How to Start a COPYRIGHT-LICENSING

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Overview of Copyright Licensing

Copyright Licensing allows a licensor to grant permission to a licensee to use the copyrighted work, protecting the licensee from infringement claims or unauthorized use by the licensor. The copyright owner can provide a license, transferring some or all of their rights to others for commercial purposes, usually in exchange for compensation. Unlike an assignment, where the assignee becomes the owner of the rights transferred, a license only grants specific rights under the terms outlined in the licensing agreement, while the original owner retains ownership. A license can be either non-exclusive or exclusive.

Different Types of Copyright Licensing

There are two different types of Copyright Licensing, and you can check the same below:

  1. Voluntary License: This license is covered under Section 30 of Indian Copyright Act, which defines Voluntary Licensing as “The Copyright owner in any existing work or the potential Copyright owner in any future work may allow any interest in the right by license in writing signed by them or by a duly certified agent. Therefore, the Copyright owner of an existing work or a potential Copyright owner of a future Copyright can issue interest in the right by way of license; in the case of Copyright of future work, the license will come in force only when the work comes into existence.
  2. Compulsory License: This license is covered under Section 31 of the Indian Copyright Act. It's a term used for the statutory license, which gives an exclusive right to do an act without the prior permission of the Copyright owner. Section 31 of the Copyright Act provides for Compulsory Licensing of copyrighted work, which is withheld from the public.

In case a Copyright holder owner has refused to:

  • Allow or republish for the work republication or has refused to permit the performance of the work in the general public due to which the work is withheld from the public;
  • Allow the communication of the work to the public through the broadcasting of such work, or in the case of sound recording, the work recorded in such recording on terms which the complainant considers reasonable.

The Copyright Board can, after providing a reasonable opportunity to the Copyright holder to be heard, subsequently conducting an investigation and being satisfied, may order the Copyright Registrar to issue a Compulsory License to the complainant so that he or she can republish the work, broadcast or communicate the work to the general public, etc.

Copyright Principles Regarding Licensing

Copyright owners hold various exclusive rights over their works, including distribution, reproduction, display, public performance, and the creation of derivative works. For sound recordings, this also includes digital transmission. In the case of fine art, copyright owners retain moral rights, which allow them to prevent changes, revisions, or distortions of their work. One of the main benefits of copyright is the ability to prevent others from infringing on these rights.

However, in some cases, a copyright holder may find it beneficial, either financially or otherwise, to grant someone else the authority to use one or more of these rights. Licensing allows copyright holders to do this without giving up ownership, which is different from an assignment, where rights are fully transferred to the assignee.

Compulsory licensing, which is often used to make works accessible to the public while ensuring the creator benefits financially, is another important concept. In such cases, the Copyright Registrar may issue licenses even if the copyright owner does not wish to grant permission, ensuring the work remains available to the public.

Licenses can be exclusive or non-exclusive:

  • Exclusive License: This grants the licensee the right to exclude others, including the copyright owner, from exercising the rights specified in the license.

  • Non-Exclusive License: The copyright owner retains their rights even after granting the license to another party. The terms, such as duration, are defined in the license agreement, and the owner may still use the work or grant licenses to others. This type of license may also allow a publisher to sell unsold copies after the license expires.

Additionally, implied licenses can arise from actions or conduct, such as when a person submits a letter to a magazine or news outlet and grants them the right to publish it in exchange for royalties.

What is a Copyright License Agreement?

A Copyright License Agreement outlines the terms of the contract between the licensor (the copyright owner) and the licensee. A comprehensive agreement typically includes:

  • The identities of the parties involved
  • The name and description of the copyrighted work
  • The type of license being granted
  • Payment terms and/or royalty structure
  • A clear statement of copyright ownership
  • Any restrictions related to the license, such as duration, geographic scope, etc.
  • Conditions under which the agreement can be terminated or cancelled
  • The specific rights being licensed