The National Writers Union and two other groups representing freelance writers recently closed the final chapter in a 12-year legal battle against the unauthorized distribution of freelance works by periodical publishers to electronic databases. Under the terms of the settlement, publishers including the New York Times, Time Inc. and the Wall Street Journal and database companies including Dow Jones Interactive, Knight-Ridder, Lexis-Nexis, Proquest and West Group agreed to pay writers up to $1,500 for stories in which they had registered their copyright. Writers who failed to register their copyright will receive up to $60 per article. The total amount of the settlement is capped at $18 million (U.S.). As far back as the 1980, publishers such as the New York Times began licensing the content of their publications for inclusion on electronic databases such as LEXIS/NEXIS. In 1993, a group of freelance authors brought suit against the New York Times and other publishers asserting that they did not have proper authorization to license the works of freelance authors in this fashion. However, it was not until 2001 that the U.S. Supreme Court provided a final ruling on the matter in favour of the freelance authors. It was this ruling that set the stage for the recent class action settlement which was brought as a separate action in 2000.
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