On May 18, 2023, the United States Supreme Court ruled in favor of famed rock photographer Lynn Goldsmith against the Andy Warhol Foundation for the Visual Arts, Inc.’s (AWF),[1] in a long-awaited decision impacting fair use under Section 107(1) of the Copyright Act. The opinion written by Justice Sotomayor, in which Justices Thomas, Alito, Gorsuch, Kavanaugh, Barrett and Jackson joined, held that the “purpose and character” of AWF’s commercial use of Warhol’s portraits of Prince shared the same commercial purpose of the original photograph taken by Ms. Goldsmith and, as a result, did not constitute fair use.[2] The Court’s decision affirmed the ruling of the Second Circuit Court of Appeals, which held that the Warhol work was derivative of the original, and noted that “the new expression may be relevant to whether a copying use has a sufficiently distinct purpose or character” but that factor was not dispositive by itself.[3] The Court found that the Warhol Foundation’s licensing of the Orange Prince to Conde Nast did not have a sufficiently different purpose as the Goldsmith photograph because both were “portraits of Prince used in magazines to illustrate stories about Prince.”[4]Continue Reading Supreme Court Finds Warhol’s Commercial Licensing of “Orange Prince” to Vanity Fair Is Not Fair Use and Infringes Goldsmith’s Famed Rock Photo
Restrictive Covenants in Real Estate: Next Antitrust Enforcement Target?
The Federal Trade Commission (the “FTC”) and Department of Justice, Antitrust Division (the “DOJ”) (together the “Agencies”) continue to carry out the Biden Administration’s stated mission to reinvigorate antitrust enforcement to “Promote Competition in the American Economy.”Continue Reading Restrictive Covenants in Real Estate: Next Antitrust Enforcement Target?
New California Bill Seeks to Eliminate Certain Food Additives
Candy and sports drink aisles in California grocery stores could look very different if AB418 is passed into law. The California Assembly has proposed amending the state’s Health and Safety Code to prevent the manufacture, sale, delivery, distribution, holding, or offering for sale any food that contains any of the following substances:Continue Reading New California Bill Seeks to Eliminate Certain Food Additives
Website Accessibility Litigation Continues to be Costly and There is No Easy Fix
Retailers continue to be targeted by website accessibility lawsuits. Unfortunately, the legal landscape remains unpredictable and it varies greatly based on what jurisdiction a retailer is sued in. There remains no easy fix to prevent litigation. Plaintiff’s lawyers argue that “inaccessible” websites or mobile apps fail to comply with the Americans With Disabilities Act or similar state civil rights laws. However, there are no set of detailed website accessibility standards or regulations and instead, the Department of Justice’s position has been that the Americans with Disabilities Act’s general nondiscrimination and effective communication provisions apply to web accessibility. The Department has directed that businesses look to existing technical standards for website accessibility including the Web Content Accessibility Guidelines (WCAG) and the Section 508 Standards, which the federal government uses for its own websites. And despite the absence of formal website accessibility standards, the Department has continued to file enforcement actions against businesses who operate websites that it deems inaccessible.Continue Reading Website Accessibility Litigation Continues to be Costly and There is No Easy Fix
How to Succeed in Environmental Marketing Claims
Environmental marketing claims often present something of a Catch-22—companies that are doing actual good for the environment deserve to reap the benefits of their efforts, and consumers deserve to know, while at the same time, heightened scrutiny from the Federal Trade Commission (FTC), the National Advertising Division (NAD), state regulators and the plaintiffs’ bar have made such claims increasingly risky. Continue Reading How to Succeed in Environmental Marketing Claims
California’s Toxic-Free Cosmetics Act Bans 24 Ingredients From Cosmetic Products
Effective January 1, 2025, a new California law will prohibit 24 ingredients from use in cosmetic products. California’s Toxic-Free Cosmetics Act [Assembly Bill (“AB”) 2762] was signed into law by Governor Gavin Newsom on September 30, 2020, amidst continued public health concerns about chemicals in consumer products. The law makes California the first state to effectuate a state-wide ban of these ingredients, all of which are already banned by the European Union.Continue Reading California’s Toxic-Free Cosmetics Act Bans 24 Ingredients From Cosmetic Products
Takeaways from the Hermès Litigation over MetaBirkins NFTs
The highly anticipated jury verdict in the Hermès litigation over MetaBirkins NFTs has some important takeaways for both artists and sellers of NFTs as well as brand owners.Continue Reading Takeaways from the Hermès Litigation over MetaBirkins NFTs
The Push for Pay Transparency: New Laws in 2023
In 2021 and 2022, we saw a wave of pay transparency laws aimed at improving pay equity. It first started with Colorado in 2021, then New York City in late 2022. Recently, states such as California, New York, Washington, and Rhode Island have passed similar pay transparency laws. These laws often differ by locality and state, creating many compliance questions for employers.Continue Reading The Push for Pay Transparency: New Laws in 2023
Non-Compete No More? FTC Proposes Broad Ban of Non-Compete Agreements
On January 5, 2023, the Federal Trade Commission (“FTC”) unveiled a proposed ruling that would essentially ban noncompete agreements across the country. This proposed ruling is based on a finding that noncompete agreements constitute an unfair method of competition and violate Section 5 of the Federal Trade Commission Act.Continue Reading Non-Compete No More? FTC Proposes Broad Ban of Non-Compete Agreements
Brush Up On Your Opt-Outs: Calif. AG Signals Mobile App Investigative Sweep
California Attorney General Rob Bonta recently announced a new privacy investigative sweep. The AG is sending letters to businesses with mobile apps that have failed to follow the California Consumer Privacy Act (CCPA).Continue Reading Brush Up On Your Opt-Outs: Calif. AG Signals Mobile App Investigative Sweep