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March 10, 2010

Supercalafragalisticexpialidocious! Can you protect coined words?

Jabberwock.jpgDear Rich: I'm creating a cartoon world which contains several coined words describing things, actions and types of creatures, a little bit like Tolkien's "Lord Of The Rings". Does copyright give me the exclusive right to use these words in money-making ways? For example, could Tolkien have restricted the sale of T-shirts that used the word "Hobbit", either by itself or as part of a phrase? 
As a general rule, copyright does not protect single words or short phrases, even if those words or short phrases are nonsense. 
Tell it to the Hand. There is an odd collection of copyright cases that indicate that nonsense words may be protectable in different contexts. In a case in which a book of meaningless code words was protected (Reiss v. National Quotation Bureau), the great jurist Learned Hand  (and odd-couple pal to J.D. Salinger) wrote, "Conceivably there may arise a poet who strings together words without rational sequence-perhaps even coined syllables-through whose beauty, cadence, meter and rhyme he may seek to make poetry." (Hand's logic in that case was later used as the basis for protecting  Apple's operating system object code. The protection of inventive words was part of the copyright-software debate  in the late 1980s since nonsense words (source code) are essentially  what facilitate our 'human-machine' communications.)
The Jabberwock. In another case, the great Justice Jerome Frank also mentioned a phrase from Lewis Carroll's Jabberwocky, "Twas brillig and the slithy toves" as an example of a nonsense phrase with sufficient originality to achieve copyright protection. There's also a case involving the word 'Supercalafragalisticexpialidocious' in which the court held that copying an inventive word could 'conceivably' create liability. And finally, a British court reviewing the word "Exxon' indicated that inventive words might be protected in some contexts. So, it's possible a sufficiently original collection of coined words will be protected.
When inventive words are character names. If you use the inventive word as a character name, you can likely achieve trademark protection without much problem. You may also get some peripeheral copyright protection for the character name as well -- for example, in one case, merchandisers were stopped from using the phrase "E.T. Phone Home" under copyright law. 
Alice's House. Yes, the new Tim Burton movie features the Jabberwock as well as the complete version of the Jabberwocky poem.

February 19, 2010

Is Excel Add-On An Infringement?

ms-excel-logo.pngDear Rich: I developed an app/program that can be opened within MS Excel to help business's organize and compile data. Even though it is an add-on to Excel, do I have any copyright or patent issues to worry about if I plan to sell this app? It's unlikely you would get a letter from Microsoft (or any other software developer) unless you either lifted proprietary code without permission, or you stepped on someone's software patent --  always a tough call in the crazy and perhaps soon-to-be-extinct world of software patents. You could run into problems if you are using a developer's kit or other licensed software and your add-on violates your license (also unlikely). Finally, you could run into a few hurdles if you advertised your add-on as being endorsed by or associated with Microsoft (or other software providers). Based on the high volume of Excel add-ons (or add-ins as they are more commonly known) the Dear Rich Staff feels that none of these issues will arise for you and you're probably going to have a problem-free release.
January 25, 2010

How Do I Copyright My Mobile App?

translink.jpgDear Rich: How do we copyright an app and do we need a marketing firm to help us once it is developed? Are we locked into Apple once it is published or can we sell it elsewhere as well? Will you send me an answer here or do I have to look on your webpage for your response? We assume you're asking how to file a copyright application since as you should know from following the Dear Rich blog, you get a copyright automatically once you finish your app--even an alpha version. 
Form CO. To file an application, you first need to determine which elements of the app are your original authorship. For example, if you only contributed some text and software code, and you licensed the rest, then you would only claim copyright (and seek registration) for what you created. You indicate that information in Form CO -- the all purpose copyright application -- in the section under 'authorship.' Later, in Section 4A of the form you must list the items for which you are not claiming copyright. 
Pick Your Category. As with any copyright application you must establish what "category" of work you are registering. Most software programs are registered as 'literary works' - an anachronism dating back to the fact that source code is written in letters and numerals. However, if your app is primarily pictures, choose 'visual arts' work, and if it is a graphics-heavy product like a game, choose 'performing arts' work. Don't worry if your app seems to straddle two categories -- just pick the one that seems best.
Do You Need a Marketing Firm? The Dear Rich Staff doesn't know whether you should use a marketing firm. That's not our bailiwick. In any case it sounds expensive
Can You Sell it Elsewhere? We don't see anything in the iPhone Developer Agreement that prohibits your porting from one mobile OS to another. 
Will We Send You the Answer? No, we won't send you the answer so if you were hoping for an email response, it's going to get very Godot-ish waiting by your inbox. Sometimes, if we're not  overwhelmed with managing our Netflix queue, scrutinizing our credit card statements (What did we order from Czechoslovakia?), and monitoring our TransLink card, we do write back to people.

