What is an “Ad” These Days?

–  Joseph I. Rosenbaum

On Friday, December 8, 2017, I had the privilege of presenting a seminar, hosted by Lawline, entitled “Augmented, Native and Interactive: The New World of Digital & Mobil Advertising.”  This was broadcast live on the Web and recorded for subsequent on demand viewing and was my second presentation at Lawline.  The first “Online & Mobile Digital Interactive Advertising: Video Games, Branded Entertainment, Native Advertising and Beyond” remains available as a web-based, on demand offering at Lawline.

This seminar provided an update on many of the concepts and principles discussed in the first program, including some basic principles of advertising law that applies in both the traditional and digital/mobile environment and provided updated information on game advertising – both advertising the game and in-game advertising – as well native advertising and guidance from the Federal Trade Commission.  This recent session also delved into a number of digital and mobile advertising issues that were not part of the first presentation, such as celebrity endorsements, bloggers, experts & consumer testimonials in social media, augmented reality and advertising in virtual worlds, programmatic buying and the current tensions in the industry concerning transparency and relationships between advertisers and integrated agencies.  You can view the slide images of my presentation “The New World of Digital & Mobil Advertising” and, of course, you can view the recorded session which is available exclusively through Lawline.

As always, if you need assistance or require any additional information, feel free to contact me, Joe Rosenbaum, at Rimon, P.C.

All Good Things Must . . . .

–          Dror Futter

So far this year, offerings of blockchain based tokens have raised over $3 billion and for a long time regulators seemed to be ignoring these Initial Coin Offerings (ICOs).  Indeed, some commentators asserted they were outside the scope of government regulation.

This past summer, the Securities and Exchange Commission (SEC) began to take aim.  While the SEC has not yet provided detailed guidance as to which tokens would be categorized as securities and which considered “utility tokens” (outside the SEC’s jurisdiction), the SEC has indicated such tokens can be securities, basing its determinations on a ‘facts and circumstances’ analysis.  Having said that, SEC Chairman Jay Clayton reportedly deviated from prepared remarks earlier this month and said: “I have yet to see an ICO that doesn’t have a sufficient number of hallmarks of a security.

Since the summer, China and South Korea have banned ICOs, while  Canada, the UK, Switzerland, Australia and most recently the EU, issued SEC-like guidance stressing that tokens may be securities and as a result, subject to the oversight of securities regulators.

In addition, the first lawsuits related to ICOs have now been filed, reminding us that regulatory action is far from the only legal risk faced by ICO sponsors of ICOs.   In one of the current lawsuits,  only one of the claims is for the sale of unregistered securities, while other claims include allegations of fraud, false advertising and unfair competition under State law. Civil suits by disappointed investors and class action lawsuits relating to large scale offerings are likely to increase in the months and years ahead.

While recent developments don’t foretell the end of ICOs, they highlight more than the typical significant legal and regulatory risks associated with early stage venture investing.  Indeed, investors may not be able to rely on the same types of legal protections they might obtain when acquiring conventional securities.  Even after the initial issuance of these ‘tokens,’ their resale could raise even more issues and compliance may affect liquidity and valuation.  In an uncertain regulatory environment, risk mitigation is an important element of counseling clients, but hardly a basis for avoiding risk altogether and clients and their lawyers have good reason to be cautious. In fact, even creating an impression that an ICO has been ‘blessed’ by lawyers may not make it clear that opinions have a significant level of assumptions, qualifications and caveats well beyond routine legal opinions.

This posting was adapted and extracted from a more detailed Client Alert written by Dror Futter, a New York-New Jersey based Partner at Rimon, P.C.  You can read the entire alert, entitled “Spoiler Alert: ICOs – The “Good Times” May Be Ending,” and if you need more information, feel free to contact Dror Futter  directly. As always, if you need any assistance you can always contact me, Joe Rosenbaum, a New York based Partner at Rimon,  or any of the lawyers at Rimon with whom you regularly work.

Global Social Media Handbook

I am proud to be among the 22 legal professionals, including 7 of my colleagues at Rimon, who contributed and co-authored a new book entitled Handbook on Global Social Media Law for Business Lawyers, published by ABA Publishing. This comprehensive work, sponsored by the Business Law Section of the American Bar Association, was co-edited by Valerie Surgenor, a partner in the Glasgow, Scotland, law firm MacRoberts LLP and John Isaza, my friend and partner here at Rimon, P.C.   Although principally focused on the United States, there are contributions from foreign lawyers in key regions around the world, including Canada, the European Union, Australia, Russia and Asia.

