Before the last World Cup, Sony sponsored a song-writing contest.  It invited entrants to submit an original song and music video, with a promise that the winning composition would be on the official World Cup Album.  (Didn’t know there was such a thing?  Check out the songs.)  The plaintiff in this case submitted his song, but did not win.  About two years later, Ricky Martin (who had been involved with the World Cup contest) released the song “Vida.”  Plaintiff alleged that the “Vida” music video was similar to plaintiff’s contest video and violated federal copyright/trademark laws.

In response, Ricky Martin moved to compel arbitration.  He relied on the arbitration agreement in the contest rules.  The district court granted his motion, noting that Martin was a third-party beneficiary and referenced in many parts of the contest terms.  On appeal, however, the First Circuit reversed, finding Ricky Martin was a non-signatory who did not fit any exception to the general rule.  Cortes-Ramos v. Martin-Morales, 2018 WL 3134601 (1st Cir. June 27, 2018). In finding no clarity that the contracting parties intended to make the singer a third-party beneficiary, the appellate court focused on two things: the carve-out language in the arbitration agreement which implied that the only parties were the entrants and the co-sponsors; and references to Martin in other parts of the contest rules, but not in the arbitration agreement (suggesting the drafters knew how to reference him when they wanted to).

 

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