Statutory Terminations

The U.S. Copyright Act (the “Copyright Act” or “Act”) allows, under certain circumstances, authors or their heirs to terminate an author’s grant of a transfer or license of one or more of the author’s exclusive rights under the Act to a third party. This right to terminate a copyright transfer is often referred to as the “Termination Right” or the “Statutory Termination Right.” The provisions in the Copyright Act that pertain to the Statutory Termination Right are set forth in Sections 203, 304(c), and 304(d) of the Act. In the context of the music publishing industry, contracts between songwriters and music publishers often include the transfer of the copyright in a musical work (via a grant or license) that may be subject to the Statutory Termination Right.

There are several factors and exceptions that must be considered in determining whether the transfer of the copyright in a musical work (aka a song) is subject to the Statutory Termination Right, and a specific time-sensitive procedure must be followed to terminate such a transfer. For a comprehensive explanation of the Statutory Termination Right and the process by which an author or heir may terminate a transfer of copyright, please visit the U.S. Copyright Office website page on Notices of Termination, available here. The Copyright Office has provided helpful information on a number of important topics related to the Statutory Termination Right, including:

• Eligibility to terminate
• Who may terminate
• When to terminate
• How to Record a Notice of Termination with the Copyright Office

The Copyright Office has also established specific rules that guide how The MLC should handle termination claims from rightsholders. These rules outline how The MLC reviews termination notices and manages royalties for musical works or shares o musical works affected by these claims and related disputes. The MLC has incorporated these rules into a Statutory Terminations Policy.

This is the DescriThe Copyright Office has also established specific rules that guide how The MLC should handle termination claims from rightsholders. These rules outline how The MLC reviews termination notices and manages royalties for songs or song shares affected by these claims or disputes.  The MLC has incorporated these rules into a Statutory Terminations Policy.

Please note that the specific rules apply mainly to the compulsory blanket mechanical license (“blanket license”) established under the Music Modernization Act (“MMA”) and administered by The MLC. The application of the law related to the Statutory Termination Right may differ in situations outside of the blanket license context. ption

You must give The MLC notice of your statutory termination claim by completing and submitting a Termination Notice Form. A copy of the Termination Notice Form is available here. Before you complete and submit the Termination Notice Form, you should review the Termination Notice Form Guidelines, available here, and gather all necessary information and documentation.

As defined in section 5.1 of The MLC Statutory Termination Policy, substantiating Documentation for a Termination Claim must include:

• (i) A true, correct, complete, and legible copy of the signed and as-served Statutory Termination Notice
• (ii) A true, correct, complete, and legible copy of the statement of service submitted to the Copyright Office for recordation pursuant to 37 C.F.R. § 201.10, if one was submitted
• (iii) Proof, as to each Work/Share at issue, that the Statutory Termination Notice was either (1) recorded in the Copyright Office before the EDT or (2) was submitted to the Copyright Office for recordation before the EDT, provided that proof that the Statutory Termination Notice as to such Work/Share was recorded in the Copyright Office before the EDT is delivered to The MLC at a later date
• (iv) If the Terminating Claimant is not the person(s) who executed the Statutory Termination Notice, a copy of the agreement or other documentation demonstrating that the Terminating Claimant has the Ownership of the Work/Share(s) that are the subject of the Statutory Termination Notice
• (v) Any additional documents or information that The MLC may, in its reasonable discretion, require to enable it to implement and give effect to the Termination Claim with respect to a particular Work/Share.