Allarcom Pay Television, Ltd. v. General Instrument Corp.

Allarcom Pay Television, Ltd. appeals from two orders of the district court dismissing, pursuant to Fed.R.Civ.P. 12(b)(6), its Federal Communication Act (FCA) claims and its various California state law claims against General Instrument Corporation and Showtime Networks, Inc. We have jurisdiction under 28 U.S.C. § 1291 . We affirm the dismissal of the FCA claims and reverse the dismissal of the state law claims.

FACTS AND PROCEEDINGS BELOW

In July 1992, Allarcom filed a complaint in federal district court against Showtime, General Instrument, and another defendant not party to this appeal. That complaint alleged the following facts. Allarcom is authorized by the Canadian government to be the exclusive provider of English-language subscription television (STV) programming in Western Canada. Allarcom has obtained the ex- *384 elusive right from producers such as MCA, Paramount, Touchstone, etc. to exhibit then-motion pictures on STV in Allarcom’s territory. Allarcom transmits its signal to local cable television companies and other authorized receivers who pay for the service.

Showtime has the right to exhibit many of the same pictures on its STV service in the United States, but…