Herwitz v. National Broadcasting Company

210 F. Supp. 231, 135 U.S.P.Q. (BNA) 96, 1962 U.S. Dist. LEXIS 5590
CourtDistrict Court, S.D. New York
DecidedMay 2, 1962
StatusPublished
Cited by2 cases

This text of 210 F. Supp. 231 (Herwitz v. National Broadcasting Company) 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
Herwitz v. National Broadcasting Company, 210 F. Supp. 231, 135 U.S.P.Q. (BNA) 96, 1962 U.S. Dist. LEXIS 5590 (S.D.N.Y. 1962).

Opinion

LEONARD P. MOORE, Circuit Judge (sitting by designation).

This is an action for infringement of a common law copyright and unfair competition brought by Benjamin Herwitz, a citizen of the State of Massachusetts. The defendants are seven corporations and Jan Murray, all of whom were associated in some way with the television program “Treasure Hunt”. They are all citizens of states other than Massachusetts.

Plaintiff had had no experience or connection with the entertainment industry when during the summer of 1945 he formulated the idea of a weekly radio program which he entitled “This is Your Birthday Party”. It was to be an audience participation show, namely, the persons to be interviewed would be selected from the studio audience by lot. Each interview would be climaxed by a “gift auction”. The participant would select a birthday present from a pile of packages. The master of ceremonies (emcee) would bid a certain amount of cash for the unknown contents of the packages which might be anything from a lollipop to a diamond ring, and the participant could take either the box or the cash. The element of chance presented thereby was the basic element of the “birthday party” program.

Plaintiff then communicated with Aaron Steiner, a New York artist’s repre *233 sentative and producer. At a conference, it was agreed that Steiner would have the exclusive right to handle plaintiff’s radio program idea and that he could use his best judgment in developing it for sale. Steiner was to package 1 the program and to talk to various people in agencies or networks in order to present the idea orally. Several parties were interested and requested written outlines. In these written presentations Steiner added a quiz element to the interview with the participants. One agency entered into an option agreement with regard to the program in February of 1946, but the option was allowed to lapse.

In the spring of 1948 plaintiff was notified by Steiner that the program idea had been licensed on a royalty basis to The Biow Company, an advertising agency. The agency had preferred this arrangement instead of having the program packaged by Steiner. The agreement with Biow culminated in the radio program, “Everybody Wins”, which was broadcast over the CBS network on Friday evenings from 9:00 to 9:30 for a period of 26 weeks beginning in April of 1948. During this time, Steiner received $150 per week royalty, which he divided with the plaintiff. The basic format of the program may be summarized briefly. Each contestant was asked four or five questions all relating to a specific subject. The questions were selected from those submitted by home listeners. The person submitting the questions received a cash prize for questions answered incorrectly by contestants. Contestants who answered all the questions correctly were entitled to pick a box from a table of wrapped packages. The emcee then made a cash bid for the unknown contents of the box, and the contestant was given the choice of the contents or the cash. This element of chance was, of course, the high point of the program.

After Steiner signed the original contract with the Biow agency, the agency assigned an employee, Bruce Dodge, to work with him as producer. Dodge staged four or five “run throughs” in front of a studio audience, and when the program was in acceptable form it went on the air, sponsored by Philip Morris. Dodge was the agency representative on the program; he obtained the prizes and directed the commercials. Steiner worked with the Biow personnel in developing the program and attended preliminary rehearsals. He maintained his interest in the program after it went on the air and attended the rehearsals of all shows emanating from New York City.

In October, 1948, Biow notified Steiner that for the present they had no further plans to make use of the program idea, thus terminating royalty payments under the ten-year exclusive contract. Shortly thereafter Steiner obtained from Biow an agreement allowing him to license the idea to others, although Biow retained the right to resume using the idea at any time the idea was not licensed to others. However, Steiner’s attempts to sell the program to other advertising-agencies and networks were unsuccessful. In 1949 the former emcee of “Everybody Wins” was interested in trying to do something with the format of the program, and he was referred to plaintiff. An agreement was reached, and the idea of “Everybody Wins” was given a one-night showing on television under another name but the program was not sold.

Meanwhile, Steiner also took some steps to develop the plaintiff’s idea for commercial television which was just then developing. Nothing came of his efforts, however, until 1955. Steiner had maintained relations with Biow and had sent them an outline of a television program using the idea. They called him for a conference, which resulted in his grafting them an option on September 2,1955. Before executing the option, Steiner informed plaintiff of the renewed interest, and they entered into a new contract *234 authorizing Steiner to license the “auction gimmick” for use on radio or television. Biow’s vice president in charge of television informed Steiner that he thought three of the agency’s clients were possible sponsors and that Biow would be interested in having Steiner package the program. A television presentation was prepared but before anything more was done about selling the program, the Biow agency went out of business.

The vice president who had worked with Steiner left Biow in February or March, 1956. He informed Steiner that he was going to open up his own production office, and that he was interested in packaging the program as Steiner’s partner. Steiner agreed but no further effort was made to develop the program, “Everybody Wins”. The program “Treasure Hunt” appeared on the ABC network in September, 1956, and in January, 1957, Steiner received a letter from his partner stating that in view of the fact that “Treasure Hunt” was using the same program idea, they might as well forget trying to package “Everybody Wins”.

“Treasure Hunt” was packaged and produced by defendant Jantone Enterprises, Inc., of which defendant Jan Murray was president. Murray had known Dodge for several years when they formed an informal partnership in the summer of 1953 for the purpose of creating television programs. Dodge, who had produced the radio program “Everybody Wins” was now employed by another advertising agency and was assigned to the program “Dollar a Second”, which starred Murray. The two men often discussed ideas in-between rehearsal and air time. The program “Treasure Hunt” evolved out of this partnership. According to the testimony of defendant Murray, the only idea that Dodge contributed to the format Murray developed was a grab bag suggestion with “different packages or boxes or what not on the stage and the contestant picks one, and in each one would be various types of prizes.” Murray stated that this idea eventually inspired him to think of using treasure chests, and that he got the idea of offering the contestant a choice between the unknown contents of the chest and a cash bid from another idea used on “Dollar a Second”. Just before “Treasure Hunt” was sold, Murray informed Dodge of the pending sale and bought out Dodge’s interest for $10,000.

The basic format of “Treasure Hunt” was very similar to that of “Everybody Wins”.

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210 F. Supp. 231, 135 U.S.P.Q. (BNA) 96, 1962 U.S. Dist. LEXIS 5590, Counsel Stack Legal Research, https://law.counselstack.com/opinion/herwitz-v-national-broadcasting-company-nysd-1962.