Effects Associates, Inc. v. Larry Cohen, Larco Productions, Inc., and New World Pictures

We consider whether a district court may entertain a copyright infringement claim where the complaint also alleges an oral promise between the parties that may amount to an assignment or license for use of the copyrighted works.

Facts

Appellant Effects Associates, Inc. (Effects) is the creator of several original motion picture special effects shots embodied in filmstrip form. Effects brought suit against appellee Larry Cohen and/or Larco Productions, Inc. (Cohen) and appellee New World Pictures (New World) for copyright infringement. Effects alleges that Cohen incorporated its special effects shots into a feature film called The Stuff, and entered into an agreement with New World under which New World would copy and distribute the film containing appellant’s works.

Effects makes a separate claim for fraud and deceit. It alleges that Cohen promised to pay Effects for use of its works; made several payments that amounted to less than what Effects demanded; and negotiated, but failed to sign, an agreement to discharge Cohen’s outstanding obligations with respect to Effects’ works.

Relying on this court’s decision in Topolos v. Caldeway, 698 F.2d 991 (9th Cir.1983), the district…