# Opposition — Pro Arts, Inc. v. Factors Etc., Inc.

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Opposition
- **Published:** January 1, 1979
- **Citation:** 440 U.S. 908

## Text

— Supreme Coun, UP] |
FILED

JAN 31 (979

IN THE MICHAEL RCDAK, JR., CLERR

Supreme Court of The Anited States

Octoser TERM, 1978

No. /& -6942

Pro Arts, Inc. and Stop anp SHop Compantss, Ino.,
Petitioners,

v.

Factors Erc., Inc. and Boxcar ENTERpRisEs, INc.,
Respondents.

On PETITION FoR A WRIT OF CERTIORARI TO THE
Unitep States Court or APPEALS
FOR THE SEconpD CinculIrT

RESPONDENTS’ BRIEF IN OPPOSITION

MicHakE. C. SILBERBERG
645 Fifth Avenue
New York, New York 10022
(213) 935-9800

ARTHUR FIELDS AND

Epwarp A. Woops
9401 Wilshire Boulevard
Beverly Hills, California 90212
(213) 273-6333

Attorneys for Respondents

oie) hy

INDEX

TABLE OF AUTHORITIES...................
I i ce See ct he

QUESTIONS PRESENTED BY PETITION ....
STATEMENT OF THE CASE ................

REASONS WHY THE WRIT SHOULD BE
Ee Os oe rer ina cies ka de

1. NO REASON EXISTS FOR THE GRANT
OF CERTIORARI SINCE THE OPINION
AND RATIONALE OF THE ZACCHINI
CASE ARE FULLY DETERMINATIVE
OF THE ISSUES PRESENTED BY PETI-
po I ee eee ee ee ee Te

A. Petitioners’ Commercia! Souvenir Posters
Do Not Constitute a Legitimate Effort to
Disseminate News, Are Not Equivalent to
Posters Which Do Communicate Ideas or
Disseminate Newsworthy Information and
Therefore Are Not Entitled to the Same
First Amendment Protection ...........

B. Since Petitioners Have Presented No
Meaningful Distinctions Between Zacchini
and the Instant Case, Zacchini Controls
and the Petition Should Be Denied ......

C. The Paulsen and Current Audio Opinions
Relied Upon By Petitioners Are Consistent
with Zacchini and the Decisions Below ...

15

17

2. NO QUESTIONS RAISED BY PETITION-
ERS IN THE INSTANT CASE WERE
LEFT UNANSWERED IN ZACCHINI 20

3. THE INJUNCTION ENTERED AGAINST
PETITIONERS IS SUFFICIENTLY NAR-
ROW TO RESTRAIN PETITIONERS
WITHOUT ANY ABROGATION OF FIRST

AMENDMENT RIGHTS ................. 21
SE nc hh ctc ea eet saksaes ton an eres 22
ei SLi n pide ae ape eee aan aeeeS AA-1

iin,

TABLE OF AUTHORITIES

Cases Page
Baldwin v. Redwood City, 540 F.2d 1360 (9th Cir.
1976), cert. denied, 431 U.S. 913 (1977) ........ 12

Bates v. State Bar of Arizona, 433 U.S. 350 (1977) 7,14

Current Audio, Inc. v. RCA Corporation, 71 Misc.2d
831, 337 N.Y.S.2d 949 (Sup.Ct. 1972) . 10, 17,18

Factors Etc., Inc. and Boxcar Enterprises, Inc. v.
Creative Card Co., et al., 444 F.Supp. 279

OE ooo >. 54's Gums’ uae boas om oo
Glasson v. City of Louisville, 518 F.2d 899 (6th Cir.
1975), cert. denied, 423 U.S. 930 (1975) ..... 7,13
Groucho Marx Productions, Inc. v. Playboy Enter-
prises, Inc. (No. 77-1782, S.D.N.Y. 1977) ...... 18
Guglielmi _v. Spelling-Goldberg Prods., 140 Cal.
Rptr. 775 (Cal.Ct.App., 2nd App.Dist. 1977) ... 12

Haelan Laboratories, Inc. v. Topps Chewing Gum,
Inc., 202 F.2d 866 (2d Cir. 1953), cert. denied,
Sy MR A WO oo ic nw cancec cess sees 4,7

Hernandez v. Hanson, 430 F.Supp. 1154 (D.Neb.
AS CR aan et ee Ore ee ee ae 13

Hicks, et al. v. Casablanca, et al., 77 Civ. 5399
(LWP) (S.D.N.Y., filed September 19,1978) .... 11

Joseph Burstyn, Inc. v. Wilson, 343 U.S. 495 (1952) 11
Man v. Warner Bros., Inc., 317 F.Supp. 50 (S8.D.N-Y.

ns ing ae eh hailed uth ao aS a a oc ks 11
Paulsen v. Personality Posters, Inc., 59 Misc.2d 444,
299 N.Y.S.2d 501 (Sup.Ct. 1968) ....... 4,5, 17,18

Rosemont Enterprises, Inc. v. Urban Systems, Inc.,
72 Mise.2d 788, 340 N.Y.S.2d 144 (1973) as

a iy a=

Page
Spinar v. United States, 440 F.2d 1241 (8th Cir.
ES, 25 Leh cates J weds. See Capa pRSeaN 13
Universal City Studios v. Ideal, 3 Media Law Re- ~
porter 1297 (S.D.N.Y. 1977) .............5045: 11

University of Notre Dame du Lac v. Twentieth
Century Fox Film Corp., 22 A.D. 2d 452, 256
Se IE I wei Vain 0b eee eye vgn ge 11

Winters v. New York, 333 U.S. 507 (1948) ........ 11
Zacchini v. Scripps-Howard Broadcasting Co., 433
U.S. 562, 97 S.Ct. 2849 (1977) . .4, 6, 10, 15, 16, 17, 19, 20

U.S. Constitutional Amendments:

Amendment I ............. 2, 4, 5, 6, 7, 8, 9, 10, 11, 12,
13, 14, 15, 18, 20, 21

Miscellaneous
91 Harvard Law Review 208-214 (1977)........ 15

Se eee ee

IN THE

Supreme Court of The United States

Octoser TgerM, 1978

No. 12-492

Pro Arts, Inc. and Stop anp SHop Compantrs, Ino.,
Petitioners,

v.

Factors Erc., Inc. and Boxcar Ewnrerprises, Ino.,
Respondents.

On PETITION For A Writ or CERTIORARI TO THE
Unirtep States Court or APPEALS
FOR THE SEconpD Circuit

RESPONDENTS’ BRIEF IN OPPOSITION

The respondents Factors Etc., Inc. and Boxcar Enter-
prises, Inc. respectfully request that this Court deny the
petition for writ of certiorari seeking review of the
Second Circuit’s opinion in this case. That opinion is
reported at 579 F.2d 215 and is reprinted in Appendix C
of the petition.

OPINIONS BELOW

The opinion of the United States District Court for the
Southern District of New York granting a preliminary
injunction is reported at 444 F.Supp. 288 and is reprinted
in Appendix A of the petition. That opinion recites that
the instant action was a companion action to Factors Etc.,

=

Inc. and Boxcar Enterprises, Inc. v. Creative Card Co.,
et al., which is reported at 444 F.Supp. 279, and the find-
ings and reasonings of the Creative Card opinion were
specifically incorporated in the District Court opinion
in the instant action. The Creative Card opinion is re-
printed in Appendix AA of this Brief in Opposition.*

QUESTIONS PRESENTED BY PETITION

1. Do petitioners have an absolute First Amendment
privilege to mass merchandise their unauthorized celeb-
rity souvenir poster bearing Elvis Presley’s photo-
graph which would otherwise constitute an appropriation
of his judicially recognized “right of publicity” merely
because the poster was distributed in the days immedi-
ately following Mr. Presley’s death and bears the legend
“In Memory .. . 1935-1977”?

2. Does an injunction restraining petitioners from
selling or distributing an unauthorized celebrity souvenir
poster of Elvis Presley or otherwise utilizing for com-
mercial profit Mr. Presley’s name, image or likeness
constitute an impermissibly overbroad restraint of their
First Amendment rights?

STATEMENT OF THE CASE

This petition is filed with respect to an Order of the
Court of Appeals of the Second Circuit which affirmed an
Order of the United States District Court for the
Southern District of New York, Charles H. Tenney, J.,
granting respondents’ motion for a preliminary injunc-
tion. That injunction restrains petitioners during the
pendency of this action from further sale or distribution
of their unauthorized commercial souvenir poster of

* Ref to the appendices in the petition and this Brief in
Gonedlion are prefaced with the a ix letter(s) followed
by the page number (e.g., Al, C3, ).

or

the renowned entertainer Elvis Presley and from other-
wise utilizing for commercial profit, the name, image or
likeness of Mr. Presley, who met a tragic and untimely
death on August 16, 1977.

