Copyright, a branch of intellectual property law, grants authors an
exclusive, legally sanctioned claim to their works. Any creator of content is
entitled to employ intellectual property laws, particularly copyrights, to
safeguard their creations.
Violating copyright rules will have many legal
ramifications. Even though intellectual property laws give the author of such
content exclusivity, some of it is created under temporary or permanent
employment agreements. How to manage this is determined by the concept of "Work
for Hire". In the absence of a crystal-clear formal agreement between the
parties, the Doctrine of Work for Hire governs copyright ownership.
The focus of
the article at hand will be Work for Hire, famous cases, a comparison of two
significant countries namely, India and the USA each of which has its own laws
and regulations to deal with the Doctrine of Work for Hire, some noteworthy
points that reveal the similarities and differences, and recommendations based
on the thorough research.
Along with the history of the philosophy, its application to Work for Hire in
the USA and India, as well as its advantages and disadvantages, will all be
covered in this project. The cases of "Carter v. Helmsley-Spear", "
Indian
Performing Right Society Ltd. v Eastern Indian Motion Pictures Association and
Ors. AIR1977SC144", and "
Marco v. Accent Publishing Co., 969 F.2d 1547 (3d Cir.
1992"), which are some of the landmark cases under the Doctrine of Work for Hire
under the copyright law, will also be covered in order to help you comprehend
the idea.
Synopsis:
Objective of the Study:
- To understand the concept of Doctrine of "Work for Hire" Under Copyright Law.
- To understand the different legal perspective of Work for Hire Doctrine, Under copyright law.
Scope of the study
This study is limited in the concept of "Work for Hire" along with the famous cases involved with this concept in India.
Literature Review:
The below mentioned are the journals from Indian and international reputed journals being used by the researcher for comparative analysis between India and United States.
- Preet S. Phanse, The doctrine of 'Work for Hire': A Critical Survey of US, UK & Indian Cases, Jus Corpus Law Journal.
- Works Made for Hire Under the 1976 Copyright Act, Oxford university press.
- comparative study- doctrine of work for hire, Lex research hub.
- Jon L. Roberts, WORK MADE FOR HIRE: The Fiction, The Reality and The Impact Upon Software Development.
- Harsh Kumar, Employer's Copyright vis-a-vis Author's Right: An Unresolved Legal Dilemma, Journal of intellectual property rights.
The researcher has gone through the above-mentioned journal articles where comparative analysis can be drawn by looking into these journal articles.
Types Of Research:
The research is a doctrinal and explanatory.
Research Questions:
- Whether there is a direct control by the employer or not?
- Whether there are enough legal provisions in India when compared with United States or not?
Research Methodology:
"The researcher has used primary and secondary sources to collect and present relevant data, employing the Doctrinal Method of research, along with Explanatory Method to complete it".
Citation Style:
The researcher has used Oscola Style of Citation.
Introduction:
Copyright law plays a vital role in protecting creative works and ensuring that
creators have the exclusive rights to their creations. One significant aspect of
copyright law is the doctrine of "work for hire." This doctrine determines the
ownership of a copyrighted work when it is created as part of an employment
relationship or under a contractual arrangement. In this blog post, we will
conduct a critical survey of the doctrine of "work for hire" in the United
Kingdom, the United States, and India, highlighting key cases and their
implications.[1]
The 'work for hire' provision governs a broad variety of activities when the
work is produced by an employee acting in his official capacity while on the
job. Both employees and independent contractors covered by such a contract are
entitled to it. Although such works are the creation of an individual or
employee, the employer enforcing such a contract is deemed to be the author due
to the operation of law; for example, when some software is created by an
engineer employed by a company or when a painter paints a portrait of his
employer upon request.
In any of these situations, the work is regarded as being
created "for hire" and cannot be falsely represented to be the author's own. By
incorporating such a philosophy, a corporate organisation may add new flavours
and components without altering its core function as an employer.
Copyright law grants a host of rights to the creator of a work as soon as it is
made and fixed, as well as to anybody who derives those rights from the
invention. However, under the broadening definition of "work for hire," unless
the parties have expressly agreed otherwise, the "employer or another person for
whom the work is generated" is deemed to be the work's author and is the owner
of all rights derived from it.
The Copyright Act, 1957 (often known as the "Copyright Act") sets up the laws
regulating copyrights in India. "Work for hire" is defined by the Copyright Act
as two fundamental categories of production:
- Works produced under a contract of employment or an apprenticeship, and
- Specially commissioned pieces.
Just with other laws, the regulations governing work for hire vary from country
to country. This article's goal is to illustrate how work-for-hire agreements
function in each of their many countries by focusing on the specific laws that
apply to them.
