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INTERNATIONAL CASES Band leader Artie Shaw loses lawsuit seeking share of profits from Academy Award winning documen- tary about his life; Canadian judge rules that Shaw's agreement with filmmaker Brigitte Berman did not provide for profit sharing, and Shaw did not have right under Canadian copyright law to be compen- sated for movie's use of recordings of performances he gave more than 50 years ago Success is a two-edged sword, as Toronto film- maker Brigitte Berman has learned to her undoubted chagrin. Berman was (and perhaps still is) a fan of famed band leader Artie Shaw. Back in 1982, she decided to produce a documentary about his life and career, and he ENTERTAINMENT LAW REPORTER VOLUME 19, NUMBER 1, JUNE 1997

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Page 1: Band leader Artie Shaw loses lawsuit seeking share ...elr.carolon.net/BI/v19n01.pdf · The film was, however, an artistic success. In 1987, "Artie Shaw-Time Is All You've Got" won

INTERNATIONAL CASES

Band leader Artie Shaw loses lawsuit seeking shareof profits from Academy Award winning documen-tary about his life; Canadian judge rules that Shaw'sagreement with filmmaker Brigitte Berman did notprovide for profit sharing, and Shaw did not haveright under Canadian copyright law to be compen-sated for movie's use of recordings of performanceshe gave more than 50 years ago

Success is a two-edged sword, as Toronto film-maker Brigitte Berman has learned to her undoubtedchagrin.

Berman was (and perhaps still is) a fan of famedband leader Artie Shaw. Back in 1982, she decided toproduce a documentary about his life and career, and he

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readily agreed. At the outset of her work, he providedher with a letter addressed "To Whom it May Concern"confirming (to those she might want to interview) thather film was being done with his "cooperation" and"authorization." Two years later, when her work was al-most but not quite done, he sent her tapes of unreleasedrecordings of some of his performances, along with aletter authorizing her to use them in the soundtrack ofthe film.

Neither of these two letters said anything aboutShaw sharing in whatever profits the film might make,and Shaw never raised the subject in conversation be-fore or while the film was being made. Apparently, thiswas because neither of them expected the film to earnmuch if anything in the way of profits; and in fact, it did-n't. The film cost $255,000 - not including Berman's sal-ary - but from 1985 to 1994, it earned only $145,000.

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The film was, however, an artistic success. In1987, "Artie Shaw-Time Is All You've Got" won anAcademy Award for Best Feature Documentary. Andthis "triggered" "Shaw's interest in capitalizing on thefilm's actual and potential earnings." Shaw claimed a"35% profit participation . . . after recoupment of nega-tive costs and Ms. Berman's salary" - apparently un-aware that there were no such profits.

Berman did not acknowledge any obligation toshare profits. And Shaw later admitted that "the figureof 35% was what he unilaterally considered reasonable."He justified his claim for profits by contending that "hewould have included such a provision in the agreementif he had anticipated that the film would be exploitedcommercially, or if he had believed that Berman hadeven considered such a possibility."

When Shaw realized the film had not earned prof-its, he called an expert witness who testified that if he

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had marketed the film, it would have earned $300,000rather than only $145,000. Shaw also argued that underCanadian copyright law, he was entitled to be compen-sated for the film's use of recordings of his performancesthat Berman had obtained from other sources (and thusweren't covered by his earlier letter).

Justice Romain Pitt of Canada's Ontario CourtGeneral Division has rejected both of Shaw's arguments.The judge found that Berman and Shaw had neveragreed that he would be entitled to share in the film'sprofits, so it wasn't necessary for him to decide whetherthere would have been any had it been marketed bysomeone else.

With respect to the music issue, there was no evi-dence that Shaw owned the copyrights to the recordingsBerman obtained from other sources and used in thefilm's soundtrack, so Shaw was not entitled to recoveranything based on those copyrights. He did, however,

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argue that as a result of a recent amendment to Canadiancopyright law - in Canada's WTO Implementation Act -Canadian law now gives performers rights in their re-corded performances. Justice Pitt ruled that the amend-ment was of no help to Shaw in this case, however,because the rights it created became effective January 1,1996 and are prospective only.

As a result, Justice Pitt has dismissed Shaw'saction.

Shaw v. Berman, 144 D.L.R.4th 484, 72 C.P.R.3d 9(Ont.Ct. 1997) (available on LEXIS in the Intlaw Li-brary, Cancas File) [ELR 19:1:4]

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RECENT CASES

NBA wins appeal of ruling that permitted supersta-tion WGN to televise 30 Chicago Bulls games a year,and that substantially reduced "tax" Bulls must payNBA for each such game; Court of Appeals decidesthat NBA rules concerning superstation telecastsmay not violate antitrust laws, because NBA may be"single entity" for TV licensing purposes or becauserules are reasonable

The Chicago Bulls are the darlings of the NationalBasketball Association. They won the NBA champion-ship this year, and were NBA champs four earlier times,this decade alone.

Off the basketball courts, and in the law courts,the Bulls have been successful too. On four earlier occa-sions, the Bulls have won judicial rulings in a long-

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running battle with the NBA over the number of Bullsgames Chicago television station WGN may broadcast.(ELR 12:12:11, 14:10:6, 15:3:6, 17:2:14) But the Bulls'streak in the law courts has come to an end. The NBAhas won the fifth and most recent ruling, though at leastone more courtroom contest will be necessary before theultimate victor is known.

The reason the Bulls and NBA are at legal logger-heads is this. WGN - the station that televises the Bulls'home games - is a "superstation" whose signals are re-transmitted by cable systems all around the country, in-cluding some whose subscribers live in cities that haveNBA teams of their own. As a result, in some cities,telecasts of Bulls games compete for viewers with liveand televised games played by other NBA teams. Natu-rally, other NBA teams don't care for this, and severalyears ago, the NBA adopted superstation rules to dealwith this situation. The rules reduced the number of

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Bulls games WGN was permitted to carry; and WGNand the Bulls responded by filing an antitrust suit in fed-eral court in Chicago, attacking the legality of the NBA'ssuperstation rules.

The Bulls' won the early rounds of the lawsuit,but the NBA did not give up. Instead, it amended its su-perstation rules and changed its television licensingpractices, hoping that these changes would enable therules to pass antitrust muster. Among other things, theNBA imposed a "tax" on teams that permitted supersta-tion telecasts of their home games, so that superstationrevenues would be shared among all NBA teams.

Once these changes were put in place, the NBAsought approval of its superstation "tax" and a court or-der permitting it to reduce (from 30 to 15) the number ofBulls games WGN could carry in a year. WGN and theBulls sought to increase (from 30 to 41) the number ofBulls games WGN could carry, and asked for a

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reduction in the amount of the "tax" the Bulls wouldhave to pay. The Bulls were largely successful. DistrictJudge Hubert Will decided that the NBA's revised su-perstation rules still violated the antitrust laws. Thejudge neither increased nor decreased the number ofgames WGN could show, leaving the number at 30games a year; but he did decrease the amount of the taxthe Bulls had to pay the NBA from $138,000 for eachsuperstation-televised game to $39,400 per game.

Both sides appealed, and finally the NBA has awin in its column. In a decision by Judge Frank Easter-brook, the Court of Appeals gave the Bulls a small pointby holding that the Sports Broadcasting Act does not ex-empt the NBA's superstation rules from the antitrustlaws. But the appellate court gave the NBA two points.It held that even though the rules are not exempt, theDistrict Court had erred in categorically rejecting theNBA's argument that it is a "single entity" and thus

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cannot "conspire" in violation of section 1 of the Sher-man Act. And it ruled that even if the NBA is not a sin-gle entity, the antitrust legality of its superstation rulemust be fully evaluated under the Rule of Reason. So"with apologies to both sides," the appellate court re-manded the case to the District Court where the parties"must suffer through still more litigation."

Editor's note: The question of whether a sportsleague is a "single entity" - like a conglomerate corpora-tion - even though its teams have separate owners, haslong been a hotly-disputed issue in sports and antitrustlaw. If a league were a single entity, its teams would beincapable of "conspiring" with one another in violationof section 1 of the Sherman Act, under the SupremeCourt's decision in Copperweld v. Independence Tube,467 U.S. 752 (1984). Not surprisingly, sports leagueshave long argued that they are single entities, and sev-eral law review articles have supported that argument.