This action is jointly brought by Boxcar Enterprises,
Ine. (“Boxcar”), a Tennessee corporation, to which Mr.
Presley during his lifetime transferred, and which he
thereafter utilized as the vehicle to commercially exploit,
his judicially recognized “right of publicity” and by
Factors Ete., Inc. (“Factors”). (C-2 and 0-3). Factors,
a Delaware corporation, is one of the world’s largest mass
merchandisers of novelty items, specializing in the com-
mercial exploitation of celebrities’ “rights of publicity”.
On August 18, 1977, two days after Elvis Presley’s death,
Factors acquired from Boxcar, by written license agree-
ment, the exclusive right to commercially exploit Mr.
Presley’s name and likeness “in connection with the manu-
facture, sale, advertising and distribution of all mer-
chandise, of whatever kind, size or nature”. This agree-
ment was confirmed and consented to by Mr. Presley’s
long-time personal manager, Colonel Tom Parker, and
Mr. Vernon Presley, Elvis’ father and the executor of his
estate, which will benefit substantially from the royalties
paid by Factors (C-3). Factors paid Boxcar $100,000 on
execution of the agreement against a guarantee of
$150,000.

Immediately upon Presley’s death, petitioner Pro Arts,
Inc. (“Pro Arts”) decided to illegally appropriate for
itself a share of the market for Elvis Presley memora-
bilia. (C-3). Three days after Presley’s death, Pro Arts
published and commenced marketing, without authority
from anyone related to the Presley interests, a pictorial
celebrity souvenir poster of Elvis Presley using a photo-
graph, the copyright of which it claims to have purchased
from a staff photographer of the Atlanta (Georgia)
Journal. On the poster were inserted the words “In

— ;
Memory .. . 1935-1977”. The poster was thereafter sold
by petitioner Stop and Shop Companies, Inc. through
one of its divisions. (C-3 and C-4).

The Decisions Below

In carefully reasoned opinions filed in the instant action
and a companion action brought against Creative Card
Co., the District Court held that respondents had satisfied
each of the tests entitling them to preliminary injunctive
relief. Relying upon the Second Circuit’s landmark de-
cision in Haelan Laboratories, Inc. v. Topps Chewing
Gum, Inc., 202 F.2d 866 (2d Cir. 1953), cert. denied, 346
U.S. 816 (1953), and the recent United States Supreme
Court opinion in Zacchini v. Scripps-Howard Broadcast-
ing Co., 433 U.S. 562, 97 S.Ct. 2849 (1977), the District
Court held that the death of Elvis Presley did not operate
to divest Boxcar of the rights it had acquired from Mr.
Presley during his lifetime, that Mr. Presley possessed a
valuable “right of publicity” which “inhered in and was
exercised by [him] in his lifetime... was assignable by
him and was so assigned, that it survived his death and
was capable of further assignment.” (AA-7).

The District Court premised its finding of irreparable
injury upon (a) the “evanescent” nature of the market
for Presley memorabilia, (b) the “rush to capitalize on
the Presley image in [the] post-mortem period” and (c)
the jeopardy to Factors’ licensing program by Factors’
“inability to grant exclusive rights” due to the presence
of [petitioners’] goods in the marketplace. (AA-13).

The District Court held that petitioners’ reliance for a
First Amendment newsworthy privilege upon Paulsen v.
Personality Posters, Inc., 59 Misc.2d 444, 299 N.Y.S.2d
501 (Sup.Ct. 1968), was “far off the mark” since Paulsen
was “decided in favor of the unlicensed poster manu-
facturer because Paulsen’s choice of the politicai arena
for satire made him ‘newsworthy’ in the dirst amendment

= a

sense.” (AA-11 and AA-12; emphasis added). In a foot-
note the court also remarked that Paulsen had since
been held “unique to its facts” by the very court which
decided it. (AA-12). The Court concluded that “there is
no constitutional protection for selling posters of Elvis
Presley as Elvis Presley”. (AA-12).

On appeal petitioners did “not challenge the trial
court’s finding of possible irreparable harm”, but only its
finding that respondents “had demonstrated probable
success on the merits.” (C-8)

The Court of Appeals affirmed the District Court
opinion, holding that petitioners had “demonstrated a
strong likelihood of success on the merits at trial” (C-15),
and that Boxcar’s exclusive right to commercially exploit
Presley’s name and likeness was exercised during
Presley’s life, survived his death and was validly trans-
ferred to Factors (C-14). The Court of Appeals also
summarily rejected petitioners’ assertion that pursuant
to Paulsen, petitioners were privileged under the First
Amendment to print and distribute their own Elvis
Presley poster as a means of expression concerning a
“newsworthy event” (C-14). The Court held that it could
not “accept [petitioners’] contention that the legend ‘In
Memory ...’ placed its poster in the same category as
one picturing a presidential candidate, albeit a mock
candidate.” (C-15).

REASONS WHY THE WRIT SHOULD BE DENIED

1. NO REASON EXISTS FOR THE GRANT OF
CERTIORARI SINCE THE OPINION AND RA-
TIONALE OF THE ZACCHINI CASE ARE FULLY
DETERMIN/ TIVE OF THE ISSUES PRESENTED
BY PETITIONERS.

The Supreme Court has already held that a state con-
stitutionally may prohibit the unauthorized appropriation
of an entertainer’s “right of publicity” even where the

sili

appropriation constitutes a legitimate effort to com-
municate newsworthy information and the unauthorized
appropriator is a recognized member of the communica-
tions media. Zacchini v. Scripps-Howard Broadcasting
Co., 433 U.S. 562, 97 S.Ct. 2849 (1977). In Zacchini the
Court held that even a television station does not enjoy
an absolute First Amendment privilege to utilize for its
newscasts newsworthy events if that use constitutes an
appropriation of an individual’s right of publicity.

It is respectfully submitted that the opinion and ra-
tionale of Zacchini are fully determinative of the issues
presented by petitioners, and that, in fact, the instant
action presents a much stronger case than Zacchini for
the prohibition of an unauthorized appropriation of an
entertainer’s “right of publicity” since (1) petitioners’
souvenir posters do not constitute a legitimate effort to
disseminate news and (2) even assuming arguendo that
a photograph of Elvis Presley and the years of his birth
and death were newsworthy information, petitioners
unquestionably have utilized that information solely for
the purpose of commercial exploitation in derogation of
respondents’ right of publicity.

A. Petitioners’ Commercial Souvenir Posters Do Not
Constitute a Legitimate Effort to Disseminate News,
Are Not Equivalent to Posters Which Do Oom-
municate Ideas or Disseminate Newsworthy Informa-
tion and Therefore Are Not Entitled to the Same

- First Amendment Protection.

Petitioners buttress their argument seeking a grant
of certiorari on the unspoken and unwarranted assump-
tion that mass merchandised celebrity souvenir posters
are legally indistinguishable from posters which com-
municate or disseminate newsworthy information or seek
to inform or encourage the dissemination of ideas. It is
respectfully submitted that petitioners’ mere invocation
of the word “poster” to describe their souvenir merchan-

a

dise is insufficient to attach to their celebrity souvenir
posters the protection traditionally afforded by the First
Amendment.

Petitioners’ assertion that their celebrity poster is con-
stitutionally privileged because it carries a “message of
public interest” is baseless (petition, p. 9). Petitioners
do not seek to inform the public. Petitioners are mass
merchandisers interested only in profiting from the sale
to the public of a “remembrance” of Elvis Presley.' The
poster petitioners wish to peddle is no different than the
Elvis Presley buttons, badges, tote bags and T-shirts
sold by other mass merchandisers. Petitioners’ celebrity
poster is intended as a memento in the same sense that
the personal scarves Presley flung to adoring fans at his
concerts were intended as mementos. Respondents re-
spectfully submit that even petitioners would not assert
a constitutional privilege for such items.

The rationale supporting First Amendment protection
of political posters and commercial advertising is wholly
inapposite to celebrity posters, memorabilia and souvenir
merchandise. Even petitioners do not suggest that their
personality posters communicate any ideas or views
about “important public questions and policies” or serve
“individual and societal interests in assuring informed
and reliable decision-making”. Glasson v. City of Louis-
ville, 518 F.2d 899 (6th Cir. 1975), cert. denied, 423 U.S.
930 (1975); Bates v. State Bar of Arizona, 433 U.S. 350
(1977). The medium of posters as a means of political
expression and dissent is not the medium of celebrity
souvenir posters. In fact, petitioners’ celebrity souvenir
posters are merely enlarged bubble gum cards, such as
those involved in Haelan Laboratories, Inc. v. Topps
Chewing Gum, Inc., 202 F.2d 866 (2d Cir. 1953), cert.
1 Since petitioners’ souvenir merchandise is unauthorized, peti-

tioners need mpi 6 any royalties to respondent Boxcar. Thus,

petitioners are attempting to unfairly compete with re-
spondents by selling souvenir merchandise at a lower price.

=

denied, 346 U.S. 816 (1953), and about which there can
be no serious claim of First Amendment privilege.’

In their attempts to assert constitutional protection for
their souvenir merchandise, petitioners have boxed them-
selves into a corner from which they cannot be extricated.
If petitioners are asserting that their souvenir poster is
constitutionally protected under the First Amendment
because posters are a medium entitled to such protection
without further analysis, then it is irrelevant whether
petitioners affixed any message to the poster. However,
as demonstrated herein, the medium of posters as a means
of political expression is not the medium of celebrity sou-
venir posters. Thus, constitutional protection does not at-
tach automatically to a souvenir item labelled “a poster”.
On the other hand, if petitioners are “ontending that it is
their use of their souvenir poster which entitles them to
First Amendment protection, because it carries a message
of public interest, then it would follow that any other item
of souvenir merchandise which also carried that message
would be entitled to equal constitutional protection. Thus,
under petitioners’ theory, any ash tray, wastebasket, bed-
spread, button, badge or tote bag embossed with a picture
of Elvis Presley and the words “In Memory... 1935-
1977” would be entitled to First Amendment protection.
It is respectfully submitted that such a position is prepos-
terous.

