Fantasy Inc. v. Fogerty, 654 F. Supp. 1129 (1987) p.337
Fogerty wrote a song. Granted license and conveys it. Then wrote another song and conveyed it. Owner of first song sued Fogerty since he made the new song in violation of derivitive work. Legal owner of copyright to song brought action against beneficial owner and licensees for copyright infringement.
The District Court, Conti, J., held that beneficial owner could infringe upon legal owner's exclusive rights, and legal owner could bring infringement action against beneficial owner and his licensees. So ordered.
Difference between a legal owner and a beneficial owner.
Fogerty was the beneficial owner; therefore he cannot infringe himself on the work, because that is infringment on the legal owner. Therefore, Fogarty was infringing on derivitive work of person that owned legal title.
When drafting licenses need to make sure that the author's (especially with fiction writers) contracts contain right for author to make authorized derivitive work from the material that they are licensing. If you don't have this type of clause, it will be difficult negotiating for a producer.