Sheldon v. Metro-Goldwyn Pictures Corporation

309 U.S. 390 (1940)

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Nature of the Case

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Facts

Sheldon's (P) 'Dishonored Lady' was based upon the trial in Scotland, in 1857, of Madeleine Smith for the murder of her lover,-a cause celebre included in the series of 'Notable British Trials' which was published in 1927. The play was copyrighted as an unpublished work in 1930 and was produced here and abroad. MGM (D) took the title of their motion picture 'Letty Lynton' from a novel of that name written by an English author, Mrs. Belloc Lowndes, and published in 1930. That novel was also based upon the story of Madeleine Smith and the motion picture rights were bought by D. There had been negotiations for the motion picture rights in P's play, and the price had been fixed at $30,000, but these negotiations fell through. Ds in producing the motion picture in question worked over old material; 'the general skeleton was already in the public demesne. A wanton girl kills her lover to free herself for a better match; she is brought to trial for the murder and escapes'. Ds also resorted to P's copyrighted play. They were not innocent offenders. From comparison and analysis, the Court of Appeals concluded that they had 'deliberately lifted the play'; their 'borrowing was a deliberate plagiarism.' It is from that standpoint that we approach the questions now raised. Ds contend that the material taken by infringement contributed in but a small measure to the production and success of the motion picture. They say that they themselves contributed the main factors in producing the large net profits; that is, the popular actors, the scenery, and the expert producers and directors. Both courts below have sustained this contention. The District Court thought it 'punitive and unjust' to award all the net profits to P. The court thought an allowance to petitioners of 25 percent. of these profits was just. Even so, the District Court awarded all the net profits to petitioners, feeling bound by the decision of the Court of Appeals in Dam v. Kirk La Shelle Co., 2 Cir., 175 F. 902. The Court of Appeals decided that there should be an apportionment and that it could fairly be made.