Legal Corner Archives - Gift Shop Magazine https://giftshopmag.com/category/operations/legal-corner/ The Modern Retailer’s Essential Resource Thu, 14 Dec 2023 15:25:19 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.4 Legal Corner: Loss prevention is worth a pound of proaction https://giftshopmag.com/article/legal-corner-loss-prevention-is-worth-a-pound-of-proaction/ Thu, 14 Dec 2023 15:23:08 +0000 https://giftshopmag.com/?post_type=article&p=88203 Loss prevention is a monumental issue in the retail industry. It is one that can decrease the amount of revenue a retailer ultimately brings to the bottom line. Additionally, it can cause headaches of many kinds for a business owner. Despite this, there are procedures and protocols that can be implemented to minimize the loss. […]

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Loss prevention is a monumental issue in the retail industry. It is one that can decrease the amount of revenue a retailer ultimately brings to the bottom line. Additionally, it can cause headaches of many kinds for a business owner. Despite this, there are procedures and protocols that can be implemented to minimize the loss.

There are multiple areas where loss can occur. The most common are internal and external theft; these account for nearly two-thirds of retail loss.

INTERNAL THEFT

Internal theft occurs when an employee or someone who is “in the know” within a business steals from that business. There are a variety of ways this can be perpetrated, and there are many ways to minimize internal theft and fraud.

First, business owners should have an employee handbook with policies and procedures to follow. This accomplishes two goals: it gives a set framework for the employees to follow, and it also allows the owner to determine where the theft or fraud may be happening if an employee is not following company procedures.

Second, only allow certain employees to have access to the financials of the business. If all employees have access, it makes it more difficult to narrow down where and how theft may be occurring.

Finally, in addition to having policies in place for employees, owners should have regular store meetings to go over loss prevention issues and store policies. If an employee breaks a loss prevention policy, the owner must then decide what the consequences are. Those consequences can range in severity from an informal reprimand to criminal prosecution, depending on the violation.

There are other proactive steps business owners can take to minimize loss. First, using an outside accountant or third-party bookkeeper will help catch errors or discrepancies. Then, invest in a point- of-sale (P.O.S.) system. This system can track types of transactions and who was working during specific times. If loss occurs at a specified time, that is something that the P.O.S. may be able to track. Finally, retain a loss prevention specialist. This person can find areas in your business where security measures or procedures are weak.

EXTERNAL THEFT

External theft, or shoplifting, happens when someone who is not employed by the business steals. Store owners can strengthen their store’s security by implementing a number of practices.

First, vet all potential employees. Second, establish and enforce rules and procedures for customers, and require employees to enforce the same rules. Third, take inventory regularly. By doing so, owners will have a clear idea of what they have on hand and when loss is occurring.

Additionally, train employees on loss prevention and how it impacts the productivity of the business. Next, have video surveillance in strategic places both inside and outside the store, and post signs stating that the establishment is under video surveillance at all times.

Finally, a metallic tagging system that triggers alarms if the tag is not removed also prevents loss.

OTHER TYPES OF LOSS

There are other types of loss in addition to internal and external theft — for example, natural disasters, fire and administrative errors. These types of loss account for one-third of loss in a business. Preventing natural disasters is impossible; in that situation, the owner must mitigate or lessen the potential impact of such an occurrence. The most effective way to do this is being properly insured. With regard to fires, being properly insured is imperative. One, however, must also ensure there are no fire hazards, such as using too many plugs for one outlet or putting merchandise where it is in direct contact with an electrical outlet. Finally, administrative errors will happen. Having someone check the work of another, however, will help to lessen those mistakes.

Often there is legal recourse, depending on which type of loss that has occurred. Before an owner can seek legal recourse, though, the owner should establish as many of the loss prevention procedures or action steps.


DISCLAIMER: The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use of and access to this website do not create an attorney-client relationship between Angie Avard Turner Law and the user or browser.

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What is your AIQ? https://giftshopmag.com/article/what-is-your-aiq/ Thu, 13 Jul 2023 10:00:35 +0000 https://giftshopmag.com/?post_type=article&p=87109 Artificial intelligence, also known as AI, seems like it was dropped on us like an explosion without warning. It literally is being discussed in its possible applications in every facet of our lives and in every industry. The potential of AI is that it could streamline many tasks that we often dread because the task […]

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Artificial intelligence, also known as AI, seems like it was dropped on us like an explosion without warning.

It literally is being discussed in its possible applications in every facet of our lives and in every industry. The potential of AI is that it could streamline many tasks that we often dread because the task is mundane yet still must get done, especially with regard to running a business. However, AI is not without a minefield of potential legal issues that many are scrambling to forecast and interpret as this technology rolls faster than any legislation to regulate it.

INTELLECTUAL PROPERTY

There are several issues with intellectual property as it relates to AI. Intellectual property is the area of law that covers patents, trademarks and copyrights. With the advent of new technology there is always a renewed concern for how it will affect or contribute to the possibility of infringement. One of the prevalent questions when AI is used to create content is, “Who is the actual author of the content?” This question has bearing on who owns the rights to license and monetize the created intellectual property.

