May 05, 2007
Why We License
Rap artist JT Money transferred copyrights in sound recordings to Luke Records in exchange for a recording contract that required Luke Records to pay JT Money royalties. Luke Records later became a chapter 11 debtor. Luke Records rejected the recording contract and transferred the copyrights to a buyer, Lil' Joe Records, Inc.
In Thompkins v. Lil' Joe Records, Inc., 2007 WL 316302 (11th Cir. 2007), the Court of Appeals for the 11th Circuit held the recording contract was properly rejected and JT Money was not, as a result of the rejection, entitled to a return of the copyrights. A rejection of a contract is not a rescission. JT Money's remedy was limited to a general unsecured claim for damages against the Luke Records bankruptcy estate.
Because he transferred his copyrights instead of licensing them, JT Money was out of the money.
In Thompkins v. Lil' Joe Records, Inc., 2007 WL 316302 (11th Cir. 2007), the Court of Appeals for the 11th Circuit held the recording contract was properly rejected and JT Money was not, as a result of the rejection, entitled to a return of the copyrights. A rejection of a contract is not a rescission. JT Money's remedy was limited to a general unsecured claim for damages against the Luke Records bankruptcy estate.
Because he transferred his copyrights instead of licensing them, JT Money was out of the money.
Labels: copyright, license, rejection
¶ 3:15 PM