It also would flow from petitioners’ contention that if
Presley were still alive and became married or a parent,
petitioners would be entitled to claim a First Amendment
privilege to manufacture, distribute and sell, without
Presley’s consent, a celebrity poster or other merchan-
dise portraying Presley and his wife and/or children
imprinted with the appropriate marriage and birth
2 Petitioners certainly cannot be suggesting that an unauthorized

manufacturer of bubble gum ten cards would be deserving

of First Amendment protection against a claim of infringement
on the ground that the cards provided players’ statistics.

nisl

dates.* Respondents respectfully submit that such argu-
ments are untenable.

Petitioners’ suggestion that their celebrity souvenir
poster is a legitimate effort to disseminate news is a
thinly transparent sham. Petitioners are seeking refuge
behind the protective skirts of the First Amendment in
order to engage in the crassest commercial rip-off. To
argue that the addition of the words “In memory .. .
1935-1977” affords petitioners First Amendment protec-
tion for their celebrity souvenir poster makes a mockery
of the First Amendment and ignores petitioners’ patent
and belated efforts to cloak their purely commercial
activities in the protective mantle of the First Amend-
ment.

Petitioners have sought to commercially capitalize on
Elvis Presley’s death by selling an unauthorized sou-
venir poster which they could not and did not do during
Presley’s life. Petitioners’ arguments in the District
Court and Court of Appeals evidenced their belief that
they could defend their production and sale of unau-
thorized celebrity souvenir posters on the theory that
Presley’s right of publicity was personal and died with
him. However, as both lower courts opined, Presley’s
right of publicity was assignable by him, was so assigned,
survived his death and was validly transferred to re-
spondent Factors. Having been rejected in their underly-
ing theory, in an effort to seek the aid of a higher court
petitioners now attempt to fashion a constitutional argu-
ment out of whole cloth, by suggesting that they were
engaged in a legitimate effort to disseminate news.

’Respondents doubt that petitioners wish to concede that the
accidental death or divorce of one of their major commercial
poster properties such as Farrah Fawcett-Majors would it
others to immediately market ——- posters, thereby de-

stroying their exclusive rights, as long as the appropriator affixed
a “magical” label to the ome

—_— =a

Petitioners must assume the grossest naivete of this
Court to ask it to believe that petitioners’ purpose in
manufacturing and selling their celebrity souvenir poster
was to convey “a message of public interest”. In reality,
petitioners’ purpose from the outset can be simply de-
scribed: to obtain something for nothing. The Court in
Zacchini addressed this precise question when it said
that:

“(The rationale of protecting the right of publicity is]
one of preventing unjust enrichment by the theft of
good will. No social purpose is served by having the
defendant get free some aspect of the plaintiff that
would have market value and for which he would nor-
mally pay.” 433 U.S. at 576 (See also AA-9, C-10 and
C-11). (emphasis added).

Petitioners’ obvious intent was to capitalize upon the
substantial demand for Elvis Presley memorabilia im-
mediately upon his death without having to pay anything
for such right. The rationale espoused by the Court in
Zacchim prohibits such acts and petitioners’ belated
effort to claim constitutional protection for their crass
conduct rings hollow.

It is well established that souvenir merchandise and
ordinary subjects of commerce such as petitioners’ celeb-
rity poster do not communicate ideas or opinions and are
not afforded constitutional protection. Although it is
clear that “entertainment, as well as news, enjoys First
Amendment protection” (Zacchini at 578), it is also true
that none of the cases cited by petitioners afford protec-
tion to, or even mention, celebrity posters or other souve-
nir merchandise. Rather, the cases cited by petitioners
deal with (a) press conferences, “the very symbol of a
free and open press” (see Current Audio, Inc. v. RCA
Corporation, 71 Mise.2d 831, 337 N.Y.S8.2d 949 (Sup.Ct.

ee ag,

—

1972) ; (b) magazines (see Winters v. New York, 333 U.S.
507 (1948), Universal City Studios v. Ideal, 3 Media Law
Reporter 1297 (S.D.N.Y. 1977) ; and (c) motion pictures,
see Joseph Burstyn, Inc. v. Wilson, 343 U.S. 495 (1952),
Man v. Warner Bros., Inc., 317 F.Supp. 50 (S.D.N.Y.
1970), and University of Notre Dame du Lac v. Twenti-
eth Century Fox Film Corp., 22 A.D. 2d 452, 256 N.Y.S.
2d 301 (1965), in which the court specifically said:

“Tt is at once apparent, when we deal with the content
of a book or motion picture, that we deal with no ordi-
nary subject of commerce. Motion pictures, as well as
books, are ‘a significant medium for the communication
of ideas.’ (emphasis added).

Two recent cases involving an entertainer’s right of
publicity and defendants’ claimed First Amendment priv-
ileges, one from the District Court for the Southern Dis-
trict of New York and the other from the Court of
Appeals in the State of California, evidence further ju-
dicial recognition of the obvious distinction between (a)
celebrity posters and related items of souvenir merchan-
dise and (b) other media legitimately entitled to First
Amendment protection.

In Hicks, et al. v. Casablanca, et al., 77 Civ. 5399
(LWP), filed September 19, 1978, the District Court for
the Southern District of New York faced the question
with respect to Agatha Christie of “whether the right of
publicity attaches where the name or likeness is used in

connection with a book or movie”. The court there stated
that:

“... [MJore so than posters, bubble gum cards, or
some other such ‘merchandise’, books and movies are
vehicles through which ideas and opinions are dissem-
inated and, as such, have enjoyed certain constitutional

ae A cits
protections, mot generally accorded ‘merchandise’.”
(emphasis added; p.6)

In Guglielmi v. Spelling-Goldberg Prods., 140 Cal.Rptr.
775 (Cal.Ct.App., 2nd App.Dist. 1977), the Court, in con-
sidering the claim of Rudolph Valentino’s heir to the late
actor’s surviving right of publicity and protesting the
contents of a biography produced by defendants, stated
that:

“The public policy grounds for allowing biographies,
however unauthorized, are different from those re-
garding the issuance of posters or sweatshirts embla-
zoned with the likeness of the deceased celebrity.” (em-
phasis added)

Thus, both California and New York courts have ac-
knowledged a distinction between books and motion pic-
tures on the one hand and sweatshirts, bubble gum cards
and celebrity souvenir posters on the other hand, based
rron the obvious recognition that ideas and opinions are
disseminated through the former but not the latter, as a
result of which the latter are not entitled to constitutional
immunity from an otherwise valid misappropriation
claim.

Significantly none of the cases cited by petitioners for
the proposition that celebrity souvenir posters are a
medium of expression entitled to protection under the
First Amendment deal with mass merchandised celebrity
souvenir posters, except perhaps Paulsen, supra, which
has been limited by the very court which decided it to its
“nnique facts” and is readily distinguished below (see
pp. 17-19).

In Baldwin v. Redwood City, 540 F.2d 1360 (9th Cir.
1976), cert. denied, 431 U.S. 913 (1977), cited by peti-
tioners, the Court invalidated an ordinance restricting

— oo

the display of political campaign posters on public thor-
oughfares on the ground that the First Amendment pro-
tected the expression of political opinions.

In Glasson v. City of Louisville, 518 F.2d 899 (6th Cir.
1975), cert. denied, 423 U.S. 930 (1975), the Court affirmed
plaintiff’s constitutional rights to hold up a political
protest poster along a motorcade route scheduled to be
traveled by the President of the United States when the
message on the sign expressed plaintiff’s “views about
important public questions and policies.” 518 F.2d at 904
(emphasis added).

The only issue before the court in Spinar v. United
States, 440 F.2d 1241 (8th Cir. 1971), also relied upon by
petitioners, was whether certain posters were obscene
under the prevailing standards established by the United
States Supreme Court. Since the question of obscenity is
not before this Court, it is respectfully submitted that
Spinar has no application to the instant action.

Hernandez v. Hanson, 430 F.Supp. 1154 (D. Neb. 1977),
is also inapposite. That case dealt with the validity of a
local school board regulation requiring approval prior to
the dissemination on campus of certain literature. Al-
though the Court found nothing per se unreasonable under
the First Amendment about requiring prior approval
of written distributions, it articulated the policy reasons
supporting an open or less restricted distribution, em-
phasizing that “a public school is a market place of ideas
and early involvement in debate and comment and free
exchange is essential to the development of the demo-
cratic spirit necessary to the proper functioning of our
government”. 430 F.Supp. at 1158. The rationale favor-
ing unrestricted distribution of literature on school cam-
puses does not apply to the unrestricted sale of celebrity
souvenir posters in the instant case. Petitioners surely
cannot seriously assert that their celebrity souvenir pos-
ter of Elvis Presley is intended to or in fact will generate

=

“debate and comment and [a] free exchange [of ideas]
essential to the development of the democratic spirit
necessary to the proper functioning of our government.”

