| A PRATICAL GUIDE ON COPYRIGHT CLEARANCE FOR MULTIMEDIA
PRODUCERS
3. Who owns the rights?
Provisions
respecting first ownership
The
principle
The exceptions
Provisions
respecting joint authorship
Provisions
respecting the transfer of right
Ownership of rights in
practice, in Canada and abroad (publishers, collective societies, art banks, the majors,
etc.
Music
Cinematographic
works
Artistic works
Literary works
Informatics
3.
Who owns the rights?
Provisions
respecting first ownership
Provisions respecting the transfer of right
Ownership of rights in practice, in Canada and
abroad (publishers, collective societies, art banks, the majors, etc.
Provisions respecting first
ownership
The author is the first owner of the rights on his work. Performers
are the first owners of the rights on their performances and sound recording producers are
the first owners of the rights on their sound recordings.
The copyright on a work created by an employee in the exercise of
his employment belongs to the employer, unless otherwise stipulated in the contract
between them.
If the work is an article or another form of contribution to a
newspaper, a magazine or a periodical, in the absence of any agreement to the contrary,
the author has the right to prohibit its publication outside a publication of the same
type.
In the case of engravings, photographs and portraits executed to
order, the person who issued the order is the first owner of the copyright.
Photographs are covered by special provisions. The owner of the
original photograph, negative or any other original product, at the moment it was made,
whether it is an individual or a corporation, is considered to be the author.
Works produced by the collaboration of two or more authors
in which the contribution of one author is not distinct from the contribution of the other
author or authors are "works of joint authorship" within the meaning of the Act.
In such cases, the various joint authors are joint first owners of the rights.
The Act defines a "collective
work" as any work written in distinct parts by different authors, or in which works
or parts of works of different authors are incorporated. This category includes, among
others, encyclopaedias, dictionaries and yearbooks, newspapers, reviews, magazines and
other periodical publications. The person who compiled the works contained in the
collective work owns the rights in the compilation; whereas, the rights in the various
works that it contains are owned by their respective authors, unless they have been
assigned.
Provisions respecting the transfer of
right
Copyrights may be transferred by assignment or by
exclusive or non-exclusive licence. These concepts are relatively complex. In simplified
terms, assignment is to some extent equivalent to a sale while a licence is similar to
rental or right of use.
Consequently, with the exception of moral rights, rights that are
assigned by an author no longer belong to him. They are henceforth the property of the
person who acquired them. This person can exploit them and control their use by others,
subject obviously to the conditions negotiated between the parties. In the case of a
licence, ownership of the rights remains in the hands of the person who granted the
licence but, in the case of an exclusive licence, only the owner of the licence can
exploit the product, even to the exclusion of the person who granted the licence. In
practice, an exclusive licence is very similar to an assignment. The granting of
non-exclusive licences makes it possible for several people to exercise the same rights
simultaneously within the same territories.
The Act stipulates that the person who has obtained an
assignment or an exclusive licence may institute proceedings if the rights he has acquired
are infringed.
Take care, however! The Act specifically
states that only assignments and licences in writing, signed by the owner of the rights,
are valid. This is why a producer who wishes to incorporate a work into his multimedia product must acquire the right to
do so in writing. It is also important to pay attention to the wording of this document
because assignments and licences can be restricted in many ways.
As a matter of fact, the rights on a work are divisible by
territory, term, medium, market sector and the scope of the assignment.
This means that the owner of the rights in a work can assign all his
rights, in their entirety, to a single person for the entire world, or he can assign his
rights or grant licences with respect to certain specific rights, under specific
conditions and for specific territories.
For example, the author of a literary work could assign the right or
grant a licence to one publisher to publish his work in French, in the form of a book, in
all Francophone countries, and assign the right or grant a licence to another publisher to
publish an English version in the rest of the world. Although the copyright is in effect
for fifty years following the death of the author, an assignment or a licence may be in
effect for only five years and may be renewable for the same period if, for example,
certain sales figures are reached. The same author could grant or concede a separate
license for a movie adaptation of his book to a film producer and cede the latter the
right to grant licences to third parties for the manufacture of derivative products, such
as an educational game on CD-ROM.
It should also be noted that an assignment in writing couched in
very general terms that does not list specific rights will, as a general rule, be
interpreted in favour of the person who assigned the rights, which would mean that modes
of exploitation that could not have reasonably been foreseen at the time of assignment
will probably be excluded from it.
| A golden rule you
should keep in mind: The copyright on a work always belongs to the author, whether he was
working on his own, on commission, freelance, on contract, as a consultant or pro bono ~
with the exception of works created by an employee or consisting of a photograph,
engraving or portrait made to order ~ unless the copyright has been transferred to someone
else by means of a signed document. |
Ownership of rights in practice,
in Canada and abroad (publishers, collective societies, art banks, the majors, etc.
The exploitation of a work protected by copyright
does not usually involve one person only. Each of the stakeholders who participated in the
making, publication and distribution of a work acquires a portion of the rights, either by
assignment or by licence. Each domain, whether it be music, film, literature, visual arts
or informatics, has its own business practices in this respect. For each of these domains,
we will summarize the practices in respect of ownership and administration of the rights.
A table listing the main collectives, including how to reach them and their activities by
domain, is attached.
Ownership
In the music domain, the rights of various categories of owners
overlap and there is a separate mechanism for administering each of the principal rights.