Other questions about software development? See Stephen Fishman's A Legal Guide to Web & Software Development.
January 22, 2010

Software Sales, Seller's Permits, and Sales tax

It's AppDev Week!!StrangeFiction.jpg
Dear Rich: I sell my apps exclusively through the Apple App Store and I'm planning to branch out and sell another program as a downloadable for Mac. Do I have to get a seller's permit and collect sales tax? You won't need a seller's permit for the App Store; you may need it for downloadable software. Read on!
What's a Seller's Permit? A seller's permit, also called a 'resale permit,' authorizes you to make sales and collect sales tax from customers within your state. Since Apple is selling the apps to consumers, they would be responsible for collecting the sales tax if it were due. It's a different story if you are (a) selling downloads directly, (b) selling your apps on media devices such as CDs, or (c) you are selling application services. 
State Sales Tax Rules. In most states that collect sales tax, it's for tangible goods--items you can touch, such as jewelry, CDs, clothing, or food. Downloadable software and media has traditionally been off limits for sales tax. However, that may be changing as states have begun to realize the large tax revenues that are being lost. Reportedly, Alabama, Arizona, Colorado, Hawaii, Idaho, Indiana, Kentucky, Louisiana, Maine, New Mexico, South Dakota, Texas, Utah, Washington, and West Virginia now tax media downloads. Some of these states, like Kentucky and Washington, distinguish amongst downloaded materials - for example, taxing downloaded movies, music and eBooks, but not taxing downloadable software. The distinction apparently hinges on whether the download is traditional media or whether it's designed to perform a task--for example to clean up your registry. 
California Rules. One example is the California's sales tax rules (Regulation 1502) that state that:
"The sale or lease of a prewritten program is not a taxable transaction if the program is transferred by remote telecommunications from the seller's place of business, to or through the purchaser's computer and the purchaser does not obtain possession of any tangible personal property, such as storage media, in the transaction." 
In other words, without a physical object being transferred, no tax is due. On the other hand, if you convert your apps for sale as disk-based software, or you sell a guidebook to accompany your apps, that direct sale would be subject to sales tax because it involves physical goods. 
And if that weren't enough ... Also, a few states also tax services, so if you render application services you may have to collect tax on your invoices. (For example, all services are subject to sales tax in Hawaii, New Mexico and South Dakota.) The bottom line is that every state's list of exempt transactions is different, and states have different rules about when and how you must submit the tax. If you're caught doing business without a permit, you could be subject to a number of penalties--such as having to pay the sales tax you should have collected from your customers, along with a fine. You can find information on seller's permit requirements at the website of your state's tax agency. For a list of links to these agencies, go to the IRS website, choose "Business," then "Small Business/Self-Employed," then "State Links." Or, choose your state's link at the list of tax agencies provided at the website of the federal Small Business Administration. By the way, if you do have to pay sales taxes, there are, of course, several helpful iPhone apps for calculating it.
Whew ... was that long enough?  The Dear Rich Staff is exhausted!
Oh ... the movie. It's our favorite movie about a tax auditor?

Learn more about software development with Stephen Fishman's A Legal Guide to Web & Software Development.
January 20, 2010

What's My Liability for Errors in My App?

