Intellectual Property Law Commons^™

Shareholder Expression In A Time Of Heightened Political Tension, Aaron A. Dhir

Seattle University Law Review

In this article, I provide context for my forthcoming research project on shareholder proposals and racial equity audits. Since the murder of George Floyd in May of 2020, progressive shareholder actors have increasingly used the proposal mechanism to advance diversity, equity, inclusion, and justice-related goals. These proposals have frequently gone beyond requesting the usual corporate fare of diversity trainings, intersectionality workshops, affinity groups, etc. Instead, a more ambitious type of proposal asks corporate America to conduct racial equity audits, defined as “an independent, objective and holistic analysis of a company’s policies, practices, products, services and efforts to combat systemic racism …

Corporate Governance Speech, Sarah C. Haan

Seattle University Law Review

The State has always regulated the intra-firm communications that make corporate governance possible, most commonly by mandating disclosures of information by a corporation to its shareholders. Some such laws are labeled “securities regulation,” but securities regulation is a broad category that extends to speech by actors who are outside the corporate enterprise as well. Also, the conventional securities regulation category does not capture all such laws; other examples, including informationforcing mandates, can be found in state corporate law. This Article uses the term “corporate governance speech” to describe the communications among shareholders, directors, and officers through which corporate governance is …

Dark Accounting Matter, Colleen Honigsberg

Seattle University Law Review

Physicists calculate that approximately 85% of the matter in the universe is composed of “dark matter” that “does not absorb, reflect, or emit electromagnetic radiation and is therefore difficult to detect.” The S&P 500 currently trades at a price-to-book value of 4.2, suggesting that book value accounts for less than 20% of the S&P 500’s market value. The remaining 80% appears nowhere in these firms’ balance sheets—it is invisible to contemporary accounting techniques and constitutes “dark accounting matter.”

Some “dark accounting matter” is composed of factors commonly described as components of “ESG.” Human capital, for example, is an intangible asset …

The Employees’ Dilemma: Balancing Internal Reporting, Whistleblowing, And Insider Trading Risks, Geeyoung Min

Seattle University Law Review

The Essay examines how recent developments in insider trading regulations and whistleblower reward programs can lead to unintended and counterproductive results of discouraging employees from using internal reporting channels within corporate compliance programs. While the presence of a robust and well-functioning corporate compliance program is a critical factor both in mitigating the level of public enforcement actions against companies and in protecting corporate managers from liability in private litigation, these programs often provide little incentive for employees to report potential misconduct internally.

Corporate compliance programs are designed to promote the upward information flow within the company, which is essential for …

How The Antidiscrimination Law Of Commercial Transactions Really Works, Helen Norton

Seattle University Law Review

A variety of businesses now cite 303 Creative when seeking First Amendment protection for their refusal to serve certain customers based on those customers’ protected class status. How this litigation will play out remains to be seen. But future courts need not, and should not, repeat the 303 Creative Court’s misunderstanding of how the antidiscrimination law of commercial transactions actually works.

Part I of this Essay explains the Court’s longstanding understanding of the antidiscrimination law of commercial transactions, and then describes the Court’s failure to engage with this precedent in 303 Creative. Part II then identifies the 303 Creative decision’s …

Volume 48 Masthead, Seattle University Law Review

Seattle University Law Review

Volume 48 Masthead

Voting Matters: Materiality Considerations And The Shareholder Vote, Renee M. Jones

Seattle University Law Review

For the shareholder franchise to have meaning, shareholders must have access to relevant information to inform their voting decisions. The securities laws’ disclosure requirements play an essential role in informing the shareholder vote.

