"Happy Days" Actors Prep Lawsuit Against CBS Over Merchandising Revenues
by Chris Harnick
posted Apr 19th 2011


The cast of "Happy Days" aren't too, well, happy, with CBS.

Anson Williams, Don Most, Marion Ross, Erin Moran and the estate of the late Tom Bosley are suing CBS over merchandising revenues. According to CNN, the actors claim CBS has cut them out of money they are owed for products such as T-shirts, comic books, dolls and DVDs.

The actors say that under their contracts, they were supposed to be paid 5 percent of the net proceeds if their sole image appeared on the product and 2.5 percent if their image appeared in a group.







Jon Pfeiffer, the attorney for the "Happy Days" actors, said he expects to file a lawsuit against CBS today.

"The issue is the five cast members of 'Happy Days' were not paid for the royalties for their name and likeness," Pfeiffer told CNN.

"That being the use of their picture, use of their name in slot machines, in games, in greeting cards, in t-shirts, anything where you saw a 'Happy Days' face of a character, they were not paid for that."







CBS told the actors that they are owed between $8,500 and $9,000 for the last four years, most of the revenue coming from "Happy Days" slot machines that bear their likenesses. However, the actors claim they are owed millions of dollars.

According to Pfeiffer, attempts at mediation between his clients and CBS have failed.

"We agree that funds are owed to the actors and have been working with them for quite some time to resolve the issue," CBS told CNN via an emailed statement,

http://www.tvsquad.com/2011/04/19/happy-days-cast-lawsuit-cbs/

What about Henry and Ron? I know they probably don't need the money, but they should've joined their castmates in support.

From what I know the big issue with DVD's is that since they weren't even dreamed of in the 70s, nothing regarding the sale of episodes/seasons was included in the cast contracts back then.

From what I know the big issue with DVD's is that since they weren't even dreamed of in the 70s, nothing regarding the sale of episodes/seasons was included in the cast contracts back then. Right, but the whole issue is merchandise bearing their likenesses. Even if the actual episodes themselves are out of the question (which they may or may not be), their pictures are still on the packaging and such.

WOW. I hope this all works out for the best!!

Right, but the whole issue is merchandise bearing their likenesses. Even if the actual episodes themselves are out of the question (which they may or may not be), their pictures are still on the packaging and such.


You're right, I forgot about the pics on the DVD cases.


Here's another article with a short video interview of the cast:

"Happy Days" actors claim CBS cheated them out of fees (CNN Money) (http://money.cnn.com/2011/04/19/news/companies/happy_days_fraud_claim/index.htm)

Another cast video interview from "Today":
http://www.tvsquad.com/2011/04/22/happy-days-cast-lawsuit-against-cbs/

CBS Fires Back at "Happy Days" Lawsuit
June 24, 2011
By Scott Zamost, CNN Special Investigations Unit


CBS says stars of the hit TV show "Happy Days", who are suing the company for unpaid merchandising revenue, don't have a case.

The company, which owns the iconic show, said in a 15-page response to the lawsuit filed in Los Angeles Superior Court, that the case is "a garden-variety breach of contract action, nothing more."

"However, rather than simply seek what they are purportedly owed under their contracts, plaintiffs are attempting to generate a lucrative litigation windfall by riddling their complaint with unsupported and overreaching causes of action" for fraud and breach of good faith.

CBS said this was "all done in a transparent attempt to introduce the specter of punitive damages" in the case.







Four members of the cast -- Marion Ross, Don Most, Anson Williams and Erin Moran -- as well as the estate of Tom Bosley, sued CBS in April, claiming they have not been paid for what they're owed in connection with the worldwide sale of "Happy Days" merchandise.

"Happy Days" was originally on the air from 1974 to 1984. Bosley died in October.



Under their contracts, the actors were supposed to receive 5% of net proceeds, or 2 1/2% if their images were used in a group.

In exclusive interviews with CNN earlier this year, the four cast members said they decided to move forward after discovering "Happy Days" slot machines were popping up in casinos around the country in 2008.

"When these slot machines came out, it was like Barnum and Bailey came to town," Williams told CNN. "We were bombarded with, oh look at these pictures, they'd be all over the country."

The actors said when they couldn't resolve their differences with CBS during mediation earlier this year, they decided to file suit.






The lawsuit says the show:

"epitomizes what is best in America with the Cunningham family exemplifying the best of what a family can be. As will be proven at trial, defendants' actions epitomize what is worst in corporate America, exemplifying the worst business practices."

