Zuill

This case turns on construction of the copyright statute of limitations, 17 U.S.C. § 507 (b), as applied to claims of co-ownership. There is also an issue of costs.

FACTS

Mr. Shanahan came up with the idea which eventually became “Hooked on Phonics.” This is a program, which includes audio tapes and flash cards, to assist children in learning how to read. Mr. Shanahan created what became Hooked on Phonics by setting vowel and consonant sounds to Three Blind Mice on audiotapes, to help his son learn how to read. Later, Mr. Shanahan brought in an arranger and piano teacher, Mr. Zuill, and a *1368 percussionist, Mr. Rossi, to improve the music. Music was used to make the drill and practice more enjoyable for the children who would use the tapes.

There was some ambiguity about who was to be paid how much. Eventually, in January of 1987, Mr. Shanahan presented Mr. Zuill and Mr. Rossi with a written agreement saying that each of them would get two and one half percent of “profits from the sale of Hooked on Phonics.” The agreement also recited that Mr. Shanahan’s company, HMS Publishing Company, Ltd., was the “sole owner and copyright holder of ‘Hooked on Phonics.’ ” Mr. Zuill and Mr.…