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Apple Nixes iPad Giveaways

KingSkippus writes "According to a story at CNN, Apple has begun enforcing third party promotion guidelines (PDF) that, among other things, restricts organizations from giving away iPads, using the word 'free' to describe any Apple products in a prominent manner, or promoting giveaways of iPod Touches in lots of less than 250 and with Apple's explicit approval."

31 of 388 comments (clear)

  1. Free Apples! by Anonymous Coward · · Score: 5, Funny

    Eve enjoyed it...

  2. They did what now? by Anonymous Coward · · Score: 3, Insightful

    You can't prevent someone from giving your product away. If they bought one, you can't keep them from giving that product to someone else.

    captcha: astound

    As in, I am astounded that they think this can possibly work.

    1. Re:They did what now? by FrostDust · · Score: 3, Insightful

      You can't prevent someone from giving your product away.

      No, but Apple could chose not to ship you anymore iP[a/o]ds. This is targeted at retailers trying to use the products in a promotion to get customers, not at a normal user who wants to give their device away to a friend (although I'm sure that they've already developed DRM to do just that).

      Apple is probably doing this as a proactive maneuver to protect their brand name from being cheapened.

    2. Re:They did what now? by williamhb · · Score: 4, Insightful

      No, but Apple could chose not to ship you anymore iP[a/o]ds. This is targeted at retailers trying to use the products in a promotion to get customers, not at a normal user who wants to give their device away to a friend (although I'm sure that they've already developed DRM to do just that).

      A small bank decides to run a "win one of 5 iPads" competition to new customers. How is Apple going to stop them from sending someone down to the local department store to buy them? (Or five staff to different stores if they want to be sneaky!) Heck, is Apple going to start interrogating every shopper in an Apple Store? "Admit it! You're going to give this way in some filthy raffle aren't you, Miss Whatever-your-name-is! And I bet that's not even a real beard!"

    3. Re:They did what now? by raehl · · Score: 3, Insightful

      Don't you mean:
      iP([ao]d|hone)s

    4. Re:They did what now? by DarkVader · · Score: 4, Informative

      It won't work. You can use someone else's trademark legally to describe the product of that company, there's plenty of case law to back that up.

    5. Re:They did what now? by BasilBrush · · Score: 3, Interesting

      You want case law? Levi's prevented Tesco selling their Levi jeans in their store. Not by cutting off supply... they couldn't do that as the jeans were bought on the grey market. But by using their trademark rights.
      http://www.managingchange.com/dynamic/levi.htm
      (Read all the way to "Levi knocks out Tesco in round 3", don't stop at the first paragraph, or you'll get the wrong impression.)

    6. Re:They did what now? by waives · · Score: 3, Insightful

      Did you see the part where that happened in the UK?

    7. Re:They did what now? by EdIII · · Score: 3, Informative

      Well they are not assured victory in this case. Trademark gives you certain rights and remedies, but I think there is wiggle room here:

      If a party owns the rights to a particular trademark, that party can sue subsequent parties for trademark infringement. 15 U.S.C. 1114, 1125. The standard is "likelihood of confusion." To be more specific, the use of a trademark in connection with the sale of a good constitutes infringement if it is likely to cause consumer confusion as to the source of those goods or as to the sponsorship or approval of such goods. In deciding whether consumers are likely to be confused, the courts will typically look to a number of factors, including: (1) the strength of the mark; (2) the proximity of the goods; (3) the similarity of the marks; (4) evidence of actual confusion; (5) the similarity of marketing channels used; (6) the degree of caution exercised by the typical purchaser; (7) the defendant's intent. Polaroid Corp. v. Polarad Elect. Corp., 287 F.2d 492 (2d Cir.), cert. denied, 368 U.S. 820 (1961).

      That's pretty clear. Intent is big part of the decision process as well as marketing channels.

      Some courts have recognized a somewhat different, but closely-related, fair-use defense, called nominative use. Nominative use occurs when use of a term is necessary for purposes of identifying another producer's product, not the user's own product. For example, in a recent case, the newspaper USA Today ran a telephone poll, asking its readers to vote for their favorite member of the music group New Kids on the Block. The New Kids on the Block sued USA Today for trademark infringement. The court held that the use of the trademark "New Kids on the Block" was a privileged nominative use because: (1) the group was not readily identifiable without using the mark; (2) USA Today used only so much of the mark as reasonably necessary to identify it; and (3) there was no suggestion of endorsement or sponsorship by the group. The basic idea is that use of a trademark is sometimes necessary to identify and talk about another party's products and services. When the above conditions are met, such a use will be privileged. New Kids on the Block v. News America Publishing, Inc., 971 F.2d 302 (9th Cir. 1992).