What is Copy Right?
The phrase "copyright" refers to a person's legal right to their intellectual
property. The capability to duplicate is one way to define copyright. This shows
that the original creators of the work and anybody to whom they provide
permission are the only ones with the exclusive right to replicate the work.
Copyright legislation gives creators of creative material the exclusive right to
reuse and duplicate such work for a certain amount of time. The copyrighted work
becomes public domain after it has run its course. When someone creates anything
that is seen as original and required significant mental effort, it becomes
intellectual property that has to be protected from unlawful duplication.
Examples of original innovations include:
Examples include books, artwork, poetry, songs with original music, computer
software, unique architectural concepts, and website content.
An original output may be legally protected by the use of copyright. According
to copyright law, a work is considered original if it was created by the author
independently and without the use of any earlier works.
This kind of work is
known as an Original Work of Authorship (OWA). Any author who produces an
original work automatically acquires the copyright to it, preventing others from
exploiting or copying it. If the need arises, the original owner may voluntarily
register the copyright to strengthen their standing in the legal system.[2]
Background
In the 19th century, courts showed a great deal of regard for the rights of
staff authors. There was widespread agreement that the employee who produced the
work, even while operating within the scope of their employment, was
automatically the owner of the copyright from the time the U.S. Supreme Court's
decision in
Wheaton v. Peters until 1860. Employer ownership was accepted
formally about 1860.
The employer held a default right to its employees'
creative output throughout the first 10 years of the 20th century. This was
subject to the parties' expressly agreeing otherwise in a negotiation conducted
in good faith. Companies expanded during this time period as a result of
expanding industrialisation.
As a result, the employer gained control over the
creative products that employees made, leading to the formation of an "author"
who, in this case, was the business that hired the person who was generating the
work. This circumstance made the development of the work-for-hire ideology
inevitable.
It was theoretically reasonable to disregard the ancient master-servant concept,
which granted ownership of a servant's work to the master, and instead create a
rule of employee authorship since neither Boucicault nor Wheaton were employees
in the instances of
Boucicault v. Fox or Wheaton v. Peters.
In
Keene v.
Wheatley, the court chose to create a new equitable foundation of employer
ownership. This was accomplished since there were no copyright laws in force at
the time. The concept of corporate authorship became less fanciful and more in
line with the demands of the moment when Congress approved the 1909 Copyright
Act. As a consequence, before being explicitly codified in the 1909 Copyright
Act, the "work-made-for-hire" notion was first developed by the courts.[3]
The "Work For Hire" Agreement
The "work for hire" agreement should include a clause that briefly addresses
the following topics:
- The parties to the contract should be identified in clear and unambiguous words.
It should also go into detail about the nature of their relationship.
- A clear statement from both parties that they are freely entering into the
agreement is required, taking into account the various objectives that each
party may have in mind for the transaction.
- The payments that are expected to be made should be explained.
- The nature and extent of each party's use of the contract's subject matter after
the employer-employee relationship has ended should also be made clear.
- Additionally, it should outline what would happen if one or both parties failed
to fulfil their obligations.
When the employer owns the intellectual property (hereinafter referred to as
IP) but it needs to be customised or altered from its original form, it is
advisable to look for a customization or amendment agreement before getting
started.
This type of contract specifies the extent of the work to be done and
makes it clear that the authorship of the modified work remains unchanged in the
event of such adjustments. Instead, it functions as a licencing right whereby
the company allows the employee to alter an already existing IP asset, such as a
book, software, invention, etc.[4]
Furthermore, to better protect and secure the IP asset resulting from such a
sale, the contract may further shed light on the following matters in addition
to the points already mentioned:
The employment contract that governs independent contractors and employees
should include a clause referring to "work for hire".
A clause allowing the transfer of the work produced during such a course of
employment as well as the ancillary ownership rights to such works may be
expressly mentioned in the contract."
Provisions Perceived For Work-For-Hire Under Copyright Act
In India
Work for Hire is defined under Section 17 of the Indian Copyrights Act of 1957
under the category of First Owner of the Copyright. This term is quite similar
to the one found in UK copyright law. The regulations listed in the
aforementioned part are extensive and include all of the situations in which the
idea of employment will be applicable. The legal environment is still virtually
the same in India as it is in the US and the UK.
For example, if an author
creates a work on behalf of another person (referred to as the commissioner),
that person will be the first owner of the copyright; however, as was mentioned
in the paragraphs before, this will only be the case in the absence of a written
agreement between the parties. The legal position of a work created when a
person is engaged under a service contract is similar to the UK.
