Copyright Licensee Must Have Owner’s Approval To Sublicense

The 9^th U.S. Circuit Court of Appeals has ruled that the owner of an exclusive copyright license may not transfer its interest unless it has or obtains the original licensor’s consent. This article discusses the ruling on this issue of first impression, requiring those involved in numerous industries - including entertainment, new media, software, merchandising, advertising and publishing - to rethink the manner in which they grant or obtain exclusive rights to copyrighted content in the future and review the manner in which they have done so in the past.