4.8

Google Reviews

Need Help? Contact An Australian Business Lawyer Today 1300 003 077
Search
Close this search box.

Copyright Ownership and Licenses

Owning copyright gives the owner a right to grant licences to that copyright. A person who receives certain rights may also possess the right to grant a license. Copyright ownership and licensing can be complicated.

The Copyright Act 1968 (Cth) governs copyright in Australia. Copyright is the legal protection for creators of books, plays, music, art, movies, and recordings. It also extends to software code, engineering drawings and other written creations of the mind.

Copyright can be an area of law that is confusing. In this article, our copyright lawyer, explains who owns copyright. The article talks about protecting copyright and choosing the right words for a copyright license.

terminate employment contract

The Copyright Act

Copyright owners have special rights under the Copyright Act 1968. They can control how they use their work, earn money from it, reproduce it, and transfer ownership to others.

Copyright can provide legal protection by giving the owner legally enforceable remedies where the work is copied and used without permission. A person using copyright without consent infringes the owner’s copyright and may become liable for damages. A copyright lawyer can help creators understand what legal remedies they may have.

A creator owns the copyright of the creations. For example:

  • an author in the case of literary, dramatic, musical and artistic works;
  • a producer in the case of a film or sound recording; and
  • a broadcaster in relation to a broadcast.

 

There can be multiple owners of creations. For example, in cases where

  • there are multiple authors
  • the material was created under an employment relationship
  • the material was created under a contract
  • the Crown first published the material

 

Australian law does not mandate copyright registration because copyright protection in Australia is free and automatic. The copyright owner benefits from copyright protection and exclusive rights as soon as they create the work.

When you make art, write a story or record music, it is protected by copyright under the Copyright Act 1968.

When a creator records their work, they become the copyright owner. They do not need to take any additional steps to protect it. You don’t have to register, apply, or pay for copyright. It automatically exists in your work once you create it.

Moreover, there is no need to put the copyright symbol © on your work. However, doing so is preferable because:

  • the copyright symbol reminds others that your work is copyrighted and may discourage unauthorised use
  • other people can reach out and ask for your permission to use your work

 

Other measures to protect your work include:

  • stating the year for which the copyright applies
  • stating, “All rights reserved.”

What does copyright protect?

Copyright protects creative material. Two categories of material protected by copyright include works and subject matter other than works.

Works include literary, dramatic, musical, and artistic works. In comparison, subject matter other than works includes sound recordings, films, broadcasts, and published editions of works.

Copyright law does not provide legal protection for every kind of work. There are some things copyright does not protect, for example:

  1. material that is in the public domain
  2. material outside the scope of copyright
  3. material protected by other fields of intellectual property law

 

If you would like to understand what else copyright does not protect, talk to a copyright lawyer.

What copyright protects

Copyright protects the creator’s rights, being economic rights and moral rights.

Economic rights concern the owner’s ability to make money from the work and include:

  1. reproduction and making copies of the work
  2. distributing copies of the work
  3. performing the work in public
  4. broadcasting or other communication of the work to the public
  5. translating the work into other languages and editing the work

Moral rights are different to copyright

Moral rights, on the other hand, are independent of financial gain and create special rights, which include the following:

  • right to paternity: the right to anonymity of your work, including
  • right to integrity: the right to object to changes in your work that harm your reputation or to prevent your work from being used unlawfully

Copyright does not protect ideas

As any intellectual property lawyer will advise, copyright protects the expression of ideas, not the ideas themselves. Because there is no copyright in an idea. Copyright must be recorded in a tangible form – written or otherwise.

The law protects original works

Copyright protects original forms of expression. Work must be ‘original’ to receive copyright protection. This means that the work:

  • should not be copied or plagiarised, but created with the author’s skill and effort
  • does not have to be new, but it has to be original in the sense that it was not copied from another source
  • must be sufficiently unique to retain the protection of copyright (for example, in an engineering drawing, a typical door detail that is used across the industry will not receive the benefit of copyright protection)

A contract can transfer ownership of copyright

Creations are automatically the property of the copyright owner under the Copyright Act 1968 (Cth). Copyright is an intangible asset that gives the author similar rights as other property owners. In fact, copyright can be bought and sold just like other forms of property.

