A federal appeals court has ruled against 2 Live Crew and overturned a verdict that allowed the legendary hip-hop group to regain legal control of much of their record catalog.

In a decision Tuesday (June 2), the U.S. Court of Appeals for the Eleventh Circuit ruled that members of the group couldn’t invoke copyright law’s “termination right” — a provision that allows creators to take back ownership of their works decades after they sold them away.

Siding with a label called Lil Joe Records that bought the band’s masters in the 1990s and controlled them ever since, the court overturned 2 Live’s major legal victory in 2024, which saw the group win back control of five of its albums.

The reason? The court said that one of 2 Live’s members, Brother Marquis (Mark Ross), had filed for bankruptcy years earlier, voiding his ability to invoke termination.

“Ross could not exercise his termination interests when he signed the notice because they remained with his bankruptcy estate,” the court wrote in the ruling, obtained and first reported by Billboard. “A debtor has no right to control property of the estate while it remains property of the estate.”

Without the support of Ross, the appeals court said the other two 2 Live Crew members did not have the legal authority to invoke termination for the band’s music: “We reverse the district court’s contrary conclusion,” the decision reads.

The ruling means that Lil Joe will continue to own the sound recording copyrights to five of 2 Live’s biggest albums, including their provocative 1989 record As Nasty as They Wanna Be, which reached No. 29 on the Billboard 200 and was certified platinum.

Richard Wolfe, lead counsel for Lil Joe Records and label owner Joe Weinberger, said he and his client were “gratified” by the ruling: “We absolutely agree with the 11th Circuit. The court properly concluded that when they sent the [termination] notice, they didn’t have the rights.”

An attorney for the 2 Live Crew members declined to comment.

The legal battle kicked off in 2020, when Uncle Luke (Luther Campbell) and the heirs of Ross and Fresh Kid Ice (Christopher Wong Won) notified Lil Joe that they planned to take back the five albums. The group’s fourth member, Mr. Mixx (David P. Hobbs), was not involved in the termination efforts.

The label, which bought 2 Live’s catalog after the group’s previous label went bankrupt in 1995, fought back, filing a preemptive lawsuit aimed at defeating the termination. But after years of litigation, a jury sided with 2 Live in October 2024, an outcome that the group’s lawyers called “a total and overwhelming victory for our clients and artists everywhere.”

Lil Joe vowed to appeal, claiming the case raised novel legal questions that the trial court had gotten wrong. And in Tuesday’s decision, the Eleventh Circuit agreed — ruling that the dispute “presents a question of first impression at the intersection of copyright and bankruptcy.”

When Ross declared bankruptcy in 2000, he never listed his potential termination right as part of his property, and thus it was never addressed during his case. But the appeals court says it was there and, because it was never dealt with, it remained in the possession of the so-called bankruptcy estate – the temporary legal entity that controls a bankrupt person’s property.

“We conclude that Ross’s interests became part of his bankruptcy estate and were held as property of that estate at the time he purported to exercise them,” the court wrote. “So he could not exercise them at that time.”

Without Ross, the appeals court said Uncle Luke and the estate of Fresh Kid Ice could not invoke termination. Under federal copyright law, for works created by multiple co-authors, a majority must sign off on such efforts — and 2 Live Crew had four members: “Two out of four interests is one interest short of an effective termination.”

The 2 Live Crew members and heirs can appeal the ruling, first to a wider panel of Eleventh Circuit judges and then to the U.S. Supreme Court. But such appeals would face long odds of success.

Though it dealt with a novel questions about a hotly-contested area of music law, the appeals court was careful to stress that Tuesday’s ruling was limited to the unique facts of the 2 Live and Ross’s case — and that it was perhaps not the final say on the matter.

“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,” the appeals court wrote. “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.”