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?