Plaintiff Timed Out, LLC (Plaintiff), as the assignee of two models who are not parties to this action (the Models), sued defendants Youabian, Inc., and Kambiz Youabian (Defendants) for common law and statutory misappropriation of likeness based on Defendants' alleged unauthorized display of the Models' images in connection with advertising Defendants' cosmetic medical services. The trial court ruled a cause of action for misappropriation of likeness is not assignable and granted Defendants' motion for judgment on the pleadings on that basis. We conclude a misappropriation of likeness claim, which concerns only the pecuniary benefits to be derived from the commercial exploitation of a person's likeness, is assignable. Accordingly, we reverse.
According to the complaint's allegations, Plaintiff is a company that "specialize[s] in the protection of personal image rights." The Models are professional models who earn a living modeling and selling their images to companies for advertising products and services. In or about July 2011, the Models discovered Defendants had been using their images on Defendants' Web site, without the Models' consent, to advertise Defendants' cosmetic medical services. Following the discovery, the Models "assigned their rights to bring suit for misappropriation of their images to PLAINTIFF."
Based on the foregoing allegations, Plaintiff sued Defendants for statutory and common law misappropriation of likeness. The complaint alleges that, as a direct and proximate result of the misappropriation, Plaintiff, through its assignment from the Models, suffered damages "with respect to [the Models'] right to control the commercial exploitation of their image and likeness [sic]" and through the dilution of the value of the Models' images for advertising medical services.
Defendants moved for judgment on the pleadings. In their motion, Defendants principally asserted that Plaintiff lacked standing to sue on behalf of the Models because the right of publicity, which creates liability for misappropriation of a person's name or likeness, is personal in nature and cannot be
After hearing argument and taking the matter under submission, the trial court granted Defendants' motion. In its written ruling, the court observed the parties' primary dispute centered on whether a claim for misappropriation of likeness can be assigned. The court framed the issue as follows: "The parties agree that, under California law, assignment of a `personal' tort is not valid.... The issue, therefore, is whether a cause of action for misappropriation of publicity is personal in nature." Citing Lugosi v. Universal Pictures (1979) 25 Cal.3d 813 [160 Cal.Rptr. 323, 603 P.2d 425] (Lugosi), the trial court concluded "the right to publicity [is] personal in nature and therefore non-assignable." On this basis, the court granted the motion and entered judgment for Defendants.
"`Review of a judgment on the pleadings requires the appellate court to determine, de novo and as a matter of law, whether the complaint states a cause of action.'" (Third Eye Blind, Inc. v. Near North Entertainment Ins. Services, LLC (2005) 127 Cal.App.4th 1311, 1317 [26 Cal.Rptr.3d 452].) "We assume the truth of the properly pleaded factual allegations, facts that reasonably can be inferred from those expressly pleaded, and facts of which judicial notice can be taken. [Citation.] We construe the pleading in a reasonable manner and read the allegations in context." (Zenith Ins. Co. v. O'Connor (2007) 148 Cal.App.4th 998, 1006 [55 Cal.Rptr.3d 911].) The complaint "must be liberally construed, with a view to substantial justice between the parties." (Code Civ. Proc., § 452.)
In 1971, California enacted Civil Code section 3344,
In the instant case, the trial court granted Defendants' motion on the ground that the right of publicity is "personal in nature and therefore non-assignable." In reaching this conclusion, the trial court derived a rule from our Supreme Court's opinion in Lugosi, supra, 25 Cal.3d 813 that cannot properly be attributed to the holding in that case.
In Lugosi, the heirs of the actor Bela Lugosi sued Universal Pictures, the motion picture company that produced the film Dracula (Universal Pictures 1931), for common law misappropriation of Lugosi's likeness. In contracting to star in the film's title role, Lugosi assigned Universal the right to use his
As framed by the trial court's ruling, the issue on appeal in Lugosi was whether the right of publicity survives a celebrity's death, as a descendible property interest, if never exercised or exploited by the celebrity during his or her lifetime. (See Lugosi, supra, 25 Cal.3d at pp. 817-819.) While answering this question in the negative, our Supreme Court recognized — contrary to the trial court's ruling in the instant case — that the right of publicity can be assigned by the celebrity during his or her lifetime. (See id. at p. 823.)