Copyright ownership can be transferred to a third party under a contract known as the assignment of intellectual property. The person who receives the transfer of the copyright becomes the new owner. Intellectual property agreements should be prepared by a copyright lawyer.

Copyright is something different from the tangible object that is the subject of copyright. Buying an item does not mean the new owner of the product becomes the owner of the copyright in that product.

The transfer of the product does not necessarily cause a transfer of the copyright. Creators can sell their work but retain their ownership of it.

An example of transferring copyright

For example, a painter sells a painting.

The painter retains the copyright in the visual representation of the art (so that the new owner of the painting cannot replicate and sell copies of the painting) even though the painter no longer owns the canvas that displays the artwork.

In other words, creators still have the right to reproduce, publish, or communicate the work that they own the copyright in (and to grant those rights to others). No one can use the copyright without the creator’s permission.

It is important to be clear about what rights you own and retain in the works you create.

Contracts frequently outline the sale, transfer, or licensing of rights to copyrighted works to the other party. A copyright lawyer or a contract lawyer should prepare these documents.

A contract can grant a licence to use copyright

Creators can licence the copyright they own to a third party, known as the ‘licensee’. With a licence, the third party can exercise some or all the exclusive rights of a copyright owner.

They can use the copyright as described in the licence, but the copyright owner remains the ultimate owner of the work.

There are two main types of licences:

Exclusive licence

The licensee is the only person allowed to use copyright in a specific manner. The copyright owner is barred from using the copyrighted material itself or from allowing others to use that copyright. An exclusive copyright licence is similar to ownership and the difference between an exclusive copyright licence and ownership will depend upon the wording of the intellectual property licence

Non-exclusive licence

The licensee can use the copyrighted material within the scope of the licence. The copyright owner is free to use the copyrighted material itself and to sell and authorise others to use the copyright

Generally, when a copyright licence is granted, a copyright licence agreement or intellectual property agreement is signed. An intellectual property agreement outlines important matters such as how copyright can be used, for how long, in what territory, and who else may use it. Any agreement that deals with something as important as copyright should be prepared by a copyright lawyer.

Micaela Diaz Associate Lawyer Micaela advises our independent contractor clients and provides commercial legal advice.

An intellectual property agreement should also state:

  • who is the owner of the copyright
  • to whom the right to use the copyrighted work is granted
  • how the licensee may use the copyrighted material
  • whether there will be a distribution of profits if the work generates income during the licencing period
  • whether the licensee can transfer the licence to others (sublicense)
  • how the licence can be revoked by the owner
  • how long the licence will last

 

Like most contracts, a licence may be oral, implied, arise from the conduct of the parties, or be in writing. In other words, you do not always have to enter into a written licence.

However, as any intellectual property lawyer will tell you, entering into a written licence is advisable so that both parties have a written document to refer back to in the event of a dispute. It also ensures an objective record of what the parties agreed to. Without a written license, it may be hard for both parties to show the terms or existence of the license.

By ensuring an intellectual property licence is prepared by a qualified intellectual property lawyer, the owner can be assured that they retain appropriate ownership and rights to the work.

Sublicence to use copyright

A sublicense is a licence granted by the licensee to a third party and extends some rights or privileges of the licensee to someone else. In other words, in a sublicense, you can grant a licence to another person to use the copyright. Subsequently, the person holding the licence gives some other person a sub-licence to use the same copyright. It’s important to talk to a copyright lawyer about sublicensing because it can weaken the rights of the copyright owner.

Using sub-licencing, you can maximise the value of a copyright licence. The licence holder can enable more effective and efficient distribution, provide greater market acceptance, and generate more licencing revenue.

Sublicensing requires prior written permission from the owner. This can be set out in the terms of the original copyright licence prepared by a copyright lawyer.

For example, the licence may state ‘The owner grants the licensee the unfettered ability to grant sublicenses on the same terms as this copyright licence’.

