Baco v. TMTV CORP.

436 F. Supp. 2d 311, 2006 U.S. Dist. LEXIS 45926, 2006 WL 1704567
CourtDistrict Court, D. Puerto Rico
DecidedMay 30, 2006
DocketCIV. 05-1641(JP)
StatusPublished

This text of 436 F. Supp. 2d 311 (Baco v. TMTV CORP.) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baco v. TMTV CORP., 436 F. Supp. 2d 311, 2006 U.S. Dist. LEXIS 45926, 2006 WL 1704567 (prd 2006).

Opinion

OPINION AND ORDER

PIERAS, Senior District Judge.

I. INTRODUCTION

The Court has before it the defendant’s motion to dismiss (No. 5), the plaintiffs’ opposition (No. 8), and the defendant’s reply (No. 13). The plaintiffs brought this action under federal copyright law seeking a declaratory judgment that they own the copyrights to certain television characters and also claim under Puerto Rico law that the defendant tortiously interfered with contracts with third parties. The defendant moves to dismiss the copyright claims on the ground that they are time barred, and to dismiss the claim of tortious interference with contracts for failure to state a claim. The Court DENIES the motion.

II. LEGAL STANDARD FOR A MOTION TO DISMISS

According to the Supreme Court, a “court may dismiss a Complaint only if it is clear that no relief could be granted under any set of facts that could be proved consistent with the allegations.” Swierkiew-icz v. Sorema N. A., 534 U.S. 506, 512, 122 S.Ct. 992, 995, 152 L.Ed.2d 1 (2002). Ac *313 cording to the First Circuit, a court must “treat all allegations in the Complaint as true and draw all reasonable inferences therefrom in favor of the plaintiff.” Rumford, Pharmacy, Inc. v. City of East Providence, 970 F.2d 996, 997 (1st Cir.1992). A complaint sufficiently raises a claim “even if it points to no legal theory or even if it points to the wrong legal theory as a basis for that claim, as long as relief is possible under any set of facts that could be established consistent with the allegations.” González-Pérez v. Hospital Interamericano De Medicina Avanzada, 355 F.3d 1, 5 (1st Cir.2004). Under Federal Rule of Civil Procedure 8(f), “[a]ll pleadings shall be so construed as to do substantial justice.”

III. FACTUAL ALLEGATIONS

The defendant, TMTV Corporation (“TMTV”) is in the business of producing television shows. From 1997 to 1999 TMTV produced and aired a two hour weekly program on WKAQ, Channel 2 (“WKAQ”) in Puerto Rico. This program included a sitcom segment called “20 Pisos de Historia” (“20 Pisos”). The plaintiffs in the instant case were actors on “20 Pisos.” In December of 1999 “20 Pisos” went off the air on WKAQ. In March of 2000 Telev-icentro de Puerto Rico, Inc., (WAPA-TV, Channel 4) (‘WAPA”) began airing “El Condominio,” on which the plaintiffs portrayed the same characters they portrayed on “20 Pisos.”

On March 15, 2000, TMTV filed a copyright infringement and declaration of ownership action in this District Court, case number 00-CV-1338 (RLA), against Emmanuel Logroño, Gilda Santini, and Mass Productions, Inc., a production company through which Logroño and Santini produced “El Condominio.” On November 24, 2004, Senior District Judge Raymond L. Acosta held on a motion for summary judgment that TMTV owned the copyright to “20 Pisos,” and that “El Condominio” was an unauthorized derivative work of “20 Pisos.” In his opinion granting summary judgment Senior District Judge Acosta stated in a footnote,

The fact that some characters which appeared in “20 Pisos de Historia” may have pre-existed in some degree of definition to the sitcom does not allow said characters, absent an agreement and authorization to such effect — not present in this case — to produce an unauthorized derivative work substantially similar to the copyrighted work of “20 Pisos de Historia”. Only the copyright holder has such exclusive right. Defendant Lo-groño conceded in his deposition that the program belonged to plaintiffs predecessors in interest.

On January 18, 2005, the plaintiffs other than Emmanuel Logroño, who was already a party, moved to intervene in the case before Senior District Judge Acosta. Because of Senior District Judge Acosta’s statements in his opinion granting summary judgment for WKAQ the plaintiffs feared their property interests in the characters they portrayed on “20 Pisos” and “El Condominio” would be effected by the outcome of the case. On February 4, 2005, Senior District Judge Acosta denied the motion to intervene on the grounds that the motion was untimely and that the issue in the case before him was not ownership of the characters, but ownership of “20 Pisos” itself. On June 15, 2005, the plaintiffs filed the instant case for declaratory judgment that they are the sole owners of the copyrights to characters they played on “20 Pisos,” and on “El Condominio.” They allege they created the characters between 1984 and 2002, and obtained copyright registration certificates for them as unpublished literary works.

*314 The plaintiffs also claim that TMTV tor-tiously interfered with their exploitation of their copyrights and with their business contracts in violation of Puerto Rico law. They allege that TMTV or its legal representatives contacted third parties that hired or expressed an interest in hiring the plaintiffs’ characters for promotions during the Christmas season and threatened the third parties with legal prosecution if they did not pay a “license fee” to TMTV. The plaintiffs were forced to make the promotional appearances as civilians, rather than as their characters. TMTV also prevented plaintiff René Monclova from exploiting his character to serve as the spokesman for certain products.

IV. ANALYSIS

The defendant argues that the plaintiffs’ declaration of ownership claim should be dismissed on the ground that it is barred by the Copyright Act’s three year statute of limitations, and argues that the plaintiffs’ claims accrued when the defendant filed its lawsuit against Logroño, Santini, and Mass Productions, Inc., in 2000. Civil actions under the Copyright Act of 1976 must be filed within three years of when they accrue. 17 U.S.C. § 507(b). Unlike claims for copyright infringement, which accrue when the plaintiff has knowledge of the infringement or is chargeable with such knowledge, Hotaling v. Church of Jesus Christ of Latter-Day Saints, 118 F.3d 199, 202 (4th Cir.1997), claims for declaration of ownership under the Copyright Act accrue when the plaintiff learns, or should as a reasonable person have learned, that the defendant repudiated the plaintiffs ownership of the copyright. See Gaiman v. McFarlane, 360 F.3d 644, 653 (7th Cir.2004). The Ninth Circuit requires that the repudiation be “plain and express,” Aalmuhammed v. Lee, 202 F.3d 1227, 1231 (9th Cir.1999); Zuill v. Shanahan,

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Bluebook (online)
436 F. Supp. 2d 311, 2006 U.S. Dist. LEXIS 45926, 2006 WL 1704567, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baco-v-tmtv-corp-prd-2006.