Folkways Music Publishers, Inc. v. Weiss

Citation989 F.2d 108
Decision Date26 March 1993
Docket NumberNo. 929,D,929
Parties1993 Copr.L.Dec. P 27,073, 26 U.S.P.Q.2d 1637 FOLKWAYS MUSIC PUBLISHERS, INC., Plaintiff-Appellant, v. George David WEISS, June Peretti, Luigi Creatore and Abilene Music Corp., Defendants-Appellees. ocket 92-9061.
CourtUnited States Courts of Appeals. United States Court of Appeals (2nd Circuit)

Robert C. Osterberg, New York City (Abeles Clark and Osterberg, of counsel), for plaintiff-appellant.

David Blasband, New York City (John M. Daly, Deutsch Klagsbrun & Blasband, of counsel), for defendants-appellees.

Before: OAKES and PIERCE, Circuit Judges. *

OAKES, Circuit Judge:

Plaintiff, Folkways Music Publishers, Inc. ("Folkways") appeals from an order of the Southern District of New York, John F.

                Keenan, Judge, confirming an arbitration award and granting summary judgment to defendants, George David Weiss, June Peretti, Luigi Creatore (the "Songwriters"), and Abilene Music Corporation.   The district court found that the arbitrators, who had granted renewal rights in the song "The Lion Sleeps Tonight" to the Songwriters, had not exceeded their authority or manifestly disregarded the law.   We affirm
                
BACKGROUND

This appeal involves a song entitled "The Lion Sleeps Tonight" (the "Lion version") written by the Songwriters which Folkways claims infringes its copyright in the songs "Mbube" and "Wimoweh." According to Folkways, the underlying music for the latter two songs was composed by Solomon Linda who assigned all rights, title, and interest in his song, called "Mbube," to Gallo Africa, Ltd. ("Gallo") in 1952. On May 7, 1952, Gallo registered a claim to copyright "Mbube" in the United States. After the expiration of the original term on December 31, 1980, the renewal rights in the song vested in Linda's widow. Allegedly, she thereafter assigned Folkways all of her rights in "Mbube."

In 1951, Pete Seeger and the Weavers, under the pseudonym Paul Campbell ("Campbell") wrote a new arrangement of "Mbube" entitled "Wimoweh." Campbell assigned all rights and copyright interests in "Wimoweh" to Folkways which subsequently registered a claim to copyright the song on January 17, 1952. On November 30, 1979, the original term of the copyright was renewed in Campbell's name and thereafter assigned to Folkways.

In 1961, the Songwriters wrote another version of "Wimoweh," the Lion version, which was published by Token Music Publishing Company ("Token"). Token registered a claim to copyright on October 17, 1961, and licensed the use of the Lion version for phonograph records and public performance. On October 31, 1961, Folkways alerted Token of its claim that the Lion version infringed its copyright in "Wimoweh."

In response, Token ceded its rights as publisher of the Lion version to Folkways and the Songwriters entered into the agreement which is the subject of this suit. The Songwriters allegedly executed five documents, including acknowledgements of the infringement and assignments of rights in the Lion version to Folkways. Two of these documents are central to the disposition of this case. On November 6, 1961, Folkways drafted a letter which was signed by the Songwriters, providing for a distribution of public performance royalties payable by Broadcast Music, Inc., Folkways' performing rights society, for uses of the Lion version. In addition, the parties entered into a "Standard Popular Songwriter Contract" ("the Agreement") also dated November 6, 1961. This contract transferred and assigned all rights in the Lion version to Folkways, including "the right to secure copyright therein throughout the entire world and to have and to hold the said copyright and all rights of whatsoever nature thereunder existing, subject to the terms of this agreement." On December 18, 1961, Folkways registered a claim to copyright in the Lion version. This original term expired on December 31, 1989.

Folkways alleges that in October 1989, Weiss on behalf of the Songwriters notified it that he believed Folkways' rights to be limited to the original term of the copyright. He stated that, subsequent to the expiration of the initial copyright term, the Songwriters would exercise their rights in the Lion version absent payment from Folkways for rights in the renewal term. Folkways refused and the Songwriters filed a demand for arbitration on September 13, 1990 pursuant to the 1961 Agreement.

