Corporate Loan-Outs and Copyright Considerations

If your media company is hiring a creative individual through their loan-out company the following blog article is a beneficial source of information:

Copyright Reversions and Loan-Out Corporations

What this basically says is that if the producer is hiring someone through a loan-out corporation the producer needs to consider:

“If the Composer is not an employee of the loan-out and there is no contract in place between the Composer and the loan-out, or there is a contract which expressly states that the Score is not a WMICE, then the Score is not a WMICE and it is subject to the reversionary interest. Meaning that the rights in the Score will revert to the Composer’s estate/heirs twenty-five years after the Composer dies.”

“If the Composer is an employee of the loan-out (which would make the Score a WMICE), or there is a contract between the Composer and the loan-out which has the effect of making the Score a WMICE, then the Score is not subject to the reversionary interest, and the producer’s ownership/control of the Score is not affected by the statutory reversion.”

 

 

get a copy of either:

a) an employment agreement between the person being hired and his/her loan-out corporation that says, “work made in the course of employment” belongs to the corporation

we would need to look at whether there is a contract in place between the Composer and the loan-out. If there is a contract, we need to determine whether it is “contract of service” (which would make the Score a WMICE), rather than a “contract for services” (which would mean the Score is not a WMICE).

If the Composer is an employee of the loan-out (which would make the Score a WMICE), or there is a contract between the Composer and the loan-out which has the effect of making the Score a WMICE, then the Score is not subject to the reversionary interest, and the producer’s ownership/control of the Score is not affected by the statutory reversion.

Published by

Travis Cross

Artist and Entrepreneur. Founder of not.tv

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