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Courthouse Steps
CASE CAPTION: Celador International Ltd., Lusam Music Ltd. and Paul Smith v. The Walt Disney Co., American Broadcasting Cos. Inc., Buena Vista Television (BVT) and Valleycrest Productions Ltd., U.S. District Court #04-3541.
CAUSES OF ACTION: Copyright infringement; breach of contract; breach of the covenant of good faith and fair dealing; tortious interference with contract; breach of fiduciary duty; fraudulent inducement; constructive fraud; unfair competition under Calif. Business & Professions Code Sec. 17200; an accounting; and declaratory relief.
COMPLAINT ALLEGATIONS: The British-based Lusam owns the copyrights in the music to “Who Wants to Be a Millionaire” which has been used in theme park attractions without obtaining the grand and dramatic performing rights. Smith and his British-based company, Celador, were the creators of the TV series. The plaintiffs, and ABC and BVT, agreed in 1998 to become 50/50 partners in exploiting the series in North America. Smith was to be executive producer and have meaningful consultation rights on creative elements. Despite the huge success of the series, BVT failed to renegotiate with ABC for a higher license fee because both were Disney affiliates. The defendants also have improperly charged distribution fees and expenses against the merchandising revenues derived from the series.
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