It claims that CBS "adopted a 'don't ask, don't pay' policy. If you don't ask, then we don't pay.'" The suit asks for $10 million in damages.






However, CBS says there is no evidence of fraud, and the actors "offer no basis for their vague allegation that defendants did not intend to pay merchandising royalties to plaintiffs at the time the parties entered into the agreements."

"Instead, all plaintiffs can allege is that defendants ultimately failed to pay," which is "insufficient as a matter of law to show fraud."






The company disputed that it "concealed" its obligation to pay merchandising revenues. Instead, it said the actors "were simply ignorant of, or slept upon their own rights. That cannot serve as a basis for a fraud claim."

CBS said in a statement that the actors "are owed royalties from the merchandising of 'Happy Days' and have, in fact, been working with their representatives for some time to see that they are paid what they are due."






Neither Ron Howard, the Oscar-winning director who played Richie Cunningham, nor Henry Winkler, who played The Fonz, are part of the lawsuit.

Howard had no comment.

Winkler, who told CNN earlier this year that he supported the actors in their case, said he was paid for merchandising, including his image and voice on the slot machines. He would not say how much.

http://articles.cnn.com/2011-06-24/entertainment/happy.days.lawsuit_1_cbs-fires-happy-days-happy-days?_s=PM:SHOWBIZ

Kinda makes you wonder if maybe CBS didn't want to pay the other actors. Just Howard and Winkler.

I think that this is one of the main reason why we will not see anymore of the happy days dvds release because of this, and i have said to myself when CBS joined paramount as one that they were going to make some changes and the same exact issues could be happening with laverne and shirley as well as with mork and mindy

I'm with Monika. I hope they can resolve this issue as soon as possible.

i was just watching on you tube the cast of happy days talking about the issues thats going on with the money that they should be getting as using there photos on the product, and this reminds me in somewhat of a way of whats going on with the NFL how every body wants there cut, and i am asking myself, where is gary marshal in all of this he did create the show, i suprized he is not getting involved in this matter, this looks bad, which was why i was saying along time ago that when cbs became one with paramount things were going to change and based on the cast demaning there cut, i do not think that the rest of the series will be released its ashame but what can we do nothing

What a slap in the face to these people. I think the laws need to be changed so that actors can get residuals from DVD sales in addition to syndication and having their likeness on items.

It all depends on what was included in their contracts when deals were initially negotiated. They didn't anticipate home video back then, so that wasn't a part of their contracts. You can't retroactively go back and add that stuff in. These days, there probably are provisions in contracts to cover such DVD releases.

Just like what is going on in the NFL they better get it together

Link (http://www.fnno.com/story/news-corner/331-cbs-settles-case-happy-days-cast-members-cbs-news-corner)

Cast members of the classic TV show, Happy Days settled a suit with CBS after former cast members sued CBS Studios (NYSE:CBS) last April in search of $10 million in profits for Happy Days Merchandise. Cast members received between $6,000 and $6,500.

CBS declined to comment Wednesday, but the network said in an earlier statement that it was aware of the issue and was seeking a resolution. "We agree that funds are owed to the actors and have been working with them for quite some time to resolve the issue," it said in April.

CBS has a potential upside of 5.5% based on a current price of $28.77 and an average consensus analyst price target of $30.35.

CBS is currently above its 50-day moving average (MA) of $27.10 and above its 200-day of $22.22.

In the last five trading sessions, the 50-day MA has climbed 0.19% while the 200-day MA has risen 0.79%.

CBS Corporation is a multimedia company that operates broadcasting, television production, and publishing businesses. The Company operates television and radio stations, produces and syndicates television programs, publishes books, provides online content as well as provides outdoor advertising.

Hi guys, I'm Pavan's friend and the author of the "Three's Company" book "Come and Knock On our Door." I thought you might like to see my new blog post about this "Happy Days" lawsuit on my Retroality.TV blog:

http://retroalitytv.blogspot.com/2011/07/defamation-delusion-damaging.html

Would love to hear your thoughts and welcome your comments on the blog.

Thanks!
Chris Mannhttp://retroalitytv.blogspot.com/2011/07/defamation-delusion-damaging.html

"Happy Days" cast gets paltry payment in lawsuit over profits (MSNBC.com) (http://scoop.today.com/_news/2011/07/21/7133416-happy-days-cast-gets-paltry-payment-in-lawsuit-over-profits)

That's kind of messed up on CBS' part, paltry is right very sad.

