Licensing of Artists’ and Celebrities’ IP rights in Argentina
Licensing agreements include several rights and obligations between the licensor and the licensee/s, as well as the guarantee in favour of the licensee/s that the licensed content is free of limitations and is duly owned by the licensor or authorised by the owner to license said content subject to IP protection. Even when Argentina follows this practice and – in most instances – the content being licensed is protected, it may not be the case for certain artists and celebrities’ IP rights subject to a licence agreement.
There are many examples of well-known distinctive signs (such as brands, logos, iconography, photographs, paintings, and other works of art in general) that are used in many different ways to promote a product or service directly by the owner of the IP rights or conducted by a third party through the granting of a licence of said IP rights. Several brands – especially those regarded as well-known brands – are commercialised in a variety of consumer products, mainly for marketing and promotional purposes. However, in many cases, this line of business may bring strong revenues in addition to their core business. T-shirts, caps, backpacks, coasters, stickers, watches, mouse pads and toys are just a few examples of merchandising.
Owners of these distinctive signs usually seek and obtain trade mark and/or copyright protection in the countries or territories where the products are commercialized and/or in other jurisdictions where sales may take place in the short or medium term and/or where misappropriation or illegitimate uses by third parties are likely to take place.
It is of utmost importance to seek trade mark protection in the main categories (classes) of interest, in addition to other classes into which the different type of consumer products fall. By way of example, the Coca-Cola Company would protect their famous “COCA-COLA” brand in Class 32 (whereby soft drinks are classified) as well as in other classes such as Class 25 (t-shirts and clothing in general) and Class 16 (stickers and printed material in general).
However, this may not be the case for certain artists and celebrities who may have protected their name, logo, image and/or other distinctive sign in the class of main interest but not in other classes whereby products and/or services that are subject to a licence in favour of a licensee are classified.
Examples
It is very common to see t-shirts with images such as:
In recent years, brands, logos, photographs, works of art (or parts thereof), phrases and other distinctive signs have been applied to other types of products, such as cans or bottles of beer, vodka, gin, whiskey, rum and other alcoholic beverages, watchstraps, cell phone cases, necklaces and bracelets, temporary tattoos, purses and bags, mousepads, coasters. Examples include:
Limited editions and/or special editions
There has been a noticeable trend towards the licensing of different IP rights for use in limited editions and/or special editions that celebrate an anniversary or an important milestone in the career, life or work of an artist or a celebrity. Even when these types of editions are intended to last a short time, IP protection should be considered by the licensor so as to guarantee the licensee that there is no risk in using the licensed IP rights.
Several examples have been found in different countries, including Argentina, as follows.
Trade mark and copyright protection in Argentina
Two of the principal vehicles for IP rights protection are trade marks and copyrights. The main bodies of relevant legislation encountered when addressing issues concerning trade marks and copyrights are:
In Argentina, foreigners are granted the same legal rights as nationals with regard to the ownership of IP rights. They may apply for the registration of trade marks and copyrights under the same conditions as nationals.
Trade mark rights are territorial, so it is imperative to apply for and obtain their registration with the National Institute of Industrial Property (Instituto Nacional de la Propiedad Industrial, or INPI) in order to obtain ownership and ensure the enforceability of these rights. This does not specifically apply to copyrights.
Trade marks
Trade marks are governed by the Argentine Trade Mark Law No 22.362 (ATL) of 26 December 1980 (modified by Law No 27.444 of 30 May 2018). For the purposes of registration of trade marks, Argentina has adopted the international classification of goods and services corresponding to the Nice Agreement.
Section 1 of the ATL expressly indicates different types of signs that may be registered as a trade mark if they are distinctive enough to be considered trade marks. Said provision does not restrict the type of trade marks that can be protected under the ATL and leaves protection open to other types of signs that may be recognised as trade marks.
Section 1 of the ATL establishes that “the following may be registered as trade marks to distinguish products and services:
As regards ownership, Argentina follows the “attributive system” whereby the ownership of a trade mark and the right to its exclusive use are obtained only by a registration with the INPI (Section 4 of the ATL). However, Argentine courts have granted protection of unregistered trade marks based on notoriety and/or significant evidence of use.
Copyrights
Copyrights are governed by the Argentine Copyright Law No 11.723 (ACL) of 28 September 1933 (modified by Law No 25.036 of 11 November 1998). Section 1 of the ACL extends protection to scientific, literary, artistic or educational works, regardless of the medium.
