Weekend Law: Grand Jury Problems, SCOTUS Favors GOP & Taylor Swift | Bloomberg Law
1149 segments
[music] This is Bloomberg Law with June
Graasso from Bloomberg Radio.
Under our system of justice, [music] the
government cannot force anyone to answer
for a serious crime unless you, [music]
the people of the community sitting on a
grand jury, decide there is enough
evidence to warrant an indictment. It is
you who protect the rights of both
victims [music] and defendants. In an
orientation video for new grand jurors,
the chief judge of New York, Rowan
Wilson, explains the importance of the
grand jury in protecting individuals
from the power of an abusive prosecutor.
But in the United States and the state
[music] of New York, we protect against
prosecutorial abuse by requiring the
prosecution to first convince a panel of
regular [music] citizens just like you,
a grand jury, that there is probable
cause or good reason to charge someone
with a crime.
>> And in the past several months, it
appears that grand jurors across the
country are doing just that. The Justice
Department has encountered case after
case where grand jurors are refusing to
return indictments. And in some of those
cases, federal judges have accused
prosecutors of misconduct during the
grand jury proceedings. One example, in
a high-profile case, at the end of May,
just days before trial, there was a
stunning implosion of a case against a
group of protesters accused of blocking
a federal agent from an ICE facility in
Chicago. Judge April Perry said her
trust in federal prosecutors had been
broken after finding out that
prosecutors improperly spoke to grand
jurors outside the grand jury room,
personally vouched for the strength of
the case, and excused grand jurors who
disagreed with the government's case. My
guest is former federal prosecutor Jimmy
Gerle, a professor at Notre Dame Law
School. Jimmy, what's your reaction to
the prosecutor's misconduct during the
grand jury proceedings?
>> They're shocking. It's a scandal.
Prosecutors are supposed to be a
minister of justice, not a minister of
corruption, dishonesty, and deception.
And that's what we're seeing here. I
think this was just the end justifies.
You know, they wanted to get indictments
against these Chicago protesters, and
they were going to take no for an
answer. So basically, this was an
attempt to rig the grand jury system to
ensure that they would get the
indictments that they were seeking.
>> The judge said that she'd read through
hundreds, if not thousands of grand jury
transcripts, and she'd never seen this
behavior from prosecutors. So, let's go
through some of the things she found
disturbing. Explain what's wrong with a
prosecutor vouching for the case, saying
something like, "You can believe me. We
have the evidence to prove this case."
The grand jurors are to make the
decision of whether or not there's
probable cause to believe that a crime
has been committed and if so whether
there's probable cause to believe that
the target of the grand jury
investigation committed the crime. And
those decisions should be made
exclusively on the evidence that's been
presented to the grand jury. Not the
prosecutor's opinion regarding the
strength of the case, the strength of
the evidence, but on the evidence
itself. And this is very basic
fundamental, you know, professional
responsibility 1.0. This wasn't a
mistake. I mean, this was just a blatant
violation of fundamental rules of
professional responsibility and ethics.
>> Talking about blatant speaking to grand
jurors outside the grand jury room and
then dismissing some grand jurors, how
would they expect to get away with that?
I mean, is the problem that the grand
jury process is secret? And how does a
defense lawyer or a judge know what's
going on? That's exactly the case. And
so because of the secretive nature of
the grand jury proceedings, I'm sure
that prosecutors think, well, whatever
we're doing that's improper, whatever
misconduct we're engaged in is not going
to be revealed. It's not going to be
disclosed.
>> And I mean, this is not the only case.
In Wyoming, a panel of three judges
threw out nine indictments, including
some for murder after the examination of
the grand jury proceedings revealed
misconduct by the Trump appointed US
attorney who had had no prosecutorial
experience at all. So, you have
inexperienced people leading a US
attorney's office, but some of this
seems really basic.
>> Oh, it is. You know, there's really no
excuse. I mean, this goes to just
fundamental principles of fairness and
due process, independence, impartiality.
As I stated, this is an attempt to rig
the system to obtain the result that the
prosecutors are seeking to obtain, which
is shocking considering the fact that
the grand jury system really favors
prosecutors. There's no judge. There's
no defense lawyer. The standard of proof
is merely probable cause. And then in
addition, the prosecutor doesn't have to
prove probable cause by unanimous
determination of the grand jurors. All
they have to prove is 12 of the 23 grand
jurors. Just a simple majority have
concluded that there's probable cause.
