Technologies of storytelling: new models for movies

[FN401]. Sybersound Records, Inc. v. UAV Corp., 517 F.3d 1137, 1145 (9th Cir. 2008).
[FN402]. Davis v. Blige, 505 F.3d 90 (2d Cir. 2007).
[FN403]. Id. at 97-98 (referring to ‘accrued rights‘ of one co-owner to sue for infringement).
[FN404]. Id. at 99 [internal citations omitted].
[FN405]. Janky v. Lake County Convention & Visotrs Bureau, 576 F.3d 356 (7th Cir. 2009).
[FN406]. Id. at 358 (describing facts).
[FN407]. Id. at 350-60.
[FN408]. Id. at 360.
[FN409]. Id. at 360-61.
[FN410]. Id. at 361.
[FN411]. Id.
[FN412]. Id. at 362.
[FN413]. Id. (rejecting Nimmer's position that a deminimis contribution is enough, and distinguishing Erickson, 13 F.3d at 1068, 1071 (putative joint author of play contributed only ideas, refinements, and suggestions, which were not enough).
[FN414]. Id. [internal quotation omitted].
[FN415]. Id.
[FN416]. Id. (quoting Childress v. Taylor, 945 F.2d 500, 508 (2d Cir. 1991)).
[FN417]. Id. at 363.
[FN418]. Id. [internal quotations and citations omitted].
[FN419]. Id. at 363 n.5.
[FN420]. Siegel, 658 F. Supp.2d at 1036 (C.D. Cal. 2009).
[FN421]. Jacobson v. Katzer, 535 F.3d 1373 (Fed. Cir. 2008).
[FN422]. See Indie GoGo: Projects, http://www.indiegogo.com/projects (last visited Jan. 12, 2011) (describing movie projects seeking on the order of $10,000-$15,000 total); Sell A Band, www.sellaband.com (last visited Jan. 12, 2011); Kick Starter, http://www.kickstarter.com/ (last visited Jan. 12, 2011).
[FN423]. 15 U.S.C. § 77e(a).
[FN424]. SEC v. Edwards, 540 U.S. 389 (2004). “Congress' purpose in enacting the securities laws was to regulate investments, in whatever form they are made and by whatever name they are called. To that end, it enacted a broad definition of ‘security,’ sufficient to encompass virtually any instrument that might be sold as an investment. Section 2(a)(1) of the 1933 Act, 15 U.S.C. § 77b(a)(1), and § 3(a)(10) of the 1934 Act, 15 U.S.C. § 78c(a)(10), in slightly different formulations which we have treated as essentially identical in meaning, define ‘security’ to include ‘any note, stock, treasury stock, security future, bond, debenture, ... investment contract, ... [or any] instrument commonly known as a security.”’ Id. at 393 [internal quotations and citations omitted].“The test for whether a particular scheme is an investment contract was established in our decision in SEC v. W.J. Howey Co., 328 U.S. 293 (1946). We look to ‘whether the scheme involves an investment of money in a common enterprise with profits to come solely from the efforts of others.” Id. at 301.
[FN425]. SEC v. W.J. Howey, 328 U.S. 293 (1946).
[FN426]. Id. at 298-99.
[FN427]. SEC v. Lauer, 52 F.3d 667, 670 (7th Cir. 1995).
[FN428]. Howey, 328 U.S. at 299-300 (1946).
[FN429]. Edwards, 540 U.S. at 389 (2004).
[FN430]. Id.. at 397.
[FN431]. Int'l Bhd. Of Teamsters, Chauffeurs, Warehousemen & Helpers of Am. v. Daniel, 439 U.S. 551 (1979).
[FN432]. Id. at 562.
[FN433]. In re Enron Corp. Securities, Derivative & ERISA Litigation, 284 F. Supp.2d 511, 639-40 (S.D. Tex. 2003) (discussing possibility under Daniel, lower court cases, and SEC position).
[FN434]. Francisco NOA v. Key Futures, Inc., 638 F.2d 77 (9th Cir. 1980).
[FN435]. Id. at 79.
[FN436]. Peyton v. Morrow Elec., Inc., 587 F.2d 413 (9th Cir. 1978).
[FN437]. Id. at 414.
[FN438]. Id. at 415 (distinguishing SEC v. Glenn W. Turner Enterprises, Inc., 474 F.2d 476, 482-83 (9th Cir. 1973) (participation in promotion by investors did not negate fact that success mainly depended on efforts of others)).
[FN439]. Trostle v. Nimer, 510 F. Supp. 568 (S.D. Ohio 1981).
[FN440]. Id. at 569.
[FN441]. Id. at 572-74.
[FN442]. 15 U.S.C. § 77d(2) (2010).