This Essay focuses on the question of the materiality of information in the context of shareholder voting. It addresses the question of whether ESG-related information is material, positioning the materiality inquiry within the context of shareholders’ voting decisions. It explores the definition of materiality with a focus on the “reasonable investor” concept embedded within the definition. The Essay argues that the implicit expectations of many commentators that …

Volume 48 Masthead, Seattle University Law Review

Seattle University Law Review

Volume 48 Masthead

Understanding The Big Three’S Wavering Support Of Environmental And Social Shareholder Proposals, Jeff Schwartz, Jefferson Jensen

Seattle University Law Review

Because of their substantial equity portfolios, BlackRock, Vanguard, and State Street (the Big 3) are central players in corporate governance. It is, therefore, critical to understand how they vote. One puzzle is that their support for shareholder proposals on environmental and social matters appears to waiver. In 2020, for instance, BlackRock supported 11.1% of environmental proposals at S&P 500 firms. In 2021, it seemingly reversed course, supporting 55.2%. It then flipped again, supporting 32.1% in 2022. Such statistics suggest that the Big 3 are constantly changing their views on these topics. This Article seeks to better understand whether this is …

Volume 48 Masthead, Seattle University Law Review

Seattle University Law Review

Volume 48 Masthead

Green Dividends: A Case Study In Green Dividends And The Conditions For Private Ordering Solutions, Anne M. Tucker

Seattle University Law Review

This Essay introduces a novel private ordering solution to facilitate corporate investments in pro-social and environmental initiatives: Green dividends. Green dividends are an optional increase in shareholder dividends that are returned to the company to be reinvested in environmental initiatives or kept by a shareholder.

Green dividends pose an alternative to the current gridlocked debate that corporations can’t, won’t, shouldn’t, and shouldn’t even try to act in pro-social or environmental ways. Turning the common refrains on their head converts each narrative into an element for a successful private ordering solution: authority, accountability, shareholder buy-in, and government- backed enforcement. With Green …

Does Climate Disclosure Work To Reduce Greenhouse Gas Emissions? Emerging Evidence Suggests Cautious Optimism, Cynthia A. Williams

Seattle University Law Review

Significant regulatory resources have been spent developing global, voluntary climate and sustainability disclosure standards, such as the TCFD, TNRD, and ISSB’s Sustainability and Climate Disclosure standards, or domestically required disclosures, such as in the EU and in the U.S. Thus, it is important to evaluate whether this disclosure, particularly voluntary, qualitative disclosure, will have the power to shift the allocation of capital, will have a significant effect on the management of climate risk within firms, and ultimately will reduce climate change risk and biodiversity loss.

In this Article, several interrelated questions will be discussed. First, what does the empirical evidence …

“It Doesn’T Matter What Your Name Is:” The Case Against Corporate Ownership Of Persona Rights In Modern Professional Wrestling, Calvin Holle

Marquette Sports Law Review

No abstract provided.

A Personal Interview With William Patry: His Thoughts On Music, Ai, And Copyright

IP Theory

No abstract provided.

Can Miley Cyrus Really Buy Her Own Flowers: An Analysis Of Answer Songs In Relation To Fair Use, Emmeline Eike

Marquette Intellectual Property & Innovation Law Review

September 16, 2024, Tempo Music Investments LLC filed a copyright infringement complaint against Miley Cyrus. The complaint is due to the striking similarities between Cyrus’s song, Flowers, and Bruno Mars’s song When I Was Your Man. Tempo Music attributes Cyrus’ success with Flowers in 2023 to When I Was Your Man’s existence and not purely from the song itself.  In discussing this lawsuit, this comment explores how likely a fair use claim is to succeed, while also analyzing how the parody fair use defense is currently applied to songwriting. Additionally, it also discussed parodies vs. answer/response songs, specifically what the …

Artificial Intelligence And Music Mash-Ups: Monetizing An Opt-In Closed Universe Database To Preserve Royalties And Credit For Composer And Sound Recording Rights Holders, Michael M. Epstein

Marquette Law Review

This Article charts the development of an opt-in database of music publishing and sound recording catalogues that would allow music industry stakeholders to profit from those who use artificial intelligence to generate new creative content from existing intellectual property. The database would be a portal to content that rights holders would consent to include in a library made available to the public. The database could be advertiser-supported, allowing for no-cost access by the public, or users could pay for a blanket license or per- search fee. Proceeds from the database would be distributed to rights holders based on the content …

The Case For A New International Instrument On Copyright Limitations And Exceptions, Faith O. Majekolagbe

