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United States The Almighty Buck The Courts

Post Office Owes $3.5 Million For Using Wrong Statue of Liberty On a Stamp (arstechnica.com) 133

An anonymous reader quotes a report from Ars Technica: A sculptor who created a replica of the Statue of Liberty for a Las Vegas casino was awarded $3.5 million in damages last week after the U.S. Postal Service (USPS) accidentally used a photo of his statue -- rather than a photo of the original statue in New York harbor -- on one of its most common stamps. If you bought a "forever" stamp between 2011 and 2014, there's a good chance that it showed the face of the Statue of Liberty replica that sculptor Robert Davidson constructed for the New York-New York Hotel and Casino in Las Vegas. The Post Office licensed a photo of Davidson's statue from the image service Getty for $1,500, initially believing it was a photograph of the original statue. (The license only covered the rights to Getty's photograph of the statue -- not the statue itself.)

The stamp with the resulting image was released to the public in December 2010; it took four months before anyone pointed out the mistake to the Post Office. In March 2011, a spokesperson said that the USPS "still loves the stamp design and would have selected this photograph anyway." The Post Office continued using the photo for almost three years before retiring it in January 2014.
The court reportedly awarded Davidson a five percent royalty for $70 million worth of unused stamps; it also awarded him $5,000 in damages for the nearly $5 billion worth of stamps that were used to pay postage. The total damages amounted to $3.55 million.
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Post Office Owes $3.5 Million For Using Wrong Statue of Liberty On a Stamp

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  • A copy of a copy (Score:2, Informative)

    by Anonymous Coward

    A copy (stamp) of a copy (photo) of a copy (lv statue) of a copy (ny statue) of the orginal in france. Getty should be paying the people of France not the usps paying the lv statue artist.

    • Actually, the one in France is a copy that was made because the French "missed" it once the original was finished, disassembled and shipped to the U.S. The one in France, like the "replica" in Vegas, is smaller as well.

    • by OzPeter ( 195038 )

      A copy (stamp) of a copy (photo) of a copy (lv statue) of a copy (ny statue) of the orginal in france. Getty should be paying the people of France not the usps paying the lv statue artist.

      Original in France? What original in France?

    • by mysidia ( 191772 ) on Friday July 06, 2018 @03:47PM (#56903780)

      Getty should be refunding the $1500, because apparently the photographer didn't have the right to sell the rights that getty presumed to have offered the USPS.

      Finally... they should negotiate a REASONABLE royalty. 5% Of the postage is not a reasonable royalty, because the stamp was not sold for the picture but a SERVICE ---- the value of the picture on the stamp is decorative; So a few pennies worth of the stamp's price can be attributed to its aesthetic value, and then 5% of that few pennies' worth per stamp is a reasonable royalty: not 5% of the total postage.

      • Re:A copy of a copy (Score:5, Informative)

        by Obfuscant ( 592200 ) on Friday July 06, 2018 @04:08PM (#56903914)

        Getty should be refunding the $1500,

        Getty should be paying the entire judgement, since they falsely represented that they had the rights to sell, and the US Government accepted that claim in good faith. But...

        because the stamp was not sold for the picture but a SERVICE

        We just saw the story on a Virginia court that ruled that a for-profit group (a Virginia Film Festival) could use a photographer's image as part of its advertising ("come to our festival and you can also do these local things...") under "fair use" exemptions. The Post Office is not a for-profit corporation, and the picture of the statue is not what was being purchased, as you point out. Neither the owner of the photograph nor the owner of the statue were fiscally injured in this process, so they deserve no punitive damages, nor do they deserve royalties from the USPS.

        • by q_e_t ( 5104099 )

          Getty should be paying the entire judgement, since they falsely represented that they had the rights to sell, and the US Government accepted that claim in good faith. But...

          I can't see how Getty could be liable for anything after the initial error was noted, as the USPS should have been aware that the sculptor would have rights over his creation.

      • by tkotz ( 3646593 )

        A few pennies(say 3) on 50 cents is more than 5%.

        The decision said it was only 5% of breakage (stamps that were not redeemed for postal service). A large portion of breakage is assumed to be collecting for which the aesthetics is a key part of the value.

        • by tlhIngan ( 30335 )

          The decision said it was only 5% of breakage (stamps that were not redeemed for postal service). A large portion of breakage is assumed to be collecting for which the aesthetics is a key part of the value.

          Which may be a bad assumption. I buy forever stamps because I send so few letters. I don't track what the postage rate (they're "forever" - good for one first class letter regardless of the current postage rate and when you bought it).

