Schiff Hardin LLP October 2008
Schiff Hardin Nonprofit News

Learn more about Tax-Exempt Organizations at Schiff Hardin.

Attorneys In This Practice

Mazen Asbahi
Lisa M. Chessare
Todd R. Eskelsen
Nicole Finitzo
Louise M. Fitzsimons
Andrew M. Grumet
P. Gregory Hess
Michael J. Huft
Kim Kamin
Katherine J. Levy
Stephen A. Marcus
Christine R. W. Quigley
Thomas P. White

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Extra! Extra! Read All About It!

Although methods of communication are rapidly evolving, one of the most common ways organizations seek to engage our interest and remain connected is still by issuing a newsletter. True, today we see more innovative methods of reaching out, such as e-news, blogs, videograms, YouTube, RSS, Flickr, and other forms of social media, but the underlying concept remains the same. In each medium, information is conveyed in a manner that is largely designed to induce some action on the part of the reader or viewer — to prompt the purchase of goods or services, or, often in the case of a nonprofit, the making of a charitable contribution.

If you have ever been involved with a nonprofit, whether as a board member, as part of the executive management team, or as a volunteer, there is a good chance that you have had some experience with the preparation of a newsletter. Inside the newsletter, whether it uses modern technology or more traditional tools, you will typically find both text and some graphics and/or images. It is these graphics and images that can cause good intentions to go awry.

Today, more than ever, we hear stories of individuals and companies taking action to protect their intellectual property rights, including with respect to the use of their names and likenesses. It is important to be aware of this because many newsletters sent by nonprofits include one or more photos of people (e.g., donors at an event, employees or volunteers performing the organization's programs), as well as other images. Because these images are often protected by state and/or federal law, you should be aware of what you can and cannot do with them — improper use can lead to serious ramifications. For example, earlier this year the artist Nadia Plesner was sued by the designer Louis Vuitton, who claimed that a drawing Plesner had made as a part of a fundraising campaign for Divest Darfur, a charity that raises money and awareness of the ongoing genocide in Darfur, contained a handbag that was "confusingly similar" to a Louis Vuitton trademark. The lawsuit demanded damages of $7,500 per day that the campaign continued.

While such lawsuits may not be the norm, this is a good example that even the best of intentions can have substantial negative ramifications. Other circumstances to consider and be aware of include:

  • Using photographs of adults — Are there state laws that require consent of the subject? Are there exceptions (e.g., a photograph that merely documents an event)?
  • Using photographs of children — Are there state laws that require parental consent?
  • Sculptures, paintings, and other works of art — Does the nonprofit have a license to use the work? Are there exceptions (e.g., fair use, public domain)?
  • Using photographs of private buildings — Does the nonprofit need a license for its depiction of areas not visible from public spaces? Are there exceptions (e.g., fair use, old buildings)?
  • Using photographs of commercial products — Does the nonprofit need a license to reproduce protected designs or trademarks depicted on or in commercial products or advertising? Are there exceptions?

Intellectual property laws are complex and should carefully be considered whenever a newsletter that contains photos or other images is prepared and distributed. Although many of the things that may be included in a newsletter may be a permitted use, it is not safe to assume that — lack of knowledge of the law is rarely, if ever, a defense against a claim.

This is yet another important example of why operating a nonprofit can be a tricky business. The laws impacting nonprofit organizations (including family foundations) are complicated. If you are involved with a nonprofit or are thinking of becoming involved with one, make sure you seek experienced skilled professionals to work with you and your organization. The consequences of missteps in administering the organization can extend far beyond the organization.

RECENT PUBLICATIONS

"IRS Abolishes Advance Ruling Period for Public Charities, Makes Other Changes to Public Support Test," Tax-Exempt Organizations Update (September 2008)
"Embezzlement and Nonprofts," Nonprofit News(September 2008)
"Spotlight On: Cherkin Preston Foundation," Philanthropic Spotlight (September 2008)
"IRS Releases Thoroughly Redesigned Form 990 for 2008," Tax-Exempt Organizations Update (August 2008)
"Alternative Pledge Payment Options," Nonprofit News (August 2008)
"Pledge Payment Options," Nonprofit News (July 2008)

ABOUT SCHIFF HARDIN LLP

Schiff Hardin LLP is enthusiastically committed to serving the legal needs of tax-exempt organizations, matched by significant experience and practice capabilities in this area. Our attorneys provide comprehensive counsel to a wide array of public and private philanthropic, health care, medical and scientific research, housing, neighborhood redevelopment, cultural, artistic, civic, college and educational, and religious organizations, as well as social welfare organizations, trade associations and business leagues, business and housing cooperatives, and professional fundraisers. For more information about the services Schiff Hardin LLP provides to tax-exempt organizations, please feel free to contact us.

© 2008 Schiff Hardin LLP

This publication has been prepared for the general information of clients and friends of the firm.
It is not intended to provide legal advice with respect to any specific matter.
Under rules applicable to the professional conduct of attorneys in various jurisdictions,
it may be considered advertising material.

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