Majority
Appeal by defendant from a judgment for plaintiffs in an action to recover damages for the breach of an oral agreement granting defendant the
Stanley Johnston, referred to as the “author,” was on the aircraft carrier Lexington in the battle of the Coral Sea in May, 1942. Shortly thereafter he wrote a book entitled, “Queen op the Flat Tops,” subtitled, “The U.. S. S. Lexington And The Coral Sea Battle.” The book was published and copyrighted in the United States in 1942 by E. P. Dutton & Company, Incorporated, referred to as “Dutton.” It was one of the first books published to treat in detail of the activities of an aircraft carrier and its crew in combat. The book is nonfictional. It relates historical facts, warfare in the Pacific. It does not contain any fictional character or characterization as such, or any plot or theme. The author and Dutton at all times have been the owners of the book referred to in the record as the “literary property,” and of the copyright. The book became widely known as “Queen op the Flat Tops.” It attained considerable popularity which endowed the title, “Queen op the Flat Tops,” with considerable value. Up to April 14, 1944, Dutton had sold 170,578 copies of the book throughout the world and had expended the sum of $14,669.71 in advertising and publicizing the book. A substantial number of copies of the book were sold in California. About October, 1942, the author and Dutton employed Myron Selznick Agency, referred to as “Selznick,” to vend motion picture rights in the book. Hugh King, acting as “motion picture literary agent” for Selznick, endeavored to effect a sale, contacting all motion picture companies. King was in exclusive charge of the efforts to sell. Early in 1944, appellant was engaged in the production of a motion picture centered about the operations of an aircraft carrier. The picture, like the book, related to historical facts, warfare in the Pacific. In March or April, 1944, Zanuck, executive vice-president of appellant in charge of production, empowered to make contracts in its behalf, authorized Julian Johnson, appellant's story editor, to purchase the right to the title, “Queen of the Flat Tops.” Johnson contacted King, and on behalf of appellant offered $2,500 for the use of the title alone, telling King that appellant was only interested in buying use of the title. This offer was re
‘ ‘ Subject Queen of the Flat-Tops (Titie purchased)
Through the Myron Selzniek Agency (Hugh King representing) we have just purchased all rights to the title of this book. Price, $20,000, which was the figure of our offer— as we discussed the other day.
This is a book published by E. P. Dutton, written by Stanley Johnston.
Mr. Wasson should know, in closing his contract, that we purchased the title only. (We were not interested in the literary material)
I have not notified anyone of this purchase, except Mr. Zanuek.”
On April 17, Schreiber signed and sent to Wasson, resident studio counsel of appellant, the following:
‘ ‘ Subject Queen of The Flat Tops Title Dear George:
We have purchased all the rights to the title of the book, Queen of the Flat Tops, for the price of $20,000. We were not interested in the property, but Mr .Zanuek wanted us to purchase the title only.
Lew Schreiber Lew Schreiber
Dear George: When the papers are ready
will you please contact Hugh King of the Myron Selzniek Agency.”
