LEGAL ENVIRONMENT OF BUSINESS 

INSTRUCTOR: HA THI THANH BINH  MEMBERS OF GROUP 5: NHU DINH HOANG NAM – 1258036 PHAM THI KIM NGAN – 1258038 NGUYEN THAI KHANH NGOC – 1258041 HUYNH THANH NGUYEN – 1258042 HUYNH PHUC NGUYEN – 1258043

Should the court grant the motion? Explain.

Summary

Music that is distributed on compact discs and similar media generates income in the form of “mechanical” royalties. Music that is publicly performed, such as when a song is played on a radio, in a movie or commercial, or sampled in another song, produces “performance” royalties. Each of these types of royalties is divided between the songwriter and the song’s publisher. Vincent Cusano is a member of a music band KISS and he left the band in 1984. Cusano sold to Horipro Entertainment Group “one hundred (100%) percent undivided interest” of his rights in the songs “other than Songwriter’s share of performance income. Later, Cusano filed a lawsuit against HoriPro to the federal court and said he has no intention of selling the writer’s share of the mechanical royalties.

Identify the Issue

Whether the court should grant Horipro’s motion and reject Cusano’s claim.

Rule: IntentionThe first requirement for an effective offer is a serious intent on the part of the offeror. Serious intent is not determined by the subjective intentions, beliefs, and assumptions of the offeror. Rather, it is determined by what a reasonable person in the offeree’s position would conclude that the offeror’s words and actions meant. In this case, Cusano is a offeror and Horipro Entertainment Group is a offeree.

ApplicationAccording to the case, Cusano sold to Horipro Entertainment Group “one hundred (100%) percent undivided interest” of his rights in the songs “other than Songwriter’s share of performance income.”. It means he sold the rights of his songs including writer’s share of the mechanical royalties to Horipro Entertainment Group except for his share of performance income. Because of this, Horirpo just has responsibility to pay Cusano the Songwriter’s share of performance income. Moreover, the case did not mention offer from Cusano (offeror) made in obvious anger, jest, or undue excitement so Horipro Entertainment Group in the offeree’s position would conclude that the offeror’s words and actions meant. In other words, Cusano had serious intention to sell the rights of his songs including writer’s share of the mechanical royalties to Horipro.

Conclusion 

The court should grant the motion for Horipro.

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