In addressing a collection of federal cases that concluded the right of publicity passes to one's heirs, the Lugosi court affirmed the premise of those cases — that "the right to exploit name and likeness can be assigned" — but explained why assignability alone does not automatically translate into inheritability of the right. (Lugosi, supra, 25 Cal.3d at p. 823, italics added.) The court explained, "Assignment of the right to exploit name and likeness by the `owner' thereof is synonymous with its exercise. In all of the [federal] cases the owner of the right did assign it in his lifetime and, too, Lugosi did precisely this in his lifetime when he assigned his name and likeness to Universal for exploitation in connection with the picture Dracula. [Citation.] Assertion by the heirs of the right to exploit their predecessor's name and likeness to commercial situations he left unexploited simply is not the exercise of that right by the person entitled to it." (Ibid., some italics added.) Because "the right to exploit name and likeness is personal to the artist and must be exercised, if at all, by him during his lifetime," the Supreme Court concluded Lugosi's heirs lacked standing to assert their claim. (Id. at p. 824.)
Ultimately the Legislature changed the law by enacting section 3344.1. The statute provides that the rights to control "a deceased personality's name, voice, signature, photograph, or likeness" (§ 3344.1, subd. (a)(1)), are "property rights" that are "deemed to have existed at the time of death ... [which] vest in the persons entitled to these property rights under the testamentary instrument of the deceased personality effective as of the date of his or her death." (§ 3344.1, subd. (b).) While this change has no bearing on the instant case — as the Models allegedly made an inter vivos assignment to Plaintiff — section 3344.1 is nevertheless notable because it acknowledges, as the Supreme Court did in Lugosi, that the right of publicity can be assigned by the owner during his or her lifetime. Section 3344.1, subdivision (b) states in relevant part: "... Nothing in this section shall be construed to render invalid or unenforceable any contract entered into by a deceased personality during his or her lifetime by which the deceased personality assigned the rights, in whole or in part, to use his or her name, voice, signature, photograph, or likeness...."
Having concluded the right of publicity is assignable, we now turn to Defendants' contention that the trial court's ruling should nevertheless be affirmed, because Plaintiff was assigned only "the naked right to bring suit for misappropriation of the [M]odels' images, and received no other rights or duties along with the assignment." Defendants argue "the right to sue alone, without anything more, is not assignable" and "an assignment of the naked right to sue generally does not give a plaintiff standing to bring claims." The applicable law does not support Defendants' contention.
Defendants rely on Murphy v. Allstate Ins. Co. (1976) 17 Cal.3d 937 [132 Cal.Rptr. 424, 553 P.2d 584] (Murphy) and Essex Ins. Co. v. Five Star Dye House, Inc. (2006) 38 Cal.4th 1252 [45 Cal.Rptr.3d 362, 137 P.3d 192] (Essex) to argue a cause of action for misappropriation of likeness comes within the exception for wrongs done to the person. Based on these authorities, Defendants contend a misappropriation of likeness cause of action is not assignable, absent some "indication that other rights or duties have been assigned." We disagree. Though Murphy and Essex may state the
Murphy addressed the assignability of an insurance bad faith cause of action, arising from the insurer's failure to settle a personal injury claim. (Murphy, supra, 17 Cal.3d at pp. 939-942.) Our Supreme Court concluded the bad faith cause of action was assignable, although the personal tort aspects — emotional distress and punitive damages — were not. (Id. at p. 942.) When the Supreme Court revisited the issue in Essex, it reaffirmed the bad faith action in Murphy was a "`hybrid cause of action,' one comprised of both assignable and nonassignable components." (Essex, supra, 38 Cal.4th at p. 1261.) The court explained, "We start from the proposition that assignability is the rule. (§ 954.) From that general rule we except those tort causes of actions `"`founded upon wrongs of a purely personal nature.'"' [Citation.] Actions for bad faith against an insurer have generally been held to be assignable [citation], including claims for breach of the duty to defend [citation]. Although some damages potentially recoverable in a bad faith action, including damages for emotional distress and punitive damages, are not assignable (Murphy, supra, 17 Cal.3d at p. 942), the cause of action itself remains freely assignable as to all other damages (id. at p. 946)." (Essex, at p. 1263.)
