maintain secrecy or limit use, or espionage through electronic or other means. Reverse engineering or independent development shall not be considered improper means.
(b) "Misappropriation" means:
(c) "Person" means a natural person, corporation, business trust, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency, or any other for‑profit or not‑for‑profit legal entity.
(d) "Trade secret" means information, including but not limited to, technical or non‑technical data, a formula, pattern, compilation, program, device, method, technique, drawing, process, financial data, or list of actual or potential customers or suppliers, that:
For generally applicable information on how a trade secrets claim works, see Basics of a Trade Secret Claim.
If the court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:
The statute of limitations for a trade secret claim in Illinois is five years. See 765 Ill. Comp. Stat. 1065/7 (scroll down).
Note: This page covers information specific to Indiana. See the Trade Secrets overview for more general information.
The Indiana Uniform Trade Secrets Act ("IUTSA") is located at title 24, article 2, chapter 3 of the Indiana Code. IUTSA is largely identical to the Uniform Trade Secrets Act. For generally applicable information on trade secrets claims and defenses, see Basics of a Trade Secret Claim and Publishing Trade Secrets.
Like the Uniform Trade Secret Act, IUTSA prohibits "misappropriation" of trade secrets and provides certain remedies.
Ind. Code § 24-2-3-2 (scroll down) defines the key terms of IUTSA:
"Improper means" includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means.
"Misappropriation" means:
"Person" means a natural person, limited liability company, corporation, business trust, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency, or any other legal or commercial entity.
"Trade secret" means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:
For generally applicable information on how a trade secrets claim works, see Basics of a Trade Secret Claim.
If the court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:
The statute of limitations for a trade secret claim in Indiana is three years. Ind. Code § 24-2-3- (scroll down).
Note: This page covers information specific to Massachusetts. See the Trade Secrets overview for more general information.
Massachusetts has not adopted a version of the Uniform Trade Secrets Act (UTSA), which is discussed in the Basics of a Trade Secret Claim. Like the UTSA, however, Massachusetts law creates civil liability for acquisition of trade secrets through improper means. In addition, Massachusetts is one of the few states that imposes criminal liability for improper acquisition of trade secrets - unlawfully taking a trade secret is included in the definition of the crime of larceny and can result in imprisonment.
Massachusetts law defines a trade secret as "anything tangible or intangible or electronically kept or stored, which constitutes, represents, evidences or records a secret scientific, technical, merchandising, production or management information, design, process, procedure, formula, invention or improvement." Mass. Gen. Laws. ch. 266, § 30. From a practical perspective, this definition of "trade secret" is similar to that discussed in Basics of a Trade Secret Claim.
Unlike the Uniform Trade Secret Act, Massachusetts law does not use the word "misappropriation." Instead, it lists a number of activities that trigger civil liability:
Mass. Gen. Laws ch. 93, § 42. It is not clear whether Massachusetts law prohibits publishing a trade secret while knowing that it was acquired by a source through improper means. Undoubtedly, you could be liable for publishing a trade secret if you personally obtained it through any of the improper means listed above.
The Massachusetts criminal statute relating to trade secrets prohibits the following activities:
Mass. Gen. Laws. ch. 266, § 30. It does not look like the law makes it a crime to publish a trade secret, so long as you do not personally obtain it through any of the improper means listed above.
If a court finds that a defendant has unlawfully taken a plaintiff's trade secret(s), it may impose the following penalties and remedies:
The statute of limitations for a trade secret claim in Massachusetts is three years. See Mass. Gen. Laws ch. 260, § 2A .
Note: This page covers information specific to Michigan. See the Trade Secrets overview for more general information.
The Michigan Uniform Trade Secrets Act ("MUTSA") is located in chapter 445 of the Michigan Compiled Laws. MUTSA is largely identical to the Uniform Trade Secrets Act. For generally applicable information on trade secrets claims and defenses, see Basics of a Trade Secret Claim and Publishing Trade Secrets.
Like the Uniform Trade Secret Act, MUTSA prohibits "misappropriation" of trade secrets and provides certain remedies.
Mich. Comp. Laws § 445.1902 defines the key terms of MUTSA:
(a) “Improper means” includes theft, bribery, misrepresentation, breach, or inducement of a breach of a duty to maintain secrecy or espionage through electronic or any other means.
(b) “Misappropriation” means either of the following:
(c) “Person” means an individual, corporation, partnership, association, governmental entity, or any other legal entity.
