Columbia Pictures Television v. Krypton Broadcasting of Birmingham, Inc.

• Decision Date: 06 February 1997
• Docket Number: Nos. 94-55816,94-55894,s. 94-55816
• Citation: 106 F.3d 284
• Parties: 1997 Copr.L.Dec. P 27,610, 41 U.S.P.Q.2d 1664, 25 Media L. Rep. 1398, 97 Cal. Daily Op. Serv. 864, 97 Daily Journal D.A.R. 1275 COLUMBIA PICTURES TELEVISION, Plaintiff-Appellee, v. KRYPTON BROADCASTING OF BIRMINGHAM, INC.; WABM Birmingham; Krypton Broadcasting, Inc.; Krypton International Corporation; WTWV, Inc.; WTVX; Daniel S. Dayton; Alfred F. Decur, Defendants, and C. Elvin Feltner, Jr., Defendant-Appellant.
• Court: U.S. Court of Appeals — Ninth Circuit

Page 284

106 F.3d 284

1997 Copr.L.Dec. P 27,610, 41 U.S.P.Q.2d 1664,

25 Media L. Rep. 1398, 97 Cal. Daily Op. Serv. 864,

97 Daily Journal D.A.R. 1275

COLUMBIA PICTURES TELEVISION, Plaintiff-Appellee, v. KRYPTON BROADCASTING OF BIRMINGHAM, INC.; WABM Birmingham;

Krypton Broadcasting, Inc.; Krypton International

Corporation; WTWV, Inc.; WTVX; Daniel

S. Dayton; Alfred F. Decur, Defendants,

and

C. Elvin Feltner, Jr., Defendant-Appellant.

Nos. 94-55816, 94-55894.

United States Court of Appeals, Ninth Circuit.

Argued and Submitted Nov. 15, 1995.

Decided Feb. 6, 1997.

Richard I. Chaifetz, Columbia, MD, and William H. Shibley, Long Beach, CA, for the defendant-appellant.

Henry J. Tashman, Gregory J. Kopta, Davis Wright Tremaine, Los Angeles, CA, for the plaintiff-appellee.

Appeal from the United States District Court for the Central District of California, Edward Rafeedie, District Judge, Presiding. D.C. No. CV-91-06847-ER.

Before: FARRIS, BRUNETTI, and KOZINSKI, Circuit Judges.

BRUNETTI, Circuit Judge:

C. Elvin Feltner is the owner of Krypton International Corporation, which in turn owns three television stations in the southeast. ¹ Columbia Pictures Television licensed several television shows to the three stations, including "Who's the Boss?," "Silver Spoons," "Hart to Hart," and "T.J. Hooker." After the stations became delinquent in paying royalties, Columbia attempted to terminate the licensing agreements. The stations continued to broadcast the programs, and Columbia filed suit. During the course of the litigation, Columbia dropped all causes of action except its copyright claims against Feltner. The district court found Feltner vicariously and contributorily liable for copyright infringement on the part of the Krypton defendants, granted summary judgment in favor of Columbia on liability, and, after a bench trial, awarded Columbia $8,800,000 in statutory damages and over $750,000 in attorneys fees and costs. In this appeal, Feltner and Krypton International ² challenge several of the district court's rulings.

I. SUBJECT MATTER JURISDICTION

Feltner argues that Columbia's complaint fails to properly plead a claim arising under federal copyright law. Therefore, argues Feltner, subject matter jurisdiction was lacking in the district court. However, because Columbia's complaint alleges ownership and infringement of multiple copyrights and seeks relief under several sections of the Copyright Act--17 U.S.C. §§ 502 (injunction), 503 (impoundment), 504 (damages and profits), and 505 (costs and attorneys fees)--Columbia properly pled a claim arising under federal copyright law. Rano v. Sipa Press, Inc., 987 F.2d 580, 584 (9th Cir.1993); Vestron, Inc. v. Home Box Office, Inc., 839 F.2d 1380, 1381-82 (9th Cir.1988); Effects Assocs., Inc. v. Cohen, 817 F.2d 72, 73-74 (9th Cir.1987). The district court had subject matter jurisdiction pursuant to 28 U.S.C. § 1338(a).

II. VENUE

Feltner argues that venue was improper in the Central District of California. So long as the underlying facts are not in dispute, we review the district court's venue determination de novo. Decker Coal Co. v. Commonwealth Edison Co., 805 F.2d 834, 841 (9th Cir.1986). The district court's factual findings must be accepted unless clearly erroneous. See Reebok Int'l, Ltd. v. McLaughlin, 49 F.3d 1387, 1390 (9th Cir.) Venue under 28 U.S.C. § 1400(a) ³ is proper in any judicial district in which the defendant would be amenable to personal jurisdiction if the district were a separate state. Milwaukee Concrete Studios v. Fjeld Manufacturing Co., 8 F.3d 441, 445-47 (7th Cir.1993); Johannsen v. Brown, 788 F.Supp. 465, 469 (D.Or.1992).

cert. denied, --- U.S. ----, 116 S.Ct. 276, 133 L.Ed.2d 197 (1995). We find that venue was proper in the Central District.