The Handbook deals with national and international law principles and emerging issues related to social media law, ethics, compliance and governance, including cybersecurity, cyber terrorism and risk management in a social media environment (e.g., hacking, corporate espionage, data loss and data breach); intellectual property issues in social media;  defamation, “fake news” and social media;  implementation of a social media crisis plan; use of social media as a tool in recruitment of employees and the privacy implications to employers;  promotional, endorsement and social media disclosure guidelines promulgated by the Federal Trade Commission in the US; and recent trends in UK and European social media legislation and regulation.  There is a separate chapter that discusses information and records management within the context of social media.

If you are interested, you can order a copy directly from the ABA (Handbook on Global Social Media Law for Business Lawyers) and of course, if you need more information or want to discuss your particular requirements with knowledgeable and experienced professionals, feel free to reach out to me, Joe Rosenbaum, or to any of the lawyers at Rimon with whom you work with regularly.

 

Social Media: Celebrities & Paid Endorsements

On Thursday, April 6, 2017, I had the privilege of participating and presenting, together with a panel of distinguished lawyers, on the subject of the legal issues, implications, challenges and opportunities resulting from the use of celebrities in social media to provide endorsements for products and services.  My partner, John Isaza, who heads the Records and Information Governance practice at Rimon Law, chaired the session sponsored by the Cyberlaw Committee.  The program was held in New Orleans as part of the ABA Business Law Section Spring Meeting and the other presenters and panelists were Adam Nadelhaft, a senior litigation associate in the Washington office of Winston & Strawn LLP and Valerie Surgenor, a partner in the Glasgow, Scotland, law firm MacRoberts LLP.

In addition to my presentation on the use of celebrities in social media for endorsements, marketing and promotional purposes, Adam reviewed the law relating to paid endorsements and ‘buying buzz’ on social media, whilst Valerie focused on the similarities and differences in approach taken by UK and EU law.

You can view and download a personal copy of the presentation in PDF form right here “2017.04.06 Keys to Celebrity & Paid Endorsements in Social Media – Presentation at ABA Spring Meeting.

As always, if you have questions or want more information, feel free to contact me, Joe Rosenbaum, at Rimon Law.

 

 

FCC Drops ‘App’ Plan to Open Set-Top Boxes

–  Joe Rosenbaum

The Federal Communications Commission (FCC), under its new Chairman Ajit Pai, removed from its list of items for consideration, a proposal originally put forth by prior Chairman Tom Wheeler that would have allowed consumers to access pay-TV content on third-party devices.  Previous Chairman Wheeler’s original proposal took an “apps” based approach, but also included a licensing scheme that would require implementation of a standardized license for placing apps on such platforms or devices.

Critics, however, noted this particular proposal would actually have the opposite effect and more restrictively limit the choices available to consumers.  The original proposal also put the FCC in the position of acting as supervisory authority in order to ensure, in each case, that such a license wouldn’t harm competition.  Critics immediately raised concerns over the need for such intrusion by the FCC at all (some raised questions regarding the authority of the FCC to require or supervise such a licensing scheme), with many preferring to simply get rid of restrictions and limitations on access devices altogether.

While the FCC has removed the proposal from its list of items being considered for a vote, it remains on the Commission’s circulation list. Thus, the FCC’s action removes the proposal from immediate consideration, but doesn’t close the file officially – something over which industry groups remain concerned.   Their concerns continue to relate to the uncertainty of having a proposal still open for consideration, which, if resurrected, could pose problems for many in the industry, including distributors and content creators whose existing contracts might be in violation of such a new FCC requirement or policy.  Stay tuned.

Legal Bytes – A New Beginning

A long time ago in a galaxy far, far away……  oops, wrong beginning.

Welcome to the new Legal Bytes blog.  As many of you know, my Legal Bytes blog has been dormant after my recent transition to Rimon, P.C..  Getting set up, ensuring smooth transitions for clients, enhancing the look and feel of the blog has taken a longer than I hoped, but hopefully the bugs are out of the system and it’s now up to me to try my best to make the new Legal Bytes blog worth the wait.  For newcomers, buckle your seatbelts – this isn’t your ordinary legal blog!

What happened? Why does it matter? How does or could it affect you?  Inquiring minds always want to know and in the process of trying to answer those questions for you, I will always try to illuminate and perhaps also entertain you.   In the coming months I’ll entice you into regular readership, enlighten you with timely content, addict you with my trivia contests, entice you to keep in touch and most of all, try to help you better understand how developments in the law and regulation may affect you.

