Supreme Court Won’t Overturn Landmark Music Copyright Termination Ruling
The justices used a rare maneuver to uphold a ruling for songwriter Cyril Vetter that major music companies have warned will cause "chaos" for the industry.
On Monday, the U.S. Supreme Court declined to overturn a landmark decision that extended copyright termination rights globally, rejecting an appeal from major record labels claiming it would cause chaos in the music industry. The court upheld a January ruling that allowed artists to regain not only American copyrights but also overseas rights to their songs through termination.
This decision overturned decades of industry precedent and was hailed as a "game-changer" for musicians. Universal Music Group, Sony Music, Warner Music Group, and BMG had urged the Supreme Court to overturn the ruling, citing disruption to billions of dollars in negotiated agreements. However, the court refused, leaving Vetter's previous win intact.
Lower appeals courts, such as those covering New York and Los Angeles, are not obligated to follow the same ruling, potentially creating a circuit split. If different circuits interpret the issue differently, it could prompt the Supreme Court to revisit the matter in the future. Termination is a federal provision that allows creators to reclaim their copyrights after selling them, but it has only ever applied to U.S. rights, leaving overseas rights in the hands of publishers.
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