Orange County Choppers, Inc. v. Olaes Enterprises, Inc

In Orange County Choppers, Inc. v. Olaes Enterprises, Inc. (497 F Supp 2d 541 [SDNY 2007]), defendant Olaes Enterprises, Inc. d/b/a ODM ("ODM") alleged in its counterclaim that it entered into a licensing agreement with Discovery Channel granting it the right to manufacture, promote, advertise, sell and distribute merchandise with the brand name "American Choppers," the Discovery Channel television show featuring plaintiff Orange County Choppers, Inc ("OCC"). ODM claimed that OCC threatened to cease production of "American Choppers" if Discovery did not terminate its agreement with ODM, which caused Discovery to revoke its agreement with ODM. It also alleges that, at a trade show in February 2006, Discovery's licensing representatives abruptly interrupted a meeting with ODM and insisted that Discovery representatives end the meeting with ODM. The Court stated that "Conspicuously missing, however, is whether Discovery actually breached the contract with ODM. ODM merely alleges that 'On information and belief, OCC's threats constituted willful interference with ODMs contract with Discovery, causing a loss of an existing relationship and prospective economic advantage.'" The Court held that ODM's allegations were deficient "because they leave open the possibility that Discovery lawfully terminated the contract or that the contract was terminable at will ...."