AI does not perceive whether intellectual property is owned by another party, so users of AI will need some working savvy of how their use of AI could manipulate intellectual property in an unintended way. For example, if a retailer creates a description on their website using copyrighted material, or using a logo of a brand they are not authorized to use, there could be infringement. Likewise, if AI is being used in product development and another’s intellectual property is used without the proper licenses or permissions, it could be deemed infringement. Adding to complexity of this issue is determining who the creator/author of the content is. Some countries will allow the created content to be protected when authored or created by AI. However, in the U.S., with regard to copyright, the Copyright Office issued a policy statement that for a work to gain protection, the author must be a human.

We will also see the limits tested when this new technology is applied to both existing platforms, like social media, and new platforms, like the metaverse. As a business owner, being aware of the issues is important as the law is never out in front of the technology. In fact, it is the opposite, the technology is created, and then, usually, years later, the law is written to cover that technology development.

E-COMMERCE AND SECURITY ONLINE

The use of AI in this area will fall under how data is collected and stored when operating e-commerce or in more than one location. Focusing on your business’s data collection is preferred to increase its ability to provide an enhanced customer experience. This new focus is also in response to stricter privacy concerns for customers. Additional AI concerns revolve around malware and cloud-based storage. Some of the information communicated through these types of AI detail spending habits, customer locations, and even whether they are at home. In the wrong hands, this could present a danger to customers.

PROTECTING THE CONSUMER

Retail business owners should be aware that AI will have a legal effect on selling to customers in a new way. There may be a new way to present terms and conditions, disclosures, or even contracts. There may also be new AI implications relating to returns, refunds and the quality of goods. Already with the rise of influencers and celebrities acting as influencers, there has been an increase of litigation associated with product endorsements. Now add AI to the unknown and unforeseeable consequences of how that may impact those interactions. Lines are blurred, and legal enforcement becomes more complicated by what state has jurisdiction over the enforcement.

Of course, pointing out these potential pitfalls is not meant to alarm or frighten business owners, however understanding the potential issues involved will position your business in a way to be aware of how AI can impact it. If you have questions, seek out the advice of a qualified attorney.

DISCLAIMER: The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use of and access to this website do not create an attorney-client relationship between Angie Avard Turner Law and the user or browser.

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How the Copyright Claims Board can help retailers in disputes https://giftshopmag.com/article/how-the-ccb-can-help-retailers-in-copyright-disputes/ Fri, 07 Apr 2023 05:04:24 +0000 https://giftshopmag.com/?post_type=article&p=86037 The newly created Copyright Claims Board (CCB) allows for an alternative resolution to copyright claims up to $30,000.

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It is no secret that the creation of original, innovative designs and products is at the heart of the gift industry. Maybe that is why there are so many knock-offs and copycats.

There has always been an avenue of recourse. However, it is now much more accessible to everyone, even new and small companies. Copyright law covers works that are created by an author and fixed in a tangible form of expression. These works may be in the form of books, screenplays, pattern designs, fabric/ textile designs, jewelry, architectural plans, sculptures, paintings, photographs and drawings — and that is not even the complete list. So it is no wonder that as technology has advanced, it has become even more difficult to enforce and protect the works that one creates.

At the end of 2020, Congress passed legislation that directed the Copyright Office to create a Copyright Claims Board (CCB). This three-person board allows for an alternative resolution to copyright claims up to $30,000.

Until the creation of the CCB, if after attempting to come to some sort of informal resolution, someone wanted to enforce their copyright ownership, the only recourse was filing suit in federal court. For most, that seemed unlikely. With the creation of the CCB, the potential for a final resolution exists.

FEATURES OF THE CCB

1. Everyone has access. Regardless of whether you have an attorney or not, you may have access to the CCB. These proceedings were designed to be simplified so that anyone can come before the CCB.

2. The procedures are simplified. The proceedings are online and aim to be more time and cost effective. Participants in CCB proceedings are only required to provide limited basic documents and information, as opposed to the more complicated and costly process of exchanging evidence in federal lawsuits. Furthermore, CCB proceedings do not allow for formal motions used in federal court; All hearings are conducted remotely via video conference.

3. Participation in the CCB is voluntary. The claimants, both the one filing and the one responding, can decide whether to participate in the CCB proceedings. Participation is not compulsory; this means that either party may opt out. If the responding party opts out, then the claimant may still file suit in federal court.

4. The CCB only hears certain claims. The CCB’s jurisdiction is limited to specific claims. In federal court, all related claims may be brought; this is not so with the CCB. There are only three types of claims that may be brought before the CCB:

a. Copyright infringement claims
b. Claims seeking to clarify that activities do not infringe copyright; and
c. Misrepresentation claims in notices sent under the DMCA (Digital Millennium Copyright Act).

5. The CCB is made up of three copyright law experts. Copyright Claims Officers are experts in copyright law, making them well qualified to determine copyright matters involving various types of works and issues that arise from the above-mentioned types of claims.

