Aрpeal by defendant from a judgment for plaintiffs in an action to recover damages for the breach of an oral agreement granting defendant the *800 right to the exclusive use of the title, “Queen op the Flat Tops,” for all purposes except the right of plaintiffs to continue to use the title in connection with the publication of a book.
Stanley Johnston, referred to as the “author,” was on the aircraft carrier Lexington in the battle of the Coral Sea in May, 1942. Shortly thereafter he wrote a book entitled, “Queen op the Flat Tops,” subtitled, “The U.. S. S. Lexington And The Coral Sea Battle.” The book was published and copyrighted in the United States in 1942 by E. P. Dutton & Company, Incorporated, referred to as “Dutton.” It was one of the first books published to treat in detail of the activities of an aircraft carrier and its crew in combat. The book is nonfictional. It relates historical facts, warfare in the Pacific. It does not contain any fictional character or characterization as such, or any plot or theme. The author and Dutton at all times have been the owners of the book referred to in the record as the “literary property,” and of the copyright. The book became widely known as “Queen op the Flat Tops.” It attained considerable popularity which endowed the title, “Queen op the Flat Tops,” with considerable value. Up to April 14, 1944, Dutton had sold 170,578 copies of the book throughout the world and had expended the sum of $14,669.71 in advertising and publicizing the book. A substantial number of copies of the book were sold in California. About October, 1942, the author and Dutton employed Myron Selznick Agency, referred to as “Selznick,” to vend motion picture rights in the book. Hugh King, acting as “motion picture literary agent” for Selznick, endeavored to effect a sale, contacting all motion picture companies. King was in exclusive charge of the efforts to sell. Early in 1944, appellant was engaged in the production of a motion picture centered about the opеrations of an aircraft carrier. The picture, like the book, related to historical facts, warfare in the Pacific. In March or April, 1944, Zanuck, executive vice-president of appellant in charge of production, empowered to make contracts in its behalf, authorized Julian Johnson, appellant's story editor, to purchase the right to the title, “Queen of the Flat Tops.” Johnson contacted King, and on behalf of appellant offered $2,500 for the use of the title alone, telling King that appellant was only interested in buying use of the title. This offer was re *801 jected by King. After some negotiation, the amount of the offer increasing each time, Johnson, upon authorization of Zanuek, offered King $20,000 for use of the title alone. King told Johnson that that was a fair price and that he would recommend to his principals, respondents, that they accept the offer. In his negotiations with King, Johnson used “the term ‘all rights’ and I meant all rights universally in the various countries.” King did not, at that time, have any authority frоm his principals to accept an offer. It may be inferred from the evidence that, between the $2,500 offer and that of $20,000, Johnson was in constant contact with Zanuek with respect to the amount to be offered. On April 11, 1944, King telegraphed Dutton to the effect that appellant had offered $20,000 for use of the title alone, the material in the book to remain the author’s property. On April 12, Dutton telegraphed King to the effect that it would check with the author immediately regarding the offer. On April 13, the author wrote King to the effect that Dutton and he had agreed that the price was acceptable and authorized King to accept the offer. The letter stated that Dutton was contacting King separately. On April 14, the author telegraphed King to the effect that he had spoken with Dutton and that they were in agreement to sell the title for $20,000. Immediately upon receipt of this telegram and on April 14, 1944, King telephoned Johnson, at appellant’s studio, and told him that the author and Dutton accеpted the offer. Johnson replied, “Thank God, it’s over.” King then dictated an office memorandum, “the blue memo, which meant the closing of the deal.” The same day King went to Johnson’s office, at appellant’s studio, and verbally confirmed his telephone conversation, thanked Johnson for the deal, each party telling the other that he had made a good deal at a fair price, Johnson asking King in whose name the contract would be drawn. At that conversation King said, “You bought the title only; why don’t you buy the whole book and buy the material too?” Johnson replied that their only interest was in the title and “that they didn’t want the material.” Johnson testified that at that time he regarded the deal “as a good deal for the company and for the author and publisher,” and that the title “had a distinct value because Stanley Johnston had written a book giving the saga or story of *802 the ‘Lexington.’ ” On the same day, April 14, Johnson signed and sent to Schreiber, an officer of appellant authorized to make contracts in its behalf, a writing, reading:
‘ ‘ Subject Queen of the Flat-Tops (Titie purchased)
Through the Myron Selzniek Agency (Hugh King representing) we have just purchased all rights to the title of this book. Price, $20,000, which was the figure of our offer— as we discussed the other day.
