Saturday, July 5, 2008

ANHEUSER-BUSCH, THE PRIDE AND PILLAR OF ST. LOUIS, MISSOURI, CONTINUES TO FIGHT $46.3 BILLION TAKEOVER BY BELGIAN BREWER INBEV

Anheuser-Busch, the pride of St. Louis, Missouri, and a 50% holder of the domestic beer market, with an equally impressive share of international beer sales, is fighting to maintain control of the century-old, family-legacy business. However, as a public company, and as news insiders have suggested, even Anheuser-Busch is vulnerable to a takeover. [See ipeb Sunday July 13 article for new details]

On June 11, Belgian Brewer InBev, a huge international beverage-provider in its own right, made an unsolicited $65 per share offer for Anheuser-Busch, which the Anheuser-Busch board of directors are prepared to reject, cnnmoney.com reports.

In response, on June 26, InBev announced that it had filed a lawsuit in Delaware Chancery Court, where Anheuser-Busch is incorporated, to have Anheuser-Busch shareholders remove board of director members who oppose the sale.

It goes without saying, that the tight-knit, St. Louis community is vehemently opposed to the takeover. Not only does Anheuser-Busch employ 6,000 workers in the St. Louis area, but it is instrumental in philanthropy, education, cultural development, and community out-reach in St. Louis.

For a look at Anheuser-Busch go to (Anheuser-Busch Companies).

Here is the cnnmoney.com article referenced above (InBev makes hostile move in Anheuser-Busch takeover) and another article from NPR (Anheuser-Busch Takeover Talk Shakes St. Louis).

AS STARBUCKS CUSTOMERS KNOW, STARBUCKS HAS A RECORD LABEL; WHAT'S UP WITH STARBUCKS' HEARMUSIC LABEL, AND ITS OTHER ENTERTAINMENT IDEAS?

Starbucks Hear Music label is responsible for all the nicely packaged music that coffee-drinkers find on stands and shelves in Starbucks coffee outlets. As the hearmusic.com site says, Starbucks Hear Music is the "Sound of Starbucks."

The alternative record label, founded in 1990 and acquired by Starbucks in 1999 for $8 million, has found Grande success within the green and white of Starbucks. In February, the Joni Mitchell single "One Week Last Summer" from her Hear Music debut Shine, earned Mitchell the six Grammy of her career.

In addition, world music sensation Angelique Kidjo won her first Grammy in February at the 50th Anniversary Awards show, for her Razor & Tie/Starbucks Entertainment album DJIN DJIN. Also in February, among other new releases, Starbucks Entertainment and Concord Records co-released multi-platinum recording artist Kenny G's latest album, Rhythm and Romance.

The label, and other music business partnerships that Starbucks aggressively pursues, are all part of Starbucks' big-picture plan. "This is not a gimmick, and this is not an approach to take to sell more coffee," says Kenneth T. Lombard, president of Starbucks Entertainment, the unit overseeing the music efforts. "This is a firm commitment to take advantage of our unique platform to discover and acquire music."

Lombard is referring not only to the Hear Music label, but also to Starbucks' XM Satellite radio show, its 2007 partnership with Apple and iTunes, and its push in to music retailing where a Starbucks outlet is a record store first, and a coffeehouse second. Seattle, Austin, and Berkeley CA., already boast these Starbucks music retail outlets.

The exclusive partnership between Apple and Starbucks Entertainment, allows Starbucks customers to wirelessly browse, preview, buy and download music from the iTunes Wi-Fi Music Store at Starbucks. Both Starbucks and Apple feel this is a great opportunity, and are rapidly placing music kiosks in diverse Starbucks locations.

"We think this is very cool...and it is a great way for customers to discover new music." Apple CEO Steve Jobs explains. "Imagine walking in to a participating Starbucks, hearing a great song, and being able to instantly download it on to your iPod or iPhone."

The 2008 roll out of iTunes Wi-Fi Music Stores, with a debut last October in Seattle and New York, will include 350 Starbucks locations in the San Francisco Bay Area, 500 in Los Angeles, 300 in Chicago, and many other markets. The Apple/Starbucks partnership, Starbucks Coffee Chairman Howard Schultz says, is a uniques opportunity to "offer customers a world-class digital music experience."

Starbucks is doing much the same in book publishing and movies. To learn more go to (
Hear Music | The Sound of Starbucks).

