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<B><I>Decision of Note</b></i>Federal Court Can't rule on Joint Property

By Stan Soocher
August 01, 2003

The U.S. District Court for the District of Puerto Rico decided that rulings by Puerto Rican courts that a late composer's songs weren't joint property with his widow prevented a federal court from deciding the issue. Hernandez v. Peer International Corp., 01-1215.

Both superior and circuit courts in Puerto Rico had ruled against the widow of Guillermo Venegas Lloveras in her suit against the composer's children. The children later filed a federal suit against the widow and song licensing companies alleging copyright infringement. The defendants argued that federal copyright law preempted the state court rulings on ownership.

Granting partial summary judgment for the plaintiffs, the district court noted, “As explained by the Puerto Rico state court, the Federal Copyright Act establishes that a copyright 'may be transferred in whole or in part by any means of conveyance or by operation of law, and may be bequeathed by will or pass as personal property by the applicable laws of intestate succession.' 17 U.S.C. Sec. 201(d)(1). State courts have exclusive jurisdiction to probate wills disposing of copyright.”

But the district court agreed with the defendants that the Puerto Rican court rulings didn't bar federal court consideration of ownership of the late composer's copyright renewal rights. The composer's children argued that the renewal rights issue would disturb the decedent's estate. But the district court emphasized, “The parties unwittingly stumbled upon an unresolved wrinkle in copyright law for which we can find no factually similar precedent. Given the complexity of the issues, and the fact that the issues of copyright renewal arose in Defendants' ancillary arguments against res judicata, we simply decide here that the state court did not resolve the issue of copyright renewals and that this issue is not precluded by res judicata.”

The U.S. District Court for the District of Puerto Rico decided that rulings by Puerto Rican courts that a late composer's songs weren't joint property with his widow prevented a federal court from deciding the issue. Hernandez v. Peer International Corp., 01-1215.

Both superior and circuit courts in Puerto Rico had ruled against the widow of Guillermo Venegas Lloveras in her suit against the composer's children. The children later filed a federal suit against the widow and song licensing companies alleging copyright infringement. The defendants argued that federal copyright law preempted the state court rulings on ownership.

Granting partial summary judgment for the plaintiffs, the district court noted, “As explained by the Puerto Rico state court, the Federal Copyright Act establishes that a copyright 'may be transferred in whole or in part by any means of conveyance or by operation of law, and may be bequeathed by will or pass as personal property by the applicable laws of intestate succession.' 17 U.S.C. Sec. 201(d)(1). State courts have exclusive jurisdiction to probate wills disposing of copyright.”

But the district court agreed with the defendants that the Puerto Rican court rulings didn't bar federal court consideration of ownership of the late composer's copyright renewal rights. The composer's children argued that the renewal rights issue would disturb the decedent's estate. But the district court emphasized, “The parties unwittingly stumbled upon an unresolved wrinkle in copyright law for which we can find no factually similar precedent. Given the complexity of the issues, and the fact that the issues of copyright renewal arose in Defendants' ancillary arguments against res judicata, we simply decide here that the state court did not resolve the issue of copyright renewals and that this issue is not precluded by res judicata.”

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