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    EWO/INF/108WIPOORIGINAL:EnglishDATE:December1994

    WORLD INTELLECTUAL PROPERTY ORGANIZATIONGENEVA

    CHARACTERMERCHANDISING

    ReportpreparedbytheInternationalBureau1

    The1992/1993ProgramandBudgetoftheWorldIntellectualPropertyOrganization(document AB/XXII/2)providesinItem04(7)thatTheInternationalBureauwill,onthebasisoftheanalysisitwillhavecarriedoutin1991ontheworldsituationinrespectofthelawsapplicable tocharactermerchandising(thatis,theuseofthename,picture,voiceandstatementsofareal orfictitiouspersonalitytopromotethesaleanduseofcertainproductsorservices),prepareand publishareportonthistopic.Thepresentdocumentanditsannexesconstitutethesaidreport.

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    TABLEOFCONTENTSINTRODUCTION.............................................................................................................4I. THENOTIONOFCHARACTER..........................................................................4(a) Definition .................................................................................................................4(b) SourcesandPrimaryUseofCharacters..................................................................4

    (i) FictionalCharacters ......................................................................................4(ii) RealPersons...................................................................................................5

    II. THECONCEPTOFCHARACTERMERCHANDISING....................................6(a) Definition .................................................................................................................6(b) ABriefHistoryofCharacterMerchandising ..........................................................6(c) TypesofCharacterMerchandising..........................................................................8

    (i) MerchandisingofFictionalCharacters.........................................................8(ii) PersonalityMerchandising ............................................................................9(iii) ImageMerchandising.....................................................................................9

    III. THELAWFULMERCHANDISINGOFACHARACTER..........................................10(a) TheRightsAttachedtoaCharacter.......................................................................10(b) OwnershipoftheRightsAttachedtoaCharacter .................................................10(c) MeansofLawfulMerchandisingofaCharacter ...................................................11

    (i) FictionalCharacters ....................................................................................11(ii) RealPersons.................................................................................................13

    IV. FORMSOFLEGALPROTECTION....................................................................13A. INTELLECTUALPROPERTYRIGHTS.............................................................14(a) Copyright ...............................................................................................................14

    (i) Introduction..................................................................................................14(ii) Protectability................................................................................................16

    FictionalCharacters....................................................................................16RealPersons.................................................................................................17

    (b) IndustrialDesigns ..................................................................................................18(i)

    Introduction..................................................................................................18

    (ii) Protectability................................................................................................18

    (c) TrademarksandServiceMarks(Marks)...............................................................19(i) Introduction..................................................................................................19(ii) Protectability................................................................................................20

    (d) UnfairCompetition................................................................................................22B. OTHERFORMSOFPROTECTION...................................................................23

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    V. SCOPEOFPROTECTION...................................................................................24A. RightsConferred....................................................................................................24(a) Copyright ...............................................................................................................24(b) IndustrialDesigns ..................................................................................................25(c)

    Marks .....................................................................................................................25

    B. EnforcementofRights;MeasuresandRemedies................................................. 26(a) Introduction............................................................................................................26(b) CivilSanctions.......................................................................................................27

    (i) Injunctions27PreliminaryInjunction.................................................................................27FinalInjunction............................................................................................27

    (ii) AccompanyingMeasures..............................................................................27(iii) Damages 28(iv) RectificationandPublicationoftheCourtDecision ...................................28

    (c) RighttoSue...........................................................................................................28(i) InRespectofIntellectualPropertyRights...................................................28(ii) UnfairCompetition(andPassing-Off).........................................................29

    (d) MeasurestoSecureEvidence(Discovery) ............................................................30(i) DescriptiveandPhysicalSeizures...............................................................30(ii) AntonPillerOrder.......................................................................................30

    (e) AcceleratedProceedings........................................................................................31(f) CriminalSanctions.................................................................................................31VI. GENERALCONCLUSION..................................................................................31ANNEXICopyright...........................................................................................................................1IndustrialDesigns.............................................................................................................6Trademarks.......................................................................................................................8UnfairCompetition(IncludingPassing-Off)..................................................................15OtherFormsofProtection..............................................................................................25Remedies.........................................................................................................................31RequirementsinRespectofAgreements.........................................................................32ANNEXII

    LegislativeTexts................................................................................................................1

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    INTRODUCTIONPurposeoftheStudyandQuestionstobeExamined Thepresentstudyisintendedtoexaminethequestionofcharactermerchandising,

    whichcanbeconsideredasoneofthemostmodernmeansofincreasingtheappealofgoods orservicestopotentialcustomers.

    Inthatconnection,thefollowingquestionswillbeexamined: thenotionofcharacter(definition,sourcesandprimaryuse); theconceptofcharactermerchandising(definition,historyandtypes); thelawfulmerchandisingofacharacter; theformsofprotectionavailableforcharacters(relevanceofintellectualproperty

    and,incertaincases,ofpersonalityandpublicityrights); thescopeofprotection(rightsconferredandenforcementofthoserights

    (measuresandremediesavailable)). Furthermore,thepresentstudyalsocontains(AnnexI)informationonprovisionsof

    lawsandjurisprudencerelevanttocharactermerchandisinginanumberofcountries (Australia,Canada,France,Germany,theUnitedKingdomandtheUnitedStatesofAmerica ontheonehandand,toalesserextent,Chile,India,JapanandNigeria).

    I. THENOTIONOFCHARACTER(a) DefinitionBroadlyspeaking,thetermcharactercoversbothfictionalhumans(forexample,

    TarzanorJamesBond)ornon-humans(forexample,DonaldDuckorBugsBunny)andreal persons(forexample,famouspersonalitiesinthefilmormusicbusiness,sportsmen).

    Inthecontextofthemerchandisingofcharacters,itismainlytheessentialpersonality featureseasilyrecognizedbythepublicatlargewhichwillberelevant.Thosepersonality featuresare,forexample,thename,image,appearanceorvoiceofacharacterorsymbols permittingtherecognitionofsuchcharacters.

    (b) SourcesandPrimaryUseofCharacters(i) FictionalCharacters

    Themainsourcesoffictionalcharactersare: literaryworks(suchasPinocchiobyCollodiorTarzanbyE.R.Burroughs); stripcartoons(suchasTintinbyHergorAstrixbyUderzoandGoscinny);

    artisticworks(suchaspaintings(MonaLisabyLeonardodaVinci))ordrawings

    (thepandaoftheWorldWideFundforNature(WWF)ortheyoungboyFido

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    DidobyJoannaFerroneandSusanRose); cinematographicworks(suchasCrocodileDundee,KingKong,RamboorE.T.

    withrespecttomovies,McGyverorColumbowithrespecttotelevisionseriesor Bambiwithrespecttomotionpicturecartoons).

    Itshouldbenotedthat,inthecaseofcinematographicworks,thecharactermay,andin

    factoftendoesoriginateinaliterarywork(suchasthecharacterOliverTwistby CharlesDickens)orinastripcartoon(suchasthecharacterBatman).

    Asregardstheprimaryuseofafictionalcharacter,itcaninmostcasesbereferredtoas anentertainmentfunction.Suchacharactermayappearinanovel,ataleorastripcartoon (forexample,thecharacterTarzaninthenovelentitledTarzan,theLordoftheJungle,the characterMr.BrowninthetaleentitledSquirrelNutkinorthecharactersnamed JamesBondorTintin),andthesuccessgainedbytheworkdepictingthecharactergenerally leadstonewstories.Suchprimaryusewillbemadebythecreatorofthecharacter,although, whereacharacterhasreachedahighdegreeofreputationandthecreatorhasdied,theheirsifany,ortheholdersofthepublishingrights,mayorganizebymeansofcontractsthesurvival ofthecharacterinnewstories(forexample,thebooksfeaturingJamesBondafterthedeathof lanFleming).Othercreators,onthecontrary,maywishthatthecharacterstheyhavecreated shouldnotbethesubjectofnewstoriesaftertheirdeath(forexample,Herg,thecreatorof Tintin).Thesituationissomewhatdifferentinthecaseofcinematographicworks,whereitis seldomthecreatorofacharacter(themakeroftheoriginaldrawingsorscripts)whomakes theprimaryuse(butexceptionsdoexist,suchasthelittlemancharactercreatedby CharlieChaplin).

    Inothercases,theprimaryusesofafictionalcharactercansometimesbereferredtoas promotional,advertisingandrecognitionfunctions.Thiswillconcern,forexample, characterswhicharecloselylinkedtoacertaincompany(suchastheMichelinMan,the Exxon(Esso)tigerorthePeugeotlion),toacertainproduct(suchasthecharacter JohnnieWalkertoaScotchwhisky)ortoagivenevent(suchasthemascotsusedto personalizeOlympicGamesorWorldCupfootball).Thosecharactersarecreatedwitha viewtopopularizinglegalentities,productsorservices,andactivities.Generally,theprimary usewillnotoriginatefromthecreatorofthecharacter,i.e.,thepersonentrustedwiththetask ofcreatingthecharacter.

    (ii) RealPersonsThemainsources,wherethecharacterisarealperson,arethemovieandshow

    businessesandsportingactivities.Inthecaseofrealpersons,oneshouldspeakofprimary activityinpreferencetoprimaryuse.Thedifficultywithrealpersonsisthatactors,for example,mayenjoyareputationbothaspersonsandasthecharactertheymayhave portrayedinamovieortelevisionseries.Insomecases,therealpersonisonlyreferredto underthenameofthecharacterportrayed(seedevelopmentsbelowonthetypesofcharacter merchandising).

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    II. THECONCEPTOFCHARACTERMERCHANDISING(a) DefinitionCharactermerchandisingcanbedefinedastheadaptationorsecondaryexploitation,by

    thecreatorofafictionalcharacterorbyarealpersonorbyoneorseveralauthorizedthird parties,oftheessentialpersonalityfeatures(suchasthename,imageorappearance)ofa characterinrelationtovariousgoodsand/orserviceswithaviewtocreatinginprospective customersadesiretoacquirethosegoodsand/ortousethoseservicesbecauseofthe customersaffinitywiththatcharacter.

    Itshouldalreadybeemphasizedthatthepersonorlegalentitywhichwillorganizethe merchandisingactivity(themerchandiser)willveryseldombethecreatorofthefictional characterortherealpersonconcerned.Thevariouspropertyorpersonalityrightsvestingin thecharacterwillbethesubjectofcontracts(suchastransferorlicenseagreementsorproduct orserviceendorsementagreements)enablingoneorseveralinterestedthirdpartiestobe

    regardedasauthorizedusersofthecharacter.

    Thefollowingexamplesofcharactermerchandisingcanbegiven: atoyisthethree-dimensionalreproductionofthefictionalcharacter

    MickeyMouse; aT-shirtbearsthenameorimageofthefictionalcharactersNinjaTurtles; thelabelattachedtoaperfumebottlebearsthenameAlainDelon; tennisshoesbearthenameAndrAgassi; anadvertisingmoviecampaignforthedrinkCocaColaLightshowsthepopstar

    EltonJohndrinkingCocaColaLight;(b) ABriefHistoryofCharacterMerchandising Asanorganizedsystem,charactermerchandisingoriginatedandwasinitiatedinthe

    UnitedStatesofAmericainthe1930sintheWaltDisneyStudiosinBurbank(California). Whenthiscompanycreateditscartooncharacters(Mickey,Minnie,Donald),oneofits employees,KayKamen,establishedadepartmentspecializedinthesecondarycommercial exploitationofthosecharactersand,tothesurpriseofmost,succeededingrantingan importantnumberoflicensesforthemanufactureanddistributionoflow-pricedmassmarket

    merchandise(posters,T-shirts,toys,buttons,badges,drinks).

