ADVT 250 1st EditionExam # 4 Study Guide: Lectures 15-17Lecture 15 (November 6th)This is the information you need to know about trademarks and copyrights:Trademark Issues1.) Generic Usage: You can lose your trade mark if your TM becomes synonymous with the product categoryCopyrights1.) 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-NotificationsThis is what you need to know about the various organizations that regulate different forms of advertising: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. 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. Other regulatory agencies and advertising1.) SEC (Securities and Exchange Commission) Financial advertising2.) FCC (Federal communications commission) Broadcast AdvertisingLecture 16 (November 11th)These are the main points you need to understand about the relationship between advertising and the first amendment:1.) The first amendment: Amends the U.S. Constitution and is the first of the ‘Bill of Rights’.2.) Congress shall make no law respecting an establishment of religion, or prohibiting thefree exercise of thereof; or abridging the freedom of speech, or the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances. -Restricts the government about the kind of laws they can make-it’s important not to be a theocracy because people who disagree are often imprisoned or killed.-people flee to the U.S. because of religious persecution in other countries.-we have the right to talk about illegal subjects.-media is often thought of as the 4th estate-we are able to protest, helps speed up change. However, you have to get a license for such demonstrations.3.) But the 1st amendment does NOT say anything about ‘Advertising’-Two traditions of ‘reading’ the constitution.-Absolutist (only pay attention to the ACTUAL words the constitution says)-Spirit of the Document (Interprets the constitution because there is no way the founding fathers could predict how our society would be today)4.) Commercial Speech:-Speech that merely proposes a commercial transaction. Not all advertising is Commercial Speech. Not all commercial speech is advertising. 5.) Three Tiers of Speech Protections:- Political, Artistic and Cultural Expression- Commercial Speech- Libel, Slander, Obscenity, Fighting Words. 6.) Understanding the Process:- Laws are being challenged in light of the First Amendment.- Court rules on whether the law is allowable in light of the constitution- Supreme courts is the last stop.7.) How does the court evaluate laws restricting commercial speech?-Central Hudson Test will be used.8.) Central Hudson Test: Process-Does the restriction concern lawful and non-misleading commercial speech?-Is there a substantial government interest in restricting the commercial speech?-Does the restriction directly advance the asserted government interest? - Is the restriction no more extensive than necessary to address the problem? 9.) Areas of Concern:-Vice Products (Gambling, Liquor, Cigarettes, etc.)-Controversial Services (Abortion Services)10.) Composition of the Court Matters:-The political leadings of individual Court members will impact commercial speech rights.-Court justices are appointed by the President and approved by congress. Lecture 17 (November 13th)These are the main points you need to understand about how advertising is used as a business tool (for both private businesses and for politicians):1.) Common Area of Criticism:- offensiveness * some people say their offended by certain types of advertising - women are more offended, conservative women are even more offended- offensive products- offensive executions * stereotypes * sexuality * nudity * humor * insulting intelligence 2.) Generic Vs. Specific: people tend to report