A New York federal judge denied Fox News’ attempt to dismiss a lawsuit alleging copyright infringement, breach of contract, conversion, breach of fiduciary duty and accounting, deceptive trade practices, unjust enrichment, and unfair competition.

Kenneth Stadt, the exclusive owner of a video of Bernie Madoff and his wife on a yacht in St. Tropez in 2003, brought suit, claiming that he entered into a license agreement with Fox News to allow Fox to use the footage for 45 days in exchange for $10,000 but Fox continued to use the footage after the end date on the agreement.  After Stadt sent a cease and desist letter, a new license agreement was made for another 45 days and $50,000 but Fox News continued to use the footage after the time agreed to in their second contract as well.

Fox attempted to dismiss all claims, except copyright, because the Copyright Act preempts state-based claims.  The judge found, however, that Stadt’s claim of breach of contract was based on more than unauthorized use.  Fox News credited the video as a “Fox News Exclusive” every time the images ran on the network.  Since this extra element is not governed by the Copyright Act, that was enough, in the judge’s eyes, to keep the claim alive.  Taking credit for the “exclusive” may be just enough to breach a contract and should bring some interesting litigation.

This is just another notch in Fox News’ belt in regards to problems with the footage it has been airing.  Fox News was sued in January over the airing of an interview with Michael Jackson’s ex-wife that they did not have the rights for.  Let’s also not forget Jon Stewart calling Fox News’ Sean Hannity out last year for airing footage of one Tea Party rally and trying to pass it off as another rally (Hannity’s apology still leaves me wanting more).  I won’t pretend to be a fan of Fox News and I will admit that these lawsuits will probably not stop their domination of the ratings, but how fair and balanced are you when you breach your contracts and infringe on the rights of the everyday Americans to whom you deliver the news?  Maybe Stadt was leading the cause of liberalism and a fair and balanced Sean Hannity was just fighting back with liberty.

Read an article on Mr. Stadt’s claim and the response of the judge at The Hollywood Reporter.

Mark Tratos

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