APPLE COMPUTER WORKS HARD TO EXPAND ITS TRADEMARK PROTECTIONS AND BRANDING FOR THE ICONIC iPOD

On January 8, 2008, the U.S. Patent and Trademark Office granted Apple Computer a trademark for the three-dimensional shape of its iPod media player. Traditionally, trademark protections have applied primarily to names, images, logos, symbols and other two-dimensional aspects of trademarks.

More recently, however, the USPTO has granted non-traditional trademark protection for aspects of products such as color, scent, and shape. An excellent example of this, is the trademark protection provided Yamaha Motor Corp., for the arching water spray that is produced by its jet ski, as David Orozco and James Conley reported May 12, in a Wall Street Journal article on the iPod trademark.

Non-traditional trademark protection is difficult to obtain. Approval for protection, turns on convincing the USPTO that for the consumer, the three-dimensional design component is a key aspect to consumers' recognition of the product.

Accordingly, Apple needed to show that media player consumers, recognize the iPod specifically for its shape. This protection arises from the "likelihood of confusion" analysis, that trademark law embraces.

Trademark protection in this area is particularly important because trademarks can remain in effect in perpetuity, while utility and function patents expire, and may become fair-game for competitors.

In addition, trademark law allows a plaintiff like Apple to not only sue the manufacturer of an infringing product, but also the distributors of the product. This provides an additional deterrence, which may otherwise be ignored by competitors, particularly in the hugely-competitive market of mobile media players.

Here is the David Orozco/James Conley Wall Street Journal article referenced above (Shape of Things to Come) and a short article from engadget with links (Apple trademarks iPod's design).

Friday, July 4, 2008

41 YEAR-OLD SWIMMER DARA TORRES HEADS TO BEIJING OLYMPICS IN MULTIPLE EVENTS; WHEN SHE COMES HOME, MANY BUSINESS OPPORTUNITIES SHOULD AWAIT

41 year-old Dara Torres won the first of her nine Olympic swimming medals in 1984 in Los Angeles. She is now heading back to the Olympics representing the United States in Beijing, China in multiple events. The business opportunities that await her after Beijing are enormous.

Not only are her accomplishments important Olympic accomplishments, but Torres has the other components that media and advertising personnel want. While Torres is twice the age of most of her closet swimming competitors, she is also a symbol of health, beauty, and longevity.

Torres' success outside the pool, however, is not new. For one, she has a lucrative and ongoing sponsorship deal with Team Speedo, the mega-successful swimsuit manufacturer, which includes media and retail appearances. Among other deals, Torres also has a deal with Toyota to produce Dara Torres swim clinics.

Torres has also been somewhat of a media personality. As swimmingworldmagazine.com reports, Torres has provided sports commentary on NBC, ESPN, Fox Sports Net, and even as a host for USA Network’s “PGA Tour Sunday.”

She has also been a TV personality as co-host and correspondent on such top-rated programs as “Live with Regis and Kelly” and “Good Morning America.” Other television work includes “NHL Cool Shots” (ESPN), “Fox Sports Sunday”, “Inside Edition”, and the “Tae-Bo” workout videotapes, swimmingworldmagazine.com reports.

Look to see a lot more of Dara Torres this year, and beyond. Also look for her to expand her sponsorship and advertising deals outside the area of sports. Particularly likely are product deals pertaining to women's fashion, health, and beauty. Any medals in Beijing for Torres, should turn to gold.

Here is an article on Torres' recent accomplishments from the Miami Herald (Same old story for Torres) an article from NYTimes.com (Dara Torres - Profile - Olympic Swimming) and the above referenced article from swimmingworldmagazine.com (Lane 9 News).




Thursday, July 3, 2008

US DISTRICT COURT FOR SOUTHERN DISTRICT OF NEW YORK RULES GOOGLE MUST PROVIDE VIACOM WITH YOUTUBE USER ID INFO INCLUDING IP ADDRESSES

As Electronic Frontier Foundation reported July 2, 2008 (Court Ruling Will Expose Viewing Habits of YouTube Users), the United States District Court for the Southern District of New York has ruled in favor of Viacom, and against Google/YouTube, in a hugely important internet privacy case.

The district court's ruling, among other things, instructs Google to provide Viacom with YouTube user log-in information, including the user IP address (internet protocol address - your computer address), which has previously been held private.

The ruling, EFF and others suggest, is a major rebuke of the Video Privacy Protection Act (VPPA) (18 U.S.C. § 2710). The court, however, states that it dismissed Google's VPPA argument, because Google cited "no authority" to bar such disclosure of log-in information in civil proceedings.

