Philadelphia Orchestra Ass'n v. Walt Disney Co.

821 F. Supp. 341, 1993 U.S. Dist. LEXIS 7655, 1993 WL 165657
CourtDistrict Court, E.D. Pennsylvania
DecidedJune 8, 1993
DocketCiv. A. 92-2634
StatusPublished
Cited by11 cases

This text of 821 F. Supp. 341 (Philadelphia Orchestra Ass'n v. Walt Disney Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Philadelphia Orchestra Ass'n v. Walt Disney Co., 821 F. Supp. 341, 1993 U.S. Dist. LEXIS 7655, 1993 WL 165657 (E.D. Pa. 1993).

Opinion

MEMORANDUM

McGLYNN, District Judge.

THE PRELUDE

The Philadelphia Orchestra Association (“The Orchestra Association”) contends for various reasons that it is entitled to share with Disney 1 in the profits resulting from the sales of the home video release of the Disney classic “Fantasia.” Most of the musical score featured in “Fantasia” was performed by The Philadelphia Orchestra 2 in April of 1939 under the baton of the Orchestra’s former principle conductor, Leopold Stokowski. 3 In January of that year, The Orchestra Association had contracted with Disney to “furnish and grant” to Disney “the right to use The Philadelphia Orchestra” to record music “for a feature picture now in preparation for the Disney Studios,” (emphasis added) and also agreed to grant to Disney “the right ... in connection with this feature, to use the name ‘The Philadelphia Orchestra’ on the screen and/or in all publicity and exploitation of said picture. 4 (emphasis added) Disney paid the Association $2,500.00 for the rights granted to it in the 1939 Agreement.

In 1940, Disney considered selling phonograph records of the orchestra’s 1939 performance under the RCA record label in conjunction with the original theatrical exhibition of “Fantasia.” Disney sought and received the permission of The Orchestra Association to sell these phonograph records containing the Orchestra’s performance and to use the Orchestra’s name in exchange' for The Orchestra Association’s receiving a share of the record royalties. One agreement provided that Disney, The Orchestra Association, and Stokowski would divide the record royalties equally. In any event, the parties abandoned this project.

The idea was revisited in 1957, however, when Disney decided to sell phonograph recordings of the Orchestra’s 1939 performance under its own record label. Disney again sought and received The Orchestra Association’s permission to sell phonograph records of the Orchestra’s performance and to use the Orchestra’s name in exchange for a royalty payment on sales of the records. Since 1957, Disney has regularly paid royalties to *344 The Orchestra Association in connection with its sales of sound recordings of “Fantasia.”

In November of 1991, 51 years after the initial theatrical release of “Fantasia,” Disney released “Fantasia” in the new home video formats—videocassettés and laser discs (collectively referred to as “home video”). Disney also released the Orchestra’s performance and sound recording of the classical music in “Fantasia” on compact disc as part of the Deluxe Commemorative Edition of “Fantasia.” The Orchestra Association receives royalties for the sales of these compact discs which are included in the Deluxe Commemorative Edition box set.

The home video of “Fantasia” includes the Orchestra’s 1939 performance, the likeness of the Orchestra (although the likeness used may be of actors hired to portray the Orchestra members), and the Orchestra’s name. The name “The Philadelphia Orchestra” is used both in the narration of the film and in the packaging and marketing of the home video. At no time did Disney seek the permission of the Orchestra to use the performance or the name and likeness of the Orchestra in the home video release of “Fantasia,” and Disney has never paid any royalties to the Orchestra on the sales of the home video.

The Orchestra Association requested compensation for Disney’s use of the performance, the name and the likeness of the Orchestra when the home videos were initially released. Disney refused. Thereafter, The Orchestra Association, unable to find an agreement between The Orchestra Association and Disney, filed an action in May of 1992 for damages against Disney based on various common law claims. After discovery of the 1939 agreement between the Orchestra Association and Disney, the Orchestra Association added contractual claims to their complaint.

Before the court is the Orchestra Association’s Motion for Partial Summary Judgment based upon six theories, occasionally overlapping, each of which will be considered in turn.

The criteria for summary judgment is set forth in Rule 56 of the Federal Rules of Civil Procedure. In the comments to the 1963 amendment to this rule, the committee writes that “[t]he very mission of the summary judgment procedure is to pierce the pleadings and to assess the proof in order to see whether there is a genuine need for trial.” Fed.R.Civ.P. 56, note to subdivision (e). For summary judgment to be granted The Orchestra Association, as the moving party, bears the burden to produce credible evidence that no genuine issue as to any material fact exists and that it is entitled to judgment as a matter of law. Fed.R.Civ.Pro. 56(c). A material fact is one that “would affect the outcome of the suit as determined by the substantive law.” Gray v. York Newspapers, Inc., 957 F.2d 1070, 1078 (3d Cir.1992) (citing Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986)). An issue of fact is genuine only “if the evidence is such that a reasonable jury could return a verdict for the non-moving party.” Anderson 477 U.S. at 248, 106 S.Ct. at 2510. Every inference must be drawn and doubt resolved in favor of the non-moving party. United States v. Diebold, Inc., 369 U.S. 654, 655, 82 S.Ct. 993, 993, 8 L.Ed.2d 176 (1962).

THE ORCHESTRA ASSOCIATION’S MOTION FOR PARTIAL SUMMARY JUDGMENT

THE FIRST MOVEMENT:

The plaintiff asserts that Disney did not have the right, as a matter of law, under the 1939 agreement or otherwise, to sell copies of the Orchestra’s performance or use the Orchestra’s name and likeness in a home video release of “Fantasia.” (Pl.Mem.Supp. Summ.J. at 34.)

The 1939 agreement between The Orchestra Association and Disney stated in pertinent part:

The Philadelphia Orchestra Association agrees to furnish and grant to Leopold Stokowski and The Disney Studios the right to use The Philadelphia Orchestra for recordings in connection with this feature *345 picture 5 , said recordings to be made at the Academy of Music.... If additional recording sessions are made necessary by reason of faulty recordings, The Philadelphia Orchestra Association, Inc. agrees to make The Philadelphia Orchestra available for such recordings, on mutually convenient dates; Leopold Stokowski and The Disney Studios to pay all actual costs of said recording session, or sessions.
The Philadelphia Orchestra Association, Inc.

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821 F. Supp. 341, 1993 U.S. Dist. LEXIS 7655, 1993 WL 165657, Counsel Stack Legal Research, https://law.counselstack.com/opinion/philadelphia-orchestra-assn-v-walt-disney-co-paed-1993.