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IT‐CAN
                        FRASER MILNER CASGRAIN LLP
                             OCTOBER 6, 2010




           IP ISSUES AND SOCIAL MEDIA:
             LOOK BEFORE YOU TWEET

Presented by:
Rob McDonald
Partner, Co-chair FMC
National IP Group



                                                     1
TOP TEN TWITTER BRANDS
(Sample during a three day period in April 2009)


1.     Starbucks 3.37 millions mentions
2.     Google, 1.01 million mentions
3.     BBC, 703,000 mentions
4.     Apple, 512,000 mentions
5.     AIG, 455,000 mentions
6.     Amazon, 245,000 mentions
7.     Microsoft, 221,000 mentions
8.     The Guardian, 211,000 mentions
9.     Dell, 185,000 mentions
10.    Coca Cola, 135,000 mentions

Note:    ‐    Dell generated 1 million dollars by alerting Twitter followers to sale items over the Christmas break.
          ‐   Many businesses offer exclusive discounts to Twitter followers
          ‐   Recent studies suggest only 2% of all companies use Twitter and that only 7 of the top 100 brands names are 
              registered as a Twitter I.D.



                                                                                                                             2
TOP TEN TWITTER ACCOUNTS
                     Followers

1. Lady Gaga         6,634,198
2. Britney Spears    6,088,710
3. Ashton Kucher     5,890,321
4. Justin Bieber     5,591,962
5. Barack Obama      5,586,315
6. Ellen DeGeneres   5,316,411
7. Kim Kardashian    5,002,066
8. Oprah Winfrey     4,362,629
9. Taylor Swift      4,358,652
10.Katy Perry        4,148,441

                                 3
TWITTER SQUATTING 
                       (User Name Squatting)
• Like domain name cyber‐squatting was in the 1990’s, appropriation of 
  proprietary user names on social networking sites is problematic;

• User name registration is free;

• Multiple registrations are possible;

• User name for sale accounts are prohibited;

• CNN/James Cox example;

• Social networking sites have internal IP and trade‐mark policies, but no 
  user name equivalent of the Uniform Domain Name Dispute Resolution 
  Policy (UDRP) exists;


                                                                              4
• User name squatting is prohibited by the Twitter Rules.

• “Please note that if an account has had no updates, no profile 
  image, and there is no intent to mislead, it typically means 
  there is no name‐squatting or impersonation.  Note that we 
  will not release inactive or squatted user names except in 
  cases of trade‐mark infringement.”

• “Attempts to sell, buy or solicit other forms of payment in 
  exchange for user names are also violations and may result in 
  permanent account suspension”.


                                                                    5
• “Name  squatting  and  “user  name  for  sale” accounts  will  be 
  permanently  suspended.    Attempts  to  sell  or  extort  other 
  forms  of  payment  in  exchange  for  user  names  will  result  in 
  account suspension.  Accounts that are inactive for more than 
  six months may be revoked without further notice.”




                                                                      6
TWITTER TRADE‐MARK POLICY

• “Using a company or business name, logo or other trade‐mark 
  protected materials in a manner that may mislead or confuse 
  others or be used for financial gain, may be considered trade‐
  mark  infringement.    Accounts  with  clear  INTENT  to  mislead 
  others  will  be  immediately  suspended;  even  if  there  is  no 
  trade‐mark  infringement,  attempts  to  mislead  others  are 
  tantamount to business impersonation.”




                                                                    7
TWITTER IMPERSONATION POLICY

• “Impersonation is pretending to be another person or entity in 
  order to deceive.  Impersonation is a violation of the Twitter 
  Rules and may result in permanent account suspension.”

• “Twitter users are allowed to create parody, commentary or 
  fan accounts.  Accounts with the clear intent to confuse or 
  mislead may be permanently suspended.”




                                                                    8
TWITTER CRITERIA
Twitter will consider the following factors in determining 
   whether name squatting has occurred:

1) The number of accounts created;
2) Creating accounts for the purpose of preventing others from 
   using those account names;
3) Creating accounts for the purpose of selling those accounts;
4) Using feeds of third party content to update and maintain 
   accounts under the names of those third parties.



                                                                  9
HOW TO PROTECT YOUR TRADE‐MARK
• Register corporate names, trade names, trade‐marks and 
  brand names with each social networking site;

• Register permutations and combinations of trade‐marks as 
  user names;

• Review the terms of use of every site and understand rights 
  and obligations;

• Ensure compliance with terms of use by employees and 
  licensees;

                                                                 10
• Develop and implement internal policies regarding use and ownership of 
  user names by employees and key personnel;

• Monitor social networking sites to determine if the trade‐marks are being 
  used inappropriately;

• Report infringements and improper uses, including “user name squatting”
  to social networking sites;

• Restrict employee use of social networking sites to prevent disclosure of 
  confidential or sensitive corporate information, dilution of brand, and 
  potential defamation and depreciation of goodwill claims;


                                                                               11
COPYRIGHT VIOLATIONS ON SOCIAL 
            NETWORKING SITES
• Unauthorized reproduction of copyright work on a social 
  networking site is copyright infringement unless it falls under 
  specific exception or if a substantial reproduction has not been
  made;

• The party posting the copyright work is liable for infringement;

• The social networking site may be liable for infringement if 
  they “authorized” the infringement;


                                                                     12
• Most sites have “notice and take down” provisions to limit 
  liability as a service provider;

• Implement internal policies and employment agreements to 
  prohibit posting of third party copyright material and to define
  ownership of content;

• Ownership of user‐
• created content is a significant issue.



