The Value of Intellectual Property
Talk to the Brit School by Tim Clement-Jones
� Type of intellectual property � Transferring ownership � Managing of assets � Social media and online reputation
management � Making money � The role of collection societies � Who pays and what for? � The threats to copyright � Developing Apps
Agenda
� trade marks � copyright � designs � patents � confidential information
Types of IP
4
Registered � words (including slogans) � logos � sound � colour � smell � 3-dimensional marks Unregistered � words � logos � trade dress
Trade Marks
� A trade mark can be registered: � for use in the UK only; � via the international route, applying for registration in
individual countries which are party to the Madrid Protocol;
� as a Community trade mark ("CTM") via the Office for Harmonization in the Internal Market ("OHIM"), which provides protection for your trade mark in all European Union countries.
� Considerations: use of trade mark, costs, time etc.
UK and Community Trade Marks
� two and three dimensional designs � must not be identical to an earlier design
and must have individual character
Designs
� How to protect
unregistered rights arise at law
registration at national level (UK) and supra-national (CTM) level
� Duration:
UK + CTM registered - 25 years
CTM unregistered - 3 years
UK unregistered - 15 years
Designs
Script/ stage direction
Cover photo
Album artwork
Sound recordings
Films Typographical Arrangements
Recording
Literary works
Musical works
Artistic works
Lyrics Score
Copyright Works
Script/stage direction
Script
Dramatic works
Broadcasts
� Copyrights are a form of ‘intellectual property’
� Copyright is automatic in the UK i.e. no registration required
� Copyright, Designs & Patents Act 1988 (CDPA) sets the criteria for copyright
What is copyright?
Copyright Duration:
life of the author +70 years (general rule) 50 years from publications
(sound recordings and broadcasts) 25 years from publication (typographical arrangements)
Scope of protection:
right to prevent unauthorised use of a substantial part of a copyright word
� Literary work any work, other than a dramatic or musical work, which is written, spoken or sung
� Musical work a work consisting of music, exclusive of any words or action intended to be sung, spoken or performed with the music
� Sound recording a recording of sounds, which can be reproduced
Defining copyright works
Writer (or lyricist)
‘Producer’ ie Record Label
Publisher
Composer/ Publisher
Artist/ Photographer
Director & Producer
Sound recordings Films Broadcasts
Typographical Arrangements
Literary works
Musical works
Artistic works
Who owns copyright?
Broadcasts
Director & Producer
Script writer
Dramatic works
“acts restricted by the copyright” provide: � the exclusive right to copy the work � the exclusive right to issue, rent or lend to the
public � the exclusive right to perform, show, play or
communicate the work in public � the exclusive right to make an adaptation of it
Rights
by licence exclusive non-exclusive limitation of use
type of licence written
oral intra-group third party
How can IP rights be controlled by the owner?
automatic employee/employer by contract e.g. by assignment on death by a testamentary
disposition i.e. in a will
How can ownership change?
Defamation � chat room banter � response strategies � reliance on the platform/forum
Commercial messages � social networking sites apply advertising, promotion
restrictions
http://www.facebook.com/ad_guidelines.php
http://www.facebook.com/promotions_guidelines.php
Social media: risk and regulation
Social media: risk and regulation Employees � commercial disparagement, securities law risks � internal policies � fraud risks � face sites, phishing, brand protection Intellectual property � protection a struggle Facebook "… for content that is covered by intellectual property rights, like photos and videos ("IP content"), you specifically give is the following permission, subject to your privacy and application settings: you grant us a non-exclusive, transferable, sub-licensable, royalty-free, worldwide licence to use any IP content that you post on or in connection with Facebook ("IP License"). This IP License ends when you delete your IP content or your account unless your content has been shared with others, and they have not deleted it…"
Twitter "… you retain your rights to any Content you submit, post or display on or through the Services. By submitting, posting or displaying Content on or through the Services, you grant us a worldwide, non-exclusive, royalty-free licence (with the right to sublicense) to use, copy, reproduce, process, adapt, modify, publish, transmit, display and distribute such content in any and all media or distribution methods (now known or later developed)… You agree that this license includes the right for Twitter to make such Content available to other companies, organizations or individuals who partner with Twitter for the syndication, broadcast, distribution or publication of such Content on other media and services, subject to our terms and conditions for such Content use… with no compensation paid to you "
Social media: risk and regulation
� Parties wishing to do one of these things need permission from the copyright owner
� Copyright owners will usually grant a licence and
charge a fee � The fee is based on how a work is used
Making money from copyright
MECHANICAL RIGHT PERFORMING RIGHT
Two Key Rights
The major income streams for songwriters, composers
and publishers
If you can ‘hear’ your music you may receive a performance royalty • public performances: pubs, clubs, shops, hairdressers or cinemas, etc • communicate a work to the public: television, radio, satellite & cable transmission and the internet If you can ‘hold’ your music you may receive a mechanical royalty • to copy the work • to issue copies of the work to the public
Performance and Mechanical Rights
� Rights owners can form collectives and offer ‘blanket’ licences – this simplifies transactions
� Blanket licences give licensees access to ALL the works the collective members own, usually on a pay-per-use or profit share basis
� Why license collectively?
