BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 771
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          SENATE THIRD READING
          SB 771 (Kuehl)
          As Amended August 30, 2007
          Majority vote 

           SENATE VOTE  :Vote note relevant  
           
           JUDICIARY           10-0                                        
           
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          |Ayes:|Jones, Tran, Adams,       |     |                          |
          |     |Evans, Feuer, Keene,      |     |                          |
          |     |Krekorian, Laird, Levine, |     |                          |
          |     |Lieber                    |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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           SUMMARY  :  Protects the publicity rights of celebrities who died  
          before January 1, 1985.  Specifically,  this bill  :

          1)Clarifies that the property right to use a deceased  
            personality's name, voice, signature, photograph or likeness  
            in a commercial product is freely descendible by means of  
            trust or any other testamentary instrument executed before or  
            after January 1, 1985.  Specifies that these rights shall be  
            deemed to have existed at the time of death of any person who  
            died prior to January 1, 1985, and shall vest in the persons  
            entitled to those property rights under the testamentary  
            instrument of the deceased personality effective as of the  
            date of his/her death.  In the absence of an express transfer  
            of these publicity rights, provides that a provision in the  
            testamentary instrument disposing of the residue of the  
            deceased personality's assets shall be effective to transfer  
            them. 

          2)Specifies that the rights recognized for deceased  
            personalities are expressly made retroactive, including to  
            deceased personalities who died before January 1, 1985.

          3)Reiterates that nothing in #1) shall be construed to render  
            invalid or unenforceable any contract entered into by the  
            deceased personality, during his or her lifetime, by which the  
            personality assigned rights to use his or her name, voice,  
            signature, photograph or likeliness, regardless of whether the  
            contract was entered before or after January 1, 1985.








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          4)Provides that, notwithstanding any provision to the contrary,  
            if an action was taken, prior to May 1, 2007, to exercise  
            post-mortem publicity rights by a statutory heir, as defined,  
            and such action was not challenged successfully in court by a  
            residuary beneficiary, the post-mortem publicity rights vest,  
            for both past and future purposes, solely in the statutory  
            heirs, as defined.

          5)States the intent of the Legislature to abrogate court  
            decisions in  The Milton H. Greene   Archives, Inc. v. CMG  
            Worldwide, Inc.  (United States District Court, Central  
            District of California) and  Shaw Family Archives Ltd. v. CMG  
            Worldwide, Inc.  (United States District Court, Southern  
            District of New York), both of which found that post-mortem  
            publicity rights under California law do not apply to  
            personalities who had died prior to January 1, 1985.  



           EXISTING LAW  :

          1)Imposes liability on any person who uses a deceased  
            celebrity's name, voice, signature, photograph or likeness,  
            without consent, on or in products, merchandise or goods, or  
            for purposes of advertising or selling, or soliciting  
            purchases of, products, merchandise, goods, or services for 70  
            years after the death of the celebrity.  Provides that the  
            right to consent is a property right that is freely  
            transferable by contract, trust or testamentary document.   
            Provides that consent is exercisable by those persons to whom  
            the right is transferred or, if no such person exists, by the  
            surviving spouse or other specifically listed heirs.  

          2)Provides that, notwithstanding #1) above, no consent is  
            required for the use of a deceased personality's name, voice,  
            signature, photograph or likeness in a play, book, magazine,  
            newspaper, musical composition, film, radio or television  
            program, in material that is of political or newsworthy value,  
            a single and original work of fine art, or an advertisement or  
            commercial announcement for any of these uses.  

           FISCAL EFFECT  :  None

           COMMENTS  :  Effective in 1985, the California Legislature enacted  








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          legislation to provide for a posthumous right of publicity that  
          is transferable by contract, trust or testamentary instrument.   
          The statute gave the right to all personalities who died on or  
          after January 1, 1935 (within 50 years of the effective date of  
          the statute), and provided that the posthumous right of  
          publicity could be enforced for a period of 50 years after the  
          personality's death.  The Legislature amended the statute in  
          1998 to abrogate a court decision which held that the  
          unauthorized use of Fred Astaire's image in a dance video was  
          not prohibited by the statute.  The 1998 legislation  
          distinguished between the permissible use of a celebrity's  
          likeness in works of art or entertainment and use in connection  
          with products, goods and merchandise which is prohibited without  
          consent.  The 1998 amendment also extended the period of  
          protection from 50 to 70 years, thus extending the right to all  
          personalities who died on or after January 1, 1915 (within 70  
          years prior to the effective date of the 1985 statute).

