Donahue v. Artisan Entertainment, Inc.

Heather Donahue, Michael Williams, and Joshua Leonard (plaintiffs) each executed an agreement with Haxan Films, Inc. to perform in the film The Blaire Witch Project (Blaire Witch 1). Paragraph 5 of each agreement provided: “It is agreed and understood that Haxan retains all rights to the results and proceeds of [performer’s] services to Haxan. Haxan retains the rights to dub into any language and to hire another [actor/actress] for this purpose. Haxan retains control of all tie-ins and merchandising rights. It is understood that as long as Haxan pays [performer], Haxan is not obligated to play [performer].” Artisan Entertainment, Inc. (defendant) then acquired the rights to Blaire Witch 1 under a licensing agreement with Haxan. Following the successful release of Blaire Witch 1, Artisan released Blaire Witch 2: Book of Shadows (Blaire Witch 2). Images of the plaintiffs appeared in Blaire Witch 2 and in promotional materials, as well as in subsequent television specials, books, and websites based on the Blaire Witch franchise. The plaintiffs sued Artisan for breach of contract, claiming that Artisan used their name and likeness without authorization because the grant of rights in their agreements related only to Blaire Watch 1 and the promotion thereof. Artisan filed a motion for summary judgment, arguing the language in Paragraph 5 constituted a broad and unlimited grant to Haxan of all rights to the fruit of the plaintiffs’ services, including all uses in question in the action.