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However, so far, no court has ever been persuaded thata league is a single entity - though one court did rule thatthe PGA is a single entity (ELR 17:3:18). Nonetheless,Judge Easterbrook (who was an antitrust law professorat the University of Chicago before being appointed tothe bench) read Copperweld differently than the DistrictCourt had. And as Judge Easterbrook read Copperweld,he could "see no reason why a sports league cannot betreated as a single firm . . . ." He explained: "Sports aresufficiently diverse that it is essential to investigate theirorganization and ask Copperweld's functional questionone league at a time - and perhaps one facet of a leagueat a time, for we do not rule out the possibility that anorganization such as the NBA is best understood as onefirm when selling broadcast rights to a network in com-petition with a thousand other producers of entertain-ment, but is best understood as a joint venture whencurtailing competition for players who have few other

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market opportunities." If, as a result of this ruling, theNBA is deemed to be a single entity for broadcast rightspurposes, it will be a "first" of enormous significance toall sports leagues - one that is likely to give leaguesgreater control over renegade owners than they have hadfor several years.

Chicago Professional Sports Ltd. v. National Basket-ball Association, 95 F.3d 593, 1996 U.S.App.LEXIS23942 (7th Cir. 1996) [ELR 19:1:5]

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Claim by Jimmy Merchant and Herman Santiagothat they co-authored song "Why Do Fools Fall inLove?" is barred by Copyright Act's three-year stat-ute of limitations, federal appellate court rules

"Frankie Lymon and The Teenagers" were popu-lar in the mid-1950s. Their big hit was a 1956 recordingof "Why Do Fools Fall in Love," a song that was writtenby Frankie Lymon and assertedly co-authored by "TheTeenagers" - Jimmy Merchant and Herman Santiago.

Merchant and Santiago's contribution to "Fools"has been the subject of some dispute, because theirnames did not appear on the original copyright registra-tion. In fact, they didn't formally assert their contribu-tions to its authorship until 1987 when they filed alawsuit in federal District Court in New York City seek-ing a judicial declaration that they are the song's co-authors, and as such are co-owners of its copyright and

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entitled to their shares of the royalties it has earned.Since their lawsuit wasn't filed until more than threedecades after the song was written, one of the big issuesin their case was whether it was barred by the statute oflimitations.

Earlier in the case, a jury ruled in favor of Mer-chant and Santiago on the most important factual issuein the case when it found that they had in fact co-authored the song. Federal Magistrate Judge NaomiReice Buchwald then held in their favor on the big legalissue. She held that their claim was not barred com-pletely by the Copyright Act's three-year statute of limi-tations, though she did limit their recovery to a share ofthe royalties earned by the song as of three years beforethey sued. (ELR 15:12:22, 16:5:18) In so ruling, JudgeBuchwald relied on a then-recent decision of the SecondCircuit Court of Appeals in the Hank Williams case,Stone v. Williams, which held that the statute of

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limitations did not bar the co-ownership claim of Wil-liams' daughter, Cathy Stone (ELR 14:6:8).

Nevertheless, when Merchant and Santiago's vic-tory was appealed to the Second Circuit, the court heldthat their claim is barred by the Copyright Act's three-year statute of limitations. Thus the case has been re-turned to the District Court with instructions that it bedismissed.

In an opinion by Judge Jon Newman, the appel-late court distinguished its earlier ruling in the HankWilliams case by agreeing with Nimmer on Copyrightthat Stone v. Williams was "based on `highly idiosyn-cratic facts.'" Judge Newman explained that "Stonestands for the narrow proposition that, in certain situa-tions, the statute of limitations will not be applied to de-feat the copyright co-ownership claim of an author'srelative accruing more than three years before the law-suit where uncertainty surrounded the relative's status as

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a member of the author's family. Instead, if the relativeprevails on the merits and if the equities permit, theCourt will grant the relative a declaration of copyrightco-ownership, but permit damages only for the periodstarting three years prior to the suit."

In other words, the result in Stone was strictlylimited to its own very unusual - and unlikely to reoccur- facts. Those facts, of course, were not the facts inMerchant and Santiago's case. Judge Newman ex-plained: "Unlike Stone, where the copyright ownershipclaim was based on plaintiff's uncertain status as an heir,no similar uncertainty exists as to co-ownership rightsbased on co-authorship. A co-author knows that he orshe jointly created a work from the moment of its crea-tion. Accordingly, the concerns motivating our decisionin Stone are not present here. We hold that plaintiffsclaiming to be co-authors are time-barred three years af-ter accrual of their claim from seeking a declaration of

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copyright co-ownership rights and any remedies thatwould flow from such a declaration."

Editor's note: By limiting Stone v. Williams to itsown "highly idiosyncratic facts," the Second Circuit haschanged its direction quite significantly. To its credit, itexplained why it did so, and its reason is one with whichmost people who buy, sell or license copyrights willagree: "Our conclusion promotes the principles of re-pose integral to a properly functioning copyright mar-ket." In so ruling, the Second Circuit took its cue from(or at least cited with approval) the Ninth Circuit whichrecently held that the copyright three-year statute oflimitations barred a claim by two musicians that they areco-authors of the "Hooked on Phonics" music (ELR18:7:24) - a ruling which the Supreme Court declined toreview (ELR 18:12:19). Though there is no longer aconflict between the Second and Ninth Circuit on thisissue, the rule in the Fifth Circuit seems to be different.

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There, the Court of Appeals held that the CopyrightAct's three-year statute of limitations did not bar ShirleyGoodman's claim that she co-authored "Let the GoodTimes Roll," even though she made the claim 28 yearsafter the song was written; and once it was determinedthat Goodman was a co-author, her right to an account-ing for half the song's royalties arose under Louisianastate law, which has a 10-year limitations period, ratherthan under the Copyright Act (ELR 18:6:7). Nontheless,the Supreme Court has declined review Merchant also.

Merchant v. Levy, 92 F.3d 51, 1996 U.S.App.LEXIS19806 (2d Cir. 1996), cert. denied, 117 S.Ct. 943, 1997U.S.LEXIS 707 (1997) [ELR 19:1:6]

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Subscription background music license does notauthorize live or disc jockey performances

BMI has prevailed, on the issue of liability, in acopyright infringement action against a New Jerseynight club or restaurant named J.P. Anthony's. Musicwas publicly performed at Anthony's in three ways: bylive performers, by disc jockeys, and by a backgroundmusic service known as "Digital Music Service." Thebackground music performances were properly licensedby Digital, and sub-licensed by Digital to Anthony's. Butthe live and disc jockey performances were not licensed.

Anthony's argument that its sub-license fromDigital also covered live and disc jockey performanceswas rejected by District Judge Orlofsky, because thatsub-license merely gave Anthony's the right to performthe "Digital Music Service," nothing else. Anthony's hasbeen enjoined from "hosting the public performance" of

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compositions licensed by BMI. The court denied BMI'smotion for summary judgment against Anthony's ownerand its request for statutory damages, but only becausefactual disputes prevented the court from ruling on thoseissues at that time.

Broadcast Music, Inc. v. 84-88 Broadway, Inc., 942F.Supp. 225, 1996 U.S.Dist.LEXIS 15882 (D.N.J.1996) [ELR 19:1:7]

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Parody baseball cards do not violate Lanham Actrights of Major League Baseball Players Associationbecause they do create likelihood of confusion, andparody cards are protected by First Amendmentagainst right of publicity claims

Major League Baseball may be the national pas-time, but players today receive no more respect thanelected officials (or - dare I say it? - than lawyers). Acompany in Oklahoma named Cardtoons, L.C., pro-poses to publish a set of parody trading cards that fea-ture recognizable caricatures of major league players onthe front and humorous comments that ridicule them onthe back.

Cardtoons announced the anticipated debut of itscards in an ad in a 1993 issue of Sports Collectors Di-gest which was seen by the Major League BaseballPlayers Association. The Players Association is the

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exclusive licensing agent of all active major league play-ers, and it has issued licenses to manufacturers of a widevariety of merchandise, including trading cards. Card-toons did not have a license, so in response to its ad inSports Collectors Digest, the Players Association sentthe company a cease-and-desist letter. That letter had atleast one of its intended effects: Cardtoons' printer re-fused to print the cards unless and until a court deter-mined they would not violate the Players Association'srights.

