Kabehie v. Zoland

125 Cal. Rptr. 2d 721, 102 Cal. App. 4th 513, 64 U.S.P.Q. 2d (BNA) 1503, 2002 Daily Journal DAR 11265, 2002 Cal. Daily Op. Serv. 9968, 2002 Cal. App. LEXIS 4705
CourtCalifornia Court of Appeal
DecidedSeptember 26, 2002
DocketB148827
StatusPublished
Cited by11 cases

This text of 125 Cal. Rptr. 2d 721 (Kabehie v. Zoland) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kabehie v. Zoland, 125 Cal. Rptr. 2d 721, 102 Cal. App. 4th 513, 64 U.S.P.Q. 2d (BNA) 1503, 2002 Daily Journal DAR 11265, 2002 Cal. Daily Op. Serv. 9968, 2002 Cal. App. LEXIS 4705 (Cal. Ct. App. 2002).

Opinions

Opinion

GRIGNON, Acting P. J .

This case involves causes of action for breach of contract, fraud and interference with economic relations, arising out of contracts for the purchase of exclusive rights to music compositions. The trial court granted defendants’ motion for judgment on the pleadings on the ground these state law causes of action were preempted by federal copyright law. We conclude that such state law causes of action are preempted by federal copyright law only to the extent they assert rights equivalent to the exclusive rights protected by federal copyright law. State law causes of action are not preempted if they require elements that are qualitatively different from the elements of a federal copyright infringement action. This is the “extra element” test for federal copyright preemption. In the context of a breach of contract cause of action, the extra element is not supplied by the mere breach of a promise giving rise to rights equivalent to copyright [518]*518protection; the extra element must be a contractual promise creating a right not existing under federal copyright law. We conclude some of the causes of action are preempted and others are not. We reverse with directions to grant the motion in part and deny it in part.

Facts and Procedural Background

Plaintiffs and appellants Seyed E. Kabehie and his production company Pars Video, Inc. (collectively Pars) duplicate, advertise, and sell music cassettes, videotapes, and compact discs. Defendant and respondent Farid Zoland is a music composer and producer. Zoland and defendant and respondent Mehin Abadani conduct business together through their .production company, defendant and respondent Avang Music Company (collectively Avang).

Commencing August 1984, Pars entered into a number of contracts with Avang to purchase Avang’s exclusive rights, titles and interests in several albums of music composed, arranged and produced by Zoland. In addition, Pars purchased third parties’ interests in certain albums of music that had previously been owned by or in partnership with Avang. On December 23, 1989, Pars agreed to pay Avang $24,000 for the exclusive rights to four albums of music. The master recordings for the four albums were to be delivered to Pars by Avang. On January 17, 1995, Pars agreed to pay Avang $25,000 for the exclusive rights to three as yet unrecorded albums of music. The master recordings for the three new albums were to be delivered to Pars by Avang in March, May and July 1995, respectively.

Avang breached the agreements by producing, duplicating, advertising and selling the musical materials covered by the agreements and otherwise interfering with Pars’s property rights in the musical materials. Avang also breached the December 23, 1989 agreement by refusing to deliver the master recordings for three of the four albums to Pars. In August 1995, Avang breached the January 17, 1995 agreement to deliver the master recordings for three new albums of music by failing to deliver any of the master recordings.

On April 1, 1999, Pars filed a first amended complaint against Avang alleging breach of contract, rescission, common counts, accounting, interference with economic relations and fraud. On August 4, 2000, Avang filed a motion for judgment on the pleadings on the ground of preemption by federal copyright law. The trial court granted the motion with leave to [519]*519amend. No amended complaint was filed. The trial court dismissed the complaint. Pars appealed.1

Discussion

Standard of Review

A motion for judgment on the pleadings may be made on the same ground as for a general demurrer, that the pleading at issue fails to state facts sufficient to constitute a legally cognizable claim or defense. (Colberg; Inc. v. State of California ex rel. Dept. Pub. Wks. (1967) 67 Cal.2d 408, 411-412 [62 Cal.Rptr. 401, 432 P.2d 3]; Sofías v. Bank of America (1985) 172 Cal.App.3d 583, 586 [218 Cal.Rptr. 388]; Code Civ. Proc., § 438, subd. (c)(l)(B)(ii).) Our review is guided by the same rules governing the review of the sustaining of a general demurrer. “ ‘We treat the demurrer as admitting all material facts properly pleaded, but not contentions, deductions or conclusions of fact or law. [Citation.] We also consider matters which may be judicially noticed.’ [Citation.] Further, we give the complaint a reasonable interpretation, reading it as a whole and its parts in their context. [Citation.]” (Blank v. Kirwan (1985) 39 Cal.3d 311, 318 [216 Cal.Rptr. 718, 703 P.2d 58].) Where a plaintiff is given leave to amend and chooses not to do so, we examine the complaint only to find whether it states a cause of action, not to determine whether plaintiff might have been able to state one. (Pavlovsky v. Board of Trade (1959) 171 Cal.App.2d 110, 115 [340 P.2d 63].)

Federal Copyright Law

The 1976 Copyright Act (the Act) extends federal copyright protection to “original works of authorship fixed in any tangible medium of expression.” (17 U.S.C. § 102(a).) Works of authorship include musical works. (Ibid.) Section 106 of the Act grants the copyright owner exclusive rights to reproduce, adapt, distribute, perform, and display the copyrighted work. (17 U.S.C. § 106.)2

“ ‘ “[W]hen acting within constitutional limits, Congress is empowered to pre-empt state law by so stating in express terms. [Citation.]” ’ ” [520]*520(KNB Enterprises v. Matthews (2000) 78 Cal.App.4th 362, 368 [92 Cal.Rptr.2d 713].) Section 301(a) of the Act3 expressly preempts state laws that protect “legal or equitable rights that are equivalent to any of the exclusive rights within the general scope of copyright as specified by [section 106].” (Balboa Ins. Co. v. Trans Global Equities (1990) 218 Cal.App.3d 1327, 1339 [267 Cal.Rptr. 787].) Section 301(b) represents the obverse of subsection (a), allowing states to regulate “activities violating legal or equitable rights that are not equivalent to any of the exclusive rights within the general scope of copyright as specified by [section 106].” (17 U.S.C. § 301(b).) The Act does not preempt all state common law affecting copyright material, but only state common law meeting two conditions, (United States Golf Assn. v. Arroyo Software Corp. (1999) 69 Cal.App.4th 607, 621 [81 Cal.Rptr.2d 708].) “Thus, for preemption to occur under the Act, two conditions must be met: first, the subject of the claim must be a work fixed in a tangible medium of expression and come within the subject matter or scope of copyright protection . . . , and second, the right asserted under state law must be equivalent to the exclusive rights contained in section 106.” (Fleet v. CBS, Inc. (1996) 50 Cal.App.4th 1911, 1918-1919 [58 Cal.Rptr.2d 645]; accord, KNB Enterprises v. Matthews, supra, 78 Cal.App.4th at p. 369.)

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Kabehie v. Zoland
125 Cal. Rptr. 2d 721 (California Court of Appeal, 2002)

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125 Cal. Rptr. 2d 721, 102 Cal. App. 4th 513, 64 U.S.P.Q. 2d (BNA) 1503, 2002 Daily Journal DAR 11265, 2002 Cal. Daily Op. Serv. 9968, 2002 Cal. App. LEXIS 4705, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kabehie-v-zoland-calctapp-2002.