In a recent Corporate Counsel article, the authors describe a Federal Trade Commission ruling about the disclosure of connections between corporate advertisers and those who shill, directly or indirectly, the advertisers’ wares. 

In this particular case, a media firm working for Hyundai Motor America had given certain bloggers gift certificates as an incentive to include links to Hyundai advertising videos in their blogs and/or to comment, in advance, on Hyundai’s 2011 Super Bowl advertisements.  Some of the bloggers had not disclosed to their readers that the media firm had provided these (admittedly minimal) incentives for the bloggers to drop Hyundai’s name into their blogs.

Problem was, Section 5 of the Federal Trade Communications Act requires the disclosure of a material connection between an advertiser and an endorser, when such a relationship is not otherwise apparent from the communications containing the endorsement.  See 15 U.S.C. §45.  The FTC has explained this requirement in some detail in its aptly named “Guides Concerning the Use of Endorsements and Testimonials in Advertising,” found at 16 C.F.R. Part 255.

Fortunately for Hyundai, the FTC decided not to punish it for the conduct of the outside media firm, because (1) Hyundai had a robust corporate compliance program in place that barred such conduct, and (2) neither Hyundai nor the media firm had intended to deceive consumers.  The authors then use this little tale to point up the need for corporate compliance programs, particularly in the areas of antitrust and consumer protection (noting, ominously, that federal criminal antitrust fines exceeded $1 biiiillllion dollars in 2011).

The article, and the FTC’s investigation, raise a couple of interesting issues.  First, yes, I do believe that corporate compliance programs in the “Age of Compliance” serve multiple purposes, not the least of which is to meet the Government’s expectation that your clients have them.  Indeed, I, myself, have written on this topic in the past.  (FTC:  Please note my full disclosure of the connection between Me The Blogger and Me The Author of the Article, in case that wasn’t otherwise obvious.)  Having just attended an ABA conference that included an in-house counsel panel discussion on this topic, however, one might reasonably wonder just how much good such programs do.  On the one hand, they may prevent shenanigans before said shenanigans occur.  On the other, and as some in-house counsel noted at the conference, when was the last time you heard of the Government cutting a Fortune 500 company any slack in a criminal case, just because it had an expensive compliance program in place?  Just sayin’.

Second, and I have to ask:  Is this whole FTC thing just stupid?  According to the article, the bloggers were commenting on, and including links to, Hyundai Super Bowl ads.  Does that mean they were vouching for the quality and desirability of Hyundai vehicles?  And even if they were, ask yourselves these questions:  (1) Do you trust bloggers to give you the unbiased, unvarnished truth about anything?  I mean, they’re bloggers, for goodness sake.  (2) Do you buy products based on what someone says about the company’s advertisements?  (3) Do you buy a car because one guy in the local paper writes a good review of it?  (4) Is the FTC’s investigation patronizing?  Is this the Nanny State run amok?  Are we truly too stupid to decide for ourselves whether we like a commercial and want to buy the product?  Or whether we should believe, and/or agree with, anything that Me The Blogger just wrote?  Just sayin’.

Kurt Stitcher, a trial lawyer and former federal prosecutor, is a Partner in the Chicago office of Faegre Baker Daniels LLP.  Kurt's practice encompasses white collar defense and investigations, product liability, and commercial/business litigation.  He can be reached at kurt.stitcher@faegrebd.com or at 312-212-6526.
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The U.S. Supreme Court in Shute v. Carnival Cruise Lines, 499 U.S. 585 (1991) held the Shutes, who were injured on a Carnival Cruise ship in waters off Mexico, must file suit in Florida pursuant to the forum selection provision printed on the back of their ticket.   The Shutes filed suit in their home state of Washington.  The cruise ship departed from California.  Shute is still one of the most far reaching holdings enforcing adhesion-like forum selection provisions.  The Shutes also had a strong argument that they lacked notice of the forum selection/choice of law provisions.  

In the recent running aground of the Italian Costa Concordia operated by Costa Crocier, which is controlled by Carnival, the ship departed near Rome.  Approximately 120 United States citizens were on board and two may still be missing.  With respect to notice of the forum selection and choice of law provisions, information is much easier to obtain now than it was when Shute was decided.  For example, Carnival now posts its ticket contract online.  Carnival’s contract includes a mandatory arbitration provision as well as a forum selection clause, limits on liability, and restricted statute of limitations periods.   Costa Crocier also posts their ticket contract online.  The Costa contract includes forum selection, arbitration and choice of law provisions at Section 2.    

