Metro-Goldwyn-Mayer Distributing Corp. v. Bijou Theatre Co.

59 F.2d 70, 13 U.S.P.Q. (BNA) 147, 1932 U.S. App. LEXIS 3314
CourtCourt of Appeals for the First Circuit
DecidedApril 7, 1932
Docket2614, 2615
StatusPublished
Cited by20 cases

This text of 59 F.2d 70 (Metro-Goldwyn-Mayer Distributing Corp. v. Bijou Theatre Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Metro-Goldwyn-Mayer Distributing Corp. v. Bijou Theatre Co., 59 F.2d 70, 13 U.S.P.Q. (BNA) 147, 1932 U.S. App. LEXIS 3314 (1st Cir. 1932).

Opinion

MORRIS, District Judge.

These two eases submitted in one record and argued together are bills in equity in which the plaintiffs seek injunctive- relief and damages for infringements of their alleged copyright on certain motion picture films.

Both plaintiffs are corporations organized and existing under and by virtue of the laws of the state of New York and each has a principal place of business in the city and state of New York.

The defendants in both eases are the Bijou Theatre Company, a corporation organized and existing under and by virtue of the laws of the commonwealth of Massachusetts, having an office and place of business in the city of Holyoke in said commonwealth, and M. F. O’Donnell, who is an inhabitant of said eity of Holyoke and the manager of said theatre.

The plaintiffs are producers and distributors of motion pictures.

The bills allege that the defendants were engaged in the business of exhibiting motion pictures by giving publie performances thereof for profit and in the conduct of such business owned, operated, or controlled the Bijou Theatre in said Holyoke and still operate and control said theatre.

The plaintiffs are copyright proprietors, being the sole and original authors and proprietors, of certain original, unpublished motion pictures, lists of which are set forth in the complaints.

*71 The bills further allege that a Lu ge number of punts of each of the copyrighted motion pictures are circulated widely throughout tlie United States for public exhibition under license agreements; that such license agreements now exist between ’tho plaintiffs and the defendants, under which agreements copyrighted motion pictures are derive Led for exhibition to tho defendants, such exhibitions to be .held on specified dates. It is also alleged on information and belief that defendants are likely, if not restrained and enjoined by order of court, to exhibit the copyrighted pictures of the plaintiffs which may come into their possession in infringement of the respective copyrights thereof and in violation of the exclusive rights of the plaintiffs therein, to the great and irreparable damage of the plaintiffs. It is further alleged that on or about the 17th day of August, 3927, tho plaintiffs, distributors, subject to tho terms and conditions of written contracts, granted to tho Bijou Theatre Company and the company accepted a limited license, under the respective copyrights of the motion pictures mentioned in the bills of complaint, to exhibit the same publicly each for one day only at the above-mentioned theatre. The bills further set forth the dates upon which the pictures were permitted by the contracts to be shown and the dates upon which, they were shown, being in each instance one day later than tho date fixed in the license agreements. It is alleged that each exhibition and performance was an inti inge-nien!; of the copyright and that each infringement constituted a separate cause of action, all of which are joined in the bills because governed by the same legal rules and involving tho samo facts, so that for the convenient administration of justice and as a ground of equitable jurisdiction such joinder of separate actions is made to prevent a multiplicity of suits. The prayer of the hill socks injunctive relief and assessment of damages under section 25 of the Copyright Law (37 USO A § 25), such damages in no event to be less than $250 for each infringement.

Tho defendants in No. 2614 filed a motion to dismiss the case upon the following grounds: (1) That the plaintiff has not stated in its bill such a cause as entitles it to any relief in equity against these defendants. (2) That the alleged exhibition by tho defendant of morion pictures referred to in tho bill of complaint was not an infringement of tho respective copyrights thereof. (3) That the plain!iff brought aeiion against the defendant Bijou Theatre Company of Holyoke, in the superior court of the- commonwealth of Massachusetts in and for the county of Hampden, by a petition filed on or about June 24, 1929, said petition being numbered 32252, for the same matters and causes of action sot forth in tho plaintiffs bill of complaint; tba.t said action is still pending on tho docket of said superior court and remains undisposed of; and that this defendant should not be required to defend two actions pending for the same cause of action. A motion to dismiss was filed by the defendants in No. 2615 upon the first two grounds above stated and upon the additional ground of misjoinder of parties. Ground No. 3 in 2614 is omitted from tho motion in No. 2.615.

The District Court disposed of the first ground for dismissal in each case, ruling that tho actions could be maintained even though no ground for injunetivo relief is found to exist (17 USCA § 2), and ruling as to the third ground in No. 2614 that the fact of tho pendency of the prior suit in a state court is not ground for abatement of a subsequent suit in the federal court even though the pri- or suit is between the same parties and for , tho same cause. Citing McClellan v. Carland, 217 U. S. 268, 30 S. Ct. 501, 54 L. Ed. 702; Consolidated Ordnance Co. v. Marsh, 227 Mass. 15, 116 N. E. 394. See, also, Boston & Maine R. R. v. Dutille (C. C. A.) 289 F. 320. Tho court denied defendants’ motion to dismiss on the ground of misjoinder of parties in No. 2615, citing Equity Rule 37 (28 USCiV § 723); no exceptions were taken to these rulings of the District Court.

As indicated above, the acts, relied upon as constituting infringement are exhibitions of tho films in question, thirteen in number in tho first case and twelve in number in the second case, alleged to have been unauthorized under the contract or license agreements between the parties.

After hearing the motions to- dismiss, final decrees dismissing the bills were entered by order of the District Court, May 26, 1931, Laxed on the second ground alleged. From (hese decrees the plaintiffs appealed and the cases are before this court upon their assignments of error as follows:

“Tho court erred in entering the aforesaid decree of May 26, 1931, (1) because the decree was based on an erroneous finding and ruling that the unauthorized exhibitions of the motion picture films in question did not constitute violations of their respective copyrights. (2) Because the decree was based on an erroneous finding and ruling, that the contract entered into between the plaintiff and *72 the defendant concerning exhibition of the motion picture films in question was a bar to proceedings by the plaintiff against the defendant under the Copyright Act for violations of copyright. (3) Because the decree was contrary to the law.”

From what is common knowledge it is evident that the questions relating to the use ' of .moving picture films is one of considerable importance, involving as it does large property interests. The production and distribution is one of the great industries of the United States. The income to the producers and distributors, which is the reward for the capital investment, comes from rentals paid by exhibitors for the privilege of exhibiting the pictures which have a wide distribution and enormous patronage throughout the country.

Prints of the pictures or films as they are called are not produced for sale.

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Bluebook (online)
59 F.2d 70, 13 U.S.P.Q. (BNA) 147, 1932 U.S. App. LEXIS 3314, Counsel Stack Legal Research, https://law.counselstack.com/opinion/metro-goldwyn-mayer-distributing-corp-v-bijou-theatre-co-ca1-1932.