Rights for Creators: contracts and royalties

01

Who owns what

In simple words

When you draw a picture, it is yours. You can lend it to a friend for a day (that is a licence) or you can give it away for good (that is an assignment). If you give it away, you must say so in writing, or it does not count. And one song is really two things: the words and tune, and the recording of someone playing and singing it.

Before this course: Licensing in Practice (course 4.7.2). You already know how to choose a licence, clear a sample and handle a claim. Now you will look at the other side: your own rights, and the contracts that move them.

Key facts

Copyright is a bundle of rights over a creative work, such as the right to copy it, perform it in public and share it. The usual starting rule is that the author (the person who created the work) is the first owner. For example, in Canada this is Copyright Act, section 13(1). See In your country below.
Employment exception: many countries have a special rule for work an employee makes as part of the job, but the conditions differ, and in some countries the employee keeps the copyright. For example, in Canada, if a work was made by an employee in the course of employment, the employer is the first owner unless there is an agreement to the contrary (section 13(3)). A freelancer is not automatically an employee, so the contract matters.
Assignment means transferring ownership of some or all of the rights. Licence means giving permission to use the work while the owner keeps ownership. Many countries require an assignment to be in writing and signed, and even where the law does not, a signed document is your proof. For example, in Canada, an assignment or exclusive grant is valid only if it is in writing and signed by the owner or the owner's authorised agent (section 13(4)).
An assignment can be partial: for example only for a territory, a medium (such as film), a sector of the market, or a period of time. (In Canada, section 13(4) lists these.)
Term: copyright lasts for a set time, and the length differs by country. For example, in Canada, copyright generally lasts for the life of the author, the rest of the calendar year of death, and 70 years after the end of that calendar year (section 6).
Two copyrights in a recorded song: the composition (music and lyrics) and the sound recording (the particular recorded performance). They often have different owners, for example songwriters and a label.
Neighbouring rights protect performers and the makers of sound recordings, separately from the composition. For example, in Canada, the first owner of copyright in a performer's performance is the performer, and in a sound recording it is the maker (section 24).
Moral rights are the author's rights to the integrity of the work and to be credited (or remain anonymous). In many countries they stay with the author and cannot be assigned, though some countries let the author waive them. For example, in Canada they cannot be assigned but can be waived, and assigning copyright does not by itself waive them (section 14.1).

In your country

The author is generally the first owner. If an employee makes the work in the course of the job, the employer is generally the first owner unless they agreed otherwise. A freelancer is normally the first owner unless the contract assigns it (Copyright Act s. 13).
An assignment or exclusive grant is valid only if it is in writing and signed by the owner or the owner's authorised agent (s. 13(4)).
Moral rights cannot be assigned but can be waived in whole or in part. Assigning copyright does not by itself waive them (s. 14.1).
Source: Copyright Act s. 13: laws-lois.justice.gc.ca/eng/acts/c-42/section-13.html
Source: Copyright Act s. 14.1: laws-lois.justice.gc.ca/eng/acts/c-42/section-14.1.html

A work an employee prepares within the scope of the job is a "work made for hire": the employer is treated as the author. A commissioned work counts as made for hire only if it is in one of nine listed categories and both sides sign a written agreement saying so; otherwise the creator usually owns it.
A transfer of copyright ownership is valid only in writing and signed by the owner of the rights (17 U.S.C. 204(a)).
Moral rights are narrow: a right of attribution and integrity for works of visual art only (17 U.S.C. 106A). It cannot be transferred but can be waived in a signed written document.
Source: US Copyright Office, Title 17 chapter 1: www.copyright.gov/title17/92chap1.html
Source: US Copyright Office, Title 17 chapter 2: www.copyright.gov/title17/92chap2.html

Copyright belongs to the author (Intellectual Property Code, Section 178.1). A work from an employee's regularly assigned duties belongs to the employer unless agreed otherwise (178.3). For a commissioned work, the copyright stays with the creator unless there is a written stipulation to the contrary (178.4).
Copyright is not deemed assigned during the author's lifetime unless there is a written indication of that intention (Section 180.2).
Moral rights cannot be assigned or licensed. They can be waived only in a written instrument (Sections 193, 195 and 198).
Source: RA 8293 text: www.lawphil.net/statutes/repacts/ra1997/ra_8293_1997.html

Copyright belongs to the author (Copyright Law, Article 11). For work made to do a job, the general rule is that the employee keeps the copyright and the employer has priority to use it in its business, with listed exceptions (Article 18).
Commissioned work: the two sides settle ownership by contract; with no clear term or no contract, the creator owns it (Article 19). Transferring economic rights needs a written contract (Article 27).
The rights of attribution, revision and integrity are personal rights with no time limit (Article 10).
Source: Copyright Law text (National Copyright Administration): www.ncac.gov.cn/xxfb/flfg/flfg_532/202103/t20210309_50530.html

A work an employee makes in the course of duty, at the employer's initiative and published under the employer's name, has the employer as author, unless a contract or work rules say otherwise (Copyright Act Art. 15). For freelance and commissioned work, the creator holds the copyright unless it is transferred.
Unless the contract names them, the rights of adaptation and derivative works are presumed to stay with the person transferring (Art. 61(2)), so a contract should list them.
Moral rights belong to the author only and cannot be transferred (Art. 59).
Source: Copyright Act (English), Japanese Law Translation: www.japaneselawtranslation.go.jp/en/laws/view/3379/en

