Impact of Warhol v. Goldsmith: Kat Von D and the Miles Davis Portrait

Following the Supreme Court decision in Andy Warhol Foundation for the Visual Arts v. Goldsmith in 2023, we published a blog titled “The Supreme Court’s Decision in Warhol v. Goldsmith: Interpreting Copyright Fair Use.” In that blog, we discussed the concept of Fair Use in the copyright context while also highlighting the key facts of the Warhol decision which we recommend reviewing prior to continuing to read this blog, if you need a refresher. We are revisiting this topic as a new case has been revived due to the precedent set by the Supreme Court, a case that involves a portrait of the acclaimed jazz musician, Miles Davis, which was taken by a Los Angeles-based photographer and used by a celebrity tattoo artist as the reference photo for a tattoo.

As a quick refresher, the term Fair Use is often mentioned in relation to the use of portion of a copyrighted material for purposes such as criticism, comment, news report, teaching, scholarship or research. When used for such purposes, the court has generally held that unauthorized use of the copyrighted material is not considered infringement as long as the use does not fail the four-factor test described in more detail in our previous post. The most scrutinized factor of the four-factor test is commonly referred to as the transformative use test which seeks to determine whether the use of the copyrighted work in question transformed the purpose and character of the work into something else, such as parody or commentary. In the Warhol case, Andy Warhol was commissioned by Vanity Fair to create a cover for the magazine’s story on the artist Prince. Andy Warhol was given a portrait of Prince taken by a rock-and-roll photographer, Lynn Goldsmith, for use as a reference photo under a license between Lynn Goldsmith and Vanity Fair. The license stipulated that Andy Warhol could use the photo for one time only and Lynn Goldsmith was paid $400. Andy Warhol, without executing additional license agreements, created 15 additional works using the reference photo. Importantly, one of these works by Andy Warhol was later licensed to Conde Nast for the specific purpose of using the work in a magazine article about the artist Prince. This use of Andy Warhol’s Prince artistic work, was ultimately the basis for the Supreme Court’s determination that Fair Use was not applicable due to the lack of transformative use. The fact that Andy Warhol used his artistic abilities to alter the reference photo was not transformative because the purpose and character of the unauthorized use was identical to the original – authorized – use of the reference photo: depicting Prince in a magazine story about Prince.

The above summary was intended to refresh the Fair Use discussion in the context of a well-known artist as this fact pattern as once again emerged in the case of Jeffrey Sedlik v. Katherine Von Drachenberg (aka Kat Von D). The facts of this case are pretty straightforward: Sedlik is a professional photographer and a professor who created and owns the copyright to a photographic portrait of the famous jazz musician, Miles Davis, that was created in 1989 and first published in JAZZIZ magazine in that same year (copied below and used under the Fair Use exclusion of commentary). This photo has been featured in magazines around the world and was featured in Life magazine’s annual “Picture of the Year” issue. Sedlik has sold licenses to the portrait which authorized reproduction, distribution, and display of the portrait for commercial and non-commercial purposes since it was created.

The other party to this case, Kat Von D, is well known in certain circles as a world-renowned tattoo artist who has appeared in various reality TV shows and magazines which can be found on her personal website. According to the complaint, Kat Von D is also a recording artist, TV and film producer and owns and operates a tattoo parlor, an art gallery, a cosmetic company, a clothing company, and a shoe company, all of which have earned her 7.4 million followers on Instagram and 12 million followers on Facebook. In 2017, Kat Von D used the Miles Davis portrait, without Sedlik’s authorization, to create a reproduction of the image in the form of a tattoo on the arm of friend whom she did not charge for the service. She featured the portrait and her work tattooing the portrait on her social media channels which Sedlik claims was done to promote and solicit the sale of goods and services of Kat Von D and her various commercial brands, as seen in the image below which was taken from the complaint.

When the case was initially brough before the court, the Andy Warhol case was not yet decided and the judge initially ruled for Kat Von D in a summary judgement decision but paused the proceeding until the Supreme Court rendered its opinion on the Warhol matter. Following the Supreme Court holding, the stay was lifted and the lawsuit was set for trial based on the Supreme Court’s opinion on the transformative use, or lack thereof, in the Warhol case. The trial for this case is set to begin in early 2024 in the United States District Court for the Central District of California and poses a number of interesting questions about the reach of Fair Use under the new precedent established in the Warhol decision. While we will have to wait and see the final outcome of this case, there would be material impacts on various industries such as the tattoo industry, and perhaps even on generative AI. In the tattoo industry, use of copyrighted reference photos is common and has largely continued without disruption due to the costs of litigation compared to the typical damages for copyright infringement and the difficultly is placing a value on the personal display of an infringing work on the body of the person displaying said work. More broadly, when viewing this issue through the lens of visual works created through generative AI based on training models using copyrighted works without license, the growing body of legal decisions following the Warhol decision by the Supreme Court may pose a barrier to the field as these AI tools generate countless derivative works that may be violating the Fair Use conditions. We will keep a close eye on the trial in this case and provide an update to the blog series as the trial progresses.