In their demand, the Songwriters sought a declaration that they were "the sole and exclusive owners of all rights in and to the [Lion version], including worldwide copyright, since the composition entered its United States renewal term of copyright." They also sought to compel Folkways to notify its licensees that it no longer had any interest in the copyright in the Lion The arbitration panel ruled that rights to the Lion version had reverted to the Songwriters at the end of the initial copyright term and that the Songwriters "shall have the right to exploit the Composition free of any and all claims from Folkways...." The award, however, did not explicitly discuss whether the Songwriters' use of the Lion version would infringe on Folkways' copyrights in the underlying works. Nonetheless, the arbitrators did say quite plainly that Folkways would have no claims against the Songwriters' use of the Lion version.

                version.   Lastly, the Songwriters requested they be awarded all revenue Folkways had received since the beginning of the renewal term stemming from use of the Lion version.   Folkways then filed a copyright infringement action in the district court.   Folkways argued that the Songwriters' use of the Lion version since the beginning of the renewal term infringed on its rights not only in the Lion version but also in "Mbube," "Wimoweh," and one other version of the song owned by Folkways ("the underlying works").   Folkways also asked the district court to stay the arbitration or limit its scope to renewal rights in the Lion version.   The district court granted the Songwriters' demand for arbitration and denied Folkway's motion.  Folkways Music Publishers, Inc. v. Weiss, No. 90 Civ. 6415, 1991 WL 64183, 1991 U.S.Dist. LEXIS 5048 (S.D.N.Y. Apr. 17, 1991)
                

Folkways thereafter moved the district court to vacate, modify or correct the arbitration award. Although Folkways conceded that the award grants renewal rights to the Lion version to the Songwriters, it contended that the award does not grant these rights free from infringement claims concerning the underlying works. In the alternative, Folkways argued that, if the award is read to concede such rights, then the arbitrators exceeded their powers. The district court found that the clear language of the award granted the Songwriters the right to exploit the Lion version free from any claims by Folkways, including claims for infringement of the underlying works. Moreover, the court stated, the arbitrators had not exceeded their powers in determining rights to the underlying works in light of the court's initial refusal to limit the scope of arbitration to the renewal rights alone. The court then affirmed the award and granted summary judgment to the Songwriters. Folkways Music Publishers, Inc. v. Weiss, No. 90 Civ. 6415, 1992 WL 230192, 1992 U.S.Dist. LEXIS 13006 (S.D.N.Y. Aug. 31, 1992).

DISCUSSION

Folkways appeals from the affirmance on alternative grounds: first, it argues that the district court misinterpreted the award in finding that it resolved rights to the underlying music; second, it contends that if the district court was correct in its finding that the award determined the rights to the underlying music, then the arbitrators exceeded their powers; third, it claims that if the district court's interpretation was correct then the award is irrational and in manifest disregard of the law.

Initially, Folkways contends that the district court misunderstood the import of the arbitration award. The award stated that "[a]ll rights in and to the composition 'The Lion Sleeps Tonight' (the 'Composition') shall revert to [the Songwriters].... CLAIMANTS shall have the right to exploit the Composition free of any and all claims from Folkways...." The district court found that this language clearly barred any infringement claims by Folkways against the Songwriters based on rights to the underlying music. In opposition, Folkways argues that the district court misread the words "[c]omposition" and "revert," ignoring the "obvious" meaning they have in the award. According to Folkways, "composition" can only refer to the original material added by the songwriters to the Lion version and not to the aspects of the Lion version which stem from the underlying works. Moreover, they argue that material never owned by the Songwriters cannot "revert" to them. As the district court noted, however, the arbitrators determined that the Songwriters had the right to exploit the composition "free of 'any and all ' claims" from Folkways. Folkways Music Publishers Inc., 1992 WL 230192, at *5...

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