A Night in Casablanca storyline for the film was intended to be a direct parody of "Casablanca," with the characters having similar-sounding names to the characters and actors in the 1942 film. Groucho Marx has said that an early draft named his character "Humphrey Bogus", a reference to the leading actor in "Casablanca," Humphrey Bogart. Warner Bros. did not actually litigate, or even threaten to litigate, but it did issue a formal inquiry to the Marx Brothers concerning the plot and script of the film. The Marx Brothers exploited the situation for publicity, making it appear to the public that a frivolous lawsuit was
Casablanca Records eventually given by Warner and Bogart started the new label, bringing Harris, Holmes, and Reingold with him. Bogart called the label Casablanca as it was the name of his favorite film, and he also had the same last name as its star Humphrey Bogart. Also, since Warner Bros. owned the rights to the title of the film "Casablanca", Bogart knew there would be no lawsuit against him regarding the name Casablanca Records. The label's first signing was the rock group Kiss, however, the label's first single was Bill Amesbury's "Virginia (Touch Me Like You Do)" which became a minor hit