And further, the rules of evidence don't
apply in the grand jury room. So
prosecutors can introduce hearsay
evidence, double hearsay, triple hearsay
evidence. And despite all of these rules
favoring the prosecution, these
prosecutors still felt that it was
necessary to rig the system. They were
confident that they could prevail based
upon those rules and they needed to
reach out and have improper contact with
the members of the grand jury with
respect to grand jurors that had decided
against them in prior cases. They
decided, well, let's just exclude those
grand jurors. We don't want them on the
grand jury because they might decide
against us. I mean, this is just
shocking conduct and most disturbing.
It's not limited to the fairness and the
injustice of the particular case, but it
creates a loss of trust. There's this
loss of trust in the Justice Department
that's beginning to emerge and judges
across the country are beginning to
question, can we really believe what the
prosecutor is saying? and we really
trust the arguments and the
representation that prosecutors are
making. And when we get to that point,
that becomes a crisis. I think that
we're really on the verge of a crisis
within the Department of Justice.
>> And that appeared to have happened in
this case. Judge Perry told Andrew Bros,
the US attorney for Chicago, who
personally came into the courtroom to
dismiss the case. Quote, I do believe
deeply in the presumption of regularity
and that most government attorneys are
doing the best they can to do the right
thing. That trust has been broken and
that's been happening in courtrooms
across the country. And what we're
beginning to see is in more and more
cases, defendants are challenging,
raising legal challenges to the
integrity of the procedures of process
inside the grand jury room. And this is
now an argument that is being raised in
multiple cases across the country.
Again, challenging the regularity of
fairness, the presumption of regularity.
And again, I think it is creating a
crisis of trust, crisis of trust within
the Department of Justice. and not only
with judges but I think more broadly
with the public at large. If the public
starts losing trust in the criminal
justice system starts losing trust in
the integrity of prosecutor's offices
then that does not speak well for the
future of criminal justice in this
country. As you mentioned, lawyers in
journalist Don Lemon's case as well as
the case against the Southern Poverty
Law Center referenced the Chicago Grand
Jury. And some defense lawyers are
trying to get the transcripts of the
grand jury proceedings, which had always
been super super secret, shall we say?
But I mean, Judge Perry is thinking of
releasing the grand jury transcripts
here. How else can defendants really
find out what happened in the grand jury
room? Well, that creates a problem
because grand jury secrecy is threatful.
It's embodied in rule 6 of the rules of
criminal procedure. And it's important
because we want persons that appear
before the grand jury. We want them to
testify openly, freely, be frank, and
open about what evidence they may have.
And if their identity is going to be
disclosed, then this could have a
chilling effect on their willingness to
participate in the grand jury
proceeding. So it has implications far
beyond the individual case. But when the
seed of distrust has been planted with
the courts, with the general public,
we're going to see more and more
challenges to the integrity of the grand
jury process. And it could have a
chilling effect with respect to
witnesses willing to come forward and
testify before the grand jury for fear
that again the transcript is going to be
disclosed and maybe their name might not
be disclosed but someone could determine
their identity based upon the testimony
that is presented to the grand jury. The
Chicago US Attorney's Office is reaching
out to the defense attorneys in cases
that were handled by these prosecutors
and they've agreed to give the defense
the minutes of the grand jury
proceedings in their cases.
>> This is totally unheard of. In all the
years that I worked as a prosecutor, as
an assistant US attorney, as a DOJ
prosecutor, this didn't happen. What
we're witnessing today is not normal.
You know, this is exceedingly rare and
it's very disturbing and it raises
serious consequences about prosecutors
that are engaging in this misconduct and
they should not be leaving their ethics
outside the grand jury room. We need
prosecutors that embrace honesty,
justice.
>> They're going to have a sanctions
hearing. Do you think that these
prosecutors will be sanctioned?
>> Well, it's possible this misconduct in
the Chicago case in particular is quite
quite egregious. So, I think that there
could be some individual sanctions.
We'll wait and see. When prosecutors
engage in gross misconduct, there are
very few sanctions that they are
subjected to. And that's part of the
problem. And that's in large part
because of qualified immunity because
internal disciplinary proceedings within
the bar is very difficult. It's a very,
very high standard, high bar that has to
be met in order to to sanction the
prosecutor. And so there isn't much of a
deterrent effect. So if if you engage in
this type of misconduct, yeah, the case
might be dismissed, but there's nothing
that's going to happen to the prosecutor
personally for his or her misconduct.