This is a book published by E. P. Dutton, written by Stanley Johnston.
Mr. Wasson should know, in closing his contract, that we purchased the title only. (We were not interested in the literary material)
I have not notified anyone of this purchase, except Mr. Zanuek.”
On April 17, Schreiber signed and sent to Wasson, resident studio counsel of appellant, the following:
‘ ‘ Subject Queen of The Flat Tops Title Dear George:
We have purchased all the rights to the title of the book, Queen of the Flat Tops, for the price of $20,000. We were not interested in the property, but Mr .Zanuek wanted us to purchase the title only.
Lew Schreiber Lew Schreiber
Dear George: When the papers are ready
will you please contact Hugh King of the Myron Selzniek Agency.”
Upon receiving this writing from Schreiber, Wasson telephoned Johnson and, in his own handwriting, wrote on the same writing, the following: “J. Johnson says: Sellers retain no rights to title for mo. pie. [motion picture], telev. [television], radio or dramatic purposes. Stanley Johnston, author—Dutton.” On the same day, Wasson told Ferguson, an employee in the legal department of appellant, to prepare a contract and that the contract should contain a “waiver of similarity”—a covenant “not to sue re similarities.” On April 17, Ferguson telephoned King asking in whose name the contract should be drawn. On April 17, King telegraphed Dutton, “Closed at Twentieth Friday *803 on ‘Queen.’ In whose name should contracts be drawn? Wire.” The same day Dutton telegraphed King that the contracts should be drawn in the names of the publisher and the author. King so informed Ferguson. On April 17, Wasson telegraphed Kilroe, a copyright searcher for appellant in New York, asking Kilroe to register the title with the Hays Office, saying that appellant proposed to use the title for a picture formerly entitled, “Wing and a Prayer.” The Hays Office was the office of the “Motion Picture Producers and Distributors of America.” On April 25, Kilroe sent a telegram to Wasson, in which he said that “Dutton states deal has been closed through Selznick’s office.” On May 2, Ferguson sent Selznick four copies of a written contract. The proposed written contract transferred to appellant all of the right, title and interest of the author and Dutton in the title, “Queen of the Flat Tops,” including, but not limited to, “the motion picture, radio, dramatic, television and allied rights throughout the world, provided however, that the owners shall have the right to continue to utilize said title in connection with the publication of said literary property,” without any obligation on appellant to exercise or put to use any of the rights acquired, for a consideration of $20,000. The proposed contract also contained provisions which are referred to in .the record as “covenant of nonsuit.” This “covenant of nonsuit” constituted a waiver by respondents of all claims, present or future, against appellant, its successors, licensees and assigns “by reason of any similarity which may exist between any dramatic production, television production, radio broadcast, motiоn picture or pictures, including a remake, reissue or foreign language version thereof utilizing the title ‘Queen of the Flat Tops’ . . . and the literary property hereinbefore mentioned and described,” and required the author and Dutton to obtain a similar waiver from anyone to whom they might sell the motion picture, dramatic, radio or television rights in the literary, property itself, exclusive of rights in the title. Under the terms of the “covenant of nonsuit” appellant could, with impunity, make use of any of the material in the book it desired. Wasson testified that his idea in inserting the “covenant of non-suit” in the contract was to put the risk of pirating by appellant from the book itself on respondents and no.t on appellant. A few days after receipt of the contract by *804 King, one or more conferences were had between Bang, Ferguson and Wasson, at one of which Johnson was present. King insisted that the “covenant of nonsuit” be deleted from the contract insofar as it related to the material in the book; that appellant had bought rights in the title only; that it had not purchased “the literary property”; that purchase of the “literary property” had never been discussed; and that appellant had no right to inject such a clause into the contract. Wasson insisted that the covenant remain in the contract. At the meeting at which Johnson was present, Johnson conceded that appellant had only purchased rights in the title and not any of the material in the book. Neither Wasson nor Johnson made any claim that appellant “had bought anything other than the title to the book.” Wasson told King that either the “covenant of nonsuit” stayed in the contract or he would recommend to appellant’s officers that the deal be called off. King would not agree to its remaining. Wasson then conferred with Zanuck and Schreiber. Wasson told King, on May 11, 1944, “I have got bad news . . . you ain’t got no deal,” and asked him to return the copies of the proposed contract. Bang told Wasson that so far as he, King, was concerned, “they had made a deal and they were going to stick by it.” King returned the copies of the proposed contract to Wasson on May 12. On May 11, King advised the author and Dutton, by telegram, of appellant’s insistence upon the insertion of the “covenant of nonsuit” in the contract and of its effect, that he had refused to accept the contract, and recommended that they not sign the contract as submitted. On May 13, Dutton telegraphed King saying, “We agreed to accept their price for the title alone” and appellant should be “made to stick to the deal.” On May 15, the author telegraphed King. “Agree with McCrae [Dutton] that we should insist Fox carry through deal.” The evidence also shows that acquisition of the right to use the title of a book divorced from any material in the book is a common and usual transaction in the motion picture industry; that titles are of such value in the industry that Motion Picture Producers and Distributors of America maintains an elaborate system for their registration; that motion рicture companies often purchase a title and the literary property with which it is connected in order to obtain use of the title only, without using the literary property.
