Korman v. Heftel Broadcasting
1999 U.S. App. LEXIS 18257, 51 U.S.P.Q. 2d (BNA) 1672, 182 F.3d 1291 (1999)
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Rule of Law:
17 U.S.C. § 203, which provides an author an unwaivable right to terminate a copyright license 35 years after it was granted, does not establish a minimum 35-year duration for licenses of indefinite term. Such licenses may be terminated earlier if permitted by applicable state contract law.
Facts:
- During the 1970s, Mimi Korman wrote and produced jingles for radio station WQBA without a written agreement.
- In 1978, Korman wrote the lyrics for a jingle titled "Yo Llevo a Cuba La Voz," for which WQBA paid her a one-time fee.
- WQBA used the jingle as a station identifier with Korman's permission.
- In 1979, Korman terminated her business relationship with WQBA.
- In 1993, Korman discovered that WQBA, now owned by HBC Florida, Inc., was still using the jingle.
- Korman demanded that the station cease using the jingle or negotiate a new agreement, but the station did not respond.
- After the station failed to respond, Korman obtained a certificate of copyright registration for the jingle.
- In 1995, Korman sent another letter demanding the station stop using the jingle, but WQBA continued to play it.
Procedural Posture:
- Mimi Korman sued HBC Florida, Inc., in the U.S. District Court for the Southern District of Florida, alleging copyright infringement.
- HBC Florida, Inc., moved for summary judgment.
- The district court granted HBC's motion for summary judgment, holding that Korman had granted a nonexclusive license that, under 17 U.S.C. § 203, could not be terminated for 35 years.
- Korman, as plaintiff-appellant, appealed the grant of summary judgment to the U.S. Court of Appeals for the Eleventh Circuit.
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Issue:
Does 17 U.S.C. § 203, which grants an author the right to terminate a copyright license after 35 years, prevent the author from terminating a license of indefinite duration at an earlier time if state contract law would otherwise permit such termination?
Opinions:
Majority - Carnes, J.
No, 17 U.S.C. § 203 does not prevent an author from terminating a license of indefinite duration before 35 years have passed if state law permits it. While the court agrees that Korman granted WQBA an implied nonexclusive license and that § 203 applies to such licenses, it holds that § 203 does not impose a mandatory 35-year minimum term. The court rejects the Ninth Circuit's reasoning in Rano v. Sipa Press, which read the word 'only' into the statute's text. Instead, the court adopts the Seventh Circuit's view from Walthal v. Rusk, finding that the plain language of § 203 states termination may be effected after 35 years, not that it may only be effected then. The legislative history demonstrates that § 203's purpose is to protect authors from unremunerative transfers, not to lock them into lengthy agreements against their will. State law principles governing contracts of indefinite duration are implicitly read into agreements, thus 'provid[ing] otherwise' under § 203(b)(6) and allowing for termination consistent with those principles.
Analysis:
This decision creates a circuit split, aligning the Eleventh Circuit with the Seventh against the Ninth Circuit on the interpretation of 17 U.S.C. § 203. It clarifies that § 203 serves as a protective floor for authors—guaranteeing a right of termination after 35 years—rather than a preemptive rule that displaces state contract law allowing for earlier termination of indefinite agreements. The ruling strengthens the position of creators by preventing licensees from construing informal oral permissions as unbreakable 35-year licenses. This precedent ensures that state contract doctrines, which often permit termination at will or upon reasonable notice for agreements of indefinite duration, remain a viable option for authors seeking to reclaim control of their work before the 35-year federal window opens.
