Miramax Films Corp. v. Columbia Pictures Entertainment, Inc.

996 F. Supp. 294, 46 U.S.P.Q. 2d (BNA) 1130, 1998 U.S. Dist. LEXIS 2581, 1998 WL 97815
CourtDistrict Court, S.D. New York
DecidedMarch 5, 1998
Docket97 CIV. 7657(MGC)
StatusPublished
Cited by3 cases

This text of 996 F. Supp. 294 (Miramax Films Corp. v. Columbia Pictures Entertainment, Inc.) 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
Miramax Films Corp. v. Columbia Pictures Entertainment, Inc., 996 F. Supp. 294, 46 U.S.P.Q. 2d (BNA) 1130, 1998 U.S. Dist. LEXIS 2581, 1998 WL 97815 (S.D.N.Y. 1998).

Opinion

OPINION AND ORDER

CEDARBAUM, District Judge.

Miramax Films Corp. sues Columbia Pictures Entertainment, Inc., and Mandalay Entertainment, Inc., for unfair competition under Section 43(a) of the Lanham Act, for common law unfair competition, and for trademark infringement.

Plaintiff moves preliminarily to enjoin defendants from conducting an allegedly false and misleading advertising campaign for the motion picture “I Know What You Did Last Summer” (hereafter “Summer”), which defendants produced and are distributing throughout the world. Plaintiff complains that defendants’ advertising campaign falsely designates “Summer” as originating from the same “creator” as the motion picture “Scream,” a motion picture that plaintiff developed and distributed. Plaintiffs grievance is that defendants are seeking to profit from the popularity of “Scream” by inducing potential viewers of horror movies to patronize “Summer” in the false belief that it originated from the same source as “Scream” and is associated with “Scream.” Defendants oppose plaintiff's motion on the ground that plaintiff has failed to establish that the advertisements are misleading and has failed to show irreparable harm. For the reasons discussed below, plaintiff’s motion for a preliminary injunction is granted.

Controlling Principles of Law

A preliminary injunction may issue only when the movant demonstrates (a) irreparable harm and (b) either (i) a likelihood of success oh the merits of the claim, or (ii) sufficiently serious questions going to the merits of the claim to make it fair ground for litigation, and the balance of the hardships tips decidedly in favor of the movant. SEG Sports Corp. v. State Athletic Commission, 952 F.Supp. 202, 204 (S.D.N.Y.1997).

A higher standard applies when an injunction will alter, rather than maintain, the status quo. Tom Doherty Associates, Inc. v. Saban Entertainment, Inc., 60 F.3d 27, 33-34-(2d Cir.1995). Such an injunction should issue only upon a clear showing that the moving party is entitled to the relief requested. Id. at 34.

Under Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a) (hereafter “the Lanham Act”):

Any person who, on or in connection with any'goods ... uses in commerce any word, term, name, symbol, or device, or any combination thereof, or any false designation of origin, false or misleading description of fact, or false or misleading representation of fact, which—
is likely to cause confusion, or to cause mistake, or to deceive as to the affiliation, connection, or association of such person with another person, or as to the origin, sponsorship, or approval of his or her goods ...
shall be liable in a civil action by any person who believes that he or she is or is likely to be damaged.

15 U.S.C. § 1125(a)(1)(A).

False advertising is actionable under the Lanham Act both for an advertisement that is literally false and for a literally true advertisement which is likely to mislead or confuse customers. The deceptive representation must materially affect consumers’ purchasing decisions. National Basketball Ass’n v. Motorola, Inc., 105 F.3d 841, 855 (2d Cir.1997). A misleading reference to the origin of a work may also form the basis of a claim under the Lanham Act. See King v. *296 Innovation Books, 976 F.2d 824, 828-29 (2d Cir.1992).

The Facts

On December 18,1997,1 conducted a hearing on plaintiffs application for a preliminary injunction. I have examined the affidavits submitted by both sides, weighed the oral testimony and the credibility of the witnesses, studied the exhibits received in evidence, and considered all prior submissions regarding this matter, and I make the findings of fact that follow.

Plaintiff is an international developer and distributor of motion pictures. In December 1996, plaintiff released for distribution in the United States the motion picture “Scream,” a film of the “horror movie” genre. “Scream” was directed by Wes Craven, an internationally renowned director of horror movies, including the film “Nightmare on Elm Street.”

In an attempt to exploit Wes Craven’s fame, plaintiff aggressively marketed “Scream” as a Wes Craven product, both in the United States and abroad. For example, promotional materials referred to the film as “The Highly Acclaimed New Thriller From Wes Craven” and “Wes Craven’s Scream” (Gill Aff., Ex. B). As explained by plaintiffs chairman of worldwide film distribution Richard Sands, plaintiff views Wes Craven as “a director that I protect and I use as a commodity” (Tr. 50). Numerous film critics in the United States and the United Kingdom have identified Wes Craven as the creative force behind “Scream” (Tr. 35, Pl.Ex. 4; Gill Aff., Ex. C).

By any measure, “Scream” was an extraordinary success. In addition to being praised by film critics, “Scream” grossed over $100 million at the box office domestically, and, as of December 18, 1997, had grossed approximately $65 million overseas. In the United Kingdom, as of December 18,1997, “Scream” had grossed $13.5 million at the box office, making it the highest grossing horror movie ever shown in the United Kingdom (Tr. 36, 107). Because of the extraordinary success of the film, plaintiff is planning a merchandising campaign associated with the film, and expects to produce clothing, accessories, and games under the “Scream” label. As of December 18, 1997, “Scream” was still in box office release in the United Kingdom, and it continues to proceed through the various stages of “ancillary” distribution, home video rental, home video sale, pay-per-view, pay cable, and free television in the United States and the United Kingdom.

On October 17, 1997, defendants, producers and distributors of motion pictures, released “Summer” in the United States. Shortly before October 17, 1997, plaintiff discovered that defendants were marketing “Summer” as “From the Creator of Scream.” The marketing campaign preceding the release of “Summer” described the film, in television, radio, and newspaper advertisements, as being “From the Creator of ‘Scream,’ ” and with such lines as “Last Time He Made you Scream, This Time You Won’t Have the Chance” and “From the Creator of ‘Scream’ Comes a New Chapter in Terror.” These advertisements (hereafter “‘Scream’ catchphrases”) dominate the written portions of both the television and print advertisements. In the print advertisements, “From the Creator of Scream” is the headline in large print.

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Bluebook (online)
996 F. Supp. 294, 46 U.S.P.Q. 2d (BNA) 1130, 1998 U.S. Dist. LEXIS 2581, 1998 WL 97815, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miramax-films-corp-v-columbia-pictures-entertainment-inc-nysd-1998.