*805 Respondents commenced this suit, alleging that an oral agreement was made on April 14, 1944, by which appellant had agreed to buy from respondents, and respondents had agreed to sell to appellant, the right to the use of the title, “Queen op the Flat Tops,” for motion picture and all other purposes except that respondents should have the right to continue to use the title in connection with the publication of the book, breach of the agreement by appellant, and damage to respondents in the sum of $20,000.
The trial court, among other things, found that respondents are and were at all times the sole owners of the literary work entitled, “Queen Of The Flat Tops, The U. S. S. Lexington and the Coral Sea,” and the copyright thereon; that “as of and prior to April 14th, 1944, the title, ‘Queen of the Flat Tops’ had acquired а secondary meaning with which the use of said title by others than plaintiffs for motion picture, radio, dramatic or television productions or uses would unfairly compete”; that on or about April 14, respondents and appellant, through their respective agents duly authorized and empowered to so contract on behalf of their respective principals, entered into an oral contract, all of the essential terms of which were then and there mutually understood and agreed upon, whereby appellant agreed to buy from respondents and respondents agreed to sell to appellant for a consideration of $20,000, the right to the exclusive use of the title, “Queen op the Flat Tops,” for all purposes of any and every nature, subject only to the reservation of the right of the respondents to continue to use said title in connection with the publication of said literary work; that it was the mutual intention of the parties to be, and they were, hound by said oral contract оf April 14, 1944, as of the time of the making thereof, although the said oral contract was subsequently to be reduced to writing; that respondents at all times have been ready, willing and able to perform their part of the contract; that appellant had refused to perform the contract unless the respondents, as an express condition of the appellant’s performance, “would in writing agree to waive all claims and covenant not to sue defendant in the event that any similarity should exist between any motion picture, radio, dramatic or television production by defendant utilizing said title, ‘Queen of the Flat Tops’, and the material contained in the plaintiffs’ literary work hereinbefore referred to, which *806 condition the Conrt finds to he contrary to the terms of said oral contract of April 14th, 1944, and therefore unwarranted, and finds defendant’s insistence thereon as a condition to its performance to be a breach of said contract and a repudiation thereof, and finds that the refusаl on plaintiffs’ behalf to consent to such condition was justifiable”; that ever since April 14, 1944, appellant had failed and refused to perform and had breached the oral contract and had failed to pay respondents the purchase price; that respondents had been damaged in the sum of $20,000 with interest; that “the agreement by plaintiffs to grant to defendant the rights as aforesaid to the use of the title ‘Queen of the Flat Tops’ constituted an agreement by plaintiffs both to confer upon defendant a benefit to which defendant was not lawfully entitled and to suffer a prejudice which plaintiffs were not lawfully bound to suffer and that such an agreement constituted a good consideration for defendant’s promise to pay $20,000 for such rights.”
Appellant urges first that there was no consideration for its promise to pay $20,000 because, so it says, respondents “had no vendible property right in the words ‘Queen of the Flat Tops’ which they could lawfully transfer to” appellant. Appellant says in this behalf that therе is no element of property in a literary title or name capable of being transferred separate and apart from the literary work to which it is appended.
