Copyright Office Clarifies Termination Rights, Royalties; Baldwin/Rust Case Dismissed
Intro
The latest Entertainment Law Update Podcast covers NFL Anti-Trust decision; Record Labels suing over generative AI; Life Rights and copyrights assigned to victims’ families; Copyright Office clarifies Termination Rights, Royalty Distributions, Ownership Transfers, Disputes, and the Music Modernization Act. There’s much more in this episode of the Entertainment Law Update Podcast.
Artificial Intelligence (AI) Corner Update:
UMG Recordings, Sony Music Entertainment, Warner Records, LTD and other record labels filed lawsuits against generative AI developer Suno, Inc., developer of Suno AI, in the United States District Court for the District of Massachusetts and against Uncharted Labs, Inc., developer of Udio AI, in the United States District Court for the Southern District of New York. The cases seek: (1) declarations that the two services infringed plaintiffs’ copyrighted sound recordings; (2) injunctions barring the services from infringing plaintiffs’ copyrighted sound recordings in the future; and (3) damages for the infringements that have already occurred.
Music Publishing Royalty and Copyright Grant Termination Update:
The Copyright Office issued a final rule in its proceeding “Termination Rights, Royalty Distributions, Ownership Transfers, Disputes, and the Music Modernization Act.” This final rule confirms the derivative works exception to termination rights under the Copyright Act (the “Exception”) does not apply to the statutory mechanical blanket license established by the Music Modernization Act. It directs the mechanical licensing collective (“MLC”) to make future royalty distributions in a manner consistent with this understanding of the Exception and to engage in a corrective royalty adjustment process to correct earlier over-payments made based on an erroneous understanding of the Exception.
Trademark Update:
In Gibson, Inc. v. Armadillo Distribution Enters., Inc., No. 22-40587, slip op. at 1 (5th Cir. July 8, 2024) on appeal the court held the jury should have heard evidence of third party use vis-a-vis genericness at the trial. The case was reversed and remanded with instructions to hold a new trial.
These topics and much more discussed by film lawyer Gordon Firemark and music copyright lawyer Tamera Bennett.
ResourcesUMG Sues Over Generative AI (UMG et. al. v. Suno Inc., 1:2024cv11611 (D. Mass. June 24, 2024)).
Copyright Office Termination Rights Derivative Works Exception - Music Modernization Act