Cardtoons did what it had to: it filed a declaratoryrelief action against the Players Association in federalDistrict Court in Oklahoma. The first inning went to thePlayers Association when Judge James Ellison adopteda magistrate's recommendation finding that Cardtoons'parody cards would violate the players' publicity rightsunder the Oklahoma Right of Publicity statute. (ELR16:3:7) Thereafter, however, the judge set aside his first

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ruling and entered a judgment in favor of Cardtoons.(ELR 16:9:5) Judge Ellison did so, because after themagistrate had made his recommendation, the UnitedStates Supreme Court decided the "2 Live Crew"copyright-parody case (ELR 15:12:18); and Judge Elli-son concluded that under that case, Cardtoons' cardswere protected parodies.

The Players Association appealed, but the thirdinning has gone to Cardtoons as well. The Court of Ap-peals has affirmed the judgment in Cardtoons' favor, onthe grounds that its cards are indeed protected parody,though for somewhat different - and perhaps more sig-nificant - reasons than those relied on by Judge Ellison.

In a thorough and scholarly opinion by JudgeDeanell Tacha, the Court of Appeals has held that Card-toons' cards would not violate the Players Association'srights under the Lanham Act, because they create nolikelihood of consumer confusion. (This part of the

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appellate court's ruling is somewhat ironic, because fed-eral court jurisdiction was based solely on the LanhamAct.) On the other hand, Judge Tacha ruled that on theirface, the cards do violate the publicity rights of the play-ers under the standards established by the OklahomaRight of Publicity statute (a statute modeled after Cali-fornia's publicity statute). The appellate court decidedthat the "fair use" analysis used by the Supreme Court inthe "2 Live Crew" copyright case is not appropriate fora right of publicity case. Nor is the "fair use" analysisused in trademark cases like those involving "DebbieDoes Dallas" (ELR 1:15:2) or "Mutant of Omaha" (Mu-tual of Omaha v. Novak, 836 F.2d 397 (8th Cir. 1987)).

Thus, in order to prevail, Cardtoons had to estab-lish that it has a First Amendment right to publish itscards. And Judge Tacha was persuaded that it does. TheFirst Amendment was asserted, but rejected, as a de-fense in the Vanna White right of publicity case (ELR

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14:4:3). But Judge Tacha frankly "disagree[d]" with thatcase "for reasons discussed in the two dissents it engen-dered." (ELR 15:4:8) Judge Tacha also distinguished theVanna White case because it involved commercialspeech - an ad for Samsung television sets - while thiscase involves "speech subject to full First Amendmentprotection."

In order to decide whether Cardtoons' cards areprotected by the First Amendment, Judge Tacha care-fully balanced the effects of permitting the PlayersAssociation to block the sale of the cards against the ef-fects of permitting the infringement of the Association'spublicity rights. "Little is to be gained," the judge con-cluded, "and much lost, by protecting [the Players Asso-ciation's] right to control the use of its members'identities in parody trading cards. The justifications forthe right of publicity are not nearly as compelling asthose offered for other forms of intellectual property,

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and are particularly unpersuasive in the case of celebrityparodies. The cards, on the other hand, are an importantform of entertainment and social commentary that de-serve First Amendment protection."

Cardtoons, L.C. v. Major League Baseball Players As-sociation, 95 F.3d 959, 1996 U.S.App.LEXIS 22629(10th Cir. 1996) [ELR 19:1:7]

County law prohibiting sale to minors of "heinouscrime" trading cards is unconstitutional

A Nassau County law that prohibits the sale tominors of trading cards that depict "heinous" crimes orcriminals has been declared unconstitutional by federalDistrict Judge Arthur Spatt. The law was challenged in a

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suit filed by the publisher of a "True Crime" series oftrading cards.

Judge Spatt held that the law violates the FirstAmendment because the county did not establish thattrading cards depicting heinous crimes are harmful tominors and because the law is not narrowly tailored tomeet a compelling state interest.

Moreover, the judge ruled that even if the lawwere constitutional, the trading cards at issue would nothave violated the law because they are not "harmful tominors" as that phrase is defined in the law.

Eclipse Enterprises, Inc. v. Gulotta, 942 F.Supp. 801,1996 F.Supp. 14191 (E.D.N.Y. 1996) [ELR 19:1:8]

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Court of Appeals affirms $1.35 million attorneys feeaward to John Fogerty in connection with his suc-cessful defense of copyright infringement suit filedagainst him by Fantasy; plaintiff's "blameworthi-ness" is not a prerequisite to awarding fees to a pre-vailing defendant, appellate court rules

The copyright infringement fight between FantasyInc. and singer-songwriter John Fogerty continues toproduce precedent-setting judicial opinions on a subjectthat is important to lawyers and clients alike: attorneysfees. This case last appeared in these pages when Dis-trict Judge Samuel Conti awarded Fogerty $1.35 millionin fees to reimburse Fogerty for most of what he hadspent successfully defending himself against Fantasy'sclaim that Fogerty's 1985 song "The Old Man Down theRoad" infringed the copyright - which Fogerty had

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previously sold to Fantasy - to his 1970 song "RunThrough the Jungle." (ELR 17:4:20)

The $1.35 million award against it was somethingFantasy did not anticipate when it filed its suit back in1985, because in those days, the rule in the Ninth Cir-cuit (though not everywhere) was that successful plain-tiffs were entitled to their attorneys fees in copyrightcases, but successful defendants were not. The UnitedStates Supreme Court overturned that rule in a decisionin this very case, and held that fee awards must be"evenhanded" in copyright cases, so that successfulplaintiffs and defendants are treated alike. (ELR15:11:14)

Nonetheless, Fantasy appealed the $1.35 millionaward, arguing that it had conducted a "good faith" and"faultless" lawsuit on reasonable factual and legalgrounds and was "blameless." As a result, Fantasy con-tended, Judge Conti should not have ordered it to pay

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Fogerty's fees, because plaintiffs win copyright casesonly when defendants are guilty of infringement andthus are "blameworthy."

While creative, that argument was not successful.In a decision by Judge Pamela Ann Rymer, the Court ofAppeals has held that "a court's discretion may be influ-enced by the plaintiff's culpability in bringing or pursu-ing the action, but blameworthiness is not a prerequisiteto awarding fees to a prevailing defendant."

The appellate court also awarded Fogerty the at-torneys fees he incurred in defending Fantasy's appeal,though it rejected Fogerty's argument that he shouldhave been awarded interest on the fees he paid in con-nection with earlier proceedings.

Fantasy, Inc. v. Fogerty, 94 F.3d 553, 1996U.S.App.LEXIS 21926 (9th Cir. 1996) [ELR 19:1:8]

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Federal District Court rules that First Amendmentbars wrongful death suit filed by relatives of murdervictims against publisher of books on how to commitmurders read by victims' killer; case now pendingbefore Court of Appeal

In a case that tests the outer limits of FirstAmendment protection for book publishers, a FederalDistrict Court in Maryland has dismissed a wrongfuldeath lawsuit brought by the relatives of three murdervictims, all of whom were victims of a hired - and nowconvicted - killer who apparently learned at least someof his trade from two books published and sold by Pala-din Press. Both books - Hit Man: A Technical Manualfor Independent Contractors and How to Make a Dis-posable Silencer - are how-to manuals. The publisherhas sold more than 13,000 copies of each since 1983,many to novelists, screenwriters, law enforcement

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officials and others who do not intend to kill anyone.However, the publisher has acknowledged that it alsoknew and intended that the books would be purchased,read and used by criminals to plan and commit murdersfor hire.

In 1992, James Perry was hired by LawrenceHorn to murder Horn's wife and brain-damaged son sothat Horn could inherit a $2-million trust fund estab-lished for the boy's care. Perry had purchased Hit Manand Silencer from Paladin Press just weeks before hewas hired, and using information in those books, Perrykilled Horn's wife and son as well as the son's privateduty nurse. Both Perry and Horn have been convicted.The victims' relatives assert that Paladin Press aided andabetted the killings and thus is liable for their wrongfuldeaths.

