David Canton is a business lawyer and trade-mark agent with a practice focusing on technology issues and technology companies.



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August 31, 2006

blogs, web sites, wikis, and defamation

Tags: , , , — David Canton @ 8:10 am

ITBusiness.ca has an article about the responsiblity of Canadian hosts of web sites, blogs, and wikis for defamatory content that others post.

The hosts can be held liable. Hosts don’t have to monitor their sites to feret out potentially libelous material. But if someone complains that their site contains something defamatory about them, the safest approach is to remove it immediately.

The policy problem is that the allegation may or may not be true – but for most hosts, its not worth the fight.

Read the ITBusiness.ca article

Read a recent post of mine on the topic referring to a Toronto Star article by Michael Geist

August 30, 2006

Zefrank on branding

Tags: , , — David Canton @ 8:10 am

Zefrank’s comment yesterday was a great explanation of what branding is all about. He refers to branding as a “shared emotional aftertaste”, and uses the concept to explain the recent over-reported “confession” in the Jonbenet case.

When we obtain trade-marks for clients, we are essentially offering legal protection for their brands. I’ve made the point before that good trade-marks are made, not born. In other words, one has to find a way to create that meaning, or shared emotional aftertaste.

His video is well worth watching. Just a cautionary note if you have never seen a Zefrank video. He’s a bit off the wall, and this contains some language that some may find not work friendly – but he has a unique way of putting things in perspective.

Watch Zefranks’ video

August 29, 2006

Microsoft’s DRM cracked

Tags: , , , , — David Canton @ 8:20 am

The tech blogosphere was full of articles yesterday about a tool that will break the Windows media DRM, thus allowing users to do whatever they want with those music and other files.

To me the story is not so much about this particular tool, but another indication that DRM and TPM in the grand scheme of things is not that effective. It certainly doesn’t stop anyone illegally duplicating and selling content on a large scale. And it just makes life difficult for the average user who gets frustrated that the content they buy won’t work on some of their devices.

Read a Wired post

Read a Techdirt post

Read a Lifehacker post

Read a Gizmodo post

August 28, 2006

Name game important

Tags: , , — David Canton @ 7:26 am

David Canton – For the London Free Press – August 26, 2006

Read this on Canoe

The usual name searches done when incorporating a company often are not enough, even if they do meet legal requirements.

When incorporating a new Ontario or Canadian corporation, one must provide a name report to the government along with the draft articles of incorporation. That report is a search of existing corporate names, registered trade names and registered trade-marks.

That search is sufficient from a legal perspective, but may fall short for business reasons, depending on the nature of the corporation’s intended business.

If the corporation will sell products or services, it should have a website. The most logical domain name for a website is the corporate name. Searches should be performed to see if those names are available for various top-level domain extensions, including .ca and .com.

Such a search will ensure your preferred name is available as a domain name. Alternately, if the name is taken and an alternate domain name is acceptable, one should be certain the domain name already in use would not be problematic. That might be the case if the site is one with which you would not want your business associated or if it belongs to a competitor.

If the business intends to sell its products or services outside of Canada, it may want to do at least some cursory trade-mark searches in other countries to see if the proposed name has been used by others for similar products or services.

When choosing a corporate name, put that name in quotes and perform a Google search.

That will tell you how common the term is. Sometimes, the less common the term, the more memorable the name will be.

Having a name customers can easily recall is always good.

If there are thousands of hits, which is common, view the entries on the first few pages to see if there are any obvious conflicting uses.

A domain name can be a necessity for a business. A domain name the same as one’s corporate name can be useful international advertising. It may be the first place potential customers go to find information about a business. Businesses also give a better impression if their e-mail addresses use their name. For example, dcanton@ harrisonpensa.com seems more professional than dcanton@hotmail.com.

Even if there are no immediate plans to have a website, domain names should be obtained immediately before someone else scoops them.

Far better to find out at the outset and go through a few proposed names than to incorporate and find out later you have to compromise on your domain name or change your name.

August 25, 2006

DRM free music downloads

Tags: , , — David Canton @ 8:31 am

Want to buy downloaded music without that pesky DRM that restricts what you can do with it?

CNet has a list of some DRM free music stores.

Look at CNet’s list

August 24, 2006

CV 2.0

Tags: — David Canton @ 10:31 am

You may have noticed that we have been tinkering with the appearance of the blog lately.

Take a look at the Web 2.0 version of my CV that is at the “David’s profile 2.0″ link on the left column. It’s our interpretation of what a curriculum vitae would look like in the web 2.0 world.

BusinessWeek on Dell

Tags: , , , — David Canton @ 8:22 am

BusinessWeek has an article entitled Dark Days at Dell that takes an interesting look at Dell and its current problems. Its worth a read to understand the Dell issues, and for its insight into the need to continue to innovate.

