Second Circuit Nullifies Steinbeck Descendants' Bid to Terminate Penguin's Publication Rights

Holding:

Reversing a decision of the U.S. District Court for the Southern District of New York, the U.S. Court of Appeals for the Second Circuit ruled that a 1938 agreement in which famed author John Steinbeck gave the sole and exclusive rights to publish "Of Mice and Men" and several other works was terminated and superseded by a 1994 agreement between his widow, Elaine Steinbeck, and plaintiff-appellant Penguin Group (USA), Inc. ("Penguin"). According to the Second Circuit, the validity of the 1994 agreement rendered invalid a copyright termination notice issued by defendant-appellee Thomas Steinbeck, the author's surviving son, and Blake Smyle, the sole surviving child of John Steinbeck's other son, the deceased John Steinbeck IV (collectively "Steinbeck Descendants"). The District Court had earlier upheld the validity of the notice of termination given by defendants-appellees in 2004 that purported to terminate the 1938 grant of copyright licenses. On appeal, the Second Circuit reversed. Specifically, it reasoned that because the 1994 agreement terminated and superseded the 1938 agreement, it also eliminated the right to terminate the grants contained in the 1938 agreement under the 1976 Copyright Act, 17 U.S.C. Section 304(c). On the basis of the foregoing, the Second Circuit remanded the case back to the District Court for entry of judgment in favor of Penguin.

Detailed Summary:

Penguin brought this appeal from an order of the District Court granting summary judgment to the Steinbeck Descendants based on the conclusion that a “notice of termination” given in 2004 that purported to terminate, pursuant to the Copyright Act, 17 U.S.C. § 304(c) and (d), the 1938 grant of copyright licenses by the author John Steinbeck, was valid.  Opinion, pp. 2-3.  The issue in Penguin’s appeal was whether the agreement entered into in 1994 between Steinbeck’s widow and the publisher terminated and superseded the 1938 agreement, and, if so, whether the termination notice was ineffective. Id.

By way of background, John…

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