Copyright Assignment Agreement in India

Intellectual properties are basically creations of the mind that must be protected from others that may try to take the credit or copy the idea/product of the creator. A copyright grants the rights to things created from personal imagination to the originator of the idea. The inventor may choose to assign this copyright to someone else for fair practice by signing a copyright assignment agreement, which states the legal assignment of authority to the agreement holder to use the invention.

Read on to familiarize yourself with copyrights, copyright assignment agreement and other aspects associated with them.

What is a Copyright?

Copyright is the simple blend of two words – copy and right – and basically refers to the ‘right to copy’ anything. These are exclusive rights granted to the owner of the intellectual property due to which only the owner or anyone authorized by the owner may reproduce or make use of the intellectual property.

The need for a copyright can be simplified by considering the efforts put into creating an intellectual property. An original product is created through the sheer efforts of an individual’s mind, making it important to respect and recognize the efforts put in by the creator. A copyright safeguards the invention from being reproduced or used without the creator’s permission.

Some unique creations that may be copyrighted for protection are:

• Art
• Musical compositions and lyrics
• Computer software
• Websites
• Literature
• Poetry
• Novels
• Movies
• Architectural designs
• Graphic designs, etc.

 

Copyright Assignment Agreement

A legal draft that transfers the ownership and/or rights of a creation to someone other than the owner is known as a copyright assignment agreement. Such drafts safeguard the rights and acts as a record of work and transferring of rights of an intellectual property.

Although documentation of a copyright assignment agreement is not mandated by law, it is strongly recommended to get them notarized to avoid any potential conflicts in the future. At times, such agreements also cover works of art and writing, which results in them being referred to as ‘sales agreement for copyright.’

The protection provided by copyright assignment agreements is known as ‘Doctrine of Sweat of the Brow,’ according to which a work is given copyright protection if the creator has invested labor, skill or judgement in creating the property being protected. This protection has evolved from the judgement passed in Ladbroke v William Hill, [1964] 1 All E.R. 465 and aims to safeguard the interest of the creator, while enabling sharing of knowledge as well.

Although the protection started off as a way to recognize the rights of authors for their writings and books, with advancement in technology nowadays, things have changed significantly with people coming up with new ways to exploit this right. This plays a major role when you consider that economic rights grant the creator the right to gain economic benefits from their creations.

Section 14 of the Copyright Act, 1957 grants different rights depending upon the nature of the work, giving the owner the right to decide anything related to their creation. Besides, the owner can not only exploit the creation to generate wealth themselves but assign it to others for mutual benefits as well.

Copyright Assignment Agreement Clauses

Clauses that must be included in a copyright assignment agreement are:

• Definitions
• Assignment and Assumption
• Additional Undertakings
• Representations and Warranties
• Notices
• Third-Party Beneficiaries
• Choice of Law; Choice of Forum
• No Construction
• Amendment
• Severability
• Integration
• Counterparts

Copyright Assignment – Section 18 (Copyright Act, 1957)

• The owner of a copyright (assignor) may choose to assign his rights to someone else (assignee).
• The copyright assignment basically grants the assignee all the rights related to the intellectual property that they gain the rights to.
• Simply gaining the right to publish and sell any copyrighted work amounts to publishing right and is not the same as assignment of copyright.
• Copyright assignment refers to when the assignee becomes entitled to any right associated with an intellectual property and may be considered as the owner of the copyright in respect to that specific right.
• The assignor shall be considered an owner of the copyright as well with respect to the other unassigned rights of the concerned intellectual property.

In case the assignee passes away before the copyrighted idea comes into existence, the legal representatives shall be entitled to the assignment benefits.

Mode of Copyright Assignment – Section 19 (Copyright Act, 1957)

A copyright assignment, as stated in Section 19, shall only be valid if it is in writing and duly signed by the assignor or an authorized agent.

• The copyright assignment must identify the work, state the rights assigned, duration, and territorial extent it is valid in.
• In addition, it should also include the royalty, if any, that shall be paid to the owner or their legal heirs during the valid period of the assignment.
• Furthermore, it should state if the assignment shall be subject to revision, extension or termination on mutually agreed terms.

 

If the period of assignment is not mentioned in the agreement, it shall be deemed to last for five years.

Similarly, if there is no territorial extent stated in the agreement, the copyright assignment shall be valid in the entire region of India.

In the case of Saregama India Ltd. v. Suresh Jindal 2007 (34) PTC 522 (Cal.), the judgement recognized that the owner of the copyright may assign the copyright to anyone either partially or wholly. Be it a part or the entire assignment agreement, once the assignment is complete, for the purpose of the Act, is referred to as the owner of the copyright.

Disputes Related to Copyright Assignment – Section 19a (Copyright Act, 1957)

• As per Section 19(a), if the assignor files a complaint, the Appellate Board, after conducting necessary inquiry, may revoke the assignment due to the assignee’s failure to adeptly exercise the rights assigned to them. Any act or omission of the assignor is not attributable to such failures.
• If there is a dispute about the copyright assignment and a complaint is filed by the aggrieved party, the Appellate Board may conduct an inquiry, if necessary, and order for the recovery of any royalty owed to the aggrieved party.

Copyright Assignment by Operation of Law – Section 20 (Copyright Act, 1957)

In case the owner of the copyright dies and no will has been drafted and executed, the rights will be passed on to his personal representative.

Conclusion

Notarizing copyright assignment agreements might not be a must but is something you should definitely do to avoid any potential issues in the future. Conflicts in future may result in long legal cases that may hinder you in leveraging and enjoying the various benefits of the intellectual property you have created. Besides, having a legal draft that states any and all the details related to transactions related to your copyright shall always prove to be valuable, especially if someone violates the copyright under the claim that they have your consent to do so.


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