Upon receiving this writing from Schreiber, Wasson telephoned Johnson and, in his own handwriting, wrote on the same writing, the following: “J. Johnson says: Sellers retain no rights to title for mo. pie. [motion picture], telev. [television], radio or dramatic purposes. Stanley Johnston, author—Dutton.” On the same day, Wasson told Ferguson, an employee in the legal department of appellant, to prepare a contract and that the contract should contain a “waiver of similarity”—a covenant “not to sue re similarities.” On April 17, Ferguson telephoned King asking in whose name the contract should be drawn. On April 17, King telegraphed Dutton, “Closed at Twentieth Friday
The trial court, among other things, found that respondents are and were at all times the sole owners of the literary work entitled, “Queen Of The Flat Tops, The U. S. S. Lexington and the Coral Sea,” and the copyright thereon; that “as of and prior to April 14th, 1944, the title, ‘Queen of the Flat Tops’ had acquired a secondary meaning with which the use of said title by others than plaintiffs for motion picture, radio, dramatic or television productions or uses would unfairly compete”; that on or about April 14, respondents and appellant, through their respective agents duly authorized and empowered to so contract on behalf of their respective principals, entered into an oral contract, all of the essential terms of which were then and there mutually understood and agreed upon, whereby appellant agreed to buy from respondents and respondents agreed to sell to appellant for a consideration of $20,000, the right to the exclusive use of the title, “Queen op the Flat Tops,” for all purposes of any and every nature, subject only to the reservation of the right of the respondents to continue to use said title in connection with the publication of said literary work; that it was the mutual intention of the parties to be, and they were, hound by said oral contract of April 14, 1944, as of the time of the making thereof, although the said oral contract was subsequently to be reduced to writing; that respondents at all times have been ready, willing and able to perform their part of the contract; that appellant had refused to perform the contract unless the respondents, as an express condition of the appellant’s performance, “would in writing agree to waive all claims and covenant not to sue defendant in the event that any similarity should exist between any motion picture, radio, dramatic or television production by defendant utilizing said title, ‘Queen of the Flat Tops’, and the material contained in the plaintiffs’ literary work hereinbefore referred to, which
Appellant urges first that there was no consideration for its promise to pay $20,000 because, so it says, respondents “had no vendible property right in the words ‘Queen of the Flat Tops’ which they could lawfully transfer to” appellant. Appellant says in this behalf that there is no element of property in a literary title or name capable of being transferred separate and apart from the literary work to which it is appended.
Appellant takes the position here inconsistent with, and contrary to, that which it took in the trial court. There it said: “In the instant case, the contemplated contract was for the sale of a part of a literary property. There is an enormous traffic in literary properties, especially in the motion picture industry. Hundreds of law suits involving literary properties have found their way into conrt. However, we have been unable to discover any reported case dealing with the sale of rights in literary property founded upon an oral contract. . . . Though there are conflicting dicta on the subject, it has long been held that there is a property right in a trade mark or trade name . . . the Supreme Court of California, in Derringer v. Plate (1865) 29 Cal. 292 [ 87 Am.Dec. 170 ], holds that a man may acquire, by adoption and use, a property right in a trade name. It has long been recognized that titles to literary and dramatic works are analogous to trade names and are governed by the same principles. Outcault v. Lamar
It would be sufficient for us to say that appellant, upon appeal, cannot deviate from the position it took in the trial court. (Merchant etc. Assn. v. Kellogg E. & D. Co., 28 Cal.2d 594 , 601 [ 170 P.2d 923 ]; Ayoob v. Ayoob, 74 Cal.App.2d 236 , 247 [ 168 P.2d 462 ], where it was held that the respondent could not claim illegality of consideration upon appeal when he claimed in the trial court that an oral contract was voidable under the statute of frauds and had not claimed illegality of consideration.) As a special defense, appellant pleaded want of consideration for the oral agreement. It vigorously asserts that it did raise the question of the transferability of the title in the trial court. We are inclined to the opinion that it did not raise that question or the question of the transferability of a right to use the title. However, in view of appellant’s insistence that it did raise the question of the transferability of the title in the trial court, and that it did plead want of consideration, and of the importance of the question, we pass on appellant’s contention.
It may be well to emphasize here that what respondents, in fact, granted to appellant, as found by the trial court, was not the title but the exclusive right to use the title for all purposes except in connection with the publication of the book. The author of any product of the mind has an exclusive ownership therein and in the representation or expression
At common law an author has an exclusive property right in his original intellectual production before it is
Under the statutes of this state, and under the common law, respondents were the owners of the right to the exclusive use of the title. This exclusive use included: its use as the title of the book, as the title of a silent motion picture, as the title of a speaking motion picture, as the title of a radio broadcast, as the title of a dramatic production, as the title of a television production,—dealing with the activities of an aircraft carrier in combat. As owners of these rights, respondents could grant the exclusive right to use the title for any one or more of those purposes. Civil Code, section 1044, provides that “Property of any kind may be transferred, except as otherwise provided by this article.” Section 1044 is in article II of chapter I of title IV. The only property which article II says may not be transferred is a “mere possibility, not coupled with an interest.” Many items of property are
If appellant, before or without the grant of April 14, 1944, had threatened to use or had used the title, “Queen op the Flat Tops” for any purpose, it could have been enjoined. The author is protected from misappropriation by pirates and cheats: (Golenpaul v. Rosett, supra, 174 Misc. 114 [ 18 N.Y.S. 2d 889 ], in which the publisher of a magazine was enjoined from using “Information Please,” the title of a radio
Fairly, it may be inferred from the evidence that the contents of the book, the literary material, had lost its value at the time of the transaction between the parties, that the only value was in use of the title. The book, in evidence, is wholly historical. As has been said, it treats largely of the exploits of the carrier Lexington and its crew in the battle of the Coral Sea, which occurred in May, 1942. Selznick was given the agency to sell the book for motion picture purposes in October, 1942. Results were nil up to the time that appellant made an offer for use of the title alone in March or April, 1944. During the negotiations between King and Johnson, King made repeated efforts to persuade appellant to buy the literary material without avail. After appellant acquired the right to use the title Selznick continued its effort to sell the literary material to other motion picture producers without success.
