Press Release

HFA Announces New Licensing And Distribution Procedures Per The Ahlert Music Corp. v. Warner/Chappell Music Decision.
In its ongoing effort to protect the rights and interests of its music publisher principals, and in view of the recent Ahlert Music Corp. v. Warner/Chappell Music decision, The Harry Fox Agency, Inc. (HFA) has instituted several new licensing and distribution procedures, it was announced today by Edward P. Murphy, President & CEO of National Music Publishers' Association (NMPA) and HFA.

On April 14, 1997, the United States District Court for the Southern District of New York issued a complex and important ruling in the case Ahlert Music Corp. v. Warner/Chappell Music. The case involved the song "Bye, Bye Blackbird," as recorded by Joe Cocker in 1969, and the subsequent re-use of that same master on the 1993 soundtrack album "Sleepless in Seattle."

Essentially, it involves the use of a master recording previously created under a license issued by a publisher prior to the termination of that publisher's rights for the 19­year extended term for pre­1978 copyrighted works, in a new recording or other medium subsequent to the termination, when the original license covered only the use of the master in a particular referenced record by number, recording artist or other specific information. It should be noted that the licenses issued by HFA on behalf of publishers generally include similar specific record limitations so that separate licenses are issued for different uses of a master recording in different records and even for different configurations.

"While we believe that this ruling will be appealed," stated Murphy, "We are nonetheless committed protecting the rights of our music publisher principals and copyright owners in the interim."

Pending the appeal and a final judgement being rendered in the case, HFA is proposing the following licensing and distribution guidelines regarding royalty distributions and licensing activities where the circumstances of the Ahlert case apply.


1. HFA will deposit all undistributed mechanical royalties now held by it or received by it in the future in an interest bearing account to be kept there until a final judgement is rendered in the case. At that time, HFA will distribute the royalties with the interest accrued to the appropriate parties in accordance with the final judgement.

2. If at any time HFA deems it appropriate as a general matter or in specific instances, it may seek judicial relief by depositing royalties with a court to determine the appropriate party entitled to the royalties, or seek other judicial relief or determination with respect to royalty entitlement.

3. If license requests are received by HFA for new uses of the master, HFA will seek to have the interested parties reach an agreement s to the terms under which a license should be issued and act accordingly pursuant to the agreement of the parties. In the absence of any agreement, HFA may refrain from issuing any license. entitlement or authority, and further protections deemed appropriate by HF.

4. HFA may seek from any party evidence or assurances as to the party's standing,A before proceeding with, or refraining from taking, any action.

5. HFA will proceed similarly with respect to distributions and licensing regarding synchronization rights and rights other than mechanical rights.

6. Since the Ahlert case confirmed the right of the original publisher established in the Mills Music case to continue to receive royalties paid under licenses issued by the original publisher prior to termination of the original publisher's rights for the 19-year extended term for pre-1978 copyrighted works, royalties will continue to be paid by HFA to the original publisher on those records covered by those licenses.

HFA is adopting this course of action in an attempt to protect the rights and interests of all publishers and writers in the music publishing community, and to seek to avoid the delay, expense and confusion inherent in litigation between parties that could ensue. It should be emphasized that the Ahlert case situation to which these procedures will apply relates to only a small percentage of the volume of royalty distribution and licensing activity conducted by HFA.

The National Music Publishers' Association, founded in 1917, works to protect and advance the interests of the music publishing industry. With over 600 members, the NMPA represents the most important and influential music publishing firms throughout the United States. The Harry Fox Agency, Inc., the licensing subsidiary of NMPA, provides an information source, clearing house and monitoring service for licensing musical copyrights, and represents more than 17,000 music publishers.