The termination provisions relating to the recapture of copyright contain a safeguard for the original grantee (or that grantee’s successor in title) that prevents the author or his/her heirs from granting the terminated rights to a third-party until after the effective date of termination. An exception is made for a further grant to the original grantee or its successor in title. In effect, this allows the original grantee an exclusive negotiation period that begins on the date notice of termination is served and continues through the effective date of termination. A grant made to a third-party during this period is invalid.
Third Edition. Lisa A. Alter, Esq.