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Work for hire does not revert on breach of contract – Warren v. Fox Family Worldwide, Inc., 171 F.Supp.2d 1057 (CDCA Oct. 15, 2001)

Warren, who composed music for television producer under an agreement that included unambiguous work made for hire provisions, sued for copyright infringement when the producer failed to pay royalties in accordance with the contract provisions. Relying on the copyright registration and clear language of the work made for hire provisions in the contract, the court found that Warren was not the legal or beneficial owner of the copyright and that he had no standing to sue for copyright infringement. The parties’ contract specifically provided that money damages would remedy any breach, and that rescission was not an available remedy: "Contractor’s relief shall be the recovery of money damages and the rights granted by Artist and Contractor hereunder shall not terminate by reason of such breach." 

Thus, an unambiguous work-for-hire agreement vests copyright in the commissioning party, and a subsequent breach of the agreement will not necessarily result in re-vesting or reversion of the copyright back to the commissioned party.  A contract damages claim may be the commissioned party’s only remedy, particularly when there is a clear remedies provision limiting claims to money damages.

Caution:

This abstract summarizes the cited case only.  The legal effect of a particular case can change for various reasons including the outcome of an appeal, a later court decision, or new legislation.  This abstract is provided as an illustration of a specific outcome under the specific conditions and laws in effect at the time of the decision.  You should not rely on this abstract or this case as representing current law without conducting further research.  To request further information about this case or a related issue, contact us at 301.332.4850 or click here to send us an email.

 

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