2 Live Crew Wins Jury Verdict, Regains Legal Control of Catalog in Copyright Case | Law Commentary (2024)

Members of the pioneering hip hop group 2 Live Crew have won a jury verdict allowing them to reclaim ownership of a substantial portion of their music catalog from Lil Joe Records, a label that held the rights for decades. The decision came after years of litigation centered around copyright law’s termination right — a legal provision that permits artists to regain control of their works after selling the rights to a company.

The case hinged on whether 2 Live Crew members, including Luther Campbell (Uncle Luke) and the heirs of Christopher Wong Won (Fresh Kid Ice) and Mark Ross (Brother Marquis), could invoke this right to reclaim five albums, including their controversial 1989 release "As Nasty as They Wanna Be". The album reached No. 29 on the Billboard 200 chart and was certified platinum.

A Florida federal jury sided with 2 Live Crew on Wednesday, affirming that the group's surviving members and the estates of its deceased members had lawfully invoked the termination right to regain control of their works. This right, established by U.S. copyright law, allows creators to reclaim their works after a set period—typically 35 years—even if they previously sold the rights.

This decision marks a pivotal moment not only for the group but also for other artists looking to regain ownership of their music decades after initial sales.

The copyright termination provision, established under Section 203 and Section 304 of the U.S. Copyright Act, is a legal mechanism that allows creators (or their heirs) to reclaim ownership of their copyrighted works after a certain period. This right is essential in protecting artists from long-term losses resulting from early contracts that may not reflect the true value of their works over time.

Section 203 allows creators to terminate the transfer of rights to a work after 35 years, provided that they follow specific procedural rules. Termination notices must be served at least two years but no more than ten years before the termination date. The right to terminate cannot be waived in advance, making it an "inalienable right." Even if an artist has sold the rights to a record company, they can still regain control after the designated time period has passed.

Section 304 deals with older works created before 1978 and extends the termination window to 56 years. It allows authors or their heirs to recover rights to works that had entered their renewal term.

This provision applies to grants of copyright ownership, which includes contracts where authors transfer or assign their rights to a publisher, label, or other entities. In the context of music, this has been particularly significant, allowing artists like 2 Live Crew in their lawsuit against Lil Joe Records to reclaim ownership of albums they created decades ago, such as "As Nasty As They Wanna Be."

However, termination rights do not apply to "works made for hire." In those cases, the employer or commissioner of the work retains full ownership of the copyright.

In the 2 Live Crew case, the jury ruled that the termination right allowed the group to reclaim their albums, despite Lil Joe Records arguing that the bankruptcy sale in the 1990s nullified their ability to do so. The jury ultimately upheld the band members' right to invoke termination and regain control over their works.

The copyright termination provision has become a crucial tool for artists seeking to reclaim ownership of their creative works, especially in a time when legacy catalogs have become immensely valuable. It empowers creators to regain control over their intellectual property, even decades after relinquishing it.

2 Live Crew’s attorney, Scott Alan Burroughs, expressed satisfaction with the outcome, stating, “The verdict was a total and overwhelming victory for our clients and artists everywhere.”

The legal battle began in November 2020, when Campbell and the other members notified Lil Joe Records of their intent to reclaim their music. Lil Joe, which had acquired 2 Live Crew's catalog after the group's previous label Luke Records Inc. went bankrupt in 1995, challenged the termination attempt in court.

Lil Joe Records argued that the termination right did not apply because the rights to the music were sold "free and clear" during bankruptcy proceedings. The label also claimed that the albums were "works for hire," meaning the copyrights never belonged to 2 Live Crew, and therefore there was nothing for the group to reclaim.

However, the jury rejected Lil Joe’s arguments, siding with 2 Live Crew's claims that the band had trusted label owner Joe Weinberger, only to have him allegedly exploit their financial troubles to obtain the rights to their music cheaply.

Lil Joe’s lead attorney, Richard Wolfe, vowed to appeal the verdict, calling it a "matter of first impression" involving complex questions about the interaction between termination rights and bankruptcy law. He suggested the case could eventually be heard by the U.S. Supreme Court.

The victory is the latest in a growing trend of artists successfully invoking termination rights to regain control of their music. Notable examples include Jay-Z, who won back rights to his debut album Reasonable Doubt, and Cher, who won a legal battle over control of Sonny Bono’s music despite a decades-old divorce settlement.

This case sets a major precedent, offering hope to artists seeking to reclaim their creative works from record labels or other companies that have held onto their catalogs for decades.

Lil Joe Records now has the option to appeal the ruling, a process that could take years, further prolonging the final outcome of this legal dispute. For now, 2 Live Crew has reclaimed ownership of their groundbreaking albums, marking a significant victory for the rights of recording artists.

2 Live Crew Wins Jury Verdict, Regains Legal Control of Catalog in Copyright Case | Law Commentary (2024)

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