For claims involving personal injury or death, the Costa contract includes a forum selection clause for Broward County, Florida for cruises that depart from, visit or return to a U.S. port.  In contrast, U.S. port related economic loss claims are subject to an arbitration provision.  Under the Costa contract, any cruise that does not depart from, visit or return to a U.S. port, all claims must be filed in Genoa, Italy, and Italian law applies.  The Costa contract also includes a jury waiver provision.  

When a district court applies a forum selection provision, it usually does so via 28 U.S.C. § 1404, whereas a state court would dismiss the case.  Italy is not a district to which a federal case can be transferred, so dismissal is likely remedy if court enforces forum selection provisions for U.S. citizen cases filed in their home state, or even in Florida.  See e.g., Albemarle Corp. v. Astrazeneca U.K, Ltd., 628 F.3d 643, 651 (4th Cir. 2010) (applying English law / federal common law to enforce forum selection clause via dismissal).  Albemarle also suggests that Costa Concordia related claims filed in the U.S. would still be analyzed under the four factor “unreasonableness” test set forth in M/S Bremen v. Zapata Off–Shore Co., 407 U.S. 1 (1972) (holding forum selection clause may be found unreasonable if “(1) [its] formation was induced by fraud or over-reaching; (2) the complaining party ‘will for all practical purposes be deprived of his day in court’ because of the grave inconvenience or un-fairness of the selected forum; (3) the fundamental unfairness of the chosen law may deprive the plaintiff of a remedy; or (4) [its] enforcement would contravene a strong public policy of the forum state.”).     

Here, proponents of avoiding Costa Crocier’s forum selection clause and choice of Italian law may argue factors two, three and four.  An analysis of Italian law related to factor three is beyond the scope of this blog post!
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On January 16, 2012, attorneys filed a class action against Amazon.com relating to an online hacking attack that compromised the personal information of up to 24 million customers of its online shoe retailer, Zappos.com.  Data Breach Legal Watch reported that less than 24 hours after the breach occurred, the plaintiffs’ bar had already filed a Complaint claiming that the attack resulted in the exposure of the following:

Names;
Addresses;
Telephone Numbers;
Email Addresses;
Passwords (cryptographically scrambled); and
The Last 4 Digits of Credit Card Numbers

The attack did not expose the social security numbers or complete credit card numbers of customers.  Nonetheless, the Complaint claims that customers will be exposed to “phishing” attacks that are tailored to the compromised information, as well as anxiety, emotional distress and loss of privacy.  Further, similar to the Sony data breach case, the Complaint seeks compensation for the costs of identity theft insurance and credit monitoring.  
Data Breach Legal Watch notes that, aside from the Hannaford decision that the 1st Circuit recently published, courts have generally rejected fear of identity theft claims, requiring a showing of some actual harm to the individuals affected by the breach.  This breach, however, did not expose complete credit card numbers like in Hannaford or several of the hacking attacks directed at Sony.  It would seem that Zappos is unlikely to be on the hook for anything beyond being forced into providing identity protection and/or monitoring for its customers.  However, the cumulative effect of these data breaches and the class actions that inevitably follow will likely be greater data security within internet industries.
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Listen up, all you internet users (which is basically everybody but my mother, who still views the Internet as the work of the devil, and will quote from the book of Revelation in support of her theory).  Three bills you need to be aware of, because they may change the way you view (or more correctly, the way you are allowed to view) the Internet.  and from what I’m reading, there are some pretty darned big sites and companies that are ready to either “go dark” in protest (Wikipedia, for example, which is where I do most of my legal research) or lend a big supporting hand to the protests of the current bills being considered (Google is one – who can live a day without Googling something?  I mean for cryin’ out loud the Company has made itself into a verb!!).  Those bills are:

1.  Stop Online Piracy Act (or “SOPA”).

2.  Preventing Real Online Threats to Economic Creativity and Theft of Intellectual Property Act (PROTECT IP or PIPA, which is easier but less descriptive.  I’ve never seen a bill with a name so long it requires not one but two abbreviations).

