On September 28, 2018, the District Court for the District of Connecticut issued a significant ruling on the rights of authors to terminate grants of copyright. It ruled that Victor Miller, the original and sole writer of the highly successful horror movie Friday the 13th, had validly terminated his grant of rights in the screenplay, thus recapturing the copyright in the screenplay to his sole ownership.[ref]Horror, Inc. v. Miller 2018 WL 4697284, District of Connecticut 2018[/ref]
At work is a little known provision of the Copyright Act that allows authors to take back the copyright they have sold or bargained away, upon the fulfillment of various requirements. The first and foremost requirement is that the author must wait 35 years from the date of the grant for the termination to take effect.[ref]17 USC 203 (a) (3)[/ref] Since this clause applies to works created after January 1, 1978, the earliest a work could have been terminated would have been in 2013, and thus results in the handful of cases that have been decided.
The idea behind this provision is that frequently the author bargains away the copyright at a time when no one knows of the potential commercial success or failure work. This usually results in a very small fee being paid to the author. Indeed, with Friday the 13th, this sum was a mere $9,282.[ref]Horror, Inc. v. Miller at 6. All page references are to the original pagination of the opinion.[/ref]
In turn, the 35 year waiting period insures that the recipient of the grant of rights has the exclusive rights to the project during the period of its greatest commercial viability. So, only in the most successful of projects will the writer choose the option of termination.
And what a successful project it was.
Based on an estimated budget of only $550,000, Friday the 13th ended with a worldwide gross of nearly $60 million.[ref]IMDb: Friday the 13th[/ref] It is also notable as being one of the earliest screen appearances of Kevin Bacon.[ref]IMDb: Kevin Bacon[/ref] (He gets an arrow in the throat.[ref]Friday the 13th (1980 film)[/ref]) The film spawned 12 sequels, a television show, comic books and video games,[ref]Friday the 13th (franchise)[/ref] featuring the indestructible hockey masked killer, Jason Voorhees.
The only exception to the termination provision is if the author has created "work made for hire." If so, the grant cannot be terminated.[ref]17 USB 203 (a)[/ref] This requires either:
- The author created the work as an employee which is within the scope of employment
- In the case of a motion picture where the author is an independent contractor, a signed agreement in which the author agrees that the resulting work is a "work for hire"[ref]17 USC 101 "work made for hire"[/ref]
- The WGA agreement in effect at the time did not confer "work for hire" status on the completed screenplay, unlike the current WGA agreements.
- The contract did not incorporate by reference the CBA terms, it merely said Miller would receive no less favorable terms than in the CBA.
- The Supreme Court has ruled that questions regarding employment status in "work for hire" questions is governed by the laws of agency, not labor laws.[ref]Horror, Inc. v. Miller at 19-21[/ref]
- The hiring party's right to control the manner and means by which the product is accomplished
- The skill required
- The source of the instrumentalities and tools
- The location of the work
- The duration of the relationship between the parties
- Whether the hiring party has the right to assign additional projects to the hired party
- The extent of the hired party's discretion over when and how long to work
- The method of payment
- The hired party's role in hiring and paying assistants
- Whether the work is part of the regular business of the hiring party
- Whether the hiring party is in business
- The provision of employee benefits
- The tax treatment of the hired party[ref]Id. at 751-752[/ref]
- Miller was a professional writer and a member of the Writer's Guild
- Miller provided his own typewriter and ribbon (this is 1979 folks)
- Miller worked from his home
- Producers had no right to assign additional projects to Miller
- Miller worked his own hours, mainly in the morning and would meet for script conferences on an ad hoc basis
- Miller was paid in two lump sum payments
- Miller received no employee benefits
- No income tax or social security payments were deducted from his payments