Tag Archives: editorial

PACA and Cengage Look to the Future of Licensing

PACA is pleased to announce that the Editorial Relations Committee (ERC) has completed its review of the new Cengage Insert Agreement.

The ERC was initiated in October 2010, in part to rebuild communications and good will with editorial and educational publishers, which had become strained. In addition, publishers desired to use images in new ways and introduced contracts with new definitions. Members were frustrated with the long delays in reviewing these new agreements and understanding new terms. ERC hoped to work with publishers to improve the working relationship.

At the 2012 PACA annual meeting, Ken Carson of Cengage spoke to PACA members about Cengage’s new philosophy in licensing, and its desire to create agreements which are more in line with the way publishing is evolving, with no print runs but transparency in reporting usage and annual reviews of license terms.

After the meeting, Ken reached out to PACA to see if he could work with the ERC to ensure that the new Cengage agreement presented a balanced approach to licensing, provided clear terms and considered the concerns of the membership.

For the last eight months, the ERC and Cengage met in person on several occasions and exchanged comments. We believe that the resulting contract clearly communicates the rights Cengage requests, and reflects a balanced agreement with transparency of reporting, with opportunities to revisit the terms in the future. What it does not do is establish any pricing. This is for each member to negotiate individually.

The goal was to introduce an agreement that avoids long delays in reviewing defined terms as well as legal review fees. For those working with other publishers, we do not believe this is the only form, but one option that we believe works for both parties

The ERC and Cengage are pleased with the outcome of their efforts and look forward to a continued cooperative relationship. For more information, contact editorialrelations@pacaoffice.org or Michael Baynes at Michael.Baynes@cengage.com.

Marshall Thompson vs. Getty Images (US), Inc. (N.D. Ill. 2013)

by Nancy Wolff, PACA Counsel

Marshall Thompson vs. Getty Images (US), Inc. (N.D. Ill. 2013)

Getty Images successfully defeated a claim by Marshall Thompson, singer and sole living member of the “Chi-Lite”, alleging that the online posting of his photo for possible licensing, was a violation of his right of publicity under Illinois Right of Publicity Act (IRPA), despite a contrary ruling (in a factually similar case) in Illinois in 2007.

Right of publicity laws, unlike federal copyright law, vary from state to state. Some states publicity/privacy law is based on common law (cases) solely, others have enacted statutes. State laws are not consistently drafted, nor interpreted. IRPA “prohibits the use of an individual’s identity for commercial purposes without his written consent.” At issue is whether or not there has been a “commercial purpose” requiring consent. In general, uses which are considered “editorial” in nature, used to illustrate a subject of newsworthy or social interest, do not require consent of the subject depicted, or a model release. Images used for advertising or commercial purposes, however, require releases of the subjects depicted. This practice is consistent with the First Amendment which favors freedom of expression over privacy, and what is considered a commercial purpose under state law should be interpreted in a manner that avoids running afoul of the First amendment and chilling speech.

IRPA defines a commercial purpose as ‘the public use or holding out of an individual’s identity (i) on or in connection with the offering for sale or sale of a product, merchandise, goods, or services; (ii) for purposes of advertising or promoting products, merchandise, goods, or services; or (iii) for the purpose of fundraising.” Thompson asserted that under IRPA Getty Images “used his photos to promote the sale of a product, i.e., his photos,” and “Getty [Images] conduct made his photos available for commercial use,”.

The court examined the manner in which Getty Images offered images for licensing to determine if its practice violated Illinois law. It noted that Getty Images posts low-resolution, watermarked images online, to enable users to easily determine which images they may want to license. Getty Images then charges users a license fee. Images without model release are identified for “editorial use[s] only.”

The court held that the display of images is not a commercial purpose, as the “statute’s commercial purpose requirement does not prohibit the mere sale of someone’s photograph. Rather, the IRPA prohibits the use of an individual’s image to promote or entice the purchase of some other product than the photograph itself.” Here, there is no “other product” besides the photograph itself. “Getty Images does not use Thompson’s photographs in connection with an offer to sell or a sale of some other product, merchandise, good, or service as contemplated by the statute.” The only “product” being sold, is the license to use that particular photograph. In its discussion of IRPA, the Illinois House of Representatives provided some examples of the type of commercial uses that the IRPA was designed to cover, including “the unauthorized use of an individual’s picture on the back of a … bus indicating that he endorsed a particular kind of hair tonic and an ad by a food establishment stating that its cheeseburger was endorsed by the Speaker of the House.”

The court also rejected Thompson’s argument that Getty Images should be held liable for any unauthorized commercial use by its customers, “as it would extend liability too far and chill speech protected by the First Amendment.” The court noted that Getty had no knowledge of its customers’ impermissible uses. If Getty Images licenses a photo to Customer A for editorial use, and Customer A impermissibly licenses the image to be used on a coffee mug, Getty Images would not be held liable.

Importantly, the court declined to follow the state appellate court’s 2007 ruling in Brown v. ACMI Pop Div.,). In that case, James Brown sued Corbis alleging that the offering of images for license on the internet violated his rights of publicity under IRPA. The court initially found Corbis conduct noncommercial but later reversed itself and concluded that Corbis was using Brown’s image to sell a “product” (the photo) and that was sufficient under IRPA. Here, the district court believed that the reasoning used by the state court “contradicts the plain language and purpose of the statute as interpreted by this Circuit’s case law and informed by legislative history.” The broad reading of IRPA, under Brown, according to this court, would “extend liability too far.” In other words, the “product” must be something other than the photo itself.

Conclusion
This decision reverses one of the most troubling state court decisions involving an interpretation of state publicity law, and the difficulty state courts have in determining what is a “commercial purpose” under state right of publicity statutes. Although the Supreme Court of the US has said that a profit motive does not remove First Amendment protection, the fact that a license fee is earned from the sale of an image used for editorial purposes, continues to confuse some courts. As the business of licensing images today requires the display of images online, it is critical that courts understand the distinction between a commercial use by an end user and merely previewing images for possible image licensing and do not convert an entire business model into state law publicity violation. Otherwise, media outlets that depend on image licensing for content will ultimately be deprived of sources in such states.

PACA’S ROLE IN ADVOCATING FOR THE INDUSTRY

For this reason PACA has been actively following legislation in states that are considering enacting or expanding existing right of publicity statutes, to make sure that any language proposed is clear as to what uses require consent in order to avoid the expensive litigation required in cases brought by the likes of James Brown and Marshall Thompson. PACA is currently working with a lobbyist in Massachusetts to insure that a proposed descendible right of publicity law does not interfere with image licensing. Getty Images has been supporting PACA in this effort with the lobbyist. We have been working with the proponents of the bill to add specific language to protect image licensing. Similarly, we have written the legislature in NY, NH and MD on behalf of PACA when there have been attempts by states to expand their right of publicity law. While state legislatures may read newspapers and magazines, in print or online, they do not realize that there is an industry behind the scenes making these images available to the media via licensing. Statutes will protect the end product, the magazine, newspaper, news broadcast, but not the act of licensing. Our role is to explain the industry and its importance of making images available online for possible use without risk of litigation.