Dale Nelson Analyzes Landmark Copyright Dispute, Vetter v. Resnik, In Forbes
In her Forbes article, “Rock Song Copyright Dispute Rocks The Entertainment Industry,” Dale Nelson examines Vetter v. Resnik, a landmark music copyright dispute that could reshape how creators reclaim international rights to their works.
At the heart of the case is whether copyright termination under the US Copyright Act applies worldwide or only within the United States. In 1963, the copyright to Cyril Vetter and Don Smith’s ‘Double Shot (Of My Baby’s Love)’ was assigned to Windsong Music Publishers, Inc., and later transferred to Robert Resnik and Resnik Music Group. Following Smith’s passing in 1972, a well-established copyright rule allowed his share to revert to his heirs rather than remain with Windsong. Vetter later acquired Smith’s share through his company, and in 2019, Vetter sought to terminate the grant of rights owned by Resnick under a provision of the US Copyright Act which allows an author to reclaim the extended term of copyright which did not exist at the time of he grant. “Many songwriters assign their rights to a music publisher, but copyright law gives them a powerful tool: after a set number of years, they can ‘terminate’ an old deal and take their rights back, no matter what the original contract said,” Dale explains, noting that under longstanding interpretations of copyright law, this should have only allowed Vetter to reclaim domestic rights, not the copyrights in foreign territories that may have been included in the grant. However, the Fifth Circuit upheld a lower court’s ruling agreeing with Vetter’s argument that, because the grant originated under US law, the termination terminated both US and international rights included in the grant.
The ruling has divided copyright holders and publishers across the music, film, literature, photography, and visual art industries. “All of the grants of foreign rights that were understood to be intact after a termination of U.S. rights are now in jeopardy,” Dale warns, highlighting the gravity of this decision at a time when termination litigation is already surging.
Universal, Sony, Warner, and BMG have purchased Resnick’s interest in the disputed rights to seek the Supreme Court’s review of the case. “These companies hold most of the world’s most valuable song catalogs, and a worldwide termination right directly threatens how they value and license them,” Dale emphasizes. The case’s implications extend beyond the music industry, with Paramount Pictures, the Motion Picture Association, and other major players backing Resnik. On the other hand, many feel broader termination rights could help protect artists from unfavorable contracts. Dale writes, “[Advocates] argued in briefs before the Fifth Circuit that termination rights were created to protect songwriters who signed bad deals before their work had proven value…” While it has yet to be decided whether the Supreme Court will hear the case, the outcome will have far-reaching implications for creators, publishers, and copyright holders worldwide.