How much power does a company have?

[wag6dd2a]

What is the name of your state (only U.S. law)? North Carolina

Hi,
I have an event company which is an LLC.

I advertised a themed event which included a famous cat with a bow (you can guess who it is I'm referring to).

I received a cease and desist letter to send a disclaimer and offer refunds to guests and remove all reference to
said company in my ads. I did this and sent documentation.

Here's my question:
I legally bought their product and planned to give it as a prize. I was told in the C & D that I couldn't do this
because they can't "monitor" its use. "MONITOR" its use?!! Really? What happened to the first sale doctrine?

I was also told that I couldn't distribute ANYTHING with their image at my event! So, they're stating that if
I buy their licensed products, I can't give them away as party favors, etc. To do so, they affirm, will leave them
no choice but to sue me for "damage" to their name, reputation, etc.

I've seen where this company has been sued themselves for bogus claims and interfering with fair business and the plaintiff won.

The letter also said that I couldn't use ANY posters (even if licensed) or image (like decorations), etc at my event. Are they crazy or am I just stupid?
I can understand if I put my name on it, but how can a company assert such power after first sale?

The letter also made claims that I promoted other award items which I did not. I did use their name in a theme-based manner. I was told that
I could not use their licensed products during a themed event and MUST change the theme. Wait, they sell party ware--for THEMED parties!
Now I'm totally confused. I think this is a gross over stepping of power.

What do you think?
Thanks for your input,
Sad Kitty :/

 

[justalayman]

where did you purchase all of the items with the character on them or were representations of the character?

 

[quincy]

If the copyright holder is Sanrio, Inc., you need permission (a license) from them if you wish to use the "Hello Kitty" name or image in your advertising or promotions.

It is one thing to give away as a prize a "Hello Kitty" product, but it is another thing to advertise your event as a "Hello Kitty" event. One doesn't infringe on the copyright, the other does.

Sanrio has copyright infringement suits filed in a couple of courts in the U.S. right now - one in California against Does 1-50 for infringing on Sanrio's animated programs, and one against "Definitely Divas," an Oklahoma beauty pageant that has been using the "Hello Kitty" image on tiaras and trophies and in promotional material.

Sanrio, itself, was sued for copyright infringement in 2010, by the creator of "Miffy." See Mercis v Sanrio. Miffy creator Dick Bruna claimed Hello Kitty's friend, Cathy the bunny, was substantially similar to Bruna's character Miffy (the noses are totally different ).

The suit was interrupted by Japan's earthquake and tsunami. Sanrio agreed to stop using the Cathy character so Bruna decided to drop the suit, and both Bruna and Sanrio used the money they would have used in the lawsuit to donate to victims of the disaster instead.

The First Sale Doctrine allows for you to sell an item you have legally purchased (or to give it away or to throw it away).

If you were sent a cease and desist, you may wish to have an attorney look over both the notice and your promotional materials.

 

[wag6dd2a]

Purchase

where did you purchase all of the items with the character on them or were representations of the character?

We bought them legit from a popular US party supply vendor and showed the attys the receipt.
Thanks

 

[justalayman]

We bought them legit from a popular US party supply vendor and showed the attys the receipt.
Thanks

take heed to Quincy's post.

It is one thing to give away as a prize a "Hello Kitty" product, but it is another thing to advertise your event as a "Hello Kitty" event. One doesn't infringe on the copyright, the other does.

 

[wag6dd2a]

Reply

If the copyright holder is Sanrio, Inc., you need permission (a license) from them if you wish to use the "Hello Kitty" name or image in your advertising or promotions.

It is one thing to give away as a prize a "Hello Kitty" product, but it is another thing to advertise your event as a "Hello Kitty" event. One doesn't infringe on the copyright, the other does.

Sanrio has copyright infringement suits filed in a couple of courts in the U.S. right now - one in California against Does 1-50 for infringing on Sanrio's animated programs, and one against "Definitely Divas," an Oklahoma beauty pageant that has been using the "Hello Kitty" image on tiaras and trophies and in promotional material.

Sanrio, itself, was sued for copyright infringement in 2010, by the creator of "Miffy." See Mercis v Sanrio. Miffy creator Dick Bruna claimed Hello Kitty's friend, Cathy the bunny, was substantially similar to Bruna's character Miffy (the noses are totally different ).

The suit was interrupted by Japan's earthquake and tsunami. Sanrio agreed to stop using the Cathy character so Bruna decided to drop the suit, and both Bruna and Sanrio used the money they would have used in the lawsuit to donate to victims of the disaster instead.

The First Sale Doctrine allows for you to sell an item you have legally purchased (or to give it away or to throw it away).

If you were sent a cease and desist, you may wish to have an attorney look over both the notice and your promotional materials.