    Ofcourse,theideaofsecondaryexploitationofthereputationofacharacterexisted beforethetwentiethcentury,butthereasonswerenotdirectlycommercial.InSouthEast Asia,forexample,thereligiouscharactersofRamayana,suchasPrinceRama,Vishnuand Sita,haveforcenturiesbeenrepresentedintheformofsculptures,puppetsortoys. Furthermore,inmorerecenttimes(late19thcentury),someindustrialists,withaviewto popularizingthegoodstheymanufactured,decidedtocreatefictionalcharacterswhichwould berepresentedonthegoods,thepackagingoranydocumentsandwouldbeusedtogenerate secondaryexploitationforfunctionalorornamentalgoodssuchasdecorativeplates,articles ofclothing,clocks,puppets,etc.(forexample,inFrance,thecharacterPierrotGourmand(a famousmarkforlollipops)ortheMichelinManofthetiremanufacturer.Furthermore,the

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    exploitationofliterarycharactersprobablystartedwiththeworksofBeatrixPotter(thebooks PeterRabbitandSquirrelNutkinwiththeanimalcharacterswhichbecameandstillare representedintheformofsofttoysorotherarticlesforchildren)orwiththeworkof LewisCarroll(AliceinWonderland),thecharactersofwhichalsobecamesofttoysandwere lateradaptedintoamotionpicturecartoon.

    Thisphenomenondevelopedrapidlyduringthe20thcentury.Inthe1950s,political, movieandshow-businesspersonalitiesauthorized,forexample,thereproductionoftheir namesorimagesonarticlesofclothing(so-calledtie-inadvertising).Inthe1970sandthe 1980s,merchandisingprogramsweresetuponthebasisoffamouscharactersfromfilms (forexample.StarWars,E.T.orRambo).Thefinancialconsequencesareverysignificant since,forexample,theWaltDisneyMerchandisingDivisionin1978soldover$27millionin merchandisedgoodsbearingthenamesorimagesofthefamouscharacterscreatedintheir studios,andin1979KennerProductssoldover$100millioninmerchandisedgoodsrelating tothecharactersdepictedinthemovieStarWars.

    Furthermore,therangeofgoodsorservicescoveredbymerchandisingexpanded considerablysince,forexample,intheUnitedStatesofAmerica,itconcerns*atleast29of the42classesoftheInternationalClassificationofGoodsandServicesestablishedbythe NiceAgreement.

    Today,merchandisingprograms(whetherornottheyincludetheuseoftheessential personalityfeaturesofacharacter)mayconcern

    universities(intheUnitedStatesofAmerica,merchandisingoftheUniversityof CaliforniainLosAngeleswithitssymbolU.C.L.A.);

    organizations(advertisingcampaignforAmnestyInternationalinFrancewiththe participationoffamousfilmactors,ormerchandisingoftherepresentationofa pandabytheWorldWideFundforNature(WWF));

    sportsevents(merchandisingofthemascotsofthe1992OlympicGamesin Albertville(France)andBarcelona(Spain));

    socialevents(weddingofPrinceCharlesandLadyDianaintheUnited Kingdom);

    artexhibitions(merchandisingoftheimagesofVanGoghorToulouse-Lautrec); naturalevents(merchandisinginconnectionwithHalleysComet),scientific

    events(thecomicstripcharacterSnoopywasthemascotofthefirstAmerican astronauts);

    personalitiesinmanyfieldsofactivity(actors,popstars,sportsmen,etc.,whose namesandimagesarereproducedonvariousgoods,packaging,documentsor othermaterial).

    Thishistoricalintroductioncanbeconcludedwithfourexamplesshowingtheimpact andimportanceofcharactermerchandising.Firstly,intheUnitedStatesofAmerica,afterthe wideadvertisingcampaignmadebytheIBMCompanyforitscomputers,usingalook-alike ofCharlieChaplin,thecharacterwhoappearedwassometimesreferredtonolongeras CharlieChaplinbutastheIBMGuy.Secondly,inthecaseoftheEuroDisneyParkwhich wasinauguratedinApril1992nearParis,acompanyobtained,forthewholeofEurope,the exclusiverighttoreproducetheWaltDisneycharacters.Thirdly,theprofitsmadeinFrance fromtherecentToulouse-Lautrecretrospectiveexhibition(mainlybythesalesof merchandisedproductsrelatingtotheimageofthepainter)enabledtheLouvreMuseumto purchaseanimportantpaintingforitscollection.Finally,theSonyCorporationhasrecently

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    formedacharactermerchandisingunitthatwillsellproductsbasedonitsmusic,filmand videobusinesses.

    (c) TypesofCharacterMerchandising Fromacommercialormarketingpointofview,charactermerchandisingcanprobably

    bedealtwithinasinglecategory.However,fromthelegalpointofviewitisimportantto differentiatebetweenthevarioussubjectsofmerchandising,sincethescopeanddurationof legalprotectionmayvaryaccordingtothesubjectinvolved.

    Twomaincategoriesexistdependingonwhetherthemerchandisinginvolvestheuseof fictionalcharactersorofrealpersonalities(generallyreferredtoaspersonality merchandising).Betweenthosetwocategories,athirdhybridcategoryexistswhichis generallyreferredtoasimagemerchandising.

    (i) MerchandisingofFictionalCharactersThisistheoldestandthebestknownformofmerchandising.Itinvolvestheuseofthe

    essentialpersonalityfeatures(name,image,etc.)offictionalcharactersinthemarketing and/oradvertisingofgoodsorservices.

    Originally,thepracticeofcharactermerchandising,asanorganizedsystemof promotion,developedasameansofexploitingthepopularityofcartooncharacters,drawings ofattractivefiguresandthelike.Suchcartooncharactersoriginated:

    inaliteraryworkbeingadaptedtothecartoonform(forthepurposeofamovieor acomicstrip)suchasthecharactersPinocchioorAliceinWonderland;

    inaworkcreatedasacartooncharacter,originallyforfilms(MickeyMouse, DonaldDuck,Pluto)orforcomicstrips(Tintin,Snoopy,Astrix,Batman);

    inafilmcharacter,laterreproducedoradaptedasacartoonforadvertisingand merchandisingpurposes(thecharacterZorroorevenarealcreaturesuchasthe sharkinthefilmJaws);

    inacartooncharactercreatedmainlyforthepurposeofmerchandisingandnot, originally,intendedforamovieorcomicstrip(forexample,thecharacterFido Dido,exploitedbyFidoDido,Inc.foranumberofgoodsincludingthedrink Seven-Upwhichwasthesubjectofaworldwideadvertisingcampaign,orthe numerousmascotscreatedandusedinrespectofvariousevents,suchassports competitions);

    inapuppetordollcharacterdesignedforafilmoratelevisionshow(forexample, thecharacterE.T.,theGremlinsortheMuppets).

    Charactermerchandisingwithcartooncharactersinvolvesmainlytheuseofthename, imageandappearanceofthecharacter.Theappearancemayinvolvetwo-dimensional reproduction(drawings,stickers,etc.)orthree-dimensionalreproduction(dolls,keyrings, etc.).

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    (ii) PersonalityMerchandisingThismorerecentformofmerchandisinginvolvestheuseoftheessentialattributes

    (name,image,voiceandotherpersonalityfeatures)ofrealpersons(inotherwords,thetrue identityofanindividual)inthemarketingand/oradvertisingofgoodsandservices.In general,therealpersonwhoseattributesarecommercializediswellknowntothepublicat

    large;thisisthereasonwhythisformofmerchandisinghassometimesbeenreferredtoas reputationmerchandising.Infact,fromacommercialpointofview,merchandisersbelieve thatthemainreasonforapersontobuylow-pricedmassgoods(mugs,scarves,badges,Tshirts,etc.)isnotbecauseoftheproductitselfbutbecausethenameorimageofacelebrity appealingtothatpersonisreproducedontheproduct.

    Thiscategorycanbesubdividedintotwoforms.Thefirstformconsistsintheuseof thename,image(intwoorthreedimensions)orsymbolofarealperson.Thisformrelates mainlytofamouspersonsinthefilmormusicindustries.However,personsconnectedwith otherfieldsofactivitymaybeconcerned(forexample,membersofaroyalfamily).As indicatedabove,itisnotsomuchtheproductwhichisofprincipalimportancetothe consumer,butratherthenameorimagethatitbearsisthemainmarketingandadvertising vehicle.Thesecondformoccurswherespecialistsincertainfields,suchasfamoussportsor musicpersonalities,appearinadvertisingcampaignsinrelationtogoodsorservices.The appealforthepotentialconsumeristhatthepersonalityrepresentedendorsestheproductor serviceconcernedandisregardedasanexpert.Ofcourse,themoretheproductorservice advertisedislinkedwiththeactivityofthepersonality,themorethepotentialconsumerwill considerthatthesaidproductorserviceisendorsedandapprovedbythatpersonality (advertisingfortennisshoesorracketsbyatennischampion,advertisingforanenergydrink byacross-countryrunneroradvertisingforhigh-fidelityequipmentormusicalinstrumentsby apopstar).

    (iii) ImageMerchandisingThisisthemostrecentformofmerchandising.Itinvolvestheuseoffictionalfilmor

    televisioncharacters,playedbyrealactors,inthemarketingandadvertisingofgoodsor services.Inthosecases,thepublicsometimesfindsitdifficulttodifferentiatetheactor(real person)fromtheroleheplays(characterportrayed).Sometimes,however,thereisa completeassociationandtherealpersonisreferredtoandknownbythenameofthe character.Thefollowingexamplescanbegiventoillustratethisnotion:fromthefilm industries,LaurelandHardy,theMarxBrothers,CrocodileDundee,JamesBond007played

    bySeanConneryandRogerMoore,FrankensteinsmonsterbyBorisKarloffandTarzanby JohnnyWeissmuller;fromtelevisionseries,ColumboplayedbyPeterFalk,thecharacterJ.R. inDallas,playedbyLarryHagman,orthecharacterMcGyverplayedbyRichardDean Anderson.Inthecaseofthelatter,aT-shirtbearingtheimageofR.D.Andersonwouldbe referredtoasaMcGyverT-shirt,whilepacksofdairyproductsreproducingtheimageof R.D.Anderson.wouldmentionthenameMcGyver,thepurchasingofsuchproductgivingthe possibilityofwinningsecondaryMcGyverproductssuchasT-shirtsortravelbags.

    Inthecaseofimagemerchandising,goodsorserviceswillbemarketedwiththe merchandisingofdistinctiveelementsofafilmorseries(appearanceanddressoftheactor whenplayingthecharactercoupledwithmemorableaspectsofascene(forexample, introductoryscenesoftheJamesBondfilms,theappearanceandweaponsofRamboorthe

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    knifesceneinCrocodileDundee)).

    III. THELAWFULMERCHANDISINGOFACHARACTERTwoofthemostimportantquestionstobestudiedrelatetotheownershipoftherights

    attachedtoacharacterandtotheconditionsunderwhichthemerchandisingoftheessential featuresofacharactercanberegardedaslawful.

    (a) TheRightsAttachedtoaCharacterTherightsattachedtoafictionalcharactercangenerallybereferredtoasproperty

    rights,whichincludeeconomicandexploitationrights.Asisthecasewithmostproperty, thoserightsincludetherighttouseafictionalcharacter(ormorepreciselyhisname,image, appearance,etc.),therighttoreceivethebenefitsresultingfromitsuseandtherightto

    disposeofit.

    Withrespecttorealpersons,therightsattachedto, interalia,thename,imageorappearanceofarealpersonmaybereferredtoaspersonalityrightsorpublicityrights. Thoserightsincludetherighttousetheessentialpersonalityfeaturesandtoreceivethe benefitsresultingfromsuchuse.Furthermore,whereacertainformoflegalprotection(for example,trademarkprotection)isapplicabletosomeofthosefeatures,thesaidformmay, undercertainconditions,betransferred.

