Hurn v. Oursler
Facts
Petitioners alleged that respondents' play, "The Spider," infringed petitioners' copyrighted play, "The Evil Hour," and also constituted unfair business practices and unfair competition. The bill also alleged that a revised, uncopyrighted version of petitioners' play had been submitted to respondents and that respondents appropriated the idea of a spiritualistic seance and certain incidental elements. The parties were citizens of the same state, so federal jurisdiction depended on the copyright claim. The trial court found that "The Spider" did not infringe the copyrighted play in any way and then treated the unfair competition allegations as outside federal jurisdiction.
Issue
When a complaint includes a substantial federal copyright claim and a non-federal unfair competition claim, may the federal court decide the non-federal claim on the merits if it rests on the same facts and supports the same cause of action? Conversely, may the court hear a non-federal claim concerning an uncopyrighted version of the work when that claim is independent of the copyright claim?
Rule
If a substantial federal question is pleaded and the non-federal ground is not a separate and distinct cause of action but merely another ground supporting the same cause of action, the federal court may retain and decide the entire case on the merits even if the federal ground fails. But a federal court may not assume jurisdiction over a separate and distinct non-federal cause of action merely because it is joined in the same complaint with a federal cause of action. For this jurisdictional inquiry, the distinction is between different grounds supporting one cause of action and separate causes of action asserting violations of distinct rights.
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If the copyright claim is substantial when pleaded but the judge later finds no infringement, what is the best jurisdictional result as to the unfair competition theory?