Paladin moved for summary judgment, arguingthat its publication of the books is protected by the First

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Amendment. A federal District Court judge has agreed.The question, the judge said, was whether the booksmerely advocate or teach techniques for committingmurders, or whether they actually incite and encouragereaders to commit murders. The judge said that he per-sonally found Hit Man to be "reprehensible and devoidof any significant social value." But the books do notconstitute "incitement or `a call to action,'" he said. Forthis reason, the Supreme Court's 1969 decision inBrandenburg v. Ohio requires the case to be dismissed,and the judge did so.

The plaintiffs have appealed the dismissal to theFourth Circuit Court of Appeals which heard oral argu-ment in May 1997.

Rice v. Paladin Enterprises, Inc., 940 F.Supp. 836,1996 U.S.Dist.LEXIS 13209 (D.Md. 1996) [ELR19:1:9]

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Appellate court affirms dismissal of libel suit againstSheridan Square Press filed by Robert McFarlane,National Security Advisor during Reagan-Bush Ad-ministration, on account of book entitled "Profits ofWar" that asserted that McFarlane conspired to de-lay release of American hostages in Iran and was anIsraeli spy; though Congress later discredited theseassertions, evidence did not show Sheridan Squarehad published book with "actual malice"

During the closing months of his administration,former President Jimmy Carter was frustrated by his in-ability to negotiate the release of Americans then beingheld hostage in Iran. In the opinion of many, this wasone of the important reasons President Carter was notre-elected in 1980, and why Ronald Reagan was electedinstead.

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Years later, books and articles appeared whichasserted that members of the Reagan-Bush Campaignhad conspired with Iran and Israel to the delay the re-lease of the hostages in order to "steal" the 1980 elec-tion. One of these books, Profits of War by AriBen-Menashe, was published by Sheridan Square Pressin 1992. According to Ben-Menashe's book, Reagan'sNational Security Advisor, Robert McFarlane, had takenpart in the "conspiracy" and was even an Israeli spy.Similar assertions were made in an earlier Esquiremagazine article by Craig Unger who had relied exten-sively on Ben-Menashe.

In 1993, a Congressional task force "thoroughlydiscredited" these claims. But the Congressional reportdid not make McFarlane feel sufficiently vindicated. Asa result, he filed libel lawsuits in federal District Courtin Washington, D.C. - one against Esquire and Unger,and another against Sheridan Square and Ben-Menashe.

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McFarlane has been persistent but not successful.His suit against Esquire and Unger was dismissed with-out trial, as to Unger for lack of personal jurisdiction,and as to Esquire because the evidence did not show ithad published the offending article with actual malice.That ruling was affirmed on appeal (ELR 18:4:17), andthe Supreme Court denied McFarlane's cert petition(ELR 18:7:32).

McFarlane's suit against Sheridan Square Presshas suffered a similar fate; it too was dismissed withouttrial, and that ruling too has been affirmed on appeal.Again, the basis for these rulings is that the evidencefailed to show that Sheridan Square published Profits ofWar with actual malice. In an opinion by Judge DouglasGinsburg, the Court of Appeals has thoughtfully and re-spectfully considered McFarlane's argument that a jurycould properly impose liability on Sheridan Square. In

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the end, however, the appellate court was notpersuaded.

McFarlane's "best evidence," Judge Ginsburgsaid, was that Ben-Menashe lacked credibility. But oth-ers, as well as Sheridan Square, had relied on his storyand had verified some of his allegations (though notthose concerning McFarlane). Moreover, Ben-Menashemade the same allegations before the Congressional taskforce as he made in his book, and made them underoath. For this reason, evidence concerning Ben-Menashe's lack of credibility was "not enough to prove,clearly and convincingly, that Sheridan Square publishedProfits of War with actual malice."

McFarlane also argued that actual malice couldhave been found because: Sheridan Square failed to con-tact anyone with first hand knowledge of the allegedevents; had been unable to corroborate the book's alle-gations about McFarlane; should have been aware of

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inconsistencies between Ben-Menashe's story and otherfacts; had been alerted that Ben-Menashe had not beenpresent for a crucial meeting reported in the book; andBen-Menashe had perjured himself in an affidavit sub-mitted to the District Court. But Judge Ginsburg disa-greed. "Each provides little or no additional support fora finding of actual malice," the judge said. And "cumula-tively they do not amount to much, and surely notenough under the standard set by the Supreme Court."

McFarlane v. Sheridan Square Press, 91 F.3d 1501,1996 U.S.App.LEXIS 20452 (D.D.C. 1996) [ELR19:1:9]

California court has personal jurisdiction over NewYork newspaper and columnist to hear defamation

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suit filed by Berry Gordy, federal Court of Appealsholds

A federal District Court in Los Angeles has per-sonal jurisdiction over The Daily News, a New Yorknewspaper, and over columnist George Rush, a NewYork resident, a federal Court of Appeals has held. Theappellate court has reversed a ruling by District JudgeRonald Lew who had dismissed a lawsuit filed againstThe Daily News and Rush by Berry Gordy, the founderof Motown Records, on account of an allegedly defama-tory column written by Rush and published in thenewspaper.

Judge Lew had dismissed Gordy's lawsuit for lackof personal jurisdiction over the newspaper and the col-umnist. But in an opinion by Judge William Canby, theappellate court has ruled that the District Court doeshave jurisdiction over both of them, even though The

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Daily News sells only 18 copies of its papers on Sun-days, and only 13 copies the rest of the week, to sub-scribers in California. This is only 0.0017% of thenewspaper's total circulation, virtually all of the rest ofwhich is to readers who live in or within 300 miles ofNew York City.

Nevertheless, since Gordy has lived in Californiafor 24 years, and most of his friends, family and busi-ness associates do as well, the appellate court concludedthat the effects of Rush's allegedly defamatory column"would clearly be felt in California." Moreover, "byregularly circulating newspapers in California, Rush andthe Daily News purposefully availed themselves of theprivilege of conducting activities in California. Gordy'sclaim arises from those activities." And "The DailyNews and Rush have not made a compelling case thatlitigating in California would be unreasonable."

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The court did not describe the assertions made inthe column, saying that it had "no desire to republish thealleged libel, but it was of a nature that clearly wouldhave a severe impact on Gordy as an individual."

Editor's note: Since the Supreme Court's 1984 de-cisions in the Shirley Jones and Kathy Keeton cases(ELR 5:12:10), courts have had an extremely expansiveview of their personal jurisdiction in defamation cases.While Gordy's case is the most expansive so far, it isjust a small step beyond others in which courts have as-serted personal jurisdiction over publishers and authorsin cases in which less than 0.2% of sales were in theirstate (ELR 18:9:23, 18:6:16).

Gordy v. Daily News, L.P., 95 F.3d 829, 1996U.S.App.LEXIS 23437 (9th Cir. 1996) [ELR 19:1:10]Appellate courts affirm dismissal of RICO and defa-mation lawsuits against ABC, Diane Sawyer and

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others brought by Reverend Robert Tilton andWord of Faith Church, arising out of PrimeTimeLive broadcasts; Supreme Court denies cert in Til-ton's case

In 1991 and 1992, PrimeTime Live broadcast in-vestigative reports about the fund raising practices of theWord of Faith World Outreach Center Church and itsReverend Robert Tilton. The reports were critical ofthose practices, and donations to the Church allegedlydeclined after the reports were aired by ABC.

In response, the Church filed a RICO and civilrights lawsuit against ABC, Sawyer and others in federalcourt in Texas; and Tilton filed a defamation and falselight invasion of privacy action against them in Okla-homa. In due course, both cases were dismissed withouttrials: the Church's suit for failure to state a claim, andTilton's in response to the defendants' motion for

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summary judgment. Both the Church and Tilton ap-pealed; but both rulings have been affirmed on appeal,in separate opinions by separate appellate courts.

In an opinion by Judge Edith Jones, the Fifth Cir-cuit Court of Appeals has affirmed the dismissal of theChurch's lawsuit. With respect to the Church's RICOclaim, the appellate court agreed with the lower court'sconclusion that the facts alleged by the Church in itscomplaint did not assert a violation of the RICO Act,because the complaint did not plead a "continuity ofracketeering activity, or its threat." The Church's civilrights claim was defective, because the statute relied onby the Church (42 U.S.C. section 1985(3)) prohibits ac-tions based only on racial animus, not those based onthe religious animus asserted by the Church.

