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Marvel Entertainment v. ARP Films

684 F. Supp. 818 (1988)

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Marvel Entertainment v. ARP Films

United States District Court for the Southern District of New York
684 F. Supp. 818 (1988)

SC

Facts

Marvel Entertainment Group, Inc. (Marvel) (defendant) owned the copyrights to several cartoon characters. In 1976 Marvel agreed to license the rights to market these characters exclusively to ARP Films, Inc. (ARP) (plaintiff). In return, ARP was required to pay Marvel a portion of its earnings from the marketing. In July 1986, ARP sued Marvel for breach of contract, claiming that Marvel had licensed the cartoon characters to other entities as well, in violation of the exclusive agreement. In November 1986, Marvel sought to terminate the contract. ARP continued to use Marvel’s copyrights but in March 1987 stopped paying Marvel its share of the earnings under the licensing contract. Marvel filed a counterclaim, arguing that ARP’s failure to pay breached the contract.

Rule of Law

Issue

Holding and Reasoning (Conboy, J.)

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