Buchwald v. Paramount Pictures, Corp.
1990 WL 357611, 13 U.S.P.Q.2d 1497 (1990)
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Rule of Law:
Where a contract requires payment if a creative work is "based upon" an author's idea, liability can be established by showing the defendant had access to the idea and that the resulting work was inspired by or used a material element of the original, even if the two works are not substantially similar under copyright law.
Facts:
- In early 1982, author Art Buchwald created a screen treatment titled 'It's a Crude, Crude World.'
- In late 1982, Buchwald's story was pitched to Paramount Pictures Corporation for development as a movie starring Eddie Murphy.
- On March 22, 1983, Buchwald and Paramount entered into a contract for the rights to his story, retitled 'King For A Day,' as a potential project for Murphy.
- Paramount executives discussed the 'Art Buchwald idea' with Murphy, who had a positive reaction, and they attempted to hire John Landis as director.
- In early 1985, Paramount abandoned the project, informing Buchwald they could not secure a suitable writer for the script.
- In May 1986, Buchwald optioned his treatment to Warner Brothers.
- In the summer of 1987, Paramount began developing a new film based on a story by Eddie Murphy, to be directed by John Landis, which was ultimately titled 'Coming To America.'
- In January 1988, Warner Brothers cancelled its project with Buchwald after discovering Paramount was producing the similar 'Coming To America' starring Murphy, which was later released with a story credit given to Murphy.
Procedural Posture:
- Art Buchwald filed a lawsuit against Paramount Pictures Corporation in the California Superior Court, a state trial court.
- Buchwald's complaint alleged breach of contract and also included tort claims for bad faith, tortious breach of contract, and fraudulent concealment.
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Issue:
Does a film studio breach a contract to pay an author for a story idea if it produces a film that is "based upon" the author's work, where the studio had clear access to the idea and the resulting film shares material similarities, despite being credited to a different author?
Opinions:
Majority - The Court
Yes, the film studio breached its contract. The court held that where there is a contractual obligation to pay for an idea, liability arises if the produced film is 'based upon' the author's work. The term 'based upon' does not require the 'substantial similarity' standard of copyright law. Instead, the court applied a two-part analysis of access and similarity. In this case, access was undisputed, as Paramount executives and Eddie Murphy were clearly aware of Buchwald's concept. Where evidence of access is strong, less proof of similarity is required. The court found that Paramount's obligation was triggered if 'Coming To America' was 'based upon a material element of or was inspired by' Buchwald's treatment. Comparing the two works, the court concluded that the similarities were sufficient to find that Paramount had appropriated a qualitatively important part of Buchwald's work, thus breaching the contract. However, the court found for Paramount on the tort claims, as its conduct was not deemed fraudulent, malicious, or in bad faith.
Analysis:
This decision was highly significant for the entertainment industry, particularly for writers and creators. It established that contract law can provide broader protection for story ideas than copyright law, which does not protect abstract ideas. By defining 'based upon' in contractual terms as being 'inspired by' or using a 'material element,' the court lowered the bar for creators to prove their idea was used, especially when clear access can be shown. This ruling incentivized studios to be more diligent in tracking the provenance of ideas and honoring option agreements, strengthening the negotiating position of writers in Hollywood.