6. Monetary damages are capped at $30,000. A party cannot bring a claim before the CCB seeking more than $30,000 in total damages. If a party is successful in their claim, they may choose to recover either statutory damages, which is determined by the law, or actual damages, which is calculated based on factual evidence. Most of these amounts for a successful party would be less than what they would be able to receive if they were to try the case in federal court. By comparison, statutory damages can be up to $150,000 for each work infringed if the infringement was committed knowingly and deliberately.

7. CCB procedures include safeguards against abusive practices. If a party brings a claim in bad faith, they may be ordered to pay the other parties reasonable costs and attorney’s fees up to $5,000. It is within the CCB’s discretion to award higher amounts if the party acting in bad faith shows a pattern of bad faith conduct. The CCB may ban that same party from filing new claims and/or dismiss any pending claims.

8. Parties cannot file an unlimited number of claims. The number of claims that may be brought each year depends on the party filing the claim. If an individual or corporation is bringing the claim, then they can only bring up to 30 claims in a 12-month period. For a solo practitioner, the 12-month limit is 40 claims; for a law firm, the limit is 80 claims.

9. The effect of a CCB finding is different from a court ruling. CCB determinations are posted online and public. However, these findings do not set precedent. In other words, the reasoning used for each case is specific to each situation and is not binding on another case that may come before the CCB. Furthermore, the CCB findings have no impact on other federal court proceedings. After a CCB determination, a party is barred from filing the same claim in federal court.

10. There are limits on appeals of CCB determinations. There are three options a dissatisfied party has when dealing with an unfavorable determination from the CCB:

a. The CCB’s reconsideration of, or a modification to, the determination, but only for a clear error of law or fact material to the outcome, or a technical mistake
b. A request the Register of Copyrights to decide whether the CCB abused its discretion in denying reconsideration
c. In limited circumstances, a review of the determination in federal court.

These are the main features of the CCB. This board is very new, so attorneys and claimants are still learning how this recently developed system within the larger system will operate. There are actions that may be taken before one even must resort to the CCB. Speaking with an attorney who practices in this area so that they may advise you of the benefits and the burdens of each of your options is the wisest, most prudent action to take.


DISCLAIMER: The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use of and access to this website do not create an attorney-client relationship between Angie Avard Turner Law and the user or browser.

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What Do Copyright Laws Protect? https://giftshopmag.com/article/what-do-copyright-laws-protect/ Fri, 20 May 2022 12:42:29 +0000 https://giftshopmag.com/?post_type=article&p=80866 The world of intellectual property is vast. Most people have heard of trademarks, copyrights, and patents, but the details are kind of fuzzy. And many folks lump all of those protections together. So, let’s clarify and dig into one of these items by answering the question, “What do copyright laws protect?” 

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The world of intellectual property is vast. Most people have heard of trademarks, copyrights, and patents, but the details are kind of fuzzy. And many folks lump all of those protections together. So, let’s clarify and dig into one of these items by answering the question, “What do copyright laws protect?” 

There are many misconceptions surrounding copyrights for those who don’t need to live and breathe intellectual property all day long. And for good reasons! It can be pretty confusing to sort out what copyright laws actually do. In short, a copyright is a legal protection the government provides to authors of original works. 

When we talk about copyright laws, the term “author” refers to the work’s creator, even if the creation isn’t literary. Copyright law protects a tangible form of expression of the author’s idea, not the idea itself. This area of intellectual property law puts control of the work in the hands of the author. That is, the creator has the right to determine whether or not someone else can copy or re-use the work. 

There isn’t a comprehensive list of items that can have this protection, probably because the list would be almost unending. But in general, the following types of work can fall under copyright laws. 

LITERARY WORKS 

You do not have to be John Steinbeck or Maya Angelou to receive copyright protection for your work. Literary doesn’t necessarily mean “taught in your college English classes.” Any original, written creation counts. This includes: novels, poems, screenplays, short stories, newspaper and magazine articles, website content, sheet music, computer software and social media copy. 

As you can imagine, the amount of content in this category is enormous and grows by leaps and bounds every day. It grew as soon as I posted this blog to my website! 

GRAPHIC AND PICTORIAL WORKS 

Are you a visual creator? If so, this category covers your work. It can include all of the following, to name a few: photographs, drawings, maps, paintings, fashion designs, textiles, sculptures and carvings, wallpaper designs, and infographics. 

What about all those cell phone photos you have? Do copyright laws protect them? Most definitely! Each of your silly selfies is protected by intellectual property law. Since experts estimated that we took about 1.4 trillion photos in 2021 alone, there is a lot of content in this copyright category. 

SOUND RECORDINGS 

On a recent thrift store adventure, my friend’s daughter found an old album of sound effects. It was a pretty amusing collection of sounds, and each one has copyright protection. Any original audio recordings fall under this area of copyright protection, including: songs, spoken word, instrumental music, sound effects and live recordings. 

ARCHITECTURAL WORKS 

Buildings and the plans that go into them can receive intellectual property protection. Once they are in a tangible form, all of the following can fall under copyright law: blueprints, models, drawings, diagrams and original structures. 

AUDIOVISUAL WORKS 

If you create something original that a person can watch on a screen, that creation has copyright protection. This category includes the following items: television shows, movies, animation, video games and original video content for social media.

