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'Santa Claus is Comin' to Town' heirs get copyright present

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It's going to be a very merry Christmas for the family of the man who co-wrote “Santa Claus is Comin' to Town.”

The heirs of J. Fred Coots, who co-wrote the 1934 holiday jingle with Haven Gillespie, are entitled to copyright ownership of the song, the U.S. Court of Appeals for the 2nd Circuit ruled Thursday.

The ruling states that EMI Feist Catalog Inc.'s rights to “Santa Claus is Comin' to Town” will expire in December 2016, not in 2029 like the music publishing company argued.

Mr. Coots sold “Santa Claus is Comin' to Town” to EMI's predecessor, Leo Feist Inc., in 1934, and granted him renewal rights in 1951, court records show.

Without copyright term extensions, “Santa Claus is Comin' to Town” would be in the public domain, and the many artists who've covered the tune, such as Bruce Springsteen and Justin Bieber, wouldn't owe royalties.

However, despite sending a notice that listed 1990 as the termination date, Mr. Coots entered into a new copyright agreement with EMI in 1981, according to records. He died in 1985.

In a 2007 notice sent to EMI, his surviving family listed 2016 as the termination date for the 1981 agreement, records show. EMI offered them $2.75 million for the rights, but it was rejected.

The U.S. District Court for the Southern District of New York ruled in 2013 that the 1951 agreement was never terminated and therefore remains in effect.

On Thursday, the U.S. Court of Appeals for the 2nd Circuit reversed and remanded the case, stating that the 2007 termination notice sent by Mr. Coots' heirs will terminate the 1981 agreement on Dec. 15, 2016, and that EMI's arguments are without merit.

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