Tilton's lawsuit had been dismissed on thegrounds that he had failed to prove falsity and actualmalice. (ELR 18:3:10) In his appeal to the Tenth Circuit

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Court of Appeals, he challenged that ruling as well asrulings made in anticipation of trial that excluded pro-posed testimony by Tilton's expert linguist and allowedthe defendants to assert the newsperson's privilege towithhold the identity of confidential sources. In a veryshort ruling by Judge Deanell Tacha, the appellate courtsaid that after a careful review of the record, it adoptedthe analysis of the lower court and affirmed for substan-tially the reasons it had given in its decisions. Tiltonthen sought review by the Supreme Court; but it has de-nied his petition for certiorari.

World of Faith Outreach Center Church v. Sawyer, 90F.3d 118, 1996 U.S.App.LEXIS 19924 (5th Cir. 1996);Tilton v. Capital Cities/ABC, Inc., 938 F.Supp. 748,751, 1995 U.S.Dist.LEXIS 21344, 21341 (N.D.Okl.1995), aff'd, 95 F.3d 32, 1996 U.S.App.LEXIS 22630

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(10th Cir. 1996), cert.den., 117 S.Ct. 947, 1997U.S.LEXIS 730 (1997) [ELR 19:1:11]

NFL Players Association retaliated against one em-ployee, though not against two others, by terminatingher in violation of Title VII

The National Football League Players Associa-tion has been ordered to pay almost $71,000 to ValerieThomas, who once was employed by the NFLPA as asecretary and then a research analyst, because it dis-charged her in 1988 for engaging in legally protectedactivities.

Before she was discharged, Thomas had criticizedthe NFLPA's employment practices, saying it providedtoo few promotional opportunities for blacks andwomen who were members of the union that represented

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the NFLPA's office workers. Such criticism is legallyprotected activity under Title VII. But Judge JamesRobertson found that Thomas was terminated in part be-cause of her criticism. According to Judge Robertson,the NFLPA had failed to satisfy its burden of provingthat Thomas would have been terminated anyway, be-cause the NFLPA had to reduce its staff as a result of acashflow crunch brought on by the 1987 player strike.Thomas had sought more back pay than $71,000, butthat was all Judge Robertson awarded, because theNFLPA proved that Thomas had not used "reasonablediligence" in looking for a new job after she was termi-nated. Moreover, the judge refused to order the NFLPAto reinstate her, because the "acrimony" between herand the NFLPA was so great there was no reason to be-lieve they could have a productive working relationship,and because six years had passed since her termination.

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Two other former NFLPA employees were co-plaintiffs in the case, but Judge Robertson ruled againstthem. While one also was discharged, she had notproved that she had engaged in any protected activitythat led to her discharge. The other resigned, but she didnot prove that she did so because of "intolerable" work-ing conditions that would have caused a reasonable per-son to quit.

Thomas v. National Football League Players Associa-tion, 941 F.Supp. 156, 1996 U.S.Dist.LEXIS 14786(D.D.C. 1996)[ELR 19:1:11]

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Court dismisses suit alleging NFL Players Associa-tion breached duty of fair representation brought byformer Green Bay Packer player, because arbitratorhad not yet ruled on underlying grievance

Sterling Sharpe, once a member of the Green BayPackers, became unable to play after a 1995 surgerywhich he says he was coerced to have by the Packersthemselves. As a result of his disability, the Packers ter-minated his multi-year contract, and did not pay him for1995.

This led Sharpe to initiate an injury grievance, inwhich he was represented by the NFL Players Associa-tion as provided in the league's collective bargainingagreement. For some reason, however, Sharpe and thePlayers Association had a falling out. And even beforethe arbitrator ruled on Sharpe's grievance, Sharpe sued

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the Players Association in federal court, alleging that ithad breached its duty of fair representation.

In response to a Player Association motion, JudgeJune Green has dismissed Sharpe's lawsuit. The judgedid so, because the case was premature. "Before theCourt can entertain [Sharpe's] claim against the PlayersAssociation," Judge Green explained, Sharpe "must re-ceive, at least, an adverse decision from an arbitrator onhis claim against the Packers."

Sharpe v. National Football League Players Associa-tion, 941 F.Supp. 8, 1996 U.S.Dist.LEXIS 15394(D.D.C. 1996) [ELR 19:1:12]

College athlete wins injunction requiring Northwest-ern University to permit him to play basketball,

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despite risk of heart attack, under federal Rehabili-tation Act

Nicholas Knapp enrolled at Northwestern Univer-sity in the fall of 1995 on a basketball scholarship, want-ing and intending to play, even though the year beforehis heart had stopped and he collapsed following a gamein his high school gym. Northwestern's team doctor con-cluded that Knapp was not medically eligible to play in-tercollegiate basketball, even taking into account thatKnapp had been fitted with an automatic cardioverterdefibrillator which is designed to restart his heart if itstops again.

Knapp was not pleased by the doctor's concernfor his life, and filed a lawsuit against Northwestern un-der the Rehabilitation Act - a federal law that prohibitscolleges (and others) from discriminating against

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"otherwise qualified" individuals on account of theirdisabilities.

Judge James Zagel has ruled in Knapp's favor,finding that Knapp satisfied all of the elements requiredunder the Act. Thus the judge has issued an injunctionrequiring Northwestern to allow Knapp to play intercol-legiate basketball.

The judge explicitly declined to say "whetherNorthwestern can require Knapp or potential survivorsto sign a waiver of liability" before playing again,though the judge said the University may have the legalright to require a release.

Knapp v. Northwestern University, 942 F.Supp. 1191,1996 U.S.Dist.LEXIS 20260 (N.D.Ill. 1996) [ELR19:1:12]

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NCAA wins reversal of injunctions that had barredit from enforcing its "five-year rule" in cases filedby ineligible college football players

In a pair of unrelated though similar lawsuits, theNCAA has prevailed on appeal in cases filed by collegefootball players who had become ineligible under theNCAA's "five-year rule."

In one case, a Louisiana state court had issued aninjunction against the NCAA, barring it from enforcingthe rule against John Michael Jones, a student-athlete atan unidentified college. In a very short Per Curiam deci-sion, the Louisiana Supreme Court vacated the injunc-tion. In the other case, a Florida state court had issuedan injunction barring the NCAA from enforcing the ruleagainst Kevin Brinkworth, a student-athlete at the Uni-versity of Miami. The Florida Court of Appeal reversedthat injunction, in a decision by Judge Cope.

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Though each court applied the law of its ownstate, the legal principles are the same, so both decisionswere based on virtually identical reasoning. Both courtsruled that the NCAA is a private association whose af-fairs courts should not interfere with unless the associa-tion acted arbitrarily or in bad faith. Both courtsconcluded that the complaining players had not shownthat the NCAA's rule or procedures for enforcing it werearbitrary or administered in bad faith.

Jones v. National Collegiate Athletic Ass'n, 679 So.2d381, 1996 La.LEXIS 2263 (La. 1996); National Colle-giate Athletic Ass'n v. Brinkworth, 680 So.2d 1081,1996 Fla.App.LEXIS 10395 (Fla.App. 1996) [ELR19:1:12]

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Court refuses to enjoin high school athletic associa-tion from enforcing "transfer rule" against studentwho transferred from public to parochial school forreligious reasons

A federal court has denied a request for a prelimi-nary injunction made on behalf of Paige Robbins, a highschool student who became ineligible to play varsityvolleyball when she transferred from one school to an-other. Robbins transferred from public to parochialschool after converting to Catholicism. Under the Indi-ana High School Athletic Association "transfer rule,"she was ineligible for a year, and the Association deniedher request for immediate eligibility.

The court said that it "would like to allow Rob-bins to play varsity volleyball" because it was "clear thatshe did not transfer to her new school for athletic rea-sons." But the court ruled that the transfer rule did not

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unduly burden the free exercise of religion, nor was itirrational or enacted for the purpose of interfering withreligiously motivated transfers. As a result, the rule doesnot violate the Equal Protection clause, the courtconcluded.

Robbins v. Indiana High School Athletic Ass'n, 941F.Supp. 786, 1996 U.S.Dist.LEXIS 18827 (S.D.Ind.1996) [ELR 19:1:13]

Appellate court revises opinion in case involving ath-letic association's right to sanction high school forpermitting student to play under court order

The Michigan High School Athletic Associationhas an assortment of eligibility rules, as well as a rulethat permits the Association to sanction schools that

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allow ineligible students to participate. Under the Asso-ciation's sanction rule, a school may be sanctioned evenif it permitted an ineligible student to play pursuant to acourt order, if later that court order is voluntarily va-cated, stayed, reversed, found by the court to have beennot justified, or expires.

