
Photo Credit: David Burke / CC by 2.0
Right on cue, the “Push It” act submitted the more than 60-page appeal yesterday, after filing a related notice in late February. We’ve been covering the showdown in detail from the outset; Salt-N-Pepa levied the action following “failed negotiations” with UMG over multiple termination notices.
As many know, these notices, spearheaded under Section 203 of the Copyright Act, are seeking to enable Salt-N-Pepa to assume ownership of several early recordings.
Furthermore, Salt-N-Pepa is hardly alone in pursuing recaptures – a multifaceted process that, in brief, is said to be on the table for certain copyright transfers finalized under non-work-for-hire agreements in or after 1978.
UMG moved to dismiss because Salt-N-Pepa members Cheryl James and Sandra Denton had allegedly failed to transfer the copyrights under the appropriate contracts.
In the major’s view, that would render the efforts works for hire and not subject to Section 203 terminations. The district court concurred, finding that the agreements “do not indicate that Plaintiffs ever owned the copyrights to the sound recordings or that they granted a transfer of those rights to anyone else.”
Said requirement refers to whether Salt-N-Pepa “asserted their ownership of the copyrights” in the contracts despite the alleged absence of any “such requirement under the law.”
“The District Court’s newly-invented requirement (express assertion of ownership) finds no basis in the statute, this Court’s decisions, in the persuasive authorities from its Sister Circuits, nor Supreme Court precedence,” the legal document drives home. “Tellingly, the District Court provides no authority to support this statement of the law.”
Additionally, the district court allegedly “erred in its implicit finding that the sound recordings are works made for hire,” the appeal reads in part.
Unsurprisingly, in light of terminations’ inherent complexity, those are just some of the many angles covered in the appeal. Among other things, the latter explores the technical details associated with copyright transfers and verb tenses’ relevance in the contracts (the “[u]se of present participles in contract signal a present, ongoing, and continuous action or obligation”).
And the duo’s “catalog generated approximately one million dollars in royalties in the five months preceding this lawsuit, alone,” according to the filing.
Running with this point, the stakes are even higher than before given Salt-N-Pepa’s mention of the Vetter v. Resnik decision, which found that stateside copyright terminations apply globally in the absence of a geographic limit tied to the underlying transfer.