In music, you can always ask for another take. In bankruptcy, failing to list an asset may mean you’ve lost the right to take it at all. The Eleventh Circuit’s latest decision involving 2 Live Crew and the ownership rights to its music held by Lil’ Joe Records brings that distinction into sharp relief.

Background: The 11th Circuit’s 2007 Decision: Back in 2007, I wrote this post about a case in which the 11th Circuit Court of Appeals told JT Money, in no uncertain terms, that—to quote the rap group Souls of Mischief—”You got f***ed in the industry!” Though the lyrics were directed in part to the entertainment industry, that case proved that the bankruptcy industry is no great friend of struggling rappers either. There, the 11th Circuit held that the copyrights JT Money had transferred to Luke Records could be sold to Lil’ Joe Records in a bankruptcy 363 sale even though his royalty agreement was rejected as an executory contract. Rejection of that contract, the Court held, didn’t revest ownership in JT; rather, the copyrights remained with the bankruptcy estate of Luke Records and could be sold free and clear of JT Money’s interests.

The Current Dispute: Effect of Bankruptcy on “Inalienable” Copyright Termination Rights: Nearly two decades later, the Eleventh Circuit revisited the Lil’ Joe Records/2 Live Crew copyright saga. This time, the issue was whether the inalienable statutory termination rights to copyright interests of a 2 Live Crew member (Mark Ross aka Brother Marquis) in five of the group’s albums recorded between 1986 and 1989 became property of his chapter 7 bankruptcy estate.

By way of background, 2 Live Crew recorded five albums under an agreement with Luke Records, which was owned by one of 2 Live Crew’s members, Luther Campbell (aka “Uncle Luke”). Both Luke Records and Uncle Luke went bankrupt and—as noted above—Luke Records sold all recording copyrights that it had received under the agreement to Lil’ Joe Records in a free and clear bankruptcy 363 sale.

In 2000, Brother Marquis filed for chapter 7, but he (and his lawyer) failed to list on his bankruptcy disclosure schedule his future termination interests under Section 203 of the Copyright Act, which gives artists a “termination interest” after a certain amount of time to reclaim the copyright in their works despite having granted it to a third party.

In 2020, Uncle Luke, Brother Marquis, and the heirs of Wong Won (aka Fresh Kid Ice) served a termination notice on Lil’ Joe, seeking to reclaim the copyrights. Lil’ Joe sued, arguing that Brother Marquis’ termination interests were still locked in his now dormant bankruptcy estate (the chapter 7 closed on Feb. 28, 2007). The district court disagreed, holding that such interests are too personal and inalienable to become property of the filer’s chapter 7 bankruptcy estate.

The 11th Cir. Ruling “at the Intersection of Copyright and Bankruptcy“: Stating that the appeal “presents a question of first impression at the intersection of copyright and bankruptcy,” the Court reversed and held that under Bankruptcy Code section 541(a)(1) and (c)(1)(A) “all legal or equitable interests of the debtor in property” become property of the estate upon the filing of the petition “notwithstanding any provision in applicable nonbankruptcy law” that restricts transfer, including Section 203(a)(5) of the Copyright Act. And because Brother Marquis never disclosed those termination interests in his chapter 7 bankruptcy case, these rights were never administered or abandoned. As such, the Court held, under Bankruptcy Code section 554(c) and (d), these interests remained estate property indefinitely and so Brother Marquis could not exercise his termination rights since they were still property of his bankruptcy estate.

And alas, once again, a rap star “got f***ed in the [bankruptcy] industry“

The Door Remains Open for the 2 Live Crew Majority, Though Ever So Slightly: The Court closed with some questions left open by its decision, stating:

Although we conclude that Ross’s termination interests were property of the bankruptcy estate at the time he purported to exercise them, our decision is limited. We do not address how termination interests should be treated in bankruptcy. And we do not decide today what Ross’s heirs need to do to exercise those interests in the light of his bankruptcy.

What Happens Next?: I expect Lil’ Joe Records will try to purchase those termination interests from the bankruptcy trustee in a 363 sale and work a deal with the trustee of the Luke Records estate to purchase those termination interests free and clear in a bankruptcy 363 sale. The heirs of Brother Marquis (Ross died on June 3, 2024), Uncle Luke, and the heirs of Fresh Kid Ice could attempt to outbid Lil’ Joe Records at auction, but if that fails, well…you know the rest.

Practical Lesson: If you’re an artist (or advising one), remember: In bankruptcy, you may well lose what you don’t disclose—even decades later.

Lil’ Joe Records, Inc. v. Ross, No. 24-13978 (11th Cir. June 2, 2026) 2026 WL 1549151