3.  The Online Protection & ENforcement of Digital Trade Act (or “OPEN” Act – again- what is it with thinking up names for these acts? But I guess “OPAENDTA” doesn’t quite roll off the toungue).  

Sounds simple enough, right?  I mean, who doesn’t want to stop people from stealing stuff and using the Internet to get away with it? Uh, hold on--not so fast there, scooter.   Here’s a quick overview, along with the pretty darned serious problems that exist.  The main thought is that there is a serious problem (which there really is) regarding piracy on the Internet.  As paraphrased from the OPEN site (http://keepthewebopen.com) the problem can be illustrated like this: downloading a movie from a foreign website is like buying a foreign product, but there really aren’t any trade laws equipped to deal with the online purchases from foreign sites.  

The SOPA bill allows the Department of Justice and copyright holders to seek court orders against websites accused of enabling or facilitating copyright infringement.  The court order could include barring online advertising networks and payment facilitators from doing business with the allegedly infringing website, barring search engines from linking to such sites, and requiring Internet service providers to block access to such sites. The bill would make unauthorized streaming of copyrighted content a crime, with a maximum penalty of five years in prison for ten such infringements within six months. The bill also gives immunity to Internet services that voluntarily take action against websites dedicated to infringement, while making liable for damages any copyright holder who knowingly misrepresents that a website is dedicated to infringement.

Proponents of SOPA say it protects the intellectual property market and corresponding industry, jobs and revenue, and is necessary to bolster enforcement of copyright laws, especially against foreign websites.   Opponents say that it violates the First Amendment, is Internet censorship, and will threaten whistle-blowing and other free speech actions. A number of protest actions have been planned, including boycotts of companies that support the legislation, and major Internet companies “going dark” for a day (coinciding with hearing dates).  

PIPA (or ‘PROTECT IP”, or whatever else you want to call it), appears to be SOPA’s twin, but in the Senate.   

OPEN is, from what I can glean, a “bipartisan” bill written in response to the harsh criticism SOPA is receiving. (I always tend to squint my eyes when I see the word “bipartisan”).  
Even the White House has entered the fray, with a post just a few days ago regarding the subject.  Here’s a part of that post:  

Any effort to combat online piracy must guard against the risk of online censorship of lawful activity and must not inhibit innovation by our dynamic businesses large and small.

And when the White House says “whoa”, you know there is likely a heckuva lot of pressure (political, economic, you name it) coming down against the proposed Act.  

So who’s right?  Well, everybody.  Is there a lot of intellectual property piracy on the open internet seas?  Absolutely.  Does it need to be dealt with?  No question.  Do the SOPA and PIPA bills overreach and create more problems than they purport to solve?  Yep.  The bills do use the U.S. Court system to create a type of “internet police” as it pertains to copyrighted material.  They also greatly increase the work flowing to litigators and litigation firms among other things, driving up (WAY up) the cost of doing business, which will most certainly hurt businesses generally and small businesses especially,  because whether they are involved or not, others will be so involved, which will drive up the overall cost of products across the board as the increased cost is passed on to the consumer as much as possible.  And how/why is it that the US Courts will be essentially graced with the responsibility of policing the Internet for the entire world?    
Now that I’ve lit the fire and started the debate, feel free to discuss amongst yourselves (hey- it isn’t my job to give answers, just point out the questions).    
  
Jeffrey Curran is Of Counsel with Gable Gotwals in Oklahoma City, OK

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Welcome one and all to something that will undoubtedly change both history and the world as we know it:  the first installment of what will hopefully be a regular publication which we have decided to call From the “What the…?”File.  Basically, I’ll be picking up on out-of-the-mainstream stuff which any of us could have lived without knowing, but it will at least be stuff that is both interesting and has a bit of a twist.  At least in theory, anyway.  So, without further ado, here goes the collector’s item first issue.  I can confidentially say that that when you’re done, you too will be saying “What the…?”

 

European Copyright – The Write Stuff?

OK, not many of us care about Euro Copyright issues – I fully admit that.  But this is actually kind of interesting (even if it is Euro-centric).  It seems that way back in 2006, a Hollywood-funded, Netherlands-based anti-piracy group (known as ‘BREIN’, and please don’t ask me what it stands for) asked a musician to compose music for an anti-piracy video. The video in question was to be shown at a local film festival, and under these strict conditions the composer accepted the job.