[It's App Dev Week -- Question #2!!]Snapz Pro XScreenSnapz002.jpg
Dear Rich: I've created an app that uses mass transit timetables. Since people rely on these to get to work and things like that I'm a little concerned about whether I will run into problems if there are errors in my app? What's the story on that? If an app provides incorrect information the developer is not likely to be liable to the consumer --- at least not under typical product liability theories. Although there haven't been any cases involving apps, we can analogize to the publishing industry, For example in one case, a book identified poisonous mushrooms as being safe to eat; in another case a map provided incorrect directions; in another case, a person was injured as a result of incorrect published information about enema procedures; and in another case, a woman became pregnant despite following published contraception procedures. In all of these cases, the producers of the information were not liable to the consumer. That's because published information is not considered a "product" for liability purposes. In addition, Apple's Terms of Service make it difficult for a disgruntled commuter to seek redress ("YOU EXPRESSLY AGREE THAT YOUR USE OF, OR INABILITY TO USE, THE SERVICE IS AT YOUR SOLE RISK.") That is not to say you can't be sued over these issues. It just means that you're unlikely to be liable for damages. Of course having incorrect information will torpedo your App Store ratings and your company's credibility.
Apps We Love Dept. The Dear Rich Staff hasn't located any incorrect information in our favorite mass transit app -- iBart -- which lets us know whether we should sprint from the Ferry Building to Embarcadero station. Well ... it used to let us know. One of our New Year's Resolutions is to never again (no,no) run for a bus (or Bay Area Rapid Transit).

November 19, 2009

How Do You Copyright an Educational CD?

disk.jpgDear Rich: A friend of mine has a CD with educational material (not school-related) but some type of teaching program she has put together and wants to copyright. Do you have any suggestions? Start with the principle that your friend already owns a copyright for her work. It's automatic. She should include a copyright notice on the CD, packaging and on the materials that appear on the user's screen. The notice should be something such as "Copyright 2009 [Your Friend's Name]" and if she is including recordings on the disk, there should also be a "P" in a circle followed by similar information -- "2009 [Your Friend's Name]." 
Should she apply for copyright registration? According to the Dear Rich Staff there are benefits for registration but it is not required for copyright protection and is usually only needed if you're going after someone who ripped you off. We're guessing that since the program is on a CD, it contains various media -- text, music, photos, or some combination. In that case, there's a Nolo book that explains the process for multimedia registrations. If it's only text, this book will explain what to do. The easiest approach is to go straight to the Copyright Office for assistance. Here's a circular for registering multimedia works; here's one for registering text works.
October 20, 2009

Onions, Camels, and Perl Trademarks

iStock_000007402648XSmall.jpgDear Rich: I want to create a trademark called AlchemicPerl. Perl is a programming language and the Perl Foundation, who owns the registered trademark has told me that I cannot use the word Perl. Does AlchemicPerl violate their trademark? AlchemicPerl will be used to market software and consulting services related to the Perl programming language. I know there is also a trademark called ActiveStatePerl which seems not to have a problem but I just wanted to be more certain. The short answer is that we're not sure what will happen if you proceed but we have a feeling it's not going to be good. The Perl Foundation does have a federal registration for the word PERL combined with the image of an onion. The registration is for computer software among other things and the Perl Foundation warns others against using the word, Perl, as part of a software product (and even counsels about using an onion, the Perl mascot, too). The foundation's desire to protect this mark has something to do with its intention to maintain the Perl language as an authenticated open source language without worrying about commercial interlopers preventing others from using the name --  a tactic that can have unexpected publicity consequences for those seeking open source freedom. 
What's a bit confusing for us ... and for you as well is that the ActiveState Software company, as you point out, also owns registrations -- we counted at least four -- for other Perl-related trademarks. Possibly the foundation and ActiveState -- which makes and sells commercial proprietary Perl software --  have reached an agreement as to their mutual use, possibly based on ActiveStates' prior registrations. That's just a guess and hopefully a reader will provide more details for a follow-up response. By the way, ActiveState also applied for VISUAL PERL as a trademark but that application was rejected for the Principal Register (as being descriptive) and was relegated to the less-than-cool Supplemental Register. In any case, there are two entities claiming federal trademark rights for PERL and that does not bode well for your intended use.
Let's not forget about the camel ... There's also a third Perl trademark in action and that's the camel associated with O'Reilly Perl books. (O'Reilly also owns the "perl.com" domain.). Perhaps that has something to do with the fact that Larry Walls, the creator of Perl, works for O'Reilly, and is the author of their guide to Perl, nicknamed the Camel Book. 
Hurdles and More Hurdles. The Dear Rich Staff believes that you have a series of challenges ahead of you -- for example, a trademark examiner may object to your use based upon the existing registrations; or ActiveState and the Perl Foundation may oppose the registrations as being likely to confuse. For these reasons, we'd probably back off the choice of AlchemicPerl. In addition, you might be concerned about the use of the prefix, "ALCHEMIC" and "ALCHEMY." We just got a solicitation in the mail from an Alchemy Software company in Texas, and we see a company in Florida is seeking a federal registration for ALCHEMY (which might be a problem considering there already is an existing registration for ALCHEMY for computer software for data and document capture.) And there's also a web production company called Alchemic Productions.