    Inprinciple,onlythepersonorlegalentitythatownstherightsinacharacterisentitled toexercisetherighttouseit,includingthesettingupofamerchandisingprogram.Iftheuser orthemerchandiserisnottheowneroftherights,hewillberegardedasalawfuluseror merchandiserifhehasrequestedandobtainedthepreliminaryauthorization(or,ifpossible, acquiredtherights)fromthesaidowner.

    Itisimportanttonotethattherightsattachedtoacharactermayenjoylegalprotection inanumberofformsavailableeitherautomatically,undercertainconditions(forexample, copyright,personalityorpublicityrights),orfollowinganactbeforeacompetentauthority (forexample,trademarkorindustrialdesignprotection).Thequestionsrelatingtolegalforms ofprotectionwillbedevelopedinPartIVofthisstudy.

    (b) OwnershipoftheRightsAttachedtoaCharacter Therightsattachedtoacharacter(beingafictionalcharacterassuchorthefictional

    characterportrayedbyarealpersoninconnectionwithimagemerchandising)areinprinciple ownedbythecreatorofthatcharacter,unlessthecreatorhastransferredhisrights,was commissionedtocreate,createdinthecourseofhisprofessionalactivityforhisemployeror hasdied(seedevelopmentsbelow).

    Inthecaseofpersonalitymerchandising,therightsattachedtotherealperson concernedare,inprinciple,ownedbythesaidperson.

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    (c) MeansofLawfulMerchandisingofaCharacter (i) FictionalCharacters

    Thelawfulmerchandisingoftheessentialpersonalityfeatures(suchasthename, pseudonym,image,appearanceorsymbol)ofafictionalcharactermaybemadeinrespectof one,severalorallofthosefeatures,by:

    thecreatorhimselfasowneroftherights; theholderoftherights(notbeingthecreator)pursuanttoacontract (transferagreement); theholderoftherights(notbeingthecreator)byoperationoflaw; anauthorizeduser(notbeingholderoftherights)pursuanttoalicense agreement.

    Generally,thecreatorassuchofafictionalcharacter,whowilloftenbeanindividualor agroupofpersons,willnotsetupamerchandisingprogram.Thecreator(forexample,the authorofasuccessfulnovel)mayenvisage,inexchangeforalumpsum,transferringtoone orseveralpersonstherightsattachedtotheessentialpersonalityfeaturesofthecharacters portrayedinhiswork(rightofcinematographicadaptation,righttoreproducethenameor appearanceofacharacteroncertaingoods,etc.).Insomecases,thenewholderoftherights mayhavetomaketheprimaryuseofthecharacter(forexample,wheredrawingsare transferredtoafilmcompanyforthepurposeofamotionpicturecartoon)beforeenvisaging thesettingupofamerchandisingprogram.Theamountofthelumpsumwhichwillbe allocatedtothecreatorwilldependonseveralfactors,suchas:

    whetherthenewholderhasnolinkswiththecreatororwassetupandiscontrolledbythecreator;

    whetherthetransferisgeneralorlimitedinsomeways(withrespecttofieldsof activity,territorialscope,etc.);

    whetherthetransferincludestheassignmentoflegalformsofprotectionsuchas trademarksorindustrialdesigns;

    whethertheessentialpersonalityfeaturesofthecharacterenjoyed,atthetimeof thetransfer,areputationand,ifso,theextentofsuchreputation.

    Itshouldbenotedthat,whereatransferincludestheassignmentofsomelegalformsof protection(forexample,trademarks),somespecificconditionsmayexistinsomecountries (seeAnnexI).

    Theremaybecaseswhereaperson,notbeingthecreatorofafictionalcharacter,holds eitherinwholeorinparttherightsattachedtoitwithouthavingacquiredthesaidrightsby contractbutratherbyoperationoflaw.Twoexamplescanbegiven,namely:

    where,followingthedeathofthecreator,theheirshaveinheritedtherights attachedtoafictionalcharacter;

    insomecases,wherethecreatorhadbeencommissionedorentrustedtocreatea fictionalcharacterorwherethecharacterwascreatedinthecourseofthenormal

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    professionalactivitiesofthecreator. Inpractice,theholdersoftherightsattachedtoafictionalcharacterwhohaveno

    intentionofbeingdirectlyinvolvedinamerchandisingactivitywillnottransfertheirrights butwill,bywayoflicenseagreements,authorizetheuseofone,severaloralltheessential personalityfeaturesofafictionalcharacter.Theholderoftherightsmayeitherdirectly

    negotiatewithpotentiallicensees,orsub-licenseoneofitssubsidiarycompanieswhichwill negotiateorarrangeforamerchandisingagencytonegotiate.

    Theholderoftherightmayconcludeseverallicenseagreementswithdifferentlicensees accordingtothelattersactivities(forexample,alicenselimitedtothereproductionofthe nameandimageofacharacteronT-shirtsandanotherlicenseagreementlimitedtofoodstuffs and/orbeverages).Thelicensemaybeexclusiveornon-exclusiveinrespectofcertaingoods andwithinthesameterritory(onecountry).

    Itshouldfurtherbenotedthatmostoftheimportantlicensingagreementsinthecontext ofthemerchandisingalsoincludetherightforthelicenseetouseone,severalorallofthe essentialpersonalityfeaturesofthecharacterforpromotionalpurposes(suchastheuseof thelicenseescompanynameinassociationwiththenameorimageofthecharacters concerned).

    Amerchandisingagreementintheformofalicenseagreementwillgenerallycontain thefollowingprovisions:

    theindicationthatthelicenseisexclusiveornon-exclusive; thedefinitionofthesubjectmatteroftheagreement,includingthedescriptionof

    thefeatures(name,pseudonym,image,appearance,voice,etc.)relatingtothe characterwhichcanbemerchandisedbythelicensee;

    theindication,ifapplicable,thattheagreementincludesthelicensing,withinthe territorycoveredbyit,ofintellectualpropertyrightsrelatingtothecharacter (copyright,trademarksorindustrialdesigns);

    theindicationoftheproductsofthelicenseecoveredbytheagreement,andthe informationonwhethertheagreementextendstothemanufactureand/or distributionandsaleofthoseproductsandtothecorrespondingpackagingand advertisingmaterials;

    theindicationoftheperiodduringwhichtheagreementapplies,andthe informationonwhethertheagreementcanbeprolongedafterthatperiodor,on thecontrary,terminatedbeforethatperiodundercertainconditions(suchas failuretomanufactureand/ordistribute,defaultsinpaymentsand,ingeneral,any breachoftheconditionsoftheagreement),includingtheconsequencesofsuch earlytermination;

    theindicationoftheterritorialscopeoftheagreement; thefinancialtermsoftheagreement,suchasthepaymentofalumpsumorofa

    minimumguaranteesumplusroyaltiesatregularintervals,withanindicationof themeansofcalculationofthoseroyalties;

    theconditionsrelatingtothepriorapprovalthelicensorshouldgivethelicensee withrespecttothemannerinwhichthefeaturesofthecharacterareusedonorin connectionwiththeproducts(includingthepreliminaryfurnishingofsamples);

    theindicationthatthelicenseeshouldinformthelicensorofanyunauthorizeduse ofthecharacterbythirdpartieswithintheterritorycoveredbytheagreementand cooperatewiththelicensorinanyproceedingsinitiatedagainstsuchthirdparties;

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    theindicationthatthelicenseemaynotgrantanysub-licensesor,onthecontrary, theconditionsunderwhichmanufacturingand/ordistributionsub-licensesmaybe grantedbythelicensee.

    Merchandisingagreementsmaybelimitedtoatrademarklicenseagreementauthorizing thenon-exclusiveuseofthenameofafictionalcharacteronT-shirtsinonecountryormay

    covertheexclusiveuse(includingmanufactureanddistribution)ofalltheessentialfeaturesof severalfictionalcharactersforawiderangeofproductsandinalargenumberofcountries (suchasthelicenseagreementsconcludedbytheWaltDisneyCompany).

    Aswasmentionedinthecaseoftransfers,wherealicenseagreementincludesthe licensingofintellectualpropertyrights,someconditionsmaybeimposedbythelawsofsome countries(seeAnnexI).

    (ii) RealPersonsThemeansoflawfulmerchandisingofafictionalcharactermentionedinparagraph35

    ofthepresentreportare,inprinciple,applicableinthecaseofpersonalitymerchandising(for example,wherethenameofafamousactoriswrittenonthelabelofaperfumebottleorhis imageappearsonthepackagingofdairyproduct,orwheretheimageofafamoussportsman appearsonadvertisementsforasoftdrink).

    Generallyarealpersonwillnothimselfexploittheessentialfeaturesofhispersonality (suchashisnameorimage)directly.Hewilleitherentrustanagentor,ifhewantsto participatemoreactively,setupacompany.

    Themainagreementswhichwillbenegotiatedwillbelicenseagreementsorproductor serviceendorsementagreements.AsshowninPartIVofthisreport,arealpersonismainly protectedagainstunauthorizedcommercialexploitationofhisnameorimagebypersonality orpublicityrightswhich,inprinciple,cannotbethesubjectofatransferbutonlyofan authorizationofuse.Thesamegenerallyappliesifthenameofarealpersonisregisteredasa trademark.

    Itshouldbementionedthatinnegotiatingagreementswithindividuals,suchasartists, particularcareshouldbetakeninmostcountries,evenwheretheindividualislegally represented(byanagent),toeliminatethepossibilityofanagreementbeingunenforceableby reasonofitsbeingenteredintoasaresultofundueinfluenceorduress.

    IV. FORMSOFLEGALPROTECTIONApparently,nocountryhasenactedsuigenerislegislationontheprotectionofcharacter

    merchandising.Furthermore,thereexistsnointernationaltreatydealingspecificallywiththat topic.Therefore,anypersonorentitymustrelyondifferentformsofprotectionand, consequently,differentlegaltexts.

    Oneofthemostimportantareasoflawinvolvedinthelegalprotectionofcharacter merchandisingisintellectualpropertylaw.Alistofwhatconstitutesthevarioussubjectsof intellectualpropertywillbefoundinArticle2(viii)oftheConventionEstablishingtheWorld

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    IntellectualPropertyOrganization(comprising150memberStates).Thisprovisionreadsas follows:

    Intellectualpropertyshallincludetherightsrelatingto:

    literary,artisticandscientificworks,

    performancesofperformingartists,phonograms,andbroadcasts, inventionsinallfieldsofhumanendeavor, scientificdiscoveries, industrialdesigns, trademarks,servicemarks,andcommercialnamesanddesignations, protectionagainstunfaircompetition, andallotherrightsresultingfromintellectualactivityintheindustrial,scientific,

    literaryorartisticfields.Onlysomeoftheintellectualpropertyrightsmentionedabovearerelevanttosomeor alltypesofcharactermerchandising.Furthermore,otherformsofprotectionareapplicableto

    sometypesofcharactermerchandising. Basically,thelegislationoncopyright,trademarksandindustrialdesigns,togetherwith

    theprotectionagainstunfaircompetition(includingpassing-off),mayberelevantinthe contextofthemerchandisingoffictionalcharactersandofimagemerchandisingwhile,toa lesserextent,thelegislationontrademarksandindustrialdesignsandtheprotectionagainst unfaircompetitionmayberelevantinthecontextofpersonalitymerchandising.

