Small Businesses: Are You Infringing On Copyright Laws?

Copyright laws are an important component of a business's intellectual property portfolio, helping to protect and increase the value of its assets. Copyright laws protect the original work of authorship, including photographs, illustrations, films, sound recordings, manuals, forms, and software. While copyright protection is automatic, it's not always easy to navigate, and small businesses can inadvertently break copyright laws. This article will explore the intricacies of copyright laws and provide essential insights for small businesses to avoid costly mistakes and leverage the power of copyright protection effectively.

Using photos, logos, images, or text without permission

So, what does this mean for small businesses? It's simple: if you didn't create the content yourself, make sure you have the permission of the copyright owner before using it. This applies to using images, logos, or text on your website, social media, or marketing materials. If you use someone else's work without their permission, you could be liable for copyright infringement.

To avoid copyright infringement, always seek permission from the owner before using their work. Getting permission in writing, such as through a contract, release form, or email, is ideal. Additionally, be cautious when using images or text that include other companies' logos, as these are often registered as trademarks and require separate permission to use. A safer option is to simply retake photos, excluding any logos or trademarks.

Remember, copyright laws are in place to protect intellectual property, and as a small business owner, you would want the same protection for your original content. Respecting copyright laws and seeking the necessary permissions will help you stay on the right side of the law and avoid costly legal consequences.

Understanding copyright law

Copyright law protects original works of authorship that are fixed in a tangible medium of expression. This includes literary, musical, dramatic, pictorial, graphic, sculptural, audiovisual works, sound recordings, and architectural works. Copyright does not cover ideas, procedures, processes, or systems but instead focuses on the creative expression of these concepts.

Obtaining Copyright

In the United States, copyright protection is automatic once an original work is created and fixed in a tangible form. However, to enforce your rights and take legal action against infringers, you must register your copyright with the U.S. Copyright Office. This registration grants you the exclusive right to reproduce, distribute, and sell copies of your work.

Copyright Duration

Copyright protection typically lasts for the creator's life plus an additional 70 years. This extended duration ensures that your creative works remain protected even after your death.

Avoiding Infringement

As a small business owner, it is crucial to understand what constitutes copyright infringement. Using copyrighted materials without permission, such as popular music in advertisements, can lead to costly lawsuits. Always ensure you have the rights to use any copyrighted works, including photographs, fonts, or software, to avoid legal repercussions.

Understanding Fair Use

The fair use doctrine allows limited use of copyrighted material for purposes like criticism, comment, news reporting, teaching, scholarship, or research. However, determining whether a particular use is fair involves considering factors such as the purpose, nature of the work, amount used, and potential market impact.

Protecting Your Business

To safeguard your small business, familiarize yourself with the basics of copyright law. Understand what can be copyrighted, the process of obtaining copyrights for your original works, and how to properly use and attribute copyrighted materials created by others. By staying informed, you can maximize the value of your business's intellectual property and avoid costly legal disputes.

Copyright registration

Benefits of Copyright Registration

• Strengthened Legal Protection: Registering your copyright creates a public record of your claim to the work and increases your ability to defend it in court. It serves as proof of ownership, which is necessary if you want to take legal action against someone for infringing on your rights.
• Enhanced Enforcement: With a registered copyright, you gain the right to bring infringers to court, seek an injunction to stop violations, and claim damages for financial losses and profits made by the defendant.
• Money Damages and Statutory Damages: Registering your copyright promptly preserves your ability to claim certain types of money damages. For example, attorney fees and statutory damages (ranging from $750 to $30,000 per infringed work) are only available if registration occurs before infringement or within 3 months of the original publication.
• Public Notice: Registering your copyright serves as a public notice, informing others that you are claiming copyright to the work. This can deter potential infringers and help establish your rights.
• Works Made for Hire: If your business involves works created by employees or commissioned from third parties, understanding "works made for hire" is crucial. In these cases, the employer or business commissioning the work is typically considered the author and owner of the copyright.

Process of Copyright Registration

• Application Form: To initiate the registration process, you must complete and submit an application to the U.S. Copyright Office. Different forms are available depending on the type of work, such as literary works (Form TX), visual art (Form VA), performing arts (Form PA), sound recordings (Form SR), and single serials (Form SE).
• Application Fee: A non-refundable application fee is required, typically around $65, which can be paid by check or money order.
• Copies of Your Work: You must provide copies of your work, in any chosen format, to the Copyright Office. They will keep a copy on file as proof of your ownership.

In summary, copyright registration is a valuable step for small businesses to safeguard their intellectual property and creative assets. It enhances your legal rights, deters infringement, and provides a stronger foundation for taking legal action if your rights are violated.

Copyright infringement

Copyright holders have exclusive rights to make copies of their work, distribute it, publish it, display it, perform it, and prepare derivative works based on it. Copyright infringement occurs when these exclusive rights are breached by a third party.

To avoid copyright infringement, it is important to obtain permission from the copyright holder before using their work. If you are unsure about the ownership, you can contact the Copyright Office to conduct a search of its records or search their records yourself. Registering a copyright with the Copyright Office is essential to enforce your rights and take legal action against infringers.

The consequences of copyright infringement can be severe, including civil lawsuits, criminal charges, and substantial monetary damages. It is important for small businesses to understand the basics of copyright law to protect their own intellectual property and avoid infringing on the rights of others.

Fair use

The court system considers four factors when determining if something is protected under fair use:

• Purpose and character of the use: Fair use may apply if the copyrighted work is being used for noncommercial and nonprofit educational purposes. However, this is not a blanket defence, and courts will balance the stated purpose with the other factors.
• Nature of the copyrighted work: The use of a creative work, such as a book, play, or movie, is less likely to be considered fair than that of a factual work, such as a news article or technical journal.
• Effect of use on the market: The court will consider the extent to which the unlicensed use hurts the market for the original work. This includes whether sales have been displaced and the financial impact on the owner if the unlicensed use became widespread.
• Amount used: How much of the work was used in relation to the copyrighted work as a whole? The court will also consider how critical the work used is to the overall body of the original work. For instance, using a small clip from a movie for criticism is likely to be viewed differently under fair use than using the entire film.

It's important to note that crediting or acknowledging the copyright holder while using their work does not absolve you from getting permission, especially if you intend to use it for promotional purposes. Fair use often does not apply to material used for commercial purposes.

Some general scenarios where fair use may apply include:

• Criticism or review of the work
• Commentary or reporting on the work
• Using the work for teaching or educational purposes
• Using the work for scholarly research
• Creating a parody of the work

Even in these cases, only portions or excerpts of the copyrighted work can typically be used without permission. Users are generally only allowed to quote, summarise, or make classroom copies under fair use.

Frequently asked questions