For specific questions about trademark law, see my book with Stephen Elias, Trademark: Legal Care for Your Business & Product Name. 
July 6, 2009

Trademarks in iPhone Apps

ipodDictionary.jpgDear Rich: I'm working on an iPhone app that uses trademarks from other companies, including Apple. Apple has rejected my app and won't approve it unless I remove these  trademarks. Is that legal? The short answer is that Apple can make you change your app. Developers are bound by Apple's trademark guidelines which are incorporated into your Apple Developer Connection agreement.("You agree to follow Apple's Guidelines For Using Apple Trademarks and Copyrights..."). In addition, Apple will remove or reject apps if it feels that the use of a trademark violates the law (or somebody files a lawsuit). More importantly, as recent rejections indicated, few developers want to get into a public dispute with the App Store team since they control the most lucrative mobile apps gateway. The Dear Rich staff believes that paDictAppFree.jpgtience, persistence, and unconditional love is the best approach when dealing with an illogical app store rejection.  
April 23, 2009

Who Owns Software Created After Hours

coder.jpgDear Rich: Who owns the rights to software that is developed voluntarily and during one's own free time (after work hours) but who offers use of the software to his employer? I'm so glad you asked. As a general rule, if the software is not something you would create in the course of your employment and you created it on your own time, using your own equipment, then you own it. If you let your employer use it, then you have granted a non-exclusive implied license. To get a more comprehensive answer, the Dear Rich staff would need to know:
  • Did you create the software at work (or using work equipment)?
  • Does the software use code or trade secrets owned by or developed for your employer?
  • Did you sign an employment agreement that discusses ownership of employee creations?
  • Does your employee handbook at work have rules regarding employee-created innovations?
If the answers are all, "No," then you own the rights. If you answered "Yes" to some or all of the questions, you may still own the rights but you will need to sort out some murkier issues. You can find an explanation for all these principles in my book, Profit From Your Idea. (Try searching inside the book using Google Book Search). Keep in mind that even if your employer owned the rights, you might still be able to earn revenue from the software.
March 17, 2009

Business Software Copyright and Ownership

BizMoney.jpgDear Rich: I developed an Excel Workbook for use by business brokers. I have allowed business brokers in our parent company to use this Excel pricing model. I filed a copyright on the software and received a trademark on the name for the software. I have also used a third-party compilation software to compile the program so I can set an expiration date, EULA, etc. The program now requires a registration key that is locked to a specific computer. My question is what right do I have regarding the copies of the Excel version that are being used by people in our parent company? Can I require them to destroy the Excel files and use the compiled (executable) version? I'm so glad you asked. Assuming that you developed the software in the course of your employment, then your company owns the copyright under work made for hire rules. And assuming you are using the standard definition of "parent company," there's a strong possibility that the parent owns the assets of your subsidiary company, including the intellectual property. So, under those facts, you would not be in a position to tell them what to do with the software (since they would own it).

If you created the software independently -- for example, before working for your current employer (or if you signed an agreement that granted you ownership of the software rights) -- you would own the copyright. Keep in mind, registration of your copyright does not prove that you own the underlying work; it creates a presumption of validity and ownership. The Dear Rich staff cannot advise as to the copyrightability of software code embedded in the formulas of an Excel spreadsheet. As far as the trademark goes, you acquired a federal registration on the Supplemental Register under your own name in 1999, not your company's name.  (As you may be aware, the Supplemental Register provides limited trademark rights.) Since the Dear Rich staff does not know all of the dates and facts regarding your case, we recommend that you contact a lawyer to look at your paperwork before you assert rights against your parent company.