Transcript ORIENTATION PROGRAM ON INTELLECTUAL PROPERTY FOR MANAGEMENT STUDENTS OF INDIAN INSTITUTE OF MANAGEMENT (IIPM) Geneva, Switzerland, 2006

ORIENTATION PROGRAM
ON INTELLECTUAL PROPERTY
FOR MANAGEMENT STUDENTS
OF
INDIAN INSTITUTE OF
MANAGEMENT (IIPM)
Geneva, Switzerland, 2006
Companies as
Owners and Users of
Works protected by
Copyright & Related
Rights
Lien Koglin-Verbauwhede
Consultant, SMEs Division
World Intellectual Property Organization (WIPO)
This Presentation
1 – What is Copyright?
2 – Why is Copyright relevant?
3 – How to Protect?
4 – How to Generate Income?
5 – Using Works Owned by Others
PART 1
WHAT IS COPYRIGHT ?
What is Copyright
 Grants authors, composers, and other creators
legal protection for their literary and artistic
creations (‘works’)
 Gives ‘bundle’ of exclusive rights, which allow
owners to control the use of their original works in
number of ways and to be remunerated
 Also provides ‘moral rights’ which protect the
author’s reputation and integrity.
Copyright Works
Films
Literary
Dramatic
Photographic
Music
Artistic
Copyright and Business
• Computer programs
• Content on websites
+ ‘look and feel’
• Product catalogs
• Artwork and text on product literature
Copyright and Business
•Artwork and text on
labels and packaging
• Marketing and
advertising materials
(on paper, billboards,
websites, accounting forms)
Copyright and Business
• Sales training program captured on
videocassette
• Newsletters
• Instruction sheets, operating manuals for
machines, maintenance manuals
• Technical drawings, diagrams, maps
• Some types of databases
A Bundle of Exclusive Rights
Economic Rights
– Reproduce or make copies
– Distribute to public
– Sell, rent*, lend*
– Display or perform to public
– Adapt and translate
– Make available on the Internet
Assignment or License
Moral Rights
– Right of paternity:
acknowledgement
– Right of integrity: object
against mutilation and/or
distortion
Moral Rights cannot be
transferred
* Generally applies only to certain types of works: Cinematographic works, musical
works, or computer programs.
What are Related Rights?
Rights of
performers
•
•
•
•
•
actors
musicians
singers
dancers
or generally
people who
perform
Rights of
producers of
sound recordings
(phonograms)
Rights of
broadcasting
organizations
in their recordings in their radio and
(cassette recordings, television programs
compact discs, etc.) and in Internet
broadcasts such as
‘podcasts’
Example, in the case of a song
by Barry White …
Copyright protects
the music of the composer and
the words of the writer, and ...
Related rights would apply to ..
the performances
of the musicians
and singers who
perform the song
Can't Get Enough/Just
Another Way to Say...
(1973/75,IMS Records)
the sound
recording of the
producer in
which the song
is included
the broadcast
program of the
organization
that produces
the program
containing the
song
Copyright
• Term of protection:
Generally speaking:
- Life author + 50y
- Exceptions
• Automatic
• Copyright subsists
worldwide: Berne
Convention
heirs
So why register?
But national
law applies
What is not protected?
• Ideas or concepts
• E.g., instruction manual that describes system for
brewing beer
• Facts or information
• Historical, news, scientific, biographical
• E.g., biography
• Government works
• Statutes, judicial opinions, etc
What is not protected?
• Names, titles, slogans, short phrases
• But advertising slogan may be protected
under TM or UC
• Artistic logo may be protected under CR
Nike
World Police and Fire Games, Québec
What is not protected?
• Works of applied art ?
• Protection differs greatly from country to country
• Overlap with industrial designs
• Sportman invents technology for better
shock-absorption for running shoes.
• Advertises on his website. Describes in text
what the technology is about.
• Competitor sees website and makes running
shoes with the same absorption technology.
PART 2
Why is Copyright Relevant
to Your Business?
1. Control of Commercial Exploitation
Exclusivity over the use of copyright protected works
helps business to gain and maintain competitive edge
in the marketplace
– computer programs
– advertisements
– instruction manuals
– musical compositions
– photographs
– catalogs
– video games
– multimedia
– commercial databases
– technical drawings
– films
– magazines
– architectural works
– websites
– sound recordings
– TV and radio programs
2. Generate Income
 Copyright is a tradeable asset that may be owned,
bought and sold the same as other types of property
 sell copies of the work
 sell copyright in the work
 permit others to use your copyrighted work
 Can be an important long-term value for your
business if the work is of quality or is a commercial
success.
3. Raise Funds
• Companies that own copyright assets may be able to
borrow money from a financial institution by using such
a bundle of copyrights as a collateral.
E.g., portfolio of distribution rights to movies
4. Take action against infringers
Copyright law enables to take legal action against
anyone encroaching on the exclusive rights
Remedies/Sanctions:
- Stop infringement
- Obtain monetary relief
- Destruction of infringing works
- Criminal sanctions
5. Use Works Owned by Others
May enhance the value or efficiency of your business
- play music in restaurant, bar, retail shop
- use computer software or databases created by others
- illustrate your website or catalogs with photographs
taken by others
Requires, in most cases, prior permission from the
copyright owner
6. Effective Marketing and Advertising
Enticing marketing or advertising materials requires use of
creative text, artwork, logos, etc., which are all protected by
copyright.
In the digital environment, companies are turning to the
Internet and use copyright protected works on their
websites to get noticed, build loyalty and ultimately boost
sales.
 short movies
 online music
 interactive games
 contests
 other new marketing ploys
PART 3
How to Maximize your
Copyright Protection
in Your Business’
Creations?