However, the anti-piracy ad was recycled for various other purposes apparently without the composer’s permission. When the composer bought a Harry Potter DVD early 2007 (presumably a licensed one), he noticed that the campaign video with his music was on it. According to the composer And this was no isolated incident. He is now claiming that his work has been used on tens of millions of Dutch DVDs, without him receiving any compensation for it. The total claimed lost revenue is roughly a million Euros (which is about $1.3 mil US). 

But wait -- there’s more.  You’d think that the guy would have received some collection support from local rights societies.  You’d think.  But soon after he discovered the unauthorized distribution and after contacting a local music royalty collection agency not only did he not receive any royalties, one of their Board members offered to help ONLY if the composer assigned all his rights to the organization AND gave the guy a third of what was collected.   Ultimately the board member resigned and the anti-piracy group denied it was their fault in the first place.  But what’s more shocking – that anti-pirates are pirates themselves, or that there is corruption in the music industry? Hmmm – tough question.

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A recent Seventh Circuit opinion indicates that plaintiffs' counsel in a class action suit that engages in misconduct will not likely be able to adequately represent the class.  In Creative Montessori Learning Centers v. Ashford Gear LLC, No. 11-8020 (7th Cir. Nov. 22, 2011), Judge Posner's opinion overturned the district court's class certification because the district court applied a standard that was too lenient for misconduct on the part of plaintiffs' counsel. 

The named plaintiff, Creative Montessori Learning Centers, sued Ashford Gear LLC for violating the Telephone Consumer Protection Act, 47 U.S.C. § 227.  The Act provides that the recipient of an unsolicited fax can be compensated up to $1,500 for each fax.  There are 14,573 other members of the class who collectively claim to have received 22,222 unsolicited faxes. 

Plaintiffs' attorneys, attorneys from Bock and Hatch, specialize in bringing suits under the Act, but used some unethical tactics to initiate the suit.  The attorneys contacted a fax broadcasting company that faxes advertisements on behalf of advertisers.  Then the attorneys asked the broadcasting company for information about faxes it had sent – and promised to keep the information confidential.  But instead of keeping the information confidential, the attorneys used the information to drum up lawsuits.  The attorneys found violators of the Act and potential plaintiffs.  Notably, the attorneys found Montessori, the named plaintiff, and misleadingly told them that a class action already existed.     

This behavior prompted defense attorneys to argue that the class should not be certified because plaintiffs' attorneys behaved unethically and would not be able to adequately represent the class.  However, the district court applied an egregious misconduct standard, and found that the conduct was not egregious and certified the class.  On appeal, the Seventh Circuit applied a different standard. 

The Seventh Circuit emphasized the importance of ensuring that plaintiffs' counsel can adequately represent a class.  The court noted that class plaintiffs lack the knowledge and monetary stake to allow them to monitor their lawyers.  Therefore, courts have to take great care in ensuring that plaintiffs' counsel will fulfill their fiduciary duties.  The court then held that the district court erred by applying an egregious misconduct standard; rather, any misconduct on behalf of plaintiffs' counsel should create a serious doubt that plaintiffs' counsel is fit to represent a class.  The court then remanded the case back to the district court so the district court could determine whether the class should be certified. 

With this decision, the Seventh Circuit is leaving less room for unethical conduct on the part of plaintiffs' counsel in class action litigation.  It is a decision that will likely be welcomed by defense counsel and class plaintiffs alike

William F. Auther is a partner with an active trial practice in business litigation and Kelly M. McInroy is an associate in the Phoenix office of Bowman and Brooke LLP.  

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It is well known that manufacturers do not have to make the safest possible products.  Rather, manufacturers are prohibited from making unreasonably dangerous products.  And one of the biggest factors in determining whether or not a product is unreasonably dangerous is the existence of a feasible alternative design.  Concerning for manufacturers though, the First Circuit just upheld a verdict against a manufacturer even though the plaintiff failed to prove the existence of a feasible alternative design.    

