The British group Musical Youth, who enjoyed a flash-in-the-pan success with Pass the Dutchie, a cover of the Mighty Diamonds' Pass the Kouchie, have lost their court battle against their lawyers.

Formed in 1979 by youngsters aged 11 to 15 from Birmingham, Musical Youth had a meteoric success, with Pass the Dutchie becoming the fastest-selling single on its release in 1982: 100,000 copies went in a single day! It was even nominated for a Grammy Award.
Two albums later, there is not much left of Musical Youth, who split in 1985. Now in their forties and in dispute with their lawyers, they brought a claim against them, alleging they had been badly advised, 25 years ago, about their potential royalty income. But the judge dismissed their claim against the firm Woolf Seddon, which no longer exists today.
This legal fight began in 2004, when they sued Woolf Seddon for breach of duty, for failing to secure a "separate copyright" for their song. The claim was rejected by the Court, which considered it an abuse of process.
Is it an adaptation or a cover? That is the heart of the case. The former members argue the first, considering Pass the Dutchie sufficiently original to enjoy a separate copyright. But the judge decided otherwise, ruling that it was indeed a cover of the Mighty Diamonds, dismissing their claim and thereby cancelling any right to royalties.

Source: The Guardian