NFIB

Ownership of Copyrights
03/ 12/ 2002


Who owns the copyright to a graphic design, an article or an architectural rendering, the freelancer or the requesting company? In today's Workshop, Jeffrey Moses explains that ownership is often subject to the parties involved.

* While companies legally own products created by steady and work-for-hire employees, a 1989 Supreme Court decision found that "freelancers" may retain copyright ownership.

* What determines "work-for-hire" and "freelance" status? Often the courts decide based on the amount of supervision given to a worker (directions, monitoring progress and time scheduling, for example). The location of the work, either on company grounds or at home, also influences its status.

* The guidelines for freelancers are, at best, vague. In virtually any situation, both the company and the freelancer could claim copyright ownership. Companies and freelancers should therefore determine copyright ownership and construct a contract in advance. Such a document should specify who owns the copyright, who was paid for the work and how future sales and royalties will be distributed. The contract may also address future work and payment issues. For example, when a publishing company purchases a book, additional editing and writing may be necessary later.

* Joint ownership occurs when more than one person creates a product. Once again, specify details such as work responsibility, payment, royalties and ensuing work before beginning the project.

* A company may wish to retain all rights to hired-out works. The business should draw up a contract before assigning projects so that all parties understand the terms of copyright ownership. Such work may include computer programs and manuals, advertising, books, scripts and poems, works of art such as original illustrations, graphic designs and book covers, music, animation and architectural renderings.

* All parties should sign and date contracts, and attorneys should draw up documents when considerable money is involved.

* Often, it's difficult anticipate the success of your product, so detail all percentages in writing before the product is launched.

* Certain works, such as specific business plans, architectural designs and personalized hardware or software manuals, are usually owned by a company. It is generally understood that these works fall under the category "works-for-hire."

* Here are a few books that cover copyright guidelines.

1. "The Copyright Book: A Practical Guide" (Copyright Book: A Practical Guide, 5th Ed), by William S. Strong, $34.95, MIT Press.

2. "Patent, Copyright & Trademark: A Desk Reference to Intellectual Property Law" by Stephen Elias, Lisa Goldoftas (Editor), $24.95, Nolo.com.

3. "Digital Property" by Lesley Ellen Harris, $11.95,McGraw-Hill Ryerson Ltd.

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