Jackson v. MPI Home Video

694 F. Supp. 483, 8 U.S.P.Q. 2d (BNA) 1572, 15 Media L. Rep. (BNA) 2065, 1988 U.S. Dist. LEXIS 9219, 1988 WL 90566
CourtDistrict Court, N.D. Illinois
DecidedAugust 16, 1988
Docket88 C 6476
StatusPublished
Cited by8 cases

This text of 694 F. Supp. 483 (Jackson v. MPI Home Video) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jackson v. MPI Home Video, 694 F. Supp. 483, 8 U.S.P.Q. 2d (BNA) 1572, 15 Media L. Rep. (BNA) 2065, 1988 U.S. Dist. LEXIS 9219, 1988 WL 90566 (N.D. Ill. 1988).

Opinion

MEMORANDUM OPINION AND ORDER

ZAGEL, District Judge.

I

Findings of Fact

Stipulated Facts 1

Plaintiff Jesse L. Jackson (“Jackson”) is a resident of Chicago, Illinois, and Defendant Maljack Productions, Inc. (“Maljack”) is an Illinois corporation also doing business as MPI Home Video with its principal place of business in Oak Forest, Illinois.

The Democratic National Committee believes that Jackson is a major spokesman for the party. He delivered an address on July 19, 1988 at the 1988 Democratic National Convention, held in Atlanta, Georgia, on July 18-21, 1988. He wrote the speech himself in his hotel room on July 19, the day of its delivery.

*485 The address was carried live by four television networks, A.B.C., N.B.C., C.B.S. and C.N.N., as part of their scheduled prime time coverage of the Democratic National Convention. Over 2,000 news organizations attended the convention. Copies of the address (Exhibit 1 without Jackson’s handwritten additions) were provided to the press at the convention prior to its delivery on July 19, 1988. Between 100 and 150 copies of the address which were distributed to the press and the Democratic National Committee did not contain a copyright notification but did contain the following statement: “NOT FOR PUBLIC USE UNTIL DELIVERED.”

On July 25, 1988, Maljack purchased from Sherman Grinberg Film Libraries, Inc., New York, New York, a license to use the A.B.C. news archive tape of Jackson’s convention speech. Maljack paid $6,750.00 for the license. Shortly thereafter defendants began marketing a tape for home video use containing the complete A.B.C. news coverage of the convention speech given by Jackson.

The packaging of defendants’ videotape displays among other items (1) a photograph of Jackson and his name, (2) two quotations from the speech, (3) a description of the tape as containing the “entire stirring Democratic National Convention speech, uncut and unedited” and (4) the name of MPI Home Video.

During the period from July 25-27, 1988 Waleed Ali, the President of Maljack, was interviewed on television news programs in Chicago. As part of the news story, the programs showed MPI Tape package and also showed excerpts of the plaintiff’s convention speech.

The Democratic National Committee received a copy of Jackson’s speech from Jackson’s campaign headquarters which copy lacked a copyright notice. The Democratic National Committee received copies of speeches given by other speakers at the convention. Not a single copy received from any speaker bore a copyright notice. The Democratic National Committee has received numerous requests from political groups and news media around the country for video tape copies of Jackson’s speech. Copies of those speeches have been distributed without copyright notice. So too Democratic National Committee has distributed copies of the speech received from Jackson’s campaign headquarters.

The Democratic National Committee received $9.22 million from the federal government for the convention.

An application for copyright in the speech was filed with the Register of Copyrights on July 28, 1988.

Further Findings of Fact

Maljack’s Ali heard Jackson’s speech as it was being broadcast and, before it was over, formed an opinion that it would sell. He caused a license to be purchased from Grinberg Film Libraries which sent a master copy of the A.B.C. coverage of the Jackson speech and secured a photo of Jackson from Wide World Photos to be used on the videotape package or sleeve. Commercials and other extraneous materials were edited from the A.B.C. master, and packaging artwork was prepared. About eight thousand tapes and sleeves were prepared. Prior to the act of this Court restraining distribution, about 7,100 units (tapes in sleeves) were shipped and about 1,000 remain with Maljack. Ali believed he could ship at least 25,000 units and, at most, 50,000 units. The list price of a unit is $14.95, Maljack sells it to its wholesalers and others for about $7.50. Maljack’s profit is about $3.00 a unit. Maljack publicized release of the tape with announcements to general newspapers and the trade press.

Maljack had prior dealings with Grinberg Film libraries because it distributes some A.B.C. video cassettes and other material secured from the library. Indeed, Maljack sought a lower price for the Jackson speech since in a previous transaction Maljack paid a large fee for material that had poor sales. Maljack’s catalogue is wide ranging including feature films, concert films, film classics, television series, and children’s features. There are cassettes explaining public issues. These include works on political figures, the Vietnam con *486 flict, World War II, the various branches of the United States armed forces, the 1960’s, the exploration of space, and a series of one-hour presentations of the speeches of King, Roosevelt, Churchill, Eisenhower and Kennedy. Ali credibly testified that he had distributed at least one film because he believed it contained an important message on poverty in America though he expected little or no profit. The catalogue also lists films whose titles suggest a more esoteric appeal.

The license contract received from Grin-berg contained in capital letters the legend:

LICENSED FOR:
VCS .......... HOME VIDEO CASSETTES
SRC ROLL KEY SCENE NO. NUMBERS DESCRIPTION
01 ABC JESSE JACKSON CONVENTION SPEECH

In smaller letters near the bottom of the contract it was written: “The film footage licensed hereunder may be used only for the purpose specified ... [T]he Licensor warrants nothing except its title to the footage licensed and that the licensee assumes full responsibility for any use which it may make of such footage.”

The Wide World Photos, Inc. sales form states in large letters:

PHOTOS: JESSE JACKSON & JFK FOR USE ON HOME VIDEO/JACKET FOR RETAIL

Toward the bottom of the form, in small letters, it is written of the picture sold:

“It may not be used in such a manner as to violate the rights of any person, firm or corporation. It may not be used for advertising or purposes of trade unless written consent of each living person depicted ... shall be obtained ...”

The intended meaning of the Grinberg contract is subject to dispute. A.B.C. licenses Grinberg to license others. A.B.C. may withhold whatever it wishes, but unless it specifically restricts use, Grinberg may license whatever A.B.C. gives them. The written agreement between them provides that Grinberg “shall have the right ... to make duplicates of A.B.C. film/cassettes and license said duplicates to third parties for stock footage purposes.” In a deposition taken after the filing of this lawsuit and after discussions about the issue with an A.B.C. lawyer, Chertok, who runs Grinberg, said that he had never told Maljack that there were any limitations on the use of the tape. Chertok then testified “All we had done was license a physical copy of some A.B.C. news coverage to Mr.

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694 F. Supp. 483, 8 U.S.P.Q. 2d (BNA) 1572, 15 Media L. Rep. (BNA) 2065, 1988 U.S. Dist. LEXIS 9219, 1988 WL 90566, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jackson-v-mpi-home-video-ilnd-1988.