As a result of the broad definition of protected works, copyright protection has been granted to:
As regards ownership, Section 4 of the ACL establishes that the holders of IP rights over a work shall be:
As opposed to trade mark protection, Section 14 of the ACL states that the author of a foreign work must demonstrate that they have complied with the formalities for protection in their country. In fact, the Berne Convention governs recognition of foreign copyrights, which means that they need no formality other than the “Notice of Copyright” in order to be protected.
Even though works are recognised from the moment of creation, national registration of works is advisable in terms of a court action. Registration is immediate and is only a rebuttable presumption of ownership.
Adequate protection in licensing agreements
Having explained the legal framework for trade mark and copyright protection in Argentina and the different types of signs and works that can be protected, it is important to establish which signs and works that may be subject to a licence should be duly protected so that licensees are guaranteed that the licensed IP rights are owned by the licensor or that the latter holds sufficient authorisation to license said IP rights so as to avoid third-party claims or at least minimise these risks.
Artists usually protect their name or fantasy name in the class that better identifies their products or services – for example, it would be wise for a music band that is still active and touring around the world to seek trade mark protection in Class 41 (whereby “entertainment services in general” are classified) in countries where they usually perform. Legendary artists or those enjoying a peak of popularity usually seek trade mark protection for their name and other distinctive signs, such as a logo, in the jurisdictions where they usually render their services or where they are well known. However, this is not necessarily the case for other artists that are less popular – principally, those that enjoy a limited territorial influence (eg, in one country or one region).
Other distinctive signs could be protected under copyright law and, as previously explained, do not need to be registered with a national Copyright Office as in the case of trade marks.
A popular and legendary band such as the Rolling Stones may seek trade mark protection for the name of the band, for the famous red tongue logo, and for a well-known phrase such as “It’s only rock n’ roll but I like it”. They could also seek copyright protection for the red tongue logo, as it may have been considered a work of art, or invoke ownership of said work of art if it has not been registered with a Copyright Office.
In connection with several of the examples already mentioned, artists who commercialise alcoholic beverages with the name of the band or the name of an iconic album or a famous logo or work of art associated with the band by the general public should seek trade mark protection for said signs in Class 32 (“beers”) and/or Class 33 (“alcoholic beverages, with the exception of beers”). In this scenario, and again using one of the previously mentioned examples, it would be advisable for the English rock band Iron Maiden to protect their name in the special font as a trade mark, along with the name “Trooper” as a trade mark, and the depiction of their famous mascot “Eddie” as a trade mark and in Class 32 for “beers”. Copyright protection could also be claimed by the band in connection with “Eddie”, as the mascot could be considered a work of art.
In Argentina, several famous and popular artists have registered such signs principally as trade marks and thus enjoy adequate protection when enforcing their IP rights against infringers. This also guarantees any potential licensee that use of said signs as stipulated in the licence agreement is free of risk.
However, other signs matching the content that has been licensed to a licensee or licensees do not enjoy adequate protection and are only protected in the class of main interest (usually Class 41) – even if the goods being sold under the licence, for example, fall into Classes 9, 14, 16, 25 and 28. If an artist called The Owls only registered their name in Class 41 and a third party registered the name “Owls” in Class 25 for t-shirts several years before said artist became popular, could this third party – who did not act in ill faith and therefore owns a legitimate IP right over the brand in Class 25 – stop the owners of “The Owls” brand or their licensee commercialising t-shirts or related clothing bearing said brand? The answer is “yes”.
The fact that the band owns IP rights for services pertaining to Class 41 does not mean that they can freely use the same brand for other services and/or products. If The Owls granted a licence in favour of a third party for the sale of t-shirts with said name, they could be held responsible for any claim filed by the party that owns the same or a confusingly similar brand in Class 25.
Owners of licensed content should take all the necessary steps to seek adequate IP protection of said content in Argentina (and perhaps in neighbouring countries as well) so as to be in a better position when enforcing said rights against infringers and counterfeiters. This will also guarantee licensees that the licensed content is free of limitations and does not violate third parties’ rights.
Avenida del Libertador 5990
8th Floor
C1428 Buenos Aires
Argentina
+54 11 3989 9773
jbm@bertonmoreno.com.ar www.bertonmoreno.com.ar