Motion Picture News (Mar-Apr 1923)

1152 Motion Picture News Goldwyn Loses Suit On Infringement Court Rules Licensee of Copyright Can Not Institute A Suit for An Injunction AN important decision to the motion picture industry' was rendered by the United States Circuit Court of Appeals for the Southern District of New York on Tuesday, January 30th, in the case of Goldwyn Pictures Corp. vs. Howells Sales Co., Inc., to the effect that in some cases party who owns the sole and exclusive motion pictare rights to a literary work cannot sue under the copyright laws to prevent an infringement thereof. The case arose in the following way: Howells Sales Co. purchased abroad the picture, "Vendetta," starring Pola Negri, which was shown at the Strand theatre, New York City, in December, 1921. About the time of the showing the Goldwyn Pictures Corp. finished a picture starring Tom Moore based upon the story, "Mr. Barnes of New York," of which they owned the sole and exclusive motion picture rights, and sought an injunction. The Howells Sales Co. claimed they were innocent parties in the matter and did not know the story was based or had any similarity to the story, "Mr. Barnes of New York. An injunction was obtained by the Goldwyn Pictures Corp. and on appeal the Howells Sales Co., through their attorneys, Stuart M. Kohn, Charles Tuttle and Charles Katzenstein, raised the novel point that even though Goldwyn Pictures Corp. owned the sole and exclusive motion picture rights to the picture, that they were a mere licensee and therefore could not stop an infringement. The Court sustained this point and vacated the injunction, and added thereto that the only person who could obtain an injunction to prevent an infringement was the copyright proprietor. Goldwyn then joined Stephens, who was the owner of the copyright to the book, with them and obtained a second injunction. Practically they buy the sole and exclusive motion picture rights from an author and pay him for it, that nothing further was to be done and the}7 could prevent an infringement. Unless the purchaser becomes the proprietor of the copyright he may not alone maintain an action to prevent an infringement of the motion picture produced. The attorneys for Howells claim that there is a serious question which was not decided in this decision, whether or not the author of a story or the copyright proprietor of the book having sold the exclusive motion picture rights to another, can thereafter maintain an action to prevent the infringement of the motion picture produced under those rights. Canada Exchanges Enforce C.O.D. Clause Twelve important exchanges in Canada, members of the Canadian Motion Picture Distributors' Association, have decided to enforce strictly the C. 0. D. clause in all contracts with exhibitors in Canada. This action, which has created wide discussion in moving picture circles in the Dominion, was taken after a number of the Canadian releasing companies had sustained rather serious losses through non-payment of rentals by exhibitors, it was officially stated. A circular advising all exhibitors in the country that the C. 0. D. rule on film shipments is to be enforced was recently sent out in behalf of the 12 companies, the circular being signed by Arthur Cohen, of Toronto, president, and John A. Cooper, Toronto, secretary7 of the association. The companies which have decided to demand payment for films on delivery include the following: Associated First National, Can the same points were raised in the second ease adian Educational Films, Ltd., Canadian Ex by the attorneys for Howells with the addition that this second injunction could not stand inasmuch as Stephen had assigned all of his rights to damages for an infringement to Goldwyn. The Circuit Court of Appeals in its decision rendered on January 30th, vacated the injunction and dismissed the complaint against Howells, again stating that Goldwyn as a licensee could not bring the suit, and adding Stephens did no good inasmuch as he had assigned all of his rights to damages to Goldwyn. This is very important to the picture industry, as the industry has assumed that when Missouri Chain Theatre Bill Defeated THE Private Corporations Committee of the Missouri House has voted to kill the so-called chain store bill, which would have effected strings of theatres operated by foreign corporations. The bill through a graduated schedule of license fees sought to limit the number oT stores or theatres operated by the same concern. It was designed primarily to hit chain grocery stores, but would have affected theatres, restaurants, drug stores or other businesses. hibitors' Exchange, Ltd., Canadian Universal Films, Ltd., Famous Players-Lasky Film Service, Ltd., Famous Players Film Service, Ltd., Fox Film Corporation, Ltd., W. W. Hodkinson Corp., Regal Films, Ltd., Ernest Shipman Productions, United Artists Corp., and Vitagraph, Inc., all of whom have their Canadian headquarters at Toronto. Censorship For Missouri Gets Setback The Committee of Fifty has about abandoned hope of forcing motion picture censorship in Missouri. Last week the House Committee on Criminal Jurisprudence voted an unfavorable vote on the measure. The Senate committee plans to let the bill die in committee, although a sub-committee composed of Senators Casey, Brookshire and Whiteeotton has been named to draw up a substitute bill to provide a censor board composed entirely of state officials. Should the Senators decide to report on censorship this substitute bill would be sent in. Casey, who hails from Kansas City, at a meeting of the committee Wednesday, expressed the belief that state censorship would come eventually. Missouri Seat Sale Bill Favorably Reported THE Missouri Senate's committee on Criminal Jurisprudence has reported favorably on Senator Pickett's bill to prohibit the sale of theatre tickets after every seat is taken. A similar house bill has also received a favorable report. Bill Would Make Prices Uniform Thruout Week Introduced before the Pennsylvania Assembly and referred to committees for action is a measure sponsored by Representative Burns, of Philadelphia, which would prohibit persons in the motion picture or other amusement business from having a higher scale of prices for admission for any particular day of the week than that for other days of the same week. The penalty suggested for violation of this proposed law is a fine of $500 for the first offence, and the same fine or imprisonment or both for subsequent offences. Peter Magaro, prominent Harrisburg exhibitor, who is a vice-president of the Motion Picture Theatre Owners of Pennsylvania and a member of the Legislative Committee of that body, recently appointed to keep a watch on legislation introduced at the capital which might have an injurious effect on the industry, has announced that the committee has given assurance to the members of the billboard advertisers' legislative committee, which is fighting the proposed law that would place a tax of five cents a square foot on all billboard advertising space, that the M. P. T. 0. of Pennsylvania is in full sympathy with the effort to defeat this bill and stands ready to lend its co-operation to the billboard advertisers' committee. Hearst Acquires Lease On N. Y. Park Theatre William Randolph Hearst has acquired a twenty-one-year lease on the Park theatre, Columbus Circle, New York City, it was announced. The lease is effective immediately, and after the house is redecorated it will be opened as the Cosmopolitan for first run pictures. Cosmopolitan and Goldwyn pictures will be presented, announcement of the merging of the two organizations having been made last week. It is likely that this is only one of a number of theatres the Hearst interests will acquire in leading cities of the country. It is said that the opening attraction of the new Cosmopolitan will be " Little Old New York," a picture starring Marion Davies. Indiana Senate Crushes Censorship Bill The Indiana State Senate last Monday killed Senator Steele's motion picture censorship bill, when on motion of Senator Harold Vanorman of Evansville the measure was indefinitely postponed by a vote of 40 to 4. The bill prohibiting commercial sports on Memorial Day, including the Indianapolis speedway races, in which theatrical men were interested, because of the crowds it drew to the city, was passed in the Indiana House of Representatives the same afternoon by a vote of 52 to 38, after a bitter fight. It goes to the Governor, having passed the Senate several weeks ago.