E WO/INF/108 WIPO ORIGINAL:English DATE:December1994

WORLD INTE LLECTUAL PROPERT Y O RGANI ZATION GENEVA

CHARACTERMERCHANDISING

ReportpreparedbytheInternationalBureau1

The1992/1993ProgramandBudgetoftheWorldIntellectualPropertyOrganization(document AB/XXII/2)providesinItem04(7)thatTheInternationalBureauwill,onthebasisofthe analysisitwillhavecarriedoutin1991ontheworldsituationinrespectofthelawsapplicable tocharactermerchandising(thatis,theuseofthename,picture,voiceandstatementsofareal orfictitiouspersonalitytopromotethesaleanduseofcertainproductsorservices),prepareand publishareportonthistopic.Thepresentdocumentanditsannexesconstitutethesaidreport.

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TABLEOFCONTENTS

INTRODUCTION.............................................................................................................4

I. 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....................................................................13

A. INTELLECTUALPROPERTYRIGHTS.............................................................14

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

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

(b) IndustrialDesigns ..................................................................................................18 (i) Introduction..................................................................................................18 (ii) Protectability................................................................................................18

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

(d) UnfairCompetition................................................................................................22

B. OTHERFORMSOFPROTECTION ...................................................................23

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V. SCOPEOFPROTECTION...................................................................................24

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

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

(i) Injunctions 27 PreliminaryInjunction .................................................................................27 FinalInjunction............................................................................................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.................................................................................................31

VI. GENERALCONCLUSION..................................................................................31

ANNEXI

Copyright...........................................................................................................................1 IndustrialDesigns .............................................................................................................6 Trademarks .......................................................................................................................8 UnfairCompetition(IncludingPassing-Off) ..................................................................15 OtherFormsofProtection ..............................................................................................25 Remedies .........................................................................................................................31 RequirementsinRespectofAgreements .........................................................................32

ANNEXII

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

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INTRODUCTION

PurposeoftheStudyandQuestionstobeExamined

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) Definition

Broadlyspeaking,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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DidobyJoanna FerroneandSusanRose); cinematographicworks(suchasCrocodileDundee,KingKong,RamboorE.T.

withrespecttomovies,McGyverorColumbowithrespecttotelevisionseriesor Bambiwithrespecttomotionpicturecartoons).

Itshouldbenotedthat,inthecaseofcinematographicworks,thecharactermay,andin factoftendoesoriginateinaliterarywork(suchasthecharacterOliverTwistby Charles Dickens)orinastripcartoon(suchasthecharacterBatman).

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

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

(ii) RealPersons

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

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II. THECONCEPTOFCHARACTERMERCHANDISING

(a) Definition

Charactermerchandisingcanbedefinedastheadaptationorsecondaryexploitation,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 Mickey Mouse;

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 Lewis Carroll(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) MerchandisingofFictionalCharacters

Thisistheoldestandthebestknownformofmerchandising.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) PersonalityMerchandising

Thismorerecentformofmerchandisinginvolvestheuseoftheessentialattributes (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) ImageMerchandising

Thisisthemostrecentformofmerchandising.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. THELAWFULMERCHANDISINGOFACHARACTER

Twoofthemostimportantquestionstobestudiedrelatetotheownershipoftherights attachedtoacharacterandtotheconditionsunderwhichthemerchandisingoftheessential featuresofacharactercanberegardedaslawful.

(a) TheRightsAttachedtoaCharacter

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

Withrespecttorealpersons,therightsattachedto,interalia,thename,imageor appearanceofarealpersonmaybereferredtoaspersonalityrightsorpublicityrights. 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:

whetherthenewholderhasnolinkswiththecreatororwassetupandis controlledbythecreator;

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) RealPersons

Themeansoflawfulmerchandisingofafictionalcharactermentionedinparagraph35 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. FORMSOFLEGALPROTECTION

Apparently,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,inthecaseofawork madeforanemployer,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) Protectability

FictionalCharacters

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.

RealPersons

Therelevanceofcopyrightprotectioninthecaseofpersonalitymerchandisingis 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) Protectability

Whilemanycountriesprovideforasystemofregistrationofindustrialdesigns,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) Protectability

Theessentialpersonalityfeaturesofafictionalcharactermay,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., Dick TracyorBatman)andtheirpopularityareoflimitedduration.However,therearesome exceptionssuchasthecartooncharactersofWaltDisneyortheliterarycharactersof Beatrix Potter.