    Furthermore,withrespecttopersonalitymerchandising,otherareasoflaw(suchas personalityorpublicityrights)mayberelevant. A. INTELLECTUALPROPERTYRIGHTS

    (a) Copyright(i) Introduction

    Article2(1)oftheBerneConventionofSeptember9,1886,fortheProtectionof LiteraryandArtisticWorks(applicableto110memberStates)readsasfollows:

    Theexpressionliteraryandartisticworksshallincludeeveryproductioninthe literary,scientificandartisticdomain,whatevermaybethemodeorformofitsexpression, suchasbooks,pamphlets,andotherwritings;lectures,addresses,sermonsandotherworksof thesamenature;dramaticordramatico-musicalworks;choreographicworksand entertainmentsindumbshow;musicalcompositionswithorwithoutwords; cinematographicworkstowhichareassimilatedworksexpressedbyaprocessanalogousto cinematography;worksofdrawing,painting,architecture,sculpture,engravingand lithography;photographicworkstowhichareassimilatedworksexpressedbyaprocess analogoustophotography;worksofappliedart;illustrations,maps,plans,sketchesand three-dimensionalworksrelativetogeography,topography,architectureorscience.

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    Generallyspeaking,itistheexpressionoftheauthorsideasthatisprotectedratherthan theideasthemselves.Ideas,assuch,arenotprotectedbycopyright.Apersonwhohasmade hisideapublic,forexampleinanoralpresentation,hasnomeansofpreventingothersfrom usingit.Butoncethatideahasbeenexpressedintangibleform,copyrightprotectionexists forthewords,drawings,photographs,etc.,inwhichitispresented.

    Aworkenjoyscopyrightprotectioniftheforminwhichitisexpressedconstitutesan originalcreationoftheauthor.Furthermore,somecountriesrequire,mainlyforreasonsof proof,somefixationoftheworkbeforeprotectioncanbeenforced.Finally,protectionis independentofthequalityortheaestheticvalueattachingtothework,andevenofthe purposeforwhichitisintended.

    Forthecreatorofaworkofauthorship,copyrightisbasicallytherighttorespectforhis creationandtherighttoderiveprofitfromhisworkbycollecting,foralimitedperiod,the revenuegeneratedbytheuseofhiscreativeeffort.Copyrightprotectiongenerallymeansthat certainusesofworksorcertainrelatedactsareunlawful,exceptwheretheauthoror copyrightownerhasauthorizedthem.Theseusesmay,forexample,includethecopyingor reproducing,inanymannerorform,ofanykindofworkandtheadaptationoftheworkto anothermediumofexpression.Anyunauthorizeduseofworksprotectedbycopyright,where authorizationisrequired,constitutesacopyrightinfringementandtheprejudicecausedmay beremedied.

    Therightsinaliteraryorartisticworkconsistofeconomicorexploitationrightsonthe onehandandofmoralrightsontheother.Themaineconomicrightsaretherightsof adaptation,reproductionorcommunicationofaworktothepublic,includingbroadcasting andpublicperformance.Thoserights,whichwillnecessarilybeexercisedinthecaseof merchandising,areusuallytransferredbytheauthoroftheworkor ,inthecaseofaworkmadeforanemployer,generallybelongtothatemployer.Moralrights,onthecontrary,are non-assignableandinalienable.TheyarerecognizedinArticle6bis(l)oftheBerne Conventionastherightsoftheauthororcreatortoclaimauthorshipoftheworkandtoobject toanydistortion,mutilationorothermodificationof,orotherderogatoryactioninrelationto, thesaidwork,whichwouldbeprejudicialtohishonororreputation.Somecountriesprovide forawiderdefinitionofmoralrightsincluding,forexample,therighttodisclosetheworkor therighttodisavoworwithdrawit.

    Itisgenerallyacceptedthatthewholesetofprerogativesthatconstitutecopyrightmust berecognizedandprotectedatleastthroughoutthelifeoftheauthor.Afterhisdeath,his workcontinuesinprincipletobeprotectedforacertaintime.Thespecificcharacterof literaryandartisticproperty,whichstemsfromthevocationofintellectualcreation,led nationallegislatorstomoderatetheexclusivenatureoftherightstobeconferredonthe authorsdescendantsfortheexploitationofhiswork.UnderArticle7(1)oftheBerne Convention,theperiodofprotectionisgenerally50yearsafterthedeathoftheauthor.This isregardedasafairbalancebetweenthepreservationoftheeconomicrightsconferredonthe authorandsocietysneedforaccesstoculturalexpression,whoseessentialaspectswillhavea morelastingeffectthantransitorysuccesses.

    Uponexpiryofthetermofprotection,theworkfallsintothepublicdomain.Itisno longerprotectedbycopyrightandcanbeusedbyanyonewithoutauthorization.Itshould howeverbenotedthat,throughotherformsoflegalprotection(forexample,trademark protection),someworksmaycontinuetobeprotectedagainstunauthorizeduse.

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    Inthecontextofthemerchandisingoffictionalcharactersandofimagemerchandising themostrelevantaspectsofcopyrightarebooks,pamphletsandotherwritings, cinematographicworks,worksofdrawingandphotographicworks.Asregardspersonality merchandising,therelevanceofcopyrightisprimarilyinthesphereofphotographicworks.

    Furthermore,thenotionofadaptationisveryimportant.Article2(3)oftheBerne

    Conventionreadsasfollows: Translations,adaptations,arrangementsofmusicandotheralterationsofaliteraryor

    artisticworkshallbeprotectedasoriginalworkswithoutprejudicetothecopyrightinthe originalwork.

    Themultiplicityofcommunicationmediaoffer,atthepresenttime,agreatnumberof possibilitiesforthecreationofadaptations(derivativeworks).Manyfilmadaptationsare probablymorewellknownthanthenovelorshortstoryonwhichtheywerebased(for example,thePinocchioandCinderellacartoonsbytheWaltDisneyStudiosareprobably betterknowntochildrenthantheoriginalstories,writtenbyCollodiandCharlesPerrault respectively).Somefamousartisticfigureshavebeenwidelymerchandisedoncetheyhave fallenintothepublicdomain.Forsomegoodsorservicesafictionalcharactermaybethe subjectofamonopoly(throughtrademarkprotection),butgenerallyitmaybeexploitedby anybody.Forexample,thefamousMonaLisa(LaGioconda)byLeonardodaVincihasbeen, andstillis,usedonvariousgoodsortheirpackaging(postcards,cardgames,dolls,alcoholic beverages,chocolateorfruitboxes,mineralwater,diaries);ithasalsobeenthesubjectof multipletransformations(cartoons,caricatures,fancyphotographs;etc.).

    (ii) ProtectabilityFictionalCharacters

    Inprinciple,copyrightprotectionisnotsubjecttoformalities,suchasthefilingofan application,asisthecaseforotherformsofindustrialproperty(industrialdesignsor trademarks)(seethedevelopmentsinAnnexI).Often,itiswhenthecreatorofthework decidestoexercisehisright,forexample,toprohibitwhatheconsiderstobeanunlawfuluse ofhiswork,thatthecourtswilldecidewhethertheworkconcernedisanoriginalcreation eligibleforcopyrightprotection.

    However,insomecountries,copyrightprotectionmaybedeniedorcurtailedwherea workiscreatedwiththeintentionofbeingexploitedindustriallyandembodiedinmassproducedarticles,whichisaninherentqualityofworks(drawings,dolls,puppets,robots, etc.)designedformerchandising.Thisresultsfromtheoverlapbetweenthenotionsofartistic worksandindustrialdesigns,wherethetwoformsofprotectionaregenerallynotavailable cumulativelyatthesametime.

    Asregardsliteraryworks,themainquestioniswhetherthenameofafictionalcharacter (whichmayalsobethetitleofthework)canbeprotectedundercopyrightperse,independentlyoftheworkasawhole.Theanswerisgenerallynegative,althoughcopyright protectionmayberecognizedifthefictionalcharacterissufficientlyclearlydelineatedand hasacquiredsuchdistinctivenessandnotorietyastoberecognizedbythepublicseparately

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    fromtheworkinwhichheappears(forexample,thecharacterTarzanintheworksof E.R.Burroughs).

    Drawingsorcartoons(two-dimensionalworks)maybeprotectedindependentlyifthey meetthesubstantiverequirementsofcopyrightprotection.Inthatrespect,itshouldbe emphasizedthataworkwhichisoriginalisnotnecessarilynew,sinceagraphicadaptationof

    analreadyexistingliterarycharacter(whetherornothehasfalleninthepublicdomain)may qualifyforcopyrightprotection(forexample,theliterarycharactersPinocchioorCinderella adaptedtothecartoonformbytheWaltDisneyCompany).Thesamewillapplytothe drawingofacommoncreature(forexample,thecartooncharacterDonaldDuck). Furthermore,itshouldbenotedthat,mainlyinthecaseofcartoonstripsandanimated cartoons,copyrightprotectseachdifferentoriginalposeadoptedbythecharacter.

    Three-dimensionalworks(mainlysculptures,dolls,puppetsorrobots),whichmaybe originalworksororiginaladaptationsoftwo-dimensionaloraudiovisualfictionalcharacters, willgenerallyenjoycopyrightprotectionindependentlyoftheworkinwhichtheyappearif theymeettherequiredcriteria.

    Audiovisualworksincludingfictionalcharacters(films,videogames,photographs,film framesorstills)will,asawhole(imageandsoundtrack),generallyenjoycopyrightprotection iftheymeettherequiredcriteria.Thiswillbeallthemoreprobablesinceaudiovisual fictionalcharacterswilloftenhavestartedlifeasdrawings(storyboardsorstripcartoons)or beendescribedinaliterarywork.Copyrightprotectionmayextendtotheindividualvisual attributesortothephysicalorpictorialappearances(costumes,disguisesormasks)ofa fictionalcharacter.

    RealPersonsTherelevanceofcopyrightprotectioninthecaseofpersonalitymerchandisingis

    limited,becausecopyrightdoesnotvestintherealpersonconcernedbutinthepersonwho createdtheworkinwhichtheessentialpersonalityfeaturesofarealpersonappear(for example,inthecaseofabiography,copyrightbelongstotheauthor;inthecaseofa sculpture,drawingorpaintingrepresentingarealperson,thecopyrightbelongstotheartist; inthecaseofafilmortelevisionseries,thecopyrightintheworkbelongstothepersonwho madeitpossiblefortheworktobemadeandwhosupervisedanddirectedtheworkofthe actors(authororfilmproducer)).However,inthelatterexample,asaperformer,anactorhas somerightsifthelawofthecountryofwhichheisanationalprovidesforperformersrights,

    orifthatcountryispartytotheRomeConventionofOctober26,1961,fortheProtectionof Performers,ProducersofPhonogramsandBroadcastingOrganizations.

    Thequestionisprobablymoredebatableinrespectofphotographicworks.Thereply willdependonwhoownsthecopyright.Inmostcasestheauthorofthephotographs(ormore accuratelyofthenegatives)willownthecopyright.Ifaphotographiscommissionedfor privateanddomesticpurposes,thecommissioningpartyhasusuallyarighttopreventthe makingofcopiesofthephotographoritsbeingshowninpublic.Afinalproblemrelatesto thecasewherethepartycommissioningtheworkisnotthepersonwhoisthesubjectofthe photograph.Inanycase,formsofprotectionotherthancopyrightareavailableforthecontrol ofthecommercialuseofphotographicworks.

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    (b) IndustrialDesigns(i) Introduction

    Industrialdesignsbelongtotheaestheticfield,butareatthesametimeintendedto serveaspatternsforthemanufactureofproductsofindustryorhandicraft.Anindustrial designcanbedefinedastheornamentaloraestheticaspectofausefularticle.The ornamentalaspectmayconsistoftheshapeand/orpatternand/orcolorofthearticle.The ornamentaloraestheticaspectmustappealtothesenseofsight.Thearticlemustbe reproduciblebyindustrialmeans,whichiswhythedesigniscalledindustrial.Ifthislatter elementismissing,thecreationwillrathercomeintothecategoryofaworkofart,the protectionofwhichisaffordedbycopyrightlawratherthanbyalawonindustrialdesigns.