      That's some precedence against Apple. If XYZ store was giving away 10 iPads in a giveaway for all purchases over a certain amount, Apple would have to fight very hard against preventing that and would most likely lose the case.

      If you're not selling the product, but just giving it away, then Apple is not automatically correct here. IANAL, but I can read the portions of the laws above. I don't think Apple is right to be messing around with free giveaways when their is no intent to damage a trademark (ie, the Anal Bead store giving away anal bead wrapped iPad boxes), and the likelihood of the consumer believing that all free give aways are explicit evidence of Apple's sponsorship of the event.

      I can't agree with your assessment. Sure they might have IP staff, but that does not mean they also don't play the strategy of "we can just bully the smaller people even when we know we are wrong". Many many corporations do so. Nissan, Monsanto, Oil & Gas, Walmart, etc.

      So I don't think it works because of what I understand and can read about trademark law.

    8. Re:They did what now? by meerling · · Score: 3, Funny

      I like using the term 'ijunk'. :D

      (Doesn't mean I wouldn't like to get some, but I can't afford any of them.)

    9. Re:They did what now? by quickgold192 · · Score: 3, Insightful

      There's no trademark infringement - the bank is giving away a bona fide iPad. Just like this post is talking about *actual* iPads. Calling something an iPad that *isn't* an actual iPad is trademark infringement. Saying you'll give away an iPad is simply an accurate statement.

  3. The CD Companies tried to do this by commodore6502 · · Score: 3, Informative

    In 2001 they were sued by the US DOJ for restraint-of-trade, price fixing, and forming an illegal cartel.

    So go ahead Apple. I look forward to seeing you get the same treatment the record companies received. Especially now that the US Congress is investigating you. Not a smart move.

    --
    Information wants to be expensive AND wants to be free. So you have Value vs. Cheap distribution fighting each other.
  4. only applies to special contract purchases by rritterson · · Score: 5, Informative

    I looked at the terms linked in the article. It appears these terms are attached to special purchases from Apple solely for promotional purposes. (i.e., you contact Apple beforehand about buying some for a promotion and they give you a discount). In that case, you are accepting the contract. And it's not like they'd sell you 249 iPods then get pissy because you had fewer than 250.

    But, I believe that if I buy an iPad at retail, I can use it in whatever promotional capacity I see fit as long as I do not violate Apple's IP.

    In short: nothing to see here, move along

    --
    -Ryan
    AUWYHSTOT (Acronyms are Useless When You Have to Spell Them Out Too)
    1. Re:only applies to special contract purchases by Anonymous Coward · · Score: 3, Informative

      Hmm isn't mentioning Apple, iPad or somesuch in your promotional material already a violation of Apple's IP? Unless they grant you permission for it, that is.

      No, if you attribute the trademarks appropriately.

    2. Re:only applies to special contract purchases by SomePgmr · · Score: 5, Insightful

      This comment needed to appear in the summary. It would have prevented a lot of wasted armchair lawyer time.

  5. Only applies to special purchases. by Jane+Q.+Public · · Score: 3, Interesting

    As someone else mentioned, this only applies -- CAN only apply -- to special purchases made under this agreement. If I go buy an iPad at the store, Apple store or otherwise, good luck trying to enforce something like this. I doubt Apple would be stupid enough to try.

  6. Such sheninigans by Roachie · · Score: 4, Insightful

    encheapin our over priced product. We must put a stop to it!

    --
    This sig is not paradoxical or ironic.
  7. Re:Enforceability? by Raul654 · · Score: 5, Informative

    but they can stop you from using the word "iPad", the Myriad Set font, and any other Apple trademarks when advertising the give-away.

    No, they can't. They can only assert their trademarks to prevent market confusion - specifically, against a competing product with a similar name or similar branding. If you are giving away a genuine Apple-made iPad, there is nothing they can do to prevent you from saying that you are giving away an Apple iPad.

    --


    To make laws that man cannot, and will not obey, serves to bring all law into contempt.
    --E.C. Stanton
  8. Re:lolwut? by macs4all · · Score: 3, Insightful

    I'm not sure what they are going for here. If there is a give-away do they think it will water down the brand?

    Not "water down"; but "devalue".

    Personally, I was trying to figure this seemingly wrongheaded policy out myself. And I think I might have figured it out.

    It's called "Perceived Value". Successful marketing in a "technology-driven" company is a curious combination of understanding current (and future) "technology", plus MBA skills, Communication skills, with a dash of Psychology. And the "Psychology" part of that equation tells the Marketeer that when people get things for free, they don't "value" them (or not as much). This, curiously enough, extends even to the people who don't actually receive the item; but even just could have received it.

