Copyright Infringement and the Limits of Licensing Agreements

A Case Study: From Baghdad to Hollywood

This article examines the landmark copyright infringement case of Frank Music Corp. v. MGM, Inc. (1985), which centered around the use of copyrighted music from the Broadway musical “Kismet” in a Las Vegas revue. The case highlights the complexities of copyright law, particularly the boundaries of licensing agreements and the concept of derivative works.

The Origins of a Dispute

The story begins with Edward Knobloch’s 1911 play, “Kismet,” a tale set in ancient Baghdad, revolving around a beggar named Hajj and his daughter. The play’s popularity spawned a derivative musical adaptation. In the 1950s, Edwin Lester secured rights to produce this musical version, with Frank Music Corporation owning the copyright to the musical score and individual songs. This musical was later adapted into a film.

When Knobloch’s copyright expired in 1967, “Kismet” entered the public domain. However, the derivative works, including the musical and its score, remained protected by their own copyrights.

MGM’s “Hallelujah Hollywood” and the Infringement

Fast forward to the 1970s. MGM Grand Hotel in Las Vegas staged a musical revue, “Hallelujah Hollywood,” at its Ziegfeld Theater. The revue featured tributes to various Hollywood films, with Act IV dedicated to “Kismet.” This act, set in Baghdad and featuring characters from Knobloch’s play, incorporated approximately six minutes of music from the “Kismet” musical.

MGM argued that its use of the music was permissible under its blanket licensing agreement with the American Society of Composers, Authors, and Publishers (ASCAP). These agreements typically grant licensees the right to perform non-dramatic renditions of copyrighted musical works within ASCAP’s repertoire. However, Frank Music Corporation contended that MGM’s use of the music went beyond the scope of such a license, constituting copyright infringement.

The District Court Ruling and Appeal

The district court sided with Frank Music Corporation, ruling that Act IV of “Hallelujah Hollywood” exceeded the bounds of MGM’s ASCAP license. However, the court determined that the infringement was not willful and awarded Frank Music Corporation $22,000 in damages. This sum represented a portion of the casino profits generated during the revue’s run. Dissatisfied with the damage award, MGM appealed the decision to the Ninth Circuit.

The Importance of Understanding Derivative Works and Licensing Agreements

The Frank Music Corp. v. MGM, Inc. case serves as a crucial precedent in copyright law. It emphasizes that while the original work (“Kismet” the play) may enter the public domain, derivative works (the musical) retain their copyright protection. Furthermore, the case highlights the limitations of blanket licensing agreements, demonstrating that such agreements do not provide carte blanche to use copyrighted material in any manner desired.

External Resources

Summary

Frank Music Corp. v. MGM, Inc. underscores the importance of understanding the nuances of copyright law, particularly in the digital age where creative works are constantly being adapted and reused. The case serves as a reminder that obtaining proper licenses and respecting the limitations of those licenses is essential to avoid copyright infringement claims.