Motion Picture Herald (1954)

Court Frees Republic on Films for #1 WASHINGTON : The Supreme Court Monday in effect gave Republic Pictures the right to license old Gene Autry and Roy Rogers films to television as the company sees fit. The Court said it would not hear appeals by the two cowboy stars from a Ninth Circuit Court of Appeals ruling which gave Republic this right. The stars had sought to bar the film company from licensing their old films to television against their wishes. The justices did not indicate their reasons for refusing to hear the case, merely noting the decision not to hear it on a long list of orders handed down at noon. The Court’s action today could have important ramifications in encouraging other film companies to make similar efforts to sell old films to television. Actually two separate cases are involved, with the issues differing slightly in the two suits. The District Court had found for Rogers but against Mr. Autry, while the Circuit Court found against both. Some 81 Roy Rogers films and some 57 Gene Autry features are at issue. Mr. Rogers contended that his contract with Republic specifically reserved to him all rights for commercial exploitation of his films, and that his films could not be sold to television without his consent. The Circuit Court had ruled that these rights were limited to his name, picture and voice outside of the films, but that Republic had complete title to the use of his name, picture and voice in the films and could therefore freely license the films to television. Mr. Rogers said his case would be a test case for many similar contracts between stars and film companies. He said the pictures might be used to indicate that the star was endorsing liquor, cigarettes or some other product which might damage the star, and that the star should have the right to veto such arrangements. Mr. Autry said he did not dispute Republic’s right to license his films for television but that he did challenge the company’s right to use or license his name, voice or likeness for commercial advertising. He pointed out that the Circuit Court had declared that Republic could not make it appear that Mr. Autry actually endorsed a specific product, and said that such a vague ruling, without the details spelled out, would force him to police the actions of Republic on television stations throughout the country and bring many actions in many different courts, with possibly different results. Opens Coast PR Office HOLLYWOOD: Frank McFadden, former publicity director of Panoramic Productions, has announced the establishment of an independent public relations office, with James Eddy, former director of public relations of J. Walter Thompson. MOTION PICTURE HERALD, OCTOBER 23, 1954 Indiana Cannot Tax Out-of-State Receipts WASHINGTON : The Supreme Court this week sustained an Indiana Supreme Court decision that the state cannot tax film exchanges in other states on rentals received from Indiana exhibitors. The State of Indiana attempted to levy its gross income tax on film rental income received by the Chicago exchange of Warner Brothers Pictures from exhibitors in Northern Indiana. The State Supreme Court ruled in favor of Warners, and the state appealed to the High Court. The Justices said they would not hear the appeal, leaving the State Supreme Court decision stand. No reason was given for the high court’s action. Will Rerietr ASS Case WASHINGTON: The Supreme Court last week agreed to review the action of a lower court which threw out the suit of Charles Lawler and Mitchell Pantzer, trading as Independent Poster Exchange, against National Screen Service and eight major distributors. The Third Circuit Court rejected the suit and the partners’ appeal to the high court resulted in last week’s decision. Independent Poster Exchange charged NSS with a monopoly in the poster and trailer field, and declared that the major distributors aided NSS in maintaining this monopoly. The Philadelphia District Court and the circuit court threw out the case, holding that the suit was barred by reason of the fact that a similar, earlier suit had been dismissed after the parties worked out a settlement. The courts said the matter had therefore been adjudicated once and could not be the subject of a second suit. Argument in the appeal will be heard later in the current term of the high court. Decision is not looked for before the end of the present year or early in 1955. Forms Company to Handle German-Austrian Films The formation of United German Film Enterprises, Inc., to look after the American interests of a number of German and Austrian production, distribution and export companies, has been announced by Munio Podhorzer, president of the firm which has offices at 1564 Broadway, New York City. The company will seek distribution deals for outstanding German box office attractions and negotiate for co-production agreements between German and American interests in both the theatrical and TV fields, among other functions. Mr. Podhorzer said the German and Austrian industries now are reaching a peak of production activity with a total of 115 films produced in the two countries annually. The company also will issue a news letter detailing the week-toweek happenings in the German-Austrian production, distribution and exhibition fields, Mr. Podhorzer said. High Court II ill Recitle Ramage Tax WASHINGTON : The Supreme Court this week agreed to hear an appeal on the question of whether exhibitors who win punitive damages in private anti-trust suits must pay federal income taxes on those damages. At the same time, the High Court refused to review a lower court decision throwing out an anti-trust suit brought by a Pennsylvania exhibitor — F. E. Harrision — against the major distributors. Mr. Harrison, owner of the Bryn Mawr theatre in suburban Philadelphia, sued the eight distributors, Warner Brothers Circuit Management Corp. and Stanley Co. of America. The Third Circuit Court of Appeals threw out the suit and Mr. Harrison appealed to the High Court. The justices gave no reason for their refusal to hear the case, merely noting their decision on a long list of orders. The question of taxing punitive damage awards is posed by the Government’s appeal from a decision of the Third Circuit Court that William Goldman theatres was not taxable on such damages. Mr. Goldman won an anti-trust suit against Warner Theatres and the major distributors, and was awarded $125,000 damages, trebled to $375,000. He admitted that the first $125,000 represented lost profits and was taxable, but maintained that the remaining $250,000 was not taxable. The Internal Revenue service took the matter to court, arguing that the entire amount was taxable, but the Tax Court and the Third Circuit Court ruled against the Government and for Mr. Goldman. The lower courts based their action on a previous Supreme Court decision to the effect that taxable income consists only of “gain derived from capital or labor or both combined.” They said punitive damages did not come in this category and therefore were not taxable. In appealing the case to the Supreme Court, the Justice Department said other cases involving other industries have been decided differently in other lower courts and that the problem was of sufficient importance for the Supreme Court to have its say on the matter. The High Court agreed and took the case. Record Billings Result In UA "Benjamin" Drive The highest weekly billings ever recorded by United Artists during a sustained period have been noted during the first six weeks of its Robert S. Benjamin Drive, the company said this week. The billings have been amounting to, on an average, $744,000 per week. Totals for the sixth week alone exceed $1,000,000. B. G. Kranze, co-captain of the drive, and general sales manager, already has congratulated his sales force. The drive will award $50,000 in prizes. Mr. Benjamin is chairman of the board of directors of United Artists. 17