Understanding Movie Copyright Laws And Their Applications

Movies are complex works with copyrights held by a large number of contributors, from the scriptwriters to the musicians. As such, there are many copyright laws that apply to movies. In the US, motion pictures have been protected under American copyright law since 1912. The Federal Copyright Act specifies that movies can be used publicly if they are properly licensed. However, the rental or purchase of a movie does not carry the right to exhibit it outside of one's home. This means that a separate public performance license from the copyright owner is usually required. This license is necessary for all public performances, regardless of whether admission is charged or whether the institution is commercial or non-profit. Non-compliance with the Copyright Act can result in significant penalties, including fines of up to $250,000 and jail time.

Public performance

Copyright laws are an important aspect of the movie industry, and understanding the rules around public performance is crucial. So, what exactly constitutes a "public performance"?

A public performance refers to the exhibition of a movie outside of someone's home. This means showing a movie to people beyond one's family or a small circle of friends, or in a place accessible to individuals outside this personal network. It's important to note that even showings in "semi-public" places like clubs, lodges, factories, summer camps, and schools are considered public performances and are subject to copyright control.

The Federal Copyright Act is clear on this matter: only the copyright owner holds the exclusive right to perform their copyrighted work publicly. Therefore, renting or purchasing a movie does not grant the right to exhibit it publicly. To do so, a separate "public performance" license from the copyright owner is typically required. This license can be obtained by renting the movie from a distributor authorised to grant such licenses or by contacting the copyright holder directly.

There are, however, some exceptions to the license requirement. For instance, if the movie is being shown as part of "face-to-face teaching activities" in a classroom or similar setting devoted to instruction, and you possess a legitimate copy of the film, a license may not be necessary. Additionally, if the film is in the "public domain", a license may not be required, although determining whether a film falls into this category can be challenging.

The consequences of violating copyright law through unauthorised public performance of a movie can be severe. It not only deprives the cast and crew of their rightful compensation but also discourages future creative endeavours. Those found guilty of copyright infringement may face negative publicity, substantial fines, and even jail time.

Licensing

Copyright laws for movies are detailed in the Federal Copyright Act, which specifies that movies can be shown publicly if they are properly licensed. However, the rental, purchase, lending, or download of a movie does not grant the right to exhibit it outside of one's home without a separate license. This includes showings in semipublic places such as clubs, lodges, factories, summer camps, and schools.

A public performance license is required to show a movie outside of one's home, regardless of the number of people attending the screening. This license can be obtained from a licensor such as Swank Motion Pictures or directly from the studio. The license is only valid for a specific, designated time frame.

The cost of a public performance license can be several hundred dollars, especially for more recent movies. This license ensures that the entire cast and crew of the film receive their rightful compensation for their work. Without this revenue, they may be less inclined to invest their time and resources in future film projects.

It is important to note that copyright licensing rules apply to both for-profit and not-for-profit institutions, regardless of whether an admission fee is charged. Non-compliance with the Copyright Act is considered infringement and can result in significant penalties, including fines of up to $150,000 per work infringed, in addition to court and attorney fees.

There are some exceptions to the requirement of a public performance license. For example, if the movie is being shown as part of "face-to-face teaching activities" in a classroom or similar setting, and the copy of the movie is legitimate, a license may not be necessary. Additionally, if the movie is in the "public domain," a license may not be required. However, determining whether a movie is in the public domain can be challenging, as even older films may still be protected by copyright laws.

Copyright exceptions

Face-to-Face Instruction Exception

The copyright law permits the performance or display of legally licensed/purchased works for strictly and directly pedagogical purposes relevant to the course in face-to-face classes at nonprofit, accredited schools. This includes showing a film, playing music, performing a play, projecting images, and other types of performances and displays of copyrighted works in the classroom, as long as the work was lawfully acquired.

TEACH Act - Online/Distance Instruction Exception

The TEACH Act permits the use of copyrighted works in online classes but only under specific circumstances. One of the requirements is to include a copyright statement in the course material that is available to all students.

Fair Use Exception

The fair use exception allows for the use of copyrighted works without the owner's permission in certain cases. This includes using copyrighted material for criticism, commentary, news reporting, teaching, scholarship, or research. However, it is important to note that fair use has limitations and does not permit unrestricted use of copyrighted works.

Public Domain

Works in the public domain are not protected by copyright and can be used without restriction. Works published prior to 1924 are usually considered part of the public domain. Additionally, films shot by US government agencies and employees, such as NASA's Apollo 11 footage, are also in the public domain.

Creative Commons Licenses

Some copyright holders make their works available for others to use without requiring compensation, as long as certain requirements are met. Creative Commons licenses outline the specific conditions for using these works.

Fair use

Copyright law protects original works of expression, including movies and other audiovisual works. The Federal Copyright Act specifies that copyrighted materials like movies can be used publicly if properly licensed. However, the rental or purchase of a movie does not carry the right to exhibit it outside of one's home.

Section 107 of the Copyright Act lists four factors for courts to evaluate in determining whether the unlicensed use of a copyrighted work qualifies as fair use:

• The purpose and character of the use: Courts examine whether the new work transformed the material taken from the original copyrighted work. They also evaluate whether the use is commercial or for nonprofit educational purposes.
• The nature of the copyrighted work: Courts evaluate whether the original copyrighted work is primarily factual or creative. For example, a creative work like a film may have stronger protection than a technical article.
• The amount used and its importance to the whole: Courts consider both the quantity and quality of what was taken from the original copyrighted work. Generally, the less of the original work that is used, the better. However, even a small portion of the original work can be infringing if it is the "heart" or most important part.
• The effect of the use on the market for the copyrighted work: Courts look at the economic impact of the unlicensed work on the original copyrighted work. If the unlicensed work reduces demand for the original work by acting as a substitute, this factor could weigh heavily in favour of the copyright owner.

It is important to note that fair use is determined on a case-by-case basis, and asserting fair use should be done as a last resort. In most cases, it is advisable to obtain permission or pay a license fee to use copyrighted material rather than risk expensive litigation.

Penalties for infringement

Copyright infringement is a serious violation of intellectual property rights. It occurs when someone uses, reproduces, distributes, or displays copyrighted material without the permission of the copyright owner.

Civil Penalties for Copyright Infringement

The civil penalties are the most common consequences of copyright infringement and are enforced through lawsuits initiated by the copyright owner. These include:

• Actual Damages: The copyright owner can claim monetary damages, which typically include lost profits or the fair market value of the copyrighted work.
• Statutory Damages: These are fixed amounts set by law for each infringed work, eliminating the need to prove actual damages. These can be up to $30,000 per work infringed and, if willful infringement is proven, that amount may be increased to up to $150,000 per work infringed.
• Injunctions: Court orders prohibit the infringer from continuing the unauthorized use of copyrighted material and other original or derivative works.
• Attorneys' Fees: In some cases, the court may order the infringing party to pay the costs and attorneys' fees of the copyright holder.

Criminal Penalties for Copyright Infringement

In cases of severe violations, willful infringement of copyrights can lead to criminal charges, including:

• Fines: Those convicted of criminal and willful copyright infringement may face substantial fines and penalties based on the severity of the infringement and the financial gain (infringer's profits) made.
• Imprisonment: Individuals found guilty of deliberate and willful copyright infringement may face imprisonment, especially if involved in large-scale commercial operations. Imprisonment can be up to five years for a first offense and up to 10 years for repeat offenders.
• Seizure and Forfeiture: Authorities may seize and forfeit equipment or materials used in the commission of copyright infringement.

Frequently asked questions