Whose Rights Are They Anyways?

What happens to rights when music initially recorded does not have good legal documentation?

In the 1960s, when Bob Marley and the Wailers recorded their music in Jamaica, legal documentation was not as meticulous. Universal Music Group (UMG), used the lack of documentation to prevent Rock River Communications (Rock River) from distributing remixes of the music by threatening to sue Rock River's distributors. In 2006, Rock River entered into a licensing agreement with San Juan Music Group (San Juan) to sample 16 musical recordings by Bob Marley and the Wailers (Marley). Rock River subsequently created remixes and registered copyrights for the remixes. UMG sent a cease-and-desist letter to Rock River to stop releasing the album because UMG claimed they owned exclusive licensing rights. UMG subsequently sent Rock River's business partners the letters requesting them to stop distribution of Rock River's remix.

Rock River brought suit against UMG for wrongfully disrupting Rock River's business. While UMG stated that they believed in good faith that they held exclusive licensing rights due to a previous contract in 2003 with JAD, Rock River discovered evidence that JAD's claim to ownership was tenuous and UMG was aware of the chain of title during the time they signed the 2003 contract and the time they sent the cease-and-desist letters. Additionally there was evidence to show that UMG entered into licensing agreements with San Juan to license tracks to JAD.

The court concluded that because UMG was aware of San Juan's history of open licensing of the recordings, and because UMG and JAD never sued San Juan for license infringement and never initiated a lawsuit, a reasonable jury could conclude that UMG was attempting to enforce its exclusive licensing rights claim through threat of litigation as opposed to actual litigation. So the court overturned UMG's motion for summary judgment.

Source here.