    Think about it: "Everybody" knows that, when when anybody, especially a business (who is, afterall, "in it for the money"), gives something away, that it is very rarely something they could have easily "made money on" (even if they don't actually sell that item themselves).

    We are all somewhat "conditioned" to the fact that, only "worthless" items are given away as "Promotion". Often it is basically true. Sometimes not (like, for example, a car); but, in all cases, the "Perceived Value" effect remains in the back of everyone's mind. And Apple is smart enough to pay attention to those nuances of human behavior. it doesn't make them evil, or "dickish"; just perceptive.

  9. Re:Ok? by Sniper98G · · Score: 5, Insightful

    You have to understand. Who wants to buy an Apple product only to turn around and see some poor person with one. How are you supposed to feel superior to them if they have one too.

  10. Re:It's official now. by Dahamma · · Score: 3, Informative

    I'm sure Steve Jobs throws chairs all the time. The difference is, he hits what he is aiming at, but then very large tattooed "Apple PR reps" secretly buries the bodies under the Infinite Loop late at night. And no one ever hears about it...

  11. Re:That's okay. by Dahamma · · Score: 4, Funny

    Give them away?

  12. nothing to see here by TRRosen · · Score: 4, Informative

    Don't get so excited this is only for Apple sanctioned promotions where the advertiser wants permission to use Apple trademarks in their ads. Every company has guidelines for this. This really only applies to Apple dealers and sellers. Your free to do whatever you want if your not using Apple's IP or under contract with Apple already.

    Its not a EULA it's an advertising contract. it has nothing to do with consumers.

  13. So one should say ... by PPH · · Score: 4, Funny

    ... "We can't even give these things away".

    Not the sort of PR Apple would want IMO.

    --
    Have gnu, will travel.
  14. Re:That's okay. by hawk · · Score: 4, Funny

    Is this a straight line?

    You buy six more, and put 8 cubes at each corner of your beowulf cube.

    This is still slashdot, isn't it?

  15. Re:Ok? by BasilBrush · · Score: 4, Interesting

    Have you not seen "FREE iPad" and FREE iPhone" spam? Real spam in emails and forums, but also just endlessly repeated web-adverts. It pisses people off. Apple don't want that bad-will to reflect on their products. The reputation of the products and the company are worth far more than the piddling amounts of product that promoters would buy from Apple to run these promotions. Especially as most of them are scams.

  16. Re:Ok? by Anonymous Coward · · Score: 3, Insightful

    What makes you think that scammers and spammers care what Apple says about promotions? These groups are already operating on the fringe at best.

  17. Re:Oh well, by BasilBrush · · Score: 3, Informative

    And if you do so, and want to mention the products names in the promotional materials, then you'll need permission from Google or Blackberry. Or else they can sue you, just as Apple can.

  18. That's not the way trademark law works. by raehl · · Score: 3, Insightful

    Of course, anyone can sue anyone for anything, but Apple would have to prove that the marketing was done in a manner to make it appear that Apple endorsed the contest; simply advertising that you are giving away a product by the name of the product is not sufficient.

  19. also by obarthelemy · · Score: 4, Informative

    they have started enforcing user profile guidelines:

    - people above 25 a body mass index of 25 may not use an iDevice in public. Nor in private in BMI > 30.
    - iDevice users must at all times maintain perfect cleanliness and decorum.
    - conversely, certain professions may *not* use iDevices: exotic dancers, janitors, butchers, fishmongers... if in doubt, contact a Genius, or point your iDevice's camera at you in your trade dress with your last paycheck, and ask "is this OK" twice. A genius will contact you shortly.
    - customers thinking they caught a virus will report to their closer AppleCamp for training on how Apple does NOT have viruses. Repeated offenses will result in termination.
    - your iDevice must remain pristine at all times. Don't allow it to become dirty, no stickers, no un-approved cases.
    - iDevices may not be taken to non-approved areas. if your device starts beeping loudly with a screen flashing red, immediately get back to an approved iDevice utilization zone.

    Apple thanks the California Bureau of Investigations for their help in enforcing those guidelines.

    --
    The Cloud - because you don't care if your apps and data are up in the air.
  20. To cut off "legitimized scalpers"? by ericvids · · Score: 4, Interesting

    Where I currently live (Singapore), the iPad 2 was advertised as "available now!" for several days, but if you ask for one the store will tell you they're out of stock.

    Meanwhile we got so many ad promotions with the magic words "win a free ipad 2" everywhere we turned, from restaurants to supermarkets to banks.

    Long story short: People who wanted them can't buy them for weeks because they've been snapped up by companies intending to give them away instead of selling them. I think Apple is simply preventing this situation from happening again.

    --
    Pet peeve: Profane people propagating perfunctory pedantry.