Courtesy of Bobak Ha’Eri
A recent US appeals court decision may have far-reaching consequences for how music copyrights are owned and traded worldwide, after being met with a mixed response.
On January 12, the Fifth Circuit Court of Appeals ruled that songwriters who reclaim their works under US copyright law can recover global rights, not just those within the United States. The decision challenges a long-standing industry assumption and could alter how decades-old publishing agreements are interpreted.
The case centers on “Double Shot (Of My Baby’s Love),” a 1960s rock staple by songwriter Cyril Vetter. By exercising statutory termination rights, Vetter successfully unwound an early publishing deal and was awarded full worldwide ownership of the song, despite arguments from publisher Resnik Music Group that termination should only affect US exploitation.
Termination rights allow authors to reclaim works they assigned earlier in their careers, typically after 35 years for modern works or longer for older material. Historically, these rights were viewed as geographically limited. The Fifth Circuit rejected that view, with Judge Carl Stewart writing that restricting termination to domestic rights would undermine the purpose of the law and deny creators the full return of what they originally granted.
Creator advocacy groups hailed the ruling as a significant correction in the globalized music economy, arguing that partial termination leaves artists locked into outdated contracts. Music publishers and record industry groups, however, warned that the decision disrupts the contractual foundation underlying thousands of catalog agreements, which were built on the assumption that foreign rights were insulated.
That tension is already reflected in corporate risk disclosures. Major music companies regularly warn investors about termination risks, but those statements have focused narrowly on US rights. The court’s reasoning suggests that exposure may be broader, particularly for musical compositions that are not protected by work-for-hire provisions.
Whether the ruling becomes a wider precedent remains uncertain. But the message is clear: the long-held belief that termination stops at the US border may no longer hold, and in a global music market, that could have lasting implications.
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