J C Williamson Limited v Metro-Goldwyn-Mayer Theatres Limited [1937] HCA 12

56 C.L.R.} OF AUSTRALIA. 567

{HIGH COURT OF AUSTRALIA.)

J. C. WILLIAMSON LIMITED. .— ._~—.._—s APPELLANT ; PLAINTIFF,

AND

METRO-GOLDWYN-MAYER THEATRES LIMITED AND ANOTHER . "

DeEFENDANTS,

} RESPONDENTS.

ON APPEAL FROM THE SUPREME COURT OF VICTORIA.

Copyright—Licence—Right to produce and perform musical play—Exception of H.C. or A. motion picture film rights—Sound pictures included in exception. 1937.

By an agreement made in September 1924 the owner of the dramatic and a Metnourne,

performing rights in a musical play granted to the plaintiff the sole right to Mar. 8, 23.

produce and perform the play, but the agreement excepted "the motion ~ "" °

picture film rights," which were expressly reserved to the grantor. At the Latham ¢.J.,

time of the agreement both parties knew that sound films had been made but and. MeTieman

they were not then of commercial importance. z Held, by Rich, Dixon and McTiernan JJ. (Latham C.J. dissenting), that the

agreement made a reservation in favour of the grantor of so much of the

exclusive performing right as would allow the exploitation of the commercial

exhibition of moving pictures as practised at the time and as it might be

developed or improved during the life of the copyright, and that the reservation

covered sound pictures as well as silent films.

Decision of the Supreme Court of Victoria (Full Court): J. C. Williamson Lid. v. Metro-Goldwyn-Mayer Theatres Ltd., (1937) V.L.R. 67, affirmed.

Array from the Supreme Court of Victoria. In an action commenced in the Supreme Court of Victoria by J. ©. Williamson Ltd. against Metro-Goldwyn-Mayer Theatres Ltd.

'

568 HIGH COURT (1937.

H.C. or A. and Metro-Goldwyn-Mayer Ltd., a special case, which was substan- ees tially as follows, was stated for the opinion of the Supreme Court :— IC. 1. On 16th September 1924 one Arthur Hammerstein of New beets York (party of the first part) entered into an agreement under seal