INTERNATIONAL OLYMPIC COMMITTEE, a corporation organized and
existing under the laws of Switzerland; United States
Olympic Committee, a corporation organized and existing
under the laws of the United States of America,
Plaintiffs-Cross- Defendants-Appellees,
v.
SAN FRANCISCO ARTS & ATHLETICS, a California corporation,
and Thomas P. Waddell,
Defendants-Cross-Plaintiffs-Appellants.
Nos. 84-1759, 84-2528.
United States Court of Appeals,
Ninth Circuit.
Jan. 27, 1986.
As Amended May 22, 1986.
Dissenting Opinion May 28, 1986.
Before GOODWIN and WALLACE, Circuit Judges, and STEPHENS, District Judge.*
Upon petition for rehearing and suggestion for rehearing en banc, the panel has voted to amend its opinion entered herein January 27, 1986,
On page 737, column 1, line 11 from the bottom, insert footnote marker 1/ and the following text:
SFAA contends that our finding of no state action conflicts with Martin v. International Olympic Committee,
On page 738, column 1, renumber the footnote to 2/.
The full court was advised of the suggestion for rehearing en banc. An active judge called for a vote on whether to rehear the matter en banc. The request for en banc consideration failed to receive a favorable majority of the votes of the active judges.
The petition for rehearing is denied and the suggestion for rehearing en banc is rejected.
KOZINSKI, Circuit Judge, with whom PREGERSON and NORRIS, Circuit Judges join, dissenting.
This case was brought by the United States Olympic Committee (USOC) and others under the Amateur Sports Act of 1978 (the Amateur Act), 36 U.S.C. Secs. 371-396 (1982), to enjoin the use of the word "Olympic" by appellants, San Francisco Arts & Athletics (SFAA) in connection with an event to be known as the Gay Olympic Games. USOC is a private nonprofit corporation chartered by Congress, 36 U.S.C. Secs. 371, 377 (1982); SFAA is a non-profit corporation. The Gay Olympic Games SFAA intended to sponsor in 1982 (and again in 1986), were "designed to combat homophobia and to work for the health and tolerance of gay and lesbian persons." Pet. Reh. 2.
A panel of this court upheld a permanent injunction issued after summary judgment had been granted to USOC. International Olympic Committee v. San Francisco Arts & Athletics,
I.
A. As the panel interprets the Amateur Act, the USOC is given the exclusive right to use the word Olympic "for the purpose of trade, to induce the sale of any goods or services, or to promote any theatrical exhibition, athletic performance, or competition," 36 U.S.C. Sec. 380, whether undertaken for profit or for a non-profit purpose. The USOC may obtain an injunction against use of this term without showing likelihood of confusion and without overcoming the defenses normally available in trademark infringement actions under the Lanham Act.
Interpreted in this fashion, the Amateur Act represents a sweeping exercise of sovereign power, implicating principles of individual liberty protected by our Constitution. By passing the Act, Congress extracted a word from the English language and gave it to a private party to use in connection with any commercial endeavor or public event. This raises serious first amendment concerns that the panel failed to address or acknowledge.
The word Olympic has a meaning unique within our language. It connotes open and intense competition among non-professional athletes, usually involving the best and most accomplished contestants. Thus, we have Special Olympics, Junior Olympics, Police Olympics, and Canine Olympics, normally involving competition among the best and finest within the denoted category. I have great difficulty with the idea that Congress can deny all of us that word, and the ideas it embodies, in connection with all public endeavors. As noted by Justice Harlan in Cohen v. California,
much linguistic expression serves a dual communicative function: it conveys not only ideas capable of relatively precise, detached explication, but otherwise inexpressible emotions as well. In fact, words are often chosen as much for their emotive as their cognitive force. We cannot sanction the view that the Constitution, while solicitous of the cognitive content of individual speech, has little or no regard for that emotive function which, practically speaking, may often be the more important element of the overall message sought to be communicated.
Id. at 26,
In organizing the Gay Olympic Games, the SFAA sought to " 'creat[e] a more realistic image of homosexual men and women in all societies' and to 'provid[e] more alternatives for homosexual men and women to move into the mainstreams of their respective societies.' " International Olympic Committee v. San Francisco Arts & Athletics,
The Supreme Court has been extremely reluctant to approve restrictions against the use of particular words. See Cohen v. California,
To say that the word Olympic is property begs the question. What appellants challenge is the power of Congress to privatize the word Olympic, rendering it unutterable by anyone else in connection with any product or public event, whether for profit or, as in this case, to promote a cause.