          I'm sure a lot of them are simply sitting in the stamp roll of homes and

          • by torkus ( 1133985 )

            The decision said it was only 5% of breakage (stamps that were not redeemed for postal service). A large portion of breakage is assumed to be collecting for which the aesthetics is a key part of the value.

            Which may be a bad assumption. I buy forever stamps because I send so few letters. I don't track what the postage rate (they're "forever" - good for one first class letter regardless of the current postage rate and when you bought it).

            I'm sure a lot of them are simply sitting in the stamp roll of homes and I know Costco sold them in rolls of 100. Plus, since the value of those stamps goes up over time (when has postage every decreased?) I use the regular stamps first, so I probably have a good chunk of new in package stamps

            USPS sells many billions of dollars in stamps. They're somewhat of an authority on how many are used...and yes, this still includes the half-roll you have stuck in the cabinet for 5 years. They used USPS's own breakage rate to get the $70mm

      • The photographer & getty sold the image with the caveat of "No release, but release may not be required" - here's their popup of what that means:

        https://www.gettyimages.com/as... [gettyimages.com]

        If you weren't paying attention and thought you were buying an image of the original statue of liberty then you'd reasonably assume that it wasn't copyrighted because it's been built too long ago. However the photograph was clearly marked as being taken in Las Vegas and as being a photo of a replica.

        From what I can tell, the pho

      • Re:A copy of a copy (Score:5, Informative)

        by OrangeTide ( 124937 ) on Friday July 06, 2018 @04:38PM (#56904072) Homepage Journal

        because the stamp was not sold for the picture but a SERVICE

        Some of the stamps the USPS has made are promotional designs for collectors. Ultimately the USPS is operating a side business of selling images.

      • Re: (Score:2, Troll)

        by RandomFactor ( 22447 )

        the value of the picture on the stamp is decorative; So a few pennies worth of the stamp's price can be attributed to its aesthetic value, and then 5% of that few pennies' worth per stamp is a reasonable royalty: not 5% of the total postage.

        Even a few pennies is vastly overstated.

        Approximately ZERO percent of the value of the stamp, ignoring the statistically insignificant philatelist community, is the picture on it.

        As a rule, nobody buys the stamp for the picture, or even looks at it before purchasing a book. At the most, if there are multiple options they might chose one over the other, but not a single additional sale would be made or not made regardless.

        • by q_e_t ( 5104099 )

          the value of the picture on the stamp is decorative; So a few pennies worth of the stamp's price can be attributed to its aesthetic value, and then 5% of that few pennies' worth per stamp is a reasonable royalty: not 5% of the total postage.

          Even a few pennies is vastly overstated.

          Approximately ZERO percent of the value of the stamp, ignoring the statistically insignificant philatelist community, is the picture on it.

          As a rule, nobody buys the stamp for the picture, or even looks at it before purchasing a book. At the most, if there are multiple options they might chose one over the other, but not a single additional sale would be made or not made regardless.

          Except these were stamps primarily intended for collectors to have, and look at. I have a collection of ones from Princess Diana's wedding in 1981 in a presentation book. I expect only a small proportion ended up on letters.

        • by mlyle ( 148697 )

          > Approximately ZERO percent of the value of the stamp, ignoring the statistically insignificant philatelist community, is the picture on it.

          They gave him 5% of the "breakage"-- the stamps that were purchased and not used. A big chunk of these end up with people holding onto them because they like them-- whether they're "super stamp nerd" or they've bought a few issues of stamps they like--- here aesthetic value is important. Some are lost, some are waiting in a drawer for later use, and some are colle

          • by mysidia ( 191772 )

            A big chunk of these end up with people holding onto them because they like them

            So how come not handle this fairly, and say 5% of the 10% of the breakage that represents what people are holding onto?

            Doubtful that collector volume is significant.... First of all, many people radically overbuy their postage, and as a result have it sitting around for years, because people don't like to go to the post office often. These were among the early forever stamps, so the vast majority of "breakage" were li

            • by mlyle ( 148697 )

              :) You're determined to think that stamp collecting isn't significant, but the reason why the USPS does commemorative issues is that it drives this--- people buy them and then keep them. It tends to get people who aren't even stamp collectors--- I've got a bunch of centennial of flight stamps because I'm an airplane nerd (not really a stamp nerd).

