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Magic Circle Films Intl., LLC v. Entertainment One U.S. LP

Citation: 2021 NY Slip Op 06492Docket: 809 CA 20-01066

Court: Appellate Division of the Supreme Court of the State of New York; November 18, 2021; New York; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

In this appellate case, Magic Circle Films International, LLC pursued legal action against Entertainment One U.S. LP, asserting ownership of musical compositions and sound recordings and seeking damages for their alleged unlawful distribution. The plaintiff's motion to amend the complaint to include breach of contract and quasi-contract claims was rejected by the court, which found no contractual relationship between the parties and deemed the quasi-contract claim preempted by the federal Copyright Act. The Appellate Division, Fourth Department, upheld the lower court's decision to dismiss the amended complaint, emphasizing that the plaintiff's arguments against preemption were unpersuasive due to the lack of contractual ties. Further, the court confirmed that the claims of unfair competition and unjust enrichment essentially pertained to rights under federal copyright protection, thus reinforcing their dismissal under federal preemption principles. The court's ruling, entered on November 19, 2021, underscored the comprehensive preemption by federal copyright law, ultimately affirming the dismissal of the plaintiff's claims in their entirety.

Legal Issues Addressed

Breach of Contract Claims

Application: The court found that the plaintiff could not add a breach of contract claim due to the absence of a contractual relationship.

Reasoning: The plaintiff sought to add a breach of contract claim, but the court found no contractual relationship between the parties.

Dismissal of Claims under Copyright Preemption

Application: The court upheld the dismissal of the amended complaint, reinforcing that the plaintiff's claims were preempted by federal copyright laws.

Reasoning: In the second appeal, the court upheld the dismissal of the amended complaint, rejecting the plaintiff's argument that its claims were not preempted by federal copyright law.

Motion to Amend Complaint

Application: The plaintiff's attempt to amend the complaint was denied because the proposed amendments lacked merit.

Reasoning: The Appellate Division, Fourth Department, affirmed the lower court's decision denying the plaintiff's motion to amend the amended complaint, stating that the proposed amendments lacked merit.

Preemption by Federal Copyright Act

Application: The court ruled that the plaintiff's quasi-contract claim was essentially a copyright infringement claim, which is preempted by the federal Copyright Act.

Reasoning: Additionally, the plaintiff attempted to introduce a quasi-contract claim for money had and received, but the court ruled that this claim was essentially a copyright infringement claim, which is preempted by the federal Copyright Act, thus lacking merit.

Unfair Competition and Unjust Enrichment Claims

Application: The court determined that claims for unfair competition and unjust enrichment relate to rights protected by federal copyright laws and are preempted.

Reasoning: The amended complaint includes claims for unfair competition, unjust enrichment, and injunctive relief. However, the court determined that these claims effectively relate to rights concerning the use and reproduction of property protected by federal copyright laws.