(d) “Trade secret” means information, including a formula, pattern, compilation, program, device, method, technique, or process, that is both of the following:
For generally applicable information on how a trade secrets claim works, see Basics of a Trade Secret Claim.
If the court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:
The statute of limitations for a trade secret claim in Michigan is three years. See Mich. Comp. Laws § 445.1907.
Note: This page covers information specific to New Jersey. See the Trade Secrets overview for more general information.
New Jersey has not adopted a version of the Uniform Trade Secrets Act (UTSA), which is discussed in the Basics of a Trade Secret Claim. In fact, New Jersey does not have a statute governing trade secrets law. Instead, it is based solely on the common law, which is the compilation of prior court decisions in the state. Like the UTSA, however, New Jersey law creates civil liability for "misappropriation" of someone else's trade secret(s). New Jersey's criminal laws relating to theft may also impose criminal liability for stealing trade secrets.
New Jersey courts have adopted the definition of trade secret from Section 757 of the Restatement of Torts: "A trade secret consists of a formula, process, device, or compilation which one uses in his business and which gives him an opportunity to obtain an advantage over competitors who do not know or use it." The Restatement of Torts explains further that a trade secret differs from other secret information in a business in that it is not simply information about single or ephemeral events, but rather a process or device for continuous use in the operation of the business. From a practical perspective, this definition of "trade secret" is similar to that discussed in Basics of a Trade Secret Claim.
The general meaning of "misappropriation" under New Jersey law is not entirely clear because many of the cases focus on situations where former employees passed secrets to a competitor, but it looks like misappropriation can happen in two ways, discussed in detail in the Basics of a Trade Secret Claim. First, you commit misappropriation if you personally acquire a trade secret by improper means. "Improper means" includes criminal acts, such as theft, fraud, breaking and entering, trespass, and bribing and swindling, as well as acts taken to overcome measures put in place to maintain secrecy of the trade secret information, such as fraud, interference with contractual obligations, and breach of a contract in obtaining or using the trade secret. Reverse engineering and independent development are not "improper means." Second, you commit misappropriation if you publish a trade secret while knowing that the person who gave you the information acquired it through improper means or under circumstances giving rise to a duty to maintain its secrecy or limit its use.
If a court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following penalties and remedies:
The statute of limitations for a trade secret claim in New Jersey is six years.
Note: This page covers information specific to New York. See the Trade Secrets overview for more general information.
New York has not adopted a version of the Uniform Trade Secrets Act (UTSA), which is discussed in the Basics of a Trade Secret Claim. In fact, New York does not have a statute governing trade secrets law. Instead, it is based solely on the common law, which is the compilation of prior court decisions in the state. Like the UTSA, however, New York law creates civil liability for "misappropriation" of someone else's trade secret(s). New York's criminal larceny statute may also impose criminal liability for stealing trade secrets.
New York courts have adopted the definition of trade secret from Section 757 of the Restatement of Torts: "A trade secret consists of a formula, process, device, or compilation which one uses in his business and which gives him an opportunity to obtain an advantage over competitors who do not know or use it." The Restatement of Torts explains further that a trade secret differs from other secret information in a business in that it is not simply information about single or ephemeral events, but rather a process or device for continuous use in the operation of the business. From a practical perspective, this definition of "trade secret" is similar to that discussed in Basics of a Trade Secret Claim. New York courts have adopted the definition of trade secret from Section 757 of the Restatement of Torts.
Under New York law, misappropriation consists of use or disclosure of a trade secret that was acquired through a relationship of trust (such as employment), or through fraud or other improper means, such as theft, bribery, or hacking. This definition appears to include publishing a trade secret while knowing that your source obtained it through improper means or in breach of a confidentiality agreement.
If a court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following penalties and remedies:
The statute of limitations for a trade secret claim in New York is three years.
Note: This page covers information specific to North Carolina. See the Trade Secrets overview for more general information.
The North Carolina Trade Secrets Protection Act is located in chapter 66, article 24 of the North Carolina General Statutes. This Act is similar to the Uniform Trade Secrets Act. For generally applicable information on trade secrets claims and defenses, see Basics of a Trade Secret Claim and Publishing Trade Secrets.
Like the Uniform Trade Secret Act, The North Carolina Trade Secrets Protection Act prohibits "misappropriation" of trade secrets and provides certain remedies.
