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California Adopts Bill Allowing Athletes to Earn Money from Marketing Promotions or Endorsement Deals

On Monday, September 30, 2019, California Governor Gavin Newsom signed into law SB 206, the "Fair Pay to Play Act," which is a bill that could fundamentally transform collegiate athletics amateurism rules. The bill allows college athletes to earn money from the use of their name, image or likeness through sponsorships and/or endorsements, which is in direct conflict with the National Collegiate Athletic Association (the "NCAA") amateurism rules.[1] The Fair Pay to Play Act will go into effect in 2023 and will apply to all 58 California NCAA-affiliated schools.[2]

The Fair Pay to Play Act does not require colleges to pay their athletes, but rather will prohibit schools from upholding rules preventing student athletes from participating in intercollegiate athletics because the athlete is being compensated for the use of their name, image or likeness.[3] This prohibition will apply to institutions and organizations affecting California student athletes, including the athlete’s academic institution, the NCAA and collegiate athletic conferences such as the Pac-12.[4] However, colleges will be able to control the types of sponsorships or endorsements students may enter into, so that student deals will not directly conflict with preexisting school sponsorship deals.[5]

The Largest College Admissions Bribery Scandal Erupted in the United States With a Number of Celebrities as Targets

In the early weeks of March, news broke of the largest college admissions scandal in the country's history, nicknamed "Operation Varsity Blues".  At least 40 people were charged with conspiracy to commit mail fraud and honest services mail fraud for their alleged participation in the scheme. Among those charged was actress, Lori Loughlin, who is most famous for her role as Aunt Becky on ABC's hit sitcom series Full House. Charges against her allege that, in order to get her children into the University of Southern California ("USC"), Loughlin paid $500,000 to have her daughters designated as crew recruits, although it is reported that they did not participate in that sport. One day after 14 parties involved in the scheme agreed to plead guilty, 16 parents, including Loughlin and her husband, were charged in a second indictment for conspiring to commit fraud and money laundering. Loughlin has refused to plead guilty and plans to fight these charges.

This post was originally published on GSB's website as a GSB client update on April 2, 2019.

On March 4
th, the Supreme Court ruled that copyright owners must wait to file an infringement suit until the Copyright Office has registered the work. The unanimous opinion, authored by Justice Ruth Bader Ginsburg in Fourth Estate Public Benefit Corp. v. Wall-Street.Com, LLC, affirmed the Eleventh Circuit and resolved a split among the circuit courts of appeal. The decision has significant implications for copyright holders and contract or legislation drafters, and comes at a time of change.

Social media platforms provide a powerful, and efficient means for brands to partner with celebrity “influencers” and reach millions with something as simple as a photograph and a few lines of text. However, as demonstrated by the recent actions initiated by the leading consumer protection agency in the United States, the Federal Trade Commission (FTC) stressing to influencers and marketers the importance of clear and conspicuous disclosure of brand relationships when promoting products on social media, these strategies are rife with pitfalls for brands and influencers, alike.[1] So, how do individuals and brands comply? There are no hard and fast rules, but the FTC's Guides Concerning the Use of Endorsements and Testimonials in Advertising[2] (the “Guides”), provide a general roadmap within which to operate.

This post was originally published on GSB's website as a GSB Client Update on August 13, 2018.

Is Sports Betting Legal?

Betting on basketball

Until a recent Supreme Court decision addressed the question, the answer was fairly straightforward: sports betting was allowed in only four states. All other states were prohibited from legalizing sports betting.

On May 14, 2018, in Murphy v. NCAA, the Supreme Court struck down the Professional and Amateur Sports Protection Act (“PASPA”) on grounds that the Constitution prevents Congress from “commandeering” the legislative decision of states.        

This post was originally published on GSB's website as a GSB Client Update on July 9, 2018.