In essence, the article says that Dell’s revolutionary business model has lost its edge, and Dell has failed to adapt or innovate.

From the article:

Dell remained slavishly loyal to its core idea of ultra-efficient supply-chain management and direct sales to consumers, even as rivals have stepped up their game and markets have shifted to take away some of Dell’s key advantages. Instead of adapting, critics say, Dell cut costs in ways that compromised customer service and, possibly, product quality.

They’re a one-trick pony. It was a great trick for over 10 years, but the rest of us have figured it out and Dell hasn’t plowed any of its profits into creating a new trick

Read the BusinessWeek article

August 23, 2006

FTC to look at Net Neutrality

Tags: , , — David Canton @ 8:23 am

Tech memeorandum points to a Federal Trade Commission news release that says the FTC has formed an Internet task force to: “examine issues being raised by converging technologies and regulatory developments, and to educate and inform the enforcement, advocacy and education initiatives of the Commission.” and “to address what is likely the most hotly debated issue in communications, so-called ‘network neutrality”

The FTC favours market forces instead of regulation, which in general is a good idea. The question is whether market forces can actually achieve network neutrality – I’m skeptical.

I’m convinced network neutrality , ie ISP’s not discriminating against traffic from others, especially competitors, is crucial.

Read the Tech memeorandum post

Read the FTC news release

August 22, 2006

Copyright reform and DRM

Tags: , , , , — David Canton @ 7:19 am

Michael Geist has started a series called 30 days of DRM that will discuss issues related to digital rights management in the context of the expected Canadian copyright reform bill.

I’m not a fan of DRM, or legal support for it.

I encourage anyone interested in the topic to follow Michael’s series.

30 days of DRM page

August 21, 2006

Unauthorized use of personality to sell may be costly

Tags: , , , , — David Canton @ 7:55 am

David Canton – for the London Free Press – Auguat 19, 2006

Read this on Canoe

The unauthorized use of a celebrity’s name, voice or image has become a major financial risk in the U.S. While Canadian courts are not known for awarding lucrative sums, we should seek the permission of a celebrity before using their “personality” for any commercial benefit.

The recent announcement Olympic gold medalist Ross Rebagliati is planning to sue the producers of the Whistler TV show, claiming it includes a character misappropriating his personality, may put this to the test.

The Missouri Court of Appeals upheld a $15 million jury verdict for former NHL tough-guy Tony Twist against the creator of the comic series Spawn for using Twist’s name for a violent mob boss character.

Twist sued Todd McFarlane on the basis the depiction of a villain using his name harmed his ability as a potential product endorser and broadcast personality when his playing career concluded.

Given that Twist’s only claim to fame was logging 1,121 penalty minutes in 382 NHL games, there’s room to argue the jury award was inflated. However, the American common law “right of publicity” grants an individual the right to protection against the unauthorized use of his or her name or likeness for profit.

The comparable law in Canada is the tort of “appropriation of personality.” While the law is not nearly as developed, cases have imposed a remedy against those who have used an individual’s name, likeness, voice or personality without consent.

A 1974 Canadian case –Krouse v. Chrysler Canada Inc. — involved a suit by a Hamilton Tiger-Cats football player against the car company for the use of his image. The Ontario Court of Appeal dismissed the action, ruling the plaintiff was not the primary feature of the photograph, with only his backside and jersey number visible.

In 1996, an Ontario trial court in Gould Estate v. Stoddart Publishing Co. confirmed in the absence of consent, the use of a celebrity’s personality for commercial benefit is forbidden. The court confirmed the use of an individual’s name or likeness for comment, news dissemination, educational purposes (such as a biography) or a parody is permitted. In short, Canadian courts have restricted the protection of one’s personality to endorsement situations.

In the Twist case, McFarlane brought a team of Hollywood fans who urged the court to yield to artistic expression; however, the Missouri appeals panel believed the “predominant purpose of the use of the name ‘Tony Twist’ was to sell comic books and related products and not to make an expressive comment about Twist the hockey player.” McFarlane’s lawyer has asserted his client intends to appeal on First Amendment grounds.

For a finding of appropriation of personality in Canada, three elements must be satisfied. The individual must be recognizable. The exploitation must capture the individual’s quintessence, or defining characteristics. Finally, the exploitation of the personality must have been done for commercial purposes.

While Canada’s version of the “right of publicity” may never develop to the point it resembles the hotly debated American law, the reality is the unauthorized use of an individual’s name, voice or likeness could be a costly mistake. The only sure way to avoid being sued is to negotiate for the rights to the personality. While the endorsement cost is never cheap, the cost will not be nearly as high as potential damages awarded if a high-profile figure decides to enforce his or her exclusive right to control the commercial use of their personality in the marketplace.

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