Petitioners also rely upon an excerpt from a footnote
in a dissenting opinion in Bates v. State Bar of Arizona,
433 U.S. 350 (1977), to support their contention that
celebrity posters are entitled to First Amendment pro-
tection. Bates, which struck down restraints on attorney
price advertising, discussed the basis underlying the pro-
tection afforded commercial speech in certain instances:

“Significant societal interests are served by such
speech [which] ... serves to inform the public of the
availability, nature, and prices of products and ser-
vices, and thus performs an indispensable role in the
allocation of resources in a free enterprise system.
[citations]. In short, such speech serves individual
and societal interests in assuring informed and reliable
decisionmaking.” 97 S.Ct. at 2699.

Bates is inapplicable to the instant case for at least
two reasons. First, petitioners’ celebrity souvenir post-
ers do not even rise to the level of commercial speech,
which itself is protectible only in certain instances. Sec-
ond, and more importantly, none of the reasons favoring
the protection of commercial speech, including serving
“individual and societal interests to assure informed and
reliable decisionmaking”, apply to the sale of an Elvis
Presley souvenir poster.

Petitioners’ citation to a footnote in the dissenting
opinion of Justice Powell (petition, p. 7) is somewhat
misleading to the extent it suggests that the Court or
Justice Powell stated that there is no distinction for
First Amendment purposes between newspapers and
celebrity souvenir posters. A review of the entire
footnote indicates that Justice Powell suggested that
there is-no distinction for purposes of attorney price

<

advertising between newspapers and other media which
might contain that information, (97 S.Ct. at 2718).

Thus, all of the cases cited by petitioners for the prop-
osition that “posters are media of expression entitled to
protection under the First Amendment” (petition, p. 6)
involve posters which communicate ideas, disseminate
newsworthy information, or serve important societal in-
terests in decisionmaking. In contrast, the District Court
below correctly recognized that the issue before it related
to rights respecting commercial exploitation of “souvenir
merchandise” (AA-2, AA-14 and AA-19). The Court of
Appeals concurred, repeatedly referring to rights to
market Presley “memorabilia”. (C-2, C-3, C-14, and
C-15).

B. Since Petitioners Have Presented No Meaningful
Distinctions Between Zacchini and the Instant Case,
Zacchini Controls and the Petition Should Be Denied.

Although even petitioners acknowledge that Zacchini
is the controlling case on the issue before the Court, they
suggest four grounds of distinction between the instant
action and Zacchini. However, it can readily be seen that
no meaningful distinctions exist. Therefore the rationale
of Zacchini mandates a denial of the petition.

Petitioners first argue that in Zacchini a performer’s
“entire act” was appropriated. However, an analysis of
the Court’s opinion indicates that the question of whether
an “entire act” is appropriated is not a workable test,
and that the critical issues are the nature of the use made
and the damage caused by the appropriation. See 91
Harvard L.Rev. 208-214 (1977). Petitioners’ crass com-
mercial exploitation of Presley’s right of publicity and
the damage caused thereby are clearly prohibited by
Zacchini.*

*It is submitted that Zacchini would not have been decided

differently if the television station had instead sold unauthor-
ized souvenir posters of Mr. Zacchini.

== 16

With respect to the second claimed distinction, that
the television station in Zacchini could have arranged its
“own cannonball act”, it is just as evident that petitioners
could have arranged for their own guitar player or singer
on a souvenir poster rather than Elvis Presley, with
respect to whom they have no rights.

Petitioners’ third contention, that this case differs
from Zacchini because in the latter the appropriation re-
lated to the very activity by which the entertainer ac-
quired his reputation, is also misplaced. The record is
clear that Elvis Presley earned a substantial amount of
money from licensing the use of his name and likeness
on souvenir merchandise during his lifetime (AA-4).
Zacchim does not hold that the appropriated activity
need be the entertainer’s primary activity. For example,
although the primary activity of a baseball player is
playing ball, part of his income may well come from
selling the right to use his name and likeness (see Hae-
lan, supra).

Finally, petitioners contend that Zacchini did not in-
volve a prior restraint whereas the instant case does.
The cases cited by petitioners for this proposition involve
the imposition of restraints prior to a hearing. In the
instant case, there was a full hearing and petitioners
were afforded an opportunity to present evidence and
conduct discovery prior to the issuance of any injunction.
More importantly, if petitioners are correct, the absence
of injunctive relief in the face of an unwarranted com-
mercial appropriation of an entertainer’s right of pub-
licity would totally emasculate the right of publicity.

Thus, since it is apparent that the four grounds of dis-
tinction asserted by petitioners are inapplicable, Zacchini
is controlling and the petition must be denied.

—_ oe

C. The Paulsen and Current Audio Opinions Relied
Upon By Petitioners Are Consistent with Zacchini
and the Decisions Below.

Despite the clear holding of Zacchini, petitioners none-
theless argue that their activities are privileged and that
their so-called “memorial poster” is protected as a “news-
worthy” exception to the “right of publicity” — an excep-
tion which they claim is established under New York law
by two state trial court decisions rendered long before
Zacchini, Paulsen v. Personality Posters, Inc., 59 Mise.
2d 444, 299 N.Y.S.2d 501 (Sup. Ct. 1968) and Current
Audio, Inc. v. RCA Corporation, 71 Mise.2d 831, 337
N.Y.S.2d 949 (Sup. Ct. 1972). They assert that Paulsen
considered the right of publicity and found that it did
not apply to the sale of posters, particularly posters “in
conjunction with the dissemination of news or public
interest presentations” (petition, pp. 6-7). They infer
that Current Audio affirmed the holding in the Paulsen
case exempting the use of the name or likeness of a
famous individual commemorating a newsworthy event
(petition, pp. 7-8).

Not only is the continuing vitality of Paulsen and Cur-
rent Audio doubtful in the wake of the Zacchini decision,
but we submit that petitioners’ activities are not privi-
leged as legitimate news and, further, that petitioners’
arguments do violence to the holdings of Paulsen and
Current Audio. Those cases afford them neither comfort
nor protection.

In Paulsen, a well known entertainer entered the 1968
Presidential race as the “STAG” party candidate. He
brought his “right of privacy” action solely under Sec-
tion 51 of the New York Civil Rights Law. He sought to

'These decisions of the lowest court of the State of New York
were also rendered on motions rather than upon trial.

— we

enjoin distribution of posters bearing his likeness with
the notation “For President.” The case was dismissed
by the court. Noting that his candidacy “satirical or
otherwise” had been the subject of comment by communi-
cation media, including a front page news article in the
Wall Street Journal, the court stated:

“Tt is apparently plaintiff’s position that since ‘he is
only kidding’ and his presidential activities are really
only a ‘publicity stunt’ they fall outside the scope of
constitutionally protected matters of public interest.
Such premise is wholly untenable. When a well-known
entertainer enters the presidential ring, tongue in cheek
or otherwise, it is clearly newsworthy and of public
interest. A poster which portrays plaintiff im that role,
and reflects the spirit in which he approaches said role,
is a form of public interest presentation to which pro-
tection must be extended.” 299 N.Y.S.2d at 507 (empha-
sis added).

Thus, Paulsen involved a Presidential election —a
uniquely newsworthy event given the broadest possible
First Amendment protection. Indeed, the significant
First Amendment questions and the issues of satire
raised by Paulsen have resulted in that case being limited
to its “unique facts” by the very court that decided it.
See Rosemont Enterprises, Inc. v. Urban Systems, Inc.,
72 Mise. 2d 788, 340 N.Y.S.2d 144 (1973). See also
Groucho Marx Productions, Inc. v. Playboy Enterprises,
Inc. (No. 77-1782, S.D.N.Y., filed December 30, 1977).

In Current Audio the court correctly concluded that
Elvis Presley’s appearance at a press conference was not
part of the exercise of his “right of publicity” (which was
accorded express recognition) and that, in effect, his
statements at the press conference were intended as

= a

news and were freely available for that purpose.* In
support of its holding, the court opined that: “A press
conference stands as the very symbol of a free and open
press...” Accordingly, it refused to enjoin defendant
from marketing a magazine which included a phonograph
recording of a portion of Presley’s press conference. No
suggestion can reasonably be made by petitioners that
celebrity souvenir posters stand as the very symbol of
a free and open press.

Most significantly, the so-called memorial poster is
simply not a genuine attempt to convey news. The addi-
tion of the words “In Memory . . . 1935-1977” to Mr.
Presley’s picture is a mere subterfuge — a disingenuous
and transparent effort to “appropriate the benefit of [Mr.
Presley’s] publicity for a private use... .” Zacchini,
supra, 97 §.Ct. at 2860, Stevens, J. dissenting.

Thus, it is submitted that the District Court below
properly held that “there is no constitutional protection
for selling posters of Elvis Presley as Elvis Presley”
(AA-12), that the Court of Appeals properly held that
petitioner Pro Arts’ insertion of the legend “In Memory”
did not place “its poster in the same category as one
picturing a presidential candidate, albeit a mock candi-
date” and therefore its poster “was not privileged as
celebrating a newsworthy event” (C-15) and that both
courts correctly rejected petitioners’ specious privilege
argument.

