BILL ANALYSIS                                                                                                                                                                                                    






                           SENATE JUDICIARY COMMITTEE
                        Senator Ellen M. Corbett, Chair
                           2007-2008 Regular Session


          SB 771                                                 S
          Senator  Kuehl                                         B
          As Amended August 30, 2007
          Hearing Date:  September 6, 2007                       7
          Civil Code                                             7
          GMO                                                    1
                                                                 
                          PURSUANT TO SENATE RULE 29.10
           
                                     SUBJECT
                                         
             Deceased Personalities: Transfer of Publicity Rights 
                           By Testamentary Instrument
           

                                  DESCRIPTION  

          The bill would clarify that existing law protecting a  
          deceased personality's publicity rights applies to all  
          those whose date of death was within 70 years preceding  
          January 1, 1985, the effective date of the law that created  
          post-mortem publicity rights for deceased personalities.

          The bill would further clarify that in the absence of an  
          express provision in a will or other testamentary  
          instrument that effectively transfers the publicity rights  
          of a deceased personality, disposition of the publicity  
          rights would be in accordance with the disposition of the  
          residue of the deceased personality's assets.  Finally, the  
          bill would clarify that the publicity rights transferred  
          according to this statute are freely transferable or  
          descendible by contract, trust, or any other testamentary  
          instrument by any subsequent owner of the deceased  
          personality's publicity rights.

          The bill states the intent of the Legislature to abrogate  
          two federal court decisions,  The Milton H. Greene Archives,  
          Inc. v. CMG Worldwide, Inc.  (U.S. District Court, Central  
          District of California) and  Shaw Family Archives Ltd. v.  
          CMG Worldwide, Inc.  (United States District Court, Southern  
                                                                 
          (more)



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          District of New York), both of which found that the  
          California statute granting post-mortem publicity rights to  
          deceased personalities does not apply to personalities who  
          died prior to January 1, 1985.

                                         

                                   BACKGROUND  

          In 1984, California enacted what is now Civil Code   
          3344.1, to address the ruling in  Lugosi v. Universal  
          Pictures  (1979) 25 Cal.3d 813.  The decision was  
          interpreted by some as holding that a celebrity's right of  
          publicity expired at death and thus the publicity rights  
          that had not been used or exploited by the time of death of  
          the celebrity defaulted to the public domain.  When  
          enacted, Civil Code  3344.1 recognized publicity rights as  
          property rights that may be transferred, specified  
          prohibited uses, and required the registration of those  
          rights with the Secretary of State.  An action to enforce  
          rights protected by 
           3344.1 was required to be brought within 50 years of the  
          death of the celebrity. 

          SB 209 (Burton, Ch. 988, Stats. 1999) was enacted to  
          abrogate the Ninth Circuit's decision in  Astaire v. Best  
          Film & Video   (9th Cir. 1997) 116 F. 3d 1297, which held  
          that the unauthorized use of Fred Astaire's image in a "how  
          to" dance video was not prohibited by the statute. The  
          amendments to  3344.1 deleted certain exceptions in the  
          statute that had been relied on by the court in the  Astaire   
          case and inserted language to distinguish between  
          permissible use of the celebrity's likeness in works of art  
          and entertainment (which the statute permitted) and use in  
          connection with products, goods, and merchandise (which is  
          prohibited without consent), and extended the period of  
          protection provided by the statute from 50 years to 70  
          years after the death of the celebrity.  

          In May 2007, two federal courts (one in New York and the  
          other in the Central District of California) 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 enacting  3344.1).  
                                                                       




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           Thus, the courts ruled, only statutorily listed heirs  
          (using intestate succession rules) could enforce publicity  
          rights: surviving spouse, children, grandchildren, and  
          parents.

          SB 771 intends to clarify the Legislature's intent to make  
          the protections under
           3344.1 of the Civil Code applicable to deceased  
          personalities who died between January 1, 1915 and January  
          1, 1985, the 70 year period of protection under the  
          statute. 

