A lawsuit that had been filed against Warner/Chappell Music in the matter of the "Happy Birthday" song has now been settled. The suit filed in 2013 challenged Warner/Chappell Music's copyright to the famous song. Most significantly, one of the terms of the settlement of the case which was set to go to trial on Dec. 15 includes the condition that the lyrics to the song will henceforth move to the public domain, according to Reuters. This implies that anyone wishing to use the lyrics going forward may now do so without having to pay a license or royalty fee to Warner/Chappell Music.
The case was filed in California by a company making a documentary film about the history of the song. Warner/Chappell Music had sent the filmmakers a bill for $ 1,500 for the use of the song in the film. The film company was not convinced that Warner/Chappell Music had the copyright to this song in the first place, hence it filed the suit challenging Warner/Chappell's claim to the song, according to the New York Daily News.
In September of this year, Judge George King held that Warner/Chappell Music did not have copyright to the lyrics of the song but only to certain sections of the melody. He ruled that the registration of the copyright in 1935 did not cover the copyright to the lyrics of the song, therefore Warner/Chappell Music did not inherit this right when it purchased the predecessor-in-interest.
It has been estimated that Warner/Chappell Music has been collecting up to $ 2 million every year from the licensing of the song, according to the The Hollywood Reporter.
Warner/Chappell Music enforced its license of the song selectively. It permitted the private use of the song at parties and other events without a license. However, whenever the song was sought to be used commercially, such as in a movie or in a documentary film, it enforced this right and charged the makers of such movies for the use of this song in their productions.