DRAMATIC WORKS 

Dramatic creations can also receive copyright protection. These works include: choreography, musicals, plays and mime routines. 

WHAT DOESN’T FALL UNDER COPYRIGHT LAW? 

The list of things that copyright law covers is significant. It might be more straightforward to discuss the items that do not have this protection. Often, these works cause the most confusion around copyright law. The following things are examples of items that do not fall under copyright law, even though many people think they do: ideas; methods, systems, processes; names and titles; slogans; domain names; and recipes. 

WHEN DO COPYRIGHT LAWS TAKE EFFECT? 

As soon as your creation is in a tangible and complete (or mostly complete) form, it has protection under copyright law. So, for example, writing down the name of a screenplay you plan to write isn’t protectable. But once you’ve typed that whole screenplay, it is. 

The great news for authors and creators is that you have this protection whether you legally register the copyright or not. The registration piece comes into play if you want to take legal action against someone who infringes on your intellectual property. At that point, you would need to register the copyright with the U.S. government to proceed. 

Registering your works early guarantees the most and the best protection against infringement. There is a cost involved, but it is less than the cost to defend against an infringer. 

You do not need to have officially published something for it to be eligible for copyright protection. For intellectual property purposes, “publication” refers to making a work public. It does not mean that the work is published in the literary sense. As an author, you can register your work before publication happens. Actually, this option is the safest and most cost-efficient way to register a copyright. Unpublished works may qualify for registration in a copyrighted collection. After publication, you can still register and protect your works, but each one must be filed separately. Those costs can add up quickly. 

If you’re trying to decide if you should register a particular piece of intellectual property, consider whether you would be willing to take legal action against someone who infringes on it. If the answer is yes, then it’s worth pursuing copyright. 

DISCLAIMER: The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use of and access to this website do not create an attorney-client relationship between Angie Avard Turner Law and the user or browser. 

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Working Overtime https://giftshopmag.com/article/working-overtime/ Tue, 25 Jan 2022 20:17:19 +0000 https://giftshopmag.com/?post_type=article&p=78605 During busy seasons and in recent times where there have been employment shortages, navigating how to handle overtime has been an issue that many business owners are having to tackle with a fair amount of regularity. There are many twists and turns in the labor laws, so it is imperative that business owners have a […]

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During busy seasons and in recent times where there have been employment shortages, navigating how to handle overtime has been an issue that many business owners are having to tackle with a fair amount of regularity. There are many twists and turns in the labor laws, so it is imperative that business owners have a working knowledge of how these laws operate in order to minimize risk to their business and treat employees appropriately.

The Fair Labor and Standards Act (FLSA) governs labor and employment issues. The FSLA establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. Furthermore, covered nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour effective July 24, 2009. Overtime pay at a rate not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek.

The general rule is that an employee may work up to forty hours a week for a regular salary. Any work done beyond 40 hours is required to be documented and paid as overtime. However, with any law there are always exceptions and qualifications to the general rule.

WHAT ARE EXEMPT EMPLOYEES?

An employer is not necessarily required to pay overtime to all its employees. Most overtime laws exclude employees who perform certain, specific types of job duties from the overtime payment requirements. These employees are generally referred to as exempt employees. In addition to exempting certain employees from overtime requirements, some overtime laws exempt employers in specific industries from overtime standards. An exempt employee is an employee that is salaried, which means they are not an hourly wage employee.

REQUIREMENTS FOR EXEMPT EMPLOYEES

There are three main requirements for exempt employees. These are payment of salary, total earnings, and defined job duties.The salary payment requirement is met when an employer pays the employee on a monthly basis rather than on an hourly wage basis. Secondly, the total earnings of the employee must meet the threshold amount. This amount changes each year, so it is important for employers to be aware of what that amount is in order for the employee to be classified appropriately. For 2021, the threshold amount did not change from 2020; it is $684 per week or $35,568 annually. If the salary falls below these threshold amounts, then the employee is non-exempt. Finally, the defined job duties, in addition to the salary requirement, are usually executive or professional type duties. Exemptions for job duties include the following categories: executive duties, administrative duties, professional duties, computer tech duties such as a computer programmer, highly compensated duties, and outside sales duties.

WHAT ARE NON-EXEMPT EMPLOYEES?

Employees who are eligible for overtime are referred to as non-exempt employees. Generally speaking, non-exempt employees are hourly wage-earning employees and are guaranteed overtime compensation under the FSLA. Examples of wage earning jobs are interns, freelancers, contractors, servers, retail associates, and anyone who generally takes direction from a supervisor and does not have executive or administrative type job duties.

THE BOTTOM LINE

When hiring an employee, the business owner must make sure they are clear about how the employee will be classified. As with any other legal or financial matter, if the employer is uncertain, it is always prudent to reach out to a professional, either an accountant or an attorney, who can advise you on what the laws are and how to proceed with the new hire. Misclassifying employees could lead to both legal and financial troubles that could easily be avoided by asking for assistance.

DISCLAIMER: The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use of and access to this website do not create an attorney-client relationship between Angie Avard Turner Law and the user or browser.

