Jurisdiction - intellectual property rights - lex situs rule - no exception for public policy considerations

Peer International Corporation and Others v Termidor Music Publishers Co Inc and Another (Editoria Musical de Cuba (part 20 defendants)): CA (Lord Justice Aldous, Lord Justice Mance and Lord Justice Latham): 30 July 2003

The claimants claimed ownership of the UK copyright in certain Cuban musical works against the defendants.

The part 20 defendants claimed title based on Cuban Law 860.

At the trial of various preliminary issues, the judge held, among other things, that Cuban Law 860 was ineffective to deprive the claimants of any copyright vested in it because it offended against the 'lex situs rule' as set out by Dicey and Morris in The Conflict of Laws, 13th ed (2000), rule 120.

The part 20 defendants appealed.

Christopher Greenwood QC and James Mellor (instructed by Teacher Stern Selby) for the part 20 defendants; David Lloyd Jones QC and Pushpinder Saini (instructed by Sheridans) for the claimants.

Held, dismissing the appeal, that law 860 had the effect of regulating property rights; that the evidence did not establish that there was an internationally accepted view on public policy as to assignments of copyright; that in any case the submission that there should be an exception to the lex situs rule based on public policy was misguided; that any exception based on public policy was wrong in principle because it would subordinate English property law to that of a foreign state; the rule would be founded and would operate by reference to public policy which could change from time to time and could be uncertain; it would require the English courts to assess the merits of the foreign legislation; it would lead to intractable problems when the property was situated in a third state; it would require the court to balance one public policy against the public policy that states do not interfere with property situated abroad, and it would lead to great uncertainty.