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Far Out Productions Inc v Water Music Productions Ltd & Ors
Facts
C owned copyright in a sound recording, ‘Low Rider’. D3 was an advertising agency, engaged by D1/2 to run a TV advertising campaign for Marmite, which it did between 1994 and 2003. D3 engaged D4, a music production company to make music for the soundtrack; initially in 1993 to make the music for a mock-up by using the sound recording, and then when the mock-up was approved, to re-perform Low Rider not using the original soundtrack for the broadcast version. D4’s evidence was that it had expected D3 to have cleared any necessary rights. In 2003 C complained to D3 of infringing use of sound recording in the adverts. In 2004, D1-3 admitted liability and said that D4 was responsible for the presence of the infringing content. In 2005 C made a Part 36 offer to settle for £4M. Later in 2005, C started action. In October 2009 C settled with D1-3 for £400,000 plus a contribution to costs, and discontinued against D4.