However, it may be impractical to permit every sublicense if the nature of the copyrighted work means that there will be a large volume of licences granted. Here Copyright Management Companies can be of some help.

Copyright Management Companies can help you licence your copyright to third parties. They will negotiate your licences, collect royalties, retain a portion of the fees collected as a commission, and then distribute the remainder to the owner.

When signing up with a collecting society, the owner transfers the rights to:

  • transfer the right to enforce copyright in the work
  • sell non-exclusive licences to use the work
  • collect and distribute royalties for work sold
  • entrust other collecting societies (for example, in other countries) to collect royalties concerning the work

A licence can be implied

An implied copyright license is created by law without an actual contract between the parties. The licensee gets the right to use the copyrighted work. But their right may be limited.

An implied licence arises when a copyrighted work is created by one party on behalf of another. For example, suppose you commission someone to create a work for a specific purpose, such as an illustration for a book.

At the same time, the artist may own the copyright to the illustration. In this case, you have an implied right to use the illustration in the manner and for the purpose agreed upon when you commissioned it.

Case law relating to copyright ownership

In Hadley v Kemp, it was held that two or more people can own copyright jointly if they are joint authors of copyright material. People are joint authors if their contribution to the work is inseparable from the contribution of each other.

Being recognised as a joint author or co-author requires a person to provide a “significant and original” contribution with the intention that their contributions will be merged into the copyrighted material.

In Bourke v. Filmways Australasian Distributors Pty Ltd, the Court looked at the rights of a film producer.

The court determined that the producer of a film had an implied licence from the writer/director of the film that allowed the producer to distribute the film in circumstances where the parties did not have a written agreement that assigned the copyright in the film to the producer. The producer had an oral agreement with the writer/director that included the fees that the producer was to pay the writer/director.

In De Garis v Neville Jeffress Pidler Pty Ltd, the Court looked at the rights of media outlets. It was found that freelancers and journalists who submit content to media outlets of which they are not employees, generally grant an implied licence for the media outlet to publish that content.

If you need legal advice regarding copyright protection, you should contact a copyright lawyer.

Frequently asked questions

What is copyright ownership in Australia?

Copyright ownership in Australia refers to the legal rights granted to creators and authors of original works, such as literary, artistic, and musical creations. These rights provide creators with exclusive control over the use and distribution of their works for a specified period. Copyright ownership automatically arises upon the creation of the work, without the need for formal registration.

In Australia, the duration of copyright protection varies depending on the type of work. Generally, for literary, artistic, and musical works, copyright lasts for the life of the creator plus 70 years. For films and sound recordings, copyright protection lasts for 70 years from the date of creation or first publication. Understanding the duration is crucial for determining when a work enters the public domain.

Yes, copyright in Australia can be transferred or licensed. Transferring copyright involves the permanent transfer of ownership from the creator to another party. Licensing lets the creator keep ownership but give certain rights to others for a specific time and purpose. To make both transfers and licenses legally enforceable, you must document them in writing.

About the Author

Farrah Motley
Director of Prosper Law. Farrah founded Prosper online law firm in 2021. She wanted to create a better way of doing legal work and a better experience for customers of legal services.

Contact an Australian Business Lawyer Today.

Contact us for a free consultation
Contact Us For A Free Legal Consultation
About Prosper Law

We provide legal advice to business and individuals across Australia, no matter which State or Territory you are located. Our easy-to-access, online legal services mean that you can talk to our lawyers wherever you are, at a time that suits you.

4.5

Google Reviews

Get Your Free Guide Now
Need Legal Assistance?

Don’t hesitate – reach out for your free legal assistance today. Your peace of mind is just a click or call away!

Check Out Our Latest Blog Posts

contract drafting
Intellectual Property

Copyright Orphan Works Guide by Lawyers online

Publishing copyrighted works without the identity of the accused being revealed has become rampant nowadays. Because of this, there are problems with getting permission and use of materials without the

businessman giving contract to woman to sign
Intellectual Property

Intellectual Property Licence Agreement

An intellectual property licence agreement describes how and when a person is granted rights to use intellectual property. The licence agreement may also set out the purpose for which IP