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Cameo Clips

By ALM Staff | Law Journal Newsletters |
August 25, 2003

Character Rights/Loan Agreements

The trial court improperly found that the owner of the rights to 'Rin Tin Tin' breached a loan settlement agreement with an individual he partnered with to colorize the TV episodes and develop a feature film based on the property, the Court of Appeal of California, Second Appellate District, held in an unpublished opinion. Kleven v. Leonard, B153534. Max J. Kleven had agreed to loan money to 'Rin Tin Tin' rights owner Herbert B. Leonard to be paid out of proceeds earned from exploiting the property. Kleven later filed suit to collect, but the parties entered into a settlement agreement placed on the court record. The trial court subsequently granted Kleven's motion to enforce the settlement agreement based on Leonard's alleged breach by not giving Kleven a security interest in 'Rin Tin Tin.' On appeal, Leonard argued that the security documents Kleven presented to him didn't conform to the settlement agreement. Leonard also denied previously granting a security interest in 'Rin Tin Tin' to a third party. Reversing, the court of appeal noted, 'While it is true that Leonard and his companies entered into an agreement with a third party that granted a security interest in some of Leonard's various properties, the evidence demonstrates that he never encumbered any of his rights to the Rin Tin Tin character.'


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