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Shuster/Siegel estates win Superman court battle [Archive] - DVD Talk Forum
 
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View Full Version : Shuster/Siegel estates win Superman court battle


Chew
04-01-08, 02:02 PM
Thanks to a 1976 change in copyright law, the heirs of Superman co-creator Jerry Siegel have been able to reclaim a share of the iconic character.

The ruling by the United States District Court Central Court of California means that since 1999 the Siegel estate has been a co-owner of Superman with DC Comics, and is thereby entitled to a share of the licensing and publication revenues the comic book publisher has realized in the last eight years. The court declined, however, to apportion any profits or to rule on whether Siegel's heirs can share in revenues generated by Warner Bros. or other subsidiaries of Time Warner, which owns DC Comics. DC also continues to own Superman outright in all foreign jurisdictions where it has registered the character under local copyright law.

The court's decision stems from a notice filed by the Siegel estate in 1999, seeking to terminate the original grant of copyright to Detective Comics (DC's corporate predecessor) in 1938. Siegel and his creative partner, Joe Shuster, assigned the rights to the character to Detective when they sold a batch of Superman comics to the comic book publisher. For their work, they received $130.

Under the Copyright Act of 1909, then in force, the holder of a copyright could enforce its claim for twenty-eight years and then renew it for a further twenty-eight. The Act's authors structured copyrights this way with the intent that copyrights revert to their original creators at the end of their initial twenty-eight period regardless of whether those creators had in the meantime granted or sold their rights to another party. In this way, the original creators would be able to extract a better market price for their creation by gaining the right to sell the recaptured copyright after it had demonstrated its true market value during its inaugural period.

A later Supreme Court ruling, however, largely vitiated this structure by upholding the legality of contracts that forced creators to sign over rights to both the inaugural and renewal periods, and a 1974 decision expressly found that Siegel and Shuster had signed away the second renewal period when they had executed their original contract. They had been unsuccessful in an earlier lawsuit when they tried rescinding their contract with Detective Comics on the basis that they had not received fair value for the character.

In 1976, however, Congress extended the duration of copyright renewal periods by nineteen years. At the same time, it sought to mitigate the effects of the Supreme Court's Fred Fisher Music Co. decision by expressly giving creators who met a narrowly drawn set of criteria a chance to terminate their grant of copyright. It was under this legislation that Siegel's heirs filed a notice of termination with DC in 1999.

The judge in the case noted that the 1976 act set a high bar for creators attempting such a termination, but found that Siegel's estate had been mostly successful. Thanks to an error in the Siegels' notice of termination, however, he did rule that DC still has the untrammeled right to "exploit the image of a person with extraordinary strength who wears a black and white leotard and cape," though it would not be allowed to identify this character as "Superman."

The court's ruling does not effect profits or revenues accrued by Time Warner before 1999. Subsequent judicial decisions will settle the apportioning of post-1999 profits and whether the Siegels have a claim on money made off the character by other Time Warner units.

The estate of Joe Shuster has also filed a termination notice, which, if successful, would sever DC's domestic rights to Superman by returning the half of the copyright it currently retains to Shuster's estate.
http://news.toonzone.net/article.php?ID=22560

While I certainly agree the estates deserve a greatly increased share of the profits, I can't believe any court would ever take away Superman from DC.

ytrez
04-02-08, 10:07 AM
I should hope not. I'm not even sure the estates deserve more money. What the hell did they do to contribute to the success of Superman. If the Seigel & Schuster were still alive that's one thing, but why give their great grandchildren money?

DC has invested millions in protecting their interests in the character as well as promoting it world wide. What have the Schusters done?

I'm no lawyer, but they're using a 1976 law to affect something that happened in 1938. Seems peculiar to me. This ruling leaves the door open to the families and estates of a slew of golden age creators I would think. When does Stan get Spider-Man back?

And I like how they throw out that Seigel & Schuster got $130, trying to make it sound like they were completely screwed over. They were only royally screwed over :) Really though, nobody knew at the time that Superman would take off like it did and $130 was likely the prevailing rate. What no one is saying is that the guys continued to get paid for all of the work they did on the title in the years following the sale. DC didn't throw $130 at them and kick them to the curb. I believe they also got a pension. Probably a modest pension, but it was more than most comic creators get.

I hate defending a huge multi-billion $ corporation, and like I said, if we were talking about paying Joe & Jerry it would be another story. These guys made a poor business decision 70 years ago. I don't know if they ran around kicking themselves for it or crying in their spilled milk, but it doesn't seem that way. The both continued to work for the company for years afterwards, collecting their checks.

Adam Tyner
04-02-08, 10:46 AM
When does Stan get Spider-Man back?That's a different case; Stan created Spidey while under the employ of Marvel, so it is a work-for-hire.

I'm no lawyer, but they're using a 1976 law to affect something that happened in 1938. Seems peculiar to me. ...although that's the point of the 1976 law. The idea is that when the agreement was made, transferring a copyright meant the recipient would have it for 56 years (28 years initially plus an extension for 28 years). When Congress extended that another 19 years, it gave those who'd transferred a copyright the ability to terminate the transfer so they themselves could benefit from those 19 years. Otherwise, the company being transferred the copyright would be getting 19 additional years of the copyright for 'free'. (There's also the 1998 extension, which piled on another 20 years, but that's not really what's at issue here.)

They had a five year window to terminate the transfer, and they were negotiating with DC that entire time. Things didn't work out the way the estates wanted, so they went through with the termination. They couldn't have terminated any earlier than 1994 or any later than 1999. We're just hearing about this now because it's made its way through the courts.

This doesn't apply to Stan Lee because Spider-Man, the Fantastic Four, etc. were works for hire. Superman wasn't, although...well, just about everything that everyone associates with Superman is. If, for whatever reason, the U.S. rights completely reverted to the Shuster/Siegel estates, they wouldn't be able to do much with the character since the villains, the overwhelming majority of the supporting cast, most of the details of his origin, many of his powers/weaknesses/etc. are all owned by DC. Also, they own the character but wouldn't be able to use his name in the title, essentially wouldn't be able to promote it if they created another book... What it does, really, is force DC to shell out a big stack of money for their profits for Superman since 1999 and make it a pain in the ass for them to publish anything with the character. They're going to write an enormous check to get the Shuster/Siegel estates to go away, and that's really all those estates care about in the first place.

I think both sides have come off pretty badly at varying times over the years, personally.

stingermck
04-02-08, 10:56 AM
Yeah this is just a strong arm to get more money out of the deal. Time Warner will write that fat check to make them go away.

It sucks, but thats the deal S & S accepted back then. And weren't they rejected by all the newspapers as well?

Id just be happy that my family created Superman and would just want some nice free swag once in a while.

Though good luck if the estate tries a comic with a strong guy in a gray suit, who can jump high, and isn't called Superman. Its worked well for Capt Marvel ;)

slop101
04-02-08, 11:15 AM
And again, greed trumps all!

stingermck
04-03-08, 05:53 PM
The family will probably go after the winner of this auction next:

http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&rd=1&item=260224434760&ssPageName=STRK:MEWA:IT&ih=016

movieguru
04-03-08, 08:28 PM
Are the Seigel and Shuster widows still alive? I know Siegel's son died last year but I think Jerry Siegel's wife and inspiration for lois lane is still alive.