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The U.S. Court of Appeals for the First Circuit reversed a district court's award of attorney fees to Sony Corp. under §505 of the Copyright Act for winning a ruling that a lawsuit over a Sony Music songwriting contest should be sent to arbitration. Cortés-Ramos v. Sony Corp. of America, 16-2441.
Luis Adrián Cortés-Ramos filed suit in the U.S. District Court of the District of Puerto Rico alleging fraudulent inducement and copyright claims. He asserted that Ricky Martin's recording “Vida” was similar to a song Cortés-Ramos had submitted to the songwriting contest. But the district court found no fraudulent inducement and ruled the song dispute should be arbitrated under the contest agreement's mandatory arbitration clause.
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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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