Opinion ID: 779794
Heading Depth: 2
Heading Rank: 3

Heading: The Prior Actions

Text: 8 As the initial twenty-eight year term of copyright in the Captain America Works neared its completion, Simon commenced two separate lawsuits (the Prior Actions) against the Goodmans and their affiliates. 9 In October 1966, Simon sued in New York State Supreme Court (the State Action) claiming that, because he was the author of the Works, the Goodmans' exploitation of the Captain America character constituted unfair competition and misappropriation of his state law property rights. See Complaint, Joseph H. Simon v. Martin Goodman and Jean Goodman, individually and d/b/a Magazine Mgmt. Co., Krantz Films, Inc., R.K.O. Gen., Inc., and Weston Merch. Corp. (R. at 117). Simon sought an accounting, damages, and injunctive relief in the State Action. See id. 10 One year later, Simon filed a similar action against the Goodmans and their affiliates in the United States District Court for the Southern District of New York (the Federal Action). In this action, Simon sought a declaratory judgment that he, as the author of the Works, had the sole and exclusive right to the renewal term of the copyright in the Works. See Complaint, Joseph H. Simon v. Martin Goodman and Jean Goodman, individually and d/b/a Magazine Mgmt. Co. and Timely Comics, Inc. (R. at 142-48). He also sought injunctive relief to prohibit the Goodmans from applying for renewal registrations of the Works. See id. Simon was represented by counsel in the Prior Actions. 11 In both of the Prior Actions, the defendants denied that Simon was the sole author of the Works. In the State Action, the defendants specifically argued that Simon's contributions to the Works were made as an employee for hire. See Defendants' Answer and Counterclaims (R. at 136-39). In the Federal Action, the defendants asserted a counterclaim for a judgment declaring that Timely owned the copyrights in the Works and therefore Simon should be enjoined from applying to renew such copyrights. See Defendants' Answer (R. at 150-55). While the Prior Actions were pending, Timely's successor in interest applied to the Copyright Office for renewal of the copyrights in the Works. 12 In November 1969, after two years of discovery, the parties to the Prior Actions entered into a settlement agreement (the Settlement Agreement). In the Settlement Agreement, Simon acknowledged that his contribution to the Works was done as an employee for hire of the Goodmans. (R. at 185). Pursuant to this Settlement Agreement, Simon assigned any and all right, title and interest he may have or control or which he has had or controlled in [the Works] (without warranty that he has had or controlled any such right, title or interest) to the Goodmans and their affiliates. (R. at 179-80). The parties to both actions filed stipulations with the respective courts dismissing with prejudice all claims and matters alleged, threatened, implied or set forth in any of the pleadings filed by [Simon]. (R. at 188-91).