I did read about both lawsuits. I can't believe Sanrio STILL alludes (in their last publicized quoted statement) to being "original" in their Kathy character.

The Definitely Divas were pretty brazed to go ahead with "custom" trophies and what not. I saw a video of a little girl with her loot won at the pageant. What were these ladies thinking?

The C & D I received has false accusations and false info where they forbid me to give away their merchandise (that were verified as genuine) and disallow us from using posters and art that were also genuine. To me, they infringed on my rights under the Lanham Act.

BAD Kitty! lol
Thanks for your input!

 

[justalayman]

I did read about both lawsuits. I can't believe Sanrio STILL alludes (in their last publicized quoted statement) to being "original" in their Kathy character.

The Definitely Divas were pretty brazed to go ahead with "custom" trophies and what not. I saw a video of a little girl with her loot won at the pageant. What were these ladies thinking?

The C & D I received has false accusations and false info where they forbid me to give away their merchandise (that were verified as genuine) and disallow us from using posters and art that were also genuine. To me, they infringed on my rights under the Lanham Act.

BAD Kitty! lol
Thanks for your input!

Ok, let's look at this another way.


How much money do you have to defend yourself in court should they sue? I suspect your actions are what brought yourself to their attention. Now they have you in their sites, I suspect your refusal to comply will likely result in some legal action on their part. Since we know they do like the courts, I would take their threats very seriously.

Even if you are in the right, how much money are you willing to spend, or even have, to argue that point?

 

[wag6dd2a]

Ok, let's look at this another way.


How much money do you have to defend yourself in court should they sue? I suspect your actions are what brought yourself to their attention. Now they have you in their sites, I suspect your refusal to comply will likely result in some legal action on their part. Since we know they do like the courts, I would take their threats very seriously.

Even if you are in the right, how much money are you willing to spend, or even have, to argue that point?

Actually, I did comply even though I felt they had no right to direct my actions regarding disposal of "their" property, which I
LEGALLY obtained through a verified seller on a party supplier website--they sell these items in their store, too.

I was just raising a question as to how this company can tell me how to handle
my purchases after the first sale!! They said I couldn't give their products out, nor could I display their image.
And that I had to change my event's theme. I feel they sell party ware for the sole purpose of THEIR theme being the focus!
I read the wording very carefully and couldn't believe how they feel they have a right to their merchandise post first sale.
I should be able to burn it if I so choose. Posters are made to put on the wall, but i was forbidden to do so. I was saying that
fair use should come into play.

We suspect their source of info was from a rival company, as much of it was wrong.

My question was about their claim that I had no right to (and would violate copyright law) display
any posters I bought. Too, they demanded I change the event's theme. These false claims are what
another company sued them for. http://www.tabberone.com/Trademarks/HallOfShame/Sanrio/lawsuit/complaint.shtml

Any input is appreciated!!

 

[quincy]

wag6dd2a, you received a cease and desist and you complied with the demands made by Sanrio. Most people who receive demand letters from major companies like Sanrio (or Disney or the NFL) either are intimidated into settling or do the math and discover it is far cheaper to meet the demands and settle than to hire an attorney and fight. This is often the wisest course of action from a financial standpoint. When a major company takes an individual to court, the one guarantee is that defending against the claim will be costly.

Sanrio is not shy about filing suit against those they feel have infringed on their copyright or trademark rights. There are perhaps a dozen infringement suits filed by Sanrio so far this year against individuals who are probably not all that different than you. The defendants probably have never been sued before, many can't afford an attorney, most cannot believe they are being sued over their uses of legally purchased products. Unfortunately, many people believe the First Sale Doctrine and fair use cover far more than either of them cover.

Under copyright law, the First Sale Doctrine means that when you legally purchase a copyrighted item, you can sell or trade or throw away or give away or destroy that copyrighted item. The copyright holder still retains the rights in the work and it is infringement to, without authorization, reproduce the work, distribute the work, publicly perform the work, display the work, or create a derivative of the work.

Although the copyright act and courts have provided guidelines that one can go by to try and determine if a use of someone's copyrighted material is a fair use or not, ultimately fair use is decided by a court, this after a copyright owner has taken exception to one's use of their work and sued. Fair use is one of the trickier areas of copyright law.

With that said, if you believe that your uses of the "Hello Kitty" products in your theme-based events have been perfectly legal, have all of the facts reviewed by an attorney in your area. Perhaps a free initial consultation with an attorney or two or seeking a review of the facts through a law school clinic?

Some companies are definitely more aggressive than others when it comes to locating infringers and sending out cease and desist letters and suing. Some of their actions may have legal merit, others maybe not so much.

 

[wag6dd2a]

Hi Quincy,

Thanks for taking the time to give your input on my situation.
I'll try to find a free initial consult on this as there is a new twist to my story.
I'll definitely keep everyone posted on my pursuit!
Thanks again!