In Osorio v. One World Tech., Inc., No. 10-1824 (1st Cir. Oct. 5, 2011), the plaintiff sued the maker of a table saw after he cut his arm while using the saw.  The plaintiff argued that the saw should have contained a mechanism that stops and retracts the blade when the blade comes into contact with flesh.  To bolster this argument, the plaintiff brought the inventor of the mechanism to testify on his behalf. 

The manufacturer argued that the mechanism is not a feasible alternative design.  The mechanism makes the saw larger and heavier, which would substantially change the use of the light, portable saw.  Also, the mechanism has a tendency to retract when the blade gets wet, meaning that it cannot be used outside.   Further, each time the blade retracts, the blade must be replaced.  Additionally, the mechanism makes the $179 saw almost twice as expensive, adding $150 to the retail price.  It is no surprise then that none of the major saw manufacturers use the mechanism. 

Even after hearing all of this information, the jury found that the saw was defective and awarded the plaintiff $1.5 million.  The manufacturer appealed, arguing that the plaintiff failed to prove the existence of a feasible alternative design.  On appeal, the First Circuit determined that a plaintiff does not have to prove the existence of a feasible alternative design to win a design defect claim.  Rather, the existence of a feasible alternative design is just one factor in the "unreasonably dangerous" determination.  As such, the court upheld the jury's verdict. 

If you're shaking your head, you're not alone.  While this case may not sit well with manufacturers, at least it provides a reminder that they should think twice before trying design defect cases in states where plaintiffs do not have to prove the existence of a feasible alternative design.   

 

William F. Auther is a partner with an active trial practice in product liability and business litigation and Kelly M. McInroy is an associate in the Phoenix office of Bowman and Brooke LLP.  

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In 1997, New York passed N.Y. Unconsolidated Law §8905-a, a statute that prohibits professional “combative sports,” including mixed-martial arts (MMA) events and associated activities.  Even speech that promotes MMA is barred.  On Nov. 15th, after more than a decade of failed efforts trying to have the law repealed via legislative means, several plaintiffs filed suit in the SDNY challenging the constitutionality of the statute.  They include (1) Zuffa, LLC, d/b/a the Ultimate Fighting Championship (UFC), the largest promoter of MMA in the U.S., and (2) several MMA fighters, including Ms. Gina Carano, often called the “Face of Women’s MMA,” #16 on Maxim Magazine’s 2009 “Hot 100” list, and, hopefully, an incurable future stalker of mine.  They allege that the law, which targets only pro MMA and exempts boxing and standard martial arts altogether, violates several constitutional protections, including the freedom of speech and equal-protection clause.  The UFC wants to stage events in New York, regardless of how that is made legal.  Says UFC Vice President Mark Ratner, "Every arena small and big has been asking us to come, and it's just nonsensical that the sport has not been approved yet."  Mr. Ratner likely will get his wish soon.  The law looks to be doomed, either through judicial action or via the lawmakers and other forces that brought it to life.  


1.  History and Growth of MMA

MMA, which involves both striking and grappling, often is described as a combination of boxing, Greco-Roman wrestling, and at least a half-dozen different martial arts, including kickboxing, jiu-jitsu, and judo.  Fighters face off in a boxing-type ring and score points by landing blows.  As in boxing, MMA matches end when one combatant (a) "taps out" - meaning he or she leaves the ring voluntarily – , (b) is knocked out, or (c) when time expires, at which judges select the winner. 

MMA traces its roots both to Greek and Roman sport of  Pankration, which featured a combination of grappling and striking skills, and the various forms of martial arts that evolved in East Asia over a millennia ago.  In the 19th and early 20th centuries, it remained a minor sport in many parts of the world, but steadily gained momentum in Japan and Brazil.  The late Bruce Lee is sometimes called the “father” of MMA because he combined the best of boxing, karate, judo, and other martial arts to create “the style of no style.”  In 1990, Mr. Arthur Davie, a Los Angeles advertising executive, former Marine, and fan of MMA since seeing a bout between an Indian wrestler and a Thai boxer when on leave during duty in Vietnam, began exploring the idea of whether MMA could be brought to the greater world stage.  In 1993, with the help of several people, including the Gracies, a famous Brazilian family known for its dominance of Vale Tudo ("anything goes" in Portuguese), Mr. Davie “officially” introduced MMA in the U.S. 