®In that case, decided several years prior to Zacchini, the court

refused to enjoin a magazine from publishing in 2+ iy
record form excerpts from a press conference held by Mr. Pres-
ley on the grounds that his appearance at the press conference
had made words “newsworthy” and a matter of “public
interest”, thereby investing others with the constitutional right
to disseminate his words. In contrast, respondents are not seek-
ing to enjoin the dissemination of news and the petitioners here
can make no legitimate claim that they are disseminating news.
News of Presley’s death and subsequent events were fully re-
ported by the media. Respondents seek only to preserve the
exclusivity of their rights which petitioners have crassly mis-
appropriated for commercial profit.

— eS

2. NO QUESTIONS RAISED BY PETITIONERS IN
THE INSTANT CASE WERE LEFT UNAN.
SWERED IN ZACCHINI.

Even under the analysis suggested by Justices Powell,
Brennan and Marshall in their dissent in Zacchini, the
same result reached by the majority in Zacchini would be
mandated in the instant case. In balancing an enter-
tainer’s right of publicity and the public’s First Amend-
ment rights, the dissent stated that an entertainer, hav-
ing made a matter public, could not “consistently with
the First Amendment, complain of routine news repori-
age.” (emphasis added). Whatever else petitioners
might argue, they would be hard pressed to suggest that
their mass merchandised sale of their celebrity souvenir
poster constitutes “routine news reportage”.

The dissent also stated that it would have held that
“When a film is used ... for a routine portion of a
regular news program, ...the First Amendment [would]
protect the station from a ‘right of publicity’ or ‘appro-
priation’ suit, absent a strong showing by the plaintiff
that the news broadcast was a subterfuge or cover for
private or commercial exploitation.” (emphasis added).
As previously discussed, petitioners’ merchandising of
celebrity souvenir posters is in no sense tantamount to “a
routine portion of a regular news program”. Moreover,
in the instant case petitioners’ intention to engage in
private commercial exploitation is unquestioned ; the only
subterfuge is the disingenuous argument advanced in the
petition that the poster carries a “newsworthy” message
of public interest.

ed

a

38. THE INJUNCTION ENTERED AGAINST PETI-
TIONERS IS SUFFICIENTLY NARROW TO RE-
STRAIN PETITIONERS WITHOUT ANY ABRO-
GATION OF FIRST AMENDMENT RIGHTS.

As has been demonstrated above, petitioners’ assertion
that their celebrity personality poster, which colistitutes
nothing more than souvenir merchandise, is entitled to
First Amendment protection is without support in law or
fact. Accordingly, petitioners’ contention that the in-
junction entered against them is impermissibly overbroad
is baseless.

Petitioners intentionally seek to confuse the issue when
they state that “the injunction here . . . mandates blanket
suppression of all future uses of the Elvis Presley name,
likeness, or image...” (petition, p. 19). In fact, peti-
tioners have merely been enjoined from manufacturing,
distributing, or selling posters identical or similar to the
offending commercial celebrity poster or utilizing for
commercial profit the name, image or likeness of Elvis
Presley. No prohibition against the use of Presley’s
name, likeness or image has been imposed upon, or sought
by respondents with respect to, any news or informa-
tional coverage, whether in magazines, newspapers, tele-
vision programs, books or other media relating to Elvis
Presley’s life or death.

The entry of the preliminary injunction in this action,
contrary to petitioners’ claim, has had absolutely no
chilling or dampening effect on members of the communi-
cations media with respect to the use of Presley’s name,
image or likeness. To the contrary, the fact of Presley’s
death, which is the only arguably “newsworthy” item
conveyed by petitioners’ poster, has been communicated
to the public ad nauseum by every organ of the communi-
cations media. The terms of the injunction restrain only
petitioners and only msofar as such use is for commercial
profit. Such an injunction is surely sufficiently limited to

= i

protect respondents’ rights without impinging upon any
First Amendment rights of petitioners or any other
person.

CONCLUSION

It is respectfully submitted that for all the foregoing
reasons, the petition for writ of certiorari should be
denied.

Respectfully submitted,

MicHakt C, SILBERBERG

645 Fifth Avenue

New York, New York 10022
(212) 935-9800

ARTHUR FIELDS AND

Epwarp A. Woops

9401 Wilshire Boulevard
Ninth Floor

Beverly Hills, California 90212
(213) 273-6333

Attorneys for Respondents

AA-1
APPENDIX AA
Opinion of the District Court

UNITED STATES DISTRICT COURT
Southern District of New York

No. 77 Civ. 4400 (CHT)
Oct. 12, 1977

—--—--

Factors Erc., Ino. anp Boxcar Enterprises, Ino.,
Plaintiff's,
vs.

Creative Carp Company, THE PostermMat Ino., Spec.
Carp & Girt Matt, Ino., anp THE Carp CENTER,

Defendants.

AA-2
APPENDIX AA,

Opinion of the District Court
Factors Erc., Inc. anp Boxcar ENTERPRISES, INC.,
Plaintiffs,
vs.

Creative Carp Company, THE PosterMar Inc., SPECIAL
Carp & Girt Matt, Inc., anp THE Carp CENTER,

Defendants.
No. 77 Civ. 4400 (CHT).

United States District Court,
S. D. New York.
Oct. 12, 1977.

OPINION
TENNEY, District Judge.

Plaintiffs have moved this Court for a preliminary in-
junction pursuant to Rule 65 of the Federal Rules of
Civil Procedure (“Rules”) to restrain defendant Creative
Card Company from the manufacture, distribution and
sale of any poster or other commercially exploitive souve-
nir merchandise bearing the likeness of the late enter-
tainer Elvis Presley. Plaintiffs claim possession of an
exclusive right to that activity, based on a “right of
publicity” assigned by Elvis Presley in life. Defendant
Creative Card Company, an Illinois corporation, disputes
the existence and assignment of this right, and has also
moved for dismissal under Rule 12(b) on the grounds
of lack of personal jurisdiction and/or improper venue
in the Southern District of New York. The Court has
determined that it has jurisdiction over defendant Cre-
ative Card Company and that venue is properly laid here.

—

te =

AA-3

Accordingly, the motion to dismiss under Rule 12(b) is
denied. In addition, by the tests for preliminary relief
articulated in this circuit, I conclude that plaintiffs have
made “a clear showing of . . . probable success on the
merits and possible irreparable injury.” Sonesta Inter-
national Hotels Corp. v. Wellington Associates, 483 F.2d
247, 250 (2d Cir. 1973) (emphasis in the original). There-
fore, plaintiffs’ motion under Rule 65 is granted. The
reasons for the Court’s conclusions are set forth below.

THE FACTS

On August 16, 1977, Elvis Presley, without doubt a
world famous celebrity-entertainer, died at the age of
forty-two. During life his professional career and the
commercial exploitation of his person were managed
exclusively by “Colonel” Tom Parker,’ as demonstrated
by the deposition of Col. Parker begun on September 30,
1977 and continued on October 1, 1977, and the docu-
ments appended thereto. On March 26, 1956, Presley and
Parker entered into a written management contract
which, although it does not specifically allude to souvenir
merchandise, authorizes Parker to act exclusively for
Presley “in any and all fields of public and private enter-
tainment . . . embracing any and all branches thereof
now known or hereafter coming into existence.” Plain-
tiffs’ Supplemental Memorandum, Exhibit C. However,
that items of merchandise were clearly contemplated by
the parties becomes apparent in later agreements includ-
ing, inter alia, one concluded a few months later among
Parker, Presley and a Mr. Saperstein of Special Projects,
Inc., a merchandising company. Id., Exhibit D. The
Special Projects organization was made “exclusive agent”
for a period of time to license other firms “in connection

1Col. Parker acknowledges that his title is of the Southern rather

than the military variety in his deposition, September 30, 1977,
page 4, line 27.

AA-4

with the sale, marketing and exploitation of consumer
items.” Id.

All manner of merchandise was thereafter covered by
numerous licensing agreements with sub-licensees. E. g.,
id., Exhibits E, F & G. Although these and the Special
Projects agreement, supra, refer to the late 1950’s, an
early period in the Presley career, a subsequent merchan-
dising agreement between Presley and Parker, the latter
doing business as “All Star Shows,” dated May 25, 1963,
id., Exhibit H, refers to the production of and distribu-
tion of profits from “Merchandising — Special Souvenir
Folios and Pictures.” Later signed agreements between
Parker and Presley specifically allude to “merchandising
agreement[s].” The last of these is dated January 22,
1976. Id., Exhibits I & J.

