Sunset Securities Co. v. Coward McCann, Inc.

SHENK, J.

The plaintiff appeals from a summary judgment entered on a cross-complaint which determined in the defendant’s favor its title to motion picture and other rights in the novel “Prelude to Night,” subject to certain existing rights reserved to the plaintiff by a written agreement.

In 1944, all rights to the novel “Prelude to Night” were conveyed to the defendant by its author, Dayton Stoddart.

[909]

In 1945, the defendant copyrighted the novel. In 1946, the defendant entered into a written agreement with American International Picture Corporation under which American International was licensed to make, copyright, sell and exhibit a motion picture based on the novel. Ten years from the making of the agreement, all rights granted thereunder were to revert to the defendant unless the purchaser exercised an option to buy those rights upon payment of an additional $25,000.

The controversy relates to the construction and effect of the written agreement entered into between the defendant and American International Picture Corporation, the plaintiff’s predecessor in interest. The defendant contends that unless the plaintiff at the expiration of 10 years exercised its option the copyright, license to exhibit and perform the motion picture, and other rights in and to the motion picture granted by the agreement would revert to the defendant. Although the defendant originally asserted title to the existing copies of the film through operation of the agreement that contention has been abandoned.

The agreement provided in its pertinent parts: “First: The Owner [defendant] does hereby give, grant, convey and assign unto the purchaser [plaintiff’s predecessor in interest], its successors, licensees and assigns, for a term of ten (10) years from and after the date hereof, the following rights in and to the property:

“(a) The sole and exclusive motion picture rights and motion picture copyright throughout the world in and to said property.

“(b) The sole and exclusive right, throughout the world, to mechanically produce, reproduce and license the reproduction of spoken words taken from and/or based upon the text or theme of said Property on records, films or other devices ... all or a part of the text, theme and/or dialogue contained in said property.