March 18, 2003

Dicta in a Bankruptcy Proceeding

In dicta, in ITOFCA v. MegaTrans, Judge Richard Posner states that "a copyright licensee has no right to make further copies (except a single, backup copy for his own use)." If I was the attorneys in the DVD-Xcopy, maybe I would bother to cite a 7th Circuit case even though that case deals with determining rights to a copyright following a bankruptcy proceeding.

This isn't surprising coming from Posner, who warned against an "enormous expansion" of intellectual-property law back in November. [via c|net]

Other tidbits that I gleaned from this case: "A copyright is neither a building nor cash" and "The copyright statute is explicit that there must be a memorandum in writing for the sale of copyright to be enforceable", but that agreement need not use the word copyright.

The moral of the case is: if you are drafting a contract that says all assets except a building and some cash then that means the copyright is included (on these facts anyway).

See also Ripple's Concurrence.


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