Regardless, the NY district court ruling applies broadly to YouTube users. Quoting the district court opinion, EFF reports that the ruling applies to:

"all data from the Logging database concerning each time a YouTube video has been viewed on the YouTube website or through embedding on a third-party website."

In other words, Google must provide all log-in ID information, for all YouTube users, which includes the IP address of the user. This also includes the content, time, and duration of all video views.


Here are court documents pertaining to the case, courtesy of justia.com (Viacom v. Google litigation), as well as the July 1 order from the District Court/Southern District of New York (ordered). An appeal is certain.

Wednesday, July 2, 2008

360 RECORD DEALS; THE ALL-REVENUES RECORD DEAL HAS THE MUSIC INDUSTRY BUZZING, BUT WILL THESE DEALS BENEFIT THE ARTIST OR THE COMPANIES THAT SIGN THEM

For nearly twenty-five years Madonna had been a Warner Bros. Records recording artist. However, in October of 2007, Madonna informed the label that she was signing a new ten-year, $120 million deal with LiveNation, an international concert and theater production company.

The deal, while not the first, was certainly the biggest 360 record deal signed. LiveNation has since proceeded to sign a $150 million 360 deal with Jay-Z.

Both deals are at the instruction of new LiveNation executive Michael Cohl, now perhaps the key player in LiveNation's international development plan. Before joining LiveNation, Cohl dominated the international concert industry with impressive and creative financing of international mega-star tours, such as the Rolling Stones and U2, to name a few.

The 360 record deal is a major break from the traditional artist-label relationship. The new structuring of a 360 record deal allows the label (or companies like LiveNation) to participate in all revenue streams generated by an artist, not just record sales.

In return for more comprehensive support and budgeting, the label takes a handsome percentage of revenues that have traditionally been exclusive to the artist, such as the hugely important revenue from touring, as well as revenue from merchandising and the various forms of digital marketing.

How a 360 deal will work out for Madonna, or LiveNation, or others who sign 360 deals, is yet to be seen. As USC Thorton School of Music Professor Mark Goldstein says, in an informative interview on artistshousemusic.org, it may take "three to five years" to determine the benefits or burdens of the newly structured 360 deals.

None the less, Goldstein says, many more 360 deals will be signed in the coming months, because the big labels and international concert producers want to be the first to successfully navigate these waters.

It may follow that the big-named acts, with established touring history, and marketing history, will be the focus of 360 record deal development. It seems likely that the touring component of an artist's career, and related longevity, will be key to these 360 deals. If touring is an important revenue for the artist, than a 360 deal may be what the record company or its concert-producing competitor wants.

Here is Mark Goldstein's interview on ArtistsHouse (Are "360 Deals" Worth It?), and a good article from the MELONblog on the particulars of 360 deals (360 Deals Pt. 1).

Tuesday, July 1, 2008

ELEVENTH CIRCUIT RULES IN FAVOR OF NATIONAL GEOGRAPHIC IN IMPORTANT COPYRIGHT ROYALTY CASE AFTER A DECADE OF LITIGATION

For over a decade, the National Geographic Society has fought photographers and writers over whether it must pay additional royalties associated with the sale of its Complete National Geographic digital archive series, which it markets through its usual channels.

On Monday, June 30th, the Eleventh Circuit, in a sharply divided 7-4 decision, ruled in favor of National Geographic and against a Florida photographer whose work appeared in National Geographic magazine.

As law.com reports, 17 U.S.C. § 201(c) is the copyright statute at issue. The ruling turns on what constitutes an acceptable revision and what constitutes a new work in light of a 2001 Supreme Court landmark copyright ruling, New York Times v. Tasini.

The Court in Tasini held that publishers, like Lexis/Nexis, must get copyright permission to reprint freelance writer's articles on its database. The Eleventh Circuit ruling, distinguishes between reproduction of freelance works for a company's database and works that are reproduced in CD-ROM or DVD format.

Back-to-back rulings by the Second Circuit and now the Eleventh Circuit, favoring the National Geographic Society, will allow magazine and newspaper publishers to market their archived publications in CD-Rom and DVD format without being required to pay royalties to writers and photographers whose work appeared originally in magazine or newspaper format.

Here is the law.com article referenced above (Law.com - Legal News, Legal Technology) and the majority opinion follows ( Jerry Greenberg v. National Geographic Society).