Appellant takes the position here inconsistent with, and contrary to, that which it took in the trial court. There it said: “In the instant case, the contemplated contract was for the sale of a part of a literary property. There is an enormous traffic in literary properties, especially in the motion picture industry. Hundreds of law suits involving literary properties have found their way into conrt. However, we have been unable to discover any reported case dealing with the sale of rights in literary property founded upon an oral contract. . . . Though there are conflicting dicta on the subject, it has long been held that there is a property right in a trade mark or trade name . . . the Supreme Court of California, in
Derringer
v.
Plate
(1865)
It would be sufficient for us to say that appellant, upon appeal, cannot deviate from the position it took in the trial court.
(Merchant etc. Assn.
v.
Kellogg E. & D. Co.,
It may be well to emphasize here that what respondents, in fact, granted to appellant, as found by the trial court, was not the title but the exclusive right to use the title for all purposes except in connection with the publication of the book. The author of any product of the mind has an exclusive ownership therein and in the representation or expression
*808
thereof which continues so long as the product and the representations or expressions thereof made by him remain in his possession. (Civ. Code, § 980.) There may be ownership of such products of labor or skill as the composition of an author and of rights created by statute. (Civ. Code, § 655.) The ownership of a thing is the right of one or more persons to possess and use it to the exclusion of others. The thing of which there may be ownership is called property. (Civ. Code, § 654.) The ownership of property is absolute when a single person has the absolute dominion over it and may use it or dispose оf it according to his pleasure subject only_ to general laws. (Civ. Code, § 679.) A product of the mind is property. (16 Cal.Jur. 665; 21 Cal.Jur. 642, §4.) It is an intangible, incorporeal right.
(Italiani
v.
Metro-Goldwyn-Mayer Corp.,
At common law an author has an exclusive property right in his original intellectual production before it is
*810
published. (Drone, “Copyright,” p. 101.) The common law right is an absolute, incorporeal property right. It is not a privilege conferred by statute. It is a right of the common law wherever that system prevails.
(Ferris
v.
Frohman,
Under the statutes of this state, and under the common law, respondents were the owners of the right to the exclusive use of the title. This exclusive use included: its use as the title of the book, as the title of a silent motion picture, as the title of a speaking motion picture, as the title of a radio broadcast, as the title of a dramatic production, as the title of a television production,—dealing with the activities of an aircraft carrier in combat. As owners of these rights, respondents cоuld grant the exclusive right to use the title for any one or more of those purposes. Civil Code, section 1044, provides that “Property of any kind may be transferred, except as otherwise provided by this article.” Section 1044 is in article II of chapter I of title IV. The only property which article II says may not be transferred is a “mere possibility, not coupled with an interest.” Many items of property are
*814
assignable under Civil Code, section 1044, which were not assignable at common law.
(Fudickar
v.
East Riverside I. Dist.,
If appellant, before or without the grant of April 14, 1944, had threatened to use or had used the title, “Queen op the Flat Toрs” for any purpose, it could have been enjoined. The author is protected from misappropriation by pirates and cheats:
(Golenpaul
v.
Rosett, supra,
Fairly, it may be inferred from the evidence that the contents of the book, the literary material, had lost its value at the time of the transaction between the parties, that the only value was in use of the title. The book, in evidence, is wholly historical. As has been said, it treats largely of the exploits of the carrier Lexington and its crew in the battle of the Coral Sea, which occurred in May, 1942. Selznick was given the agency to sell the book for motion picture purposes in October, 1942. Results were nil up to the time that appellant made an offer for use of the title alone in March or April, 1944. During the negotiations between King and Johnson, King made repeated efforts to persuade appellant to buy the literary material without avail. After appellant acquired the right to use the title Selznick continued its effort to sell the literary material to other motion picture producers without success.
*817 The subject matter of the book was publici juris, and, as such, was not protected by the copyright. It was only the manner in which the literary material was set up and the personal reactions of the author which the copyright protected. The fact that the material became valueless was, no doubt, due to the fact that all historical and news events soon lose commercial value as the interest of the public wanes and current news events become the topic of the day and capture the public fancy. The war had progressed аbout two years between the sinking of the Lexington in the battle of the Coral Sea and the grant to appellant. Numerous exploits of men, aircraft carriers, airplanes and other instruments of war had occurred, been written about, and captured public attention. We cannot say, as a matter of law, that because the literary material probably had lost its value the right to use the title also had lost value and for that reason no consideration passed to appellant. Appellant’s officers, at least, thought that the title alone had substantial value.
