LOS ANGELES, Calif. (May 16, 2007) – Federal District Judge A. Howard Matz, of the United States District Court, Central District of California, ruled that the removal of Adam Pick’s complaint to federal court by the owners and producers of ‘American Idol’ was meritless and not reasonable.
Lawsuit Background
Filed on May 22, 2006, the complaint alleges that Mr. Pick pitched defendants – American Idol Productions, Inc., Fox Broadcasting Company, Fox Interactive Media and Fremantlemedia North America, Inc. – an online platform with many features including a fantasy game and a social network designed specifically for the ‘American Idol’ community.
The complaint alleges that defendants passed on purchasing these ideas and expressed no objection to Mr. Pick using these interactive concepts at his own website (www.IdolGoHome.com).
However, on February 16, 2006, nine days after the official launch of www.IdolGoHome.com, attorneys acting on behalf of defendants, sent Mr. Pick a demand letter to shut down www.IdolGoHome.com. At the same time, Defendants allegedly modified their website (www.AmericanIdol.com) to incorporate virtually all of the ideas pitched by Mr. Pick to Defendants several months earlier.
Motion To Remove Denied
Less than four months before the May 2007 trial date, Defendants removed the case to federal court, claiming that it was preempted by the Copyright Act.
The federal court rejected Defendants’ arguments, sending the case back to state court and imposing sanctions of $16,000 against them.
Judge Matz ruled that, “under the dispositive Ninth Circuit decision in Grosso, the breach of implied contract claim clearly was not preempted.” Judge Matz also found that Defendants’ removal was untimely, stating that “[t]heir claim that they were unaware of the potential preemption issue until the recent discovery is not supported by the facts and thus is not reasonable.”
Judge Matz also rejected Defendants’ argument that the complaint fails to adequately allege a claim for an implied contract against the Fox defendants, because they were not present at the pitch meeting. Judge Matz found that “[a]s to the status of the Fox Defendants, Plaintiff’s case appears to be based on copies of e-mails between employees of the different Defendants discussing their plans to copy precise elements of Plaintiff’s website.”
Judge Matz summed up his ruling stating that “[i]n short, Defendants’ removal of this case appears to have been designed to prolong litigation and impose costs on the Plaintiff.”
To download the Federal Court ruling which sanctions the 'American Idol' owners and producers, please click here.
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