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RKO then disbanded its distribution organization and ceased to engage in the business of distributing films. Arthur Rank Overseas Film Distributors Limited was licensed to distribute the films involved abroad. On February 1, 1957, Empire Universal Films Limited was licensed to distribute these films in Canada, its maritime provinces and Newfoundland. pictures, in the United States, Alaska, Guam, and to the United States Armed Forces overseas.

Nevertheless, on January 21, 1957, RKO licensed defendant Universal to distribute the films then in RKO’ hands, including the three King Bros. It allegedly received assurances, however, from RKO, General Tire and the individual defendants that in fact no such steps were anticipated. Plaintiff protested on the ground that the rumored action would constitute breach of RKO’s contracts with it.

and the distribution by RKO of three motion pictures, respectively “Drums In The Deep South”, “Carnival Story,” and “The Brave One”.īeginning in mid-November 1956 it was rumored in the motion picture industry and in the press that RKO intended to disband its distribution organization. The first three of these are against RKO only and are for alleged breach of contracts providing for the production by King Bros. The complaint pleads six separate claims. (King Bros.), an independent motion picture producer, sues to recover damages in excess of $12,000,000 allegedly arising out of the discontinuance of the world wide motion picture distribution business conducted by defendant RKO Teleradio Pictures, Inc.