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Copyright Preemption/Unfair Competition
The U.S. District Court for the Southern District of Texas decided that author Michael Baisden should amend his complaint over the stage production and film of his novel 'The Maintenance Man' to better state an unfair-competition allegation. Baisden v. I'm Ready Productions Inc. (IRP), H-08-0451. Baisden gave the defendants a three-year license for the stage play, but alleged underpayment of royalties and that the license rights were exceeded. The district court ruled, among other things, that Baisden properly alleged copyright infringement. But the court explained that Texas doesn't recognize a claim for unfair competition 'without some allegation of an independent substantive tort or other illegal conduct ' Although plaintiff argues that his unfair competition claim seeks to vindicate IRP's unlawful attempts to obtain access and derive profits from his current and prospective business relationships, he has neither alleged in his complaint that IRP (or either of the other two defendants) breached a confidential relationship or otherwise engaged in fraudulent or unethical conduct, nor argued that proof of his state law claim for unfair competition requires proof of an additional element not required to prove his federal copyright claim. ' However, because this case is still in an early stage of development and because the court is not persuaded that plaintiff is unable as a matter of law to state a claim that falls under the penumbra of unfair competition under Texas law, plaintiff will be accorded an opportunity
to amend his complaint.'
Music Publishing/Contract Interpretation
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