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Volume 1 - Spring 2000

Truth in Advertising: A Look at One Right of Publicity Case Gone Terribly Wrong

This article is a critique of the distortion of the right of publicity that has allowed litigious public figures to make money from being the center of seemingly innocuous and valid public information. McPherson uses Priscilla Presley v. Third Coast Entertainment, Los Angeles Superior Court Case No. SC 049 628, to demonstrate not only the frivolity of the suits that arise from these claims, but more importantly, the infringement of the constitutional right to free speech that they impose.

Third Coast Entertainment fell prey to this exploitation of the right of publicity law when it was sued for announcing that Presley would be serving as a consultant on an upcoming movie about her life. Although Third Coast’s statement was true, and despite filing a SLAPP Motion suit which is specifically intended to dispose of such suits, Third Coast ended up paying $1.6 Million in damages to Presley.

McPherson takes a closer look at this case to illustrate the inequities and to discuss the possible ramifications of the suggestion that “any use of another’s person name, whether or not the name is being used in a true statement, irrespective of whether or not the story is newsworthy and about a public figure, whether or not it is used to endorse a product...is actionable.”

Practical Considerations for Attorneys Assisting Foreign Athletes to Play Professional Sports in the United States

This article analyzes legal issues that affect foreign athletes whom want to compete in the United States on the professional level and the attorneys that assist them. The three areas that affect foreign athletes are contracts, immigration, and taxation.

The location at which the contract is drafted may control the law that governs the specific contract, and it is often advantageous to include a provision governing the choice of law within the contract involved.

Under the present provisions of the Immigration and Nationality Act, foreign athletes must demonstrate “extraordinary ability,” or “a level of experience indicating that the person is one of the small percentages who have risen to the top of the field of endeavor.” This provision applies to foreign athletes applying for temporary admission to the U.S. under the O and P categories.

For tax purposes, an attorney assisting a foreign athlete should refer to the bilateral treaty in place between the U.S. and the foreign athlete’s nation of citizenship. Nonresident aliens are usually taxed at differing levels on income that is connected with the conduct with a U.S. trade or business, or income from U.S. sources that is not effectively connected with a trade or business in the U.S.

Trade Dress for Success: Fashion Designs as Distinctive Product Configurations

Fashion designers seeking injunctions against lower-priced imitations or “knock-offs” have met with limited legal success. Fashion is difficult to place within the context of intellectual property because fashion as a concept is difficult to define. Copyrights and design patents fail to provide effective protection for creative expression in fashion. Although design patents are available for fashion designers, they offer limited protection for fashion designs because they are slow and costly to obtain and difficult to defend as valid.

Courts treating fashion designs as distinctive product configurations have applied the law of trade dress to afford designers with some protection from knock-offs. Trade dress is the totality of the elements in which a product or service is packaged or presented. The elements of a case of trade dress infringement are nonfunctionality, likelihood of confusion, and distinctiveness.

There are two types of distinctiveness: inherent distinctiveness and secondary meaning or acquired distinctiveness. Although the Supreme Court adopted the inherent distinctiveness Abercrombie spectrum standard, the current standards for defining the distinctiveness of product design trade dress are inadequate to protect designers from knock-offs. Various courts have adopted different standards for assessing inherent distinctiveness in product configurations.

Courts need to develop a clear legal standard for product configuration infringement that allows more dispositions at the preliminary injunction stage. This legal standard should not include secondary meaning since it is too onerous a burden for designers to undertake; secondary meaning is a fact-intensive inquiry that requires proof such as consumer surveys and is costly and time-consuming.

The Digital Transmission Compulsory License: Is It in Tune with the Internet?

Full Court Pressure: A Look at the 1998-1999 National Basketball Association Lockout

For four decades, the average salary of a professional basketball player rapidly outpaced those of society at large. Following the 1997-1998 season, the National Basketball Association’s ownership sought to impose a hard salary cap on player salaries during negotiations for a new collective bargaining agreement. As the NBA Players Association stood firm in demanding either a continuation of the current soft cap system or the removal of the salary cap altogether, the league exercised its rights to lockout the players on July 1, 1998.

Ringold examines the history of the relationship between the NBA’s owners and players as a development of the legal options and strategies available to both owners and players throughout the lockout. The author then details the events leading to the resolution of the lockout, and concludes by evaluating the results of the new collective bargaining agreement.

Entertainment Contracts with Minors in Texas

Texas lacks legislation that specifically covers a minor’s contractual capacity within the entertainment industry. As the entertainment industry grows in Texas, the need for legislation to cover contractual capacity of minors will grow. Entertainment companies are leery of contracting with minors in Texas, since under Texas law, minors may disaffirm any contract, save those for necessities.

Under Texas case law, the issue of a minor’s contractual capacity with an entertainment entity has been analyzed using a tripartite factor approach. Fairness of compensation according to industry standards, protection of the minor’s earnings for the minor’s future use, and possibility of exploitation of the minor’s person in terms of safe working conditions and education continuity are all factors that Texas courts analyze when considering whether to allow the guardian to enter into entertainment contracts on the minor’s behalf.

Other jurisdictions, such as California and New York, have adopted legislation to limit the right of minors to disaffirm contracts. In California, the legislature gave courts the ability to approve contracts made with minors. The California courts have the power to make the parties establish a trust fund or savings plan as a prerequisite to the court granting approval of the contract. New York has similar legislation for entertainment contracts with minors. In New York, judicial approval of entertainment contracts with minors is also required. New York also requires entertainment companies to secure permits for minors from the mayor or any other chief executive of the town where the work will take place. Similar to California, New York allows courts to decide whether to set aside up to one-half of the minor’s net earnings for the minor’s future use. New York limits the duration of entertainment contracts with minors to three years in order to protect against the risk of earnings exploitation by the entertainment companies. Finally, New York gives the courts discretion to revoke court approval if the minor’s well-being is severely at risk.

Texas can adopt aspects of the New York and California models in order to strike the best balance between protecting the child’s rights and attracting more entertainment business by limiting minor’s rights to disaffirm entertainment contracts.

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©2007 Texas Review of Entertainment & Sports Law