                                                                     13
QUESTIONS?
Rob McDonald
780 423 7305
Rob.McDonald@fmc-law.com
LinkedIn
The preceding presentation contains examples of the kinds of 
issues companies looking to increase their activity in social 
media could face. If you are faced with one of these issues, 
please retain professional assistance as each situation is 
unique.

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IP Issues & Social Media - Look Before You Tweet

  • 1. IT‐CAN FRASER MILNER CASGRAIN LLP OCTOBER 6, 2010 IP ISSUES AND SOCIAL MEDIA: LOOK BEFORE YOU TWEET Presented by: Rob McDonald Partner, Co-chair FMC National IP Group 1
  • 2. TOP TEN TWITTER BRANDS (Sample during a three day period in April 2009) 1. Starbucks 3.37 millions mentions 2. Google, 1.01 million mentions 3. BBC, 703,000 mentions 4. Apple, 512,000 mentions 5. AIG, 455,000 mentions 6. Amazon, 245,000 mentions 7. Microsoft, 221,000 mentions 8. The Guardian, 211,000 mentions 9. Dell, 185,000 mentions 10. Coca Cola, 135,000 mentions Note: ‐ Dell generated 1 million dollars by alerting Twitter followers to sale items over the Christmas break. ‐ Many businesses offer exclusive discounts to Twitter followers ‐ Recent studies suggest only 2% of all companies use Twitter and that only 7 of the top 100 brands names are  registered as a Twitter I.D. 2
  • 3. TOP TEN TWITTER ACCOUNTS Followers 1. Lady Gaga 6,634,198 2. Britney Spears 6,088,710 3. Ashton Kucher 5,890,321 4. Justin Bieber 5,591,962 5. Barack Obama 5,586,315 6. Ellen DeGeneres 5,316,411 7. Kim Kardashian 5,002,066 8. Oprah Winfrey 4,362,629 9. Taylor Swift 4,358,652 10.Katy Perry 4,148,441 3
  • 4. TWITTER SQUATTING  (User Name Squatting) • Like domain name cyber‐squatting was in the 1990’s, appropriation of  proprietary user names on social networking sites is problematic; • User name registration is free; • Multiple registrations are possible; • User name for sale accounts are prohibited; • CNN/James Cox example; • Social networking sites have internal IP and trade‐mark policies, but no  user name equivalent of the Uniform Domain Name Dispute Resolution  Policy (UDRP) exists; 4
  • 5. • User name squatting is prohibited by the Twitter Rules. • “Please note that if an account has had no updates, no profile  image, and there is no intent to mislead, it typically means  there is no name‐squatting or impersonation.  Note that we  will not release inactive or squatted user names except in  cases of trade‐mark infringement.” • “Attempts to sell, buy or solicit other forms of payment in  exchange for user names are also violations and may result in  permanent account suspension”. 5
  • 6. • “Name  squatting  and  “user  name  for  sale” accounts  will  be  permanently  suspended.    Attempts  to  sell  or  extort  other  forms  of  payment  in  exchange  for  user  names  will  result  in  account suspension.  Accounts that are inactive for more than  six months may be revoked without further notice.” 6
  • 7. TWITTER TRADE‐MARK POLICY • “Using a company or business name, logo or other trade‐mark  protected materials in a manner that may mislead or confuse  others or be used for financial gain, may be considered trade‐ mark  infringement.    Accounts  with  clear  INTENT  to  mislead  others  will  be  immediately  suspended;  even  if  there  is  no  trade‐mark  infringement,  attempts  to  mislead  others  are  tantamount to business impersonation.” 7
  • 8. TWITTER IMPERSONATION POLICY • “Impersonation is pretending to be another person or entity in  order to deceive.  Impersonation is a violation of the Twitter  Rules and may result in permanent account suspension.” • “Twitter users are allowed to create parody, commentary or  fan accounts.  Accounts with the clear intent to confuse or  mislead may be permanently suspended.” 8
  • 9. TWITTER CRITERIA Twitter will consider the following factors in determining  whether name squatting has occurred: 1) The number of accounts created; 2) Creating accounts for the purpose of preventing others from  using those account names; 3) Creating accounts for the purpose of selling those accounts; 4) Using feeds of third party content to update and maintain  accounts under the names of those third parties. 9
  • 10. HOW TO PROTECT YOUR TRADE‐MARK • Register corporate names, trade names, trade‐marks and  brand names with each social networking site; • Register permutations and combinations of trade‐marks as  user names; • Review the terms of use of every site and understand rights  and obligations; • Ensure compliance with terms of use by employees and  licensees; 10
  • 11. • Develop and implement internal policies regarding use and ownership of  user names by employees and key personnel; • Monitor social networking sites to determine if the trade‐marks are being  used inappropriately; • Report infringements and improper uses, including “user name squatting” to social networking sites; • Restrict employee use of social networking sites to prevent disclosure of  confidential or sensitive corporate information, dilution of brand, and  potential defamation and depreciation of goodwill claims; 11
  • 12. COPYRIGHT VIOLATIONS ON SOCIAL  NETWORKING SITES • Unauthorized reproduction of copyright work on a social  networking site is copyright infringement unless it falls under  specific exception or if a substantial reproduction has not been made; • The party posting the copyright work is liable for infringement; • The social networking site may be liable for infringement if  they “authorized” the infringement; 12
  • 13. • Most sites have “notice and take down” provisions to limit  liability as a service provider; • Implement internal policies and employment agreements to  prohibit posting of third party copyright material and to define ownership of content; • Ownership of user‐ • created content is a significant issue. 13
  • 14. QUESTIONS? Rob McDonald 780 423 7305 Rob.McDonald@fmc-law.com LinkedIn