                             CHANGES TO EXISTING LAW
           
           Existing law  imposes liability on any person who uses  
          without consent a deceased personality's name, voice,  
          signature, photograph, or likeness 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  
          personality.  Consent may be provided by those persons to  
          whom the right has been transferred by contract, trust, or  
          other testamentary instrument, or, if no such transfer has  
          been made, by the surviving spouse or other specifically  
          listed heirs.  Exceptions from the requirement of consent  
          are uses such as in material that is of political or  
          newsworthy value, or an advertisement or commercial  
          announcement of the allowed uses. (Civil Code 
           3344.1. All references are to this Code unless otherwise  
          indicated.)

           This bill  would provide that  3344.1 applies to a deceased  
          personality who died prior to January 1, 1985, the  
          effective date of the statute that created the post-mortem  
          publicity rights of a deceased personality. 

           This bill  would provide that the post-mortem publicity  
          rights of the deceased personality vest in those persons  
          entitled to those rights under a testamentary instrument of  
          the deceased personality that was effective on the date of  
          his or her death.

           This bill  would provide that in the absence of an express  
          transfer in a testamentary instrument, the deceased  
          personality's rights to publicity would transfer in  
                                                                       




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          accordance with the testamentary provision disposing of the  
          residue of the personality's assets.

           This bill  would provide that publicity rights established  
          by this statute are freely transferable or descendible by  
          contract, trust, or any other testamentary instrument by  
          any subsequent owner of the deceased personality's rights. 

           This bill  would not affect publicity rights that have been  
          exercised by statutory heirs named in subdivision (d) prior  
          to May 1, 2007 provided a challenge made in court by a  
          beneficiary under subdivision (b) was unsuccessful.  In  
          this case, the bill would deem those rights vested in the  
          statutory heirs who had exercised those rights. 

                                     COMMENT
           
          1.   Stated need for the bill
           
            The author states this bill is necessary to clarify the  
            Legislature's intent, when it enacted Civil Code  3344.1  
            (then  990 of the Civil Code) in 1984 to create  
            post-mortem publicity rights for celebrities, to extend  
            those rights back to 50 years from the date the statute  
            became effective and to enable the transfer of such  
            publicity rights to the deceased personality's designated  
            beneficiaries.  This legislative intent, according to the  
            sponsor of the bill, was further evidenced by the  
            Legislature's amendments to the statute in 1999,  
            extending the protection of  3344.1 even further back,  
            to 70 years from the date the statute first became  
            effective.

            Referring to the case of  CMG Worldwide, Inc. v. Milton H.  
            Greene Archives, LLC  ,  supra  , which involved a dispute  
            over ownership of Marilyn Monroe's right of publicity,  
            the author believes the court erred in ruling that  
            Marilyn Monroe did not have those statutory rights when  
            she died (she died in 1962 and left a designated  
            beneficiary to receive the residue of her estate) and  
            that therefore only her heirs as identified in the  
            statute could exercise those rights.  Since Marilyn  
            Monroe left no heirs that qualified as a statutory heir  
            under 
             3344.1, the court held that her rights died with her  
                                                                       




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            and nobody else has the right to control the use of her  
            name, image, or likeness.

            "There is nothing in the statute?that indicates the  
            Legislature intended to treat people differently  
            depending on whether they died before or after 1985.   
            Moreover, California law has always strongly held that  
            the courts should do whatever possible to avoid  
            "intestacy" - that is a situation where the law defines  
            who a person's assets should pass to at death because the  
            decedent failed to do so by will or trust.  Given that  
            celebrities like Marilyn Monroe died with very clear  
            testamentary documents about who should benefit from  
            their estates, it is even more important that the statute  
            be clarified so that the law does not alter what our  
            citizens clearly decided for themselves.  Their intent  
            about who should inherit their identities should be  
            respected, and 
            [SB 771] would do just that," the author writes.

