You might want to look through other sites, too.
First my understanding and then some links.
If you plan on making money ever with a photo then get a model release. If you're just taking photos for your personal use then you're in more of a gray area that can be argued in court. Sidenote: of course in the US we just saw how useless a model release was when an actress, Cameron Diaz, sued to have a photographer stop from selling photos of her nude for which she had already signed a model release. I guess having high-priced lawyers overrules her signature in that case. There are several things to consider: are you on public property or private (and you'd be surprised sometimes that you're on private)? Does the subject have an expectation of privacy (is he/she is plain view of the public or going about public activity)? Will the photo be used for commercial or editorial purposes?
One case of note in America is Arrington v. New York Times Co., 434 N.E.2d 1319 (N.Y. 1982)[Cert. denied by the U.S. Supreme Court at 459 U.S. 1146 (1983)] which went to the US Supreme Court but they refused to hear it; thus letting the New York Supreme Court (or perhaps a district court's) ruling stand. My understanding of this case is that a man of Afro-American descent walked down a public street while wearing a business suit. When a photo of him appeared under a caption referring to how one race was beginning to invest itself into the "Middle Class" he sued the publisher and lost. For more you can see a post on Photo.net:
link to article.
It bears repeating that nothing makes you lawsuit-proof. People in America can sue you for anything and whether their suit is specious or not, you may have to pay out of your pocket until you can counter-sue for your expenses. Regardless, you will be out something. The real issue is will they sue. It strikes me that after searching several sites like FredMiranda.com, Photo.Net and here (DPReview.com was down for rebuilding their databases) everyone seems to ask this question and almost no one has ever had to deal with a suit. Of course, if you're the first case you've ever heard about it doesn't matter 'cause you're gonna have to worry about paying for the lawyer fees, etc. If you are respectful of others then I would say you have a decent chance of taking almost any photo you want in public for your own use. Publishing it and/or selling it might be a different issue. Law in America caters to specialist and depending on what your plans are for an image you might want an Intellectual Property Rights lawyer (if you're publishing it on the web) or to prove that you own a photo you might need a Copyright or Patent lawyer. If you and a model (anyone who signs a model release) have a disagreement about what you expected then you need someone who specializes in contractual laws while if a model (or any subject) thinks that you brought ridicule to them you might want someone more versed in libel or slander (as opposed to a corporate law or personal injury). Some states recognize specialties, mine and the states I'm around don't but that doesn't mean that any good ol' guy or girl is the same as any other. They all like to specialize if they can afford it.
I have model releases for both adults and minors and property releases. I had them printed on carbonless copy paper and they state distinctly that I own the copyright to the images I make and I have full authority to manipulate the images in any way that I want without bringing obvious public humiliation to the subject or the property owner. Now thats well and good but frankly alot is open to interpretation of a jury and I have no doubt that even a person who stands with their canary yellow copy inhand can sue me and might even win if they can convince the jury that I acted in bad faith or deceptively.
Bottom line for me is take the shot. Take it and if it inspires no one but you, you've gotten something for your time. If the subject doesn't like it, try to work with him/her and respect the legalities of their privacy and their private property and if a law enforcement official tells you to desist then I'd seriously consider stopping. Unless you're going out with the intent to "jack up" someone's emotions for the purpose of getting a particular shot then I think you should be able to work with most people and not offend them. I happen to refuse to delete any image I take until I have it on my computer and burned to a CD so even if someone doesn't like what I shot, I'm keeping it unless they can prove I was in violation of a law such as I was standing on their private property when I shot it (like in a mall or on a farm).
That's just some thoughts from me. Sorry I couldn't provide more concrete info on the laws but maybe that'll get you started.
Kev
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