Columbia contends that specific jurisdiction exists over Feltner. We use a three part test for analyzing whether the exercise of specific jurisdiction satisfies the requirements of due process:

(1) the defendant must purposefully avail himself of the privilege of conducting activities in the forum, thereby invoking the benefits and protections of its laws;

(2) the claim must arise out of or result from the defendant's forum-related activities; and

(3) the exercise of jurisdiction must be reasonable.

Sher v. Johnson, 911 F.2d 1357, 1361 (9th Cir.1990).

Columbia alleged, and the district court found, that Feltner willfully infringed copyrights owned by Columbia, which, as Feltner knew, had its principal place of business in the Central District. This fact alone is sufficient to satisfy the "purposeful availment" requirement. Calder v. Jones, 465 U.S. 783, 789-90, 104 S.Ct. 1482, 1486-87, 79 L.Ed.2d 804 (1984) (holding that an intentional tort knowingly directed at a forum resident satisfies the minimum contacts test).

Additionally, Columbia relies on Feltner's wide-ranging contract-related contacts with Columbia in the Central District. Feltner argues that these contacts cannot support venue because they all arise out of the license agreements which, according to Feltner, are unenforceable because they were never signed by Columbia. This argument fails both because Feltner did not raise this argument in the district court and because whether or not the agreements are enforceable as a matter of contract law, Feltner's contacts with the Central District remain the same. Feltner's contract-related contacts are sufficient to satisfy the "purposeful availment" requirement. See Burger King Corp. v. Rudzewicz, 471 U.S. 462, 476, 479, 105 S.Ct. 2174, 2184, 2185-86, 85 L.Ed.2d 528 (1985) (holding in contract action that, when one analyzes the "prior negotiations and contemplated future consequences, along with the terms of the contract and the parties' actual course of dealing," the purposeful availment requirement is satisfied if a defendant has created "continuing obligations between himself and residents of the forum").

Under the second prong, Columbia's claims clearly "arise out of or result from the defendant's forum-related activities." As correctly asserted by Columbia, Feltner was able to authorize infringing broadcasts of Columbia's programs only because Columbia shipped those programs from the Central District to the Krypton stations pursuant to the license agreements.

Finally, under the third prong, "there is a presumption of reasonableness upon a showing that the defendant purposefully directed his actions at forum residents which the defendant bears the burden of overcoming by presenting a compelling case that jurisdiction would be unreasonable." Haisten v. Grass Valley Medical Reimbursement, 784 F.2d 1392, 1397 (9th Cir.1986) (citing Burger King, 471 U.S. at 477, 105 S.Ct. at 2184-85) (emphasis in original). Feltner's contentions--that he had more of a burden litigating in California than Columbia would have had in Florida, that Florida had a stronger interest than California in adjudicating the suit because he lived in Florida, and that Florida was the most efficient forum--are insufficient to meet his burden.

Because Feltner would be amenable to personal jurisdiction in the Central District if the Central District were a separate state,

venue was proper under 28 U.S.C. § 1400(a). ⁴

III. SUMMARY JUDGMENT

Feltner contends that summary judgment was inappropriately granted because: (A) Columbia was not the proper party to the copyright claims; (B) there was a triable issue of fact as to whether Columbia's termination of the license agreements was proper; (C) there was a triable issue of fact as to whether Feltner would reasonably have interpreted Columbia's actions as terminating the license agreements; and (D) triable issues of fact existed concerning Feltner's allegations that Columbia was precluded from terminating the agreements on the basis of estoppel, negligent misrepresentation, and an oral contract not to terminate. None of Feltner's contentions has merit.

A. Feltner's Standing Argument Is Not Properly Before This Court.

Feltner argues that the district court's summary judgment ruling was erroneous because, under 17 U.S.C. § 501(b), Columbia was not the proper party to the copyright claims. Feltner never raised this argument in his opposition to Columbia's summary judgment motion. In fact, in his "Statement of Genuine Issues," Feltner agreed that "Columbia holds the copyright to each ... episode" at issue. While Feltner now contends that the issue was "raised in a Motion to Vacate filed under F.R.Civ.P. 60(b)," this contention is not supported by the record: The district court denied Feltner's motion for leave to file the motion to vacate, impliedly finding that Feltner had failed to meet the prerequisites for relief under F.R.Civ.P. 60(b) and Central District Local Rule 7.16.

A district court's decision not to consider an argument raised for the first time on reconsideration is reviewed for abuse of discretion. Rosenfeld v. United States Dept. of Justice, 57 F.3d 803, 811 (9th Cir.1995). Because Feltner has failed to demonstrate that the district court abused its discretion in refusing to consider his motion to vacate, Feltner's standing argument may not be considered on appeal.

B. Columbia's Termination Was Proper.

Feltner argues that a triable issue of fact exists as to whether the defendants' breach of the license agreements was sufficiently material to enable Columbia to terminate the agreements. In support of his argument, Feltner cites Rano v. Sipa Press, Inc., 987 F.2d at 586-87, and Fantasy, Inc. v. Fogerty, 984 F.2d 1524, 1529-31 (9th Cir.1993), rev'd on other grounds, 510 U.S. 517, 114 S.Ct. 1023, 127 L.Ed.2d 455 (1994), which held that the licensing agreement at issue was not rightfully terminated because the licensee's breach did not "go to the root of the matter," Fantasy, 984 F.2d at 1530 (citations omitted), or did not "constitute a total failure in the performance of the contract." Rano, 987 F.2d at 586 (citation and internal quotation omitted).

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