During its early years in the U.S., MMA was a lightly-regulated and self-described “no holds barred” sport.  It offered a feral, non-stop, all-body combat alternative to the hands-only and regularly-boring boxing, which often involved bouts dominated by opponents leaning on one another in something akin to a slow and sweaty prom dance.  MMA was limited to pay-per-view and obscure cable channels.  Over the next 15 years, it steadily grew, not only in terms of popularity, but in organization, safety, and professionalism.  In 2008, CBS introduced MMA to network TV via an EliteXC event that drew 6.8M viewers.  FOX recently inked a seven-year deal with UFC and hosted a network event that peaked with 8.8M viewers.  MMA now reportedly appears on television in 155 countries and in 22 different languages.  In January, approximately 1.4 million people watched a single MMA event on pay-per-view that reportedly grossed $110 million.  HBO is now allegedly interested in airing MMA events.  No longer a pariah sport, it is now sponsored by the U.S. Marines, Dodge, and Harley-Davidson.  

2.  Of Politics and Pugilists

MMA’s early efforts to gain popularity created a polarizing effect that ultimately led to the creation of §8905-a.  Having no advertising budget, it promoted the “savagery” of MMA and adopted catch phrases such as “no rules” and "Two men enter.  One man leaves."  In so doing, it created shock value that turned legitimate press into free advertising.  MMA was the real version of the fake “wrestling” that Americans had been watching for decades.  Like a highway accident, the MMA fascinated some and repulsed others.  Unfortunately, the “others” included concerned a large block of NY legislators, who compared MMA to cockfighting.  ''I think extreme fighting is disgusting. It's horrible," New York Mayor Rudy Giuliani said at the time. “[T]his is way beyond boxing. This is people brutalizing each other.''  Others politicians jumped on the bandwagon, and the law passed quickly.

Depending on whom you believe, other forces beyond the anti-violence crowd were at work.  New York was, and is, a world hub of professional boxing, having hosted at Madison Square Garden some of the greatest boxing matches of the 20th century.  Some supporters of MMA claim that NY politicians were overtly influenced by some of the most powerful people in the boxing industry, who viewed MMA as a threat to boxing’s future.  Former UFC promoter Campbell McLaren alleged that the enacting of the law “was done in a very illegal and bogus manner.”

3.  Legal Arguments

The plaintiffs argue that the ban is unconstitutionally vague, irrational, and violates various other protections, including the freedom of speech, the freedom of expression, the commerce clause, and the equal-protection clause.  

Irrationality and Equal Protection  

The plaintiffs claim that the law, if it ever was rational, is now really irrational because the claimed impetus for §8905-a, i.e., protecting professional MMA athletes from a no-rules barbarity, is all but gone.  They assert that today's professional MMA bouts are highly monitored and governed by new rules for fighter safety, including weight classes and timed rounds.  UFC even provides accident insurance for its athletes and covers injuries suffered both inside and outside of the gym or arena.  The plaintiffs also argue that MMA is actually safer than other, more mainstream contact sports, such as boxing, ice hockey, equestrian sports, football, and rodeo, all of which are legal in New York.  Further, they contend that with grappling and wrestling such an integral part of MMA, many fighter's careers can last much longer than those of boxers because fighters do something other than throw punches to the head and body.  Further, unlike football, opponents have to fight face-to-face, vastly reducing the likelihood of a blind-side hit.  

If supported by substantial evidence, all of this raises substantial equal-protection issues.  During a February 2011 interview with MMA radio, NY Assemblyman Robert Reilly (D-Latham), the loudest anti-MMA voice in the state, appeared to have conceded as much:  “Well, . . . I do want to not be, um . . . too contentious when I say this. . . . but today I don’t think professional boxing . . . would be legalized in many states today because of the danger to the fighters.”  

Nonsensical Law

The logic behind other aspects of the law is elusive.  Why does it only apply only professional MMA?  Says Barry Friedman, one of the plaintiffs’ attorneys, "Amateur bouts under the statute seem to be fine.   It's just professionals that are banned, so it sort of doesn't make any sense on its own terms."  Why is the mere promotion of professional MMA banned under the law?  Will New York citizens wilt if they see an ad for an MMA bout?  They already are able to watch MMA on television.  If the goal is to protect the populace from violent images, NY may as well try banning many other violent things, including violent movies, TV shows, and video games. 

