I believe Brian is right and wrong. He is legally correct when it comes down to whose song it is. But in reality, Sarah did write that song and it belongs to her. Sarah should get at least a percentage of the profit that the song has made.
2. What should Sarah do?
Sarah can't do anything about Brian actually stealing her song. The best thing she can do is copyright her poems that she still possesses, and see if she can make one of them a hit song just as "Love Alive" was.
I agree with what you said. GOOD JOB :)
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