Property rights exist because they promote the general welfore. As society has developed there has been a corresponding evolution in the development of property rights. Matters considered as near revolutionary a few years ago are now accepted as facts. Legal history shows a continual recognition of new interests and a gradual willingness to protect interests in intangible things. (Warren & Brandeis, 4 Harv. L. Rev. 193 ; 4 Ford. L. Rev. 307; 45 Tale L. J. 520.) The right of transfer is one of the inseparable incidents of property. A title signifies origin and a certain standard of competence. (Warner Bros. Pictures v. Majestic Pictures Corp., supra, (2 Cir.) 70 F.2d 310 , 311.) The title, "Queen op the Flat Tops,” was produced by shrewd calculation. It is an original combination, a catchy phrase. It had sales appeal. Much energy, time and money were spent in popularizing it. A thing of such great value should not only be protected but should be subject to transfer for use. There is no valid reason why it should not be held that a transferable property right exists in nse of a title of a book, such as this, for motion picture and other ends. Any other rule would give the owner of the right an empty shell where the literary material, as a book, has lost value. He could prevent another from using the title for such purposes but could realize nothing upon that right unless he was financially and otherwise in a position to use it for such purposes. There is nothing novel, complex or
The next phase of appellant’s argument of want of consideration is that there was no counterpromise on the part of respondents which furnished any consideration for appellant’s promise. This is the point which appellant made in the trial court in support of its plea of want of consideration. The point is wholly without merit. The evidence fully supports the trial court’s finding that “the agreement by plaintiffs to grant to defendant the rights as aforesaid to the use of the title ‘Queen of the Flat Tops’ constituted an agreement by plaintiffs both to confer upon defendant a benefit to which
Appellant next says that “ at no time did the parties consummate a binding contract.” It is said, (a) that neither of the negotiating agents was authorized to enter into a binding contract, (b) that even if Johnson made an offer there was no acceptance by Dutton, (c) that the minds of the parties did not meet on essential elements of the proposed contract, (d) that the parties contemplated that any agreement they might reach was to be reduced to writing and until that was done they were not obligated to each other. It is unnecessary to repeat the evidence which we have stated at length. It is without conflict that both negotiating agents were authorized to enter into a binding agreement, and that Dutton accepted appellant’s offer. If there was any question whether King had authority from Dutton to accept Johnson’s offer, which there was not, it is clear that Dutton ratified King’s acceptance before withdrawal of the offer. The same may be said with respect to the contention that the minds of the parties did not meet on essential elements of “the proposed contract. ’ ’ The contention is not that the minds of the parties did not meet upon the essential elements of “a contract.” Civil Code, section 1550, says: “It is essential to the existence of a contract that there should be: 1. Parties capable of contracting ; 2. Their consent; 3. A lawful object; and, 4. A sufficient cause or consideration.” All of these elements were present. Because the agreement did not embody other matters does not affect its validity. Neither is its validity affected because it does not contain provisions which a super-technical lawyer for a motion picture producer would have insisted upon.