N.C. Gen. Stat. § 66-152 defines the key terms of the Act:
(1)"Misappropriation" means acquisition, disclosure, or use of a trade secret of another without express or implied authority or consent, unless such trade secret was arrived at by independent development, reverse engineering, or was obtained from another person with a right to disclose the trade secret.
(2)"Person" means an individual, corporation, government, governmental subdivision or agency, business trust, estate, trust, partnership, association, joint venture, or any other legal or commercial entity.
(3)"Trade secret" means business or technical information, including but not limited to a formula, pattern, program, device, compilation of information, method, technique, or process that:
If the court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:
Note: This page covers information specific to Ohio. See the Trade Secrets overview for more general information.
The Ohio Uniform Trade Secrets Act ("OUTSA") is located at chapter 1333 of title 13 of the Ohio Revised Code. OUTSA is largely identical to the Uniform Trade Secrets Act. For generally applicable information on trade secrets claims and defenses, see Basics of a Trade Secret Claim and Publishing Trade Secrets.
Like the Uniform Trade Secret Act, OUTSA prohibits "misappropriation" of trade secrets and provides certain remedies.
Ohio Rev. Code § 1333.61 defines the key terms of OUTSA:
(A) “Improper means” includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means.
(B) “Misappropriation” means any of the following:
(C) “Person” has the same meaning as in division (C) of section 1.59 of the Revised Code and includes governmental entities.
(D) “Trade secret” means information, including the whole or any portion or phase of any scientific or technical information, design, process, procedure, formula, pattern, compilation, program, device, method, technique, or improvement, or any business information or plans, financial information, or listing of names, addresses, or telephone numbers, that satisfies both of the following:
For generally applicable information on how a trade secrets claim works, see Basics of a Trade Secret Claim.
If the court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:
The statute of limitations for a trade secret claim in Ohio is four years. See Ohio Rev. Code § 1333.66.
Note: This page covers information specific to Pennsylvania. See the Trade Secrets overview for more general information.
Enacted in 2004, the Pennsylvania Uniform Trade Secrets Act ("PUTSA") is located at chapter 53 of title 12 of the Pennsylvania Consolidated Statutes. PUTSA is largely identical to the Uniform Trade Secrets Act. For generally applicable information on trade secrets claims and defenses, see Basics of a Trade Secret Claim and Publishing Trade Secrets.
Like the Uniform Trade Secret Act, PUTSA prohibits "misappropriation" of trade secrets and provides certain remedies. In addition, Pennsylvania law may impose criminal penalties for stealing trade secrets. See 18 Pa. Cons. Stat. § 3930 (link is to the entire code; you need to choose title 18, part II, article C, chapter 39, subchapter B, and then choose the specific provision).
12 Pa. Cons. Stat. § 5302 (link is to the entire code; you need to choose title 12, part V, chapter 53, and then choose the specific provision) defines the key terms of PUTSA:
"Improper means." Includes, but is not limited to, theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy or espionage through electronic or other means.
"Misappropriation." Includes:
"Person." A natural person, corporation, business trust, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency or any other legal or commercial entity.
"Trade secret." Information, including a formula, drawing, pattern, compilation including a customer list, program, device, method, technique or process that:
For generally applicable information on how a trade secrets claim works, see Basics of a Trade Secret Claim.
If the court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:
The statute of limitations for a trade secret claim in Pennsylvania is three years. See 12 Pa. Cons. Stat. Ann. § 5307 (link is to the entire code; you need to choose title 12, part V, chapter 53, and then choose the specific provision).
Note: This page covers information specific to Texas. See the Trade Secrets overview for more general information.
Texas has not adopted a version of the Uniform Trade Secrets Act (UTSA), which is discussed in the Basics of a Trade Secret Claim. In fact, Texas does not have a statute governing trade secrets law. Instead, it is based solely on the common law, which is the compilation of prior court decisions in the state. Like the UTSA, however, Texas law creates civil liability for "misappropriation" of someone else's trade secret(s). In addition, Texas law may impose criminal penalties for stealing trade secrets. See Texas Penal Code § 31.05.
Texas courts have largely adopted the definition of trade secret from Section 757 of the Restatement of Torts: "A trade secret consists of a formula, process, device, or compilation which one uses in his business and which gives him an opportunity to obtain an advantage over competitors who do not know or use it." The Restatement of Torts explains further that a trade secret differs from other secret information in a business in that it is not simply information about single or ephemeral events, but rather a process or device for continuous use in the operation of the business. From a practical perspective, this definition of "trade secret" is similar to that discussed in Basics of a Trade Secret Claim.
