Panic! The American music industry is threatened by a soon-effective provision in the U.S. copyright law that gives back the rights of golden oldies to their original creators. 

While in the Netherlands plans for an amendment to the Copyright Act to introduce a five-year termination right for artists’ license agreements died prematurely, a similar amendment appears to have been adopted in the U.S. already in 1976. On January 1st, 1978 a provision entered into force that gives creators the ability to reclaim their rights after 35 years. Artist have to apply for termination with a notification at least two years in advance.

Now that 33 years have passed since 1978, the record companies see themselves confronted with the first notifications. Examples of songs that qualify for the termination right are for instance “52nd Street" by Billy Joel and "Darkness on the Edge of Town" by Bruce Springsteen, both from 1978. Both songs still gross thousands of dollars in royalties. 

It is not clear whether artists are already making use of this right, but the four largest U.S. record companies have already expressed that they will not give up their acquired music rights without a fight. Steven Marks, general counsel for the Record Industry Association of America, is convinced that the ‘termination right’ does not apply to most recordings. The master recordings, says Marks, belong to the record companies perpetuity because they are "works for hire".  Several U.S. experts find this argument irrelevant. It should be evident that there is no question of an employer relationship.  

Meanwhile record companies remain silent. This would be party due differences between the major labels on how to address this issue. Some of the major labels would prefer a tough fight in court, while other major labels fear that if they lose this procedure artists will be unwilling to negotiate new, favorable record deals. 

Source: NYTimes