Copyright is a valuable and exclusive form of Intellectual Property Right (IPR) designed for creative individuals worldwide. Despite lacking physical presence, it holds substantial proprietary value and can be transferred or disposed of. In today’s digitally connected world, copyright awareness has surged due to the widespread expansion of media and communication.
During the expansion of a business, companies seeking to acquire properties (such as software or copyright) to fuel their growth must ensure that the seller possesses rightful ownership of the chosen assets. Transfer of Copyright is only possible when the owner obtains Copyright Registration first. A well-drafted Copyright Transfer or assignment agreement is pivotal in facilitating a smooth transition of ownership in both scenarios. For more detailed information on CopyrightTransfer, this blog shall provide a complete guide.
Understanding Copyright Transfer
A Copyright owner holds the exclusive right to transfer their Copyright to any individual or third party. The outcome of this transfer is that the assignee gains all the rights associated with the Copyright for the specified work. However, it’s crucial to note that merely granting the right to sell or publish the copyrighted work does not constitute a full transfer of Copyright; it only pertains to publishing rights.
The Copyright assignee assumes the rights related to the Copyright, essentially being treated as the Copyright owner for those specific rights. Simultaneously, the assignor retains the status of the Copyright owner for any rights that haven’t been transferred. In the unfortunate event of the assignee’s demise before the work is created, the legal representatives of the assignee are entitled to the benefits of the transfer of Copyright.
Mode of Copyright Transfer under Section 19
The mode of transfer of Copyright, as outlined in Section 19, imposes specific requirements to ensure the validity of Copyright transfer:
1. Written and Signed Agreement:
A Copyright Assignment or Transfer must be in writing and duly signed by the assignor (the original Copyright owner) or by an agent or representative duly authorized by the assignor.
2. Identification of Work:
The transfer agreement should clearly identify the work for which Copyright is being transferred. It should specify the type of rights being assigned and the duration and territorial scope of the transfer.
3. Royalty Specification:
If any royalties are payable to the author or their legal representatives during the period of the transfer, the agreement must outline the exact amount or terms of calculation.
4. Flexibility Clause:
The transfer agreement should incorporate a flexibility clause to allow for potential modifications, extensions, revisions, or terminations and this should be mutually agreed by all parties who are involved.
5. Default Time and Regional Extent:
In the absence of explicit terms within the transfer agreement, default provisions automatically apply to fill the gaps. If the duration of the transfer is not clearly outlined, it is automatically considered valid for a standard period of five years from the date of the transfer. Similarly, when the regional extent of the transfer is not specified, it is presumed to cover the entire territory of India. These default provisions serve as a foundational framework to offer clarity and guidance in situations where explicit terms are absent within the agreement.
Section 19(8) underscores that the transfer of Copyright against the terms and conditions set by a Copyright society (where the original creator is a member) shall be considered void.
Additionally, Section 19(9 & 10) establishes that the transfer of Copyright for creating cinematograph films or sound recordings does not impede the creator’s right to claim an equal share of the royalties and consideration for the use of their protected work. This ensures that creators receive their fair share of compensation, even when they transfer their Copyright for such purposes.
Copyright Transfer Disputes Under Section 19 (a)
Section 19(a) of the Copyright Act grants the Copyright Board the authority to address disputes arising from Copyright transfers. The Dispute Resolution Process is as follows:
1. Complaint and Inquiry
The first step in resolving disputes related to Copyright transfers involves the filing of a complaint by the assignor with the Copyright Board. This complaint addresses the inadequate use of the transferred rights by the assignee. Subsequently, the Copyright Board initiates an inquiry to gather all relevant details and assess the circumstances surrounding the complaint.
2. Revocation of Transfer
Following a thorough inquiry, if the Copyright Board deems it appropriate, they have the authority to revoke the transfer of Copyright. Revocation entails the reversion of Copyright rights back to the original owner, the assignor. This action is taken when the assignee’s failure to effectively utilize the Copyright rights is confirmed.
3. Resolution of Disputes and Appellate Board
In cases where disputes persist regarding the transfer of Copyright, either the assignor or assignee can file a complaint with the Appellate Board. This specialized board then conducts an inquiry into the matter, gathering necessary information and evidence. Subsequently, the Appellate Board issues an appropriate order based on their findings. This order may encompass directives related to the recovery of any royalties that may be owed.
Section 19(a) ensures that the transfer of Copyright is meaningful and purposeful. If the assignee does not adequately utilize the rights assigned to them, and it is not due to any fault of the assignor, the Board can take corrective measures to protect the interests of both parties and ensure the Copyright is effectively utilized.
Copyright Transfer by Operation of Law (Section 20)
Section 20 of the Copyright Act addresses the scenario of transfer of Copyright by operation of law in the event of the Copyright owner’s demise:
1. Copyright Passing to Personal Representative: If the Copyright owner passes away, the Copyright automatically passes on to their personal representative as part of their estate, given that no will has been executed specifying alternate arrangements.
2. Inheritance of Copyright Under Bequest: If an individual is entitled to Copyright through a bequest (inheritance) and the work has not been published before the testator’s death, the Copyright shall be considered to have been transferred to that individual. This assumes that the testator was the Copyright owner immediately before their demise.
This provision ensures a smooth transition of Copyright ownership in case of the original owner’s death, providing for the transfer of rights to the appropriate inheritors or personal representatives as per legal guidelines or any will in place.
Final Thoughts
Copyright transfer is pivotal in intellectual property, especially for creators of artistic works. The Copyright Act of 1957, amended in 2012, is the guiding framework in India, fostering awareness in our digital age. Copyright_transfer, also known as copyright assignment, empowers creators to legally transfer ownership and property rights of their works to others. Comprehending this process is vital, enabling informed decisions about intellectual property.
Moreover, the Copyright Act addresses potential disputes, ensuring equitable resolutions safeguarding both parties’ interests. Understanding transfer of Copyright empowers creators in today’s digital environment, securing their financial interests and ensuring a lasting legacy through their creative works.