Property rights exist because they promote the general welfore. As society has developed there has been a corresponding evolution in the development of property rights. Matters considered as near revolutionary a few years ago are now accepted as facts. Legal history shows a continual recognition of new interests and a gradual willingness to protect interests in intangible things. (Warren & Brandeis, 4 Harv. L. Rev. 193; 4 Ford. L. Rev. 307; 45 Tale L. J. 520.) The right of transfer is one of the inseparable incidents of property. A title signifies origin and a certain standard of competence.
(Warner Bros. Pictures
v.
Majestic Pictures Corp., supra,
(2 Cir.)
The next phase of appellant’s argument of want of consideration is that there was no counterpromise on the part of respondents which furnished any consideration for appellant’s promise. This is the point which appellant made in the trial court in support of its plea of want of consideration. The point is wholly without merit. The evidence fully supports the trial court’s finding that “the agreement by plaintiffs to grant to defendant the rights as aforesaid to the use of the title ‘Queen of the Flat Tops’ constituted an agreement by plaintiffs both to confer upon defendant a benefit to which
*819
defendant was not lawfully entitled and to suffer a prejudice which plaintiffs were not lawfully bound to suffer and that such an agreement constituted a good consideration for defendant’s promise to pay $20,000.00 for such rights.” Respondents had the exclusive right to the use of the title for all purposes. Appellant had no right to its use for any purpose. Respondents granted appellant the exclusive right to use the title for all purposes except in connection with the publication of the book. This was adequate consideration for appellant’s promise to pay $20,000. (Civ. Code, § 1605;
Krobitzsch
v.
Middleton,
Appellant next says that “ at no time did the parties consummate a binding contract.” It is said, (a) that neither of the negotiating agents was authorized to enter into a binding contract, (b) that even if Johnson made an offer there was no acceptance by Dutton, (c) that the minds of the parties did not meet on essential elements of the proposed contract, (d) that the parties contemplated that any agreement they might reach was to be reduced to writing and until that was done they were not obligated to each other. It is unnecessary to repeat the evidence which we have stated at length. It is without conflict that both negotiating agents were authorized to enter into a binding agreement, and that Dutton accepted appellant’s offer. If there was any question whethеr King had authority from Dutton to accept Johnson’s offer, which there was not, it is clear that Dutton ratified King’s acceptance before withdrawal of the offer. The same may be said with respect to the contention that the minds of the parties did not meet on essential elements of “the proposed contract. ’ ’ The contention is not that the minds of the parties did not meet upon the essential elements of “a contract.” Civil Code, section 1550, says: “It is essential to the existence of a contract that there should be: 1. Parties capable of contracting ; 2. Their consent; 3. A lawful object; and, 4. A sufficient cause or consideration.” All of these elements were present. Because the agreement did not embody other matters does not affect its validity. Neither is its validity affected because it does not contain provisions which a super-technical lawyer for a motion picture producer would have insisted upon.
The trial court found that the oral agreement of April 14, 1944, was binding on that date, although it was subsequently to be reduced to writing. It has been held repeatedly that when the respective parties orally agree upon all the terms
*821
and conditions of an agreement with the mutual intention that it shall thereupon become binding, the mere fact that a formal written agreement to the same effect is to be prepared and signed does not alter the binding validity of the original oral agreement.
(Thompson
v.
Schurman,
Finally, appellant says that if there was an agreement it was broken through no fault of its own in that rеspondents refused to execute the written agreement proposed by appellant. This contention is so palpably lacking in merit that it should not be considered. Johnson, appellant’s story editor, testified without equivocation that all he purchased was the right to use the title; that he told King, on several occasions, that all appellant wanted was use of the title; that
*822
it did not want any of the material in the book. Notwithstanding, appellant’s resident counsel, Wasson, inserted in the written contract a provision giving appellant unqualified right to use the material in the book, the so-called “covenant of nonsuit. ’ ’ King objected. Appellant, through its resident counsel, then refused to go further with the transaction and refused to pay the purchase price. The oral agreement was breached by appellant.
(Gold Mining & Water Co.
v.
Swinerton,
No other point is presented for our consideration.
Judgment affirmed.
Shinn, Acting P. J., and Wood, J., concurred.