Lynn’s Picks: Foresight’s Patent of the Week – US Granted Patent 11,861,255: Wearable Device for Facilitating Enhanced Interaction (Apple Inc.)

 

Disclaimer: This blog was created for informational purposes only and does not represent Foresight’s or the author’s opinion regarding the validity, quality or enforceability of any particular patent covered in this blog.  Foresight is not a law firm and no portion of the information contained in this blog was intended to serve as legal opinion.

In this week’s blog, we are following up on our first post in the series highlighting Rivian’s Spare Wheel Containers for a Vehicle (link to blog) patent application with a newly issued patent from Apple titled Wearable Device for Facilitating Enhanced Interaction. Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables and accessories worldwide and reported $383 billion in total revenues in fiscal year 2023, based on the company’s most recent annual report. In addition to the traditional offerings many of us use throughout our day, Apple is debuting a new form of content consumption, computer usage and productivity called the Vision Pro which is set to start accepting pre-orders on January 19th. The Vision Pro is a form of spatial computing that utilizes artificial intelligence and computer vision to combine virtual content with the physical world. Many will view this technology as the next step in Augmented Reality/Virtual Reality (AR/VR) and we have seen early forms of this technology in products such as Magic Leap or Oculus (now Meta Quest). While this blog is not an endorsement of the future of spatial computing, Apple’s participation in the market is a sign of market traction and likely growth in rollout of consumer products targeting the typical use of personal computers rather than being driven by gaming applications, which is the reason this patent was selected to be highlighted in this blog series.

As seen in the images below, the issued patent, which was filed in 2018, addresses the person to person interaction element that is anticipated when a user has a computing device covering the majority of their face. Given the intent of this device to be used in a similar manner in which our phones and computers are currently being used, there needs to be a way to allow personal interaction in a fashion that is not currently available in most VR or other head devices. To overcome this issue and to provide the user with awareness of and engagement with the real-world, the patent presents a system with internal and external cameras and displays to facilitate interaction between the wearer and another person or environment.

 

In order to allow the device to be a practical device for any number of targeted uses, isolating the wearer from the environment while also preventing those surrounding the user to interact with the user in a traditional way, requires the device to have the ability to show human expression which is a critical component of person to person interaction. One could easily argue that such a system is unnecessary but the same has been said about a myriad of technologies that have emerged over the past 10-20 years that we utilize every day, whether that is a personal assistant like Siri or a toaster with an interactive display. The inventive process should not be limited by current habit of the consumer, but rather, the inventive process should anticipate and nudge the consumer into seeing the value and purpose of the underlying inventive concept. This can be seen in other images from the patent copied below. Is it necessary to display the wearer’s facial expressions as if the wearer’s eyes were that of a lion? No, but it is a feature that consumers immediately understand due to the similarity to the endless number of filters we can apply to our faces during facetime or other video calls. Will this lead to enjoyable mishaps like the lawyer on a zoom conference in District Court that could not figure out how turn off the cat filter? It remains to be seen how the consumer interacts with the facial features of the Vision Pro and whether these features are “facilitating enhanced interaction” as the patent’s title says.

Have you come across any interesting patents you would like us to feature in future blogs or did you invent a technology you would like featured? Please send us an email at media@foresightvaluation.com or call our office at (650) 561-3374.

 

Lynn’s Picks: Foresight’s Patent of the Week – US Patent Application 17/852,089: Spare Wheel Containers for a Vehicle (Rivian Automotive)

Disclaimer: This blog was created for informational purposes only and does not represent Foresight’s or the author’s opinion regarding the validity, quality or enforceability of any particular patent covered in this blog.  Foresight is not a law firm and no portion of the information contained in this blog was intended to serve as legal opinion.

In this week’s blog, we are kicking off the Lynn’s Picks blog series by highlighting a recent filing by Rivian Automotive carrying the US patent application number 17/852,089 titled: “Spare Wheel Containers for a Vehicle”. Rivian Automotive, Inc. designs, develops, manufactures, and sells electric vehicles and accessories. The company offers several models of electric pickup trucks and sports utility vehicles. It provides Rivian Commercial Vehicle platform for Electric Delivery Van with collaboration with Amazon.com, Inc. The company sells its products directly to customers in the consumer and commercial markets. Rivian Automotive, Inc. was founded in 2009 and is based in Irvine, California.  In fiscal Year 2023, Rivian reported $3.8 billion in revenues, based on the company’s most recent annual report.

As seen in the images below, the patent application, which was filed in June of 2022, relates to a container built into a spare tire holder that would enable the user to utilize the space inside the tire that is typically used exclusively to simply hold the spare tire. In the system seeking patent protection, this traditionally unused space would now provide storage through a “plurality of containers each comprising a respective container type” and electrical components that would allow the vehicle to identify the container type. The patent specification includes a variety of different applications for these containers including, but not limited to: fluid container configured to transfer water, coolant, lubricant or other fluids between the vehicle and the container; a storage container that could hold a first aid kit or toolbox; an identifier tag such as RFID as well as an auxiliary battery coupled to the vehicle’s electrical system. As you review the specification of the patent, you will see a number of potential applications to this technology and probably can come up with a few that you would like to see in your vehicle.

