ADVT 250 1st Edition Lecture15Outline of Last Lecture I. What is Digital?II. InternetIII. Gaining Perspective on ‘New’IV. Being Successful in DigitalV. Search Engine MarketingOutline of Current Lecture I. Trademark IssuesII. CopyrightsIII. Federal Trade Commission and AdvertisingIV. Food and Drug Administration V. Other Regulatory agencies and advertisingCurrent LectureI. Trademark Issues1.) Generic Usage: You can lose your trade mark if your TM becomes synonymous with the product category.II. Copyrights1.) Copyright: Protection of the expression of an idea. You cannot copyright an idea.2.) What can be copyrighted: Photos, ads, writing, movies, musical, compositions, musical recordings, taglines, websites, etc. Protection is given to ‘owner’ for life + 70 years. Thenit becomes public domain. 3.) Using copyrighted materials: Must get permission from owner. And you often must pay royalty to owner. An exception is a ‘parody’ of satire. 4.) Commercial Appropriation: Using someone’s image or likeness for commercial gain without that person’s permission or compensation. (Usually inappropriate commercial appropriation is what gets you in trouble.)-Filming in Public for a commercial-Celebrity look-a-likes/sound-a-likes-Getting signed release forms-Notifications-Finally payment to the appropriate person or group. These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.III. Federal Trade Commission and Advertising1.) FTC: Established by Congress to ensure a fair marketplace for business. 1914. Lead to the elimination of Unfair Methods of Competition. 2.) Wheeler-Lea Amendment- 1938: False or Misleading advertising is Unfair method of competition and under jurisdiction of the FTC. 3.) How to judge if an ad is misleading: Is there a representation, omission or practice that is likely to mislead a reasonable consumer? It is negative material? 4.) Representation, Omission, or Practice: - Expressed or Implied Claims: if you say something in a matter of fact way (studies have shown, 4 out of 5 people, etc.) - Undisclosed Information- Ineffectively Disclosed Information- Disguised Ads5.) Puffery- An exception (doesn’t actually make a false claim or mislead)-Ex: Coke is it.GE: Brings good things to lifeGillette: The best a man can get6.) Reasonable Consumer: Consumer acting reasonably in the situation. (is it going to mislead a reasonable person?) There are different standards for kids, etc. 7.) Net Impression Standard: The overall tendency of the ad to mislead.-Everything in the ad could be true, but put together in a way that leads to confusion or misrepresentation. 8.) How to avoid problems? Clear and conspicuous disclosure. That’s basically all it takes.Be honest and very very clear!9.) FTC Remedies: - Consent Decree (lay out ways to avoid the same problems that they encounter often. To avoid this in the future do this, this, and this. No guilt is placed!) - Cease and Desist Order (if it gets to this stage, then you will have to stop running the ad)- Corrective Advertising (You have to go back and tell people you lied)10.) Who is liable? FTC can hold both the marketer and the ad agency responsible for false or misleading advertising. IV. FDA1.) Food and Drug Administration -1938: Regulates advertising for food, drugs, and therapeutic devices. 2.) Wants to promote better consumer decision making through affirmative disclosure. Very concerned about consumer confusion. Clear and conspicuous disclosure.V. Other regulatory agencies and advertising1.) SEC (Securities and Exchange Commission) Financial advertising2.) FCC (Federal communications commission) Broadcast