Will the dvd of the show still be released or is it still up in the air

Fraud claim thrown out in "Happy Days" lawsuit
By Scott Zamost, CNN[/SIZE]
October 20, 2011

(CNN) -- A California judge Wednesday threw out a claim by cast members of the hit television show "Happy Days" that CBS committed fraud by not paying them for merchandising sales.

Los Angeles Superior Court Judge Elizabeth Allen White ruled in favor of CBS on the fraud claim, meaning the case will proceed only with a breach of contract suit. The cast had sued CBS for $10 million, alleging fraud.

The decision means the actors cannot receive punitive damages at the trial, which is scheduled for June 26, 2012.

The actors claim they never received revenue statements related to merchandising, and that CBS intentionally never intended to pay them anyway.

"The exact details of this alleged promise to provide periodic revenue statements when merchandising revenue had been generated have not been pled with the requisite level of specificity required, such as, who said exactly what to whom and they those representations were known to be false when made," according to the court ruling.

In a statement, a spokesperson for the CBS Consumer Products Division said, "We are thrilled that the court has thrown out all claims for punitive damages and significantly narrowed this to a case of contract interpretation."
Jon Pfeiffer, attorney for the actors, told CNN they were disappointed. "But we intend to press forward with the lawsuit. If we can't punish the defendants, we certainly intend to expose their practices," he said.

Four members of the cast -- Marion Ross, Don Most, Anson Williams and Erin Moran -- along with the widow of Tom Bosley, in April sued CBS, which owns the show, claiming they have not been been paid what they're owed for the worldwide sale of "Happy Days" merchandise. The series was on the air from 1974 to 1984. Bosley died last October.

Under their contracts, the actors were supposed to receive 5% of net proceeds, or 2 1/2% if their images were used in a group, the lawsuit states.

In court papers, CBS claimed the actors "are attempting to generate a lucrative litigation windfall by riddling their complaint with unsupported and overreaching causes of action" for fraud and breach of good faith. The company said this was
"all done in a transparent attempt to introduce the specter of punitive damages" in the case.
CBS said the case was "a garden-variety breach of contract action, nothing more."

The actors accused CBS of "despicable conduct," saying "although defendants routinely rebrand their corporate images, they should not be permitted to rebrand the truth."

In interviews with CNN earlier this year, the actors claimed they were cut out of the merchandising bonanza from the show. Those products include comic books, T-shirts, scrapbooks, trading cards, games, lunch boxes, dolls, toy cars, magnets, greeting cards and DVDs where their images appear on the box covers.

In documents provided to the actors, CBS said it only owes them between $8,500 and $9,000 each for the last four years. Most of that money is from slot machine revenues. The actors claim they are owed millions of dollars.

(http://edition.cnn.com/2011/10/19/showbiz/happy-days-lawsuit/)

"Happy Days" Lawsuit: Stars Cleared For Trial Over Royalties
06/05/12 - AP


A judge has denied a motion by the makers of "Happy Days" to dismiss claims by several former cast members that they are owed royalties on DVD sales.

Superior Court Judge Elizabeth Allen White's ruling Tuesday clears the way for a trial on whether actors Anson Williams, Marion Ross, Don Most, Erin Moran and the widow of Tom Bosley may still be owed royalties on the use of their images in DVD packaging.

CBS Studios and Paramount Pictures sought to have their claims dismissed, arguing the group was properly paid.





Attorney Jon Pfeiffer says the group has received payments for several other types of merchandise since they sued in April 2011. He says the unpaid royalties are worth an estimated $250,000 to $500,000.

Defense attorneys declined to comment.

http://www.huffingtonpost.com/2012/06/05/happy-days-lawsuit-cbs-royalties_n_1571518.html?ref=tv

http://abcnews.go.com/blogs/entertainment/2012/06/happy-days-star-donny-most-says-somethings-not-right-about-show-merchandising-payout/


"Happy Days" Star Donny Most Says Something's "Not Right" About Show Merchandising Payout

By ABC News

Back in the 1970s, the hit sitcom “Happy Days” looked back at the 1950s. The show depicted a kinder, gentler era, but the days since haven’t all been happy for many of the show’s stars.

Those stars – Erin Moran, Marion Ross, Anson Williams, Donny Most – and Tom Bosley’s widow, Patricia, sued CBS last year alleging they are owed royalties from the use of their images in merchandise that includes shirts, scrapbooks, cards, games, lunch boxes, dolls, DVDs, magnets and slot machines.

