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The rule is a product can be used within a movie without permission as long as the product is being used as was intended by the manufacturers without negatively defaming the product or manufacturer.
Does the FCC have rules regarding product placement? Are program producers and broadcasters required to disclose placement deals to viewers? The simple answer is yes. The FCC considers product placement to be embedded advertising that is subject to the FCC's sponsorship identification rule.
Hollywood has increasingly turned to brand integration as a way to recover revenue lost to piracy and technologies that let users zap commercials. Naturally, the rise of product placement means more lawsuits when things don't go as planned.
Get permission for product placing showing brand names. When using another party's brand in your production, the best and safest course of action is to get permission from the brand owner. Alternatively, blur or mask the branded product- or remove it- to avoid venturing into dangerous legal waters.
Product placement is allowed in films (including dramas and documentaries), TV series (including soaps), entertainment shows and sports programmes. Cigarettes and other tobacco products, along with medicines that are available only on prescription, can't be product placed in any programmes.