And I think that's a problem. There's no
price to pay. So if you're not going to
be sanctioned, then what's a
disincentive here for engaging this kind
of conduct? The Chicago US Attorney's
Office is implementing a quote
remediation plan for its grand jury
procedures and that includes increased
and expanded education about grand jury
presentations and extensive deep dive
training from national experts outside
the office.
>> You don't need deep dive training on the
violations that are at issued here. I
mean, the prohibition on vouching
regarding the evidence, that doesn't
need any kind of a deep dive. That's not
a a complicated issue that requires, you
know, extensive training. Dismissing
members of the grand jury that you don't
like. This stuff is just so
fundamentally basic. It doesn't require
any type of extensive extra deep dive
training for prosecutors to know right
from wrong on these very fundamental
issues. It's just so disturbing. You
know, we're seeing cases being dismissed
because of selective prosecution. We're
seeing grand jurors time and time again
failing to uh to bring charges because
they think that the evidence doesn't
support the charges or they've been
overcharged by the prosecutor and all of
it is just it's really damaged the
reputation of the Department of Justice
and it's going to take I think years and
years to regain that trust with the
judiciary with members of the court with
the general public. This is going to be
damaged. It's going to be longlasting.
It's not going to be quickly remedied.
>> I'm sure we're going to hear a lot more
when grand jury transcripts are released
in some of these cases. Thanks for
sharing your insights, Jimmy. That's
Professor Jimmy Gerle of Notre Dame Law
School. Coming up, Taylor Swift is
fighting allegations of trademark
infringement over her hit album, The
Life of a Showgirl. I'm June Grao and
you're listening to Bloomberg. The
Supreme Court's conservatives made
another decision this week, favoring
Republicans in the redistricting frenzy.
The court itself set off with its
decision eviscerating the Voting Rights
Act in a 6 to3 vote with Republican
appointees in the majority and
Democratic appointees in descent. The
court reinstated a Republicanfriendly
congressional map in Alabama. It allows
the state to eliminate a majority black
house district and likely flip that
Democratic district in the midterms. In
doing so, the court rejected the
decision of a panel of federal judges
that found Alabama intentionally
discriminated against black people when
drawing that map. This ruling caps a run
of redistricting decisions in the past
six months that have bolstered
Republican chances to retain their
narrow majority in the House. Although
Chief Justice John Roberts continues to
insist that the justices do not make
decisions based on politics,
>> the notion that we carry forward the
views of the people that appointed us is
is absurd.
President George W. Bush appointed me 20
years ago. The idea that I'm carrying
out his agenda somehow is absurd.
>> If you're keeping count, the Alabama
decision makes it Republicans five,
Democrats won in the redistricting
battles before the Supreme Court.
Joining me is Bloomberg Supreme Court
reporter Greg Store, who is keeping
count. Greg, I'm not going to ask you to
go all the way back through the years,
through all the times the Alabama
legislature has been before the Supreme
Court over its maps. Just go back to the
latest decision by the three judge panel
at the end of May.
>> The three judge panel said that Alabama
needed to keep a second majority black
district. And it said that for two
reasons. First of all, the court said
Alabama had previously engaged in
intentional discrimination and defied
earlier court rulings by trying to draw
a key district that had just a little
bit less than a majority of black
voters. And secondly, the lower court
said the primary election is on August
the 11th and there's just not enough
time for the state to shift everybody to
different districts in time for that
election. And so by keeping the existing
map which has the two majority black
districts, we're actually reducing the
amount of confusion that would occur
over the next few weeks.
>> And I just want to point out that that
three judge panel consisted of two Trump
appointees and a Clinton appointee. Now
tell us about this unsigned Supreme
Court decision of just a little over
three pages rejecting the decision by
the panel which was supported by
findings in a 79page decision. It was an
unsigned opinion, but it was basically a
6-3 ruling with the six conservative
justices, the six Republican appointees
in the majority. And what they said is
that the lower court got it wrong in
multiple respects. It said, among other
things, this big ruling the Supreme
Court issue on April 29th that really
scaled back the use of the Voting Rights
Act and redistricting that that undercut
the claim against Alabama. It also said
that the lower court was too quick to
presume that Alabama legislators were
acting with racial animous that they
should have accorded more of a
presumption of good faith for the
legislature. And finally, the Supreme
Court said the six and the majority said
that if there's going to be chaos
leading up to the election, that's the
state's choice. It's not for a lower
court to intervene and say we're going
to do something because it's going to
reduce the confusion. that's on Alabama
and if they want to proceed this way
they can.
