Goodis v. United Artists Television, Inc.

425 F.2d 397
Court of Appeals for the Second Circuit·Decided March 9, 1970·No. No. 33, Docket 32717·Published·Cited by 44 cases

Opinions

LUMBARD, Chief Judge:

This appeal raises the important question whether a magazine publisher who acquires only the right to serialize a novel before it is published in book form has such an interest in the work that notice of copyright in the publisher’s name will protect the copyright of the author of the novel. It also requires us to review the construction of a contract granting motion picture rights which defendants raise as a defense to this infringement action.

We all agree that the district court erred in concluding that copyright was not obtained by the publisher and that Goodis’ work was thus thrown into the public domain without copyright protection. Moreover, since a majority of the panel, Judges Waterman and Kaufman, are of the view that interpretation of the [399]*399contract involves factual determinations which should not have been made on a motion for summary judgment, we reverse the judgment of the district court and remand for further proceedings on those questions.

The plaintiffs are the executors of David Goodis, author of the novel “Dark Passage,” a work which has proved both popular and adaptable to presentation in many of the entertainment media. When Goodis completed the novel in 1945, he made arrangements for the book to be printed in April, 1946. Later, on December 20, 1945, Goodis sold the exclusive motion picture rights in the novel to Warner Brothers for $25,000. The contract was Warner Brothers’ standard form for acquiring movie rights, but, as we state below, it contained additional specially negotiated clauses to cover radio and television broadcast rights.

Before the book was published, Goodis also received $12,000 from Curtis Publishing Co. for the right to serialize the novel in “The Saturday Evening Post,” one of Curtis’ publications. The book publisher agreed to postpone distribution of the book until October, 1946, and “Dark Passage” was first published in eight installments of “The Saturday Evening Post” running from July 20 to September 7, 1946. Each issue contained a single copyright notice in the magazine’s name as provided by the Copyright Act.1 There was no notice in Goodis’ own name.

In due course, Warner Brothers produced a motion picture, also titled “Dark Passage,” based on the novel. After the film was exhibited in theaters and shown on television, Warner Brothers in 1956 assigned its contract rights to defendant United Artists. United Artists produced a television film series, “The Fugitive,” which was broadcast in weekly installments by defendant American Broadcasting Co. The series enjoyed considerable popularity on television, and early in 1965 Goodis instituted this action claiming $500,000 damages for copyright infringement. The defendants answered that the television series was covered by the contract which had been assigned to them by Warner Brothers.

In 1966, the defendants took Goodis’ deposition and learned of his serialization agreement with Curtis. At this point, they conceived the theory that the work had fallen into the public domain because Curtis, a “mere licensee,” had taken out copyright in its own name only. By stipulation the defendants amended their answer to include this affirmative defense.

The district court granted defendants’ motion for summary judgment and dismissed the complaint on the grounds (1) that “Dark Passage” had fallen into the public domain, and (2) that the contract between Goodis and Warner Brothers clearly conveyed the right to produce a film series like “The Fugitive.”

I. THE COPYRIGHT

We unanimously conclude that where a magazine has purchased the right of first publication under circumstances which show that the author has no intention to donate his work to the public, copyright notice in the magazine’s name is sufficient to obtain a valid copyright on behalf of the beneficial owner, the author or proprietor.

In the district court, defendants argued that the single copyright notice in the magazine’s name was not sufficient to preserve Goodis’ rights in “Dark Passage”; thus, the novel, not being protected upon first publication, was thrown into the public domain as it appeared, installment by installment, in the “Saturday Evening Post.” While it is clear that a periodical under some circumstances may obtain copyright for itself on the contents of an issue by a single copyright notice containing its own name, 17 U.S.C. § 3; Kaplan v. Fox Film Corp., 19 F.Supp. 780 (S.D.N.Y.1937), defendants urged that Curtis could only obtain copyright on behalf of the bene[400]*400ficial owner for those installments of which it was a “proprietor” or “assignee,” rather than a mere “licensee.” 17 U.S.C. §§ 3, 9; Morse v. Fields, 127 F.Supp. 63 (S.D.N.Y.1954). Relying on Morse v. Fields and cases with similar language, the district court concluded as a matter of law that Curtis could not have been an assignee because it had been granted only a license for a onetime serialization of the novel.

Such a determination rests on the doctrine of “indivisibility of copyright,” which rejects partial assignments of copyrights and requires a proprietor or assignee of a copyright to hold nothing less than all the rights in a copyrighted work. It is true that Curtis did not own all the rights in “Dark Passage” at the time it was first published; in fact, at that time Goodis and Warner Brothers had already contracted for the exclusive motion picture rights. .

We are convinced, however, that the doctrine of indivisibility of copyright is a judge-made rule which relates primarily to the requisite interest needed to bring an infringement action. See generally, H. Warner, Radio and Television Rights § 53 (1953). The most frequently cited policy for applying the indivisibility rule is to avoid multiple infringement actions, each brought by the holder of a particular right in a literary work without joining as co-plaintiff the author or proprietor of the copyrighted work. New Fiction Pub. Co. v. Star Co., 220 F. 994 (S.D.N.Y.1915). Even after the Copyright Act underwent substantial revision and liberalization in 1909, the courts in this circuit indicated support for the doctrine. See Goldwyn Pictures Corp. v. Howell Sales Co., 282 F. 9 (2d Cir. 1922); New Fiction Pub. Co. v. Star Co., supra; but cf. Photo-Drama Motion Picture Co., Inc. v. Social Uplift Film Corp., 213 F. 374 (S.D.N.Y.1914), aff’d, 220 F. 448 (2d Cir. 1915). The doctrine was seriously questioned in subsequent years, Houghton Mifflin Co. v. Stackpole Sons, Inc., 104 F.2d 306, 311-312 (2d Cir. 1939), but has not been overruled.

But, regardless of the vitality of the indivisibility theory as it applies to the question of standing to sue, we do not think that it is determinative as to the requisite interest of a party who may act to obtain copyright. In the cases relied upon by the district court, it was found either that a complete assignment had been made, Mail & Express Co. v. Life Pub. Co., 192 F. 899 (2d Cir. 1912); Morse v. Fields, supra, or that the plaintiff claiming infringement was not the author or proprietor of the work, Egner v. E. C. Schirmer Music Co., 139 F.2d 398 (1st Cir.), cert.

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Goodis v. United Artists Television, Inc., 425 F.2d 397 (2d Cir. 1970).

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