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Antitrust Keyed to Gavil, 5th Ed.
Professional Real Estate Investors, Inc. v. Columbia Pictures Industries, Inc.
Citation:
508 U.S. 49, 113 S.Ct. 1920, 123 L.Ed.2d 611 (1993)Facts
Professional Real Estate Investors (PRE) operated La Mancha Private Club and Villas, a resort hotel in Palm Springs, California. PRE installed videodisc players in hotel rooms and assembled a library of over 200 motion picture titles, which they rented to guests for in-room viewing. They also sought to develop a market for selling videodisc players to other hotels. Columbia Pictures and seven other major studios held copyrights to the motion pictures on PRE’s videodiscs. Columbia also licensed transmission of copyrighted films to hotel rooms through a cable system called Spectradyne, making PRE a competitor in the hotel entertainment market. In 1983, Columbia sued PRE for copyright infringement, claiming that renting videodiscs for in-room viewing violated their exclusive right to “perform the copyrighted work publicly.” PRE counterclaimed, alleging Columbia’s lawsuit was a sham concealing anticompetitive behavior in violation of the Sherman Act. The courts ultimately found that hotel room viewing did not constitute “public performance,” but the question remained whether Columbia’s unsuccessful copyright lawsuit could be considered a sham that would strip it of Noerr-Pennington immunity.
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