Full Breakdown
Supreme Court Recusals Halt Major Copyright Case
By Drooid · · How we work
Core Event
On a recent Monday, the United States Supreme Court affirmed a lower-court ruling without comment because four justices—Sonia Sotomayor, Neil Gorsuch, Amy Coney Barrett, and Ketanji Brown Jackson—recused themselves from *BMG Rights Management v. Vetter* (No. 25-1391). Their recusals left the Court with only five participating justices, below the six-justice quorum required under 28 U.S.C. § 1, so the petition was dismissed and the lower-court decision stood.
Background & Context
The dispute centered on whether creators can terminate copyright assignments to reclaim foreign rights under the 1976 Copyright Act. BMG Rights Management LLC, a subsidiary of Bertelsmann SE, sought clarification after the Fifth Circuit ruled that a songwriter could reclaim worldwide rights to a 1960s hit. Lower courts in the Ninth and Second Circuits had rejected such recovery, creating a split the Supreme Court was poised to resolve.
Four justices have recent book contracts with Penguin Random House, also owned by Bertelsmann. Their financial ties raised questions under the Court’s code of conduct, which obliges justices to recuse when a “financial stake” could be affected by a case’s outcome.
Data & Statistics
- Four justices recused, leaving five participating justices.
- The case involved BMG Rights Management LLC, a subsidiary of Bertelsmann SE, which also owns Penguin Random House.
- The Fifth Circuit’s decision affirmed the songwriter’s right to reclaim worldwide royalties, described by attorneys as a “shock” but “well-reasoned.”
Official Statements & Responses
Criticism & Opposition
Fix the Court executive director Gabe Roth called for reform: “When you have a financial stake in a party or your finances could somehow be impacted by the outcome of a case, under federal law and the Supreme Court code of conduct, the justices are supposed to recuse.” He added, “Today's recusals make clear that the Supreme Court's current disqualification standards need review.”
Verbatim Quotes
- “When you have a financial stake in a party or your finances could somehow be impacted by the outcome of a case, under federal law and the Supreme Court code of conduct, the justices are supposed to recuse,” — Gabe Roth
- “This fight was and will continue to be on behalf of all artists, even those who happen to sit on the Supreme Court,” — Tim Kappel
- “I don’t think I’ve ever seen a statutorty affirmance by default, ever,” — David Gold, entertainment IP attorney
Conflicting Reports & Gaps
The Court did not disclose why the four justices recused themselves, leading to speculation that their publishing contracts created the conflict. No official explanation has been provided.
Why It Matters
The Supreme Court’s inability to hear the case leaves the Fifth Circuit’s interpretation of foreign-rights termination as the controlling precedent, affecting valuation and litigation strategies for music, film, and other creative works with global markets.
What’s Next
Legal scholars and advocacy groups, including Fix the Court, are urging Congress to legislate clearer recusal standards and consider mechanisms—such as appointing substitute justices—to prevent future quorum failures. No formal legislative proposals have been announced.