It is important to note that this is a pending patent application that has no guarantee of issuance and even if a patent is issued, the final claim language may look very different from the proposed claim language due to the existence of prior art that may require modifications to the proposed claim language.  That being said, we selected this application for the first of this series because it highlights the relative simplicity that often is tied to innovation. In this case, an engineer likely saw an open space that is rarely used for anything other than to cover the spare tire (for example, any Jeep Wrangler you see on the road is either displaying the tire or the tire cover with either JEEP or some personal message being displayed) and sought out to create a use for that empty space. The fundamental concept here is to make use of available space, a concept we all can relate to. It is a great example of finding way to improve things you interact with every day and finding ways to protect those improvements.

Have you come across any interesting patents you would like us to feature in future blogs? Please send us an email at media@foresightvaluation.com or call our office at (650) 561-3374.

Masimo vs. Apple: The Role of the ITC in Patent Disputes

As referenced in our previous blog, Demystifying the International Trade Commission (ITC), Apple made headlines in December 2023 for halting the sale of its latest Apple Watch Series 9 and Ultra 2 models in the US on December 21st. The reason behind this was a patent dispute between Apple and Masimo Corp. related to a blood oxygen sensor in which the ITC ruled Apple violated Masimo’s patents. While this came to media attention in late 2023, this case had been working its way through the court system for years, starting when Masimo won a patent infringement case against True Wearable in 2022. True Wearables’ founder and CEO Marcelo Lamego worked at both Masimo and Apple where he developed similar technologies before founding True Wearables. True Wearables’ founder first worked at Masimo and then contacted Apple CEO Tim Cook in 2013, offering to help with the Apple Watch. He subsequently joined Apple in 2014. At Apple Mr. Lamego was a named inventor on several health-related Apple patents before leaving to start True Wearables in 2014, after only a few months at Apple.  So Masimo found itself in a situation where both companies, True Wearables and Apple, were allegedly infringing its patents, which led to it taking legal action against both companies

In conjunction with the patent dispute against True Wearables which resulted in a permanent injunction against the sale of True Wearables infringing devices, Masimo also filed a Section 337 action at the ITC against Apple alleging that the company was importing into the US devices that infringed multiple patents held by Masimo. In Section 337 actions, the complainant must establish that a domestic industry for articles protected by the asserted patent(s) exists or is in the process of being established.  There are two requirements that must be met in regards to the ITC domestic industry analysis: an economic element and a technical element. The complainant  (Masimo) must show that one of the economic activities identified in 19 U.S.C § 1337(a)(3) has occurred to fulfill the economic requirement. These activities include: significant investment in plant and equipment, significant employment of labor or capital, or substantial investment in exploitation, including engineering, R&D or licensing. In regards to the technical element, the complainant must establish that it practices at least one claim in each asserted patent. One of the main arguments made by Apple was whether Masimo’s W1 smartwatch, or any product by Masimo, was actually released prior to the complaint being filed by Masimo. This is an area of active development and will likely feature prominently in the appeal by Apple which was filed on December 23, 2023.

In January of 2023, the ITC issued their Final Initial Determination that Apple was infringing on Masimo’s patents. The ITC then issued a limited exclusion order and cease and desist order against Apple in late October of 2023. Once this decision was made, the next step was a 60-day presidential review period where Apple hoped that President Biden would veto the ban as President Obama had done for Apple in 2013 in regards to the iPhone and iPad. However, as the 60-day review period approached its conclusion and there was no indication that President Biden would issue such a veto, Apple pulled the Watch Series 9 and Watch Ultra 2 from its stores and President Biden eventually declined to veto the ruling of the FTC. As a last resort, Apple filed an appeal with the United States Court of Appeals for the Federal Circuit (CAFC) and secured a temporary stay of the ITC’s importation and sales ban. On December 27, the Federal Circuit granted Apple’s request for an emergency stay.  This temporary could be extended through the conclusion of the ITC appeal which could take about 18 months.

The outcome of this appeal and any further actions are important to Apple as affected watch models have been some of its best sellers, accounting for a substantial portion of the company’s overall watch sales. Although Apple hasn’t publicly disclosed revenue figures, analysts estimate that the Apple Watch alone generated approximately $17 billion in sales in fiscal 2023. Moreover, the removal of the affected watches from Apple’s online store and physical retail locations only adds another layer of complexity to the situation, as the watches will still be available through third-party retailers. Apple is working across multiple venues to overcome the decision by the ITC. As referenced above, Apple filed the appeal and won a temporary stay and will push the CAFC to find in its favor and reverse the decision of the ITC. At the same time, Apple has submitted plans to the US Customs and Border Protection for a software solution. One other possibility in this complex dispute is for Apple to pay Masimo to end the dispute and put an end to the business disruption caused by this ongoing patent dispute.

The key takeaway from the events surrounding the Masimo patents is that the ITC is an important venue for patent enforcement in the U.S., where the range of remedies may actually include a physical importation and sales ban, particularly when it comes to products where the supply chain dictates importation of products manufactured overseas.  Stay tuned for more updates on this blog as the CAFC and ITC appeal proceedings continue in 2024.

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