              About 3.5% of all stamps are breakage: they will likely never be used based on past trends. For many boring stamps, it's 1-2%. More desirable commemorative issu

      • You didn't read the article properly. It's 5% for unused stamps (for example stamps in the hands of stamp collectors, where copyright penalties are quite reasonable), plus a total of $5,000 for the huge majority of stamps that were used for postage.
      • by torkus ( 1133985 )

        Getty should be refunding the $1500, because apparently the photographer didn't have the right to sell the rights that getty presumed to have offered the USPS.

        Finally... they should negotiate a REASONABLE royalty. 5% Of the postage is not a reasonable royalty, because the stamp was not sold for the picture but a SERVICE ---- the value of the picture on the stamp is decorative; So a few pennies worth of the stamp's price can be attributed to its aesthetic value, and then 5% of that few pennies' worth per stamp is a reasonable royalty: not 5% of the total postage.

        This is one of those times where it helps to RTFA or at least RTS carefully. To that end, there's a portion of stamps that are kept as collectors items - i.e. they are never used thus represent pure profit. Also, the sculpture was not simply a copy, but the artists interpretation, noticeably and purposefully different, and those differences were what resulted in the images selection for the stamp.
        The judgment is based almost entirely on that portion:

        * USPS never pays more than $5,000 for stamp art

  • Countersue! (Score:2, Informative)

    by XXongo ( 3986865 )
    It's a pity that the US can't countersue that sculptor Robert Davidson, since it's clear that HE was the one that did the copying.

    Unfortunately the Statue of Liberty is long out of copyright. (Although there are those in the U.S. Congress, paid off by Disney, who want to change copyright to "pretty much forever".)

    • by kiviQr ( 3443687 )
      I am lost: Bernardo Bellotto painted Warsaw; after WWII Warsaw was rebuild from his paintings. Should he pay copy-rights to Warsaw for painting landmarks or should city pay him for using his art to rebuild city (copy rights)?
    • by bpetty ( 5282951 )

      Why, so they would lose more money in legal fees?
      There is no copyright on the Statue of Liberty, but an artist's rendition of the statue is copyrightable.
      I wish more people took the time to understand how copyright law worked.

      The saddest part of this entire thing is that our tax dollars are going to pay for this mistake.

      • No, they won't. (Score:1, Informative)

        The USPS is not the U.S. Government. It is a corporation that has government oversight. The payments for this lawsuit come out of the revenue that was generated selling the stamps that were never used (collected). Try reading the article a little more carefully. Also, learn some basic facts and critical thinking. There is too much of that lacking these days.

        • Re: (Score:2, Insightful)

          by Obfuscant ( 592200 )

          The payments for this lawsuit come out of the revenue that was generated selling the stamps that were never used (collected).

          There is no reasonable way to identify how many of those stamps were never used. They are "forever" stamps -- they could be used tomorrow or in a week or in a year or in ten years. You MIGHT be able to count how many HAVE been used, but you can't just subtract to get how many will not be used. I can't imagine that the USPS actually tries to count which stamps are being used, but perhaps it is part of the postmarking system.

          Second, the revenue for those stamps was not paying for an image. The USPS is not pr

        • by bpetty ( 5282951 )

          Hopefully this helps you think more critically:
          http://www.politifact.com/geor... [politifact.com]

      • by Anonymous Coward

        So if one rewrote a book changing a few words that was out of copyright, would that still be okay to claim a copyright on plagiariszed work?

        How sound are your morals?

        • by Anonymous Coward

          I thought Disney already did that. I think
          Snow White is based on a fairy tale from the Brothers Grimm published 100 years earlier with a few minor changes. Disney fiercely protects their copyright on their derivative work.

    • He based the face on a photo of his mother in law, not the actual statue. The court ruled that as original work and the stamp focused on the face of the statue. Therefore most of the stamp was of his original work and not derivative work.
      • The fact that it took four months before anybody actually NOTICED that it was the Davidson statue, not the original statue, is a powerful argument that the Davidson statue was so like the original that people don't notice.

        This was not his original work, this was Davidson's copy of the Statue of Liberty. Yes, absolutely it is a derivative work.

        • by Anonymous Coward

          Stamp collectors noticed, but nobody listens to us. It took four months for someone the USPS couldn't ignore to 'notify' them.

          As a stamp collector, here's a tip: your country isn't fully totalitarian until current politicians start showing up on the stamps and/or money. Once that happens, get the fuck out at any cost. (You won't listen. No one ever does.)

          • here's a tip: your country isn't fully totalitarian until current politicians start showing up on the stamps and/or money. Once that happens, get the fuck out at any cost. (You won't listen. No one ever does.)

            Queen Elizabeth, head of state for several countries, is frequently found on stamps, coins, and bills. However I'd much rather live in those countries than in the USA.