>> Justice Sonia Sotomayor wrote a
blistering disscent and she said this
decision corrods the rule of law.
>> Well, she she didn't hold back. She
wrote for all three of the court's
liberals and she said that the court is
disregarding both democratic values and
the rule of law. She said that when the
Supreme Court issued that Voting Rights
Act decision a few weeks ago, it
explicitly left open the possibility
that there could be a showing of
intentional discrimination by a state
against minority voters. And she said
that's exactly what the lower court
found in this case. She also pointed out
that, you know, this Alabama case has a
really long entangled history that I
won't walk all the way through, but the
Supreme Court has actually ruled in this
very case after hearing arguments
before. And what it said in that case
was we're going to uphold this lower
court decision that says that there has
to be a second district where black
voters can select the candidate of their
choice. And so says that the Supreme
Court has effectively ignored that. And
finally, she pointed out what the lower
court pointed out, which is that this is
going to invite chaos. The director of
elections has suggested it's going to be
near impossible to shift everybody into
the proper districts in time for the
August 11th primary election. And so, we
will see how that works out in Alabama,
but she at least is skeptical that it
will be a smooth process. So this is the
first test since the justices weakened,
I say, eviscerated the Voting Rights
Act. Is this sending a message that even
findings of intentional discrimination
are not enough? I mean, what's the
message here?
>> It certainly suggests that that might be
the case. That was the area that the
court said it was leaving open when it
ruled in the Voting Rights Act case on
April 29th. But in this case, a lower
court, as you pointed out, in a lot of
detail, explained why in its view, this
was different from that case because it
involved that intentional discrimination
because they said Alabama legislators
were trying to limit black voting power.
And the Supreme Court said, and even was
willing to do it in this emergency
posture where it didn't have a whole lot
of time to, you know, hear arguments and
that sort of thing. It was willing to
say, "We're sure enough that the lower
court got it wrong, that we are going to
block that ruling and allow this
district that the lower court thinks is
a product of intentional discrimination.
We're going to allow that map to be in
place for the November election."
>> Greg, when you look at the redistricting
decisions from the court since December,
they've overwhelmingly favored
Republicans. And like in this case, it's
always by 6 to3 votes with the
Republican appointees in the majority
and the Democratic appointees in
descent. So it's hard to look at these
decisions as anything but political
despite how much the chief protests that
they're not political actors.
>> It is certainly having a big effect and
that effect is to help the Republican
party and in particular for the November
election. So there are basically six
states in this cycle where the Supreme
Court has acted in redistricting cases.
They're not all the same, but
Republicans have won five of them. So
there was the Big Voting Rights Act
case, which was a Louisiana case.
There's this one. There's a case where
they blocked a lower court ruling that
would have required a new map in New
York. There was Virginia where the
Supreme Court refused to reinstate a
Democratic drawn map that the voters of
the state had approved after the state
supreme court blocked that map. And then
there was Texas where they interveneed
to let Texas Republicans change the map
there. Now the Texas case was very
similar to a California case later on
that ended up helping Democrats letting
them put a new map in place. Then the
the big voting rights act decision also
spawns some redistricting in states like
Tennessee, eliminating some majority
black and Democraticleaning districts.
And the upshot of that will be that
there will be a number of districts that
used to be fairly safe Democratic
districts that are now going to be
fairly safe Republican districts in
November. And we haven't even talked
about other types of cases, election
cases the Supreme Court has that might
also affect the election in November.
the PCEL principle about judges not
interfering close to an election. I've
been discussing that a lot lately and
I'm confused about what the Supreme
Court considers the Purcell principle to
be.
>> You join Justice Sotomayor there. Um the
PCEL principle and it's named after this
2006 case that invoked the idea in the
first place. The idea is that federal
judges shouldn't intervene at kind of
the last minute to change the rules of a
state-run election. And the Supreme
Court over the years has started to make
pretty clear that while that restricts
lower court federal judges, it doesn't
restrict them. So in this case, one of
the things the Supreme Court said, it
didn't use the word PCEL, but that was
the principle it used was that when this
three judge panel reinstated the earlier
map in a ruling that came down just a
week or two ago, that that was
interjecting itself improperly in the
way the state wanted to conduct the
election with this other map. And it
didn't matter to the Supreme Court that
the only reason the lower court had to
act again was because the Supreme Court
itself had previously vacated a decision
that everybody thought up until a month
ago was going to govern the fall
election. So the Supreme Court is
restricting federal courts. It is giving
a lot of leeway to states that want to
redistrict, particularly for partisan
purposes. and it is leaving open the
possibility that it itself might cause
some confusion as long as it is moving
in support of those principles of
letting states craft their own maps and
keeping lower court judges from
overstepping their authority.