          This past May, two federal courts, one in California and one in  
          New York, interpreted California's post-mortem publicity rights  
          statute as prohibiting publicity rights from passing under a  
          deceased celebrity's will if that celebrity died before January  
          1, 1985, the effective date of the statute.  Only statutorily  
          listed heirs, which are a surviving spouse, children,  
          grandchildren or parents of the deceased personality, could  
          enforce the publicity rights.  This bill, sponsored by the  
          Screen Actor's Guild, abrogates those two recent court decisions  
          directly by clarifying that a deceased celebrity's right of  
          publicity applies to individuals who died before January 1,  
          1985.

          The two recent court cases involved the commercial use of images  
          of Marilyn Monroe, who died in 1962.  The court in the  
          California case,  The Milton H. Greene Archives, Inc. v. CMG  
          Worldwide, Inc.  , CV 05-2200 MMM (United States District Court,  
          Central District of California, May 14, 2007), ruled that the  
          statutory post-mortem rights to publicity established in 1985  
          could not have been transferred by a testamentary instrument in  
          1962.  In reaching its decision, the court relied on the general  
          probate rule that a testator may only transfer property that  
          he/she owns at the time of death to hold that Ms. Monroe could  
          not have passed such rights through the residuary clause of her  
          will.  While ruling against Ms. Monroe's residuary  
          beneficiaries, the court wrote:









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               The court reaches this conclusion with some reluctance  
               because . . . at least some personalities who died  
               before passage of the California . . . right of  
               publicity statute[] left their residuary estates to  
               charities, which will be "divested" of those rights  
               under the court's holding.   As noted, however,  
               nothing in this order prevents legislatures from  
               enacting right of publicity statutes so as to vest the  
               right of publicity directly in the residuary  
               beneficiaries of deceased personalities' estates or  
               their successors-in-interest.

          The New York court, in  Shaw Family Archives Ltd. v. CMG  
          Worldwide, Inc.  , 05 Civ. 3939 (United States District Court,  
          Southern District of New York, May 2, 2007), also arrived at the  
          same conclusion.

          This bill expressly abrogates the two court decisions, and,  
          following the invitation from the California federal court,  
          explicitly states instead that a deceased celebrity's right of  
          publicity applies to individuals regardless of whether they died  
          before or after January 1, 1985.  This bill clarifies that the  
          right to the use of a deceased personality's name, voice,  
          signature, photograph or likeness in a commercial product is  
          freely descendible by means of trust or any other testamentary  
          instrument executed before or after January 1, 1985.  This bill  
          provides that, in the absence of an express transfer of these  
          rights, a provision in the will or other testamentary instrument  
          that provides for the disposition of the residue of the deceased  
          personality's assets is effective to transfer them.  This  
          explicit language is not a change to existing law, but, rather,  
          only clarifies it in order to prevent needless litigation.  This  
          bill explicitly states that the rights recognized for deceased  
          personalities are made retroactive, including to those deceased  
          personalities who died before January 1, 1985.  

          This bill also creates a limited exception to the general rule  
          that, in the absence of an express transfer of these publicity  
          rights, a provision in a testamentary instrument disposing of  
          the residue of the deceased personality's assets shall be  
          effective to transfer post-mortem publicity rights.  Under the  
          limited exception, if an action was taken, prior to May 1, 2007,  
          to exercise post-mortem publicity rights by a statutory heir,  
          who has not disinherited by the deceased celebrity, and such  
          action was not challenged successfully in court by a residuary  








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          beneficiary, the post-mortem publicity rights vest, for both  
          past and future purposes, solely in the statutory heirs.

          In support of this bill, the California Labor Federation writes:  
           "SB 771 is critical to protect celebrities and artists from  
          constant attempts to commercially exploit their images.  The  
          honorable legends of these admirable personalities may be  
          corrupted in the event that SB 771 is not enacted, as their  
          images will be used for offensive commercial purposes."

          Opponents, including the parties that won the cases discussed  
          above, write that the bill "abandons the express purposes of  
          3344.1, effects an unlawful taking of property, violates due  
          process, unconstitutionally impairs existing contracts of not  
          only photographers but also studios and other businesses."  They  
          argue that, despite the fact that this bill simply seeks to  
          clarify existing law, it is an unconstitutional ex post facto  
          law.  They also argue that, depending to whom a celebrity left  
          the bulk of his/her estate through the residuary clause, this  
          bill could strip statutory heirs of the rights of publicity of  
          their deceased relatives.  


           Analysis Prepared by  :    Leora Gershenzon / JUD. / (916)  
          319-2334                                          FN: 0002633