    Inordertobeprotectable,anindustrialdesignmust,accordingtosomelaws,benew and,accordingtootherlaws,originalinthesensethatithasnotbeencopied.Industrial designsareusuallyprotectedagainstunauthorizedcopyingorimitationandtheprotection basedonregistrationlasts,inmostcountries,forfive,10or15years.

    Industrialdesignprotectionismainlyrelevantforcartooncharactersrepresentedinthe formofaestheticdesignsforthree-dimensionalarticleswhichmainlybelongtothetoyor costumejewelryareas(dolls,robots,puppets,actionfigures,brooches,pins)which generallyoriginateincartoons,butwhichmaysometimesrepresentrealpersons.The relevanceofdesignprotectionwillbeofimportancenotablywhencopyrightprotectionis excludedorreduced,mainlywhenacharacterhasbeencreatedwiththeintentionofbeing industriallyexploited.Furthermore,sincedesignprotectionisoftensubjecttoregistration,a designapplicationwillbehelpfultoestablishprimafacieevidenceofownershipasfromthe dateoftheapplication,althougheffectiveprotectionwillonlycommenceonthedateof registrationofthedesign.

    (ii) ProtectabilityWhilemanycountriesprovideforasystemofregistrationofindustrialdesigns,notall

    provideforthesubstantiveexaminationofthedesign(noveltyand/ororiginality);therefore, thequestionwhetheraregistereddesigneffectivelymeetsthesubstantiverequirementswill bedecidedbythecourtswhentheholderoftheregistrationexerciseshisexclusiverightin ordertostoptheunauthorizedcopyingofthedesign.That,ofcourse,leavesanuncertaintyas totheeffectivevalueofaregistereddesignwhichcancauseproblemswhen,inthecaseofa character,itisintendedtohavethesaiddesignexploitedonalargescale.Potentiallicensees mayhesitatetonegotiateanagreementinrespectofadesigntheregistrationofwhichcanbe cancelledatanytimefollowingacourtactioninitiatedbytheownerofapreviousidenticalor similardesign.

    Inmostcountries,designswhichdonotcreateanaestheticimpressionbutwhichcan onlybedescribedaspurelytechnicalorfunctionalinnovationswillnotbeeligiblefor registrationasdesigns.Iftheyfulfilltherequiredconditions,theymayqualifyforutility modelsprotection,ifavailable,orforpatents.

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    (c) TrademarksandServiceMarks(Marks)(i) Introduction

    Since1945,theunprecedenteddevelopmentofinternationaltradehasledtoeven greateruseofmarksinallcountriesandinallfieldsofactivity.Althoughoneisnotalways awareofthefact,markstodayassumeaconstantlyincreasingplaceinday-to-daylife,since oneentersintocontactwithahostofmarks,notonlyinsupermarketsandpublicplaceswhere oneisfacedwithposters,butalsointhepress,onradioandontelevision,mediathatactually enterthehome.

    Amarkisasymbolwhichisintendedtoindicatewhoisresponsibleforthegoods placedbeforethepublic.Theremaybemanymakersorsellersofthesamegoods,andthey mayallusedifferentmarks.Marksenabletheconsumertochoosebetweengoodswithout actuallyknowingwhoholdsthemark.Theconsumerswilldistinguishbetweenthegoodsof competingtraderssolelybymeansoftheirmarks.Forthattobepossible,themarksshould notonlybedifferentfromeachother,butalsobeclearlyrecognizable.Inotherwords,marks shouldbedistinctive.

    Marksmaytakemanyforms.Theymayconsistofasingleletterornumeral,usually presentedinsomefancifulororiginalmanner.Attheotherextreme,awholesentence,or slogan,maybeusedasamark.Manymarksconsistofpictorialdevices,withoutanywords atall.Quiteafewmarksconsistofacombinationofwordsanddevices,perhapsonalabel attachedtothegoods.Somemarksaremadeanintegralpartofthegoods(forexample,the specialformofabottle,oraspecialmoldingaroundtheneckofabottle),whichmeansthat marksmaybethree-dimensional.

    Marksarenotlimitedtocoveringgoodsbutmayalsocoverservices,inwhichcasethey arereferredtoasservicemarks.Thelatterareused,forexample,byhotels,restaurants, airlines,touristagencies,carrentalagencies,laundriesandcleaners.

    Amarkservesseveralpurposes.Fromtheviewpointofthepersonwhoisinterestedin buyinggoodsorusingservices,itservesthepurposeofguidinghiminhisdecision.Sucha decisionisbasedontheexpectedpropertiesofthegoodsorservices.Inotherwords,oneof thefunctionsofamarkistoconveyafeelingofacertainquality.Asecondfunctionisto allowthemanufacturerofthegoodstoidentifythemoncetheyarenolongerinitsorhis possessionbutalreadyinthehandsofothers,suchasdistributors.Athirdfunctionofthe markistoenabletheauthoritiesresponsibleforcontrollingthequalityofthegoodssoldor

    theservicesrenderedunderit,aswellasanyotherentityorperson,toidentifytheholderof themark,sincemostcountrieskeeparegisterinwhichallregisteredmarksarerecorded. Lastly,itisoftensaidthatthemainfunctionofamarkistodistinguishthegoodsorservices ofoneentityfromthegoodsorservicesofanothersimilarkindofentity.

    Incomparisonwithotherintellectualpropertyrights,oneofthemainadvantagesof marksisthattheownerofamarkmayenjoyanexclusiverightforanunlimitedperiodof time.

    Itshouldalsobenotedthatthereisnorestrictiononthecumulationofrightsinrespect ofbothtrademarksandworkswhichmaybeprotectedbycopyright.Evenifacopyrighthas expired,theownersofcopyrightinawork(orholdersofaneconomicrightfollowinga

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    transfer)can,formerchandisingpurposes,ensurethatseparateelementsofawork,suchasits title(whichmayatthesametimebethenameofafictionalcharacter)ortheappearanceor imageofcharacters(which,assuch,mayormaynotbeprotectedbycopyright),arethe subjectofanapplicationforgoodsand/orforservices.Asfortherelationsbetweenindustrial designsandtrademarks,theremaybepossiblelimitationsresultingfromthedoctrineof aestheticfunctionality.

    Traditionally,anapplicationtoregisteramarkwilleitherbedeclaratoryorattributiveof

    rights.Incountrieswhereanapplicationisdeclaratoryofrights,itmayservetoreinforcean alreadyexistingprotectionofthemarkbasedonitseffectivecommercialuse.Incountries whereanapplicationisattributiveofrightsandwhere,inprinciple,prioruseofamarkhasno effect,theapplicationservestoestablishtherightinthemark.

    Aslongasamarkfulfillsthevariousconditionsforregistration,mostoftheimportant essentialpersonalityfeaturesofafictionalcharacterorofarealpersoncanberegisteredasa mark.Forexample,thenameofafictionalcharacter(Snoopy,theGremlins,JamesBond, Tarzan)orthenameandsignatureofarealperson(CatherineDeneuve,ZinoDavidoff)orthe appearance,whetherintheformofadrawingorphotograph,ofafictionalcharacterorreal person.

    Itshouldfinallybeemphasizedthatamarkdoesnotprotecttherightsinthefictional characterorthepersonalityperse,butonlytheirembodimentinadistinctivemark,usuallyin relationtothegoodsorservicesforwhichthemarkisregistered.

    (ii) ProtectabilityTheessentialpersonalityfeaturesofafictionalcharactermay,undercertainconditions

    (mainlyofasubstantivenature)beregisteredasmarks.Asregardstheessentialpersonality featuresofarealperson,thequestionseemsmoredebatable,mainlywithrespecttotheimage (portrait).Inthecontextofmerchandising,thetrendhasbeentoadoptstagenamesand personalizedlogoswhichmaybemoreeasilyregistrable(forexample,inthepopmusicarea, suchstagenamesastheBeatlesandtheRollingStoneswiththeirrespectiveAppleand TongueandLiplogos).Anotherwayforarealpersontoprotecthisnameistoobtain registrationofthenicknamebywhichheisknown(forexample,intheUnitedStatesof America,thefamousfootballplayerElroyHirsch,knownasCrazyLegs).

    Incountrieswhererightsonlyresultfromregistration,themainimpedimenthoweveris

    thetimeneededtoobtainregistrationbecause,inthecontextofmerchandising,delaysshould beasshortaspossiblesincethepublicsrecognitionofmanycharacters(suchasE.T., DickTracyorBatman)andtheirpopularityareoflimitedduration.However,therearesome exceptionssuchasthecartooncharactersofWaltDisneyortheliterarycharactersof BeatrixPotter.

    Someoftheconditionsofformtobemetbyamarkwhichisthesubjectofan applicationwillhaveanimportantimpactinthecontextofmerchandising.Oneofthose conditionswhichexistsinafewcountriesconcernstherelationwhichshouldexistbetween thegoodsorservicestowhichthemarkappliesandthebusinessoftheownerofthemark. Generally,neitheramerchandisingagencynorthecreatorofacharacterwillthemselvesbe engagedinthemanufactureormarketingofsecondaryproducts,anditwillthereforebe

    http:///reader/full/be%1Aas%1Ashort%1Aas%1Apossible%1Asince%1Athe%1Apublic%E2%B3%9Arecognition%1Aof%1Amany%1Acharacters%1A(such%1Aas%1AE.T.,http:///reader/full/be%1Aas%1Ashort%1Aas%1Apossible%1Asince%1Athe%1Apublic%E2%B3%9Arecognition%1Aof%1Amany%1Acharacters%1A(such%1Aas%1AE.T.,
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    difficultforthemtoacquiretrademarkrightsinafictionalcharacterbecausetheywillnot themselvesbedealingwiththegoodsorservices.Furthermore,theactivitycarriedoutbya licenseewillnotbeconsideredasbusinessgeneratedbythelicensor,unlessthelatter becomesjointownerofthelicenseesbusiness.

    Themoderntrendismorefavorablehowever,sinceitismoreandmorewidely

    recognizedthatamarkcanbeappliedtoanunlimitednumberofgoodsorservices, independentlyofthetrueactivityoftheapplicantbutnotwithstandingtheprovisionswhich mayexistwithrespecttothenon-useofaregisteredmark.

    Inviewoftheaestheticfunctionalitydoctrine(mainlyinthetoyordollarea)orthe primarilyfunctionalexternalappearanceofgoods,three-dimensionalconfigurationsof goods(appliedforintheformoftwo-dimensionalgraphicrepresentations)areinprinciplenot acceptedforregistrationastrademarksinmanycountries,exceptwherethetrademarkhas acquiredsecondarymeaninginconnectionwiththegoods.

    Furtherconditionsareofasubstantivenature.Oneofthemainconditionsisthatamark shouldbedistinctive,inotherwords,neithergenericnordescriptiveinrespectofthegoodsor servicescovered.Furthermore,amarkshouldnotbemisleading(capableofdeceivingthe public)orcontrarytopublicorderormorality.

    Insomecountries,however,distinctivenessaloneisnotsufficientandthepersonality featuresofafictionalcharacterwillberegistrableasmarksonlyiftheyhaveacquireda secondarymeaning.Inothercountries,theacquisitionofasecondarymeaningcanremedy theinherentlackofdistinctivenessoftheessentialfeaturesofafictionalcharacter.

    Anumberofcountrieshaveamorefavorableapproach,andmostnamesand appearancesoffictionalcharactersareconsideredfancifulandthereforesufficiently distinctive.

    Asregardstheessentialfeaturesofarealperson,thelatter,orthepersonorentity entitledtoactinhisname,mayobtaintheregistrationofhisnameorappearanceasamarkin somecountries.However,whereasurname(whichcanalsobeatradename)isregisteredas amark,theexclusiverightoftheholdermaybelimited,sinceotherpersonsbearingthesame namemay,undercertainconditions,continuetousetheirnames,unlesstheregisteredmark concernsawell-knownpersonalityand/ortradenameandtheotherpersonsintendtotake advantageofthereputationoftheregisteredmarkbyparasiticmeans.