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

http:beasshortaspossiblesincethepublicsrecognitionofmanycharacters(suchasE.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) UnfairCompetition

Article10bisoftheParisConventionfortheProtectionofIndustrialProperty (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. OTHERFORMSOFPROTECTION

Manycountrieshaveenactedprovisions,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. SCOPEOFPROTECTION

A. RIGHTSCONFERRED

(a) Copyright

Itshouldfirstbenotedthatthedateofeffectivecommencementofprotectionwillnot 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 or televisionseriesresultingfromtheadaptationthe essentialpersonalityfeaturesofthefictionalcharactershehascreated.However,whereno authorizationofadaptationhasbeengivenbytheoriginalcreator,therightofintegritymay notberecognizedinthecaseofparodiesorsatiresonawork(forexample,thecaseofa

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cartoonfilmentitledTarzoon,theShameoftheJungle).

(b) IndustrialDesigns

Theeffectiveprotectionofanindustrialdesigngenerallystartsonitsregistrationdate. Furthermore,aregisteredindustrialdesignwillenjoyprotectionforalimitedperiodoftime (theaverageperiodbeing15years).Oncethatperiodhaselapsedtheindustrialdesignwill fallinthepublicdomainandmaybeusedbyanybodywithoutauthorization,unlesstheowner ofthedesigncan,forthesamearticle,availhimselfofalongerformof protection(copyright orregisteredmark).

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

(c) Marks

Theownerofaregisteredmarkwillbeentitledtopreventallthirdpartiesnothavinghis 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) Introduction

Inthecontextofthemerchandisingoftheessentialpersonalityfeaturesoffictional 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.

PreliminaryInjunction

Thisformofremedy,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) AccompanyingMeasures

Thosemeasuresmaybeavailablebothincountrieswhichgrantinjunctionsassuchand 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) Damages

Compensationfordamages(inthesenseofdetrimentorinjury)isavailableinevery countryand,inthecontextofmerchandising,whetheritrelatestoafictionalcharacterora 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) RectificationandPublicationoftheCourtDecision

Thesecivilremediesareavailableinmostcountriesattheexpenseofthedefendant(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.Protectionagainstunfaircompetitionservesnotonlythe interestsofcompetitors,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)arenotpossibleinmany countries.Finally,civilcourtactionscanoccasionallybeinitiatedbyauthoritiesresponsible forthecontrolofcompetitiveacts,eitherassemi-publicorgovernmentalauthoritiesorby virtueofself-regulation.

(d) MeasurestoSecureEvidence(Discovery)

(i) DescriptiveandPhysicalSeizures

Thesemeasureswillbeavailableinanumberofcivil-lawcountries,especiallywhere thepersonrequestingtherighttoproceedwithanexparte seizureclaimsviolationofan intellectualpropertyright.Inthecaseofpersonalityrights,thejudgemayordertheseizureof itemstopreventortostoppublicationwhichinvadetheprivacyofanindividual.

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

(ii) AntonPillerOrder

InmostCommonwealthcountriestheequitableremedyofdiscoveryisofgreat importanceespeciallyintheformknownasanAntonPillerorder.Thisorderismade ex parte,thatis,withoutnoticetothedefendant,andpossiblyin camera.Thisenablesa plaintifftoseizetheevidenceofinfringementbeforethedefendanthashadanopportunityto 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) AcceleratedProceedings

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

(f) CriminalSanctions

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

VI. GENERALCONCLUSION

Notwithstandingtheavailabilityandextentofexistingformsoflegalprotection,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.

Copyright

1. Recognitionofmoralrights(seereport,paragraph58)

Australia(recognitionofamoralrightintheformofarighttoobjecttofalse attribution),Canada,France,Germany,Japan,United Kingdom,United States of America (recognitionofmoralrightsunderthe1990VisualArtistsRightsAct(includingpaintings, drawingsandprints)).

2. Consequenceoftheindustrialexploitationofawork(seereport,paragraph65)

IntheUnited Kingdom,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,sketchesormodelsdonotfallwithintheDesignAct.

InNigeria,copyrightprotectiondoesnotapplytoartisticworksif,atthetimetheywere made,theauthorintendedtousetheworkasamodelorpatterntobemultipliedbyan industrialprocess.Suchworksshouldbeprotectedunderindustrialdesignlaw.

IntheUnited States of America,althoughinprincipleanycopyrightableworkisnot affectedbyitsprotectionunderotherlaws,inpractice,ifadesignpatentregistrationhadbeen obtainedinrespectofagivenarticle,thesamearticlewouldnotbethesubjectofacopyright

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registration.However,theoppositesituationwillnotleadtothesamesolutionand,therefore, adesignregisteredundercopyrightcanbethesubjectofadesignregistration.

InAustralia,undertheCopyrightAmendmentAct1989,figuressuchascartoon charactersusedastwo-dimensionalsurfacepatternsorornamentswillenjoyfullcopyright protection,whetherthearticlesareindustriallyexploitedornot.Theycanalsoberegistered asdesignstobenefitfromcumulativeprotection.Forworksofartisticcraftsmanshipsuchas toysordolls,industrialapplicationwillnotres