Plaintiff Boxcar Enterprises, Inc. (“Boxcar”) entered
into the Presley-Parker relationship as a corporation
formed in January 1974. The Court does not have before
it the certificate of incorporation, but Col. Parker has
testified that he owned 56% of the shares and that Presley
and one Tom Diskin, President of Boxcar, each owned
22%. Parker Depos. at 49, lines 21-26. There is, from
this point on, some confusion as to which entity — Boxcar
or Col. Parker doing business as All Star — handled mer-
chandising, but there are numerous exhibits of checks
issued from Boxcar to Elvis Presley bearing such nota-
tions as “For Royalty Earnings From Sales of Elvis
Presley Souvenir Material On Tour June 25th through
July 5th, 1976 as per contractual agreement.” Plaintiffs’
Supp. Mem. Exhibit L. (Further checks and royalty
statements from Boxcar to the Elvis Presley Estate have
also been submitted. Id. Exhibit L.) On August 18, 1977,
two days after the entertainer’s death, plaintiff Boxcar
entered into an agreement with plaintiff Factors Etc.,
Inc. (“Factors”) which purported to afford the latter an
exclusive license to use the Presley likeness in connection

AA-5

with all souvenir merchandise. Complaint, Exhibit A.
On August 24, 1977, Vernon Presley, father of the de-
ceased and executor of his estate, agreed to a royalty
arrangement with Boxcar as “Merchandising Represen-
tatives fer the Elvis Presley Estate.” Plaintiffs’ Supp.
Mem. Exhibit N. Vernon Presley also wrote te Col.
Parker on August 23, 1977 asking Col. Parker to “carry
on according to the same terms and conditions as stated
in the contractual agreement you had with Elvis dated
January 22, 1976.” Id., Exhibit M.

DEFENDANT'S POSITION

Defendant argues along several lines, the most ger-
mane of which are: (1) that plaintiff Boxcar never ac-
quired the exclusive right to merchandise the Presley
name and image; (2) that even if Boxcar did have such
a right in Presley’s lifetime, that right died with the
entertainer; (3) that this Court has no jurisdiction of
defendant and/or venue is improperly laid here. Al-
though the Court would normally dispose of the proce-
dural questions of jurisdiction and venue before moving
to the substantive issues, in this particular case the latter
must be considered first because the procedural issues
depend on a clear definition of the applicable substantive
rights.

THE MERITS
The Presley/Parker/Boxcar/Factors Relationship

It is hornbook law that where there is ambiguity in a
contract the intent of the parties may be ascertained by
reference to their subsequent course of conduct. Gordon
v. Vincent Youmans, Inc., 358 F.2d 261 (2d Cir. 1965) ;
Portsmouth Baseball Corp. v. Frick, 278 F.2d 395 (2d
Cir.), cert. denied, 364 U.S. 831, 81 S.Ct. 71, 5 L.Ed.2d 58
(1960) ; 1 Corbin, Contracts § 101 (1964). For more than
twenty years, Elvis Presley and Col. Parker had a work-

AA-6

ing relationship where the division of labor was appar-
ent: one performed, the other promoted. If some of the
documents memorializing this activity are less artful
than those which some professional counsel can draft,
they are no less valid. Defendant points to inconsisten-
cies in the statements of Col. Parker and others as to
who held the right to “merchandise” the Presley image
during his lifetime — Presley himself, Parker, or, eventu-
ally, Boxcar. In view of the Parker-Presley agreements,
the uncontested allegation that Presley himself was a
22% shareholder of Boxcar and the fact that Boxcar paid
royalties to Elvis Presley for souvenir merchandise sold,
it seems clear enough, at least for purposes of a prelim-
inary injunction, that Presley gave Parker leave to ex-
ploit his image through merchandise and that Boxcar
was, in recent years, the vehicle through which such
merchandising was carried on. Defendant’s allusions to
defective links in the chain of title in Boxcar, Defendant’s
Mem. in Oppos. 15-18, lose sight of the true facts: these
entities involved the same people. With the exception of
Diskin they had been doing business together for twenty
years.* None of the parties to the Presley-Parker busi-
ness relationship appears to have been dissatisfied. Ver-
non Presley stated on CBS television on October 3, 1977:
“Colonel Parker is an honest man. And I think that’s
where the big organization and the big togetherness
comes, you know. Once you find out you don’t have to
worry about a guy being your manager, what he can do for
you, he handles it. You do the show. Everything works
fine.” Plaintiffs’ Supp. Mem. at 4. The Court takes note
of the fact that these remarks were represented as having
been recorded prior to Presley’s death.

? Defendant has no standing to attack the administration of Box-
car's financial affairs or to raise inferences of self-dealing; that
is the province of the state of incorporation in a quo warranto
proceeding. American Co-op Serum Association v. Anchor Serum
Co., 153 F.2d 907 (7th Cir.), cert. denied, 329 U.S. 721, 67
S.Ct. 57, 91 L.Ed. 625 (1946).

a NT mT TT

AA-7

The Right of Publicity

By far the most interesting issue in this case is whether
Boxcar had anything to transfer to Factors when it en-
tered into the August 18, 1977 “exclusive licensing” con-
tract. After consulting the case law and certain commen-
taries in this field, e. g., Gordon, Right of Property in
Name, Likeness, Personality and History, 55 Nw.U.L.
Rev. 553 (1960) ; Nimmer, The Right of Publicity, 19 Law
& Contemp. Probl. 203 (1954); Note, The Right of Pub-
licity — Protection for Public Figures and Celebrities,
42 Brooklyn L.Rev. 527 (1976), I have concluded that it
did. It appears that a recognized property right, the
“right of publicity,” inhered in and was exercised by
Elvis Presley in his lifetime, that it was assignable by
him and was so assigned, that it survived his death and
was capable of further assignment.

The “right of publicity” is not a new concept, but, to
the detriment of legal clarity, it has often been discussed
only under the rubric “right of privacy.” It is said that
the right of privacy embraces “four distinct kinds of
invasion of four different interests of the plaintiff, which
are tied together by the common name, but otherwise
have almost nothing in common except that each repre-
sents an interference with the right of the plaintiff ‘to be
let alone.’”” W. Prosser, Torts 804 (4th ed. 1971) (empha-
sis added). It is this language which is at the root of the
conceptual difficulty in the “right of publicity” area. Dean
Prosser recognized that the fourth species of right of
privacy tort, i. e., the appropriation of plaintiff’s name or
likeness for defendant’s benefit, is distinct from “intru-
sion upon the plaintiff’s physical solitude or seclusion,”
“public disclosure of private facts,” or “false light in the
public eye,” id. at 807, 809, 812, in that “appropriation”
is the only one which “involves a use for the defendant’s
advantage.” Id. at 814. However, Prosser has failed to
discuss the fact that appropriation of plaintiff’s name

AA-8

and likeness for defendant’s financial advantage has dif-
ferent consequences in a case where the celebrity himself
has attempted to commercialize his own name and face.
It is evident that courts address intrusions on feelings,
reputation and privacy only when an individual has
elected not to engage in personal commercialization. By
contrast, when a “persona” is in effect a product, and
when that product has already been marketed to good
advantage, the appropriation by another of that valuable
property has more to do with unfair competition than it
does with the right to be left alone. See Ettore v. Philco
Television Broadcasting Corp., 229 F.2d 481, 490 (3d Cir.
1956) ; Uhlaender v. Henricksen, 316 F.Supp. 1277, 1282
(D.Minn. 1970).

This distinction was recognized recently in the United
States Supreme Court. Zacchini v. Scripps-Howard
Broadcasting Co., 433 U.S. 562, 97 S.Ct. 2849, 53 L.Ed.2d
965 (1977). A television station had broadcast plaintiff’s
15-second “human cannonball” act in its entirety and, in
response to plaintiff’s suit for invasion of his “right of
publicity,” claimed the first amendment privilege to re-
port newsworthy events. The constitutional argument
was persuasive to the Ohio Supreme Court, but the
United States Supreme Court reversed. In its discussion
the Zacchini Court stated:

“(T]he State’s interest in permitting a ‘right of publi-
city’ is in protecting the proprietary interest of the
individual in his act in part to encourage such enter-
tainment. As we later note, the State’s in/erest is
closely analogous to the goals of patent and copyright
law, focusing on the right of the individual to reap the
reward of his endeavors and having little to do with
protecting feelings or reputation. . . . An entertainer
such as petitioner usually has no objection to the wide-
spread publication of his act so long as he gets the

commercial benefit of such publication.
* . e

AA-9

“<The rationale for [protecting the right of publicity]
is the straightforward one of preventing unjust enrich-
ment by the theft of good will. No social prrpose is
served by having the defendant get for free some as-
pect of the plaintiff that would have market value and
for which he would normally pay.’ Kalven, Privacy
in Tort Law — Were Warren and Brandeis Wrong’,
31 Law and Contemporary Problems, 326, 331 (1966).”
Id. at 573-576, 97 S.Ct. at 2856-57 (footnote omitted).®

This circuit was in the vanguard in recognizing the
right of publicity and its assignability. In Haelan Labo-
ratories, Inc. v. Topps Chewing Gum, Inc., 202 F.2d 866
(2d Cir.), cert. denied, 346 U.S. 816, 74 S.Ct. 26, 98 L.Ed.
343 (1953), plaintiff manufacturer held a baseball play-
er’s exclusive product endorsement contract and sued a
rival manufacturer for infringement. In finding for the
plaintiff, the court stated:

“We think that, in addition to and independent of that
right of privacy (which in New York derives from
statute), a man has a right to the publicity value of his
photograph, i. e., the right to grant the exclusive privi-
lege of publishing his picture, and that such a grant
may validly be made ‘in gross,’ i. e., without an accom-
panying transfer of a business or of anything else.
Whether it be labelled a ‘property’ right is immate-

’While the Court stated that the facts in Zacchini present

“what may be the strongest case for a ‘right of publicity’ —

involving not the appropriation of an entertainer’s reputation

to enhance the attractiveness of a commercial uct, but

the appropriation of the very activity by mw the enter-

tainer acquired his reputation in the first place,” id.,

instant action does not —— the Presley name or his fact
enhancing a product — Presley is the product. Furthermore, it
is not unreasonable to conclude that Elvis Presley’s act included
the totality of his a — performance, image and name. At
the very least the 1 ree neyo ase
performer having a high market value, as evidenced by the
competition which has given rise to this case.