The copyright for a song is first owned by the author and, if these are not one and the
same person, the lyricist and the composer. In most cases, these persons will have
assigned their rights to a collective. These rights may be shared with a music publisher.
The sound recording producer, for his part, usually owns all the rights to the sound
recording (the "master") that he has made but not the rights to the works that
are included (i.e. music).
Performers, for their part, will have signed a production contract
with the producer of the sound recording and, if the contracting parties are members of
professional artists' and producers' unions respectively, the contract will reflect the
terms and the conditions set out in the collective agreements negotiated with those
unions.
Administration
Certain rights in the music domain are administered by
collectives. In Canada, the Society of Composers, Authors and Music Publishers of Canada (SOCAN) administers rights in public
performance and the communication to the public by telecommunication on behalf of music
authors and publishers, for music played on radio and television, in discotheques, bars,
restaurants, and in any other public place. This administration does not involve
case-by-case negotiations. It consists in establishing general rates approved by the
Copyright Board for each user category. In the case of music broadcast over the Internet,
a rate proposal for royalties has been submitted to the Copyright Board but the Board had
not rendered its full decision on the issue when this Guide was being prepared.
In Canada, most of the time, administration of the right to
reproduce musical works is under the jurisdiction of the Society for Reproduction Rights
of Authors, Composers and Publishers in Canada (SODRAC)
or the Canadian Musical Recording Right Agency (CMRRA).
Owners of rights in musical works assign their rights to SODRAC. Where multimedia works
are concerned, SODRAC, like SOCAN, has submitted a rate proposal for reproduction of music
on the Internet. However, these rates would not apply to reproductions that involve an
adaptation of the work or the synchronization of the work with other content, as in a
multimedia product. In such cases, SODRAC acts as the intermediary to facilitate the
negotiations between the owners of the rights and the users, and grants the final licence
subject to the conditions negotiated by the parties. CMRRA acts as the agent for music
publishers and does not have the power to grant licences on their behalf. It does,
however, provide information on requests about the owners it represents.
For administration of their rights, sound recording producers are
represented by theSociété collective de gestion des droits des producteurs de
phonogrammes et de vidéogrammes du Québec (SOPROQ),
where most independent producers in Quebec are concerned, and by the Audio-Video Licensing
Agency (AVLA), in the case of other producers,
including the "majors." These agencies are authorized to grant user licences on
behalf of their respective members.
Ownership
In the audio-visual sector, subject to certain conditions set
out by creators, most of the stakeholders who participated in the creation of the work
usually assign the right to exploit the film rights to the producer. In Quebec, the
producer will have obtained an exclusive licence to exploit the work under the terms set
out in the collective agreements of the Société des auteurs, recherchistes,
documentalistes et compositeurs (SARDEC)
and the Association des réalisateurs et réalisatrives du Québec. For any music he uses,
he will have to deal with SOCAN, SODRAC or CMRRA.
Administration
Rights in films are usually administered by the film producers
themselves or authorized distributors.
Ownership
Rights in paintings and other artistic works may be owned by the
artists or be assigned to distributors, depending on the type of work.
In the case of artistic works, one must generally contact the
original author (painter, sculptor, engraver, etc.). If the reproduction is made from a
photograph of the artistic work, one must also contact the photographer.
Where photographic works are concerned, we have already seen that
the ownership rights are complex. If the photograph has been ordered, the entity that
ordered it has to be located. Otherwise, the photographer is the owner, unless he has
assigned his rights to a publisher or a distributor. Photographers may delegate the
management of their rights - or assign their rights - to image banks that provide
interested parties with catalogues of photographs and illustrations whose rights can be
cleared through purchase of a licence that authorizes certain types of uses. These
catalogues may be available in hard copy only or in electronic form. Some image banks do
not permit reproduction of their catalogues on the Internet because of the risk of
unethical reproduction and degradation of quality.
Administration
There are collective societies that administer the rights on
photographs - the Electronic Rights Licensing Agency (TERLA), and on artistic works - Canadian Artists
Representation Copyright Collective (CARFAC),
SODRAC and the Société de droits d'auteur
en arts visuels (SODART). These agencies are
all authorized to negotiate specific licences on behalf of their respective members.
Ownership
In most cases, all rights in literary works such as books are
assigned to the publisher, except that in some cases the author reserves to himself film
adaptation rights and the rights on derivative products produced on media other than the
book.
Administration
In the Francophone market, COPIBEC and, in the Anglophone market, the
Canadian Copyright Licensing Agency (CANCOPY)
are collectives that administer the rights of authors and publishers of books. In addition
to general licences that the agencies negotiate for the reprographic reproduction of works
in their respective repertories in educational institutions, COPIBEC and CANCOPY may
negotiate on behalf of their members and grant individual licences to applicants.
Ownership
In the informatics domain, rights in software belong to the
developers, unless they have been assigned elsewhere such as to the person or entity that
had the customized software developed. They usually retain the rights themselves whenever
the software is distributed by intermediaries.
Administration
As a general rule, the rights on software are exercised under
non-exclusive licences that prohibit reproduction and adaptation of the software on all
media (except for a backup copy), without the authorization of the producer. A multimedia producer who uses animation or
other shrink-wrapped software sold under licence and purchased in a store or obtained as
shareware off the Internet must merely respect the terms of the licensing agreement
included with the software. If, however, he wishes to modify the software in ways not
covered by the licensing agreement, he must obtain prior authorization from the owner of
the rights.
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