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Decency https://giftshopmag.com/article/decency/ Fri, 02 Jul 2021 12:27:03 +0000 https://giftshopmag.com/?post_type=article&p=76208 The First Amendment is a cornerstone of American law and jurisprudence. It is most certainly one of the laws that distinguishes our country from others. The First Amendment guarantees freedom of expression, among other rights. Furthermore, it prohibits Congress from restricting the rights of the press or of individuals' free speech rights.

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FIRST AMENDMENT

The First Amendment is a cornerstone of American law and jurisprudence. It is most certainly one of the laws that distinguishes our country from others. The First Amendment guarantees freedom of expression, among other rights. Furthermore, it prohibits Congress from restricting the rights of the press or of individuals’ free speech rights.

That being said, there is speech that is not protected by the First Amendment, meaning that it can be restricted or that it receives little to no protection. These categories are speech that is considered, obscenity, fraud, child pornography, speech used to carry out illegal conduct, speech that incites imminent unlawful conduct, speech that violates intellectual property law, true threats, defamation, and commercial speech, for example advertising. Also, necessary to understand how speech impacts our culture is the knowledge that the First Amendment does not only apply to spoken words, but also to written words, and even expressions of speech that have no words. That makes the First Amendment a rather broad and far reaching protection of how those in the United States may express themselves.

DISPLAYING PRODUCTS FOR SALE

There is no law that states explicitly that one cannot sell or display profanity on products or within their place of business. However, profanity has always been an area where the courts have had issues. It can be a grey area so to speak. Although, generally speaking, one could display products with profanity, if those products were considered obscene or if those products incited violence, then maybe those products would not receive protection if someone decided to challenge them being displayed. This is not to say that one cannot display products that have obnoxious or repugnant sayings or even artwork, however when the speech crosses the line into obscene or inciteful, it will not be considered protected by the First Amendment.

NAMING A BUSINESS

While historically, both state and federal laws have prohibited businesses from naming their entity something indecent or something that would illicit pornographic thoughts. A recent 2019 Supreme Court case seems to suggest that law could be shifting. In that case, an apparel brand sought to register several trademarks that contained phrases with the F-word. Although the F-word was spelled incorrectly, it still phonetically was evident that it was pronounced like the F-word. In the majority ruling the Court stated that, “there are many immoral and scandalous ideas in the world and the First Amendment covers them all.” So, again, there is no bright line test. It seems in this situation, if one feels strongly about naming one’s business with profanity, they may have to defend that name. Knowing that upfront may be helpful.

POSTING PROFANITY

This is an area where the law gets really complicated because there are several laws at play. On the one hand there is free speech. However, on a platform that is owned by a company, not a government entity, the law applies a bit differently.

Here is how one scenario could play out. If a person posts profanity on a social media platform, that post may be deemed allowable. Depending on how much profanity and what the specific content is, on the other hand it may not be allowable. It depends on whether it is violating the terms and conditions set out by the social media platform. Now, if a person posts profanity and it is in regard to a work situation or union situation, that may be allowable regardless of the terms and conditions of the social media platform as there are certain rules and regulations that protect that type of speech and the ability of workers to voice a concern within the workplace.

In another situation, if someone posts speech that falls within those unprotected categories mentioned above, then the speech is not protected, and most likely it will violate the social media platform’s terms and conditions. Best practice would be to steer clear of that type of speech.

CONCLUSION

The First Amendment has a far-reaching effect on all of our lives, both personal and professional. It is often easy to oversimplify the issues surrounding the First Amendment. However, the First Amendment has a long history in our nation; it is not going anywhere. That being the case, it makes sense to gain a deeper understanding of how various forms of expression can impact one’s business.

DISCLAIMER: The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use of and access to this website do not create an attorney-client relationship between Angie Avard Turner Law and the user or browser.

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Rights of Publicity https://giftshopmag.com/article/rights-of-publicity/ Fri, 30 Apr 2021 15:46:31 +0000 https://giftshopmag.com/?post_type=article&p=75398 It has been a trend for years; however, it seems when something of historical significance happens, there is an uptick in products created with public figures’ likenesses. Rights of publicity are an intellectual property right that many “regular” folks are not aware of.

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It has been a trend for years; however, it seems when something of historical significance happens, there is an uptick in products created with public figures’ likenesses. Rights of publicity are an intellectual property right that many “regular” folks are not aware of. The term was coined by a judge in 1953, and according to the International Trademark Association, “rights of publicity are rights that protect against the misappropriation of a person’s name, likeness, or other indicia of personal identity — such as nickname, pseudonym, voice, signature, likeness, or photograph — for commercial benefit.” Sometimes these are known as personality or personal rights.

SEVEN THINGS YOU NEED TO KNOW

Here are the seven things you should know about publicity rights before you manufacture or sell goods with a public figure’s image attached.

1. PRODUCTS THAT CAPITALIZE ON RIGHTS OF PUBLICITY

Just about anything under the sun may be capitalizing on a person’s rights of publicity. From T-shirts to jewelry to dolls and just about any other product that can be mass produced could possibly be considered benefiting monetarily from rights of publicity.

