Wednesday, November 23, 2016

Legal Geek No. 89: When Copyright Licenses Break Bad

Welcome back to Legal Geek. This week, we review an interesting lawsuit for copyright infringement filed against another producer of a recent pop culture favorite TV show, this being Sony Pictures Entertainment and the show Breaking Bad.

https://archive.org/details/LegalGeekEp89


Although it has been three years since Breaking Bad aired new content, an artist from Mexico named Humberto Puentes Segura has in the past month just sued for copyright infringement of a logo he created and licensed to Sony for use in the TV show. The logo is the two chickens with sombreros which is the centerpiece of the Los Pollos Hermanos restaurant chain featured prominently in the middle seasons of the show.

You may ask, what grounds does the artist have to stand on if he licensed his work? That's a good question, but essentially the controversy boils down to the specifics of the license agreement signed.  Puentes Segura believes he licensed the artwork only as set dressing, props, and wardrobes in connection with production of the television show, but not for reproduction of the art on merchandise.

Of course, the wild success of Breaking Bad and especially the storylines centering on Gustavo Fring and his business front Los Pollos Hermanos have led to marketability of this fake product line and its associated logo. Sony is behind internet sales of things like coffee mugs and T-shirts with the double chicken logo, which makes sense given the show's critical acclaim and popularity. The artist claims this was beyond what he agreed to license, making these sales copyright infringement.

Interestingly, Puenta-Segura argues in his complaint that he was not aware of the infringement or the popularity until October 2015 thanks to living in Mexico. That may be hard to believe, but it potentially avoids a statute of limitations problem. He also registered the mark with the U.S. Copyright Office only in January of this year, so while he can sue Sony now thanks to the registration, he is not entitled to statutory damages that come as an option with early copyright registration before infringement occurs.

That means the undisclosed damages the artist will pursue will need to be proven actual money loss damages. Even if there's merit to the claim based on how the license was drafted, the potential risk to Sony will be small thanks to no risk of the sometimes very high thousands of dollars which come into play with statutory damages.

The Bottom Line is, if you are a creative licensing works of art, music, or the like from third parties, make certain the rights obtained cover all ancillary or secondary uses you may want for the property. Otherwise you risk the revenge of a disgruntled artist when you make the big bucks on your product or concept.

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