Movie Distribution: Warner Bros. sued Hollywood Video Library, a film distribution firm that Warner contends has illegally offered and sold rights on four movies belonging to Warner. HVL is accused of unlawfully distributing the films in Italy and Spain. In the federal lawsuit alleging copyright infringement and false designation of origin, Warner asserted that HVL has jeopardized at least one Warner contract to put the 1970 movie "Grasshopper," starring Jacqueline Bisset, on Italian TV. At least one Italian TV station has refused to air "Grasshopper" as scheduled because of the companies' dispute over its distribution rights, the suit said. The other films on which HVL is accused of violating Warner's copyright are "A Dream of Kings," starring Anthony Quinn; "Falling in Love Again," starring Elliott Gould and Susannah York, and "The Defector," starring Montgomery Clift. The suit seeks an injunction against HVL and unspecified damages. (Case No. 91-0188. Filed Feb. 12).