Ipr In Corporate Audits Of Av Ip.
I. Key Steps in Corporate Audits of AV IP
Inventory of Assets:
List all AV works owned, licensed, or co-produced.
Ownership Verification:
Check assignments, agreements, and contracts.
Licensing and Compliance:
Ensure proper rights are obtained for third-party content (music, footage).
Infringement Risk Assessment:
Identify potential claims from others.
Valuation of IP Assets:
Useful for M&A, collateral, or licensing negotiations.
II. Core Litigation and Audit Strategies
IP Portfolio Review:
Examine registered copyrights and trademarks; ensure renewals are up to date.
Chain of Title Verification:
Confirm that rights were properly assigned to the company.
Third-Party Clearances:
Especially for stock footage, music, or derivative works.
Infringement Analysis:
Check for both incoming claims (risk exposure) and outgoing enforcement (potential licensing revenue).
III. Case Law Analysis
Here are detailed case examples involving AV IP and corporate audits:
Case 1: MGM Studios, Inc. v. Grokster, Ltd. (2005)
Facts:
MGM sued Grokster for copyright infringement because its file-sharing platform allowed users to distribute copyrighted movies and music.
Legal Issue:
Whether a platform that facilitates unauthorized distribution can be liable for indirect infringement.
Court Analysis:
The Court emphasized intentional inducement: Grokster promoted infringement.
Corporate audits of AV IP should include monitoring distribution platforms and third-party use of copyrighted content.
Judgment:
Grokster held liable; injunctions issued.
Lesson:
✔ Audits must track third-party distribution to prevent indirect liability.
✔ Licensing compliance is critical in corporate AV IP management.
Case 2: Paramount Pictures Corp. v. Axanar Productions (2016)
Facts:
Axanar produced a Star Trek fan film and raised funds via crowdfunding. Paramount sued for copyright infringement.
Legal Issue:
Whether non-commercial fan films can infringe IP when using copyrighted characters and settings.
Court Analysis:
Copyright protects:
Characters
Storyline elements
Visual style
Even non-commercial projects can infringe if they replicate expressive elements.
Judgment:
Injunction issued; settlement reached limiting project scope.
Lesson:
✔ AV IP audits should include fan-generated content to prevent infringement.
✔ Corporate risk includes derivative works, even if non-commercial.
Case 3: ABC, Inc. v. Aereo, Inc. (2014)
Facts:
Aereo offered streaming of live TV using tiny antennas. ABC claimed copyright infringement on broadcasting content.
Legal Issue:
Does streaming content via new technology constitute copyright violation?
Court Analysis:
Court ruled that Aereo’s service amounted to public performance under copyright law.
Corporate AV audits should monitor emerging distribution platforms and streaming methods.
Judgment:
Aereo liable for infringement; shut down.
Lesson:
✔ Audits must assess technology-driven distribution risks.
✔ Corporate strategies include licensing for new platforms before use.
Case 4: Oracle v. Google (2016, API Litigation – AV Software Context)
Facts:
Google copied parts of Oracle’s Java API for Android development. Relevant to AV because media apps often rely on APIs.
Legal Issue:
Whether software interfaces can be copyrighted in AV application contexts.
Court Analysis:
APIs considered functional, but some code structure can be protected.
Corporate audits must include software licensing and use of third-party code in AV apps.
Judgment:
Supreme Court ruled in favor of Google under fair use, but litigation costs were high.
Lesson:
✔ AV IP audits must check software licensing, especially for streaming apps.
✔ Even widely used platforms can be at risk without proper IP audits.
Case 5: Warner Bros. Entertainment Inc. v. RDR Books (2008)
Facts:
RDR Books published The Harry Potter Lexicon, which contained detailed summaries and references to copyrighted works.
Legal Issue:
Whether reference guides constitute infringement.
Court Analysis:
Court held that reproducing creative expression in detail is infringement.
Corporate audits should include derivative publications and fan materials.
Judgment:
Lexicon required substantial revisions; court protected original copyrighted work.
Lesson:
✔ Corporate AV IP audits should include ancillary content, like books, apps, and companion media.
Case 6: Disney Enterprises, Inc. v. VidAngel, Inc. (2019)
Facts:
VidAngel filtered movies to remove objectionable content and streamed to users. Disney claimed copyright infringement.
Legal Issue:
Whether filtered streaming constitutes fair use or derivative work.
Court Analysis:
Court emphasized that VidAngel copied original movies without license.
Highlighted importance of licensing compliance in AV distribution.
Judgment:
VidAngel liable; service suspended.
Lesson:
✔ Corporate audits must include filtered or modified AV content to prevent infringement.
✔ Licensing risk is not avoided by modifying original works.
IV. Strategic Takeaways
Ownership & Chain of Title Verification:
Ensure all AV content is properly acquired or assigned.
Licensing & Distribution Compliance:
Monitor streaming, digital platforms, apps, and derivative works.
Derivative Work Monitoring:
Fan content, lexicons, and filtered content may still infringe IP.
Software & API Audits:
Apps, streaming platforms, and AV tech must comply with software licensing.
Emerging Technology Risk:
New distribution methods (streaming, blockchain, AI) should be included in audits.
Conclusion:
Corporate audits of AV IP are crucial for mitigating litigation risk, ensuring compliance, and safeguarding revenue streams. The cases above show that copyright, licensing, derivative works, and technology platforms are the main risk areas.
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