Bit Parts

The U.S. District Court for the Southern District of New York has denied a music company's motion for reconsideration of an earlier ruling that oral permission to use music tracks in the film 'Jails, Hospitals and Hiphop' on a non-exclusive basis was valid. Rawkus Entertainment LLC v. JHH Pictures Inc., 01-8804 (Feb. 13). Rawkus alleged copyright infringement on the ground that they had never given JHH written licenses to use the tracks. The district court noted, however, '[w]hatever may have been in a contract about a writing being required, it is obvious that the parties went forward to virtual completion of the agreement on a handshake. Plaintiff, having allowed this, in essence waived any requirement of a writing and appears to be in bad faith by refusing later to supply written licenses. This, as the Court sees it, excuses the requirement of what has become a merely formal confirmation in writing.'

Review Petition Denied

The California Supreme Court has denied a petition for a review of a state court of appeal ruling that a motion picture production company was liable for fraudulent acts of an executive producer the company hired to find film properties and gave in-house office space. StreetScenes v. ITC Entertainment Group Inc., S111968. The court of appeal had found that ITC had ratified the executive producer's activities.

The U.S. Court of Appeals for the Second Circuit has upheld a stay of federal court litigation filed by insurance companies against a bank that made loans to Paramount for a group of films, pending the outcome of a state court suit filed against the insurers by the bank. General Star International Indemnity Ltd. v. AXA Reinsurance UK PLC, 02-7659 (Feb 7). The Second Circuit agreed with the district court that because other defendant insurance companies in the state suit weren't parties to the federal action, there was a risk of inconsistent outcomes.

Film Captioning Case to Proceed