[FN443]. 17 CFR § 230.502(b) (requirements applicable to purchasers other than accredited investors).
[FN444]. 17 CFR § 230.506 (exemption from registration requirements for sales of securities to no more than 35 persons).
[FN445]. See SEC, Use of Electronic Media, Release Nos. 33-7856, 34-42728, 65 Fed. Reg. 25843, 25851-25852 (May 4, 2000) (to be codified at 17 C.F.R. pts. 231, 241, & 271). The release makes it clear that the SEC considers a web-published opportunity to invest to be a ‘public offering.‘ It explains how restricted websites may be used to quality for the exemptions:

       “A password-restricted web page permitting access to private offerings would become available to a prospective investor only after the affiliated broker-dealer determined that the investor was ‘accredited’ or ‘sophisticated’ within the meaning of Regulation D. Additionally, a prospective investor could purchase securities only in offerings that were posted on the restricted web site after the investor had been qualified by the affiliated broker-dealer as an accredited or sophisticated investor and had opened an account with the broker-dealer.” 65 Fed.Reg. at 25,852.

[FN446]. See 815 ILCS 5/5 (registration requirement); Id. § 4(G) (exemption for limited offerings); Brantley v. Harris, ___F. Supp.2d ___, Civil Action No. 3:10-CV-30-S, 2010 WL 2889663 (W.D. Ky July 31, 2010) (denying motion to dismiss claim under Kentucky Blue Sky Law, KRS 292.320; defendant allegedly told investor his money woould be used to purchase equipment, instead using it for personal gain); Paul G. Mahoney, The Origins of the Blue-Sky Laws: A Test of Competing Hypotheses, 46 J. Law. & Econ. 229 (2003) (arguing that 48 states enacted Blue Sky Laws under pressure from small banks that opposed competition for depositors' money).
[FN447]. See § ___ supra, illustrating production cost and revenue of major studio features.
[FN448]. See Arthur De Vany& W. David Walls, Uncertainty in the Movie Industry: Does Star Power Reduce the Terror of the Box Office?, available at http:// marshallinside.usc.edu/Mweinstein/teaching/fbe552/552secure/notes/devany%20new% 20one.pdf (last visted Dec. 1, 2010) (paper presented at American Economic Association, New York, January 1999) (reporting on survey of films showing that stars increase revenue but do not ensure success); Forbes.com, Star Currency: Complete Methodology, http://www.forbes.com/2009/02/06/forbes-star-currency-methodology-business-media-star-currency-09_0210_methodology.html (last visted Dec. 10, 2010) (reporting on global power of major stars to draw financing and audiences).
[FN449]. See Wikipedia, Adam Lambert, http://en.wikipedia.org/wiki/Adam_ Lambert (last visited Jan. 31, 2011).
[FN450]. See Plastic Alligator Attacks Dog, http://www.youtube.com/watch? v=UF5NS18RvBE (last visited Jan. 31, 2011); Fat Kid Eats Dog Shit for $100 Bucks [sic], http://www.youtube.com/watch?v=zxWZORyg6d4 (last visited Jan. 31, 2011); Worst skateboarding accident ever, http://www.youtube.com/watch? v=7EeuslmDboQ (last visited Jan. 31, 2011).
[FN451]. Henry H. Perritt, Jr., New Business Models for Music, 18 Vill. Sports &Ent. L.J. ___, ___ (2010).
[FN452]. The author understands that these survey results are not statistically meaningful, both in terms of the skewed demographics of the survey respondents and because of the small sample size.
[FN453]. Henry H. Perritt, Questionnaire results, http:// www.kentlaw.edu/perritt/courses/seminar/questinnaire%20results%202.htm (last visited Dec. 10, 2010).
[FN454]. See Transformers: The Game, http:// en.wikipedia.org/wiki/Transformers:_The_Game (last visited Jan. 12, 2011).
[FN455]. See Reuters, Disney Company Profile, (available at http:// in.reuters.com/finance/stocks/companyProfile?symbol=DIS) (reporting that Disney earns licensing revenue toys, apparel, home decor and furnishings, stationery, accessories, health and beauty, food, footwear and consumer electronics based on its characters from its film, television and other properties, including Mickey Mouse, Disney Princess, Toy Story, Winnie the Pooh, Cars, Disney Fairies, Hannah Montana and the Marvel properties including Spider-Man and Iron Man).
[FN456]. See Joshua L. Simmons, Catwoman or the Kingpin: Potential Reasons Comic Book Publishers Do Not Enforce Their Copyrights Against Comic Book Infringers, 33 Colum. J. Law & the Arts 267, 288-289 (2010) (explaining that most revenue comes from licensing characters and summarizing data on revenue components).