This of course puts schools in an impossible posi-tion: if they obey a court order that is later vacated, etc.,it may be sanctioned by the Association; and if it ignoresthe court order, it may be held in contempt. For this rea-son, the Sixth Circuit Court of Appeals earlier ruled thatthe Association could not sanction the Ann Arbor HuronHigh School District for complying with a preliminaryinjunction that required the District to permit a studentto play basketball despite being ineligible under the As-sociation's "eight semester" rule, even though the injunc-tion was vacated as "moot" after the student graduated.(ELR 18:6:15)

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However, in response to the Association's petitionfor rehearing, the court has stricken its earlier opinionentirely, and has issued a new opinion in its place. In thecourt's new decision - written by Judge James Oakes, aswas the earlier one - the court again vacates the prelimi-nary injunction because it is moot. But now the courthas held that the Association's rule permitting it to sanc-tion the School District does not apply to this case, be-cause the injunction was not "voluntarily vacated," norwas it stayed, reversed, found not to have been justifiedor expired.

Editor's note: The ultimate result in this case ap-pears the same. The School District is protected fromsanctions by the Association; the basis of that protectionis simply different. The District's protection comes notby court order (as it had earlier), but instead from a judi-cial interpretation of the Association's own rules.

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McPherson v. Michigan High School Athletic Ass'n, 90F.3d 124, 1996 U.S.App.LEXIS 17457 (6th Cir. 1996)[ELR 19:1:13]

Federal appellate court vacates FCC ruling that per-mitted TV stations to restrict campaign ads portray-ing material that may be harmful to children totimes of day when children are less likely to bewatching

On many issues, the Federal CommunicationsCommission is caught between a rock and a hard place.One such issue is what, if anything, the FCC can do toprotect children from programming that may be psycho-logically harmful for them to see. In one recent case, theFCC was put in this place by an unlikely candidate - notin other words by one of the Commission's previous

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adversaries like Howard Stern (ELR 17:7:19) or AlGoldstein (ELR 18:3:3). Instead, the FCC's latest di-lemma was brought on by a candidate for federal officenamed Daniel Becker, an anti-abortion activist.

Becker's anti-abortion views were so central tohis campaign to become a Congressman from Georgiathat his television ads featured photographs of abortedfetuses. When one of these ads was aired by an Atlantastation at 7:58 p.m., the station "received numerouscomplaints from viewers." In response, the stationsought a declaratory ruling from the FCC that it could"channel" an ad by a federal candidate to "a safe harborwhen children are not generally present in the audience"if the ad contained material "unsuitable for children."

In due course, the FCC issued such a ruling, andBecker appealed to the federal Court of Appeals inWashington, D.C. Now, in a ruling by Judge JamesBuckley, that court has ruled in Becker's favor and

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against the FCC. The court has held that the FCC's rul-ing violates two provisions of the federal Communica-tions Act.

One of these provisions is Section 312(a)(7)which requires broadcasters to provide federal candi-dates with "reasonable access" to the airwaves. JudgeBuckley reasoned that the FCC ruling would deny suchaccess "by permitting content-based channeling of non-indecent political advertisements."

The other provision is Section 315(a) which re-quires broadcasters to give federal candidates "equal op-portunities" to be on the air and which specifies thatbroadcasters "shall have no power of censorship overthe material broadcast." The FCC ruling violated thisprovision because it would permit broadcasters "to re-view political advertisements and to discriminate againstcandidates on the basis of their content," the appellatecourt held.

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As a result, the Court of Appeals has vacated theFCC's declaratory ruling, and broadcasters are no longerpermitted to channel political ads, even to protect chil-dren who are likely to be in the audience.

Becker v. Federal Communications Commission, 95F.3d 75, 1996 U.S.App.LEXIS 24105 (D.C.Cir. 1996)[ELR 19:1:13]

Constitutionality of several provisions of Cable TVActs of 1984 and 1992 are upheld by federal Courtof Appeals; court rejects contention of Time Warnerand others that provisions violate First Amendment

Government regulation of cable television has be-come a legal specialty of its own - so numerous andcomplex are its parts. Congress has enacted two major

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statutes in the area: the Cable Communications PolicyAct of 1984 and the Cable Television Consumer Protec-tion and Competition Act of 1992. Some sections ofthese Acts required the Federal Communications Com-mission to adopt regulations implementing their provi-sions, and the FCC has done so.

As is true of all types of regulation, those regu-lated have felt the pinch of these two statutes, and sev-eral lawsuits have been filed attacking theconstitutionality of sections of both of the Acts and theFCC's implementing regulations. Earlier this year, theUnited States Supreme Court upheld the constitutional-ity of one particularly controversial provision of the1992 Act: the "must carry" rules which require cablesystems to carry the over-the-air signals of local televi-sion stations. (ELR 18:12:7)

In a separately-litigated case, Time Warner Enter-tainment, Discovery Communications and the Learning

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Channel challenged several other provisions of the 1984and 1992 Acts. They enjoyed some, though not com-plete, success at the federal District Court level whenJudge Thomas Jackson ruled that three of the challengedprovisions violated the First Amendment. (ELR 16:2:28)But neither the challengers nor the Government weresatisfied with that result, and both appealed. At the ap-pellate level, the Government has emerged completelyvictorious; Time Warner and its fellow challengers lostwhat little they had gained below.

In a lengthy Per Curiam decision by Judges JamesBuckley, Raymond Randolph and David Tatel, theCourt of Appeals for the D.C. Circuit has upheld theconstitutionality of two provisions of the 1984 Act - onerequiring cable systems to lease channels to unaffiliatedprogrammers, and another requiring cable systems toprovide access to other channels for public, educationaland governmental programming.

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The appellate court also upheld the constitutional-ity of six provisions of the 1992 Act - those (1) requiringthe FCC to regulate cable rates, (2) permitting liabilityto be imposed on cable systems for obscene materialcarried on access channels (while giving cable systemsthe authority to refuse to carry obscene programming),(3) requiring cable systems to give subscribers advancenotice concerning free previews of premium channelsthat show movies rated X, NC-17 or R, (4) requiring theFCC to issue regulations prohibiting vertically integratedcable companies from discriminating between program-ming suppliers, (5) insulating municipal governmentsfrom monetary damages in connection with their fran-chising decisions, and (6) requiring direct broadcast sat-ellite services to set aside some of their channels fornoncommercial educational or informationalprogramming.

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Time Warner Entertainment v. Federal Communica-tions Commission, 93 F.3d 957, 1996 U.S.App.LEXIS22387 (D.C.Cir. 1996), rehearing denied, 105 F.3d 723,1997 U.S.App.LEXIS 2016 (D.C.Cir. 1997) [ELR19:1:14]

Mail fraud convictions based on distribution of art-works falsely attributed to Chagall, Dali, Miro andPicasso, are affirmed on appeal

Leon Amiel would have been proud, at least atfirst. After the "prominent" art publisher passed away in1988, his wife and brother continued to run his business;and later, his daughters and granddaughter took charge.

Somewhere along the line, however, the Amielfamily crossed the over the line of illegality. It may havehappened early, because before his death, the

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government was investigating Leon for circulatingfraudulent prints. By 1991, the investigation focused onhis daughters and granddaughter, and in 1992 they wereindicted and charged with mail fraud and conspiracy.

The charge was based on the government's con-tention that the Amiels had distributed artworks fraudu-lently attributed to Chagall, Dali, Miro and Picasso andfalsely represented to be signed by those artists. A trialresulted in their convictions, and those convictions havebeen affirmed on appeal.

In a decision by Judge Fred Parker, the appellatecourt has rejected the Amiels' assertions that the evi-dence against them was insufficient, that the governmenthad improperly failed to disclose that two governmentwitnesses were connected to organized crime, that theyhad been subject to double jeopardy because of an ear-lier civil forfeiture proceeding, and that the trial judge

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had made prejudicial comments about defense counselin front of the jury.