Here, Plaintiff did not sue for injury to the feelings, emotional distress or personal injuries to the Models. On the contrary, Plaintiff seeks to recover only pecuniary damages for Defendants' alleged commercial misappropriation of the Models' images. Those damages are described in the complaint as the "profits or gross revenues" Defendants received as a result of the unauthorized use of the Models' images, the usurpation of the Models' rights to commercially exploit their images, and the dilution of the commercial value of the Models' likenesses. The complaint does not allege emotional distress or disturbance to the Models' peace of mind, nor does Plaintiff seek
In the alternative, Defendants argue, even if a misappropriation of likeness claim can be assigned, an "exclusive license" is required to assert the claim. Because Plaintiff "only possesses a right to sue for particular violations" — i.e., Defendants' alleged display of the Models' images on Defendants' Web site — Defendants contend "[Plaintiff] has not received enough of the right to create standing." We disagree.
On this record, the complaint's allegations are sufficient to support a reasonable inference that Plaintiff received exclusive assignments with respect to the Models' likenesses. To begin, even if Plaintiff received only "a right to sue" to exclude Defendants from exploiting the Models' images, that right alone suggests Plaintiff obtained an exclusive right; albeit one limited perhaps to the particular display of the Models' images on Defendants' Web site. Be that as it may, the fact that an assignment is limited to a particular display does not mean it is ineffective to impart standing to sue for misappropriation within the limited scope of the assignment. For instance, the assignment to Universal in Lugosi was limited to exploiting Lugosi's likeness in connection with promoting the film Dracula. (See Lugosi, supra, 25 Cal.3d at p. 816, fn. 2.) The Supreme Court nevertheless recognized the validity of that assignment, without ever implying a condition that the assignment must cover Lugosi's entire right of publicity to be enforced. The same is true of the
In any event, the complaint's allegations also are sufficient to reasonably infer that the assignment encompassed not just the right to sue, but also the underlying pecuniary interest in exploiting the Models' likenesses. For instance, the complaint alleges Plaintiff, "through its assignment from [the Models]," has been damaged "with respect to [the Models'] right to control the commercial exploitation of their image and likeness [sic]." The complaint also alleges "the value of [the Models'] image and likeness [sic] has been diluted due to [Defendants'] unauthorized use ... to advertise [Defendants'] medical services," resulting in injury to Plaintiff through the assignment. These allegations support a reasonable inference that the assignment encompasses the pecuniary interest in controlling the display of the Models' images in connection with advertising medical services. Liberally construing the complaint as we must, with all reasonable inference drawn in favor of the pleadings, we conclude these allegations are sufficient to establish Plaintiff's standing to assert the claims for common law and statutory misappropriation of likeness by right of assignment.
Lastly, we address Defendants' contention that Plaintiff's state law misappropriation of likeness claims are preempted by federal copyright law. Defendants argue Plaintiff's action seeks to prevent the display of copyrightable photographs and, therefore, the claims are preempted. We disagree.
Returning to the two-part test for preemption, we conclude (1) the subjects of Plaintiff's claims — the Models' likenesses — are not copyrightable, even though embodied in a copyrightable work such as a photograph, and (2) the right asserted under state law — the right of publicity — does not fall within the subject matter of copyright.
The judgment is reversed and the order granting Defendants' motion for judgment on the pleadings is vacated. Plaintiff Timed Out, LLC, is awarded costs on appeal.
Klein, P. J., and Aldrich, J., concurred.