The trial court found that the oral agreement of April 14, 1944, was binding on that date, although it was subsequently to be reduced to writing. It has been held repeatedly that when the respective parties orally agree upon all the terms
Finally, appellant says that if there was an agreement it was broken through no fault of its own in that respondents refused to execute the written agreement proposed by appellant. This contention is so palpably lacking in merit that it should not be considered. Johnson, appellant’s story editor, testified without equivocation that all he purchased was the right to use the title; that he told King, on several occasions, that all appellant wanted was use of the title; that
No other point is presented for our consideration.
Judgment affirmed.
Shinn, Acting P. J., and Wood, J., concurred.
Cases cited
- Derringer v. Plate 29 Cal. 292 p. 806
- Benioff v. Benioff 64 Cal.App. 745 p. 807
- Merchant Shippers Ass'n v. Kellogg Express & Draying Co. 28 Cal.2d 594 at 601 p. 807
- Ayoob v. Ayoob 74 Cal.App.2d 236 at 247 p. 807
- Italiani v. Metro-Goldwyn-Mayer Corp. 45 Cal.App.2d 464 p. 808
- Barsha v. Metro-Goldwyn-Mayer 32 Cal.App. 2d 556 at 561 p. 808, p. 810
- Fidelity Appraisal Co. v. Federal Appraisal Co. 217 Cal. 307 p. 808
- Jaynes v. Weickman 55 Cal.App. 557 at 558 p. 808
- Rosenthal v. Brasley-Krieger Shoe Co. 19 Cal.App.2d 257 at 259 p. 808
- Frohman v. Morris 68 Misc. 461 p. 809, p. 816
- Frohman v. William Morris, Inc. 123 N.Y.S. 1090 at 1092 p. 809, p. 816
- Hier v. Abrahams 82 N.Y. 519 at 522 p. 809
- Union Trust & Savings Bank v. Southern Traction Co. 260 U.S. 744 p. 809
- Ferris v. Frohman 223 U.S. 424 p. 810, p. 814
- Yadkoe v. Fields 66 Cal.App.2d 150 at 159 p. 810, p. 815
- Little v. Hall 18 How. 165 p. 810
- Palmer v. De Witt 47 N. Y. 532 at 539 p. 810
- International News Service v. Associated Press 248 U.S. 215 p. 810
- Golenpaul v. Rosett 174 Misc. 114 p. 811, p. 815
- Klaw v. General Film Co. 154 N.Y.S. 988 p. 811, p. 816
- Amusement Securities Corp. v. Academy Pictures Distributing Corp. 162 Misc. 608 p. 811
- Amusement Securities Corp. v. Academy Pictures Distributing Corp. 277 N.Y. 557 p. 811
- Eastern Columbia, Inc. v. Waldman 30 Cal.2d 268 at 271 p. 812
- Hemingway v. Film Alliance of United States, Inc. 174 Misc. 725 p. 812
- Philadelphia Storage Battery Co. v. Mindlin 163 Misc. 52 at 56, 57 p. 813
- Lewis v. United States 310 U.S. 634 p. 813
- Bill's Gay Nineties, Inc. v. Fisher 180 Misc. 721 p. 813
- Caliga v. Inter Ocean Newspaper Co. 215 U.S. 182 p. 814
- Brown Chemical Co. v. Meyer 139 U.S. 540 at 542, at 248 p. 814
- Alberts v. Remington Rand, Inc. 175 Misc. 486 p. 814
- Frohman v. Payton 34 Misc. 275 p. 816
- Frohman v. Payton 68 N.Y.S. 849 p. 816
- Dickey v. Mutual Film Corp. 160 N.Y.S. 609 p. 816
- Academy of Motion Picture Arts & Sciences v. Benson 15 Cal.2d 685 p. 818
- Tiffany & Co. v. Tiffany Productions, Inc. 147 Misc. 679 p. 818
- Tiffany & Co. v. Tiffany Productions, Inc. 262 N.Y. 482 p. 818
- Krobitzsch v. Middleton 72 Cal.App.2d 804 at 809 p. 819
- Thompson v. Schurman 65 Cal.App.2d 432 at 440 p. 821
- Gibson v. De La Salle Institute 66 Cal.App.2d 609 at 630 p. 821
- Kreling v. Walsh 77 Cal.App.2d 821 at 834 p. 821
- Gold Mining & Water Co. v. Swinerton 23 Cal.2d 19 at 29 p. 822