Walt Disney Productions v. Filmation Associates

628 F. Supp. 871, 230 U.S.P.Q. (BNA) 524, 1986 U.S. Dist. LEXIS 29086
CourtDistrict Court, C.D. California
DecidedFebruary 20, 1986
DocketCV852377AHS
StatusPublished
Cited by6 cases

This text of 628 F. Supp. 871 (Walt Disney Productions v. Filmation Associates) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Walt Disney Productions v. Filmation Associates, 628 F. Supp. 871, 230 U.S.P.Q. (BNA) 524, 1986 U.S. Dist. LEXIS 29086 (C.D. Cal. 1986).

Opinion

ORDER DENYING DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT

STOTLER, District Judge.

INTRODUCTION

In this action, plaintiff Walt Disney Productions (“Disney”) asserts claims for vio *874 lation of its copyright, trademark, and state-created rights in certain animated character depictions, full-length animated films, and industry marks.

Defendants Filmation Associates, Group W Cable, Inc., Westinghouse Broadcasting and Cable, Inc., and Westinghouse Electric Corporation (collectively, “Filmation”) have moved for summary judgment on all counts of the First Amended Complaint, arguing in response to plaintiff’s claims of copyright infringement: first, that materials created in the production of their motion picture cannot themselves be the subject of an action for copyright infringement; and, second, that no substantial similarity exists between any Filmation works and any of Disney’s copyrighted works. In response to plaintiff’s claims under the Lanham Act and the California law of unfair competition, defendants argue that defendants’ advertisements are dissimilar as a matter of law to plaintiff’s marks and that the claims must be dismissed for Disney’s failure to show actual diversion of sales.

By this Order, the Court denies defendants’ motion, concluding: (1) the preliminary works created in production of defendants’ motion picture can constitute infringing copies within the meaning of the 1976 Copyright Act; (2) the issue of infringement of Disney’s copyrights remains a question for the trier of fact; (3) the Lanham Act and unfair competition claims include triable issues; and (4) Disney’s Lanham Act and unfair competition claims do not fail for a lack of evidence of actual diversion of sales.

FACTS AND PROCEDURAL HISTORY

Plaintiff Disney is a corporation that produces, among other things, animated films. Beginning in 1937, Disney produced a series of feature-length motion pictures, which it refers to as the “Disney Classics.” Included among these are pictures entitled “Pinocchio,” “Alice in Wonderland,” and “The Jungle Book.” The story of each of these pictures is based in part upon preexisting work, much of which is in the public domain.

Filmation is also in the business of producing animated films. In or prior to February, 1985, Filmation announced its intention to produce and distribute a series of fully animated feature-length films which it refers to as its “New Classics Collection.” Included among these are films entitled “The New Adventures of Pinocchio,” “Alice Returns to Wonderland,” and “The Continuing Adventures of the Jungle Book.” Filmation’s works are based in part upon the same preexisting sources as are Disney’s.

On April 10, 1985, Disney filed suit against Filmation, asserting eleven causes of action under the federal copyright and trademark laws, as well as California unfair competition laws. Defendants initially moved to dismiss every count in the Complaint for failure to state a claim upon which relief can be granted. By an Order dated July 16, 1985, the Court granted defendants’ motion with regard to all but Counts Three, Four, and Five.

On July 22, 1985, Disney filed a First Amended Complaint, setting forth, in amended form, its eleven causes of action against defendants. The gravamen of the First Amended Complaint is that Filmation has implemented plans to produce and distribute its New Classics Collection by: (a) creating various items of advertising that contain titles owned by Disney and contain depictions that infringe, copy, and/or unfairly compete with depictions of characters owned by Disney; (b) using these infringing materials to solicit purchases of films from prospective distributors and others; and (c) commencing production of “The New Adventures of Pinocchio.” See First Amended Complaint, ¶ 8.

On August 5, 1985, Disney moved for a preliminary injunction to restrain Filmation from advertising for its films with materials that purportedly infringed Disney’s copyrights. In conjunction with the motion, Disney submitted copies of Filmation’s challenged advertisements along with Disney’s depictions of the characters embodied in each. See Declaration of Donald S. Engel, filed July 8, 1985, Exhibits “la-1” through “llo.” The Court denied *875 the motion, finding that Disney had failed to show a likelihood of success on the merits of its claims.

On October 10,1985, the Court heard and denied Filmation’s motion to dismiss the First Amended Complaint. After the Court’s decision, counsel for Filmation requested an opportunity to file further papers expanding its already-filed motion for summary judgment from Counts Three, Four, and Five of the Complaint to all counts in the First Amended Complaint. The amended version of this motion was filed November 8, 1985 and ultimately was scheduled for hearing on January 24, 1986. After hearing the arguments of counsel and viewing two videocassettes submitted by counsel at the time of hearing, the matter was submitted for decision.

DISCUSSION

A. COUNT SIX: COPYRIGHT INFRINGEMENT

In Count Six, Disney alleges that Filmation has infringed Disney’s exclusive right to reproduce its copyrighted works in copies. See 17 U.S.C. § 106a). 1

Disney owns the copyrights to a fully-animated feature-length motion picture entitled “Pinocchio” and to a series of original designs and drawings of certain characters — named Pinocchio, Gepetto, and Stromboli — portrayed therein. These copyrights are valid and duly registered. See First Amended Complaint, Exhibits A-H. Filmation has begun production of a fully-animated motion picture entitled “The New Adventures of Pinocchio,” which, contends Disney, utilizes a substantial amount of the aforesaid copyrighted materials. In the course of production, Filmation has produced a script, “story board,” “story reel,” 2 models, and designs, which are said to be tangible and permanent reproductions of characters and scenes, “constituting copies of material” copyrighted by Disney. Id., 11 61. 3

It is undisputed that Filmation has generated a substantial body of work preliminary to a “finished film.” It is also undisputed, however, that it has not completed its film “The New Adventures of Pinocchio.” Filmation contends that Count Six is not actionable until it has completed work on its motion picture. Alternatively, Filmation asserts it is entitled to judgment because any articles so far produced are not substantially similar to Disney’s copyrighted expressions.

1. Actionable “Copies"

Filmation argues that the materials so far created are only transitory steps en *876 route to a fixed product, and that until its film is completed and ready for distribution, there exists no article that could be said to infringe any of Disney’s copyrights.

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Bluebook (online)
628 F. Supp. 871, 230 U.S.P.Q. (BNA) 524, 1986 U.S. Dist. LEXIS 29086, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walt-disney-productions-v-filmation-associates-cacd-1986.