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Unit 3Copyright

Ownership, Assignment and Licensing of Copyright

Ownership of copyright and its transfer through assignment and licensing.

Copyright ownership determines who holds the exclusive rights in a work. The first owner is generally the author, but exceptions exist for employment, commissioned works, and government works. Ownership can be transferred through assignment (S.18-19) or shared through licensing (S.30). Moral rights (S.57) remain with the author regardless of assignment.

Why: Ownership rules allocate economic rights to the person whose creative labour produced the work. Exceptions for employers and commissioners reflect the reality that many works are created within employment relationships where the employer funds and directs the creation.

Legal Framework

Section Subject Rule
S.2(d) Author Defines who is "author" for each work type
S.17 First owner of copyright General rule + exceptions
S.18 Assignment of copyright Owner may assign wholly or partially
S.19 Mode of assignment Must be in writing, signed, specify rights, duration, territory
S.19A Disputes regarding assignment If assignee fails to exercise rights, assignment may lapse
S.30 Licensing Owner may grant interest by licence in writing
S.30A Licensing to publishing companies (2012 amendment) Authors of literary/musical works in films retain right to receive royalties
S.57 Author's special rights (moral rights) Attribution and integrity; independent of economic rights

First Ownership (S.17)

General rule

The author is the first owner of copyright.

Definition of "author" (S.2(d))

Work type Author
Literary/dramatic work Person who creates the work
Musical work Composer
Artistic work (other than photograph) Artist
Photograph Person taking the photograph
Cinematograph film Producer
Sound recording Producer
Computer-generated work Person who causes the work to be created

Exceptions to first ownership (S.17)

Exception Condition First owner
S.17(c): Employment Work made in course of employment under contract of service Employer
S.17(cc): Apprenticeship Work by apprentice Employer
S.17(d): Government work Work made under direction/control of government Government
S.17(dd): International organisation Work by/under direction of international body That body
Proviso to S.17(c) Journalist employed under contract of service Employer for newspaper/magazine purposes; journalist for all other purposes

Why: The employment exception reflects that employers bear the economic risk and investment; they receive copyright as quid pro quo. The journalist proviso balances this by giving journalists residual rights for book publication, freelance use, etc.

Assignment of Copyright (S.18-19)

Rules for valid assignment

Requirement (S.19) Detail
Writing Must be in writing signed by assignor or duly authorised agent
Specificity Must identify the work, specify rights assigned
Duration Must specify duration; if not specified, deemed 5 years (S.19(5))
Territorial extent Must specify; if not specified, deemed India only (S.19(6))
Royalty/consideration Must specify amount of royalty payable (S.19(3))
No undue restriction Assignment extending term of copyright beyond 5 years will attract revision right (S.19(4))

Key assignment principles

  1. Partial assignment: Can assign specific rights (e.g., translation rights only) or for specific territory
  2. Future works: Assignment of copyright in future works is valid (S.18(1))
  3. Reversion: If assignee does not exercise rights within one year of assignment, assignor may revoke (S.19A)
  4. Moral rights survive: S.57 rights cannot be assigned even if economic rights are transferred

2012 Amendment: Protection of authors in films

S.18 proviso (inserted 2012): Assignment of copyright in literary/musical work included in a cinematograph film does not affect the author's right to receive royalties when the film or sound recording is utilised otherwise than for communication to public in a cinema hall.

Why: Before 2012, lyricists and composers lost all revenue once they assigned rights to film producers. The amendment ensures ongoing royalty income from non-theatrical exploitation (streaming, downloads, TV broadcast).

Licensing (S.30)

Aspect Assignment (S.18) Licence (S.30)
Effect Transfers ownership of copyright Grants permission to use; ownership retained
Form Must be in writing, signed (S.19) Must be in writing, signed by owner or agent
Revocability Generally irrevocable once assigned Revocable as per licence terms
Sublicensing Assignee becomes owner (can further assign) Licensee cannot sublicense unless expressly authorised
Duration Can be perpetual (up to copyright term) As specified in licence

Compulsory licensing (S.31)

If a published work is withheld from the public, any person may apply to the Copyright Board (now Appellate Tribunal/High Court) for a compulsory licence to republish or translate the work.

Statutory licensing (S.31C-31D)

Cover versions (S.31C): Any person may make a sound recording of a literary/dramatic/musical work after 5 years from publication, upon payment of royalty at prescribed rate.

Collective Management of Copyright

Body Function
Copyright societies (S.33) Registered societies collect and distribute royalties on behalf of authors/owners
IPRS (Indian Performing Right Society) Licenses public performance and broadcasting of musical/literary works
PPL (Phonographic Performance Ltd.) Licenses sound recordings
ISRA (Indian Singers' Rights Association) Collects royalties for performers

Why: Individual authors cannot monitor and enforce copyright against thousands of users (radio stations, hotels, restaurants). Collective management societies aggregate rights and negotiate blanket licences, ensuring efficient licensing and fair distribution.

Illustrations

  1. Employment exception (S.17(c)) in practice: Priya is a graphic designer employed at TCS on a monthly salary. She designs a company brochure during work hours using TCS equipment. Who owns copyright? TCS (the employer), because the work was made "in the course of employment under a contract of service." Priya is the author but NOT the first owner. However: if Priya paints a landscape on Sunday at home (unrelated to her job), SHE owns that copyright — it's not in the course of employment.

  2. Journalist proviso (the split ownership): Ram is a staff reporter at The Hindu. He writes an investigative article on judicial corruption. Who owns copyright?