    Afurthersubstantiveconditionrelatestoexistingpriorrights.Theapplicablelawsdo notgenerallyprovideforanobligationonthepartoftheapplicanttocheckwhetherthemarks appliedforpossiblyconflictwithpriormarks,registeredorappliedfor,orotherunregistered priorrights.

    Thesafeguardingofholdersofconflictingpriorrightsisdealtwithinvariousways whichcanbecombined;attheapplicationstage,thecompetentauthoritymaycheckwhether themarkappliedforisidenticalorsimilar(inrespectofthegoodsorservicescovered)to priorregisteredrights(ingeneral,marks);oncetheapplicationhasbeenpublishedor registered,acertainperiodmaybeallowedduringwhichanypersonmayopposethe registrationofamarkonthebasisofpriorrights(registeredorunregistered);finally,oncea markhasbeenregistered,invalidationproceedingsmaybebroughtbeforeacompetentcourt.

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    Mostlegislationwillcontainprovisionsrelatingtotheeffectiveuseofamark.Itmay sometimesbeprovidedthatanapplicantoraholdershould,bymeansofastatementor declaration,provetothecompetentauthoritythatthemarkisbeingused(excludingtokenor ornamentaluse)atthetimeoftheapplication(asaconditionforregistration),atregular intervalsafterregistrationandatthetimeofrenewal.Furthermore,mostcountriesprovide thatanypersonmayrequest,beforethecourt,thatagivenregisteredmarkshouldbetotallyor

    partiallyinvalidatedandremovedbecauseofnon-use.Invalidationofaregistrationwillonly bedeclarediftherehasbeennouseduringacertainperiod(generally,fiveyearsafterthe completionoftheregistrationprocedureorduringanuninterruptedperiodoffiveyears). Generally,thenon-useofthemarkwillnothavetobeprovedbythepersonwhorequested invalidationbutbytheholderoftheregistration.Furthermore,theholdermayestablishthat becauseofforcemajeure,hehasbeenunabletousethemark.Theuseshouldingeneralbe genuineandshouldnotmerelyconsistinpromotionaluseonancillarygoodsordecorative use.Finally,theusemadebyauthorizeduserssuchaslicenseesormerchandisersis consideredasuseofthemarkmadebyitsholder,aprovisionwhichismostrelevantto holdersengagedinmerchandisingprograms.

    (d) UnfairCompetitionArticle10bisoftheParisConventionfortheProtectionofIndustrialProperty

    (applicableto127memberStates)readsasfollows: (a) ThecountriesoftheUnionareboundtoassuretonationalsofsuchcountries effectiveprotectionagainstunfaircompetition. (b) Anyactofcompetitioncontrarytohonestpracticesinindustrialorcommercial mattersconstitutesanactofunfaircompetition. (c) Thefollowinginparticularshallbeprohibited:

    (i) allactsofsuchanatureastocreateconfusionbyanymeanswhateverwith theestablishment,thegoods,ortheindustrialorcommercialactivities,ofa competitor;(ii) falseallegationsinthecourseoftradeofsuchanatureastodiscreditthe establishment,thegoods,ortheindustrialorcommercialactivities,ofa competitor;

    (iii) indicationsorallegationstheuseofwhichinthecourseoftradeisliableto misleadthepublicastothenature,themanufacturingprocess,thecharacteristics, thesuitabilityfortheirpurpose,orthequantity,ofthegoods.

    Atfirstglance,thereseemtobebasicdifferencesbetweentheprotectionofindustrial propertyrights,suchasregisteredindustrialdesigns,registeredmarks,etc.,ontheonehand, andprotectionagainstactsofunfaircompetitionontheother.Whereastitlesofindustrial propertysuchasmarksaregrantedonapplicationbyindustrialpropertyofficesandconfer exclusiverightsinrespectofthesubjectmatterconcerned,protectionagainstunfair competitionisbasednotonsuchtitlesbutontheconsiderationeitherstatedinlegislative provisionsorrecognizedasageneralprincipleoflawthatactscontrarytohonestbusiness

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    practicesaretobeprohibited.Nevertheless,thelinkbetweenthetwokindsofprotectionis clearwhencertaincasesofunfaircompetitionareconsidered.Forexample,inmany countries,unauthorizeduseofamarkthathasnotbeenregisteredisillegalonthebasisof generalprincipleswhichbelongtothefieldofprotectionagainstunfaircompetition(in severalcommonlawcountriessuchunauthorizeduseiscalledpassing-off).

    Theaboveexampleshowsthatprotectionagainstunfaircompetitioneffectively supplementstheprotectionofindustrialpropertytitles,suchasregisteredindustrialdesigns andregisteredmarks,incaseswhereadesignorasignisnotprotectedbysuchatitle.There are,ofcourse,othercasesofunfaircompetition,suchasthefalseallegationsinthecourseof tradeofsuchanatureastodiscreditacompetitor,referredtoinArticle10bis(3)2oftheParis Convention,inwhichprotectionagainstunfaircompetitiondoesnotperformsucha supplementaryfunction.Thisisduetothefactthatthenotionofunfaircompetitioncoversa widevarietyofacts.

    Thelegalbasisfortherepressionofunfaircompetitioncanrangefromasuccinct generaltortprovisiontodetailedregulationinaspecialstatute.Insomecountrieswitha civil-lawtradition,whichfollowtheapproachconsistingintheprotectionofthehonest businessman,suchprotectionisusuallytobefoundinthegeneraltortprovisions.Inother countrieswithcommonlawtraditions,theactionforpassing-offdevelopedbythecourts(at leastoriginally)remainsthemainbasisfortheprotectionofcompetitors.Asforthe protectionofconsumers,anumberofcountrieshave,inaddition,enactedseparatesetsof lawsregulatingspecificcasesofundesirablemarketbehavior,suchasmisleadingadvertising, thoselawsbeingessentiallyindependentoftheprotectionofcompetitorsundercivilor commonlawprinciples.Severalcountrieshaveenactedspecialstatutesorspecificprovisions withinbroaderstatutes,dealingwiththeprotectionagainstunfaircompetition.Thesestatutes provideforcivilorcriminalsanctionsandcontainabroadgeneralprovision(oftenmodeled onArticle10bis(2)oftheParisConvention)whichissupplementedbydetailedprovisionson specificformsofunfairtradepractice.Althoughmanyofthesecountrieshavealsopassed additionallegislationconcerningactsrelatingtocertainproducts(food,drugs,etc.),themedia (television)ormarketingpractices(gifts,bonuses),thestatuteagainstunfaircompetition remainsthemainbasisforprotection.Oftenitsscopeismadeevenbroaderbythe assumptionthattheviolationofanyotherlawcanbeanunfairtradepracticebecauseitgives anundueadvantageincompetitionagainstthelaw-abidingcompetitor.Insomecountries, moreover,theconceptofaspeciallawoncompetitionhasevolvedtowardstheadoptionofa moregenerallawonmarketbehavior,orthelinkwithantitrustlawisstressedbythe enactmentofstatutesthatdealwiththeinstitutionofcompetitionitselfaswellaswith fairnessincompetition.

    B. OTHERFORMSOFPROTECTIONManycountrieshaveenactedprovisions,eitherundergenerallaw(Constitution,Civil

    Code,etc.)orunderspecificstatutes,whichenablearealpersonassuchtobeprotected againsttheunauthorizedcommercialoradvertisinguseoftheessentialfeaturesofhisorher personality(name,pseudonymornickname,image,symbols,etc.)orarealrecognizable personportrayingacharacteragainsttheunauthorizedcommercialoradvertisinguseofthe essentialfeaturesofthecharacterportrayed.Thoserightswill,ingeneral,supplementthe protectionwhichmaybeavailablewithinthescopeofintellectualpropertyinitsbroadest sense(includingmarks,industrialdesigns,copyright,unfaircompetition).Suchprotection

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    maybeachievedthroughthenotionsofdefamationorlibel,privacyrightsandpersonalityor publicityrights.

    V. SCOPEOFPROTECTIONA. RIGHTSCONFERRED

    (a) CopyrightItshouldfirstbenotedthatthedateofeffectivecommencementofprotectionwillnot

    resultfromanofficialdocumentasisthecaseinotherfieldsofintellectualproperty,butwill havetobeprovedbythepersonorentityinvokingcopyrightprotectionofawork.Generally, copyrightprotectionstartsonthedateofcreationofthework,theconceptofcreation meaningthattheworkshouldnotbeatthestageofamereideabutshouldbeexpressedina materialform(writings,drawings,etc.)or,inotherwords,shouldhavefoundsufficient expression.

    Afurthercharacteristicofcopyrightprotectionisthat,contrarytoindustrialproperty rightssuchasmarksorindustrialdesigns,aworkenjoyingcopyrightprotectionisprotected againstallunauthorizeduses,irrespectiveofthegoodsorservicescoveredbyeachuse.

    Generally,noonemay,withouttheauthorizationoftheownerofthecopyrightina work,exercisetheeconomicorexploitationrightsinthatworkorinrespectofaworkwhich issubstantiallysimilartothecopyrightedworkorwhichcontainstheessentialcharacteristics ofsuchawork.Themaineconomicrightsrelevanttothemerchandisingofcharactersarethe rightsofreproduction,adaptationandcommunicationtothepublic(includingbroadcasting andpublicperformance),inanymannerorform.Inthatrespect,protectionmayextendtothe useoftheworkinadifferentmediumorinadifferentdimensionortopromotionaluse.

    Eveniftheauthororcreatorofaworkprotectedbycopyrighthastransferredhis economicorexploitationrights,hewillalwaysbeentitledtoexercisehismoralrights,which arenon-assignableandinalienable.However,insomecountriesmoralrightscanbewaived bytheauthor,allowingactswhich,otherwise,wouldconstituteinfringement.Asregardsthe durationofprotectioninrespectofmoralrights,thelawsofsomecountriesprovidethatthey willnotbemaintainedafterthedeathoftheauthororcreator,whileotherlawsprovidethat theywillenjoythesamedurationofprotectionastheeconomicorexploitationrights,andstill

    otherlawsprovidethatthedurationofmoralrightsisunlimitedintime.

    Oneofthemostimportantmoralrightsrelatestorespectfortheintegrityofawork. Thecourtshaveoftenconsideredthat,inthecaseofadaptationofaworkorinthecaseof reproduction,thehonororreputationoftheauthororcreatorcouldbeprejudicedifthe originalworkweredistorted,mutilatedorotherwisemodifiedoraltered.Inthecaseof adaptation(forexample,fromanovelorshortstorytoamovieortelevisionseries),whilea certainfreedomshouldbeauthorized,theauthororcreatoroftheoriginalworkshouldbeable torecognizeinthescriptofthemovie ortelevisionseriesresultingfromtheadaptationthe essentialpersonalityfeaturesofthefictionalcharactershehascreated.However,whereno authorizationofadaptationhasbeengivenbytheoriginalcreator,therightofintegritymay notberecognizedinthecaseofparodiesorsatiresonawork(forexample,thecaseofa

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    cartoonfilmentitledTarzoon,theShameoftheJungle).

    (b) IndustrialDesignsTheeffectiveprotectionofanindustrialdesigngenerallystartsonitsregistrationdate.

    Furthermore,aregisteredindustrialdesignwillenjoyprotectionforalimitedperiodoftime (theaverageperiodbeing15years).Oncethatperiodhaselapsedtheindustrialdesignwill fallinthepublicdomainandmaybeusedbyanybodywithoutauthorization,unlesstheowner ofthedesigncan,forthesamearticle,availhimselfofalongerformofprotection(copyright orregisteredmark).