AA-10

“This right might be called a ‘right of publicity.’ .. .”
Id. at 868.

More recent decisions have clearly labelled the “right
of publicity” a species of “property.” Cepeda v. Swift &
Co., 415 F.2d 1205 (8th Cir. 1969); Price v. Hal Roach
Studios, Inc., 400 F.Supp. 836 (S.D.N.Y.1975) ; Sharman
v. C. Schmidt @ Sons, Inc., 216 F.Supp. 401 (E.D.Pa.
1963) ; cf. Ettore v. Philco Television Broadcasting Corp.,
supra; O’Brien v. Pabst Sales Co., 124 F.2d 167 (5th Cir.
1941), cert. denied, 315 U.S. 823, 62 S.Ct. 917, 86 L.Ed.
1220 (1942) ; id. at 170-71 (Holmes, J., dissenting) ; Grant
v. Esquire, Inc., 367 F.Supp. 876 (S.D.N.Y.1973).

Price v. Hal Roach Studios, Inc., supra, a case decided
in this district, is particularly interesting because it is the
only reported decision known to this Court where the
right of publicity was deemed descendible. In that case
the widows of Stan Laurel and Oliver Hardy and another
party claiming the right to exploit the Laurel and Hardy
image through merchandise sued to restrain defendants
from infringing on that right. Plaintiffs set up the exclu-
sivity of a prior contract covering commercial merchan-
dise which had been entered into by Stan Laurel, Hardy’s
widow, and the plaintiff licensee. Although there was no
evidence to show that the comedians had ever exploited
their own personalities through merchandising efforts,
the Price court, relying on the distinction between a per-
sonal right of privacy which is extinguished at death and
a valuable, alienable property right in name and image,
i. e., the “right of publicity,” asked “what policy should
operate to cut off this [latter] right at death?” 400 F.
Supp. at 844. The Price court could find none, and on the
much stronger facts here presented, this Court adopts
that view. There is no reason why the valuable right of
publicity — clearly exercised by and financially benefit-
ing Elvis Presley in life — should not descend at death
like any other intangible property right.

AA-11

One of the cases upon which defendant relies is thus
easily distinguishable. In Guglielmi v. Spelling-Goldberg
Prods., 140 Cal.Rptr. 775 (Cal.Ct.App., 2d App.Dist.
1977), the heir of Rudolph Valentino laid exclusive claim
to the actor’s surviving right of publicity and protested
the contents of a Valentino biography produced by de-
fendants. Although the court determined that biographi-
cal material about Valentino was protectible under the
first amendment (a conclusion with which this Court
agrees) and that the right-of-publicity action was merely
a ploy for bringing an otherwise impermissible defama-
tion action, the court nevertheless addressed the right-of-
publicity claim:

“[ We hold that the right to exploit name and likeness
is personal to the artist; if not exploited by him during
his life, his name and likeness may be used by another
without liability....” Id. at 779 (emphasis added).

Although the facts of this case dictate a different out-
come, this Court’s legal conclusion is in complete harmony
with the holding in the Guglielmi case: Elvis Presley did
in life actively exploit protectible commercial rights
which defendant here seeks to invade.‘

The other cases cited by defendants are far off the
mark. Paulsen v. Personality Posters, Inc., 59 Misc.2d

‘Defendant relied as well on another California case in which the
heirs of Bela Lugosi asserted a right-of-publicity claim based on
the actor’s image as Dracula. Examination of the intermediate
appellate opinion in that case reveals that while plaintiff was
denied relief on the facts — emt 3 at trial} , the court
recognized a right of publicity, provided it was actively ex-
ploited by the celebrity in life. However, the California Su-
preme Court has now accepted the case for hearing, Lugosi v.
Universal Pictures, Cal.App. 139 Cal.Rptr. 35 (1977), and that
procedural step operates to render the intermediate appellate
opinion a nullity, having no force or effect as a judgment or
er as a statement of legal principle. Knouse v. Nimocks,
8 Cal.2d 482, 66 P.2d 438 (1937). Therefore, the intermediate
appellate opinion cannot be considered, either by defendant

which relies on it, or by this Court, which can distinguish it.

AA-12

444, 299 N.Y.S.2d 501 (Sup.Ct.1968), involved a comedian
who thrust himself into a political campaign as a bogus
presidential candidate and whose picture in that guise
was widely circulated as a poster. The case appears to
have been decided in favor of the unlicensed poster man-
ufacturer because Paulsen’s choice of the political arena
for satire made him “newsworthy” in the first amendment
sense.© There is no constitutional protection for selling
posters of Elvis Presley as Elvis Presley.

Finally, defendants cite Maritote v. Desilu Productions,
Inc., 230 F.Supp. 721 (N.D. Ill. 1964), aff’d, 345 F.2d 418
(7th Cir.), cert. denied, 382 U.S. 883, 86 S.Ct. 176, 15
L.Ed.2d 124 (1965), where the widow and son of Al
Capone sued the producers of a television series which
depicted Capone in dozens of episodes, purported to
quote him in conversation and so on. Both the trial court
and the appellate court in Maritote refused to consider
the claim of “unjust enrichment” advanced by plaintiffs, a
claim which may be construed as a poorly articulated
“right of publicity” assertion. In the opinion of this
Court, the decision against plaintiffs was quite correctly
taken in that any “right of privacy” died with Al Capone
and could not thereafter be invaded. Furthermore, there
could be no valid, surviving claim based on a right of
publicity as this Court construes it. Whatever else Al
Capone was doing in life, he was not trying to create an
image with widespread commercial appeal.

On the basis of the foregoing, the Court concludes that
the facts of the instant case demonstrate a strong like-
lihood that plaintiffs will prevail on the merits at trial.

’The Paulsen case was held — to its facts” only a few years
later by Rosemont Enterprises, Inc. v. Urban Systems, Inc., 72
Misc.2d 788, 340 N.Y.S.2d 144 (Sup.Ct.), modified, 42 A.D.2d
544, 345 N.Y.S.2d 17 (1st Dep’t 1973) (impermissible infringe-
ment on an exclusive license to exploit the name and spistaealliny
of Howard Hughes).

AA-13

Irreparable Harm

Having satisfied one of the Sonesta mandates, 1. e.,
that a preliminary injunction may not issue absent prob-
able success on the merits, the Court must address the
second aspect of that test: whether plaintiff is exposed
to possible irreparable injury. The market for Presley
memorabilia has been described by defense counsel in the
companion action to this one, Factors Etc., Inc. v. Pro
Arts, Inc., D.C., 444 F.Supp. 288 (CHT), as “evanescent,”
and while the Court will not ascribe to one defendant the
opinion of another, the word is probably apt. Further-
more, while defendant in this case has suggested that it
is easily capable of responding in damages, using as a
measure the number of allegedly infringing Elvis Presley
posters that it sells during the period of litigation on the
merits, this argument assumes that any consumer bent on
acquiring an Elvis Presley poster will, if plaintiffs’ sim-
ilar merchandise is not before him, purchase defendant’s
merchandise rather than abandon the whole project.
Suffice it to say that the vagaries of consumer buying are
such that proof of damages would be extremely difficult.
See Omega Importing Corp. v. Petri-Kine Camera Co.,
451 F.2d 1190 (2d Cir. 1971).

However, the Court need not determine possible irrep-
arable damage by speculating on the caprice of the con-
sumer market. Plaintiff Factors claims that its licensing
program for articles other than posters is jeopardized by
its inability to grant exclusive rights. In support of this
proposition, it submits the affidavit of Daniel H. Lidman,
one of the attorneys representing plaintiffs, whose de-
tailed assertions, apparently made on personal knowl-
edge, reveal that a prominent toy manufacturer with plans
to market an Elvis Presley jigsaw puzzle as a sublicensee
of Factors has already been beaten to the marketplace
by another “unlicensed” manufacturer. The Court con-

AA-14

cludes that there is a rush to capitalize on the Presley
image in this postmortem period,® and that if Factors
has exclusive property rights in the manufacture and
marketing of Presley souvenir merchandise, as it so
appears, then it must be protected at this time.

