Attorney's Fees Granted To Class Counsel In 'Happy Birthday' Action

Good Morning To You Prods. v. Warner/Chappell, No. 13-4460 (C.D. Cal. Aug. 16, 2016) [Doc. 360].

In the "Happy Birthday" class action case, the Court awarded class counsel attorney's fees of over $4.6 million under the Copyright Act.  Plaintiffs requested that the Court apply the percentage method, which courts often use to calculate fees in common-fund cases.  Applying the percentage method, courts typically calculate 25% of the fund as the "benchmark" for a reasonable fee award, providing adequate explanation in the record of any "special circumstances" justifying a departure..  Then, Courts use a rough calculation of the lodestar as a cross-check to assess the reasonableness of the percentage award.  Plaintiffs requested an upward departure from the 25% benchmark.  In considering this request, the Court considered all relevant circumstances, including: (1) the results obtained for the class, (2) effort expended by counsel, (3) counsel’s experience, (4) counsel’s skill, (5) the complexity of the issues, (6) the risks of non-payment assumed by counsel, and (7) the comparison of the benchmark with counsel’s lodestar.

"Happy Birthday" Is In The Public Domain, Declares Court

Good Morning To You v. Warner/Chappell Music, 13-cv-4460 (C.D. Cal. filed June 30, 2016).

In the "Happy Birthday" case, the Court entered a final order and judgment declaring that the song is in the public domain and otherwise approving the parties' class-action settlement. Per the parties' agreement, class counsel was awarded fees, and the named plaintiffs also received incentive fees.

Happy Birthday Case Settles Shortly After Plaintiffs Granted Leave To Expand Class Period Back To 1949

Good Morning To You Productions v. Warner/Chappel, No. 13-4460 (C.D. Cal. Dec. 7 & 8, 2015).

In the "Happy Birthday To You" case, the Court granted Plaintiffs' motion to amend the complaint to expand the proposed class period back to 1949.  Shortly thereafter, an announcement was made that a settlement had been reached.

Happy Birthday Lyrics Not Owned By Warner

Marya v Warner/Chappell, No. 13-cv-4460 (C.D. Cal. filed 9/22/14) [Doc. 244].

After collecting royalties for years, a Court found that Warner/Chappell lacked copyright ownership in the lyrics to the world's most famous song, "Happy Birthday."  The Court found that because the current publisher's alleged predecessor "never acquired the rights to the Happy Birthday lyrics, Defendants, as Summy Co.’s purported successors-in-interest, do not own a valid copyright in the Happy Birthday lyrics."

The melody of the song is the same as one called "Good Morning," which was published in a songbook and subject to copyright protection under the 1909 Act until 1949.  Both parties agree the melody entered the public domain years ago.  The origins of the "Happy Birthday" lyrics is less clear, as those lyrics did not appear in the same songbook as "Good Morning."  Subsequent publications of the lyrics noted that the tuen for "Happy Birthday" was the same as "Good Morning," but did not credit an author of the lyrics.  The decision then explains the alleged chain of title to the lyrics of "Happy Birthday."

Plaintiffs, bringing a declaratory judgment action, alleged that Defendants do not own the copyright in the lyrics to Happy Birthday, and thus should not have been collecting royalties for licensing the song (and should be compelled to return collected royalties).  The Court was facing cross-motions for summary judgment.

First, the Court found that a 1935 registration was not subject to a presumption of validity.  There was a facial and material defect in the registration, nameley that it did not state that the lyrics were being copyrighted.  Thus, there was no presumption that the lyrics were registered.

Next, the Court examined: who wrote the lyrics to Happy Birthday?  The Court found there was conflicting evidence, and therefore a material question of fact for trial.

Then, the Court examined whether, whoever wrote the lyrics, any copyright in the work was divested by publication before the 1935 registration?  Under the 1909 Act, general publication without notice of copyright divested the author of common law and federal copyright protection.  Again, the Court found a question of material fact whether the alleged authors granted their publisher the right to generally publish the song.

Next, the Court examined whether the alleged author abandoned her interest.  Although the plaintiffs had found an article where the alleged author said that she had resigned herserlf to the fact that the song was the publics, the Court found questions of fact on this issue again a ground to deny summary judgment.

Then, the Court examined the alleged transfers in interest of the song lyrics, and three old agreements between the alleged authors and their publisher.  The court found that Defendants had no evidence a transfer occurred, whether by oral statement, by writing, or by conduct. "Defendants ask us to find that the Hill sisters eventually gave Summy Co. the rights in the lyrics to exploit and protect, but this assertion has no support in the record. The Hill sisters gave Summy Co. the rights to the melody, and the rights to piano arrangements based on the melody, but never any rights to th e lyrics. Defendants’ speculation that the pleadings in the Hill-Summy lawsuit somehow show that the Second Agreement involved a transfer of rights in the lyrics is implau sible and unreasonable. Defendants’ suggestion that the Third Agreement effected such a transfer is circular and fares no better. As far as the record is concerned, even if the Hill sisters still held common law rights by the time of the Second or Third Agreement, they di d not give those rights to Summy Co."

Transmittal Of Publisher's Lawyer's Analysis To ASCAP Did Not Waive Attorney-Client Privlege

Good Morning You Prod. v. Warner/Chappell Music, No. 2:13-cv-04460 (C.D. Cal. filed 07/25/14) (Doc. 132).

The Court concluded that the 1979 transmittal by a music publisher to ASCAP, of letters prepared by the publisher's attorneys, did not waive the attorney-client privilege applicable to those materials.  The letters "speak directly to the validity of the copyrights" in the song Happy Birthday To You.  "The [transmittal] letter is silent as to the specific reason why [the publisher] provided materials from its outside lawyer to the association’s lawyer regarding the validity. However, the only sensible conclusion that the Court can draw – that is, based on the evidence presented, it is more likely than not – is that ASCAP needed or requested this information to properly represent [the publisher] in exploiting its song rights. ASCAP would only have been able to sue an infringer if it could demonstrate that its principal [the publisher] owned a valid copyright"

Some Claims Time-Barred In "Happy Birthday" Suit

Good Morning To You Productions et al. v. Warner-Chappell Music, No. 2:13-cv-04460 (C.D. Cal. filed 10/16/13) [Doc. 71].

Plaintiffs seek a declaration, pursuant to the Declaratory Judgment Act, 28 U.S.C. § 2201, that Defendants do not own the copyright to or possess the exclusive right to demand licensing fees for the use of Happy Birthday to You (the “Song”), and that the Song is in the public domain. In Claim Two, they seek relief based upon the entry of declaratory judgment,pursuant to 28 U.S.C. § 2202, including an injunction, restitution, and an accounting of Defendants’ monetary benefits obtained from Plaintiffs in connection with their claim of ownership of the Song.

Defendants moved to dismiss, and the Court granted the motion to the extent of dismissing those claims that fall outside the Copyright Act's 3-year statute of limitations (with leave to amend).  "Because Plaintiffs’ declaratory judgment and relief claims are 'civil action[s] maintained under the provisions' of the Copyright Act, they are subject to § 507(b)’s three-year statute of limitations."

Happy Birthday Class Action

Good Morning To You Productions Corp. v. Warner/Chappell Music, Inc., No. 1:13-cv-4040 (S.D.N.Y. filed June 13, 2013).

Plaintiff brings a class action on behalf of licensees of the song "Happy Birthday to You" (from June 13, 2009-present), seeking a declaratory judgment that defendant does not have the right to collect licensing fees for use of the song, "Happy Birthday To You."  Plaintiff claims that the song is in the public domain and dedicated to public use.