UPDATE: Fox Settles Madoff Yacht Footage Copyright Infringement Suit

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The parties in Kenneth Stadt v. Fox News Network LLC (Case No. 1:09-cv-07910) have filed a stipulation of dismissal with the U.S. District Court for the  Southern District of New York. Terms of the settlement were not disclosed.

The lawsuit against Fox News, which included counts alleging copyright infringement, conversion and breach of contract, was brought by Stadt, who provided footage of convicted financial scam artist Bernie Madoff and the Mrs. frolicking on a friend's yacht. [See "TUOL" posts 6/28/10, 9/17/09.]

UPDATE: Judge Allows Contract Claim Against Fox News to Proceed

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Judge Shira Scheindlin of the U.S. District Court for the Southern District of New York has ruled that Fox News must answer to a breach of contract claim for its alleged continued airing of footage of convicted Ponzi artist Bernie Madoff and his spouse enjoying a spin on a yacht.

The case, Kenneth Stadt v. Fox News Network LLC (Case No. 1:09-cv-07910), was brought in September 2009, by the owner of  the video footage and included counts alleging copyright infringement, conversion, breach of contract and breach of fiduciary duty. [See "TUOL" post 9/17/09.] Fox sought to dismiss the latter three "state claims," arguing that they were preempted by the Copyright Act.

Judge Scheindlin obliged as to the conversion and fiduciary duty allegations, but sided with the plaintiff in her 23-page decision that Fox's alleged ongoing promotion of the Stadt footage as a "Fox Business Exclusive," could constitute a material breach of contract.  According to Stadt's original complaint, Fox paid him $10,000 in January of last year for the exclusive right to air the Madoff footage for 45 days, and then coughed up another $50,000 to show the Madoffs at sea for another 45 days. The plaintiff contends that Fox continued to show the allegedly copyrighted video of the seaworthy scammer once the exclusive rights period expired.

Fox News Sued for Continuing to Air Madoff Video

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Footage of  Bernie on a boat could prove costly to Fox News.

Judge Denny Chin of the U.S. District Court for the Southern District of New York will hear claims of copyright infringement and breach of license agreement in the case of Kenneth Stadt v. Fox News Network, LLC (Case No. 1:2009cv07910) filed this week.  Stadt owns the video at issue, which shows convicted scammer Bernard Madoff and his wife frolicking on a yacht (Note: even if you're standing still, if it's aboard a yacht, it's frolicking).

Fox paid Stadt $10,000 on January 8, 2009, for the exclusive rights to air the Madoff footage over a period of 45 days. Fox ponied up another $50,000 to extend its exclusive rights another 45 days, which has since expired.  Stadt is suing for $500,000 over Fox's alleged continued use of the purportedly copyrighted video.

Fox News: We infringe, you decide? That's for Judge Chin to decide.