The actors brought the suit after they found out about “Happy Days”-themed slot machines in Las Vegas. The plaintiffs are seeking $10 million from CBS for alleged breach of contract,Aaccording to the Hollywood Reporter.

Ron Howard, now a successful film director, and Henry Winkler, who played Fonzie, are not part of the lawsuit.

“I never received anything for all of that merchandise,” Most, 58, better known to the show’s fans as the character Ralph Malph, told “Good Morning America” correspondent David Wright in a recent interview.

“They had separate deals from the five of us,” Most told “GMA.” “Henry’s been being paid for merchandise all this time. Isn’t that funny Henry was paid but we weren’t? So there’s something not right about that.”

The show’s owner, CBS, tried to have the lawsuit dismissed, but a Los Angeles judge ruled Tuesday that a lawsuit brought by Moran and other “Happy Days” regulars can go to trial. A start date of July 17 was set.

Ross, who played Mrs. C, recently starred as the voice of SpongeBob SquarePants’ grandmother. Williams, who played Potsie Webber, went on to direct episodes of popular TV shows including “Star Trek: Deep Space Nine” and “Xena: Warrior Princess” and “Charmed.”

But things apparently have not gone as well for Moran, who played Joanie. She reportedly has had trouble finding acting work, and after losing their home, she and her husband reportedly have moved into a trailer park.
“Erin and her husband did in fact move in with her ailing mother-in-law over a year ago,” Moran’s publicist told ABCNews.com last week. “They are helping take care of her, as any loving family would do.”

Bosley, who played Mr. C, died last year. Most still acts, and has played guidance counselor Emma Pillsbury’s father on “Glee.”

RON HOWARD: 'Happy Days' Cast Will Triumph in Royalties Battle (TMZ) (http://http://www.tmz.com/2012/07/03/ron-howard-happy-days-cast-cbs-lawsut-royalties/)

While I believe that the Happy Days cast rightfully deserves their money, I really hope this doesn't set a precedent of paying even more royalties for the use of cast images on DVD artwork. Some shows are already buried in a mountain of royalty/financial crap. Adding yet more licensing fees will just complicate it that much more. I can see the likes of Adam West and Burt Ward throwing another wrench into the system that is already holding up a home video release of Batman. The studios will then be forced into cutting more corners and just omitting them from the artwork completely. Mark my words...

I saw many interviews with the cast of Gilligans Island who get nothing and basically were paid for what they did at the time and that was it.

I actually agree with that because in the end, the fans get screwed the worst. I have been holding my breathe for the TV 1960s Batman show that will NEVER come out on DVD and Blue Ray until everyone involved dies. Actors, producers, directors, the network...bla...bla... oh but WAIT! Then there's the children and grandkids who will continue the legal hold up. THANKS A LOT you rotten good for nuthins!

I feel that now is a perfect time to revisit (https://www.reddit.com/r/television/comments/155mxci/the_happy_days_lawsuit/) the Happy Days lawsuit in light of the ongoing actors strike (https://en.wikipedia.org/wiki/2023_SAG-AFTRA_strike):
On April 19, 2011, (Erin) Moran, three of her Happy Days co-stars—Don Most, Anson Williams, and Marion Ross—and the estate of Tom Bosley, who died in 2010, filed a $10 million breach-of-contract lawsuit against CBS, which owns the show. The suit claimed that cast members had not been paid merchandising revenues owed under their contracts. Revenues included those from show-related items such as comic books, T-shirts, scrapbooks, trading cards, games, lunch boxes, dolls, toy cars, magnets, greeting cards, and DVDs with cast members' likenesses on the box covers. Their contracts entitled the actors to be paid 5% of the net proceeds of merchandising if a single actor's likeness was used, and half that amount if the cast members were pictured in a group. CBS stated it owed the actors between $8,500 and $9,000 each, most of it from slot-machine revenues, but the group stated they were owed millions. The lawsuit was initiated after Ross was informed by a friend playing slots at a casino of a Happy Days machine on which players won the jackpot when five Marion Rosses were rolled.[20]

In October 2011, a judge rejected the group's claim of fraud, thereby eliminating the possibility of recouping millions of dollars in damages.[21] On June 5, 2012, a judge denied a motion to dismiss filed by CBS, which meant the case would go to trial on July 17 if not settled by then.[22] In July 2012, the actors settled their lawsuit with CBS; each received a payment of $65,000 and a promise from CBS to continue honoring the terms of their contracts.

From Erin Moran’s Wikipedia entry (https://en.wikipedia.org/wiki/Erin_Moran).