2. WHO CAN EXPECT RIGHTS OF PUBLICITY

Theoretically, everyone can, but not everyone should. When speaking about rights of publicity there are four factors that are considered. These factors are considered, but there are no bright line answers; that is what makes this area so difficult.

  • Time. If you are a public figure, are you always, from then on considered a public figure?
  • Location. If you are recognizable in Australia, does that mean you are a celebrity in the U.S.?
  • Taste/Genre. If you are well known in one circle does that mean you are a celebrity even if unrecognizable in another genre?
  • Professional or Business Expert. If you are well known within a certain specialty, does that mean you are famous outside of that area?

For each of the factors listed, the answer is it is possible that it could be no and then change to yes. But when does it change? That is the gray area that creates such confusion.

3. PUBLICITY RIGHTS ARE GOVERNED BY STATE LAW

Rights of publicity, if governed at all, are governed by state law. More than half of the states recognize rights of publicity in some form, while other states do not recognize these rights at all. This makes it extremely difficult 1) to enforce, and 2) to know how to move forward with a concept or product in the appropriate manner.

4. RIGHTS OF PUBLICITY MAY CONFLICT WITH FIRST AMENDMENT RIGHTS

While many will say that a company should not be able to create products that use another’s image for profit. There are potential free speech considerations at play in these cases. Where products are being made in a custom or bespoke manner, it is possible to argue that the creator is exercising their free speech rights of expression.

First Amendment carries a great deal of weight in our courts, so this is a strong argument. However, there again, is no bright line test to know when an item crosses from expression to production.

5. RIGHTS OF PUBLICITY MAY GIVE RISE TO TRADEMARK ISSUES

It is possible that using a public person’s image may give rise to issues in trademark. Celebrities make money not only off their image but also from monetizing their name. If a company creates products with that person’s name on them, it could possibly open up a claim for trademark infringement.

6. PROPER LICENSING

The safest way to produce products with another’s likeness on it is to request and receive permission. In the legal world, this is known as licensing. Licensing can happen in a variety of different ways that are dependent upon how the agreement is drafted. There can be a flat fee or royalties. It really depends on the parties involved and what the goals are for each.

7. CONTRIBUTORY LIABILITY

Contributory liability is a fancy legal term for being held liable for the company you keep, or in the gift industry the inventory you keep. If a retailer chooses to sell goods that are manufactured in violation of another’s rights of publicity, it is possible they could be held liable as well. Thus, best practices for retailers are to vet your wholesale vendors and make sure they are operating within the confines of the law.

LIST OF STATES

Below are a list of states that recognize rights of publicity and how each treats the rights of publicity, whether it is codified by statute or common law (which is law decided by court cases).

  • Alabama (common law)
  • Arkansas (statute)
  • California (common law and statute)
  • Connecticut (common law)
  • Florida (statute)
  • Georgia (common law)
  • Hawaii (statute)
  • Idaho (common law)
  • Illinois (statute)
  • Indiana (statute)
  • Kentucky (common law and statute)
  • Massachusetts (statute)
  • Michigan (common law)
  • Minnesota (common law)
  • Missouri (common law)
  • Nebraska (statute)
  • Nevada (statute)
  • New Jersey (common law)
  • New York (statute)
  • Ohio (common law)
  • Oklahoma (statute)
  • Pennsylvania (common law)
  • Rhode Island (statute)
  • South Dakota (statute)
  • Tennessee (statute)
  • Texas (common law)
  • Utah (common law and statute)
  • Virginia (statute)
  • Washington (statute)
  • Wisconsin (common law and statute)

CONCLUSION

Rights of publicity is a complicated area of intellectual property law. It is an area that is pervasive within the creative and gift industry. If you are unsure about whether you are operating within the parameters of the law, whether you are manufacturing or selling retail, you should consult an attorney who can guide and educate you on the law at play.

DISCLAIMER: The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use of and access to this website do not create an attorney-client relationship between Angie Avard Turner Law and the user or browser.

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Safe Work Environments in a Pandemic World https://giftshopmag.com/article/safe-work-environments-in-a-pandemic-world/ Tue, 30 Mar 2021 12:06:02 +0000 https://giftshopmag.com/?post_type=article&p=72036 For the foreseeable future we have a new norm in the industry — it is called living safely in a pandemic world. There are specific guidelines that Occupational Safety and Health Administration (OSHA) issued to help retailers navigate these challenging times.

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For the foreseeable future we have a new norm in the industry — it is called living safely in a pandemic world. There are specific guidelines that Occupational Safety and Health Administration (OSHA) issued to help retailers navigate these challenging times. Since the pandemic, OSHA may be looking at completely different violations than the hazardous working conditions it normally handles.

Here are several important guidelines OSHA has issued to the retail industry.

1. Encourage workers to stay at home if they are sick.

During peak seasons and when so many retailers are running on a shoe-string budget, there may be a temptation to allow employees to work despite feeling under the weather. However, the most prudent and risk reducing thing to do is to allow the employee to stay home.

2. Provide a washing station or alcohol rubs containing at least 60% alcohol.

Merely stating that employees should wash hands or having the alcohol rubs available may not be proactive enough. It may be that, as the business owner, you require employees to wash their hands following “x” number of transactions, or after every transaction.