Under Texas law, misappropriation consists of use or disclosure of a trade secret that was acquired through a relationship of trust (such as employment), or through fraud or other improper means, such as theft, bribery, or hacking. This definition appears to include publishing a trade secret while knowing that your source obtained it through improper means or in breach of a confidentiality agreement.
If a court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:
The statute of limitations for a civil trade secret claim in Texas is three years. See Tex. Civ. Prac. & Rem. Code Ann. § 16.010.
As stated above, Texas also makes it a crime to steal trade secrets. Theft of a trade secret is a felony of the third degree. Third degree felony convictions in Texas carry a punishment of two to ten years in prison and a fine up to $10,000. See Tex. Penal Code Ann. § 12.34.
Note: This page covers information specific to Virginia. See the Trade Secrets overview for more general information.
The Virginia Uniform Trade Secrets Act ("VUTSA") is located at chapter 26 of title 59.1 of the Virginia Code. VUTSA is largely identical to the Uniform Trade Secrets Act. For generally applicable information on trade secrets claims and defenses, see Basics of a Trade Secret Claim and Publishing Trade Secrets.
Like the Uniform Trade Secret Act, VUTSA prohibits "misappropriation" of trade secrets and provides certain remedies.
Va. Code § 59.1-336 defines the key terms of VUTSA:
Trade secret means information, including but not limited to, a formula, pattern, compilation, program, device, method, technique, or process, that:
Misappropriation means:
Improper means includes theft, bribery, misrepresentation, use of a computer or computer network without authority, breach of a duty or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means.
Note that the First Amendment may protect you from civil liability or criminal prosecution for publishing trade secrets, provided you were not engaged in the improper conduct that led to the secrets' misappropriation. This potential protection stems from a case called Bartnicki v. Vopper, 532 U.S. 514 (2001). See Publishing Trade Secrets for more information about this case.
For generally applicable information on how a trade secrets claim works, see Basics of a Trade Secret Claim.
If the court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:
The statute of limitations for a trade secret claim in Virginia is three years. See Va. Code § 59.340.
Note: This page covers information specific to Washington. See the Trade Secrets overview for more general information.
The Washington Uniform Trade Secrets Act ("WUTSA") is located at chapter 108 of title 19 of the Revised Code of Washington. WUTSA is largely identical to the Uniform Trade Secrets Act. For generally applicable information on trade secrets claims and defenses, see Basics of a Trade Secret Claim and Publishing Trade Secrets.
Like the Uniform Trade Secret Act, WUTSA prohibits "misappropriation" of trade secrets and provides certain remedies.
Wash. Rev. Code § 19.108.010 defines the key terms of WUTSA:
(1) "Improper means" includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means;
(2) "Misappropriation" means:
(3) "Person" means a natural person, corporation, business trust, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency, or any other legal or commercial entity.
(4) "Trade secret" means information, including a formula, pattern, compilation, program, device, method, technique, or process that:
For generally applicable information on how a trade secrets claim works, see Basics of a Trade Secret Claim.
If the court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:
The statute of limitations for a trade secret claim in Washington is three years. See Wash. Rev. Code § 19.108.060.
Note: This page covers information specific to the District of Columbia. See the Trade Secrets overview for more general information.
The District of Columbia Uniform Trade Secrets Act ("DUTSA") is located in chapter 4 of title 36 of the District of Columbia Official Code. DUTSA is largely identical to the Uniform Trade Secrets Act. For generally applicable information on trade secrets claims and defenses, see Basics of a Trade Secret Claim and Publishing Trade Secrets.
Like the Uniform Trade Secret Act, DUTSA prohibits "misappropriation" of trade secrets and provides certain remedies.
D.C. Code § 36-401 defines the key terms of the Act:
(1) "Improper means" means theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means.
(2) "Misappropriation" means:
(3) "Person" means a natural person, corporation, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency, or any other legal or commercial entity.
(4) "Trade secret" means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:
For generally applicable information on how a trade secrets claim works, see Basics of a Trade Secret Claim.
If the court finds that a defendant has misappropriated a plaintiff's trade secret(s), it may impose the following remedies:
The statute of limitations for a trade secret claim in the District of Columbia is three years. See D.C. Code § 36-406.