ABC, a subsidiary of Walt Disney Company, sought to obtain the rights for the North American “Do You Want To Be A Millionaire” from Celador. ABC asked the William Morris Agency to offer a proposal for the show. Celador insisted and ABC agreed to a direct network deal and not a deal with a production company.
The two companies agreed to a 50/50 merchandising split and a 5/0/50 split on the network broadcast profits. A contract was signed and production …show more content…
ABC never planned to keep that promise and brought in BVT, which is owned by ABC, in order to keep all the revenue within the corporation. Because of this misrepresentation, Celador received nothing from the profits of the show.
Constructive fraud: ABC misrepresented the truth regarding how theprofits from the show were to be divided in order to induce Celador to sign the contract. Celador relied on ABC’s promises, which resulted in damages to Celador.
Unfair competition under California Business and Professions Code § 17200: Celador was denied its fair share of the show’s profits because of a lack of a fair-market value network license fee. The accounting methods used by Disney’s affiliates were unfair and deceptive and cost Celador millions from the merchandising of supplemental products associated with the show.
An accounting: Plaintiff requested the Court order an accounting be done by ABC/Disney to trace all monetary transactions having to do with the show.
Copyright infringement: Lusam Music created the theme song for ‘Millionaire’ and Disney used it for one of its park attractions without obtaining permission to do