            • by Xolotl ( 675282 )
              Queen Elizabeth is not a politician, and her image is on the stamps in the same way and for the same reasons as it appears on coins and banknotes, as a symbol of the State. for the same reason decorative UK stamps do not have the country name (unlike stamps from other countries) just a small profile of the Queen.
              • by q_e_t ( 5104099 )

                Queen Elizabeth is not a politician, and her image is on the stamps in the same way and for the same reasons as it appears on coins and banknotes, as a symbol of the State. for the same reason decorative UK stamps do not have the country name (unlike stamps from other countries) just a small profile of the Queen.

                That's because Britain invented stamps. Britain invented most things, of course. Pretty much everything apart from aircraft.

                :)

    • by q_e_t ( 5104099 )

      Unfortunately the Statue of Liberty is long out of copyright.

      I would have said it is fortunate. Such an important cultural and politicalicon of that age should be out of copyright to allow people to freely use it in cultural and political ways.

      • Unfortunately the Statue of Liberty is long out of copyright.

        I would have said it is fortunate. Such an important cultural and politicalicon of that age should be out of copyright to allow people to freely use it in cultural and political ways.

        Yes, indeed; it's the American way!
        (1) Statue of Liberty goes out of copyright
        (2) Plagiarize it
        (3) take photo of plagiarized statue
        (4) Profit!

  • by Anonymous Coward

    Getty are a bunch of crooks.

    Claiming ownership of pictures that they have zero rights to...

    Over selling rights, such as this case...

    Extortionist tactics against those they decree to be "violators"...

    Getty needs to be scuttled.

    P.S. The Post Office needs to appeal this bullshit as well as sue Getty.

  • by MobyDisk ( 75490 ) on Friday July 06, 2018 @03:41PM (#56903752) Homepage

    The license only covered the rights to Getty's photograph of the statue -- not the statue itself.

    The stamp only contained the photograph of the statue -- not the statue itself.

    • Yea the law stinks. Or Getty is a fraud.
    • The photo is a derivative work. It's the photographer who is really at fault for selling the photo without rights, but the photographer doesn't have deep enough pockets to bother suing. Though the entity eligible to sue the photographer is the USPS and they are happy to pay the settlement and keep the profits on the stamps they sold.

  • This seems, based on the quote, like the USPS figured a reasonable licensing fee could be worked out, which makes sense. So did the artist try to gouge them? Why would they need to pay royalties on stamps that were never sold? Can't they just destroy them and call it even? Also it sure seems like Getty should be on the hook for a lot of this, otherwise what is the point of paying them for photos at all if they don't actually hold the rights to sell usage of them. You could buy rights to a photo from Ge
    • by Xolotl ( 675282 )
      The unused stamps were sold but have not (yet) been used, they are 'forever' stamps which do not lose their value so could be used at any time in the future. Getty's terms of use explicitly state that licensing responsibility lies with the user (which is IMHO rather shady, but they do state it up front).
  • by Ecuador ( 740021 ) on Friday July 06, 2018 @04:08PM (#56903910) Homepage

    This makes no sense, you pay a big agency like Getty's for the rights of an image and you have to hunt down yourself potential right owners of whatever the images show because it's your fault if others come after you? Is everyone in copyright law, including judges, completely bonkers?
    Rhetorical question it seems, we do have an answer...

    • In their defense, Getty made it clear that they didn't have a property release.

      They offer an additional service where they'll do the research for you to answer whether or not a property release is needed in a particular case and they even further will, for an additional fee, assume responsibility if they are wrong.

      I'm assuming whomever chose that image didn't realize it was the Las Vegas version of the statue and it never occurred to them to even consider the rights issue. However most photos that come up w

  • by Anonymous Coward

    What is the point of paying getty for a licence if it doesn't allow you to actually use the piece of shit without getting sued?

  • by Anonymous Coward

    Stand for freedom. Apparently this isn't the land of the free if you can't even take a picture of a picture of a copy of a picture of the very symbol of liberty without paying. Yeah yeah legal jargon, blah blah, any rational person can see that no justice was given in our justice system in this case.

  • We also don't what what liberty looks like either.

  • Robert Davidson will be paid the equivalent value in forever stamps.

  • Getty should be at fault for licensing a photo of property that they did not have the rights to. They should be the one paying damages.

    Taking this further, it looks like if you photograph property that is not your own, then you have no rights to license said photo. This kind of kills Getty's business model, as well as photography in general. The law is broken, but lawyers don't care.

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