Cardozo Arts & Entertainment Law Journal

A new international instrument on copyright limitations and exceptions (L&Es) is pertinent to fostering education and research and enhancing the work of educational, research, and cultural institutions, including libraries, archives, and museums. The existing international instrument on L&Es, the Marrakesh Treaty, sits alone amongst many international copyright instruments for the protection of rightsholders, the Marrakesh Treaty only covering exceptions for print-disabled persons. There is currently no international obligation on countries to guarantee the interests of copyright users in education and research through a set of copyright limitations and exceptions. This has signficant negative effects on access to education and research …

Empowering Digital Consent: A Risk-Focused Due Diligence Tool, Bar Fargon Mizrahi

Cardozo Arts & Entertainment Law Journal

We live in an era of almost infinite digital interactions, many of which involve risks to our rights stemming from various problematic practices, such as data-protection infringements, user profiling, and consumer protection violations. Currently, the protection of digital consumers against these risks rests primarily on a "notice-and-consent" regulatory model-users are legally presumed to have consented to the terms of service (ToS) and privacy policy agreements (PPAs) of the digital services they use. In reality, despite the gravity of the risks involved, users routinely fail to study these binding agreements. Thus, it is widely accepted that this model is ineffective at …

Language Models' Verbatim Copying: Copyright Infringement Analysis Through The Lens Of The New York Times Co. V. Microsoft Corp., Openai, Inc. Et Al., Tian "Tony" Chen

Cardozo Arts & Entertainment Law Journal

In their high-profile suit in late 2023, The New York Times Company ("The Times") alleged that OpenAI's Generative Pre-trained Transformer (GPT) language models might output "near-verbatim" copies ("memorizations") of the works of The Times based on certain user prompts and thus might have infringed on The Times's exclusive rights over its content. One of the central issues is whether the embodiment of unauthorized reproductions of Times content in the GPT models constitutes a copyright infringement. This comment argues that OpenAI might have a colorable fair use affirmative defense despite the plaintiff's prima facie copyright infringement claim.

Existing literature on the …

Harmonizing Copyright: Navigating Pop Music's Creative Landscape In The Era Of Arnstein And Krofft, Evan Joseph

Cardozo Arts & Entertainment Law Journal

This Note explores how the Arnstein and Krofft tests negatively impact pop music in an age where pop music is constantly evolving. It discusses the specific ways in which the tests can discourage creativity, innovation, and fair competition in the pop music industry. It also argues for reform of copyright law to address the shortcomings of the Arnstein and Krofft tests. Part I defines and provides a brief overview of the history of pop music and copyright infringement, while also discussing the importance and economic value of pop music in society. This Part also explains the gravity behind these claims, …

Al Assisted Inventing And Its Impact On The Patent System, Ben Gross

Cardozo Arts & Entertainment Law Journal

The note examines the challenges posed by AI-assisted inventing to the patent system, particularly focusing on the "black box" nature of AI, which obscures the inventive process and complicates patent requirements such as inventorship and disclosure.

Spotify's Dj Algo: An Analysis Of Copyright Infringement Risks In A.I.- Powered Music Curation, Eddie Halwani

Cardozo Arts & Entertainment Law Journal

The note examines the legal and policy implications of Spotify's AI-powered music curation, arguing that while its use of copyrighted material may constitute copyright infringement, it qualifies as fair use under the transformative and non-expressive purposes doctrine. However, the analysis highlights the need for economic reforms to ensure equitable compensation for rights holders and sustainable innovation.

Artificial Intelligence And Its Exploitation By The Fashion Industry, Stephanie Solis-Kepes

Cardozo International & Comparative Law Review

The note explores the transformative impact of artificial intelligence (AI) on the fashion industry, highlighting its potential to enhance efficiency, innovation, and customer experience. However, it underscores the critical legal and ethical challenges, including data privacy, intellectual property rights, supply chain transparency, and diversity issues, that must be addressed to ensure responsible and equitable adoption of AI technologies.