    • For newspaper/magazine publication: The Hindu (employer) owns → can publish in newspaper, website, app
    • For ALL other purposes: Ram owns → he can later expand the article into a book, license it to a documentary filmmaker, or publish it in a foreign journal This is the S.17(c) journalist proviso — a rare split ownership created by statute.
  3. Assignment vs licence (the rental analogy): Assignment = selling your house: title passes to buyer permanently; you can't take it back; buyer can resell. Licence = renting your house: tenant uses it for agreed period; you retain ownership; tenant can't sublet without permission; you get it back when lease ends. So when a novelist "assigns" film rights to a producer, the producer BECOMES the owner (can sublicense to OTT platforms). When a novelist "licenses" translation rights to a publisher, the publisher can translate but the novelist retains ownership and can license to another publisher for a different language.

  4. 2012 Amendment impact (real example): Javed Akhtar writes lyrics for a Yash Raj film (pre-2012 contract). YRF owns all rights after assignment. YRF earns Rs.50 crore from Spotify/YouTube streaming. Javed gets nothing. Post-2012 amendment: even though YRF owns copyright, Javed is ENTITLED to royalties from non-theatrical exploitation (streaming, TV, downloads). The amendment created an inalienable royalty right that survives assignment.

Recall Check

  1. Who is the first owner of copyright in a photograph taken by an employee during the course of employment?
  2. What happens if an assignment does not specify duration? (S.19(5))
  3. How does the 2012 amendment protect lyricists and composers whose work is included in films?

Key Cases

Indian Performing Right Society v. Eastern Indian Motion Pictures (1977) IPRS-v-Eastern-Indian-Motion-Pictures-1977 Issue: Whether a lyricist/composer who assigns copyright to a film producer retains any right to public performance royalties through IPRS. Rule: Under pre-2012 law, once copyright in a literary/musical work was assigned to the film producer under S.17(b)/(c), the assignee (producer) became owner of copyright in that work as incorporated in the film. Held: After assignment to the producer, the author could not independently claim performing rights through IPRS. The producer held all rights. (Note: This position was reversed by the 2012 Amendment which restored authors' royalty rights.)

Najma Heptulla v. Orient Longman (1989) Najma-Heptulla-v-Orient-Longman-1989 Issue: Whether legal heirs of Maulana Azad could claim copyright over his work "India Wins Freedom" published posthumously. Rule: Copyright belongs to the author and devolves upon heirs upon death; first ownership is with the author unless assigned during lifetime. Held: Legal heirs succeeded to copyright; the publisher's contract was a licence, not an assignment, and did not extinguish the heirs' ownership rights upon expiry.

Distinctions

Parameter Assignment (S.18) Licence (S.30)
Nature Transfer of ownership Permission to use
Title Passes to assignee Remains with licensor
Form Written, signed, specific terms (S.19) Written, signed by owner/agent
Duration default 5 years if unspecified (S.19(5)) As per contract terms
Revocability Not revocable (subject to S.19A) Revocable per contract
Right to sue Assignee can sue for infringement independently Licensee generally cannot sue (unless exclusive licensee under S.54A)
Sublicensing Assignee can further assign Cannot sublicense without express authorisation

Flashcards

Q: Who is the first owner of copyright in a work made during employment? A: The employer (S.17(c)), unless there is a contract to the contrary.

Q: What are the mandatory requirements for a valid assignment under S.19? A: Must be in writing, signed by assignor, identify the work, specify rights assigned, duration, territorial extent, and royalty payable.

Q: What happens if assignment duration is not specified? A: It is deemed to be 5 years from the date of assignment (S.19(5)).

Q: Can moral rights be assigned? A: No. S.57 moral rights (attribution and integrity) are personal to the author and survive assignment of economic rights.

Q: What did the 2012 Amendment change about authors' rights in films? A: Authors of literary/musical works in films now retain the right to receive royalties for non-theatrical utilisation (streaming, TV, downloads), even after assigning copyright to the producer.

Q: What is compulsory licensing under S.31? A: If a published work is withheld from the public, any person may apply for a licence to republish or translate the work, ensuring public access is not defeated by rights-holder inaction.

Q: What is the role of copyright societies (S.33)? A: Registered societies collectively manage copyright by licensing users, collecting royalties, and distributing them to member authors/owners.

Exam Scenario

Songwriter Priya writes lyrics for a Bollywood film produced by FilmCo in 2024. Her contract states: "All rights in the lyrics shall vest with FilmCo." The film is released theatrically. Later, a streaming platform pays FilmCo Rs.5 crore for digital rights. Priya receives nothing.

Advise Priya on: (a) Whether the 2012 Amendment to S.18 entitles her to royalties from the streaming deal. (b) Whether her moral rights (S.57) allow her to claim credit on the streaming platform. (c) If Priya had assigned rights before 2012, does the amendment apply retrospectively? Refer to IPRS v. Eastern Indian Motion Pictures (1977) and the corrective intent of the 2012 Amendment.

See Also

  • IoS-3.3 Beneficial Construction — 2012 Amendment to S.18 (royalty rights for authors) is remedial legislation interpreted beneficially to protect authors against exploitative assignments
  • IoS-5.1 Repeal and Amendment — whether the 2012 Amendment applies to pre-2012 assignments raises the question of retrospective operation of amending legislation

Now see how it gets examined

This chapter in the exam hall: which questions recur, and full model answers for each.

PYQ AnalysisModel Answers