FINAL EXAM-SPRING 2002
PROFESSOR MARC GREENBERG

INTERNET & ONLINE LAW- GOLDEN GATE UNIVERSITY

 

THIS IS AN OPEN BOOK. OPEN MATERIALS EXAM. You have three hours to complete the exam. You may use any notes, books or other materials to assist you in responding to the questions.

There are two (2) essay questions on this exam. Each question is worth fifty (50) points. I suggest you spend 1/3` of your time on each question outlining your response, and then write for the remaining time you allocate for each question. If you use the full period of three hours, this would mean outlining for 30 minutes and writing for 60 minutes on each question. Each subpart is equally weighted for grading purposes, so divide your response evenly among the subparts - do not write a full answer for one part and a short answer for another part. Answer each question as fully as you can, citing any appropriate cases, industry standards, and statutes that are relevant. Write your answer in a blue book, or type it on plain, unmarked typing paper. PLACE YOUR EXAM NUMBER ON EACH BLUE BOOK. At the end of the exam, please turn in your exam books, scratch sheets and exam questions.

DO NOT WRITE ON BOTH SIDES OF THE PAGE. WRITE LEGIBLY OR PRINT IF YOUR HANDWRITING 1S DIFFICULT TO READ. WRITE ON EVERY OTHER LINE. If I cannot read your response to a question, your grade will be adversely affected.

 

Question No. 1 (50 Points)

You have been approached by Conquest, Inc., a Texas based company that produces and maintains a web site on the World Wide Web. The site is a passive information site, which is dedicated to spreading Conquest's message, which is that what the world needs now is a return to the principles of Nazism as spelled out by the Nazi party in the 1930's. The Conquest site, although based in Texas, is available through Yahoo and other search engines, all over the world. A German peace group has accessed the site in Berlin, and has filed a suit in Germany against Conquest, alleging violation of Germany's hate crime laws, which forbid pro-Nazi organizations from distributing pro-Nazi information.

Remember the Yahoo Case outcome - the French Court found a violation of their hate crime laws, but the USDC found that the First Amendment protected this speech, and held that the French Court Order could not, therefore, be enforced in the USA.

Conquest has also experienced problems in the U.S. about their site. The site contains excerpts from a variety of previously published works, both in the U.S. and from Europe, all of which are from authors who are either still alive, or died within the last 55 years.

This poses several problems. As to the currently alive authors, there will be possible copyright claims, subject to fair use defenses. As to those who died within the last 55 years, if they had copyright protection, the copyrights may have expired under the 1909 act which allowed for two 28 year periods, if renewal was accomplished.

Conquest does not have any permission from anyone to post these excerpts, and both they, and their Internet Service Provider, a Texas company called Albeit, have been sued for copyright infringement.

Arbeit may have a safe harbor under the DMCA as an Internet Service Provider, provided they had no prior notice before being sued. If they had prior notice, and took no action to remove the content or suspend the site while the parties resolved their dispute, then Arbeit may be found contributorily liable.

Conquest asks you to advise them about the legal issues they and Arbeit face in the two lawsuits. In particular, they ask what is the relevant law governing the issues presented in the suits, and what defenses they can raise in response to the suits. As always with clients, they also ask what arc their chances of successfully defending against each suit. What is your advice for them?

German Suit - a likely stalemate. They will be found liable in Germany, but a US court will refuse to enforce the judgement. If they have assets in Germany, they could lose them. Conquest can argue that the German court lacks jurisdiction because Conquest is located solely in Texas, but the German Court will likely find jurisdiction because the harm occurred there, not in Texas. The passive nature of their site offers no help in their defense, because the tort principal that jurisdiction lies where harm occurs will govern.

US Suit - Living Authors - a likely loss for Conquest. Their only hope here is fair use. The nature of the material they took is commercial books, which doesn't help them. Their use is for profit, which also doesn't help them. The amount and substantiality of the work they took may help them, if what they took was a small and insubstantial amount of the material in each book. Lastly, the impact on the market may be significant. Based on this analysis, the outlook for Conquest is not great for success on the fair use argument - but not an absolute easy win for either side.

US Suit - Dead Authors - the outcome depends on whether the work is in the public domain. If it is, no infringement. If not, possible infringement, subject to the same fair use analysis.

Arbeit's Liability - Arbeit may have a safe harbor under the DMCA as an Internet Service Provider, provided they had no prior notice before being sued. If they had prior notice, and took no action to remove the content or suspend the site while the parties resolved their dispute, then Arbeit may be found contributorily liable.

 

Question No. 2. (50 Points)

Based on their belief that the recent legal problems of Microsoft has left an opening in the marketplace for a competing combined operating system and business management system, a company called The Authority has developed a new operating system and business management software package called Planetary.

First thought - are the operating system adn the application package the same for copyright protection? Probably not - the operating system, which tells the computer how to operate, may contain more functional elements than the application software. How to find out what is or is not patentable about these two software systems? In the 9th circuit we use the Altai system for filtration. Begin by filtering out all abstract aspects of the program, then look at public domain material. Then look at elements dictated by efficiency or the marketplace. What's left may be copyrightable expression. Then look to see if it is original and expressive in nature.

The Authority plans to secure worldwide rights, both online and in the real world, to the name "Planetary".

When considering international copyright protection for software, remember that the "sweat of the brow" concept is not accepted in the entire world. The software will have to be registered in each nation where you seek protection.

To secure its place in the market, The Authority plans to offer major, well known software developers such as Adobe and Symantec generous cash incentives if they will only write software to run on the Planetary system, and cease writing software for Windows, Apple, or Linux. After driving competition out of the marketplace, their inside office memos reflect that they plan to drive the price of the Planetary system very high, based on the fact that they will then be the only such system on the marketplace.

Antitrust violation possibility - their conduct appears to be anti-competitive.

The Authority asks you for advice on the following points:

1. How can they protect the name "Planetary" in both the online and real world?  What steps should they take to obtain name protection?

This goes to the trademark system in the US and the rest of the world. Protection in the US means going through our TM system as follows:

As far as the rest of the world, you should look to the CTM or Madrid Protocol system for registration in EU, and separate countries' registration for the rest of the world.

As far as online, they could approach ICANN for domain name registration worldwide. Disputes could then be handled by UDRP via WIPO.

2. How can they protect the intellectual property rights in the operating system and business management software package? What problems, if any, will they face in attempting to secure this protection?

3. Are they likely to incur any legal problems in carrying out their marketing plan, and if so, what are those problems, and what can they do to overcome them?  What is your advice to The Authority?