Factors Etc., Inc. v. Creative Card Co.

444 F. Supp. 279, 3 Media L. Rep. (BNA) 1290, 1977 U.S. Dist. LEXIS 13524
CourtDistrict Court, S.D. New York
DecidedOctober 12, 1977
Docket77 Civ. 4400 (CHT)
StatusPublished
Cited by37 cases

This text of 444 F. Supp. 279 (Factors Etc., Inc. v. Creative Card Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Factors Etc., Inc. v. Creative Card Co., 444 F. Supp. 279, 3 Media L. Rep. (BNA) 1290, 1977 U.S. Dist. LEXIS 13524 (S.D.N.Y. 1977).

Opinion

OPINION

TENNEY, District Judge.

Plaintiffs have moved this Court for a preliminary injunction pursuant to Rule 65 of the Federal Rules of Civil Procedure (“Rules”) to restrain defendant Creative Card Company from the manufacture, distribution and sale of any poster or other commercially exploitive souvenir merchandise bearing the likeness of the late entertainer Elvis Presley. Plaintiffs claim possession of an exclusive right to that activity, based on a “right of publicity” assigned by Elvis Presley in life. Defendant Creative Card Company, an Illinois corporation, disputes the existence and assignment of this right, and has also moved for dismissal under Rule 12(b) on the grounds of lack of personal jurisdiction and/or improper venue in the Southern District of New York. The Court has determined that it has jurisdiction over defendant Creative Card Company and that venue is properly laid here. Accordingly, the motion to dismiss under Rule 12(b) is denied. In addition, by the tests for preliminary relief articulated in this circuit, I conclude that plaintiffs have made “a clear showing of . probable success on the merits and possible irreparable injury.” Sonesta International Hotels Corp. v. Wellington Associates, 483 F.2d 247, 250 (2d Cir. 1973) (emphasis in the original). Therefore, plaintiffs’ motion under Rule 65 is granted. The reasons for the Court’s conclusions are set forth below.

THE FACTS

On August 16, 1977, Elvis Presley, without doubt a world famous celebrity-entertainer, died at the age of forty-two. During life his professional career and the commercial exploitation of his person were managed exclusively by “Colonel” Tom Parker, 1 as demonstrated by the deposition of Col. Parker begun on September 30, 1977 and continued on October 1, 1977, and the documents appended thereto. On March 26, 1956, Presley and Parker entered into a written management contract which, al *281 though it does not specifically allude to souvenir merchandise, authorizes Parker to act exclusively for Presley “in any and all fields of public and private entertainment . embracing any and all branches thereof now known or hereafter coming into existence.” Plaintiffs’ Supplemental Memorandum, Exhibit C. However, that items of merchandise were clearly contemplated by the parties becomes apparent in later agreements including, inter alia, one concluded a few months later among Parker, Presley and a Mr. Saperstein of Special Projects, Inc., a merchandising company. Id., Exhibit D. The Special Projects organization was made “exclusive agent” for a period of time to license other firms “in connection with the sale, marketing and exploitation of consumer items.” Id.

All manner of merchandise was thereafter covered by numerous licensing agreements with sub-licensees. E. g., id., Exhibits E, F & G. Although these and the Special Projects agreement, supra, refer to the late 1950’s, an early period in the Presley career, a subsequent merchandising agreement between Presley and Parker, the latter doing business as “All Star Shows,” dated May 25,1963, id., Exhibit H, refers to the production of and distribution of profits from “Merchandising — Special Souvenir Folios and Pictures.” Later signed agreements between Parker and Presley specifically allude to “merchandising agreement^].” The last of these is dated January 22, 1976. Id., Exhibits I & J.

Plaintiff Boxcar Enterprises, Inc. (“Boxcar”) entered into the Presley-Parker relationship as a corporation formed in January 1974. The Court does not have before it the certificate of incorporation, but Col. Parker has testified that he owned 56% of the shares and that Presley and one Tom Diskin, President of Boxcar, each owned 22%. Parker Depos. at 49, lines 21-26. There is, from this point on, some confusion as to which entity — Boxcar or Col. Parker doing business as All Star — handled merchandising, but there are numerous exhibits of checks issued from Boxcar to Elvis Presley bearing such notations as “For Royalty Earnings From Sales of Elvis Presley Souvenir Material On Tour June 25th through July 5th, 1976 as per contractual agreement.” Plaintiffs’ Supp. Mem. Exhibit L. (Further checks and royalty statements from Boxcar to the Elvis Presley Estate have also been submitted. Id. Exhibit L.) On August 18, 1977, two days after the entertainer’s death, plaintiff Boxcar entered into an agreement with plaintiff Factors Etc., Inc. (“Factors”) which purported to afford the latter an exclusive license to use the Presley likeness in connection with all souvenir merchandise. Complaint, Exhibit A. On August 24, 1977, Vernon Presley, father of the deceased and executor of his estate, agreed to a royalty arrangement with Boxcar as “Merchandising Representatives for the Elvis Presley Estate.” Plaintiffs’ Supp. Mem. Exhibit N. Vernon Presley also wrote to Col. Parker on August 23, 1977 asking Col. Parker to “carry on according to the same terms and conditions as stated in the contractual agreement you had with Elvis dated January 22, 1976.” Id., Exhibit M.

DEFENDANT’S POSITION

Defendant argues along several lines, the most germane of which are: (1) that plaintiff Boxcar never acquired the exclusive right to merchandise the Presley name and image; (2) that even if Boxcar did have such a right in Presley’s lifetime, that right died with the entertainer; (3) that this Court has no jurisdiction of defendant and/or venue is improperly laid here. Although the Court would normally dispose of the procedural questions of jurisdiction and venue before moving to the substantive issues, in this particular case the latter must be considered first because the procedural issues depend on a clear definition of the applicable substantive rights.

THE MERITS

The Presley/Parker/Boxcar/Factors Relationship

It is hornbook law that where there is ambiguity in a contract the intent of the parties may be ascertained by refer *282 ence to their subsequent course of conduct. Gordon v. Vincent Youmans, Inc., 358 F.2d 261 (2d Cir. 1965); Portsmouth Baseball Corp. v. Frick, 278 F.2d 395 (2d Cir.), cert. denied, 364 U.S. 831, 81 S.Ct. 71, 5 L.Ed.2d 58 (1960); 1 Corbin, Contracts § 101 (1964). For more than twenty years, Elvis Presley and Col. Parker had a working relationship where the division of labor was apparent: one performed, the other promoted. If some of the documents memorializing this activity are less artful than those which some professional counsel can draft, they are no less valid. Defendant points to inconsistencies in the statements of Col.

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Bluebook (online)
444 F. Supp. 279, 3 Media L. Rep. (BNA) 1290, 1977 U.S. Dist. LEXIS 13524, Counsel Stack Legal Research, https://law.counselstack.com/opinion/factors-etc-inc-v-creative-card-co-nysd-1977.