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MIAMI (CN) — The iconic Miami rap group 2 Live Crew defended a recent legal win in front of an 11th Circuit panel Wednesday, seeking to regain the rights to their music catalog that spanned the 1980s and ‘90s.
The hip-hop group, known for such hits as “Me So Horny” and “Hoochie Mama,” sold the rights to their first five albums during 1995 bankruptcy proceedings to Lil’ Joe Records. The owner of that company, Joseph Weinberger, previously had a role as lawyer and chief financial officer of the group’s record label, Luke Records.
But in 2020, the members of the group — Luther Campbell, Raven Ross and survivors of the late Christopher Wong Won — sought to terminate their assignment of rights to Lil’ Joe Records under a provision of federal copyright law that allows a return of works under certain conditions after 35 years.
Lil’ Joe Records and Weinberger pushed back with a lawsuit in Miami federal court, arguing the albums were “works of hire” excluded by U.S. copyright law. A jury disagreed and handed over ownership of the music rights to the group in 2024. Lil’ Joe Records immediately appealed to the 11th Circuit.
In oral arguments Wednesday, Elliot Kula, representing Lil’ Joe Records, characterized the case as a “novel clash between the bankruptcy code and the Copyright Act.”
Kula argued that the transfer of assets to Lil’ Joe Records after the rap group’s bankruptcy proceedings included the artists’ rights under copyright law.
“So here, interestingly enough … we have the copyright, the property to which the termination rights would attach, also comes into the bankruptcy because Luke Records is a debtor in bankruptcy,” Kula told the three-judge appellate panel.
U.S. Circuit Judge Robert Luck interrupted.
“As I understand it, the rights were not disclosed in the schedule or litigated or brought to the court’s attention in any way,” Luck, a Donald Trump appointee, said referring to the bankruptcy case. “Am I right about that?”
Kula agreed, but contended that the bankruptcy sale was “all-inclusive.”
“The copyright is implicated,” he said.
“You’re right,” Kula responded, “except that once we’re dealing with that property right, the copyright, we’re dealing with an all-inclusive. The copyright is implicated.”
Luck, a Donald Trump appointee, pushed back.
“I don’t believe that just because the copyright that’s owned by the company is in bankruptcy that also encompasses the personal termination right.”
U.S. Circuit Judge Andrew Brasher chimed in.
“We’re not actually reviewing who owns really anything that arose out of the bankruptcy,” said Brasher, another Trump appointee. “We’re just deciding whether they have the right to get this copyright back, right?”
“The copyright was sold free and clear,” Kula answered.
Scott Burroughs, representing the members of 2 Live Crew, maintained federal law expressly allows authors and their heirs to reclaim copyrights transferred to publishers and record labels after a certain number of years.
“If we look at the terminology, what have we been calling it this whole time?” Burroughs asked the judges. “The termination right. It’s not property. It’s a right.”
Brasher questioned the “very unusual thing that Congress has created here.”
“So you have someone who has a lot of debts, and the day before they can exercise their right to reclaim this very valuable copyright, they lose their bankruptcy,” he said. “They discharge all their debts. The creditors get nothing. And then the day after bankruptcy, they exercise this right, and they get their copyright back.”
“Absolutely,” Burroughs said. “Any time that anyone looks to purchase a catalog like this, they’re aware of the termination rights.”
Luck took issue.
“It may be right, but it seems wrong to me,” Luck said. “To say that it’s not part of the bankruptcy estate seems wrong to me, and to say that you cannot disclose it and get away with it as some sort of fraud seems also wrong.”
U.S. Circuit Judge Jill Pryor, a Barack Obama appointee, joined Luck and Brasher on the panel.
The clash between 2 Live Crew and Lil’ Joe Records joins a string of other groundbreaking legal battles the rap group has fought since its inception, including those involving copyright law.
In the early 90s, the Broward County Sheriff’s Office arrested members of the group and barred sales of their album “As Nasty As They Wanna Be” over obscenity charges. The group sued unsuccessfully at first, but ultimately won their appeal in the 11th Circuit.
In 1994, 2 Live Crew faced a lawsuit for sampling Roy Orbison’s “Oh Pretty Woman” and prevailed when the U.S. Supreme Court ruled the group’s use of the song was a parody and considered fair use under copyright law.
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