News and Views
Press Release Cases and Deals

Blank Rome Secures Favorable Decisions for Recording Artists’ Copyright Termination Claims in Pending Class Actions against Universal Music and Sony Music

Blank Rome LLP is pleased to announce that the Firm received favorable decisions in Waite v. UMG Recordings (Universal Music) and Johansen v. Sony Music Entertainment, two closely watched class actions pending in the U.S. District Court for the Southern District of New York. The decisions are notable and are expected to receive significant media attention given the importance of these particular legal issues in the music industry.

The Blank Rome team representing the Plaintiffs and the Classes in these cases consists of David M. Perry, Roy W. Arnold, Ryan E. Cronin, and  Gregory M. Bordo. The following is a summary of the rulings.

Waite v. UMG Recordings (Universal Music)

The U.S. District Court for the Southern District of New York ruled on March 31 that musicians could proceed with their class action lawsuit alleging Section 203 copyright termination and infringement claims against recording industry giant, UMG Recordings, Inc. (“Universal Music”). The federal district court rejected, among other things, Universal Music’s argument that the musicians’ claims were time-barred based on the Copyright Act statute of limitations, and cast doubt over Universal Music’s longstanding reliance upon its insertion of “work made for hire” language in the musicians’ recording contracts. The court held that the plaintiffs’ claims were timely and explained that Universal Music’s argument “would thwart Congress’s intent and eviscerate the [termination] right itself.” The court also determined that Universal Music’s attacks on the validity of the artists’ termination notices involved mere “harmless errors.” The court’s ruling allows the plaintiffs and the alleged Class to move forward on their termination and infringement claims seeking actual and/or statutory damages for sound recordings that Universal Music has continued to exploit after the effective date of the termination notices.

Blank Rome Partner Roy Arnold, who argued in opposition to Universal’s motion in early February, stated, “We’re gratified that the Court rejected Universal’s core arguments and look forward to proceeding with the case to vindicate the recording artists’ rights.”

Additional information on this decision can be found below:

Johansen v. Sony Music Entertainment (Sony)

In a separate March 31 decision by a different judge, the U.S. District Court for the Southern District of New York ruled that musicians can proceed with their class action lawsuit alleging Section 203 copyright termination and infringement claims against recording industry goliath, Sony Music Entertainment (“Sony”). The federal district court rejected, among other things, Sony’s argument that the musicians’ claims were “defective,” based upon minor alleged “scrivener’s” errors in the plaintiffs’ notices of termination. The court’s ruling allows the plaintiffs and the alleged Class to move forward on their termination and infringement claims seeking actual and/or statutory damages for sound recordings that Sony has continued to exploit after the effective date of the termination notices.

Additional information on this decision can be found below: