Share on LinkedInShare on LinkedIn

ARTICLE · 08 OCTOBER 2026

September 2026 FZLZ Minute

Fross Zelnick Lehrman & Zissu, P.C.
Fross Zelnick Lehrman & Zissu, P.C.
Contributor
Fross Zelnick Lehrman & Zissu, P.C.

Fross Zelnick Lehrman & Zissu, P.C.

At Fross Zelnick, we secure and defend our clients’ most valuable assets—their brands, designs, and...

View firm profile
Explore more from Fross Zelnick Lehrman & Zissu, P.C.

Thirty years after the fact, Michael Hayden discovered that famed artist Jeff Koons incorporated Hayden’s sculpture in a series of works. Hayden sued Koons for copyright infringement, but the district court held that Hayden’s claim was time-barred under the Copyright Act’s three-year limitations period.

GlobalLaw Practice Management
Fross Zelnick Lehrman & Zissu, P.C.
Fross Zelnick Lehrman & Zissu, P.C.
Author LinkedIn connections

USA 

Second Circuit clarifies standard for “constructive discovery” in copyright cases

Thirty years after the fact, Michael Hayden discovered that famed artist Jeff Koons incorporated Hayden’s sculpture in a series of works. Hayden sued Koons for copyright infringement, but the district court held that Hayden’s claim was time-barred under the Copyright Act’s three-year limitations period. Under the “discovery rule,” copyright infringement claims “do not accrue until actual or constructive discovery” of the infringement. In other words, claims accrue when “the copyright holder discovers, or with due diligence should have discovered, the infringement.” Hayden argued on appeal that a claim accrues only if circumstances have triggered a duty to inquire (i.e., “inquiry notice”) and the plaintiff had actual knowledge of facts suggesting the probability of infringement.

The Second Circuit rejected this heightened standard. It held that, to raise a statute of limitations defense, defendants must demonstrate only that a reasonable copyright owner exercising due diligence would have discovered the infringement. Given Hayden’s connections to the art world and the publicity surrounding Koons, Hayden had been on constructive notice for longer than three years and his claim was time-barred. The Court explained that, although copyright holders need not “scour the news,” they cannot “ignore widespread international media coverage of allegedly infringing art.”

 Parker Eudy

Bad Spaniels fetches another win

The dispute began in 2014 when VIP began selling its Bad Spaniels dog toy shaped like a Jack Daniels bottle. Rather than “Old No. 7 Tennessee Sour Mash Whiskey,” the toy reads “Old No. 2 on Your Tennessee Carpet.” Jack Daniels prevailed in district court asserting claims for trademark infringement and dilution by tarnishment. But the Ninth Circuit ruled that under the Rogers test, established by the Second Circuit in Rogers v. Grimaldi, VIP’s dog toy was worthy of First Amendment protection as an expressive, non-misleading use of a trademark, and under the statutory, non-commercial-use exception to dilution claims.

In 2023, however, the Supreme Court remanded the case when it held that the Rogers test and the noncommercial-use exception do not apply when the infringer uses the mark as a designation of source. On remand, the district court found for Jack Daniels on dilution. In August, the Ninth Circuit again reversed.

The new decision solidifies that the parodic nature of the infringer’s use must still be considered in assessing dilution—even where, as the Supreme Court held, the noncommercial-use exception does not apply. The clearer the parodic intent, the more critical its consideration.

Brian Leary

DESIGN PATENTS

Invalidity invalidates infringement: Ugg claims fall flat at trial

Deckers, owner of Ugg’s Classic Ultra Mini Boot design patent, sued Last Brand, owner of the online retailer Quince, alleging that Quince’s Australian Shearling Mini Boots design infringed Ugg’s U.S. Design Patent No. D927,161. Deckers had previously enforced this patent against other entities that allegedly incorporated key elements of Ugg boots. Just last month, in a different case between the parties, the U.S. District Court for the Northern District of California struck down Last Brand’s Sherman Act claims that Deckers’ ongoing and extensive enforcement program amounted to monopolization.

In considering the relevant factors in Ugg’s infringement claim, including new prior art not presented to the USPTO during patent prosecution, the jury did find Quince’s boot design to be infringing. The verdict would further state, however, that Ugg’s patent was invalid (without specifying the grounds for invalidity) – a finding that, in essence, mooted the infringement finding. 

Quince had argued multiple invalidation grounds. These included functionality, indefiniteness and lack of enablement, and obviousness in view of similar prior art designs.  The judge’s jury instructions reiterated these grounds, but the jury’s decision did not identify which grounds resulted in invalidation, nor were the jurors formally requested to provide one.

