Showing posts with label contract. Show all posts
Showing posts with label contract. Show all posts

Sunday, July 11, 2010

Copyright and contract

SABIP, the UK's Strategic Advisory Board for Intellectual Property Policy, published a report entitled "The Relationship Between Copyright and Contract Law" at the end of last week. This report, prepared by Estelle Derclaye, Martin Kretschmer, Marcella Favale and Richard Watt, is available online -- so there's no excuse for not reading it. The executive summary, a trim 20 pages of which many are blank or sparsely populated by text, can be accessed here, while the full report (a hefty 180 pages) lives here. The report was presented to a number of stakeholders at a workshop in March 2010, the proceedings of which you can peruse at your leisure here. Estelle Derclaye has indicated that she'll be pleased to answer any questions and address any pertinent comments. You can email her here.


By sheer coincidence I received a copy of another work on the same topic, Copyright, Contracts, Creators: New Media, New Rules, this week. The author is Giuseppina D'Agostino and the publisher is Edward Elgar. Giuseppina, Associate Professor in Canada's prestigious Osgoode Hall Law School, York University, is also the founding director of IP Osgoode. According to the book's publishers,
"The digital world has put content within arm’s reach of desire [What a lovely metaphor! Even though most digital content is undesirable to most internet users, the subjective element of one's own desire, reified in the content of one's choice, is rare further than a handful of clicks away]. No longer can an author be satisfied that her intellectual property is safely encased in a bound book, nor can a photographer know where his work will be displayed or shared, nor can a writer rest assured that her article will be consumed in the intended magazine or newspaper [It must be assumed that no content carrier or publisher has been resting assured for some while now]. The Internet-fueled recycling of existing works into new media is the greatest challenge to copyright law.

Copyright, Contracts, Creators evaluates the efficacy of current copyright law to address the contracting and use of creative works. It looks in particular at freelance works and argues that their copyright treatment on a national and international level is inadequate to resolve ambiguities in the contracting and uses of the work. Giuseppina D’Agostino discusses how historically laws and courts were more sympathetic to creators, and how the Internet revolution has shifted the scales to favor owners [a controversial position, which may depend on one's sectoral standpoint as well as the type of work created]. Consequently, creators often find themselves at opposing ends with copyright owners, and in a disproportionately weaker bargaining position that places tremendous strain on their livelihoods. She argues that this predicament puts society at risk of losing its most valued asset: professional creators. The author calls for a new framework to justify legislative provisions and resolve ambiguities while suggesting principles and mechanisms to address the inadequate treatment of freelance work ...".
This is a refreshing and challenging approach to a subject which has attracted relatively little systematic research and where both case law and commercial practice have had a substantially ad-hoc feel about them. It also provides ammunition that may be said to support both sides in the sporadic debate as to whether freelance creators benefit more from the freedom of the little-regulated marketplace as in common law countries or from the more moral and norm-driven approach of continental Europe. Definitely worth a good read.

Bibliographic data: xviii + 320 pages. Hardback. ISBN 978 1 84720 106 5. Price £79.95 (with online discount from the publisher £ 71.96).

Friday, June 18, 2010

Stretching copyright with contract

Copyright has its limits. To what extent can they be pushed by contract law?

GlobalCOAL facilitates the trading of coal and coal derivatives by means of a standard industry contract (‘SCoTA’) and an online trading platform. Traders and brokers who make use of this platform sign a Product Licensing Agreement. Under this agreement, globalCOAL grants licensees a licence ‘under its Intellectual Property Rights in the globalCOAL Products to use the globalCOAL Products and the Trade Marks’ and in return the licensees undertake not to the ‘use the globalCOAL Products’ in certain ways, including transactions with parties that are not other globalCOAL licensees. ‘Products’ include data, prices, indices and contracts developed and published by globalCOAL.

This agreement was scrutinized last week in Global Coal Ltd v. London Commodity Brokers. The court asked itself: is it only globalCOAL’s IP that licensees are undertaking not to use in prohibited ways or does the undertaking extend further, to not using any of globalCOAL’s information and documents? Mr Justice Briggs came to the conclusion that the undertaking related to the Products, not the IP. If London Commodity Brokers had used the Products in brokering trades with parties that were not globalCOAL licensees, it would be in breach of contract even if it had not made use of globalCOAL’s IP.

So when a licensee signs the agreement he finds himself in some ways more restricted than he was before signing it both because much of the ‘Product’ information is in the public domain and because the restricted ‘uses’ go beyond the types of uses that IP law regulates. Briggs J tried to make sense of this by saying that it would be difficult to trade in this market without making use of globalCOAL’s IP, so globalCOAL’s IP ownership gave it de facto control of the Products. This is questionable and hotly contested by the parties: it seems entirely possible for a broker to implicitly refer to SCoTA and globalCOAL’s index without using the trade marks or copying the contract.

Either way, the licensees’ obligations technically extend beyond IP rights. Copyright could never forbid you to refer to a dictionary when you write something. A contract can, perhaps. Moreover, restricting use of the Products was working more efficiently for globalCOAL than enforcing IP: the court found it easier, quicker and cheaper to determine whether a licensee had used the Products than the IP (e.g. copying SCoTA) – and jurisdiction was cleaner too.

But the advantages may not be without their risks. As the judgment draws to a close, it makes a passing reference to ‘potentially serious issues of abuse of dominant position’, but leaves them for another day.