section-18-of-copyright-act
section-18-of-copyright-act

Section 18 of Copyright Act: Assigning Rights in Indian Copyright Law

Section 18 of Copyright Act explains how copyright owners can transfer their rights to others. This transfer, called an assignment, can be full or partial and helps creators earn money from their work while including rules to protect them. Section 18 of Copyright Law in India is important for lawyers, authors and businesses involved in creating content. It shows how to assign copyright for existing or future works. Knowing this section helps in writing clear assignment agreements, solving disputes and following legal rules. In this article, we will explain Section 18 covering the background, meaning, modes of assignment, implications for authors and the challenges they might face.

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Historical Context and Evolution of Section 18

The Copyright Act, 1957, replaced an older law from 1914 to match global standards, like the Berne Convention. Section 18 was created to set clear rules for transferring copyright. This allows creators, like authors or musicians, to assign their rights for money, such as in publishing or movie production.

  • Over time, amendments improved Section 18. The Copyright (Amendment) Act, 2012 made big changes to protect creators, especially in music and film industries. These changes added extra rules to Section 18 to stop authors from giving up their royalty payments in some cases. They also limited assignments to only the ways of using the work known at the time of the transfer. 

  • These amendments aimed to balance the power between creators and those they assign rights to, addressing issues caused by new media technologies, like streaming.

  • Before 2012, assignments could cover everything forever, often leaving creators with little benefit. The 2012 changes made Section 18 fairer by protecting creators’ rights to future uses of their work.

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What is Section 18 of Copyright Act?

Section 18 has three main parts i.e. rights to assign copyright, treatment of assignee and assignor and inclusion of legal representatives with each explaining different aspects of assigning copyright. Let’s look at them in detail.

Subsection (1): Rights to Assign Copyright

Subsection (1) of Section 18 lets the copyright owner of an existing work, or the future owner of a work not yet created, assign their copyright to another person. This assignment can be full or partial, cover all rights or just some and last for the whole copyright term or a shorter time. For example, an author might assign book publishing rights but keep movie adaptation rights.

For future works, the assignment only starts when the work is created. This rule stops unclear transfers that could harm creators.

Provisos to Subsection (1): Safeguards and Limitations

The extra rules, or provisos, added to Section 18 make it more protective. The first proviso says assignments don’t cover new ways of using the work that didn’t exist or weren’t common when the assignment was made, unless the agreement clearly says so. This is important in today’s world, where new platforms, like streaming services, appear quickly.

Other provisos protect authors of books or music used in films or sound recordings. These authors can’t give up their right to equal royalty payments with the assignee for uses outside specific cases, like movie theater showings. Any agreement trying to bypass this rule is not valid. These protections can only be changed for legal heirs or copyright societies, which help manage rights collectively.

Subsection (2): Treatment of Assignee and Assignor

Subsection (2) says the assignee becomes the owner of the assigned rights, while the assignor keeps any rights not assigned. This makes it clear who can take legal action if someone violates the copyright. The assignee handles issues for the assigned rights and the assignor handles the rest. This avoids confusion in complex deals, like movie co-productions.

Subsection (3): Inclusion of Legal Representatives

Subsection (3) says that for future works, if the assignee dies before the work is created, their legal heirs can take their place. This ensures the assignment still works and benefits the heirs.

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Mode of Assignment and Related Provisions

Section 18 explains the right to assign, but Section 19 explains how to do it. Assignments must be in writing, signed by the assignor or their agent and include details like the work, rights assigned, time period, area and royalty terms. If these rules aren’t followed, the assignment may not be valid. This shows why careful agreement drafting is important.

Section 19A allows disputes about assignments to be settled by the Intellectual Property Appellate Board, which was replaced by High Courts after 2021 changes. This gives a way to fix unfair assignments.

Implications for Authors, Assignees and Industry Practices

Section 18 affects creators, assignees and industries in big ways. For authors, it gives them flexibility to earn money from their work while protecting them from unfair contracts. In fields like Bollywood or publishing, where assignments are common, these rules ensure authors keep earning royalties, encouraging them to create more.

  • Assignees, like movie producers or publishers, gain clear ownership of assigned rights but must follow limits on future uses. This pushes them to make clear agreements and stay aware of new technologies.

  • Section 18 promotes fair deals by requiring equal royalty sharing, which reduces court fights. However, challenges remain, like figuring out what “equal basis” royalties mean or applying these rules to digital platforms. Lawyers need to stay updated to help clients.

Summary

Section 18 of Copyright Act allows creators to transfer rights while protecting their interests. By permitting assignments with limits and royalty protections, it balances business needs with fairness for creators. Lawyers must understand this section to help clients with contracts, disputes and legal updates. As technology changes, Section 18 might face new interpretations but its focus on empowering creators will remain same. Legal professionals should guide clients to write careful assignment agreements, using Section 18’s rules to avoid problems.

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Section 18 of Copyright Act: FAQs

Q1. What is Section 19 of the Copyright Act? 

Section 19 outlines the requirements for a valid copyright assignment, like written agreement and specifying rights, duration and territory.

Q2. What is meant by public undertaking in copyright? 

Public undertaking refers to government or public entities involved in copyright-related activities, like publishing or broadcasting.

Q3. What is Section 17 of the Copyright? 

Section 17 states that the author is the first owner of the copyright, except in cases like employment or commissioned work.

Q4.What is the time limit for copyright in India? 

Copyright lasts for the author’s lifetime plus 60 years in India.

Q5. What is Section 18 assignment of copyright? 

Section 18 allows the copyright owner to assign their rights to another person, fully or partially, through a written agreement.

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