- Section 17(b) of the Copyright Act states that, in the absence
of a written agreement between the parties, the person who requested
that a work be created by an author is the first owner of the
copyright.
- Section 17(c) states that, in the absence of an agreement
between the parties, the employer is the original owner of the
copyright in cases where an author creates a work while employed
under a service or apprenticeship contract.
In Indian Performing Right Society Ltd. v. Eastern Indian Motion Pictures
Association and Ors. [1977 AIR 1443], the Supreme Court ruled that the clauses
(b) and (c) of Section 17 of the Copyrights Act, which raise the issue, are the
ones that hold the key to resolving the dispute over whether a film maker can
invalidate a music composer's or lyricist's rights by hiring them.
The
cinematographic film becomes the first party under Section 17(b) when a music
composer or lyricist accepts a cinematographic film's offer of payment.
Therefore, regardless of whether the composer of the music or lyrics is engaged
to write the work under a service or apprenticeship contract, the result would
be the same under Clause (c).
The Delhi High Court declared in
Khemraj Shrikrishnadass v. M/s Garg & Co. [AIR
1975 Delhi 130] that, unless there is an explicit contract to the contrary, the
copyright is often passed to the publisher when a work is finished by one author
for another writer in lieu of remuneration. It is up to the parties to a
contract to figure out a means to get out of those obligations. Freelancers are
consequently regarded as the original owners of copyright in Indian law due to
the absence of contractual obligation, while periodicals, magazines, and
newspapers are regarded as the original works produced by workers under a
service contract.
IN USA
As stated in Section 101(1) of the Copyright Act (Title 17 of the United States
Code), "work made for hire" may be broken down into two categories: either a
work produced by an individual while at work or a product deliberately bought or
commissioned for use. The notion of labour for hire was developed in the United
States of America. Although this idea dates back to the 19th century, it is now
given more weight and emphasis than ever.
Work produced for hire is defined by
U.S. copyright law as either a work created by an employee while on the job or a
work that has been explicitly ordered or commissioned for use. Such distinct
separation, nonetheless, was not always eliminated. The fundamental components
of the theory of labour for hire were first left up to the American courts to
determine on an as-needed basis.
Before the U.S. Supreme Court's historic ruling
in Community for Creative Non-Violence v. Reid, this was the prevailing opinion
in the courts. In one instance, the Community for Creative Non-Violence (CCNV)
and a sculptor called Reid, who had produced a statue for CCNV, were embroiled
in a dispute about copyright ownership. By bringing a lawsuit against Reid to
enforce the statute's copyright, the CCNV addressed the District Court for the
District of Columbia.
The District Court dismissed the case in favour of CCNV, ruling that the
statute's production qualified as "work made for hire" under the terms of the
Copyright Act of 1976. Reid successfully appealed the District Court's judgement
to the Court of Appeals, and the Court of Appeals overturned the judgement by
ruling, among other things, that an independent contractor's labour cannot be
regarded as work done for hire. When the Supreme Court upheld the appellate
court's ruling, the CCNV finally lost.
In such circumstances, an analysis established by the Supreme Court must be
used. It was decided that the first factor to consider was whether a specific
piece of work was produced by an employee or an independent contractor. The
first part of the aforementioned definition will be attracted if it is
generated, performed, or prepared by an employee, and that specific task would
then typically be regarded as work for hire. On the other hand, the theory will
not be applicable if the job was completed, produced, or prepared by an
independent contractor.
It was determined by the Court in Community for Creative Non-Violence v. Reed
(490 U.S. 730 (1989)) that it was crucial to first determine whether a project
was generated by an employee or an independent contractor. If the task was
generated by an employee, it would often be referred to as "work made for hire".
Case Laws
There are some famous cases which are given land mark judgement in both the
countries of USA and India, those are as follows:
Carter v. Helmsley-Spear
Facts.
For the SIG Management Company (SIG), John Carter, John Swing, and John Veronis
(Jx3) were commissioned to create artwork. Helmsley-Spear, Inc. (Helmsley-Spear,
Inc.) assumed control of SIG's building, ended Jx3's agreement to create artwork
there, and pulled down their earlier works. Under the Visual Arts Rights Act of
1990 (VARA), the district court prohibited Helmsley-Spear from removing Jx3
artwork that had already been erected in the structure.
Issue
- Whether an artist may maintain ownership of his creations once the title is
transferred to another else.
held.
A sculpture is regarded as a work for hire, and VARA does not provide protection
for such work. The district court's decision is overturned.
Discussion.
VARA was not intended to safeguard the work of employed artists. Work that was
produced while working is referred to as work for hire.
