<b>Decision of Note: </b>Artist Can End Royalty-Collection Arrangement

The Court of Appeals of Tennessee held that singer Bonnie Bramlett could terminate her relation with a royalty-collection firm, which would then be obligated to tell the royalty-paying companies to submit the artist royalties directly to Bramlett. Sheridan Music Group Inc. (SMG) v. Bramlett, M2005-01307-COA-R3-CV.

Bonnie Bramlett became half-owner of the Del-Bon song catalog as part of her divorce from her first husband, Delaney Bramlett. She then formed SMG with her second husband, Danny Sheridan, to collect and administer songwriter royalties. She also signed Letters of Authorization instructing that firms that owed her songwriting royalties pay the monies to SMG. There was no written contract between her and SMG.

The letters stated: 'You are hereby authorized, and directed to account to and pay to [SMG], instead and in lieu of ourselves as individuals, any and all royalties and other monies due to us ' You may consider these instructions irrevocable unless specifically changed in writing by an officer of [SMG] and certified by an original impression of [SMG]'s Corporate Seal.'

After Bonnie Bramlett divorced Danny Sheridan, she notified companies that had received her letters that she was terminating the authorizations and to pay her directly. After SMG sued her, the Chancery Court for Davidson County ruled: 'Bramlett does not have the authority to revoke the Assignment Letters ', but may terminate her agreement with SMG concerning the assignment of royalties, and may direct SMG to notify royalty payors of the termination of her assignment.'

Affirming, the court of appeals explained: 'SMG attempted to hang its hat on the provision that notice of termination to the companies paying the royalties, like BMI and Embassy Music, had to be from SMG and in a particular form. That argument fails to recognize Bramlett's right to notify SMG that she was terminating the agreement. The provision in the Letters of Authorization that SMG relies on does not prevent Bramlett from terminating the assignment; instead, it memorializes SMG's affirmative responsibility if and when Bramlett notifies SMG that the assignment is terminated.'

'What is significant,' the court of appeal added, 'is that the Letters of Authorization contained no provision relative to a term of the assignment or a procedure by which the authorization stated in the Letters of Authorization could be withdrawn or terminated. It was merely an assignment of an indefinite term.'

The Court of Appeals of Tennessee held that singer Bonnie Bramlett could terminate her relation with a royalty-collection firm, which would then be obligated to tell the royalty-paying companies to submit the artist royalties directly to Bramlett. Sheridan Music Group Inc. (SMG) v. Bramlett, M2005-01307-COA-R3-CV.

Bonnie Bramlett became half-owner of the Del-Bon song catalog as part of her divorce from her first husband, Delaney Bramlett. She then formed SMG with her second husband, Danny Sheridan, to collect and administer songwriter royalties. She also signed Letters of Authorization instructing that firms that owed her songwriting royalties pay the monies to SMG. There was no written contract between her and SMG.

The letters stated: 'You are hereby authorized, and directed to account to and pay to [SMG], instead and in lieu of ourselves as individuals, any and all royalties and other monies due to us ' You may consider these instructions irrevocable unless specifically changed in writing by an officer of [SMG] and certified by an original impression of [SMG]'s Corporate Seal.'

After Bonnie Bramlett divorced Danny Sheridan, she notified companies that had received her letters that she was terminating the authorizations and to pay her directly. After SMG sued her, the Chancery Court for Davidson County ruled: 'Bramlett does not have the authority to revoke the Assignment Letters ', but may terminate her agreement with SMG concerning the assignment of royalties, and may direct SMG to notify royalty payors of the termination of her assignment.'

Affirming, the court of appeals explained: 'SMG attempted to hang its hat on the provision that notice of termination to the companies paying the royalties, like BMI and Embassy Music, had to be from SMG and in a particular form. That argument fails to recognize Bramlett's right to notify SMG that she was terminating the agreement. The provision in the Letters of Authorization that SMG relies on does not prevent Bramlett from terminating the assignment; instead, it memorializes SMG's affirmative responsibility if and when Bramlett notifies SMG that the assignment is terminated.'

'What is significant,' the court of appeal added, 'is that the Letters of Authorization contained no provision relative to a term of the assignment or a procedure by which the authorization stated in the Letters of Authorization could be withdrawn or terminated. It was merely an assignment of an indefinite term.'