The rights conferred on the USOC by the Amateur Act are materially different from traditional intellectual property rights where a careful balance is struck between the interests of the property owner and those of the public. Trademarks,1 copyrights2 and patents3 are subject to a variety of statutory and common law defenses, and they reserve only those rights necessary to protect the owner's economic interests. Zacchini, upon which the panel relied, is instructive. The Court there was careful to limit the relief afforded petitioner (the human cannonball) to assuring that he "reap[s] the reward of his endeavors."
By and large, rights in intellectual property are limited to uses that have been invented, created or developed by the owner. They are not a wholesale prohibition against all public uses but provide limited protection for that which "is the product of [the owner's] own talents and energy, the end result of much time, effort, and expense." Zacchini,
However, when cut loose from their conceptual moorings, intellectual property rights can raise serious constitutional concerns. Here, the Act's ironclad prohibition against every commercial or theatrical use of the word Olympic (unrestrained by the need to show likelihood of confusion or to overcome Lanham Act defenses) stakes out an intellectual property fiefdom quite unlike anything we have seen in our law before.4 By giving the USOC exclusive possession of the word, Congress has diminished the rights of everyone else, withdrawing from the public domain a term used by many and useful to more. If Congress has the power to grant a crown monopoly in the word Olympic, one wonders how many other words or concepts can be similarly enclosed, and the extent to which our public discourse can thereby be impoverished. See Cohen v. California,
B. My first amendment concerns are heightened by the way the USOC allegedly exercises its stewardship over the word Olympic. According to the petition for rehearing "[t]he facts submitted below establish that USOC has openly permitted use of 'Olympic' both by groups that it directly supports, e.g. the Special Olympics, the Explorer Olympics and the Junior Olympics, and by groups that it has known to be using 'Olympic' and that it has elected not to sue, such as the 'International Police Olympics.' " Pet. Reh. 10.
Accepting SFAA's allegation, as we must, it seems that the USOC is using its control over the term Olympic to promote the very image of homosexuals that the SFAA seeks to combat: handicapped, juniors, police, Explorers, even dogs are allowed to carry the Olympic torch, but homosexuals are not. Troublesome as would be a total withdrawal of the term from public discourse, an exclusion that is invoked pursuant to a subjective assessment of the wholesomeness of the proposed speaker or propriety of the proposed message is more troublesome still. See Police Department of Chicago v. Mosley,
II.
A. Once it is concluded that the first amendment is implicated by giving USOC the word Olympic, the next inquiry must be whether doing so directly advances a substantial governmental interest. Central Hudson Gas & Electric Corp. v. Public Service Commission,
Because the case was dismissed short of trial, we can only speculate as to what governmental interest is advanced by giving USOC such sweeping rights in the word Olympic. As the panel noted, however, "[o]ther courts have remarked on the need to insure the market value of licenses for the use of Olympic symbols."
The fundamental purpose of [the Amateur] Act was to safeguard the USOC's ability to raise the financial resources that are a critical component of America's capacity to send world-class amateur athletes into international competition without the massive government subsidies enjoyed by competitors from other nations.
United States Olympic Committee v. Intelicense Corp.,
If this is the only interest supporting the USOC's monopoly, I seriously doubt whether it would justify even a minor restriction on free speech. In words that seem to address this very issue, Justice Marshall noted earlier this Term:
While the interference with appellant's speech is, concededly, very slight, the State's justification--the subsidization of another speaker chosen by the State--is insufficient to sustain even that minor burden. We have held that the State may use its own resources for subsidization, Regan v. Taxation with Representation of Washington,
Pacific Gas & Electric Co. v. Public Utilities Commission, --- U.S. ---,
B. Even if the government's interest in subsidizing the USOC were deemed sufficient to abridge some of appellants' first amendment rights, we would still have to determine whether the broad monopoly granted by the Amateur Act "is not more extensive than is necessary to serve that interest." Central Hudson Gas,
III.
While I hesitate to second-guess the panel's interpretation of the Amateur Act, I respectfully suggest that its conclusion that the USOC need not prove confusion or overcome Lanham Act defenses is not inevitable. If, as I suggest, the interpretation the panel adopts raises serious constitutional concerns, it may be appropriate to resort to a narrowing construction of the statute. See Regional Rail Reorganization Act Cases,
IV.