United States v. Amiel, 95 F.3d 135, 1996 U.S.App.LEXIS 23274 (2d Cir. 1996) [ELR 19:1:15]

Seller of painting breached warranty of authenticitybecause gallery and auctioneer had expresseddoubts, so buyer was entitled to recover price hewould have received in aborted resale

Werner Siebenmann breached a written warrantyof authenticity he gave to David Rogath in connectionwith Rogath's purchase from Siebenmann of a paintingthat was supposed to be a self portrait by English artistFrancis Bacon. District Judge Deborah Batts has soruled in a case brought against Siebenmann by Rogath

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to recover $950,000 Rogath refunded to his customerwhen a resale of the painting was aborted because Ro-gath's customer was told (by others) that the paintingwas not authentic.

The judge found that Siebenmann breached hiswarranty that he had "no knowledge of any challenge to. . . [the] authenticity of the Painting," because before hesold the painting to Rogath for $570,000, both the Marl-borough Fine Art Gallery and Southeby's told Sieben-mann they questioned its authenticity. To prevent a"duplicative recovery," Rogath must return the paintingto Siebenmann.

Rogath v. Siebenmann, 941 F.Supp. 416, 1996U.S.Dist.LEXIS 14339 (S.D.N.Y. 1996) [ELR 19:1:15]

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Appellate court affirms dismissal of civil rights suitagainst television station that videotaped policesearch of plaintiffs' home

St. Louis television station KSDK has won a civilrights action filed against it by the occupants of a homethe station had videotaped while it was being searchedby police. The action was brought under 42 U.S.C. sec-tion 1983 which punishes those who deprive others oftheir constitutional rights while acting "under color ofstate law."

In a brief opinion by Judge Morris Sheppard Ar-nold, a majority of a federal Court of Appeals has af-firmed the dismissal of the lawsuit against the station,ruling that KSDK had acted independently of the policein deciding to enter the house and videotape the search,and thus the station was not acting under state law.Judge James Rosenbaum dissented on the grounds that

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the station's news crew went to the house with the po-lice and could not have entered it if the police had notdone so first.

Parker v. Boyer, 93 F.3d 445, 1996 U.S.App.LEXIS20458 (8th Cir. 1996) [ELR 19:1:15]

Investigator working for promoter ofHolmes/McCall fight misplaced tape recordings ofhis observations, but court denies sanctions re-quested by restaurant and bar owners sued by pro-moter for allegedly unlicensed interception anddisplay of TV broadcast of fight

The April 1995 Holmes/McCall fight was tele-vised, and the fight's promoter encouraged restaurantand bar owners to show it to their patrons, in return for a

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license fee. Several restaurant and bar owners in NewJersey allegedly did so, but without a license, and weresued by the promoter as a consequence under 47 U.S.C.section 605.

During discovery, the defendants learned that thepromoter's investigator dictated his observations on amicro-recorder, transcribed them later, and then reusedor misplaced the tapes. The defendants claimed that thisamounted to "spoliation" of evidence, and they soughtdismissal of the case or other sanctions.

Judge Nicholas Politan has denied the defendants'motion however, because there was no evidence thetapes had been intentionally destroyed and because theinvestigator and his transcribed notes were both avail-able. The most remarkable thing about Judge Politan'sopinion is that it is written entirely as a poem.

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Joe Hand Promotions v. Sports Page Cafe, Inc., 940F.Supp. 102, 1996 U.S.Dist.LEXIS 11915 (D.N.J.1996) [ELR 19:1:16]

DEPARTMENTS

Letter to the editor:

Second and Ninth Circuits agree that CopyrightAct's three-year statute of limitations applies toclaims of co-ownership

The discussion regarding denial of certiorari inthe "Hooked on Phonics" case (ELR 18:12:19) mis-aligns the Second Circuit with the Fifth Circuit as apply-ing state law to determine the applicable limitationsperiod governing claims of copyright co-ownership. InMerchant v. Levy, 92 F.3d 51 (2d Cir. 1996), cert.

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denied, 117 S.Ct. 943 (1997), the Second Circuit re-cently held that plaintiffs' claims of co-ownership ofcopyright in a musical composition were barred by thethree-year statute of limitations contained in section507(b) of the Copyright Act. Merchant thus brings theSecond Circuit into conformity with the Ninth Circuit'sdecision in Zuill v. Shanahan, 80 F.3d 1336 (9th Cir.1996).

Very truly yours,Eric P. BergnerMoses & Singer LLPNew York City

Editor's note: Mr. Bergner is absolutely correct. SeeELR 19:1:6 (above) for a discussion of Merchant and acomment on the earlier Second Circuit decision that un-til Merchant appeared to align that circuit with the Fifth.[ELR 19:1:17]

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In the Law Reviews:

Comm/Ent, Hastings Communications and Entertain-ment Law Journal, has published Volume 19, Number 2with the following articles:

Blood Money: When Media Expose Others to Risk ofBodily Harm by Sandra Davidson, 19 Comm/Ent, Hast-ings Communications and Entertainment Law Journal225 (1997)

Making the World Wide Web Safe for Democracy: AMedium-Specific First Amendment Analysis by AndrewChin, 19 Comm/Ent, Hastings Communications and En-tertainment Law Journal 309 (1997)

Access to Premises and Easements: Can the Cable Op-erator Come In? by Philip Kantor, 19 Comm/Ent,

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Hastings Communications and Entertainment Law Jour-nal 431 (1997)

Rating the Net by Jonathan Weinberg, 19 Comm/Ent,Hastings Communications and Entertainment Law Jour-nal 453 (1997)

Ball Four: The IRS Walks the Kansas City Royals byMyreon Sony Hodur, 19 Comm/Ent, Hastings Commu-nications and Entertainment Law Journal 483 (1997)

Seeing Beyond the Smoke and Mirrors: A Proposal forthe Abandonment of the Commercial Speech Doctrineand An Analysis of Recent Tobacco Advertising Regu-lations by Scott Joachim, 19 Comm/Ent, Hastings Com-munications and Entertainment Law Journal 517 (1997)

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Entertainment and Sports Lawyer, published by theAmerican Bar Association Forum on the Entertainmentand Sports Industries, 750 North Lake Shore Drive,Chicago, Illinois 60611-4497, has published Volume 15,Number 1 with the following articles:

The Lone Arranger: Have the Courts Unfairly SingledOut Musical Arrangements by Denying Them Protectionas Derivative Works? by Jeffrey Brandstetter, 15 Enter-tainment and Sports Lawyer 1 (1997) (for address, seeabove)

An Athlete's Primer: Image Development, Protectionand Preservation by Shane T. Johnson, 15 Entertainmentand Sports Lawyer 3 (1997) (for address, see above)

Cardtoons, L.C. v. Major League Baseball Players As-sociation: The "Bonding" Effect of Parody by Mark T.

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Gould, 15 Entertainment and Sports Lawyer 8 (1997)(for address, see above)

Book Review: Online Law: The Software PublishersAssociation's Legal Guide to Doing Business on the In-ternet, edited by Thomas J. Smedinghoff, reviewed byRobert L. Siegel, 15 Entertainment and Sports Lawyer11 (1997) (for address, see above)

The Entertainment Law Review, published by Sweet &Maxwell, Cheriton House, North Way, Andover, HantsSP10 5BE, England, has issued Volume 8, Issue 3 withthe following articles:

The European Convention on Cinematographic Co-productions: Towards a Single Entertainment Market inEurope by Giovanni A. Pedde, 8 Entertainment Law Re-view 79 (1997) (for address, see above)

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Look Before You Leap: Copyright Warranties of Titleby Jonathan Radcliffe and Peter Price, 8 EntertainmentLaw Review 83 (1997) (for address, see above)

Pornography and Freedom of Speech by Nadine Gour-gey, 8 Entertainment Law Review 89 (1997) (for ad-dress, see above)

Impediments and Opportunities for Investment in Rus-sian Broadcasting-The Licensing System by Marian M.Hagler, 8 Entertainment Law Review 94 (1997) (for ad-dress, see above)

The Geneva Diplomatic Conference on Copyright andthe Rights of Performers and Phonogram Producers byMario Fabiani, 8 Entertainment Law Review 98 (1997)(for address, see above)

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Right of Publicity in Finland by Jukka V. Muhonen, 8Entertainment Law Review 103 (1997) (for address, seeabove)

