A “Double Shot” Heard Around the World: Fifth Circuit Holds That Copyright Termination and Renewal Can Flip Worldwide Ownership

Key Takeaways

• U.S. copyright termination and renewal can flip worldwide ownership. The Fifth Circuit held that when a “worldwide” grant arises under U.S. law, a valid statutory termination or renewal can recapture global rights, not just U.S. rights, upending long-settled assumptions in legacy catalogs.
• Legacy “worldwide” grants carry heightened clearance and licensing risk. Music, film, and publishing stakeholders relying on pre-1978 grants must reassess chains of title, as termination or renewal events can affect who controls and may license a work worldwide.
• Cross-border exploitation strategies require renewed diligence. While foreign recognition of U.S.-based ownership shifts remains uncertain, distributors and rights holders should proactively audit catalogs, confirm statutory timelines, and prepare for rapid re-papering and renegotiation following termination or renewal events.

In a significant decision for creators, publishers, labels, and content distributors, the U.S. Court of Appeals for the Fifth Circuit has held that a valid copyright termination or renewal can shift worldwide ownership — not just U.S. rights — when the original grant arose under U.S. law. The ruling has meaningful implications for legacy catalogs, cross-border licensing, and rights clearance practices across the music, film, and publishing industries.

The decision, Vetter v. Resnik, affirms that statutory termination and renewal rights under U.S. copyright law may unwind decades-old “worldwide” grants and reallocate global ownership in ways many market participants have long assumed were settled.

Case Background: Vetter v. Resnik and the “Double Shot” Copyright Dispute

In 1962, Cyril Vetter and Don Smith co-wrote the song “Double Shot (Of My Baby’s Love).” The following year, both authors assigned all worldwide rights, including contingent renewal rights under the Copyright Act of 1909, to a music publisher. Smith died in 1972.

When the original copyright term expired in 1994, renewal rights split: because Vetter was alive, his renewal interest passed to the publisher under the original assignment; because Smith had died before renewal, his renewal interest vested in his statutory heirs.

In 1996, Vetter Communications Corporation purchased Smith’s heirs’ renewal interest. Years later, interests held by the original publisher were further assigned, leaving Robert Resnik with a claimed 25% stake.

In 2019, Vetter served a statutory termination notice under 17 U.S.C. § 304(c), effective May 3, 2022, seeking to recapture his original grant. The dispute came to a head in 2022, when ABC sought to expand a license for worldwide digital exploitation and Vetter asserted sole global ownership.

The district court granted summary judgment and declared Vetter (and his company) the sole worldwide owner based on termination and renewal. Resnik appealed, arguing the district court erred by declaring Vetter’s recaptured rights applicable throughout the world rather than limited to the United States. The Fifth Circuit affirmed, adopting the district court’s reasoning in full.

Fifth Circuit Holds Termination and Renewal Apply to Worldwide Rights

The Fifth Circuit’s opinion rests on two core holdings with broad practical reach.

First, the court held that termination under Section 304(c) can recapture worldwide rights. Where a “worldwide” grant arose under U.S. copyright law, a valid termination recaptures all rights conveyed by that grant, including rights exploited abroad. The court emphasized that the statute contains no geographic limitation and rejected prior decisions and treatise commentary suggesting termination operates only domestically.

Second, the court held that renewal under the Copyright Act of 1909 likewise carries worldwide effect. Renewal creates a new estate that vests either in the author or in statutory heirs, and because the renewal statute contains no territorial limitation, a vested renewal interest may shift global ownership.

Practical Implications for Legacy Catalogs and Global Licensing

The Fifth Circuit’s decision has immediate and practical consequences for creators, publishers, labels, distributors, and anyone relying on historic “worldwide” grants.

• Worldwide ownership can flip. A valid termination or vested renewal may reallocate global rights, not just U.S. rights, upending long-held assumptions about foreign exploitation and sub-publishing arrangements. Legacy catalogs that rely on pre-1978 grants are particularly exposed.
• Licensing and clearance risk increases. Sync, streaming, catalog acquisitions, and cross-border distributions now require renewed diligence. A termination or renewal event can affect who has authority to license a work worldwide, who must be paid, and whether existing licenses remain sufficient for new uses.
• Foreign recognition remains uncertain. Some jurisdictions may not recognize a U.S.-based ownership shift, creating conflict-of-laws issues, uneven enforcement, and potential pressure to renegotiate or escrow revenues while disputes are resolved.

Against that backdrop, rights holders and distributors should consider taking proactive steps, including auditing legacy worldwide grants, confirming statutory termination and renewal timelines, centralizing rights documentation, updating rights databases and platform metadata, revisiting risk allocation in licenses, and preparing for rapid re-papering when ownership changes occur.

What Comes Next: Appellate Review and Industry Impact

Further appellate review is possible. Until then, Vetter v. Resnik represents a meaningful shift in how courts may view the geographic scope of termination and renewal rights under U.S. copyright law. For creators, it reinforces the power of statutory second chances. For publishers and distributors, it underscores the importance of proactive rights verification in a global marketplace.

AGG advises creators, publishers, labels, and content distributors on copyright ownership and exploitation issues, including termination and renewal rights, cross-border licensing, rights clearance, and disputes involving legacy works and complex chains of title. For assistance at every stage — from portfolio assessment and transactional structuring to litigation and enforcement — please contact a member of the Intellectual Property team.