            The court in  CMG Worldwide Inc.  did invite the  
            Legislature to cure this defect in the statute by  
            expressly making the statute applicable to deceased  
            personalities who died prior to January 1, 1985, and vest  
            the deceased personality's publicity rights in the  
            residuary beneficiaries or their successors-in-interest,  
            if the deceased personality left a will or other  
            testamentary instrument.

          2.    Clarifying  3344.1
           
            SB 771 would indeed clarify  3344.1 in several ways:

             a)   It would provide that the  3344.1 rights of  
               publicity are property rights that are deemed to have  
               existed at the time of death of any deceased  
               personality who died prior to or after January 1,  
               1985.

             b)   It would provide that these rights are therefore  
               transferable or descendible by contract, trust, or  
               other testamentary instrument.

             c)   If the rights were not expressly transferred under  
               a provision of the deceased personality's will or  
                                                                       




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               other testamentary instrument, the rights are to be  
               disposed under the residue provision of the  
               testamentary instrument.

             d)  The rights established by this statute are freely  
               transferable and descendible by contract, trust, or  
               other testamentary instrument by any subsequent owner  
               of these rights.

            By clearly stating the above, SB 771 effectively  
            abrogates the decisions of the two federal courts in the  
            cases involving Marilyn Monroe's publicity rights. First,  
            because Marilyn Monroe (MM) died in 1962, 23 years prior  
            to January 1, 1985, under SB 771 she is deemed to have  
            had those rights and could have transferred those rights  
            by contract or will.  Her will devised some money to  
            several persons, and left the residue of her estate  
            (which included "all the rest, residue and remainder of  
            [her] estate, both real and personal, or whatsoever  
            nature and wheresoever situate, of which I shall die  
            seized or possessed or to which I shall be in any way  
            entitled?") to Lee Strasberg, her friend and acting  
            coach.  Thus, secondly, under SB 771, her post-mortem  
            publicity rights are transferable through her will.

            Third, because Marilyn Monroe's will did not expressly  
            refer to any transfer of post-mortem publicity rights to  
            a specific person, under SB 771 the rights are to be  
            disposed as part of her residuary estate, to which Lee  
            Strasberg is the beneficiary of 75%.  And fourth, when  
            Lee Strasberg, as subsequent owner of those Marilyn  
            Monroe publicity rights, transferred them by will to his  
            wife, Anna Strasberg, the transfer was permissible under 
             3344.1, according to SB 771.  Anna Strasberg  
            subsequently transferred her 75% interest (and so did the  
            owner of the 25% interest), to MM LLC, which then  
            licensed CMG to use the images and likenesses of Marilyn  
            Monroe.

            In support of this bill, the Screen Actors Guild writes:  
            "Existing California law maintains that there is a cause  
            for recourse and damages with the unauthorized use of a  
            deceased personality's likeness.  In recent years, it has  
            become increasingly important to protect these rights in  
            the face of increasing avenues of commercial  
                                                                       




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            exploitation, while still taking care not to hamper the  
            creative process.  The passage of SB 771 will help to  
            protect these public figures while still allowing for  
            creative expression."

            The proponents point out that other states have similar  
            protections for post-mortem publicity rights, and that  
            the statute proposed in New York, as currently drafted,  
            would apply regardless of whether the celebrity died  
            before or after the enactment date of the legislation.  

            To ensure that the federal court decisions are abrogated  
            by passage of this bill, SB 771 contains legislative  
            intent language to that effect.  Additionally, SB 771  
            would preserve any  3344.1 rights conveyed or assigned  
            by a deceased personality in his or her lifetime in any  
            contract, regardless of whether the contract was entered  
            into before, or after, January 1, 1985.

          3.    Does SB 771 create a retroactive effect not intended  
            by the Legislature when it enacted  3344.1?
           
            Testimony on SB 613 (Campbell, Chapter 1704, Statutes of  
            1984), the bill that first enacted protections for  
            deceased personalities' publicity rights, from the son of  
            W.C. Fields, Priscilla Presley, and Burt Lancaster  
            apparently convinced the committee and the Legislature  
            that increasing protections for those rights, and  
            ensuring their ability to pass those rights by  
            testamentary instrument, were called for.