The CFI's Vision of European Broadcasting by John En-ser, 8 Entertainment Law Review 105 (1997) (for ad-dress, see above)

Retroactive Copyright Protection for Music Recordings:Japanese versus American Style by Lionel S. Sobel, 8Entertainment Law Review 108 (1997) (for address, seeabove)

Communications and the Law, published by Fred B.Rothman & Co., 10368 W. Centennial Road, Littleton,CO 80127, has issued Volume 19, Number 1 with thefollowing articles:

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Opening the Doors to Juvenile Court: Is There anEmerging Right of Public Access? by Thomas A.Hughes, 19 Communications and the Law 1 (1997) (foraddress, see above)

Pirone v. Macmillan Inc.: Trying to Protect the Nameand Likeness of a Deceased Celebrity Under TrademarkLaw and Right of Publicity by Sharlene A. McAvoy, 19Communications and the Law 51 (1997) (for address,see above)

False Light Privacy by Deckle McLean, 19 Communica-tions and the Law 63 (1997) (for address, see above)

Book Review: Henry M. Christman, The Kingfish andthe Constitution by Richard C. Cortner, 19 Communica-tions and the Law 81 (1997) (for address, see above)

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Book Review: Andrew J. Siegel, Selling the Air: A Cri-tique of the Policy of Commercial Broadcasting in theUnited States by Thomas Streeter, 19 Communicationsand the Law 87 (1997) (for address, see above)

The Effect of Fogerty v. Fantasy on the Award of Attor-ney's Fees in Copyright Disputes by Douglas Y'Barbo, 5Texas Intellectual Property Law Journal 231 (1997)

Recent Developments in Trademark Law by Dana Wil-son Easley, 5 Texas Intellectual Property Law Journal273 (1997)

Recent Copyright Case Law Developments by Jeff A.McDaniel, 5 Texas Intellectual Property Law Journal293 (1997)

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The Piracy Gap: Protecting Intellectual Property in anEra of Artistic Creativity and Technological Change bySherri L. Burr, 33 Willamette Law Review 245 (1997)

Regulation of Intellectual Property Rights Used in theVideo Games Industry-Is Reform Necessary? by MarkJ. Wright, 18 Business Law Review 8 (1997) (publishedby Kluwer Law International, Sterling House, 66 WiltonRoad, London SW1V 1DE, UK)

Rethinking the Compatibility of Moral Rights and FairUse by Dane S. Ciolino, 54 Washington and Lee LawReview 33 (1997)

Zombie Copyrights: Copyright Restoration Under theNew Section 104A of the Copyright Act by Adam P.Segal, Santa Clara Computer and High Technology LawJournal 71 (1997)

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Domain Names, the Internet, and Trademarks: Infringe-ment in Cyberspace by Gayle Weiswasser, Santa ClaraComputer and High Technology Law Journal 137(1997)

What Licensors Should Know About Protecting "Fa-mous Marks" in the United States by William Hen-nessey, 17 The Licensing Journal 1 (1997) (published byGB Enterprises, PO Box 1169, Stamford, CT06904-1169)

Naked Licenses: Will Your Trademark Agreement Getan `X' Rating? by Jeffrey E. Young, 17 The LicensingJournal 1 (1997) (for address, see above)

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International Licensing: Strategies for the Global Mar-ketplace by Lanning G. Bryer, 17 The Licensing Journal6 (1997) (for address, see above)

Is the Green-Eyed Monster Sore or Can Color ReallyBe Trademarked Under the Lanham Act: Qualitex Co.v. Jacobson Products Co., Inc. by Juanita J. Webber, 21Thurgood Marshall Law Review 425 (1996)

The John Marshall Journal of Computer & InformationLaw: An International Law Journal on InformationTechnology has published Volume 15, Number 3 as aDomain Name Symposium with the following articles:

Blackhole in Cyberspace: The Legal Void in the Internet by Alexander Gigante, 15 The John Marshall Journal ofComputer & Information Law 413 (1997)

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Remedies in Domain Name Lawsuits: How Is a DomainName Like a Cow? by Carl Oppedahl, 15 The JohnMarshall Journal of Computer & Information Law 437(1997)

A Primer on Trademark Law and Internet Addresses byDavid J. Loundy, 15 The John Marshall Journal ofComputer & Information Law 465 (1997)

An Island in the Net: Domain Naming and English Ad-ministrative Law by Mark Gould, 15 The John MarshallJournal of Computer & Information Law 493 (1997)

Orderly Expansion of the International Top-Level Do-mains: Concurrent Trademark Users Need a Way Out ofthe Internet Trademark Quagmire by David B. Nash, 15The John Marshall Journal of Computer & InformationLaw 521 (1997)

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The Federal Government Giveth and Taketh Away:How NSI's Domain Name Dispute Policy (Revision 02)Usurps a Domain Name Owner's Fifth Amendment Pro-cedural Due Process by Steven A. McAuley, 15 TheJohn Marshall Journal of Computer & Information Law547 (1997)

From the Internet to Court: Exercising Jurisdiction overWorld Wide Web Communications by Gwenn M. Ka-low, 65 Fordham Law Review 2241 (1997)A Fear of Commitment: The Supreme Court's Refusal toPronounce a First Amendment Standard for Cable Tele-vision in Denver Area Educational TelecommunicationsConsortium, Inc. v. FCC, 71 St. John's Law Review 173(1997)

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Indecent Proposals: How Each Branch of the FederalGovernment Overstepped Its Institutional Authority inthe Development of Internet Obscenity Law by Sean J.Petrie, February Stanford Law Review 637 (1997)

When Should Computer Owners Be Liable for Copy-right Infringement by Users? by R. Carter Kirkwood, 64The University of Chicago Law Review 709 (1997)

Copyright Law on the Information Superhighway: ACritical Analysis of the Proposed Amendments to theCopyright Act, 7 Regent University Law Review 261(1996)

No Team, No Peace: Franchise Free Agency in the Na-tional Football League by Katherine C. Leone, 97 Co-lumbia Law Review 473 (1997)

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Gender Equity, College Sports, Title IX and GroupRights: A Coach's View by Michael Straubel, 62 Brook-lyn Law Review 1039 (1996)

Brown v. Pro Football, Inc.: Pulling a Tarp of AntitrustImmunity Over the Entire Playing Field and Leaving theGame by Jonathan P. Heyl, 75 North Carolina Law Re-view 1030 (1997)

The Opportunity to Play Ball: Title IX, University Com-pliance, and Equal Pay by Rikki Ades, 13 New YorkLaw School Journal of Human Rights 347 (1997)

Buy Me Some Peanuts and Ownership: Major LeagueBaseball and the Need for Employee Ownership byRussell M. Yankwitt, 5 Cornell Journal of Law andPublic Policy 401 (1996)

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Random Drug Testing of High School Athletes in NewJersey after Vernonia School District 47J v. Acton-WillActon Make the Cut? by Laura M. Bergamini, 49 Rut-gers Law Review 551 (1997)

Princeton University Press v. Michigan Document Serv-ices, Inc.: The Sixth Circuit Frustrates the ConstitutionalPurpose of Copyright and Fair Use Doctrine by Amy E.Groves, 31 Georgia Law Review 325 (1996)

An Examination of China's Emerging Intellectual Prop-erty Regime: Historical Underpinnings, the Current Sys-tem and Prospects for the Future by Geoffrey T.Willard, 6 Indiana International & Comparative LawReview 411 (1996)

Evaluation of the Sino-American Intellectual PropertyAgreements: A Judicial Approach to Solving the Local

ENTERTAINMENT LAW REPORTER

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Page 90: Band leader Artie Shaw loses lawsuit seeking share ...elr.carolon.net/BI/v19n01.pdf · The film was, however, an artistic success. In 1987, "Artie Shaw-Time Is All You've Got" won

Protectionism Problem by Yiqiang Li, 10 ColumbiaJournal of Asian Law 391 (1996)

Recent Changes in Russian Intellectual Property Lawand Their Effect Upon the Protection of IntellectualProperty Rights in Russia by Andrei A. Baev, 19 Suf-folk Transnational Law Review 361 (1996)

The Trade Practices Act, Equity and Professional Sport:News Limited and Ors v Australian Rugby FootballLeague Limited and Ors by Damien Hazard, 19 TheSydney Law Review 95 (1997)[ELR 19:1:17]

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