[FN457]. Kickstarter, http://www.kickstarter.com/ (last visited Jan. 12, 2011).
[FN458]. See Indiegogo: Projects, http://www.indiegogo.com/projects (last visited Jan. 12, 2011) (describing movie projects seeking on the order of $10,000-$15,000 total).
[FN459]. DoubleClick, Reach the Right Audience, http:// www.doubleclick.com/solutions/marketers/reach_the_right_audience.aspx (last visited Jan. 12, 2011).
[FN460]. DoubleClick, Advertising Exchange, http:// www.doubleclick.com/products/advertisingexchange/index.aspx (last visited Jan. 12, 2011).
[FN461]. 24/7 Real Media, http://www.247realmedia.com/EN-US/ (last visited Jan. 12, 2011).
[FN462]. Acxiom, http://www.acxiom.com/Pages/Home.aspx (last visited Jan. 12, 2011).
[FN463]. Google, https://adwords.google.com/select/AfpoFinder? countryCode=US (last visited Jan. 12, 2011).
[FN464]. Google: Login, https://adwords.google.com/select/Login? sourceid=awo&subid=na-en-ha-ct&medium=ha (last visited Jan. 12, 2011).
[FN465]. Brooks Barnes, Two Web Site Developers Said to Team Up With Starcom for Digital Ad Dollars, N.Y.Times, Aug. 18, 2010, at B3 (reporting on $100 million deal between Starcom'sMediaVest Group and BermanBraun, a production company behind several video websites; filling “missing piece: having a partner who can supply a continuous revenue stream”).
[FN466]. See § 0 supra.
[FN467]. The Internet is frequently represented in network diagrams as a cartoon-representation of a cloud, signifying that users communicating through the Internet do not need to be concerned with what is inside the cloud.
[FN468]. Reconsidering Our Communications Laws: Ensuring Competition and Innovation: Hearing Before the Senate Comm. on the Judiciary, (June 14, 2006) (statement of Vinton G. Cerf, Vice President and Chief Internet Evangelist, Google Inc.), available at http://judiciary.senate.gov/testimony.cfm? id=1937&wit_id=5416.
[FN469]. Id. at 2-3.
[FN470]. See W. Richard Stevens, 1 TCP/IP Illustrated: the Protocols chs. 9-10 (1994) (explaining different Internet routing protocols); AdityaAkella, Endpoint-Based Routing Strategies for Improving Internet Performance and Resilience, Carnegie Mellon Ph.D. Thesis CMU-CS-05-183 (Sept. 29, 2005), available at http://www.cs.cmu.edu/~aditya/thesis/thesis.pdf#search=%22Internet%C20routing%C20strategies% r(last visited Jan. 12, 2011).
[FN471]. H.R. 5417, 109th Cong., 2nd Sess.
[FN472]. 15 U.S.C. §§12-28.
[FN473]. H.R. 5417 §3 (adding 15 U.S.C. §28 and redesignating existing § 28 as § 29).
[FN474]. See, e.g., H.R. Rep. 109-541 (report of House Committee on the Judiciary to accompany HR 5417).
[FN475]. S. 2686, Communications Reform Bill (Full Committee Markup): Hearing before the Senate Comm. on Commerce, Science, and Transp., 109th Cong. (June 28, 2006) (Closing statement of Sen. Ted Stevens), available at http:// commerce.senate.gov/public/index.cfm?FuseAction=Hearings.Statement&Statement_ ID=151.
[FN476]. H.R. Rep.109-541.
[FN477]. In re Verizon Communications Inc. and MCI, Inc. Applications for Approval of Transfer of Control, Memorandum Opinion and Order, WC Docket No. 05-75 (Nov. 17, 2005), at 130, available at http://hraunfoss.fcc.gov/edocs_ public/attachmatch/FCC-05-184A1.pdf.
[FN478]. In the Matter of SBC Communications Inc. and AT&T Corp. Applications for Approval of Transfer of Control, Memorandum Opinion and Order, WC Docket No. 05-65 (Nov. 17, 2005), at 125, available at http:// hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-183A1.pdf.
[FN479]. In the Matters of Formal Complaint of Free Press and Public Knowledge Against Comcast Corporation for Secretly Degrading Peer-to-Peer Applications, FCC 08-183, WC Docket No. 07-52 (Aug. 20, 2008).
[FN480]. Comcast Corp. v. FCC, 600 F.3d 642 (D.C. Cir. 2010).
[FN481]. Id. at 644
[FN482]. Nat'l Cable & Telecomms. Ass'n v. Brand X Internet Servs., 545 U.S. 967 (2005).
10 Va. Sports & Ent. L.J. 106
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