Belgium’S Implementation Of The Eu Copyright Directive: An Investigation Of The State Of Equitable Remuneration, Soraya Mazarei

Cardozo International & Comparative Law Review

As streaming becomes the dominant means of music consumption around the globe, songwriters have lost out to music publishers in the contracting process. Ultimately, songwriters are making less money than they used to. Some countries have opted to address this growing problem. Various European countries, including Belgium, have made great strides towards levelling the playing field, to the benefit of songwriters. The subject of equitable remuneration (ER) in the music industry is one that garners ever-more attention, particularly as streaming giants like Spotify win an ever-larger proportion of the music market. Thus far, ER regimes have focused largely on featured …

How Do You Solve A Problem Like Artistic Freedom In The American Theatre?: A Plea For Denying Copyright Protection To Staging Requirements, Michael Ecker

Cardozo Arts & Entertainment Law Journal

The note argues that extending copyright protection to theatrical stage directions would severely threaten the collaborative nature of American theater, stifling creativity and inclusivity. It contends that stage directions, as a unique aspect of dramatic works, should not be eligible for copyright protection under the Copyright Act of 1976, particularly due to the merger doctrine, which denies protection when ideas and their expression are inseparable. The note emphasizes the importance of preserving theater as a collaborative and interpretive art form, where the interplay between playwrights, directors, and performers is essential to its vitality.

Closed Doors To Justice: How The Copyright Claims Board Is Shutting Out Pro Se Litigants, Melissa Eckhause

Cardozo Arts & Entertainment Law Journal

The Copyright Claims Board (CCB), established under the Copyright Alternative in Small-Claims Enforcement Act of 2020, was intended to provide an accessible forum for resolving small-value copyright disputes, particularly for pro se parties. However, the CCB has failed to fulfill this promise, with nearly 90% of pro se claims being dismissed without resolution on the merits. The CCB's strict compliance requirements and failure to liberally construe pro se claims have created a system more burdensome than federal court, contrary to Congress' intent. The article proposes reforms to align the CCB's practices with its original purpose of accessibility and simplicity for …

Flexing The Celebrity Muscle: Celebrity Leverage In Trademark Law And Why Small Businesses Deserve Equitable Treatment, Victoria M. Lopez

Cardozo Arts & Entertainment Law Journal

The note examines the imbalance in trademark law disputes between celebrities and small businesses, arguing that celebrities often leverage their fame and resources to gain an unfair advantage. It highlights how this dynamic can overshadow the rights of small businesses, even when they have prior use of a trademark, as seen in the case of Beauty Concepts vs. Kim Kardashian. The analysis advocates for a more equitable approach to trademark law to protect small businesses from being disadvantaged by celebrity influence.

Can Commercials Be Art? An Analysis Of Intellectual Property Preawareness In The Barbie Era, Shreya Kalidindi

Cardozo Arts & Entertainment Law Journal

The note examines the evolution of advertising, particularly native advertising, and critiques the inadequacy of current regulatory frameworks in addressing its deceptive potential. It highlights how modern advertising practices, such as product placement in films like Barbie, blur the line between commercial speech and artistic expression, challenging the Federal Trade Commission’s (FTC) ability to protect consumers. The analysis argues that strengthening existing regulations is insufficient and advocates for empowering consumers to make informed decisions, as the legal system struggles to keep pace with innovative advertising strategies.

"Be Thankful I Don't Take It All ('Cause I'M The Taxman)": Music Transactions, Catalog Sales, And Tax Treatment, Hannah M. Bartfield

Cardozo Arts & Entertainment Law Journal

This Note examines music catalog transactions from a tax perspective to determine the key considerations, benefits, and consequences of such a transaction, and then addresses why these characteristics are inconsistent with the purpose of copyright law. First, this Note addresses the copyright concepts that govern the music industry in Part I.B. In Part II, royalties are discussed as one method that musicians can rely on to earn revenue from their music, including a summary of how those earnings are taxed. In Part III, these findings will be weighed against similar considerations for the sale of an artist's music catalog, including …

Re-Recording The Record: The Case For A Stronger Moral Right Of Integrity In The United States, Alexandria Touron

Fordham Law Review

In the United States, musical artists have limited legal recourse over transferring ownership of their music to third parties, even when such transfers may harm the artist’s reputation or the integrity of the work. Even the most prominent musicians, like Taylor Swift, must operate within an industry structure that normalizes the transfer of rights and, thus, control of their creative works. This occurs because U.S. law ties artists’ rights almost exclusively to economic ownership of their work unless they specifically bargain to keep their moral rights. However, most other countries have comprehensive moral rights frameworks where all artists can protect …