Columbia Pictures is taking legal action against George Gallo, the writer of the story that inspired the 1995 action hit film “Bad Boys,” in order to reaffirm its rights to the movie franchise. The studio has filed a complaint in California federal court arguing that Gallo cannot exercise a provision in copyright law that allows authors to reclaim ownership of their works after a certain period of time. Columbia Pictures is seeking a declaration from the court affirming that Gallo wrote the story as a work made for hire, making it ineligible for termination.
“Bad Boys,” directed by Michael Bay and starring Martin Lawrence and Will Smith, has already produced two sequels and a TV spinoff. Sony is reportedly considering a fourth installment of the franchise with Lawrence and Smith expected to return. However, when Gallo learned of these plans, he issued termination notices to the studio claiming that the assignment of his copyrights to Columbia Pictures and his own production company, Sweet Revenge Productions, had been terminated. He asserts that as of June 27, 2022, Columbia Pictures lost its U.S. rights to create new works based on his 1985 story, titled “Bulletproof Hearts,” which served as the basis for “Bad Boys.”
In recent years, there have been several legal battles over the rights to iconic franchises originating in the 1980s, including “Top Gun,” “Predator,” Terminator,” and “Friday the 13th.” Under U.S. copyright law, authors or their heirs have the ability to recapture copyrights that were previously transferred, typically after waiting 35 years for newer works. However, works made for hire are not subject to termination, which is the main argument put forth by Columbia Pictures in this lawsuit.
Columbia argues that in a 1985 contract, Gallo represented that he created and/or wrote the story as an employee-for-hire of Sweet Revenge. Gallo attempts to dispute this argument by claiming that he had personal rights to the story, which he later assigned to his production company. Columbia questions this representation and asserts that Gallo failed to disclose the inconsistency between his contract with Columbia Pictures and his claim that he assigned copyright to his story to Sweet Revenge. The studio’s lawyer, Kelly Klaus, argues that Gallo cannot make representations to induce the purchase of the story and then avoid the consequences of later claiming that the representations were false.
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Loan-out corporations are commonly used by writers, actors, and directors in the entertainment industry when contracting with studios. These entities provide various advantages, including tax benefits and limitations on personal liability. However, the 1976 Copyright Act did not fully consider the use of loan-out companies when it comes to termination rights for copyrighted works created by artists as employees of their own corporations.
In 2019, artists sued Universal Music Group in a class action claiming that the publisher ignored copyright termination notices. UMG’s defense was that the copyrights at issue were owned by the artists’ loan-out companies, not the artists themselves. According to the Copyright Act, only individuals can initiate the termination process. A federal judge ruled in favor of UMG, stating that only grants executed by the author (or the designated successor) can be terminated. Therefore, loan-out companies and third parties to a contract do not have termination rights under the statute.
The lawsuit between Columbia Pictures and George Gallo raises important questions about the rights and ownership of copyrighted works in the entertainment industry. It highlights the complexities surrounding termination rights and the use of loan-out corporations. The outcome of this case could have significant implications for both studios and artists, as it may establish a precedent for determining the eligibility of works for termination. As of now, Sweet Revenge, Gallo’s production company, has not responded to the lawsuit.
