SXSWORLD

30 Years After Disco Fame, "Funkytown" Could Become Copyright Milestone by David Menconi S ince hitting the air- waves during the last gasp of disco in the spring of 1980 until today, "Funkytown" has marked a milestone in more ways than one. First, the Lipps Inc. single was the fi nal disco song to reach No. 1 on the U.S. pop charts, and it hasn't really gone away since, turning up in scores of com- mercial spots, movies and TV shows over the ensuing years, including Shrek 2 and Th e Simpsons. More recently, it has quietly become part of what may be a key chapter in the area of copyright ownership. Lipps Inc. during the early '80s Act gives writers of compositions created after 1978 the right to reclaim ownership of copyrights after 35 years with a "termination of transfer" notice. Steve Greenberg (who wrote, produced and recorded "Funkytown" as Lipps Inc.), is the fi rst artist to do so, in anticipation of the song's 35-year birthday in 2015. It is a case with ramifi cations far beyond "Funkytown," because this scenario will eventually apply to every recording released since January 1, 1978. Since Greenberg fi led his notice, Kris Kristoff erson, Tom Petty, Bob Dylan and other artists have fi led similar claims. "Battle lines are being drawn," says Ken Abdo, a Minneapolis attorney who represents Greenberg. "With all the challenges record companies are having, this would be a dagger into an already wounded entity. Th e real issue this is for is the valuable catalog that labels have, the hits that continue to be licenseable. 'Funkytown' is a highly licensed recording that continues to be an annuity." Given the modest circumstances of the song's origins, that did not seem likely in Funkytown's early days. Greenberg was playing in bands in Minneapolis in the late '70s while working as a disco DJ on the side. Figuring he could concoct a disco hit himself, he made some recordings and got a deal with Casablanca Records, home to Donna Summer, Village People and other disco-era stars. "Rock It" was actually the song that got Greenberg his deal. "When I went to sign my record deal, I told them, 'I have this other song called "Funky Town" that I think is really great,'" Greenberg recalls. "'Great,' they said, 'we'll hear it when you get back. Now go make an album. How much money you need?' I asked for $25,000 and they laughed. 'Th at's all? Are there cows walking by the studio, too?' " Except for a short-lived ensemble assembled later for touring, A little-noticed clause in the 1976 amendment to the U.S. Copyright Lipps Inc. was a band in name only. Greenberg played everything on "Funkytown" himself except for violins, saxophone and Cynthia 46 SXSW ORLD / FEBRUAR Y 2012 know anything about the record business," Greenberg says. " 'Th at is incredible,' they said. Soon after that, 'Funkytown' went from #66 to #10 in one week on the dance chart, and at that point I thought, 'Hmm, maybe there's something going on here.' But I still never thought 'huge,' or that I'd still be talking about it 32 years later." Th ree decades later, "Funkytown" is still around and generating substantial sums through airplay royalties and licensing deals, although Greenberg has been judicious about what he will let it be used for. He turns off ers down all the time, such as the ad agency that wanted to turn it into a parody about overweight people called "Chunky Town." "I take care of it like a child you have to watch and nurture and keep out of bad situations," Greenberg says. "One guy doing local car ads off ered me fi ve Mercedes-Benzes. What am I gonna do with fi ve cars, anyway?" But if Greenberg has made a lot of money off "Funkytown" over off in early 1980, the head of Casablanca's sales department called Greenberg to tell him that he had sold 23,000 albums in one day in New York City. Greenberg's response was to ask if that was any good. "Th ey thought I was hilarious because I didn't Johnson's lead vocal, going through a painstaking process in those pre-Pro Tools days to get the signature organ hook, vocoder fl ourishes and other eff ects just right. As "Funkytown" was taking the years, Casablanca and more recently, Universal Music Group, have made even more. After learning about termination of transfer at a legal seminar, Abdo fi led notice in 2006 against the song's publisher, Warner/Chappel Music, and label, Universal Music Group. Warner/Chappel responded by renegotiating Greenberg's deal with terms more favorable to him. But he and Abdo are still awaiting a response from Universal. Th us far, the labels' position is that termination rights do not apply to sound recordings because they are "works for hire," with recording artists in the role of employees. Th e case will probably hit the courts in 2013, when recordings from the year 1978 become eligible under the 35-year guideline. "Labels would obviously have a lot to lose by admitting that this reversion applies," Abdo says. "Th e act is much clearer and less convoluted with respect to songwriting. It's less clear regarding sound recordings, and it's also complicated as to who is the author – the producer, featured artist, members of the band? It's a pretty complex law, which is why we need judicial interpretation. Maybe all the way to the Supreme Court." ■ COURTESY OF STEVE GREENBERG

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