Skip to main content
SearchLoginLogin or Signup

Battle of the Royalties

Published onOct 01, 2013
Battle of the Royalties

After a big win for Victor Willis, the songwriter of the classic “YMCA” song, a Copyright Law amendment dating back to 1976 is finally showing its powerful effects. The Law allows songwriters to reassert their rights to royalties of songs they created, even if those rights were previously signed away, after thirty-five years has passed. The transfer of rights is automatic after the 35 years expires, requiring only that the songwriter apply for the transfer at least two years in advance. The amendment only applies to those songs created after January 1, 1978. As the thirty-five year term ends for the songs signed away around that time, heated debates are ensuing between the songwriters and record companies.

Record companies argue that the songs, although written by the songwriters, are their intellectual property in perpetuity based on the employer-employee relationship. The record companies assert that the songwriters were their employees, and thus any work they produced is the company’s property and does not belong to the individual songwriters. The songwriters, on the other hand, argue that they were merely independent contractors for the record companies, and the songs they created belong to them.

Not only is this creating a battle between record companies and the songwriters, but also economists are generally concerned with how the transfer of rights will affect the economy. While most are not necessarily stating whether they believe it will have a negative or positive effect on the industry, some are more outspoken and believe this could have disastrous effects. If the record companies lose out on the rights and royalties to songs that have been bringing in extensive business for years, the significant decrease in profits from these songs may have a serious impact on these companies. Based on these concerns, amongst others, all four major record companies, including Universal, Sony BMG, EMI and Warner, have indicated that they do not plan to relinquish their recording rights without a fight.

While unbeknownst to many, this law has recently affected some major hits, ranging from songs written for the Beatles and the Rolling Stones, songs written by Bob Marley, and those written by Bob Dylan, Tom Petty, Bryan Adams, Loretta Lynn, Kris Kristofferson, Tom Waits and Charles Daniels. These artists have already filed for the transfer of rights with the United States Copyright Office.

Thus far, the courts have generally ruled in favor of the songwriters, upholding the Copyright Law Amendment of 1976. One of the only significant cases that ruled in favor of the record companies was a suit brought by the heirs of Bob Marley against Universal Music, in the hopes of regaining control of and collecting royalties on five of Marley’s albums. The court held for Universal Music, but only applied their holding to those songs that were considered recordings prior to the January 1, 1978 cut-off date.

Many songwriters and musicians are excited for the opportunity to regain control of their work. Some explain that they may again relinquish the rights to their songs and sign them over to a recording company after regaining control, but they now have the ability to shop around and re-work a more financially beneficial deal.

While at this time it is unclear exactly what long-term effects this Copyright Law will have, it is obvious that it will be an on-going battle between the songwriters and record companies, each vying for control over the songs and the royalties, and each one believing that they are the rightful owners.

* Samantha Berner is a second year law student at Wake Forest University School of Law. She holds a Bachelor of Arts in Criminology from the University of Florida.

Comments
0
comment
No comments here
Why not start the discussion?