Scary court decision for employers creating copyrighted content

The creator of the original screenplay for the horror movie “Friday the 13th” could terminate his copyright grant and reclaim it, the U.S. Second Circuit Court of Appeals (which covers New York) recently decided. The outcome turned on the screenwriter’s employment status. If your business creates copyrighted material, read on to understand how the decision could affect you.

Facts

In 1979, screenwriter Victor Miller wrote the Friday the 13th screenplay for film production company Manny, Inc. Released in 1980, the flick proved to be a blockbuster and a horror film classic. In 2016, Miller gave notice to Manny and a successor production company, Horror, Inc., purporting to terminate the copyright under the authority vested in authors by Section 203 of the Copyright Act and “reclaim” his rights to the screenplay.

In 2018, Manny and Horror, Inc., sought a declaration from the U.S. District Court for the District of Connecticut that Miller was an employee when he created the screenplay, which was therefore “a work for hire” owned by the production company from the outset and not subject to the author’s reclamation rights.To support their position, they pointed to Miller’s membership in the Writers Guild of America, East, Inc. (WGA) and Manny’s participation in the collective bargaining agreement with the WGA.

On the other hand, Miller argued he was an independent contractor when he wrote the screenplay for Manny. Therefore, he could lawfully terminate the screenplay rights claimed by Manny and Horror and, as the true author, reclaim his rights.