1. Prove ownership
 Deposit or register your work with copyright office
 Deposit copy with bank / lawyer
 Send yourself copy in sealed envelope
 Copyright notice
 Standard Identification Numbering Systems
-International Standard Book Number (ISBN)
-International Standard Recording Code (ISRC)
-Etc.
2. Protect works in electronic form
 Mouse-click contract
 Mark with rights management information
- Label (copyright notice, warning label)
- Digital Object Identifier
- Time stamp
- Digital watermark
 Technological protection measures
- Encryption
- Access control or conditional access systems
- Versions of lower quality
3. Ascertain ownership
 Author ≠ owner
- But moral rights...
 Work created by your employee
- Owner = employee
- Owner = employer, automatic transfer
- Owner = employer, assignment needed
- Different rules for computer programs
 Commissioned work
- Re-use of commissioned material for the same
or different purposes
CONTRACT
• Michal is employee in Thai restaurant
“Sunset”
• During lunch break: makes paintings
• Who owns copyright?
• Owner of the restaurant asks Michal
to create new logo for the restaurant.
• Who owns copyright?
• Owner of the restaurant asks
external designer to create new logo
for the restaurant.
• Who owns copyright?
PART 4
How to Get the Most out of
Your Copyright
in Your Business’
Creations?
Sell the work or sell copies of the work
Do you lose copyright?
Business’ activity
Buyer’s interest
Price
License your economic rights
Exclusive
Non-exclusive
Sell your copyright
‘assignment’
When should you consider licensing or
selling your copyright over a work?
The exclusive rights can be divided and
subdivided and licensed or sold to others in just
about any way you can imagine:
— by territory
— time
— market segment
— media
— content, etc.
You can grant different licenses, to different
persons or companies, at the same time.
Why should a business consider licensing?
• Income: Can generate lucrative fees and royalties
• New markets: Allows business to enter into new
product categories or in new geographical areas in a
relatively risk-free and cost-effective way
• Marketing tool: Increases the business’ exposure
and recognition
Licensing Strategy
 Define scope of activities permitted under the
license as precisely as possible
 Generally, better limited in scope
- To specific needs and interests of licensee
- Non-exclusive license allows further opportunities
 Exclusive license or assignment
- If no alternative
- If adequate price
- Loss of all future income-earning potential
Licensing Strategy
 Handle all aspects yourself
- standard terms and conditions
- individually with every licensee
 Entrust administration of (some of) your rights
to licensing agent/agency
- book publisher, record producer
 Collective Management Organization
Example of photographer
Owner of copyright: has great power to
define how his photos are used
Important to consider range of possibilities
to commercialize the photographs.
Possible to simultaneously grant various
licenses for one photo:
To
different
users
For specific
manners of
exploitation
For
limited
period
of time
In
limited
territory
For
specific
purpose
CMOs
►Per type of work and per country
- film, music, photography, reprography, television, visual arts
►Core activities
• documentation of works of its members
• licensing and collecting royalties
• gathering reporting information on the use of the
works
• monitoring and auditing
• distribution of royalties to its members
CMOs
►Advantages
•
•
•
•
•
•
intermediaries between users and owners
one-stop shop
collective bargaining
blanket license
license of material in digital form
cultural and social intiatives
Recording Industry Association of
Malaysia (RIM)
• Set up a one-stop centre to license local
music repertoire for digital distribution
• To address the complex licensing issues
associated with the digital distribution of
music.
• For now the licensing is restricted to
ringtones, as a test.
Recording Industry Association of
Malaysia (RIM)
•
Licenses needed to sell truetone (ringtone that
contains song)
•
Reproduction rights: to make copies of the musical
compositions and/or sound recordings for sale. Every
sale of a truetone is an act of reproduction of musical
composition and sound recording.
•
Broadcast right: for transmitting ringtone to
customer’s handset
•
Licenses needed from (or on behalf of)
–
–
–
Songwriter
Singer
Recording company
PART 5
Using Works
Owned by Others
When do you need permission?
1. Work is covered by copyright / related rights
2. Work is not in the public domain
- Copyright protection period expired
- Work cannot be protected (e.g. Title)
- Owner has explicitly abandoned his rights
3. Planned exploitation implies use of rights granted
by copyright / related rights
4. Intended use is not covered by ‘fair use’, ‘fair
dealing’, limitation, exception
Free uses or limitations
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•
personal use
quotations
parodies
criticism
use for teaching purposes
news reporting
scientific research
libraries
certain cases of reproduction
• Company that sells eggs. Buys
painting for 10.000 USD.
• Can it ...
– Use the painting as a logo?
Holisticforgeworks.com
– Scan the painting and use it to
illustrate its website?
– Sell digital copies online with
name of the company on it?
• Music for your business’ phoneline
• Britney Spears: ‘Whenever whenever’
• Brahms: ‘Hungarian Dance’
• You buy software for your office. Can you
–
–
–
–
Make a back-up copy for office use?
Make a copy for home use?
Adapt the software to your business needs?
Use the software on multiple workstations?
How reduce risk of infringement?
1. Educate employees
2. Obtain written licenses/assignments, where
needed, and ensure that staff are familiar with
their scope
3. Mark apparatus that could be used to infringe
copyright with a notice
- Photocopiers
- CD and DVD burners
- Computers
4. Prohibit staff from downloading copyright
protected material from the Internet on office
computers without authorization
Conclusions
•
•
•
•
Maximize your copyright protection
Ascertain copyright ownership
Avoid infringement
Get the most out of your copyright
Thank You!
WIPO’s website for SMEs :
www.wipo.int/sme
[email protected]