By raising these concerns I do not necessarily conclude that the Amateur Act is irreconcilably at odds with the first amendment. Indeed, on this barren record I find it difficult to reach any but the most tentative conclusions about this highly unusual statute and its effect upon our personal liberties. What I find most troubling, however, is the haste with which appellants are being ushered out of court. The panel appears to have overlooked that where first amendment defenses are raised "[j]udgment as to whether the facts justify the use of the drastic power of injunction necessarily turns on subtle and controversial considerations and upon a delicate assessment of the particular situation in light of legal standards which are inescapably imprecise." Carroll v. Princess Anne,
What appellants propose to do, after all, lies at the very heart of the first amendment: they wish to hold a public event to promote socio-political views some may find offensive. They claim that calling their event the Gay Olympic Games is essential to the message they wish to convey. A long and unbroken line of Supreme Court cases stands for the proposition that "[a]ny prior restraint on expression comes to [court] with a 'heavy presumption' against its constitutional validity." Organization for a Better Austin v. O'Keefe,
Moreover, "[a]n order issued in the area of First Amendment rights must be couched in the narrowest terms that will accomplish the pin-pointed objective permitted by constitutional mandate and the essential needs of the public order." Carroll,
* * *
In sum, I believe that the petition for rehearing raises very serious arguments that deserve consideration and resolution by the court en banc. The panel fails to acknowledge the difficult first amendment issues presented, regrettably bypassing what I consider to be clear and applicable guidance from the Supreme Court. The opinion will therefore prove a troublesome precedent, undermining not only the right to free speech, but also the laws protecting intellectual property, to the ultimate detriment of both.
While not every error by a panel can be addressed by the full court, the important and novel constitutional issues raised by this case, the panel's failure to adequately address them and the likely adverse effect the opinion will have on personal liberties, all strongly militate in favor of rehearing the case en banc. I therefore respectfully dissent from the court's refusal to do so.
Notes
The Honorable Albert Lee Stephens, Jr., Senior United States District Judge for the Central District of California, sitting by designation
Trademarks are recognized only upon a showing that the mark has been adopted and used in commerce. 15 U.S.C. Sec. 1051 (1982); Blue Bell, Inc. v. Farah Mfg. Co.,
Copyrights are of limited duration, U.S. Const., Art. 1, Sec. 8; 17 U.S.C. Sec. 302 (1982), and are subject to a number of defenses, most notably the defense of fair use. 17 U.S.C. Secs. 107-117 (1982). Copyright protection will not extend to the idea itself, Baker v. Selden,
Patents are granted only for subject matter that is novel, useful and nonobvious. 35 U.S.C. Secs. 101-103 (1982). They are limited in time. U.S. Const. Art. I, Sec. 8; 35 U.S.C. Sec. 154 (1982). They are also subject to a variety of legal and equitable defenses, including patent misuse, Sonobond Corp. v. Uthe Technology, Inc.,
An examination of business listings in metropolitan telephone directories gives some indication of the Amateur Act's sweep. In Los Angeles there are listings for over 140 businesses whose name starts with the word Olympic, many of them located on Olympic Boulevard. Pacific Bell, White Pages: Los Angeles 773-74 (1985). The Manhattan directory has about 60 listings. New York Telephone, NYNEX White Pages: Manhattan 1142 (1985). The directory for Olympia, Washington, has over 30 listings. Pacific Northwest Bell, White & Yellow Pages: Olympia, Lacey & Tumwater 111 (1985). Among the listings are such diverse businesses as the Olympic Bar B Que Restaurant; Olympic Donuts; the Olympic Married Matching Service; the Olympic Tae Kwon-Do Karate Studio; Olympic Trailer Movers; the Olympic Memorial Funeral Home; Olympic Unpainted Furniture; Olympic Wall Street Services; and the Olympic Headwear Novelty Company. These trade names, and what must be hundreds more across the country, presumably violate the Amateur Act as interpreted by the court
As the Court held in Southeastern Promotions, Ltd. v. Conrad,
Courts have been particularly vigilant in guarding the first amendment rights of groups espousing unpopular points of view. See, e.g., Carroll v. Princess Anne,