    Aproductincorporatingadesignwillconstituteaninfringementifitisidenticalor similartoaproductincorporatingaregistereddesign.Thecourtsofmostcountrieswill examinewhetherinfringementexistsonthebasisoftheordinaryperson(averagepotential customer)testandofacomparisonoftheoverallappearanceoftheproductcoveredbythe registereddesignandoftheallegedinfringingproduct.

    (c) MarksTheownerofaregisteredmarkwillbeentitledtopreventallthirdpartiesnothavinghis

    consentfromcarryingout,generallyinthecourseoftrade,anumberofacts(usinganother markoranothersign)whichareconsideredinfringementsoftheregisteredmark.Therightto preventunauthorizeduseofaregisteredmarkisdeterminedbythegoodsand/orservicesfor whichitisregistered(principleofspecificity).Insomecountries,theserightsofownership extendtomarkswhichareusedalthoughnotregistered.

    Thegeneralscopeofprotectionofaregisteredmark(whichisnotconsideredfamousor well-known)coverstheunauthorizeduseofasign(mark,tradenameorother)whichis identicalorsimilartotheregisteredtrademarkinrespectofidenticalorrelatedgoodsand/or services.Wheretheuseconcernsasignwhichisidenticaltotheregisteredmarkandcovers thesamegoodsorservices,thecourtswillconsiderthatinfringementexistswithout examiningwhetherthereisalikelihoodofconfusion,which,onthecontrary,willberelevant inthecaseofsimilarmarksforrelatedgoodsorservices.Extendedprotectionmaybe availableincasesofdilution,inparticular,whereamarkhasgainedahighreputation.

    Generally,inaninfringementcase,itisnotthedifferencesbetweentwotrademarksbut theirsimilaritieswhichhavetobetakenintoaccount.Moreover,itisconsideredthatthere maybeavisiblesimilarityoranaudiblesimilarityinthelanguageofthecountrywherethe markistobeprotected.Asregardssimilarityinrespectofthemeaning(intellectual similarity)possibilitiesofconfusionhavebeenrecognized(forexample,betweenanemblem representingajaguarandthenamejaguar,betweenthewordsCogitoergosumandthe marksCogitoandCogitumorthewordsTheseriouscowwitharepresentationofthe animalbeingseriousandthemarkThelaughingcowwiththerepresentationofalaughing cow).Finally,thestrengthordegreeofdistinctivenessoftheregisteredmarkwillalsobe takenintoaccount.

    Withrespecttothesimilarityofgoodsorservices,severalconceptsareapplied,suchas thenotionofequivalenceinthenatureandpurposeofthegoodsorservicesconcernedor

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    thequestionwhethertheaverageconsumerwouldassumethesamesourceororiginforthe goodsorservices.Manycountriesrecognizethatthescopeofprotectioncoversgoodsor serviceswhicharenotlistedintheregistration,providedthattheyaresocloselyrelatedtothe listedgoodsorservicesthatconfusionmayarise.Intheapplicationofthisrule,many countriestakeintoaccounttheextentoftheuseoftheprotectedmarkandthesizeofthe enterpriseoftheownerorholderofthemark:thebiggertheenterpriseandthemore

    extensivetheuseofthemark,thelargerthescopeofprotectionasregardsthegoodsor services.

    Asregardstheconceptofuseofamark,useforcommercialpurposeswillmeanthatat leastthefollowingactswillbeprohibited:affixingthesigntothegoodsortothepackaging thereof;offeringthegoods,orputtingthemonthemarketorstockingthemforthose purposesunderthatsign,orofferingorsupplyingservicesthereunder;importingorexporting thegoodsunderthesignandusingthesignonbusinesspapers.

    However,limitationsorexceptionstothescopeofprotectionofaregisteredmarkmay exist.Threedifferenttypesoflimitationcanbementioned,namely,theuseofonesown nameandothernecessaryindications,theexhaustionoftrademarkrightsandthe consequencesoftolerance.

    Therearecaseswherethescopeofprotectionofaregisteredmarkmayextendto differentgoodsorservices,goingbeyondwhatisrequiredinArticle6bisoftheParis Conventionwhichisapplicabletoidenticalorsimilargoods.Theextendedprotectionis generallyrecognizedwhentheuseofasignonnon-similargoodsorservicescausesprejudice totheownerofthemarkortakesunfairadvantageofthereputationofthemark.Thepurpose istoaffordprotectiontomarkswhichhavereachedauniquedistinctivenessandreputation andthereforeadvertisingforceagainstthedilutionoftheircommercialmagnetismthrough theuseofidenticalorsimilarsignsormarksondissimilargoodsorservices. B. ENFORCEMENTOFRIGHTS;MEASURESANDREMEDIES

    (a) IntroductionInthecontextofthemerchandisingoftheessentialpersonalityfeaturesoffictional

    charactersandrealpersons,anylegalformofprotectionwouldremainfutileifappropriate measuresfortheenforcementoftheprotectionwerenotavailable,notonlyfortheoriginal ownerofarightbutalso,inmostcases,fortheassigneeorlicenseewhoisactuallyengaged inthemerchandisingactivity.Merchandisingwouldnothavegrownsorapidlyinrecent decadesifnoeffectiveremedieshadbeenavailabletobartheunlawfulcirculationofgoods bearing,forexample,thereproductionofthemostfamouscartooncharactersofWaltDisney.

    Inmostcountriesthereexist,dependingontheformofprotectionandthelegaltradition ofeachcountry,civilsanctionssuchasmeasuresinvitingthepotentialinfringertorestrain frominfringingacts(injunctions)ormeasurespermittingtherecoveryofcompensationfor damages,criminalsanctionsandmeasuresallowingevidenceofunfairactstobeobtained (discoveries).

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    (b) CivilSanctions(i) Injunctions

    Inpractice,mainlyincommonlawcountries,themostimportantsanctionisinjunctive relief,whichcanbefinalbutfrequentlytakestheformofapreliminary(orinterlocutoryor interim)injunction.Thiscivilremedywillbeavailableirrespectiveoftheformoflegal protectionofthecharacter.

    PreliminaryInjunctionThisformofremedy,whichwillbeavailabletoaplaintiffifhehasnotdelayed

    requestingitafterhavingdiscoveredaninfringingorunfairact,allowstheacttobestopped, althoughitmaynotbeeasyatthattimetoproveactualdamage.Generally,apreliminary injunctionrestrainingthedefendantfromimmediatelyperformingacertainactwillbegranted totheplaintiffifthecourtconsiders,withouthavingtoassessthemeritsofeachpartys respectivecase,thatthereisaseriousquestiontobetried.Theadvantageofapreliminary injunctionisthatitmaybesoughtforinfringingorunfairactsthatarelikelytobecommitted orcontinuedandthatitrequiresnoproofofeitherintentionorbadfaith.Themeritsofacase willbeexaminedinordertodecidewhetherapreliminaryinjunctionshouldbegrantedor whetherdamageswouldbeconsideredasconstitutingmoreappropriatecompensationifthe defendantiscapableofpayingthem(aninjunctionbeingrefusedwhereitisconsidered adequatetocompensatetheplaintiffthroughthepaymentofdamages).

    Inthecontextofmerchandising,thegrantofapreliminaryinjunctionwilleffectively determinethefinaloutcomeofacase,asthedefendantwillnotbeinterestedin recommencingtradingunderstyleshehashadtodiscontinueusingformanymonths. FinalInjunction

    Acourtisfreetodecidetograntafinalinjunctionbut,generally,wheretheinfringing actisproved,itwillbegrantedunlessitisdecidedtoawarddamages.Furthermore,afinal injunctionmayberefusedifthedefendantcansatisfythecourtthatthereisnochanceofthe tortbeingrepeated.

    (ii) AccompanyingMeasuresThosemeasuresmaybeavailablebothincountrieswhichgrantinjunctionsassuchand

    inthosewhichdonot.Inanycase,acourtorderprohibitingthecontinuationofaninfringing actmaybeaccompaniedbysomeorallofthefollowingmeasures:ifapplicable,anorderto cancelapplicationsorregistrationsinrespectofcopyright,industrialdesigns,marksortrade names;anordertoerasemisleadingorconfusingindicationsfromlabels,packaging, advertising,businessorpromotionpapers,etc.;anordertowithdrawtheinfringinggoods fromthemarketorstoprenderingtheinfringingservicesinthemarket;anordertodeliverup and/ordestroyunlawfulgoodsoradvertisingorpromotionalmaterial;anordertodisclosethe sourceofsupplyoralistofcustomers;insomecountries,anordertodestroythetoolsused tomanufacturetheinfringinggoods.

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    Allthoseaccompanyingmeasuresareusuallylefttothecourtsdiscretion,sincethey havetobecommensuratewiththeextentoftheinfringingactineachgivencase.

    (iii) DamagesCompensationfordamages(inthesenseofdetrimentorinjury)isavailableinevery

    countryand,inthecontextofmerchandising,whether itrelatestoafictionalcharacterora realperson.

    Ingeneral,themostcommonlyclaimeddamagesarelostprofitsandthedamagedone bydisordercausedontheplaintiffsmarket.Inthecaseoftheviolationofanintellectual propertyright(copyright,markorindustrialdesign)andindirectcasesofpassing-off, damagesshouldbeassessedtocompensatetheplaintiffforthedirectandnatural consequencesofeachinfringingsale.Afictitiouslicensefeemaybepaidbythedefendant, whichshouldbeequivalenttowhatalawfullicenseewouldpay.

    Inothercases,suchasthoseinvolvingsomeactsofunfaircompetitionortheviolation ofapersonalityright,damagesmayincludeasumforinjurytotheplaintiffsfeelingsor reputation.Itshouldhoweverbenotedthatinthecaseofanunfaircompetition(orpassingoff)action,acommonrequirementdeterminingcompensationfordamagesisproofoffaultor intentoratleastnegligenceorrecklessnessonthepartofthedefendant.

    Asregardstheamountofthedamagesawardedbythecourts,thiswilllargelydepend onanumberofelementssuchasthereputationofthesignusedbytheplaintiff,thefactthat theinfringingactswereparticularlymaliciousorthenumberofinfringingsales.Ifthelatter isverygreatthecourtmayconsiderthatitcannotfixtheamountofthedamageswithouta preliminaryexpertopinion.Insomecountries,itcanbesaidthattheeffectivenessofthe remedieshasgrownconsiderablysincethecourtsarereadytoawardquitegenerousfinancial compensation.

    (iv) RectificationandPublicationoftheCourtDecisionThesecivilremediesareavailableinmostcountriesattheexpenseofthedefendant(for

    example,correctiveadvertisingorpublicationofthedecisioninanumberofnewspapersand magazines).Theymaybeclaimedinadditiontorestraininginjunctionsand,inmost countries,independentlyofcompensationforactualdamages.

    (c) RighttoSue(i) InRespectofIntellectualPropertyRights

    Generally,legalproceedingstopreventthefurtherviolationofarightrelatingtoa literaryorartisticwork,amarkoranindustrialdesignwillbeinstitutedbytheholderofthe right(whetherthatholderistheoriginalowneroftherightorholdstherightfollowing transferorassignment).

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    Inthecaseofalicenseagreement,unlesstheagreementprovidesspecificallytothe contrary,anyactionrelatingtotheviolationoftherightwhichhasbeenthesubjectofthe licenseisinstitutedbytheholderoftherightwhilethelicenseeorlicenseesmayjointhe proceedingswithaviewtoobtainingremediesforhisortheirownprejudice(oftenbasedon unfaircompetition).However,insomecountries,licenseesmayinstituteinfringementactions intheirownname(forexample,iftheholderoftherightfailstodoso,notwithstandinga

    requestfromthelicensee).Furthermore,insomecountries,anexclusivelicenseewillonlybe abletoinstituteproceedingsortojoinanactioniftheagreementhasbeenproperlyrecorded bythecompetentauthorityintherelevantregistersothatthirdpartiesmaybeinformedofits existence.Inotherwords,onlyrecordaloftheagreementwillmakeitenforceable.