Freedoms of Speech and Expression 

According to Atty. Friedman, no court has ever directly confronted the question of whether athletes have a First Amendment right to be seen in action.  “It’s martial artistry,” he said. “The nature of martial arts is a lot like dancing.”  "The First Amendment protects what's called expressive conduct, which is doing physical things that express ideas, with anything from a parade to a dance being protected.  Our argument here is that mixed-martial arts constitute expressive conduct.  I can't think of another example of a sport that's safe and regulated, and has been banned."  

Even if the law is found not to infringe on the freedoms of speech and expression, it is difficult to argue that it does not impinge upon personal liberties.  All pro MMA athletes are adults who freely choose to participate and operate in a controlled private environment.  As one online commenter stated, “What are we trying to do, protect fighters from themselves? What's next, New York legislating the amount of force used in hockey checks or football tackles?  Get the hell out of the way and let these adults do what they want to do.   The money [that pro MMA could bring to NY] is a secondary benefit.  Our liberty to do what we want, accepting the consequences, is the more important issue.”

4.  Time for Law to “Tap Out”

In one way or another, §8905-a is on its way out.  If the SDNY does not reject the statute, for one or more of the following reasons, others soon will succeed in having MMA exempted from it.  

First, in the midst of the worst national economy since the Great Depression and an NBA season that appears to be lost, New York, generally, and the Madison Square Garden owners and workers, especially, need every dime they can collect.  As stated by UFC CEO Lorenzo Fertitta, "Denying fighters the chance to exhibit their training and skills before a live audience and denying thousands of New Yorkers the ability to watch their favorite fighters perform live is not only an injustice to them, but to the local markets that would reap tremendous economic benefits from hosting competitions.”  Said Derek Crouse, of bleacherreport.com, “For a city that loves to tax everything, why wouldn’t they jump on the golden goose of the UFC, whose popularity is skyrocketing faster than anything in sports?”  Finally, with state budgets being slashed and all state employees being asked to do more with less, don’t the offices of the NY Atty. General and NY Dist. Atty. of New York and have better things to do than defend this statute? 

Second, the forces of business that donate to political campaigns eventually will convince NY lawmakers to rewrite the law.  With both CBS and FOX supporting MMA, other large media entities will not be far behind.  Further, expect the news arms of both companies to start reporting about the “ridiculous” NY law.  And if one needed any further sign that the Apocalypse is upon the supporters of §8905-a, on November 5th, USA Today reported that Don King is entering the realm of MMA.   That’s THE Don King - the face of boxing promotion for the last half-century and an ardent critic and detractor of MMA for the last two decades.  King now calls MMA a "sophisticated barbarism," and stated "I'm looking forward to doing [MMA], too, and creating a competition between the UFC and whatever I call the MMA company that I put together." He predicted that MMA will complement, but never overtake, the "sweet science" of boxing.  Ignore the sweet hype.  This is the functional equivalent of boxing leadership facing reality and throwing in the towel. 

Third, where economics and business lead, politics generally follow.  As a group, New York Republicans largely have supported MMA for years.  Several efforts to overturn the ban through legislation have stalled out for various political reasons, including the latest attempt over the summer.  In May 2011, the New York State Senate, which is slimly held by Republicans voted overwhelmingly (42-18) in favor of a bill that would sanction pro MMA, but the bill stalled in the Assembly Ways & Means Committee, which includes Mr. Reilly and reportedly is controlled by Democrats.  Mr. Reilly and his colleagues find themselves on an increasingly- lonely island.  Even the most liberal Democrats in the country are pushing for pro-MMA’s entry into New York.  In 2010, Harry Reid, Democratic Senator of UFC’s home state of Nevada, told the AP that UFC bouts were well-regulated “fair street fights” with “somebody watching every move [the athletes] make.”  He added, “I'm going to see what I can do to help [professional MMA] in New York.  I'm aware of the issue, . . . I know a few people in New York[, and] I'm going to see if I can talk a little sense to them.”  So far, sense has not prevailed. 

