On March 1, 1938, Detective Comics paid Jerry Siegel and Joe Shuster one hundred and thirty dollars, reflecting their standard page rate, for the Superman story in Action Comics #1. Enclosed with the check: a contract assigning the company “exclusive right[s]” to Superman “to have and hold forever.” Not only did Siegel and Shuster sign the contract, but in September of that same year they signed an employment agreement acknowledging that the company owned Superman. (10)
That we are now talking about Siegel’s family gaining co-ownership of Superman is something of a miracle. Time and again, Siegel’s fight for the rights to the character ended in bitter disappointment. In a 1948 settlement, Siegel and Shuster once again acknowledged that Detective Comics “owned all rights to Superman.” (16) In 1974, a federal appeals court affirmed a lower court ruling that when Siegel and Shuster transferred “all their rights” to Superman “forever,” they signed away the possibility of getting him back. (17)
How could a court today possibly bring Siegel’s claim back from the dead?
To understand what happened, it will help if we first identify exactly what rights the court says Siegel’s heirs now possess. Since other experts have provided useful summaries of the entire court opinion, here I want to boil it down even further to just the core rulings:
The Siegels’ copyright interest: The Siegel family has regained the copyright to the Superman material in Action Comics #1, effective April 16, 1999. (56, 72)
House ads: The house ads published prior to Action Comics #1 merely give DC Comics a copyright interest in “the image of a person of extraordinary strength who wears a black and white leotard and cape.” (40)
Work-for-hire: No part of the Superman material in Action Comics #1 can be carved out as work for hire. (41-48 )
International rights: The Siegel’s regained copyright interest only extends to domestic U.S. rights. It does not include any rights gained under foreign laws, including rights to international profits. (65-66)
Accounting for profits: DC must account to the Siegels, as co-owners, for the profits from Superman material derived from Actions Comics #1–with the exception of derivative works prepared before April 16, 1999. The court does not resolve the question of what, if anything, the Siegels should be paid for pre-termination derivative works that have in some way been altered since April 16, 1999. (66-68)
Trademark: The Siegels cannot share in profits purely attributable to Superman trademark rights. However, the court does not determine whether they are entitled to profits from mixed trademark uses that include elements of the Siegels’ copyrighted material. (66-68)
Superman movies and TV shows: The court does not resolve the issue of Superman profits generated by Warner Brothers Entertainment and Time Warner, Inc. (71) The court ruling calls for “a trial on whether to include the profits generated by DC Comics’ corporate sibling’s [sic] exploitation of the Superman copyright.” (72)
As we can see from the above, what happened with the judge’s ruling may have been miraculous, but it wasn’t simply a case of restoring all the rights that Siegel signed away. Why that’s the case–and what this means for creators today–will be the subject of my next post.