In 1938, Jerry Siegel and Joe Shuster gave away the copyright to Superman to Detective Comics, Inc., the predecessor of DC Comics. In 1948, National Comics (another predecessor) settled ownership and royalties disputes and paid $94,013.16 for Superman and Superboy rights. In 1969, a court ruled that Siegel and Shuster's grant of copyright included their renewal rights. Shuster died in 1992 and his heirs re-granted their rights for a $25,000 annual stipend. In 2001, the Siegel heirs took back their rights using the termination provision of the Copyright Act of 1976 and accepted a new purchase offer from Warner.
Later in 2001, the heirs tried to reclaim their rights after Marc Toberoff made a better offer. The Central District court of California ruled in 2008 that the Siegel heirs can cancel the Warner purchase, but this was overturned in 2012 on appeal to the 9th circuit. Thus, DC Comics currently holds the copyright to Superman.
Background DC Comics corporate history National Allied Publications was founded in 1934 by Malcolm Wheeler-Nicholson. Due to financial difficulties, Wheeler-Nicholson formed a corporation with Harry Donenfeld and Jack Liebowitz called Detective Comics, Inc. In January 1938, Wheeler-Nicholson sold his stake in National Allied Publications and Detective Comics to Donenfeld and Liebowitz as part of a bankruptcy settlement. On September 30, 1946, these two companies merged to become National Comics Publications.Judge J. Addison Young, "Findings of Facts", April 12, 1948:"DETECTIVE COMICS, INC. was a corporation duly organized and existing under the laws of the State of New York, and was one of the constituent corporations consolidated on September 30, 1946 into defendant NATIONAL COMICS PUBLICATIONS, INC." On June 29, 1961, the company became known as National Periodical Publications. In 1967 National Periodical Publications was purchased by Kinney National Company, which later purchased Warner Bros.-Seven Arts and became Warner Communications. In 1976, National Periodical Publications changed its name to DC Comics. Since 1940, the publisher had placed a logo with the initials "DC" (as in "Detective Comics") on all its magazine covers, and consequently "DC Comics" became an informal name for the publisher.: "By 1940 the publisher began to be identified as DC Comics, after a circular logo appearing on its covers. Officially the initials stood for "Detective Comics"..."
Estate of Jerome Siegel
Jerome Siegel (Oct 17, 1914 – Jan 28, 1996) — Writer, co-creator of Superman Michael Siegel (Jan 27, 1944 – Jan 17, 2006) — Son of Jerome and Bella Siegel (Jerome's first wife, m. 1939 and div. Oct 1948). Not to be confused with the father of Jerome, also named Michael. Joanne Siegel (Dec 1, 1917 – Feb 12, 2011) — Jerome's second wife (m. Oct 13, 1948). Laura Siegel Larson (born Mar 1, 1951) — Daughter of Jerome and Joanne Siegel.
Estate of Joseph Shuster
Joseph Shuster (July 10, 1914 – July 30, 1992) — Illustrator, co-creator of Superman. Jean Adele Peavy (born Feb 1, 1921) — Sister of Joseph Shuster, mother of Mark Warren Peary and Dawn Peavy. Mark Warren Peary (born Jan 14, 1962) — Nephew of Joseph Shuster, son of Jean Peavy. He changed his surname from "Peavy" to "Peary".Warren Peary changed his name from "Peavy" to "Peary", according to the complaint filed by DC Comics in the 2010 lawsuit (2:10-cv-03633). Dawn Peavy — Niece of Joseph Shuster, daughter of Jean Peavy. Frank Shuster (April 29, 1918 – Nov 7, 1996)U.S. Social Security Applications and Claims Index, 1936-2007Via ancestry.com — Brother of Joseph Shuster. Not to be confused with Frank Shuster (died 2002), cousin to Joseph Shuster and professional comedian.
Siegel and Shuster's employment at DC Comics (1935–1947) In 1933, writer Jerry Siegel and artist Joe Shuster conceived the fictional comic strip character Superman. For the next five years, they tried selling Superman to various newspaper syndicates, with no success.
In 1935, Siegel and Shuster began working for New York comic magazine publisher National Allied Publications, producing detective and adventure stories. They refused, however, to sell Superman, their prize creation, to National Allied because it was a poorly managed business.Jerome Siegel, in a sworn affidavit signed 1 March 1973, filed in Jerome Siegel & Joseph Shuster vs National Periodical Publications et al, 69 Civ 1429:"In 1935 Malcolm Wheeler-Nicholson, a publisher of comic books, expressed interest in Superman and tried to persuade us that the property would be more successful if published in comic book form where it would be seen in color, than it would be in a black and white daily strip. Our experience with him had been such that we did not consider him the publisher to entrust with the property and his proposal was rejected."
On December 4, 1937, Siegel and Shuster signed an employment contract with Detective Comics, Inc. (an affiliate of National Allied Publications) that gave Detective Comics, Inc. the right of first refusal over any comic material they produced for the next two years, and stipulated a pay rate of $10 per page.