Findings of invalidity based on functionality of a design are exceedingly rare. Findings of indefiniteness invalidating a design patent tend also to be rare. If, as one might thus conclude, the jury found the patent to be invalid based on the only remaining basis, obviousness, and the decision is appealed on this basis, the Federal Circuit may have to determine how to apply its new obviousness standard under the en banc decision in LKQ Corp. v. GM Global Tech. Operations LLC, decided two years ago.

Charles Weigell and Jonathan Katz

DATA PRIVACY

A fine start: Partial relief against CIPA privacy claims in sight

On August 28, 2026, California’s Legislature unanimously passed Senate Bill 690 to amend the California Invasion of Privacy Act’s (CIPA) pen register and trap-and-trace provisions, which cover outgoing and incoming routing information for websites and mobile applications but not the contents of communications. If signed by Governor Newsom, the amendment would allow only the Attorney General to bring claims under these provisions and would become effective January 1, 2027, with retroactive application to actions started within the prior two years.

While SB 690’s passage provides modest relief against use of these decades-old statutes for private right of action claims regarding twenty-first century tech practices, the bill does not exclude the underlying tracking conduct from CIPA’s reach and leaves wiretapping claims under §§ 631 and 632 intact. Moreover, plaintiffs have already pivoted in anticipation of the bill’s passage and begun to assert claims under other privacy theories, including California’s Computer Data Access and Fraud Act and the federal Electronic Communications Privacy Act, which are broad.

Despite this progress towards containing CIPA’s availability as a tool for private individuals, companies must still remain vigilant regarding how tracking technologies and consent management both function on their digital properties to avoid privacy-based claims.

Eric Gordon and Carole Klinger

INTERNATIONAL

China – Documents in non-use actions go electronic

As of June 5, 2026, China National Intellectual Property Administration (CNIPA) updated its method for sending documents in non-use cancellation proceedings against International Registrations (IR). CNIPA will now transmit these documents electronically to the trademark holder’s recorded domestic agent (if appointed) or to the trademark owner directly (if no domestic agent is appointed) through WIPO’s notification system.

CNIPA’s previous policy of sending notifications via registered mail was especially problematic given the 15-day time limit for appealing cancellation notices upon receipt of notifications. CNIPA could cancel IRs based on non-use due to a mere delay with the international mail systems such that IR holders would lack adequate time to appeal.

The new notification method benefits trademark owners by making it far more likely that  they receive important documents in these non-use cancellation actions and have the opportunity to defend their trademark registrations in a timely manner.

 Darra Frino

Jersey – Changes to protection on small island for international registrations

Jersey became its own independent designation under WIPO’s Madrid System, effective as of August 1, 2026.

Previously, designating the United Kingdom in an international trademark application or subsequent designation automatically extended coverage to Jersey. Going forward, trademark owners will need to designate Jersey separately, whether in a new international trademark application, a subsequent designation, or when renewing an international registration (“IR”).

For IRs designating the UK before August 1, 2026, where protection in the UK had already been granted, WIPO has automatically recorded a corresponding Jersey designation without requiring further action. For UK designations filed before August 1 that are still pending, WIPO will record a Jersey designation once the UK issues a statement of grant of protection or a final decision granting total or partial protection. If the UK designation is refused, a new subsequent designation of Jersey (or a Jersey national application) is required if protection in Jersey is desired.

Brand owners with an interest in protecting their rights in Jersey should bear this change in mind when devising filing strategies or risk unintended gaps in trademark coverage.  

Maritza Schaeffer

Saudi Arabia – Saudi Arabia to join the Madrid System

Effective October 8, Saudi Arabia will join the Madrid System for the international registration of trademarks, bringing the total number of members to 133.

With Saudi Arabia’s accession, five of the six Gulf Cooperation Council (GCC) member countries (Bahrain, Oman, Qatar, Saudi Arabia, and the UAE) will be members of the Madrid System, with Kuwait as the only GCC member outside the system.

Saudi-based brand owners will be able to seek trademark protection in multiple Madrid System member countries through a single application. Additionally, trademark owners in other Madrid member jurisdictions will be able to designate Saudi Arabia in new or existing international registrations.

While circumstances may still dictate that a national filing in Saudi Arabia is preferable, the country’s accession is useful to both Saudi and international brand owners. It provides Saudi businesses with a more streamlined method for expanding trademark protection globally and gives international brand owners a more accessible and potentially cost-efficient mechanism for securing rights in Saudi Arabia.

Maritza Schaeffer

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

See more popular content from