3. Maintain regular rules regarding cleaning and disinfecting the work area.

Again, how and when areas are disinfected will vary from retail space to retail space. Consider keeping things “wiped down” and disinfected continuously and consistently to avoid contamination.

4. Practice social distancing.

One of the first visible signs that a retail location has implemented safety precautions is social distancing and spacing markers. This, too, is a simple yet effective way to guide customers and employees on how to conduct themselves in your business.

5. Where it is practicable, use plexiglass dividers.

Many retailers have constructed plexiglass windows that come between them and the customer but allow them to continue to interact with the customer clearly and face to face. This gives the feeling of having a “normal” interaction while protecting all parties.

6. Use drive through windows and curbside pick-up.

This form of service allows the customer to interact in the way that is most comfortable to them while protecting the business owner and employees.

7. Provide employees and customers with tissues, trash receptacles, and face masks.

Upon entering your retail space, customers should be provided a mask, if they do not have their own. Providing masks at the front entrance, sends a clear message to both employees and customers that you take their health very seriously.

8. Train employees in proper hygiene practices.

Having regularly scheduled times to reiterate to employees proper hygiene and cleanliness practices serves to emphasize how important this time is and how critical it is to take care of themselves.

9. Strongly encourage and insist employees wear masks over their noses and mouth to prevent the spread of the virus.

One of the biggest downfalls in retail spaces is the lack of mask wearing or the improper wearing of masks. Wearing the mask around one’s neck or around one’s chin does not protect anyone. So, insist that if masks are being worn, they should be worn properly.

10. Ask employees to report any safety and health concerns promptly.

We are in stressful times and tensions can run high; nerves may be fragile. If a situation arises that may be of concern, make sure that it is documented. The business owner should document in detail what happened, when and what was done to rectify the situation so far as it was their responsibility to do so.

Conclusion

Times are very tenuous now. It is a time to be cautious, but courageous. It is a time to be sensible, yet sensitive. There has never been a better time to minimize your risk as a retailer. By doing so you are protecting your business, but you are also showing your customers you care about their wellbeing, too.

DISCLAIMER: The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use of and access to this website do not create an attorney-client relationship between Angie Avard Turner Law and the user or browser.

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Mask Up https://giftshopmag.com/article/mask-up/ Sun, 15 Nov 2020 18:05:49 +0000 https://giftshopmag.com/?post_type=article&p=70778 With the outbreak of COVID-19, the gift and retail industry has been thrust into a sort of twilight zone of operation. The ever-delicate balance of wanting to be open to customers and wanting to protect everyone. It really is an impossible predicament.

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With the outbreak of COVID-19, the gift and retail industry has been thrust into a sort of twilight zone of operation. The ever-delicate balance of wanting to be open to customers and wanting to protect everyone. It really is an impossible predicament. The rules are being written in real time. The last time there was anything that happened like this in the U.S. was in the early twentieth century. So much has changed over 100 years.

So how can retailers navigate the mask issue? Keep in mind, when asking customers, or even employees for that matter, to wear masks, the business owner is asking for a behavior change. Often, behavior changes happen over a period of time, not in a split-second instance. So, by pivoting to masks everywhere on everyone is not a gradual shift. Although there is no one rule, here are some guidelines that may help the retailer navigate best practices for their employees and customers. Above all else, as a business owner, maintaining quality goods, exceptional service, and a kind response will win the day!

Examine what your state rules are.

As of the writing of this article, there are 34 states and the District of Columbia that have a state mask mandate. That is important to know. While many states may be handling the mask mandate in the same way or similarly, the burden is on you as the business owner in that state to find out what the mandate states, what is required, who it applies to, who is exempt, or is there any power that is granted further to the local governments. Your state’s government homepage should have the latest COVID-19 news. Most likely the most up to date information will be posted there.

Examine what your local rules are.

Likewise, there may also, in addition to a state’s mandate, be local mandates. This may be governed by the municipality/city or the county. It really depends on how your local government is organized. It is important to review these mandates in light of any state mandates that exist to get the full context of what is required.

Provide disposable masks at the front door.

If a business owner is requiring patrons to wear masks, it is prudent to provide disposable masks. There are times when one forgets or may misplace their own mask. By providing disposable masks, the business owner cuts out the possibility of the customer’s absentmindedness. Additionally, it is more difficult to deny wearing a mask when the store the customer is entering is offering them a free disposable mask.

Have an employee greet the customer.

Some may disagree with this suggestion, however, it is more difficult for someone to refuse to wear a mask when someone is there at the door to greet them in a friendly way with a disposable mask and sanitizer. Many of the “big box” stores handle masking this way. Also, major amusement entertainment venues, which have retail stores on their grounds, have employees whose sole job it is to greet and ask for masks to be worn. If this route is right for your business, the best thing you can do is educate your employees. Empower your employees by helping them to know what the mandates say. Knowing what they say means they can explain them in a way, if needed, that is non-threatening to the customer. Although this may not ensure one 100% compliance, it will engender confidence that your staff is concerned with all patrons’ safety.