Marco V. Accent Publishing Co.,
Facts:
Ed Marco, a freelance photographer, worked for Accent Publishing Co., a magazine
publisher. They didn't have a written contract or discuss copyright terms. Marco
took photos for Accent's magazine, mostly on his own in his studio but sometimes
with models provided by Accent. He was paid $450 per magazine issue, and Accent
didn't withhold taxes or provide benefits. Marco claimed he owned the photo
copyrights as an independent contractor, while Accent argued they belonged to
them as works for hire.[5]
Issue:
- The main question was whether Marco was an independent contractor or an employee
of Accent. If he was an employee, Accent would own the copyrights; if he was an
independent contractor, Marco would own them.
Reasoning:
The Copyright Act says works are "made for hire" if they're created by an
employee within their job. The Supreme Court, in a similar case, Community for
Creative Non-Violence v. Reid, defined "employee" based on common law agency
principles. The court looked at factors like who controlled the work details,
the tools used, payment method, work location, and more.
They also considered
the relationship's length and whether special skills were required. The district
court initially thought Marco was an employee because he used his equipment and
paid taxes himself. But they didn't consider factors like Marco having his own
studio, not getting employee benefits, having a specific occupation, or being
paid per job.
Additionally, the district court didn't correctly recognise that Marco had
control over his work hours, and Accent couldn't assign him more work like an
employer typically could. While Accent did influence the photo subjects and
composition, they didn't control things like lighting, camera settings, or
processing techniques. So, they didn't have the level of control that would make
Marco an employee.
The main difference between this case and the one the Supreme
Court had previously ruled on was that Accent regularly published photos in ads
and articles, while the other case involved commissioning sculptures. However,
this difference alone wasn't enough to make Marco an employee.
Judgement:
The Third Circuit Court of Appeals ruled that Marco was an independent
contractor, not an employee. Therefore, the photos were not "made for hire," and
Marco owned the copyrights to them
Indian Performing Right Society Ltd. v Eastern Indian Motion Pictures
Association and Ors.
Facts:
Issue:
- Whether an existing or a future right of music
composer /lyricist is capable of assignment?
- Whether the producer of the film can be the
copyright owner by means of engaging the composer.
Judgement:
The Supreme Court ruled that the Copyrights Act's provisions (b) and (c), which
raise the issue, contain the key to settling the dispute over whether a film
producer may invalidate a composer's or lyricist's rights by employing them. The
cinematographic film becomes the first party under Section 17(b) when a music
composer or lyricist accepts a cinematographic film's offer of payment.
Therefore, regardless of whether the composer of the music or lyrics is engaged
to write the work under a service or apprenticeship contract, the result would
be the same under Clause (c).[6]
CONCLUSION
Intellectual property rights are one area of law that has witnessed tremendous
development. It teaches us that the completed product, which we have made with
much sweat and work, may be kept and given special status. Despite the fact that
there are several established regulations, some of them are important in and of
themselves. The principle of work for hire is one of them. In the states we have
so far seen, work for hire is not yet explicitly defined.
The aforementioned
contrast was essential in order to illustrate some significant points. One of
the key topics is that despite the lack of codification, the notion works
essentially the same. with a few minor modifications, everywhere.
The two countries accept it, at least in part. The employer is the rightful
owner of any works created by an employee while carrying out his job
responsibilities. The basic principle remains the same: the employer or
contractor is the first owner of any intellectual property obtained over the
course of the activity, unless the contract expressly states otherwise.
The
codification of work-for-hire practises should be the sole area of focus,
according to the research's authors, in order to avoid the majority of
misconceptions and possible legal issues.
Bibliography
Journals:
- Preet S. Phansea, The doctrine of 'Work for Hire': A Critical Survey of US, & Indian Cases, Jus Corpus Law Journal.
- Mr. Shaikh Taj Mohammed, COMPARATIVE STUDY- DOCTRINE OF WORK FOR HIRE, Lex Research Hud Journal.
- Harsh Kumar, Employer's Copyright vis-a-vis Author's Right: An Unresolved Legal Dilemma, Journal of Intellectual Property Rights Vol 10.
Websites:
- https://amlegals.com/doctrine-of-work-for-hire-under-the-copyright-law/#
End-Notes:
- https://corpbiz.io/learning/doctrine-of-work-for-hire-under-copyright-law-a-critical-survey-of-uk-us-and-indian-cases/
- https://www.investopedia.com/terms/c/copyright.asp
- https://blog.ipleaders.in/doctrine-work-hire-copyright-law-critical-survey-us-cases/
- https://www.sec.gov/Archives/edgar/data/1425627/000101103408000020/workforhireagmtimaginev2.htm
- 969 F.2d 1547 (3d Cir. 1992),
- AIR 1977 SC 144
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