I intend to continue Light Bytes, with interesting quotes and sayings that pique my interest and hopefully yours.  Of course, there was never a question about my trivia contests. After all, who else but a lawyer could call it “Useless But Compelling Facts”?  We have once again made arrangements with the International Law Office (ILO) based in London. I am privileged to have been re-appointed as Editor and exclusive content coordinator for their U.S. Media, Marketing, Sports & Entertainment Newsletter.  Although there will be content you will see exclusively in the ILO newsletter, you may also see many of our Legal Bytes articles re-purposed and ‘internationalized’ in collaboration with much appreciated work of the ILO editorial staff.  I am again excited to be working with such a valued organization and truly great people – shout out to Carolyn Boyle, my Editorial contact.

Want to know what’s on my radar for the year ahead – I won’t spoil all the surprises, drone on about drones, nor will I keep my head in the clouds or the crowds.  I am fascinated by the legal implications of the Internet with Things (yes, I replaced ‘Of’ with “With”).  I’m also concerned about cybersecurity and data protection.   I am intrigued by the growing robustness of augmented reality, which means I don’t have to walk around with those funny goggles or a digital scuba mask to experience the virtual world.  Mobile technology is transforming our world – making digital content, e-commerce and communication available to billions of people that had previously never seen a television, had a bank account or used a telephone.  I would be remiss not to mention social media – maturing and increasingly commercialized – further blurring the distinctions between information, entertainment and advertising; between me as an individual and an employee; between me at play and at work; and between my trademarks and my reputation; and between my insatiable desire to tell the world and my seemingly paradoxical concern over my privacy!

It is a brave new world – so much to know and so much to keep up with.

So stay tuned, and as always, thank you for reading.

The Paradox of Illumination

I first heard about the paradox of illumination from Lee Loevinger, an extraordinary gentleman I was privileged to know professionally.  Lee was a multi-faceted, multi-talented, thought-provoking lawyer whose sage advice and stimulating ideas continue to resonate with those honored to have known him, and everyone else wise enough to read his work and the words he left behind.

In a nutshell, the paradox of illumination is extraordinarily complex, but simple to describe.  Much like Albert Einstein who, when asked about his theory of relativity and the notion that time is not constant, described it in personal terms: if a man is at dinner for 10 minutes with a beautiful woman, it seems like a fleeting instant; but sit on a burning hot stove for 10 minutes and it seems like an eternity :).

The paradox of illumination can similarly be described on a personal level.  Sit in completely dark room.  Really.  Completely dark.  What can you see?  Nothing.  You know little about your surroundings and can only sense your own body – in fact, you don’t even know how far your surroundings extend beyond your immediate sensations.

Now light a match.  The circle of illumination allows you to see a little of what is around you – but the perimeter and beyond are still dark.  Now light a candle.  The circle of what you can see illuminated by the light is larger than before, but the size of the perimeter beyond which you cannot see is also a lot larger than before.  The larger the light, the larger the area of illumination, but larger by far is the perimeter beyond which we know nothing.

The more we can see and the more we know and understand about the world around us, the larger the amount becomes that we don’t know.  In other words, as the circle of our knowledge grows, so does the amount of knowledge we cannot see and don’t know.  The paradox of illumination is the paradox of knowledge.  Perhaps that is why Michelangelo, when he was more than 87 years old, still said, “Ancora Imparo” (I am still learning).

Curiosity

Curiosity requires a sense of inquisitiveness.

Not all inquiries reflect curiosity, curiosity is inquisitive by nature.

Curiosity is the desire to learn by asking questions, dissecting, examining, exploring and investigating.

Curiosity is at the heart of most experimentation, and to be truly satisfying requires the ability to avoid preconceived ideas or foregone conclusions, but not necessarily ignoring them.

Stephen Hawking once said that “The greatest enemy of knowledge is not ignorance, it is the illusion of knowledge.”

Curiosity is a recognition of what we don’t know and the hope that by exploring the unknown, we may learn and discover new questions to ask.

It is the paradox of illumination – but more on that next time.

Thought Leadership

Thought leadership is a state of being in which one or more individuals articulate innovative ideas – ideas that stimulate thought and are futuristic or leading-edge.

Thought leadership requires confidence and a willingness to share ideas in the form of insights and principles that inform and guide future considerations.

Thought leadership is often controversial. New or different ideas, like innovative technology, can cause evolutionary change, but can also create disruptive or revolutionary change.

Although not all thought leadership must be actionable, it is often the basis for a re-evaluation of existing pathways, and a guidepost for new roads ahead.

2016 Metamorphosis *

Legal Bytes will soon morph** and undergo a transformation***

Watch For It

*    Metamorphosis: A noticeable change in character, appearance, function or condition.

**    Morph: To undergo dramatic change in a seamless and barely noticeable fashion.

*** Transformation: A marked change in appearance or character, especially for the better.