Here are TFL’s Top Stories of the Week

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This week saw the filing of a new AI-centric copyright case that will be worth keeping an eye on. Artist Jason M. Allen filed suit against the U.S. Copyright Office (“USCO”) on Thursday with the U.S. District Court for the District of Colorado. In the newly-filed suit, Allen urges the court to declare that his work, Théâtre D’opéra Spatial, is “capable of formal Copyright registration,” despite the USCO’s determination that it is not due to Allen’s use of AI, which causes the work to lack “the human authorship necessary to support a copyright claim.”


In his complaint, Allen says that he uses AI tools, such as Midjourney, to “assist in the creation of artistic works, which he displays and sells to the public.” To create Théâtre D’opéra Spatial, Allen says that he “selected the colors, the style, and the era of the artwork, and arranged the elements in the image,” and then used repeated text prompts to direct Midjourney to create an image with his exact specifications.


TLDR: “It is clear that the work was not generated by Midjourney through the mere input of a few prompts. The creative selection and arrangement of elements in the image were entirely directed by [Allen], who meticulously crafted the instructions.” Midjourney, “lacking autonomous creativity, simply executed the detailed guidance provided by Allen, [whose] extensive effort and careful direction were crucial in creating the image, far surpassing the role of the AI tool.”


– Julie Zerbo
Founder & Editor-in-Chief

New cases and litigation updates …


> Brooks v. Puma: Brooks is amping up an existing battle with Puma, filing a new patent-focused declaratory judgment action over its Glycerin sneaker collection.

 

> American Eagle v. Amazon: American Eagle claims in a new lawsuit that Amazon has “intentionally used [its] Aerie marks without authorization in search results in order to deceive consumers into believing Aerie products were available on Amazon, drive traffic to its platform, and sell competing merchandise.”

 

> Shnayderman v. Ozone Networks: NFT lawsuits aren’t dead. A proposed class action is targeting OpenSea for offering up and selling NFTs, which “are each unregistered securities.”


> MGA Entertainment v. Harris: A federal jury in California sided with companies owned by rapper Clifford (T.I.) Harris & his wife Tameka (Tiny) Harris in a trade dress infringement fight against LOL Surprise toy-maker MGA, which is on the hook for $71M.

In some recent deal-making (and other finance) news …


> LVMH will acquire a 10% stake in Double R, the investment vehicle controlled by Moncler Chairman and CEO Remo Ruffini.

> Retail technology platform Field Agent has completed a strategic growth investment round.

> Phacet, which helps businesses to build personalized AI solutions, has raised €4M in a Seed round.

> ESG analytics platform Datamaran Ltd. has raised $33M in a Series C round.

> AI legal assistant platform Jhana has raised $1.6M in a Seed round.

> AI-powered legal search engine provider Qura has raised €2.1M in a Seed round.

> Pergamin, a contract management provider, has raised €2.6M from strategic investor OnDean Forward.

Here are TFL’s top articles of the week …

1. Jury Awards Lashify $30.5M in Case Against Chinese Copycat Co.. A federal jury in Texas awarded Lashify $30.5M in lost profits as a result of Quingdao Lashbeauty Cosmetic Co.’s willful infringement of Lashify’s patents.


2. What a Lawsuit Over Counterfeit American Girl Dolls Means for Fashion Brands. A federal appeals court in New York has clarified the jurisdictional requirements for lawsuits waged against international internet-based sellers in a case that is being closely watched by companies across industries.


3. OpenAI Lands Partial Win in Trademark Lawsuit Against Same-Named Co. Open Artificial Intelligence, Inc. fell short in alleging its trademark infringement & false advertising counterclaims, according to the court.

4. Why Are Consumers Really Buying Counterfeits? A new study claims that consumers are buying counterfeits not just as a way to signal status for a fraction of the price – but also to “achieve a sense of social equality” in an increasingly divided market.


5. Italy’s Market Regulator is Probing Shein for Greenwashing. The latest scrutiny for Shein is coming by way of Italy’s competition and market regulator, which is probing an entity affiliated with the ultra-fast fashion titan for allegedly attempting to covey the false “image of production and commercial sustainability of its garments.”


6. Fashion Collaborations: Key Legal Considerations for Brand Owners.  As fashion brands increasingly expand into new territories – toys, appliances, furniture, and skincare products, to name a few – the trademark implications of cross-industry and cross-brand collaborations have become more pressing.

7. Fashion Collaborations: Additional Legal Considerations for Brand Owners. In part two of this article, we focus on two other areas of trademark law that may be affected by fashion collaborations: dilution and naked licensing.


8. What the SEC’s Case Over Keurig Recycling Claims Means for Retailers. Keurig Dr Pepper Inc. has agreed to pay $1.5 million to settle a matter waged against it by the SEC over recycling-centric advertising claims.


9. FTC v. Tapestry: A Case Over M&A in the “Accessible Luxury” Market. As the closely-watched matter plays out, we have put together a timeline of notable filings (that we will continue to update regularly) in order to help you to stay abreast of substantive developments.


10. In case you missed this PRO+ Exclusive … Deep Dive: What Can BRAT Green Tell Us About the Future of Trademark Law & Culture?