>> It's nice to be able to exempt yourself
from a rule. Greg, tell us about the two
cases the Supreme Court has yet to
decide that may affect the elections.
>> One is a campaign finance case. It
involves what right now is a limit on
so-called coordinated party
expenditures. In other words, money that
political parties can spend in
coordination with their candidates. And
the Supreme Court sure seems like it's
going to overturn those limits. This is
a court that very much sees campaign
finance restrictions as a problem for
free speech. And if they do that, it
will give parties a lot more power and
at least for November will probably help
the Republican party because they have a
lot more cash on hand right now than the
Democratic party does. And they will
also be able to use this money when you
spend money in coordination with a
candidate. You can get these discounted
rates that candidates can get. So that's
one that the Republican party is almost
certain to win. The second case has to
do with the deadlines for mail-in
ballots in which the argument is that
Congress has set election day for a
particular date in November and all
ballots have to be received by that day.
A number of states right now have laws
that say as long as the ballots are
postmarked by that day, we'll give you a
few extra days for them to actually
arrive. The Supreme Court might knock
out those laws. Republicans are the ones
who are arguing for those strict limits
and Democrats are the ones who say that
grace periods are appropriate. Remains
to be seen exactly how much effect that
has.
>> The Supreme Court is expected to
announce decisions again this Thursday.
We'll see if these are among them.
Thanks so much, Greg. That's Bloomberg
Supreme Court reporter Greg Store. I'm
June Grao and this is Bloomberg.
>> [music]
>> Her name was Kitty. Made her money being
pretty and witty. They [music] gave her
the keys to this city. Then they said
she didn't do it legitly.
>> Taylor Swift's The Life of a Showgirl
[music] was the fastest selling album in
history. It became the pop star's 15th
number one album. Not quite as fastm
moving. In fact, about 6 months later
came the lawsuit by a former Las Vegas
showgirl who claimed that the album's
title infringed on her trademark for the
phrase confessions of a showgirl. And
Maron Flag is asking a court for a
preliminary injunction to stop swift
from using the phrase while the
litigation plays out. My guest is
intellectual property litigator Terren
Ross, a partner at Katen Rosenman.
Terry, tell us about this trademark
infringement dispute.
>> The plaintiff was a showgirl in Las
Vegas. She at one point in time started
a blog, I guess it would have been
called in those days, talking about her
life as a showgirl and how challenging
and difficult life in the entertainment
business Las Vegas is. It morphed over
time into a cabaret show. She at one
point decided that she would register as
a trademark the title she was using for
this which is Confessions of a Showgirl.
And that was back in 2014.
In August of 2025, last August, Taylor
Swift announces her next album will be
entitled The Life of a Showgirl based on
her experiences of her worldwide tour.
The plaintiff, Miss Flag, saw this at
the time as everybody in America did.
Everybody knew that Taylor Swift had a
new album coming out. It was going to be
called Life of a Show of Girl. Miss Flag
chose not to do anything. In the paper,
she argues that, well, she did not
realize that it was going to be used as
broadly. She did not realize that Taylor
Swift was going to seek a trademark
registration in it. She has other
excuses. Shortly after the announcement,
Taylor Swift's lawyers applied for a
trademark registration in the word mark,
The Life of a Showgirl. In I think it
was November of 2025, the United States
Trademark Office issued a non-final
office action saying that they were
going to deny the application as likely
confusing with other marks that already
existed. Notwithstanding that, the album
was launched. A wide range of products
were sold. The album used the title The
Life of a Shell Girl and many of these
products that were being sold by Taylor
Swift's various business entities also
used that clearly in a trademark sense.