            SB 771 contains express language that "[t]he rights  
            recognized [under  3344.1] are expressly made  
            retroactive, including to those deceased personalities  
            who died before January 1, 1985." (Proposed  3344.1(p).)

            In fact, SB 771 would not create a new "retroactive"  
            effect of  3344.1 to sweep publicity rights of those  
            personalities who died between January 1, 1915 to January  
            1, 1985 under its protection.  The legislative history of  
             3344.1 shows that the original 50-year term of  
            protection (under then  990) was drafted to mirror the  
            term of protection provided in federal copyright law and  
            that then  990 was enacted as the "likeness  
            appropriation law" corollary to copyright law.  In 1999,  
                                                                       




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            when SB 209 was enacted, the federal copyright law had  
            been extended by 20 years, hence the period of protection  
            under  990/ 3344.1 was also extended 20 years for a  
            total of 70 years. 

            The Senate Judiciary Committee analysis of SB 209 quoted  
            the opponents of extending the right of publicity from 50  
            years to 70 years:  "They (opponents) write, 'Extension  
            of the right of publicity from 50 to 70 years further  
            perpetuates the chilling effect of SB 209 by reaching  
            back into history and removing from public view or  
            subjecting to private control another 20 years worth of  
            historical figures.'"  The same analysis quoted the  
            proponents to say that extension of the term of  
            protection to 70 years after death of the celebrity is a  
            necessary recognition of the "increased longevity of the  
            personalities and their heirs; the trend toward rearing  
            children late in life; unprecedented growth in technology  
            over the last 20 years including the advent of digital  
            media, the internet and other information  
            infrastructures, which have greatly enhanced the  
            marketability of creative works, and the growing  
            international movement towards the adoption of a longer  
            term for intellectual property."

            Thus, the Legislature, by first providing for a 50-year  
            term of protection in 1984 and then extending that  
            protection to 70 years in 1999, intended to "reach back  
            into history" and protect the publicity rights of  
            deceased personalities who died as far back as January 1,  
            1935 when the statute was first enacted, then to January  
            1, 1915 when SB 209 was enacted.

            Under this analysis, there would be no protection for  
            publicity rights of deceased personalities who died prior  
            to January 1, 1915, since the right did not exist for  
            them before that date (unless a new statute were to be  
            passed to increase the term of protection to more than 70  
            years from 1985).

          4.    Bill would have no effect where rights have been  
            exercised by statutory heir and vested prior to May 1,  
            2007
           
            This bill would make the provisions of proposed  
                                                                       




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            subdivision (b) of  3344.1 (specifying the manner by  
            which these property rights are passed by contract or  
            testamentary instrument) inapplicable where a statutory  
            heir under subdivision (d) has taken action prior to May  
            1, 2007 to exercise the property rights protected by   
            3344.1, and the action was challenged unsuccessfully in a  
            court action by a person who would be a beneficiary under  
            subdivision (b).   By this provision, the bill protects  
            those cases that have been settled prior to the decisions  
            in the two federal cases (  The Milton H. Green Archives,  
            Inc. v.   CMG Worldwide, Inc.  ,  supra  , and  Shaw Family  
            Archives Ltd. v. CMG Worldwide Inc. ,  supra  ).  The  
            decisions were dated immediately after May 1, 2007.   
            Thus, where a court, prior to May 1, 2007, has decided  
            that the deceased personality's transferable or  
            descendible property rights have vested in a statutory  
            heir under subdivision (d), this bill would have no  
            effect on that court decision.  Where the court action  
            may still be pending, however, the rights would not have  
            vested in a subdivision (d) statutory heir, and this bill  
            would apply.  
           