The author is the person who creates the work (Copyright Act Article 2). A work an employee makes in the course of duties and that is published under the employer's name is attributed to the employer, unless the contract or work regulation says otherwise (Article 9).
Economic rights may be transferred in whole or in part (Article 45). A full transfer does not include the right to make derivative works unless stated (Article 45(2)).
Moral rights (to publish, to be named, to keep the work intact) belong exclusively to the author (Articles 11 to 14).
Source: Copyright Act, English text (KLRI): elaw.klri.re.kr/eng_service/lawViewContent.do?hseq=62935

Step by step

Choose one song or creative work of yours (or an imagined one).
Write who wrote the words, who wrote the music and who made the recording.
Write who owns the composition and who owns the sound recording today.
Mark any place where ownership depends on an agreement you have not written down yet.
Write a one-line plain-language note of any licence you have already given (for example "Ana can use it in her video, no exclusivity").
Check: you can name the owner of each piece, and every transfer is on paper.

Watch on YouTube

What is a copyright? (Canada)Innovation, Science and Economic Development Canada; a Canadian example · YouTube · youtube.com

Videos by other creators on YouTube, for reference. They are not made by or affiliated with The Future Market.

LESSON 01Who owns what

LESSON 01 / ANIMATED LESSON / AI VOICE00:00 / 01:15

Voice

Read the video script

[Host] "One song, two copyrights. Who owns which?"
[Text on screen: Composition + Sound recording] "The words and tune are one. The recording is another."
[Text on screen: In writing, signed] "In Canada, an assignment is only valid in writing, signed by the owner."
[Text on screen: Licence vs Assignment] "A licence lends it. An assignment gives it away."
[Host] "Know what you own before you sign anything."

Try it now

Map one work: who wrote what, who owns the composition and the recording, and every licence or transfer you have already made.

ClaudeStuck? Copy a ready-made prompt for Claude

Copy this, open Claude, paste it, and Claude will walk you through the lesson step by step.

For a grown-up: Claude is for adults (18+). Copy this, paste it into Claude, and use the answer to explain the lesson to your child.

I'm learning "Rights for Creators: contracts and royalties" on The Future Market. Lesson 1: "Who owns what".

What the lesson teaches:
- Copyright is a bundle of rights over a creative work, such as the right to copy it, perform it in public and share it. The usual starting rule is that the author (the person who created the work) is the first owner. For example, in Canada this is Copyright Act, section 13(1). See In your country below.
- Employment exception: many countries have a special rule for work an employee makes as part of the job, but the conditions differ, and in some countries the employee keeps the copyright. For example, in Canada, if a work was made by an employee in the course of employment, the employer is the first owner unless there is an agreement to the contrary (section 13(3)). A freelancer is not automatically an employee, so the contract matters.
- Assignment means transferring ownership of some or all of the rights. Licence means giving permission to use the work while the owner keeps ownership. Many countries require an assignment to be in writing and signed, and even where the law does not, a signed document is your proof. For example, in Canada, an assignment or exclusive grant is valid only if it is in writing and signed by the owner or the owner's authorised agent (section 13(4)).
- An assignment can be partial: for example only for a territory, a medium (such as film), a sector of the market, or a period of time. (In Canada, section 13(4) lists these.)
- Term: copyright lasts for a set time, and the length differs by country. For example, in Canada, copyright generally lasts for the life of the author, the rest of the calendar year of death, and 70 years after the end of that calendar year (section 6).
- Two copyrights in a recorded song: the composition (music and lyrics) and the sound recording (the particular recorded performance). They often have different owners, for example songwriters and a label.
- Neighbouring rights protect performers and the makers of sound recordings, separately from the composition. For example, in Canada, the first owner of copyright in a performer's performance is the performer, and in a sound recording it is the maker (section 24).

The exercise I'm working on:
Map one work: who wrote what, who owns the composition and the recording, and every licence or transfer you have already made.

I'm stuck. Please:
1. Explain the main idea in plain, simple words with one everyday example.
2. Walk me through the exercise one small step at a time. Ask me what I've done so far before giving the next step.
3. Don't just give me the final answer. Help me do it myself, and check my work when I share it.

I'm a parent helping my child (about 8 years old) with a lesson called "Who owns what" from the course "Rights for Creators: contracts and royalties".

Here's what the lesson says:
When you draw a picture, it is yours. You can lend it to a friend for a day (that is a licence) or you can give it away for good (that is an assignment). If you give it away, you must say so in writing, or it does not count. And one song is really two things: the words and tune, and the recording of someone playing and singing it.

The activity:
Map one work: who wrote what, who owns the composition and the recording, and every licence or transfer you have already made.

Please explain this so an 8-year-old understands: short sentences, a fun everyday example, and no hard words.
Then give me 3 simple questions I can ask my child to check they understood, and a way to do the activity together, one tiny step at a time.

Open Claude

Sources

Canadian example: Copyright Act of Canada, section 13 (ownership, assignments, writing requirement): laws-lois.justice.gc.ca/eng/acts/c-42/section-13.html
Canadian example: Copyright Act of Canada, section 6 (term): laws-lois.justice.gc.ca/eng/acts/c-42/section-6.html
Canadian example: Copyright Act of Canada, section 14.1 (moral rights): laws-lois.justice.gc.ca/eng/acts/c-42/section-14.1.html
Canadian example: Copyright Act of Canada (full text, section 24 on performers and makers): laws-lois.justice.gc.ca/eng/acts/c-42/FullText.html

My notes

I learned this

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