In March of 2026, the United States
Trademark Office suspended Taylor
Swift's application. There is a
suggestion in the papers that this was
at the request of the plaintiff, Marin
Flag. I don't know if that's true or
not, but within weeks of the suspension
of Taylor Swift's trademark
registration, Miss Flag filed a lawsuit
in the Central District of California,
which is the Los Angeles area, in which
she alleged trademark infringement of
her registered mark in the trademark
confessions of a showgirl, as well as a
federal cause of action for unfair
competition and a California state cause
of action for unfair competition. And a
couple weeks after filing the lawsuit,
Miss Flag also filed a motion for a
preliminary injunction. Now, a
preliminary injunction essentially is a
procedure by which a plaintiff in a
lawsuit can have something stopped
pending the outcome of the lawsuit. It
is a very hard thing to get and for
understandable reasons. No decision is
made on the merits of the case and yet
you're asking the court to make the
defendant stop doing something. So there
it's a very high bar to obtain a
preliminary injunction. Miss Swift and
her business entities responded and
opposed that motion for a preliminary
injunction as you expect. And a hearing
was held on May 27th, 2026 in front of
Judge Marillo in the Central District
California. And that's essentially where
we are procedurally. And at the hearing
on the motion for preliminary injunction
last week, Taylor Swift's attorney
argued that The Life of a Showgirl
didn't infringe on Flag's trademark
because it was absolutely undisputed
that the album is an expressive work
entitled to legal protection. So
protected by the First Amendment. Is
that the basic defense argument?
>> Well, that's one of many arguments. The
defense took the typical shotgun
approach where it threw up every
argument under the sun, some of which
are stronger than others. Clearly, at
the core of the argument, however, was
the notion that the First Amendment
protects expressive speech against
trademark liability. And this is a
doctrine that was first pioneered by the
second circuit which is New York and
Connecticut in connection with a movie
that used Ginger Rogers name as part of
the title. And that lawsuit was called
Rogers versus Grimaldi. And the test
that was developed, the doctrine that
came out of that became known as the
Rogers test. And at its core, it says
that you cannot use trademark to
restrict expressive speech because of
the first amendment protections. You and
I talked about a case about a year and a
half ago in the Supreme Court that
adjusted the Rogers test. It was a case
involving Jack Daniels versus VIP Toys.
In that case, the Supreme Court cabined
the Rogers doctrine. In other words, it
took a position that Rogers doctrine has
to be narrowly interpreted to apply to
the titles of expressive works. In light
of that case, a lot of changes have
happened in the way we approach
trademark law in the context of
expressive work, such as Taylor Swift's
album. Now, all that said, it seems
pretty clear to me that the album's
title, Life of Sha, is going to be
preserved even in its changed form, the
Rogers test will still protect that
because it is being used as a title of
an expressive work, Taylor Swift's sound
recordings. And so, I think at the end
of the day, that's a win for Taylor
Swift. And indeed it seems as if in her
briefs the plaint of Miss Flag concedes
that that the Rogers test applies to the
title of the album. The distinction
drawn by a plaintiff is it should not
apply to anything else and that is a
slightly better argument by the
plaintiff.
>> Swift's attorney also argued that the
plaintiff waited 8 months after the
album was first announced to ask for an
injunction and that shows there's no
urgency or need for immediate relief.
and also that during some of those
months she tried to associate herself
with Swift and the Life of a Showgirl
album in her messaging. The defense says
in one post the plaintiff used an album
cover logo, audio from the album's title
track, hashtags including the life of a
showgirl, Swifties, and Taylor Nation.
Is that a problem for the plaintiff?
It's probably worthwhile to briefly
without giving a law school lecture
explain how you get preliminary
injunction. It's very hard to get it.
The party seeking a preliminary
injunction has to prove four things.
They have to prove first and foremost a
likelihood of success on the merits.
That at the end of the day, they're
going to win and it's not worth the time
to wait. Just give me the injunction.
Now, the second thing they have to prove
is irreparable harm. That money damages
at the end of the process isn't going to
be good enough. And the third thing they
got to show is that the balance of
hardships tips in their favor. More pain
is going to be inflicted, more damage is
going to be inflicted on the plaintiff
by waiting until the end of the case for
an injunction than inflicted upon the
defendant by granting the injunction
now. And then the fourth thing you have
to show is that a preliminary junction
would be in the public interest. So this
is part of what is known in the old
English law procedure is equitable
jurisdiction. So it's within the equity
power of the court. You don't have a
jury deciding this. It's decided by the
court. If you come into equity seeking
some sort of equity remedy, as Miss Flag
has here, you have to do equity. And one
of the ways you get undone, one of the
ways you aren't doing equity is to come
into equity with unclean hands is the
doctrine that Stone has. And here the
defense is making the argument that Miss
Flag has been riding the coattales of
Taylor Swift and her phenomenal new
album, Life of a Showgirl. and that
constitutes unclean hands and therefore
on that ground alone a preliminary
injunction has to be denied because
coming into equity and she's not doing
equity. I think it's a real stretch of
an argument. I think it is an argument
that makes more sense in a jury setting
where you can persuade lay people that's
just unfair what's going on here. I
don't think that argument in of itself
will go very far. It's like a flavor of
the case.