          5.   Support arguments  

            Marilyn Monroe, LLC, the current holder of the publicity  
            rights of Marilyn Monroe, states that the bill is needed  
            to clarify that those publicity rights are transferable  
            regardless of whether a personality died before or after  
            January 1, 1985.  "The Marilyn Monroe, LLC has carefully  
            guarded the publicity rights of Marilyn Monroe's image in  
            order to maintain her legacy as she intended?However, due  
            to recent court decisions, Ms. Monroe's publicity rights  
            could be released into the public domain only to result  
            in offensive and exploitive uses of her image? ."

            John Wayne's son, president of Wayne Enterprises, writes  
            that the use of John Wayne's name and likeness enables  
            them to support the John Wayne Cancer Foundation and the  
            John Wayne Cancer Institute.  In addition, he writes,  
            "[l]egislative protections regarding rights of publicity  
            assist us in assuring that the use of John Wayne's  
            personality is meaningful and appropriate."

            Among other deceased personalities whose publicity rights  
            provide support to worthwhile causes and charitable  
                                                                       




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            institutions are Albert Einstein, Joan Crawford, Mae  
            West, Edith Head, Janis Joplin, Alfred Hitchcock, Glenn  
            Miller, Ozzie Nelson, Groucho Marx, and Bela Lugosi.

          6.   Opposition from photographers
           
            The committee received several identical letters from  
            photographers who make their living taking photographs of  
            celebrities, politicians, and other personalities.  Some  
            photographers are from out of state (New York, Minnesota,  
            New Orleans, New Mexico, Florida) and Canada and a couple  
            are from California.  They object to the retroactive  
            effect of SB 771, claiming that this would cause  
            substantial damage to "any business that is based on  
            photographs or reproductions of famous people" and that  
            SB 771 is of "questionable constitutionality" and "is  
            inherently unreasonable."  They further claim that if  
            enacted, SB 771 would "open the door to hundreds of  
            lawsuits against every photographer, gallery, or  
            publisher who has ever worked within today's law ?, would  
            be detrimental to the state's already beleaguered  
            treasury?[and] would cost millions to the taxpayers."

            The committee staff's discussions with experts in  
            intellectual property and copyright law on the  
            "retroactive" effect of SB 771 are already reflected in  
            Comment 3.
           
             Another opponent, also representing professional  
            photographers, suggested other changes to the statute  
            that this bill does not address.

           Support: AFSCME; Batjac Productions, Inc.; Bela G. Lugosi;  
                 California Labor Federation; Senator John Campbell  
                 (retired, author of California Publicity Rights  
                 Statute); Cecil B. DeMille Foundation; Corbis  
                 Corpordation; Elvis Presley Enterprises, Inc.;  
                 Experience Hendrix (Estate of Jimi Hendrix); The  
                 John Steinbeck Family Foundation; Chad McQueen;   
                 Marilyn Monroe, LLC; Motion Picture & Television  
                 Fund; Taylor & Faust (Trustee of the Second  
                 Residuary Trust of Alfred Hitchcock); Wayne  
                 Enterprises, L.P. (John Wayne Family Partnership);  
                 and 223 letters from members of the Screen Actors  
                 Guild
                                                                       




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          Opposition:   OneWest Publishing; The Archives, LLC;  
                    Pacific Licensing; several lawyers and law firms;  
                                              38 letters from members of the American Society  
                    of Media Photographers; and 3 individuals

                                     HISTORY
           
          Source: Screen Actors Guild (sponsor)

          Related Pending Legislation: None Known

          Prior Legislation: SB 209 (Burton, Ch. 988, Stats. 1999)  
          (See Background)
                            SB 613 (Campbell, Ch. 1704, Stats. 1984)  
          (See Comment 3)

          Prior Vote: Asm. Jud. (Ayes 10, Noes 0)
                    Asm. Floor (Ayes 77, Noes 0)
                    (Previous Senate votes not relevant.  This was a  
          gut-and-amend.)
          
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