Post your store policy everywhere.

Once you are clear on what your policy for your retail store should be, post it — EVERYWHERE. The more it is posted, the more people will see it, which means they cannot use the excuse, “I didn’t know.” Be sure to post it on your website, app, social media platforms, and of course, near the front of your brick-and-mortar location.

Be consistent.

It may be tempting to not worry about mask policies. If your state or local government require it, then you really cannot ignore it. However, consistency helps guarantee that there is you are clear, as a business owner on your position. Where there is ambiguity or disparity in policy, there is always a greater possibility for a conflict or dispute. Being consistent takes more effort on the business owner’s part, however it will pay off in the long run.

Do not escalate the situation with aggressive behavior.

We have all seen in the news, situations that ended in less than desirable ways because behavior became aggressive. If a customer becomes aggressive, do not meet that behavior with the same. You may warn them of your policy. If they do not comply, then it is your choice then whether to call the authorities. Calling the authorities does not mean that someone has to go to jail. It simply means that someone whose authority that customer may respect will be present.

Conclusion.

Unfortunately, there is no magic solution to a pandemic. We are all figuring this out as we go. Even we attorneys are having to figure out how to interpret the law in light of the pandemic, the mandates, and modified rules. One of the best things we can do is be considerate of others and extend grace to one another. We WILL get through it all.

DISCLAIMER: The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use of and access to this website do not create an attorney-client relationship between Angie Avard Turner Law and the user or browser.

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6 Tips to Get Your Social Media in Tip Top Legal Shape https://giftshopmag.com/article/6-tips-to-get-your-social-media-in-tip-top-legal-shape/ Wed, 22 Apr 2020 13:53:27 +0000 https://giftshopmag.com/?post_type=article&p=66333 Social media is not an option if you own a business in this modern day and age. It has become a way in which we connect with our customer and potential customers both for advertising and buying purposes. These tips apply above and beyond whatever terms and conditions each social media platform requires of its users.

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Social media is not an option if you own a business in this modern day and age. It has become a way in which we connect with our customer and potential customers both for advertising and buying purposes. These tips apply above and beyond whatever terms and conditions each social media platform requires of its users.

1. DO NOT DISCLOSE CONFIDENTIAL INFORMATION

This seems fairly obvious, however, sometimes we share this information without even realizing it. When creating posts avoid sharing confidential information about yourself, your business, or your clients/customers. Confidential information may be recent whereabouts, home addresses, phone numbers, email addresses.

2. DO NOT BE AMBIGUOUS

This, too, probably seems like common sense. When crafting a post or caption, make sure that what is being said is clear. Any time language is used that is vague, ambiguous, or could potentially be interpreted more than one way, there is a possibility that someone will read that post or caption the wrong way. That can, at the very least, cast a negative shadow on one’s business. Worst case scenario, one could find themselves being sued.

3. BE AWARE OF COPYRIGHT ISSUES

There are two sides to copyright. One side is making sure that you as the business owner are not infringing someone else’s rights. That means that you are not posting photos or content that does not belong to you or that you have properly received permission to post on social media platforms. The second side of this issue is that, as a business owner, you want to protect your own content that you are creating. You will want to make sure that someone else is not posting your content without your permission.

4. KNOW THE TRADEMARK RULES

Trademark rules are similar to copyright guidelines in that there are two sides to these as well. There is the trademark of another company that your business should not use without proper consent. Then there is your trademark that you should be protecting and making is not being used without your permission. This can be problematic, as often when marketing a brand, as we want to align with another brand that seems to complement ours. Using hashtags or branding from another company to make customers think that those are your products or that they endorse your products is trademark infringement.

5. DO NOT POST DEFAMATORY STATEMENTS

It may be tempting to post captions that compare your business with another business. It may also be tempting to want to show how your business is better by demonstrating how the competition’s business is subpar. Resist the urge to do so. Defamation can be a nuanced area that can have a business owner in a larger legal situation that they never intended. Saying something negative about a competitor in order to make your business look better never really works and only serves to create potential legal risk.

6. MAKE SURE YOU ARE COMPLYING WITH FTC GUIDELINES REGARDING SPONSORED POSTS

The Federal Trade Commission, also known as the FTC, is part of the federal government that was created to help protect consumers from unfair or deceptive trade practices by businesses. Recently, the FTC has tightened up the requirements for online posting when it comes to sponsored content or ads. There are a couple of rules you will want to keep in mind. One, there MUST be a disclaimer on the post if the business posting is being paid (receiving value, which means one could be paid in goods not just money) for the post. The disclaimer must be in an obvious place on the post, not hidden in the fine print. Second, refunds must be made if they are promised to customers. Third, if demonstrating how the product works, it must be demonstrated under normal use. Finally, advertising to children raises a series of separate issues, so seek professional advice if you are unsure.

Most, if not all, of these tips are fairly straight forward. Implementing them may take a bit of effort and forethought, however, it is worth it in the end to avoid any legal mishap or situation that could jeopardize the well-being of your business.

DISCLAIMER: The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use of and access to this website do not create an attorney-client relationship between Angie Avard Turner Law and the user or browser.

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