JURISDICTION

Having identified the right asserted here as “property”
and its infringement as a species of unfair competition,
it is to the law of that tort that the Court looks to deter-
mine the correctness of jurisdiction in this district. Jur-
isdiction is based on diversity of citizenship, 28 U.S.C.
§ 1332, and in a diversity action a federal court must de-
termine a question of personal jurisdiction according to
the laws of the state in which it is sitting. Arrowsmith v.
United Press Int'l, 320 F.2d 219 (2d Cir. 1963) (en banc).
In this case the applicable law is that of New York, spe-
cifically the provision of its “long-arm” statute which
gives New York courts jurisdiction over any nondomicil-
iary who commits “a tortious act within the state.”
N.Y.C.P.L.R. § 302(a)(2). As to the tort of unfair com-
petition “the wrong takes place . . . where the passing
off occurs.” Vanity Fair Mills, Inc. v. T. Eaton Co., 234
F.2d 633, 639 (2d Cir. 1956), cert. denied, 352 U.S. 871,
77 S.Ct. 96, 1 L.Ed.2d 76; see Car-Freshner Corp. v.
Broadway Mfg. Co., 337 F.Supp. 618 (S.D.N.Y.1971) ;
Carter-Wallace, Inc. v. Ever-Dry Corp., 290 F.Supp. 735
(S.D.N.Y.1968). Clearly the Court has jurisdiction over
the defendant on the basis of the sale of its infringing
merchandise in New York.

*The cover of People magazine for October 10, 1977 depicts all
manner of Elvis Presley souvenir merchandise under the head-
line “Remembering Elvis/Imitators, fans & rip-offs launch a
billion dollar industry.”

AA-15

VENUE

Venue in this district is less clear. In a diversity case
venue is covered by 28 U.S.C. § 1391(a), which reads:

“A civil action wherein jurisdiction is founded only
on diversity of citizenship may, except as otherwise
provided by law, be brought only in the judicial dis-
trict where all plaintiffs or all defendants reside, or in
which the claim arose.”

Defendant contends that this district is not “where the
claim arose,” as that phrase has been construed, despite
the fact that its allegedly infringing goods are sold here.
It is true, as defendant asserts and courts have recog-
nized, that in a “transitory” cause of action like the
instant one, where the tort arises at the point of pur-
chase, there is a danger that the “claim arose” language
in section 1391(a) might be construed to permit a plain-
tiff to sue in any district into which the defendant has
shipped infringing goods. In Honda Associates, Inc. v.
Nozawa Trading, Inc., 374 F.Supp. 886, 890 (S.D.N.Y.
1974), a trademark action, the court quite correctly would
not infer any such legislative intent. It therefore framed
the issue thusly: does “ ‘the claim’. . . mean the largest
part of the claim, a substantial part thereof, or any part
thereof”? Because the defendant in Honda had sent only
20 of the allegedly infringing mail order catalogues into
New York in five years and had sold a total of only $37
worth of allegedly infringing goods in New York in four
years, the Honda court concluded that defendant’s con-
tacts with this district, for venue purposes, were “minis-
cule” and that the claim did not “arise” here in the statu-
tory sense. Although it analogized its method to a
“weighing of contacts” analysis used in securities and
antitrust cases, the court in Honda refused to determine
whether “the largest part of the claim” or “a substantial
part thereof” was necessary to support venue, and spe-
cifically rejected a standard by which trademark infringe-

AA-16

ment cases could only be brought where the greatest
volume of infringing actively occurred. Id. at 892.

Other courts have found the Honda “more than min-
iscule contacts” test appropriate for determining venue
in situations similar to that at bar. In Tefal, S.A. v.
Products Int’l Co., 529 F.2d 495 (3d Cir. 1976), the court
found venue proper on the basis of five percent of de-
fendant’s infringing sales having been made in the dis-
trict (although no dollar volume of sales was adduced
in evidence) and because live sales demonstrations had
been conducted .n the district. In Transamerica Corp. v.
Transfer Planning, Inc., 419 F.Supp. 1261 (S.D.N.Y.
1976), venue was held improper where defendant had
never earned a cent from New York sales, had no sales
representative in New York and never sent an employee
or agent into the district for business purposes. Both
cases were decided by the yardstick of the Honda test.

The facts in this case clearly show “more than minis-
cule contact” with this district. By the affidavits of Mr.
Burton Wall, president of defendant Creative Cards, the
sales of that corporation for the year ending July 1977
exceeded seven million dollars, Wall Affidavit, sworn to
September 27, 1977, 24; approximately 10% of that
business (or $700,000 for that period) was in posters,
Wall Affidavit, sworn to October 4, 1977, 13; New York
accounted for 3% of poster sales (which, assuming na-
tionwide sales for defendant’s posters, makes New York,
if not the most substantial market, then certainly not a
miniscule one); and sales of Elvis Presley posters
“through distributors, jobbers and retailers” in New York
accounted for 0.8% of all poster sales for the eight
months ending August 31, 1977. Id.

The jumble of figures may be reduced to this: Creative
Card, through its C/C Sales Division, sold approximately
$7,000 worth of Elvis Presley posters in New York in the
first eight months of 1977. Defendant does not tell us

AA-17

whether any of its other markets for Elvis Presley post-
ers is more substantial than New York. Furthermore,
these figures do not convey whether there was an increase
in demand for Elvis Presley posters in New York after
the entertainer’s death, nor are they enlightening as to
projected sales in New York alone and as compared to
other districts.

Even were this Court to conclude that $7,000 of sales
to the New York public in the first eight months of 1977
is “miniscule” — and such a conclusion cannot be reached
in the absence of evidence demonstrating much greater
sales of that merchandise in other districts — there are
unrefuted allegations in the documents submitted by
plaintiffs which add contacts beyond mere sales and har-
monize the case more closely with Car-Freshner Corp. v.
Broadway Mfg. Co., supra. In that case venue was held
proper in this district where defendant had a sales rep-
resentative in New York and its allegedly infringing
products were sold in many retail outlets in the state.
Plaintiffs allege similar facts here. They have submitted
a sales order placed with David Oestreich, Inc., 225 Fifth
Avenue, New York, N.Y. 10010, covering the purchase
of six dozen of defendant’s Elvis Presley posters. In the
order form space marked “Factory Represented” is writ-
ten “C & C Sales” (sic). Rohner Affidavit, sworn to
October 4, 1977, Exhibit B. Defendant’s poster is ap-
purently being sold in New York through the Woolworth
chain. Adler Affidavit, sworn to October 4, 1977, 3. In
addition, plaintiffs initially joined several other retail
outlets in this action, all of whom were purportedly
selling defendant’s poster. Rohner Affidavit, sworn to
September 1, 1977, ff 4-7. (These named defendants have
apparently defaulted.) Finally, plaintiffs have submitted
the catalog from the New York Gift Show held August
14-19, 1977. Rohner Affidavit, sworn to October 4, 1977,
Exhibit C. The catalog identifies both Creative Card
Company and David Oéestreich, Inc. as _ exhibitors

AA-18

and, on the David Oestreich, Inc. descriptive page,
states that Oestreich is “represented by” one Bill Dustin,
who plaintiffs allege is connected with defendant Crea-
tive Card. Id. {4. Defendant acknowledges that Bill
Dustin is “an employee of C/C Division of Creative
Card.” Wall Affidavit, sworn to September 21, 1977, { 16.

The Court is satisfied that on the facts presented venue
is fairly laid in this district. Before leaving the subject,
however, it is necessary to address defendant’s general
argument against venue here. Creative Card states that
it does all of its sales through independent distributors,
jobbers or retailers in New York whose only contacts
with the Illinois corporation are by phone or mail; that it
is these independent entities who sell the allegedly in-
fringing goods in the New York market; that Creative
Card ships f. o. b. Chicago with the result that title to the
goods passes in Illinois. Wall Affidavit, sworn to October
4, 1977, {[ 2-9. A fortiori, the argument goes, defendant
has no “contacts” with this district in the venue sense
and therefore the instant suit “could and should” have
been brought in the Northern District of Illinois. De-
fendant’s Mem. 41. The evil in this contention is the
converse of that addressed in Honda, where the concern
was that a too-broad interpretation of “where the claim
arose” could expose a multi-state tortfeasor to suit in any
forum. Were the Court to accept the defendant’s argu-
ment that the structure of its business insulates it from
suit anywhere except in its resident forum, it would be
sanctioning a construction of section 1391(a) that gives
plaintiff no choice at all in a multi-state tort, and it would
be impermissibly cancelling the words “where the claim
arose” from that statute. This cannot be done.

CONCLUSION

Based on the foregoing analysis, defendant’s motion
to dismiss the instant claim for want of personal juris-

AA-19

diction and/or improper venue under Rule 12(b) is de-
nied, and plaintiffs’ request for preliminary relief pur-
suant to Rule 65 is granted. Defendant Creative Card
Company will be enjoined from manufacturing, distribu-
ting, selling or by any other means profiting from souve-
nir merchandise bearing the name or likeness of the late
Elvis Presley until the merits of the case are determined.

Order is being filed simultaneously herewith.

AA-20
CERTIFICATE OF SERVICE

I, Edward A. Woods, one of the attorneys for re-
spondents, hereby certify that on the 3lst day of January,
1979, I served a true and correct copy of the foregoing
Respondents’ Brief in Opposition upon George Berger
and Gregory W. Happ, attorneys for petitioners, by send-
ing copies by guaranteed Express Mail, postage prepaid,
addressed to George Berger, Esq., Phillips, Nizer, Ben-
jamin, Krim & Ballon, 40 West 57th Street, New York,
New York 10019 and Gregory W. Happ, Esq., 238 West
Liberty, Medina, Ohio 44256, their last known respective
addresses.

Edward A. Woods

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385005_1954%3A2. Public record. Not legal advice.