>> So then what do you think is Swift's
best argument? I think the strongest
argument for the defense here was the
one they made that there's no likelihood
of success on the merits. And every
circuit court, every court of appeals
has a different standard and different
name. But here in the ninth circuit,
it's referred to as the sleek craft
factors based on an old ninth circuit
case. There are eight things you have to
show to prove likelihood of confusion.
They are questions of fact. Questions of
fact have to be decided by a jury, not
by a judge. It makes it really, really
hard in trying to get a PI in a
trademark case to satisfy the likelihood
of success in the marriage. Just think
about it this way. Are you confused by
this notion confessions of a showgirl
versus life of a showgirl knowing that
the one is Taylor Swift? This is the
problem with plaintiffs suing
celebrities. Everybody in the world
knows Taylor Swift. Come on, let's be
honest. And this is the bestselling
album of all the great albums and songs
she's had. This is the bestselling album
so far in her career. And I believe the
bestselling album of all time. And it
makes it real hard to think in your mind
that oh, this cabaret act being done by
M. Flag is somehow associated with
Taylor Swift. It's just very hard to
see. But that said, a jury gets to make
that decision. And one big part of that
is has anybody really been confused out
there? The plaintiff says, "Oh yeah,
there's all these acts of confusion.
People are hashtagging me into
conversations, hashtagging my mark into
conversations, vice versa." I don't know
that that's actual confusion. So that's
why we do expert surveys. We go out and
we find the audience for these types of
goods and products and entertainment
services and we have the experts do
survey to see if anybody's actually
confused. We haven't done that yet. At
the end of the day, I think the district
court judge is likely to say, "I can't
on this record find a likelihood of
success on the merits because I can't
find likely confusion and therefore
could deny the preliminary injunction."
That's just my opinion. But, you know,
reading the tea leaves of the oral
argument at the hearing seemed like the
judge was disincined to grant
preliminary injunction. Anyway,
>> putting the preliminary injunction
aside, let's say this goes to trial.
Which side has the better case? I think
this is one of the more interesting
celebrity cases that I've seen come
along because both sides have pretty
good arguments and we are living in a
postJ Daniels world where the Supreme
Court has changed the Rogers test and we
really don't know the parameters of it.
The one thing I'm pretty confident of is
that the album will not have to change
its name and that the album will not get
recalled or selling of the album gets
stopped or streaming of the songs get
stopped. I would bet dollars to donuts
on that. And that's not simply because
the music's phenomenal and Taylor Swift
is who she is. I think as a matter of
law and approaching this from a neutral
perspective, I think the Rogers test
still applies to titles of musical
works. And so I think that's the one
outcome I'm certain of. However, I'm
really uncertain about all the other
products that are being sold by Taylor
Swift entities that are also using the
trademark Life of a Showgirl. I'll give
you one example. Apparently, some Taylor
Swift entity is selling candles with
that name. I don't know why they would
choose to sell candles with that name.
I'm not enough of a Swifty, I guess, to
understand that. I probably should have
consulted one of my daughters, but it is
using that that mark and that's not
expressive conduct and therefore it's
not entitled in my view to the
protection of the Rogers test. Now, the
defense argues it's a promotional
product to support the album. And I'm
really hardressed to see that. I went
online and it looked like these products
are just goods being sold to the public.
And Taylor Swift's business entities do
this all the time. They're constantly
selling t-shirts and things of that.