    (ii) UnfairCompetition(andPassing-Off)Unfaircompetitionshouldalwaysbeconsidered,notwithstandinganyotherformof

    legalprotectionwhichmayexist.Protectionagainstunfaircompetitionservesnotonlytheinterestsofcompetitors,butalsothoseofconsumersandthepublicinterest.Itisthereforeof vitalimportancetotheeffectiveoperationofunfaircompetitionlawthattherighttosue shouldnotberestrictedtocompetitors,althoughtheymaybethemostpowerfulgroupto invokethelaw.However,notallmarketparticipantsneedanindividualrighttobringan actionbeforeacivilcourt.Asanyactofcompetitionhasadirectinfluenceonthemarket situationofindividualcompetitors,atleastthatgroupcannotreasonablybedeprivedoftheir fundamentalrighttosuetheunfaircompetitor.However,inmanycountries,direct competitiverelationsarenotnecessarytobeabletosueiftheindirectconsequencesofthe unfairactwouldseriouslyaffectthepositionofotherparticipants,forinstanceonparallelor subsidiarymarkets.Thusinmostcountriesmerelypotentialcompetitiverelationswill suffice.Furthermore,whereprotectionagainstunfaircompetitionismainlybasedontortlaw, everypersonwhoseinterestsarelikelytobeharmed,andthismayincludeindividual consumers,canusuallybringanaction.Inthosecountriesnotevenapotentialcompetitive relationshipisrequired.Recentlegislationalsogivesindividualconsumersarighttosue. Still,theriskofconsiderablecostsmayoftendeterthemfromexercisingthatright.Most individualconsumeractionsarethereforebroughtunderavailableself-regulatory proceedings,forwhichthestandingrules,costsandtermsarelessdaunting.

    Alongwiththegrowingtendencyduringthepasttwodecadestoconsiderconsumer interestspartofthegoalsofprotectionagainstunfaircompetition,recentlegislationinthis fieldhasprovidedconsumerorganizationswithaseparaterighttohaveunfairactsstopped. Forexample,underArticle10teroftheParisConventionthememberStatesmustprovide

    measurestopermitfederationsandassociationsrepresentinginterestedindustrialists, producersormerchantstotakeactioninthecourtswhenactsofunfaircompetitionare committed,insofarasthelawofthecountryinwhichprotectionissoughtallowssuch actions.Withtheinclusionofcertainareasofconsumerprotectioninunfaircompetitionlaw, itshouldalsobepossibleforconsumerorganizationstoclaimlegalremediesagainst violationsinthoseareas.

    Thereareseveralalternativewaysofintroducingtherighttoinitiatecivilactions.For example,topreventapossiblemisuseofsuchrights,somecountrieshaverestrictedtheright tobringacivilsuittoorganizationsthatcanclaimtheprotectionoftheirmembersagainst unfaircompetitionastheirstatutoryaim,orareofficiallyauthorizedasconsumer organizations.Althoughactualdamagetoindividualmembersisusuallynotrequired,most

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    countrieshaverestrictedtheclaimsavailabletoconsumerorganizationstoaninjunction and/orrectificationintheareaofmisleadingadvertising.Onlyinexceptionalcasesmay organizationsclaimdamagesonbehalfoftheirmembers.

    Thepositionofotherorganizations,suchastradersinacertainbranchofindustryor professionalgroups,isfarlessuniform.Insomecountries,suchorganizationsmayhavea

    righttosueinsofarastheirstatutorypurposeisbeingseriouslyjeopardizedbytheunfairact concerned.Inothercountries,actualinjurytosomeofthemembersandthetransferoftheir rightstotheorganizationmightberequired,whereaselsewheresuchorganizationshaveno separaterighttosueatall.So-calledclassactions (actiopopularis)arenotpossibleinmanycountries.Finally,civilcourtactionscanoccasionallybeinitiatedbyauthoritiesresponsible forthecontrolofcompetitiveacts,eitherassemi-publicorgovernmentalauthoritiesorby virtueofself-regulation.

    (d) MeasurestoSecureEvidence(Discovery) (i) DescriptiveandPhysicalSeizures

    Thesemeasureswillbeavailableinanumberofcivil-lawcountries,especiallywhere thepersonrequestingtherighttoproceedwithan exparteseizureclaimsviolationofan intellectualpropertyright.Inthecaseofpersonalityrights,thejudgemayordertheseizureof itemstopreventortostoppublicationwhichinvadetheprivacyofanindividual.

    Thesemeasureswillbemostrelevanttomerchandiserssince,inpractice,theseizureof, forexample,T-shirtsunlawfullyreproducingWaltDisneycharacterswilltakeplaceonthe premisesofaretailshop,andtheretailerwilloftengiveinformationonthewholesalerofthe goodswhomhewillfrequentlycallinasguarantortobejointdefendantintheproceedings. Inmostinstances,atleastinthefieldofmarks,samplesoftheallegedinfringinggoodswill betaken.Physicalseizuresmaysometimesoccurwheretheallegedinfringingarticleisa magazineornewspaperabouttobepublished,whosetitleisidenticaltoamarkalreadyused forthesamegoods.

    (ii) AntonPillerOrderInmostCommonwealthcountriestheequitableremedyofdiscoveryisofgreat

    importanceespeciallyintheformknownasanAntonPillerorder.Thisorderismade exparte,thatis,withoutnoticetothedefendant,andpossiblyin camera.Thisenablesaplaintifftoseizetheevidenceofinfringementbeforethedefendanthashadanopportunityto disposeofit.Discoverycanalsobeused,whetherornotinconjunctionwithanAntonPiller order,tomakeapersoncurrentlyinpossessionofinfringinggoods,disclosehissupplier,or discloseinformationleadingtotheidentificationofthetortfeasor.

    TheAntonPillerorderasissuedbythecourtcanincludeprovisionsagainsttradingin certaingoods,preventthedestructionordisposalofgoods,requirethedefendanttoallowthe plaintiffslawyerandalimitednumberofotherpersonstoenterandsearchthebusiness premisesoreventheprivatehouseofthedefendant,causedocumentsorgoodstobe delivereduptothepersonsservingtheorderorthenamesandaddressesofthesuppliersof

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    thegoodsinvolvedtobedisclosed,andpreventthedefendantfrominformingthirdpartiesof theexistenceoftheproceedings.Inordertoobtainthisrelief,theplaintiffmustshowthathe hasanextremelystrongcase,andthatthepotentialdamagesclaimislikelytobevery substantial.Further,clearevidenceofthedefendantspossessionoftheinfringinggoods mustbeproducedbeforethecourt,anditmustbeshownthatthereisarealpossibilityofthe goodsbeingdestroyedordisappearingbeforeacourtaction(withbothpartiesinvolved)can

    bebrought.Fulldisclosureofallfactsknowntotheplaintiffisrequired,andalsosecurityfor damagesthatmighthavetobepaidtothedefendant.Ontheotherhand,astheAntonPiller ordercaneasilybeabused,therearestrictrequirementsforitsissue.Forexample,thenature oftheordermustbeexplainedtothepersononwhomitisserved,itmustcontainonlythe minimumprovisionsnecessarytoachieveitspurpose,andadetailedreportofthematerial takenshouldbemadebythelawyersexecutingit.

    TheadvantageoftheAntonPillerorder,incomparisonwiththeseizuresexistingin civil-lawcountries,isthatitisavailableeveninthecaseofanunfaircompetitionorpassingoffaction.Thedisadvantagehoweveristhattheplaintiffshouldhaveastrongcasetobeable toobtainthatrelief.

    (e) AcceleratedProceedingsInsomecountriesthereexistprocedureswherebyadisputebetweenpartiesmaybe

    expeditiouslyledtoadecision(suchasaprocedureforobtaininganinterlocutoryinjunction ortheactionenrfr).Ingeneral,thoseformsofprocedureareonlyappropriatewherethe factssupportingtheplaintiffscomplaintareveryclearandthereisaneedforanurgent decisionbecauseoflikelihoodofirreparabledamage.

    (f) CriminalSanctionsInthecontextofmerchandisingandinadditiontocivilactionsandremedies,therealso

    existcriminalactionsandsanctions(usuallyfinesand/orimprisonment),whichinsome countrieswillbeavailablealongsidecivilremedies.However,criminalactionsandsanctions willbeimportantonlyincaseswherecopyright,trademarkorindustrialdesignprotectionis unavailable,forexample,wherepersonalitieswishtoenforcetheirpersonalityorpublicity rights.

    VI. GENERALCONCLUSIONNotwithstandingtheavailabilityandextentofexistingformsoflegalprotection,the

    practiceofmerchandisingtheessentialpersonalityfeatures(mainlythenameandtheimage) ofafictionalcharacterorofarealpersonhasrapidlyevolvedinsomecountriesfroma subordinateactivityintoanimportantindependentsourceofrevenueandeven,insomecases, intoacivilizingforceifoneconsidersitsimpactonthepublicatlarge(andmainlyonthe youngergenerations).

    Suchoverwhelmingdevelopmentandsuccessentailsacorrespondingdegreeofpiracy, infringementandunfairpractice.Inessence,itshouldbeconsideredthat,forwell-recognized

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    fictionalcharactersorrealpersonsthatarethesubjectofimportantmerchandisingprograms andhavethereforegeneratedsubstantialgoodwill,thepossibleavenuesofreliefare reasonablyvaluable.Thesameisprobablynottrueoffictionalcharactersorrealpersonsthat havenotyetreachedpublicrecognition.

    [AnnexIfollows]

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    ANNEX

    InrelationtoAustralia,Canada,France,Germany,theUnitedKingdomandtheUnited StatesofAmericaontheonehandand,toalesserextent,Chile,India,JapanandNigeria,this

    annexfocusesonsomeaspectsofthelegalformsofprotectionwhichmayberelevantto charactersandreferstosomeimportantcourtdecisions.

    Copyright1. Recognitionofmoralrights(seereport,paragraph58) Australia(recognitionofamoralrightintheformofarighttoobjecttofalse

    attribution),Canada,France,Germany,Japan,United Kingdom,UnitedStatesofAmerica(recognitionofmoralrightsunderthe1990VisualArtistsRightsAct(includingpaintings, drawingsandprints)).

    2. Consequenceoftheindustrialexploitationofawork(seereport,paragraph65) IntheUnitedKingdom,underthe1988Act,theperiodofprotectionwillbereduced

    (from50yearsfromtheendofthecalendaryearinwhichtheauthordies)to25yearsfrom theendofthecalendaryearinwhichthearticlesembodyingtheindustriallyexploitedwork arefirstmarketed;however,articlesofaprimarilyliteraryorartisticcharactermaybe excluded.

    InCanada,nosuitmaybebroughtforcopyrightormoralrightinfringementwherea designinwhichcopyrightsubsistsisappliedtomorethan50usefularticles.Thisapplies onlytoarticlesinrelationtowhichthedesignisactuallyused.Ausefularticleisanarticle havingafunctionotherthanbeingamerevehicleforanartisticmaterial.

    InIndia,copyrightprotectiondoesnotapplytoanydesignregisteredundertheDesigns Act(1911)andthereisnocopyrightinanydesignwhichiscapableofbeingregistered,but hasnotinfactbeenregistered,thislatterrestrictionarisingonlywhenanarticletowhichthe designhasbeenappliedhasbeenreproducedmorethan50timesbyanindustrialprocess. Thenotionofdesignincludesthree-dimensionalfiguressuchasdolls.

    InJapan,althoughthecourtshavegrantedcopyrightprotectiontodesigns,sketchesor

    modelsdevisedforthepurposeofmass-producingpracticalgoods,ithassometimesbeen questionedwhetherthosedesigns,sketchesormodels