• Statutory obligation • Logistical motivations • Commercial motivations
Collective Licensing
UK Collective licensing
Performance Physical
Broadcast and mobile
Collective Licensing
Cinema and theatre (theatrical)
Gigs, clubs and concert venues (live performance)
Pubs, hotels, shops, offices (playback of recorded music)
Digital
Network operator
TV, film and radio
Digital music service
Manufacturer or distributor
Publisher (covermounts)
Record label
Professional music user (production library CD)
Digital music retailer (downloads)
Website owner (streamed music)
Mobile content retailer (ringtones)
� Collective licences are often administered by national ‘collecting societies’
� A collecting society collects royalties and
distributes to members based on usage � Rights owners choose a collecting society
Collecting societies and their role
� In the UK PRS For Music collects royalties for: • performing rights • mechanical rights.
� In the UK PPL collects royalties for recording rights
� Other global territories have different collection societies
� Rights owners generally join their local society, which liaises with other societies worldwide to collect foreign royalties
Collecting Societies
Performing Rights Performance Broadcast, Online & Mobile
TV, Film & Radio
Network Operator
Website Owner
TV & Radio Transmission
Mobile Transmission
Streamed Music
Gigs, Clubs & Concert Venues
Pubs, hotels, shops, offices
Cinema & Theatre
Theatrical
Live Performance
Playback of recorded
music
£ £ £ £ £ £
£ £ £
music using customers
£
songwriters, composers and music publishers
Performing Right Performance income is collected from radio & TV
stations as well as all other music users, including:
cinemas hairdressers hotels AIRCRAFT ice rinks
member’s clubs youth clubs
Bingo shops theatres
VILLAGE HALLS pubs mobile djs
caravan parks ice cream vans circuses
buses MUSIC ON HOLD parks
railway stations boats universities
Mechanical Rights Physical Digital
Production Library CD
Commercial release CD
Commercial release DVD
Covermount CD Publisher
Manufacturer or Distributor
Record Label
Professional Music User
Digital Music Retailer
Mobile Content Retailer
Website Owner
Downloads
Ringtones
Streamed Music
International royalties
USA
France
Italy Australia ASCAP, BMI & SESAC
SACEM
SIAE APRA
Performance rights
HFA
SACEM
SIAE AMCOS
Mechanical rights &
PRS for Music has nearly 150 reciprocal contracts with mechanical & performance organisations around the world
Threats to copyright? � Infringement /piracy � Changes to copyright law – � Poor data management – resulting in musical works becoming
inaccessible to potential licensees � Unclear global legislation – e.g. impacts on the growth of online
business
PRS for Music estimates of piracy
IP for App Developers
� Need to Specify:
• Ownership of Intellectual Property Rights in the App • Software Licence: No Decoding/Adaptation • Limitations on Use of Confidential Information
• How to Make a Living from Music (David Stopps ISBN 978-92-805-1708-8) • Collective Management of Copyright and Related Rights (Mihaly Ficsor ISBN 92-805-1103-6) • International Protection of Performers Rights (Owen Morgan ISBN 10: 1-84113-285-3 or ISBN 13: 978-184113285) • MySpace Music Marketing (Bob Baker ISBN 10: 0971483841 or ISBN 13: 978-0971483842) • Guerrilla Music Marketing Handbook (Bob Baker ISBN 10: 0971483859 or ISBN 13: 978-0971483859) • Music, Money and Success (Jeffrey Brabec & Todd Brabec ISBN 10: 082567326-7 or ISBN 13: 978082567326) • Music Business Infrastructure Practice and Law (Nigel Parker ISBN 10: 0421-899-301 or ISBN 13: 978-0421899308) • All You Need to Know About the Music Business (Donald S Passman ISBN 10: 0141031158 or ISBN 13: 978-0141031156) • Music Copyright – The Use of Music in Film and Television (Gillian Baxter ISBN 1-905394-02-0) • Media Contracts and Industry Agreements (Gillian Baxter ISBN 1 905394 039)
Further Reading
Any Questions?