Like, I don't see how this promotes the
album. Maybe I'm missing something. The
defense points to another case that came
out recently in same court, Central
District, California, different judge
though that took the position that
promotional products are protected by
the Rogers test. And there not a lot of
case law on that out there. I'm not sure
that court got it right. But also, I
think it's factually different from here
where we're selling candles. I mean, if
you're selling Taylor Swift t-shirts
with that logo on it at a Life of the
Showgirl concert, I think you probably
got an argument. It's promotional
product. But I don't know if these
candles and other goods are promotional
products. One, and two, the Supreme
Court didn't tell us whether or not
promotional products are covered by the
Rogers test anymore. The other argument
that's made by the plaintiff that I
think is a very interesting argument is
that the fact that Taylor Swift went out
and applied for a trademark
registration. You only apply for
trademark registrations if you intend to
label or brand a good or service. And
that's exactly what the Supreme Court
Jack Daniels said is not protected by
the Rogers test. So that might have been
a mistake on the part of the Taylor
Swift entities because I think by
applying for the trademark, they're sort
of conceding that the phrase life of
Shuggirl is going to be used in a
business identifier sense. And the
Supreme Court said, "Sorry, you lose
protection when you do that." But these
are all issues of first impression
because we're in this new world with
this new Rogers test post Supreme
Court's decision Jack Daniels. And
that's what makes this so interesting. I
consider it fascinating. And an
interesting point that the plaintiff
makes in its motion for preliminary
junction is the fact that if the lawyers
who applied for Life of a Showgirl
registration on behalf of Taylor Swift
had done the most cursory trademark
search, they would have found her
trademark and that should have given
them pause. And the paper then goes on
to explain that assuming that the
lawyers did such a search that means
that Taylor Swift went forward with the
application and use of the mark knowing
that there was another mark out there
and therefore the infringement has to be
branded as willful and intentional which
is bad thing obviously especially on the
damages side. It is absolutely true that
whenever we file for a trademark
application, we conduct a search of the
existing register marks at a minimum. in
a really important trademark
application, as I would consider this to
be a really, really important trademark
application for Taylor Swift's new
album. In addition to searching the
trademark registration list, we would
search all the 50 states doing business
names, uh, incorporation names. We would
do a Google search is a really
comprehensive search to make sure we
weren't getting into trouble and that we
were using a viable name and getting
registration, a viable name before we
launched the business. I can't imagine
that didn't happen here. And that makes
it even more interesting whether or not
the lawyers who did the search and
reported back to Taylor Swift gave her
some sort of assurance or opinion that
she would prevail if challenged. And I
would have loved to been a fly in the
wall that discussion when they came back
and told Taylor Swift, "Uh, I'm sorry.
Somebody's already got confessions on
the show, girl. So, we got a problem
here." I mean, that would have been very
interesting to see her reaction. But
that is ignored completely in the
defense opposition to the motion for
preliminary injunction, which I also
found interesting and very telling that
they want to stay away from any
discussion of whether or not they did a
search and what the search found and why
they went forward with the name. Anyway,
these little little subtleties in
briefs, it's always interesting to see
what the thinking is and what's going on
behind the scenes by a few little
subtleties in the briefs like that. So
Terry, just to clarify one thing, let's
say the Rogers test doesn't apply
because of the trademark element to it.
I mean, do they then go to a likelihood
of confusion test? What's the test after
that?
>> Yes, that's exactly right. That means
that the central defense, first
amendment defense is not applicable. And
so you engage in ordinary process of
determining whether or not trademark
infringement has taken place. And that
is the likelihood of confusion test. is
the consumer for these goods and
services likely to be confused between
the two products, the two services as a
result of the two different trademarks
being used. And again, that's would go
to the jury for a decision. I I would
love to see how the survey of consumers
is constructed because I think that
would be complicated. I'd love to see
the results. You may get to
>> we may well you know there's an
interesting subtext in the pleadings on
the motion for preliminary injunction.
One of the requirements is you have to
show that the harm is irreparable. And
by irreparable they mean can't be fixed
by monetary damages. In arguing that the
harm is not irreparable, the defense
argued that we can simply pay money to
the plaintiff at the end of the day if
this is infringing. And I don't know how
that was intended, but I read it as an
invitation to settlement talks that
we'll simply buy the mark from you. And
certainly Taylor Swift's in a position
to throw money at at problems like this.
And I think if the plaintiff loses the
preliminary injunction motion, that puts
Taylor Swift and the defendants in much
stronger bargaining position. And we
might then see a settlement. And we
might never get to see a survey. We
might never get to see how the jury
reacts to any of this. But that's
probably for the best for the judicial
system. Although for those of us who
follow these things, we'd really like to
see a judicial decision on some of these
issues of first impression.
>> Oh yeah. Taylor Swift to the courtroom,
please.
>> That would be fascinating. That would be
a hard ticket to get. Almost as hard as
her tour.
>> Don't forget to ask your daughters about
those candles, Terry. Thanks so much as
always. That's intellectual property
litigator Terrence Ross. And that's it
for this edition of the Bloomberg Law
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This episode of Bloomberg Law explores three primary legal topics: the recent instances of prosecutorial misconduct in federal grand jury proceedings, the Supreme Court's controversial decisions in state redistricting cases, and a trademark infringement lawsuit involving Taylor Swift.
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