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Case 8.1
MONTZ V. PILGRIM FILMS & TELEVISION, INC.
United States Court of Appeals for the Ninth Circuit
649 F.3d 975; 76 A.L.R.6th 709; 2011 U.S. App. LEXIS 9099 [May 4, 2011]
FACTS:
In 1981, Plaintiff Larry Montz, a parapsychologist, created an idea for a television show that would
follow a team of paranormal investigators conducting field investigations.
Montz envisioned that each episode would follow the team to different real world locations where
they would use magnetometer; infrared cameras and other devices to investigate reports of
paranormal activity.
From 1996-2003, Montz and Deana Smoller (a publicist and producer) pitched Montz’s idea to
representatives of NBC and the Sci-Fi channel.
A number of meetings and discussions took place where they presented screenplays, videos, and
other materials, but ultimately the studies were not interested.
Later, after the meetings with Montz and Smoller, NBC partnered with Piligian and Pilgrim to
produce a series on the Sci-Fi channel based on plaintiff’s materials.
The show, called Ghost Hunters, starred Hawes as leader of a team of investigators who travelled
across the country to study paranormal activity.
Plaintiffs filed a suit in November 2006 alleging copyright infringement, breach of implied contract,
breach of confidence and several other causes.
PROCEDURE: The U.S. District Court for the Central District of California dismissed the claims as
preempted by federal copyright laws, and the panel affirmed.
ISSUE: Does the copyright law preempt a claim for breach of implied contract to pay for the use of
plaintiff’s ideas?
RULE: “An implied contractual claim is not preempted by federal copyright law. The contractual claim
requires that there be an expectation on both sides that use of the idea requires compensation and
that such bilateral understanding of payment constitutes an additional element that transforms a claim
from asserting a right exclusively protected by federal copyright law, to a contractual claim that is not
preempted by copyright law.”
REASONING:
1. Since an idea cannot be copyrighted, a concept for a film or television show cannot be protected by
a copyright.
4. Montz and Smoller disclosed their idea for sale, they expected to be reasonably compensated for
the idea, and the defendants knew the conditions on which it was offered. They set forth a valid
implied-in-fact contract argument.
ADDITIONAL INFORMATION:
In Benay v. Warner Brothers Entertainment, Inc. [607 F.3d 620, 2010] the court followed the Grosso
decision holding that a contractual claim was not preempted. The court held that “contract law,
whether through express or implied-in-fact contracts, is the most significant remaining state-law
