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   FIRST AMENDMENT-MEDIA: Mayor, Publisher in Maryland Declare Friendship
                            The Associated Press
                           Published: Jul 9, 2001

   FREDERICK, Md. (AP) - Mayor James S. Grimes and the city's daily
   newspaper publisher, locked in a legal battle over public access to
   police records, publicly declared their friendship July 2 but said the
   litigation will continue.

   In their announcement on the steps of City Hall, Grimes and Frederick
   News-Post Publisher George E. Randall said it was in the public's best
   interest to repair their fractured bond. Randall, who took over the
   family owned newspaper in March, said Frederick mayors and News-Post
   publishers have been friends for four generations.

   "The mayor and I stand before you today to show the Frederick community
   we are working to solve our differences for the good of the community
   and our own personal friendship," Randall told a crowd of about 60
   journalists, city workers, lawyers and curious residents.

   Their relationship was strained by a dispute over documents that have
   become known as the "black book," the business records of an escort
   service whose clients reportedly included an alderman and other
   prominent public figures.

   The News-Post and The Associated Press have asked under Maryland's
   Public Information Act for copies of the documents, which Frederick
   police seized in a raid. Grimes has refused. The issue is before the
   Frederick County Circuit Court.

   Grimes criticized the newspaper last month, citing its coverage of the
   black book scandal as his reason for deciding not to seek re-election
   this fall.

   His public reconciliation with Randall prompted some observers to
   speculate Grimes will run for a third, four-year term after all. +++++
   ^Court reverses $3 million award to actor Dustin Hoffman

   SAN FRANCISCO (AP) - A federal appeals court has reversed a $3 million
   award to Dustin Hoffman levied against Los Angeles Magazine, ruling
   that a computer-altered image of the actor was protected speech.

   The 9th U.S. Circuit Court of Appeals said July 6 that the image,
   published in 1997, did not unlawfully use Hoffman's name and likeness.
   The panel said the photo was not an "exploitative commercial" use as
   the actor claimed and a federal judge ruled two years ago.

   The altered image showed Hoffman in an evening gown and heels without
   his permission. The caption with the photo read: "Dustin Hoffman isn't
   a drag in a butter-colored silk gown by Richard Tyler and Ralph Lauren
   heels."

   The appeals court noted that it is unlawful to use a celebrity's
   identity "entirely and directly for the purpose of selling a product."
   But the court said the illustration, which listed the cost of the
   clothes and where they could be purchased, wasn't necessarily an
   advertisement.

   The court said that the photo, which was displayed with other captions
   and altered images of different actors, was editorial speech protected
   under the First Amendment.

   "Viewed in context, the article as a whole was a combination of fashion
   photography, humor and visual and verbal editorial comment on classic
   films and famous actors," Judge Robert Boochever wrote.

   During a four-day trial in Los Angeles federal court two years ago,
   Hoffman testified that he was turned into an unpaid fashion model.

   "If I were to be asked to be a model selling clothes, it would be worth
   millions of dollars," Hoffman testified.

   The magazine, published by Emmis Communications Inc., had repeatedly
   argued that it was protected by the First Amendment, and the
   computerized picture portrayed Hoffman's character in the 1982
   cross-dressing comedy "Tootsie" rather than the actor himself.

   The computer-generated photo layout in the March 1997 issue of Los
   Angeles Magazine was titled "Grand Illusions" and it featured classic
   movie stills with actors in the latest fashions. +++++

   MORE

   AP-ES-07-09-01 1751EDT

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