In January 1938, Detective Comics, Inc. offered to publish Superman. Siegel and Shuster by now had given up on the newspapers and agreed to sell Superman to Detective Comics, Inc. They produced 13 pages of comic stories, which they submitted to Detective Comics, Inc. in late February. In March, they signed a contract in which they released the copyright for Superman to Detective Comics, Inc.Siegel, Jerry. Unpublished memoir "The Story Behind Superman #1", registered for U.S. copyright in 1978 under later version Creation of a Superhero as noted by . Memoir additionally cited by . The contract for the sale, signed in March 1938, read:
Superman was published on April 18, 1938, in Action Comics #1, and was an immediate and great success. Siegel and Shuster now regretted selling the copyright for so little. Nevertheless, DC Comics retained Siegel and Shuster because they were popular with the readers. From 1938 to 1947 they were together paid over $400,000 (AFI $).Exhibit Q (Docket 353-3) in Laura Siegel Larson v Warner Bros. Entertainment, Inc., DC Comics, Case no. 13-56243 (Scans available from Dropbox and Scribd). Originally submitted as an exhibit in Jerome Siegel and Joseph Shuster v. National Comics Publications Inc. et al., No. 1099-1947 (N.Y.Sup.Ct. 1947)
On September 22, 1938, Siegel and Shuster signed a 10-year contract with Detective Comics wherein they agreed to give Detective right of first refusal with a duration of six weeks over any comics stories they created for the next five years.
On December 19, 1939, Siegel and Shuster signed a contract which increased their pay rate to $20 per page and promised them 5% of net proceeds from any commercial exploitation of Superman beyond magazines, books, and newspapers.Judge J. Addison Young's findings of facts, April 12, 1948:"On December 19, 1939, a modification agreement (Pl. Ex. 22), was entered into between plaintiffs and DETECTIVE COMICS, INC. by which plaintiffs' compensation for SUPERMAN magazine releases was increased to $20. per page, and in addition DETECTIVE COMICS, INC. agreed to pay to plaintiffs 5% of the net proceeds to be derived from commercial exploitation of SUPERMAN other than from magazine and book publication and newspaper syndication."
In November 1938, Siegel proposed to Detective Comics that he do stories of Superman's childhood adventures, with the character calling himself "Superboy". Detective rejected Siegel's pitch. In December 1940, Siegel pitched the idea again with a complete script for the first story, but Detective did not respond within the contractual six weeks.
Siegel served in the US Army from June 1943 to January 1946,Summary of Jerome Siegel's service record, via the National Personnel Records Center and spent most of his service in Hawaii. During this time, his work was taken over by ghostwriters, but Siegel was still paid for each strip.Judge J. Addison Young, "Findings of Facts", April 12, 1948:"92. From June 1, 1943 to March, 1947, DETECTIVE COMICS, INC. published in magazines, 120 releases of the comic strip SUPERMAN, for which plaintiff SIEGEL did not create the continuity.93. DETECTIVE COMICS, INC. paid to plaintiff SIEGEL the sum of $200. per release for each of said 120 releases, which sum was accepted by plaintiff SIEGEL in full payment." Shuster was also paid for work done by ghost-artists.Judge J. Addison Young, "Findings of Facts", April 12, 1948:"94. From July 1, 1943 to March, 1947, DETECTIVE COMICS, INC. published in magazines 130 releases of the comic strip SUPERMAN for which plaintiff SHUSTER did not create art work.95. DETECTIVE COMICS, INC. paid to plaintiff SHUSTER the sum of $150. per release for 80 of said releases, and the sum of $200. per release for 50 of said releases, which sums were accepted by plaintiff SHUSTER in full payment."
In 1944, while Siegel was serving in Hawaii, Detective Comics published a Superboy story in More Fun Comics #101. The story was partially based on the script Siegel had submitted in 1940, and was illustrated by Shuster.: "So when the first official Superboy adventure was published in More Fun Comics #101, the first portion of the story is Jerry’s script with Joe (and the shop) providing art. But then, abruptly, the tone changes as writer Don Cameron is brought in to finish the rest." Detective had done this without informing Siegel; he learned about it in a letter from Shuster.
1947–1948: Siegel and Shuster sue for ownership of Superman and Superboy In 1947, Siegel and Shuster sued National Comics Publications for the rights to both Superman and Superboy and a "just share" of all profits that National and its partners made off the character. The suit was filed with the Supreme Court of the State of New York, in Westchester County.Jerome Siegel and Joseph Shuster v. National Comics Publications Inc. et al., No. 1099-1947 (N.Y.Sup.Ct. 1947) The case was presided over by Judge J. Addison Young.
Regarding the ownership of Superman Siegel and Shuster argued that the March 1, 1938 contract in which they sold Superman to Detective Comics, Inc. should be voided because it lacked sufficient consideration for Siegel and Shuster. Judge Young ruled that the $130 mentioned in the contract was not payment for the copyright to Superman but their wages for the thirteen pages of Superman stories they made for Action Comics #1. Young referred to their December 4, 1937 employment contract, which gave Detective Comics, Inc. the right of first refusal over any comic magazine material Siegel and Shuster produced, and which stipulated a pay rate of $10 per page. The $130 mentioned in the March 1, 1938 contract was therefore a superfluous assessment of their wages which were already owed, and not payment for the copyright to Superman.
Judge Young concluded that the consideration that Siegel and Shuster had effectively bargained for was simply to see Superman published.
Siegel and Shuster also argued that the March 1938 contract lacked mutuality, saying that at the time Superman was an idea not fully developed and thus there was no clear concept on what was being sold. Judge Young disagreed, and concluded that the strips that appeared in Action Comics #1 were based on a fully developed concept that Siegel and Shuster submitted before March 1938, and this is what Detective Comics, Inc. had purchased in the contract.
On April 12, 1948, Young declared that Superman belonged to National.Judge J. Addison Young, in his April 12, 1948 interlocutory judgment.
Regarding the ownership of Superboy