Paul Smith, an Individual v. Edward L. Montoro and Film Ventures International Inc.

This is an appeal from a judgment granting defendant’s motion to dismiss under Fed.R.Civ.P. 12(b)(6) for failure to state a federal claim. The district court held that the complaint did not allege facts sufficient to constitute a violation of section 43(a) of the Lanham Act, 15 U.S.C. § 1125 (a). Appellant argues that the district court erred since the acts alleged in the complaint are the economic equivalent of “palming off,” or misuse of a trade name, thus meeting the district court’s standard for stating a claim under section 43(a). For the reasons stated below, we reverse.

BACKGROUND

Paul Smith contracted to star in a film to be produced by Producioni Atlas Cinematográfica (“PAC”), an Italian film company. The contract allegedly provided that Smith would receive star billing in the screen credits and advertising for the film and that PAC would so provide in any subsequent contracts with distributors of the film. PAC then licensed defendants Edward Montoro and Film Venture International, Inc. (“FVI”) to distribute the film in this country under the name “Convoy Buddies.” Plaintiff complains, however, that Montoro and FVI removed Smith’s named and substituted the name of…