(openPR) - [May 6, 2008, Tel Aviv] Metro Goldwyn Mayer Studios (MGM) acquired the movie repertoire of Cannon Films, previously owned by Menachem Golan and Yoram Globus, in an auction in May 1992. Skip a couple of decades and MGM began exploiting these movies in new media. Now, at least two composers are discovering that their copyrights in the music of MGM's films were simply ignored, and they claim that MGM infringed their rights and refuses to pay for the talent they use.

Israeli composer Arik Rudich is demanding compensation in the amount of $1.9 Million from MGM in a "cease and desist" demand letter sent by his attorney Moshe Zingel of Tel Aviv on April 30, 2008 to MGM regarding the motion picture "Snow White." Rudich composed nine songs and the underscore for this motion picture. Snow White was part of the fairy tales collection of Cannon Films, which was shot in Israel. Rudich claims that in order to exploit copyrighted music in new media, there must be a signed agreement or assignment that specifically permits the Hollywood producers to use the music "in any media now known or media which will become known or developed in the future". Rudich insists that not only such a provision was ever signed, but actually there was no written agreement with Cannon at all, and therefore when MGM digitally remastered the movie and released the DVD in 2005 without negotiating royalties with him in advance, MGM committed repetitious acts of infringement.

The American Copyright Act permits an award of up to $150,000 per each intentional infringement, and in this case all the songs and underscore were copied twice: once from the 35 mm to the Master Disc, and then from the Master Disc to consumer DVDs, which were offered for sale and for rental.

Allegedly, when MGM ordered the replication of the discs, and when it contracted with affiliates and distributors to promote the sales, MGM gave a warranty to these third parties that all content has passed copyrights clearance. Thus, potentially the manufacturers of the discs, and all those who may have distributed MGM's "Snow White" may be secondarily liable as well, if MGM has indeed breached its warranty.

Rudich's attorney, Moshe Zingel adds that Rudich's claims are corroborated by the results of arbitration between Rudich and Sony/ATV Music Publishing, as sub-distributor of MGM. The controversy in the arbitration was to determine who had the right to receive publishing royalties collected by copyright societies such as ASCAP and ACUM. Eventually, Sony/ATV admitted that no document was ever signed between Cannon and Rudich, and thus Sony/ATV and MGM relinquished all claims to receipt of publishing royalties as of October 2006. That however did not end the dispute, because MGM failed to disgorge all previously collected publishing royalties, and there was no separate agreement as to the rights to exploit the Snow White soundtrack and underscore in new media.

According to Zingel, prior to exploitation in new media, and DVD is certainly new media not foreseen in 1987 when the movie was made, producers must perform a copyrights clearance process. All contracts with right holders must be examined, and if no license to exploit in future media was originally granted, they must negotiate fresh royalty agreements with the contributing talents, cut scenes, or use unprotected music instead. "This case demonstrates that there are potential major deficiencies in MGM's copyright clearance process, and perhaps a conscientious decision to use talent without paying for it," says Zingel.

Already, one of Zingel's other clients had sued MGM in the Western District Court of Wisconsin on April 28, 2008 for $12 Million because of infringements of music compositions in connection with DVD and other digitized exploitation of the Motion Picture "The Apple", also originally produced by Golan-Globus/Cannon in 1979. That composer was forced to file a complaint after MGM indicated that there will be compensation unless a United States court orders it to do pay the artist.

Moshe zingel Law Office
9 Kikar Malchei Israel
Tel Aviv, Israel 64163
Tel. +972-3-524-3381
Agent: David Mannor PR
Tel. +972-544-212-635

Moshe Zingel Law Office in Tel Aviv specializes in Commercial Law, Banking Law, International Business, Intellectual Property and Mass Torts.