Although Section 411(a) of the U.S. Copyright Act states clearly that Although Section 411(a) of civil action for infringement of the copyright in any United States work shall be instituted until . . . registration [or refusal of registration] of the copyright claim has been made,” not every judicial circuit in the United States has agreed how to interpret this requirement. The U.S. Supreme Court’s recent grant of a petition for writ of certiorari in the case, Fourth Estate Public Benefit Corp. v. Wall-Street.com LLC, may resolve the current federal circuit split, deciding for the country whether a copyright must be fully registered or just applied-for before a copyright infringement lawsuit can be filed.

Simon Tam of the Asian rock band, The Slants, probably was not envisioning an 8-year-long legal battle when he chose the group’s name. Slant is known as a racial slur for Asians. Tam hoped to strip the term of its derogatory purpose and “reclaim” it by choosing it as a name for his Asian-American band, with hopes of giving it a sense of empowerment.[1] Tam’s attempt to trademark the name with the federal government failed. The U.S. Patent and Trademark Office (PTO) denied the application under the Lanham Act, 15 U.S.C. §1052(a), citing the registration as disparaging.[2] The provision prohibits registration of those marks that “consist of…matter which may disparage…persons, living or dead, institutions, beliefs, or national symbols, or bring them into contempt, or disrepute.” [3] Tam contested the Trademark Trial and Appeal Board’s (TTAB) decision and the dispute eventually reached the Federal Court.

Brexit, the United Kingdom’s (UK) decision to leave the European Union (EU), has made headline news in recent months.  Brexit is already impacting trademark rights in Europe, including in the sports and entertainment industry.

New UK Filings Required.  Trademark rights are conferred on a jurisdiction-by-jurisdiction basis.  Going forward, brand owners will not be able to rely on a single EU trademark filing to cover the same geographic territory in Europe.  In light of Brexit, brand owners now need to file trademark applications in the UK as well as the EU to protect their trademarks in the same geographic territory.  For years, separate trademark filings in Norway and Switzerland (and other European countries falling outside the EU) have been required.  Brexit adds the UK to the list of countries requiring separate trademark applications in Europe.

After a 112-year hiatus, golf is returning to the XXXI Olympiad at the Olympic golf course, Reserva de Marapendi, Barra da Tijuca, Rio de Janeiro, Brazil.[1] The men’s and women’s individual events, slated to be held on August 11-14, 2016 and August 17-20, 2016, respectively, mark the first time golf has been an Olympic event since the 1904 Summer Olympics.[2] While winning a gold medal at the Olympic Games is typically viewed as reaching the apex of a given sport – see track and field, swimming, wrestling, gymnastics and figure skating as examples, the same is not true of other sports, such as baseball, with its World Series; tennis, with its Grand Slam tournaments; and soccer, with its World Cup. If some recent high-profile declinations of high-profile players, such as Adam Scott of Australia, to compete in the upcoming Olympics is any indication, golf squarely falls in the second camp: the Olympics and the national pride they inspire are of de minimis significance to the most accomplished, world-class golfers in the modern-day sporting era.[3] However, there are many highly accomplished golfers who are enthused about participating in the Summer Olympics and as golf becomes a more established sport in the Olympic schedule, the sport will likely benefit from its return to the Olympic Games.

TattooStephen G. Rickershauser, a law student at Brooklyn Law School, is GSB's spring 2016 legal extern working out of its New York office.

What rights based in copyright law does a tattoo artist have in a tattoo itself, and to what extent can an artist use those rights to restrict the rights of others, including the people whose skin has been inked?

In February, Solid Oak Sketches LLC, a company holding the copyrights to eight NBA players’ tattoos, sued the videogame makers of NBA 2K16 in the United States District Court for the Southern District of New York.   The Complaint alleged that the videogame makers, Take Two Interactive Software Inc., infringed on the company’s right to license its copyrights in the tattoo designs when the videogame maker depicted the tattoos in its recent game without the company’s permission.[1]

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The Sports, Arts & Entertainment group at Foster Garvey provides full service legal representation on sports, entertainment and business matters, including handling transactions related to brand management, licensing, joint ventures, venture capital, private equity, technology, the Internet and new media.
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