Clause & Effect: <b>Reclamation Clauses In Songwriting Agreements

A key provision of the Cryner/ Famous Music contract stated:

9. Anytime after three (3) years after expiration of the Term, upon fifteen (15) days written notice from Writer, accompanied by payment to Publisher of one hundred percent (100%) of any sums still unrecouped hereunder, if any, Publisher shall re-assign to Writer all Compositions that have not been commercially exploited prior to receipt of such notice by Publisher. Commercial exploitation, for the foregoing purposes, shall be satisfied for any Composition that has been:

(i) released for sale to the public on phonograph records, tapes, compact discs or any other “phonorecord” or “sound recording” (as such terms are defined under U.S. Copyright Law) on a “major label,” which shall be defined as any record label which either: (A) is distributed by or through one of the major distribution groups now constituted by MCA, CEMA, WEA, Polygram, Sony and BMG, or any subsequently established distribution group of relatively equal stature to the foregoing; or (B) has had a single or album listed in the top ten (10) chart positions on any chart published by Billboard Magazine during the two (2) periods prior to release of the recorded product embodying the Composition;

(ii) synchronized in the soundtrack of either: (A) a theatrical motion picture exhibited to the public; (B) a television program broadcast to the public; or (C) a home video program (as the state of such devices is now known or hereafter devised and developed) offered for sale to the public.

Three years after the Cryner/Famous Music songwriting contract ended, Cryner signed an agreement with Child Bride Music for her composition “Real Live Woman,” a song Famous Music hadn't commercially exploited. Cryner also notified Famous Music that she was reclaiming the rights to all her compositions that Famous Music hadn't exploited. “Real Live Woman” later became a hit for Trisha Yearwood. Meanwhile, Jackson, claiming he wasn't bound by the reclamation clause in the Cryner/Famous Music contract, refused to reassign his share of the song copyrights to Cryner. Child Bride Music and Cryner then sued Jackson seeking a declaratory judgment. The Chancery Court for Davidson County, Tennessee, ruled that Jackson was bound by the Cryner/Famous Music reclamation clause.

Affirming, the Court of Appeals of Tennessee at Nashville noted that both California and Tennessee follow the common law rule that an assignee (ie, Jackson) is in the same position as that of an assignor (ie, Famous Music). In the case at hand, the court of appeals noted, “The reclamation rights of Cryner under paragraph nine of the Cryner-Famous Music contract are unconditional and are written in unambiguous terms. Jackson was thoroughly familiar with the Cryner contract and, indeed, was responsible for the reclamation language that appears in paragraph nine. Jackson is not a party to the Cryner contract and has no rights thereunder and no obligations thereunder, except the rights and obligations of an assignee 'standing in the shoes of' his assignor. The rights of Jackson emanate from the Famous Music-Jackson contract alone as assignee of Famous Music Corporation. His rights can rise to no greater dignity than the rights of his assignor, Famous Music Corporation. As Famous Music Corporation is bound by paragraph nine of the Cryner agreement, so Jackson, as assignee of Famous Music, can acquire from his assignor no greater rights than his assignor has acquired under the contract with Cryner.” Child Bride Music Inc. v. Jackson, M2002-02789-COA-R3-CV.