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O'Melveny & Myers scored a big win for Warner Brothers Entertainment Inc. in January 2013 in the company's ugly copyright battle with the heirs to the creators of Superman. The U.S. Court of Appeals for the Ninth Circuit decided that the heirs of now-deceased Superman co-creator Jerry Siegel signed away their rights to the Man of Steel in a 2001 agreement with Warner Brothers. Larson v. Warner Bros. Entertainment Inc., 11-55863.
The Siegel family, represented by controversial Hollywood attorney Marc Toberoff, had argued that the 2001 deal wasn't binding. The Ninth Circuit rejected that argument, noting that Siegel's lawyer at the time called the agreement a “monumental accord.”
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The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
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