Major Labels Urge Supreme Court to Overturn 'Disruptive' Copyright Ruling
Major music companies, including Universal Music Group, Warner Music Group, and Sony Music Entertainment, have petitioned the U.S. Supreme Court to reverse a recent copyright termination ruling. The decision, won by songwriter Cyril Vetter, allows artists to regain not only American copyrights but also overseas rights to their songs, challenging 50 years of industry practice. Labels argue this ruling is "profoundly wrong" and will cause "chaos" within the music business.
Major music companies have filed a highly anticipated case with the U.S. Supreme Court, seeking to overturn a recent ruling on copyright termination. The labels contend that this decision, which allows artists to reclaim overseas rights in addition to American copyrights, is "profoundly wrong" and will lead to "chaos" for the music business.
The ruling was a victory for songwriter Cyril Vetter, who aimed to reclaim ownership of the 1963 song "Double Shot (Of My Baby’s Love)." This decision by the U.S. Court of Appeals for the Fifth Circuit in January reportedly overturned decades of precedent, which previously limited copyright termination to U.S. copyrights, leaving international rights under the control of labels, publishers, and investors.
In their petition, filed on June 11, the major labels — represented by attorney Paul Clement — described the Fifth Circuit's decision as a "headscratching" and "startling" ruling. Clement, representing Universal Music Group, Warner Music Group, Sony Music Entertainment, and BMG, stated that the ruling "unsettled 50 years of industry practice" and immediately calls into question "countless negotiated agreements backed by billions of dollars."
The labels argued that the Fifth Circuit's decision contradicts the termination statute's language, which states that termination "in no way affects rights arising under any foreign laws." They asserted that this clause was "universally understood" before the Vetter case. The petition highlighted that "for decades, virtually no one even tried to argue that the statute’s plain text could be read any other way."
Clement's argument to the justices emphasized the practical implications, claiming the ruling has already begun to "sow confusion" and cause "chaos" not only for music companies but also for film studios, other entertainment industries, and creators. The petition cited Paul McCartney's 2017 lawsuit against Sony Music concerning his efforts to reclaim Beatles songs via termination, suggesting such a case would have been impossible under the Vetter ruling's interpretation.
According to Billboard, the major labels' petition emphasizes that "the entire creative ecosystem… needs an answer now" to address the uncertainty created by the ruling.