Bill Staar is a partner in the Boston office of Morrison Mahoney LLP, Chair of DRI's Sports Law & Entertainment Group and member of the Sporting Goods Manufacturers Association’s Legal Task Force.  He concentrates in the areas of product liability, construction disputes, toxic torts, and general business litigation. He also is a member of DRI's Product Liability, Commercial Litigation, and Construction Law Committees.

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Jamie Oliver, a chef and a child advocate focused on ensuring kids receive proper nutrition through their school lunch programs as well as at home, has a television show, Jamie Oliver’s Food Revolution, showing how he changes eating habits in school districts (this season he is in Los Angeles).  In each episode, he creates a visual showing the terrible foods kids are putting in their bodies.  It’s one thing to tell kids (or their parents) that fast food and processed food is bad for them, it is quite another to create a visual showing how bad it is, and creating such a powerful visual that it convinces those kids, their parents and the audience watching the show (including myself) how bad those foods are.  In a recent episode, he filled a family’s house with all the fast food they consume in a year.  Every square inch of furniture and floor was covered.  In another episode, he filled a school bus with sugar to show how much sugar the school board permitted in the kids lunch meals over a year.  It was powerful images like those that made folks change their minds and change their behavior.

When preparing for trial, we can take a page out of Jamie’s book, and think about what visuals (whether a photograph, a diagram, an animation, or some other representation) that encapsulates our theme and does so in such a powerful manner that the image we create carries through the trial, into the deliberation room and turns the jurors’ hearts and minds toward our view-point and toward our position.  Keep a file folder in your office drawer where you include pictures, images and ideas you clip from magazines and newspapers.  These images may later serve you at trial.

Being that it is Monday, my partner Craig Salner has his weekly tip for young lawyers.  This week he discusses the importance of getting involved with social networking.  You can find his post at http://csalner.wordpress.com/.

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An unnamed company has taken the first step in challenging the Consumer Product Safety Commission's (CPSC) online complaint database.  No information is currently listed in Pacer, the federal court filing system, but the Washington Post reported that a complaint was filed Monday in Maryland District Court.  The company that filed the suit is listed as "Company Doe" to protect its name – the exact reason that it filed the complaint in the first place. 

On August 14, 2008, the Consumer Product Safety Improvement Act became law and mandated that the CPSC create an online portal for customers to post complaints about products that can either injure children or pose fire, electrical, chemical, or mechanical hazards.  The Act sought to provide consumers with timely information about potentially unsafe products, so consumers would not have to wait for a recall to get the information.  However, the database has been criticized because of accuracy issues and the burden it places on manufacturers. 

Anyone can file a report in the database, found at www.SaferProducts.gov. , but a report is not eligible for publication unless it contains: (1) a description of the product; (2) the name of the manufacturer; (3) a description of the injury or risk of injury caused by the product; (4) the date that the incident occurred or risk of injury was discovered; (5) the type of reporter (consumer, agency, child service provider, etc.); (6) the reporter's name and address (this is not published); (7) the reporter's acknowledgement that the report is true and accurate; and (8) whether or not the reporter wants the information published. 

Once a report is filed online, the CPSC has five days to review it before sending it to the manufacturer.  However, the CPSC's "review" only entails ensuring that the minimum publication requirements have been met; the CPSC does not conduct any type of fact-finding investigation.  Instead, the burden is placed on the manufacturer to prove that the report is untrue, and it has just ten days to prove it.   If a report ends up being published, manufacturers can have their comments published with the report, but the CPSC does not always process comments in time to publish them the same day the report is published, and posting a comment is little consolation if a report is untrue. 

Since its inception, the database has been criticized for not requiring more information to reduce inaccuracies, such as a product serial number.  And the fact that manufacturers have to conduct all of the fact-finding and essentially prove themselves innocent seems a bit backwards considering anyone with access to a computer can file a report. 

Given these circumstances, it was only a matter of time before a company stepped up and challenged the system.  Consistent with argument that the database needlessly harms the reputation of manufacturers, the company has filed the lawsuit anonymously.  Whether or not the court will allow the company to remain "Company Doe" presents another question altogether.  But either way, this case could have major consequences for the CPSC database, and is definitely one to watch. 

William F. Auther is a partner with an active trial practice in product liability and business litigation and Kelly M. McInroy is a law clerk in the Phoenix office of Bowman and Brooke LLP.  

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