Scholastic Entertainment, Inc. v. Fox Entertainment Group, Inc.

We confront one of the “knottiest problems in copyright jurisprudence” — whether a case involving interdependent copyright and contract claims “arises under” the federal copyright laws for the purposes of 28 U.S.C. § 1338 (a). 3 Melville B. Nimmer & David Nimmer, Nimmer on Copyrights § 12.01[A], at 12-14 (2003). The complaint before us essentially alleges copyright infringement for the sole purpose of obtaining a determination of ownership. Because questions regarding the ownership of a copyright are governed by state law, we determine that subject matter jurisdiction is lacking and affirm.

FACTS AND PROCEDURAL HISTORY

In 1995, Appellant Fox Broadcasting Co. (“Fox”) entered into a contract with Appel-lee Scholastic Entertainment, Inc. (“Scholastic”). Pursuant to the contract, Scholastic, which is a producer and marketer of motion picture, television, and video programming based on children’s literary works, agreed to produce a television series based on the Goosebumps children’s books and to license the rights to exhibit and distribute the shows to Fox. Fox was to air the initial exhibition of the shows on Fox Broadcasting and later distribute the series to other…