Why You Should Consider Copyrighting Your WorkWhether you are a startup or a large, established company, if you are developing creative work, copyright protection can be an important part of your overall IP strategy.

ByMital Makadia

Opinions expressed by Entrepreneur contributors are their own.

There are lots of moving pieces when it comes to building a startup. And while it's easy to get caught up in the whirlwind of bringing a new product or service to life, failing to protect thisintellectual propertycan have major consequences: It can prevent you from staving off copycat products, expose you to potential lawsuits and lower the valuation investors/acquirers would put on your company.

Owning copyright provides a certain set of exclusive rights, including the right to copy the work, the ability to create derivative works and the rights to distribute, publicly perform and/or display the work. All of these rights exist for the duration of the copyright ownership.

Whether you are a startup or a large, established company, if you are developing creative work,copyright protectioncan be an important part of your overall IP strategy.

What is copyright?

Copyright is a type of intellectual property protection afforded to "original works of authorship" and is protected under federal law. Whether your original work is computer software documentation, website content, artwork, book or song, you can potentially secure a copyright to protect it.

While some courts have referred to the work as needing a "creative spark," to be considered for copyright protection, there must be a tangible medium, meaning the work must also be fixed in a permanent medium so that it can be perceived, reproduced or communicated to others. In other words, you can't copyright an idea in your head. You need to express it in a book, on a computer or something like that.

Related:A Basic Guide To Intellectual Property For Every Entrepreneur

How long do copyrights last?

Like patents, copyrights last for a limited period of time. Generally, the copyright lasts for the life of the author plus 70 years. The copyright can also last for 95 years from publication or 120 years from the creation of the work, whichever is earlier.

However, the author of the copyrighted work that is licensed or assigned to a third party (like your startup) may have the right to terminate the license or assignment 35-40 years after its creation.

So, how do you obtaincopyright protection? It's simple. Create an original work, and fix it in a tangible medium.

How does your startup become the owner of copyright in the work created by employees/contractors? It depends. There are two ways a company can become the owner of copyright to works created by employees/contractors:

  1. as a work made for hire

  2. by assignment

Generally, when an employee creates a copyrighted work within the scope of their employment, it is considered a "work made for hire." As a result, the employer is the legal author for copyright purposes. But it may not always be clear whether an employee created something within the scope of their employment. So, it is not necessarily the case that just because your employee developed something for your startup that thestartup owns the copyright.

For contractors, a narrow set of types of works can be deemed works made for hire, but it requires a written agreement with the contractor. Many types of works are simply not permitted to be deemed works made for hire under copyright law.

If a startup wants to own the copyright to a work that is not a work made for hire, the author can assign the copyright to the startup. A copyright assignment must be evidenced in writing.

The upshot is you should have a written agreement to confirmcopyright ownership for your startupwith employees and contractors. For employees, it is necessary, because it may not be clear that the copyright material was made within the scope of their employment (and thus, a work made for hire). For contractors, it is always necessary to have a written agreement (whether it's an assignment or a work made for hire).

One note: Remember how we noted above that if someone assigns a copyright to your startup, they may be able to terminate that assignment in 35 or 40 years. That's a potential risk to your copyright ownership. That right to terminate an assignment doesn't apply to works made for hire.

Business owners should always make sure their service providers are "assigning" their copyright interest to the IP they create. The Copyright Act requires any copyright assignment to be in writing.

Related:Someone Stole Your Design? 3 Ways to Fight Back.

Do I need to register my copyright?

There is no registration required for copyright protection. However, there are major benefits to copyright registration, an easy and uncomplicated process.

All you have to do is file an application with the Copyright Office and submit a copy of the work.

In addition to creating the assumption of validity, registration is also required to sue someone forcopyright infringement. Technically, you can even register right before a lawsuit. But you can't get an award of attorneys fees if the infringement occurred before registration. You also can't get statutory damages unless infringement happened after registration, but it's important to note that you can get actual damages (i.e., lost profits) for infringement occurring before registration. But those can be hard to prove. The Copyright Act provides for thousands of dollars in statutory damages that are easier to get in most cases.

Are there exceptions to copyright protection?

Yes, even if you own a copyright, others can still make some use of your work. There are"fair use" defensesavailable to third parties who want to use copyrighted works, though these are most powerful in educational settings. Fair use is a very fact-specific area and one that you should discuss with a lawyer.

Someone can independently create a work that is remarkably similar to yours but not infringe on your copyright. Copyright infringement can be proven only by showing that the "infringer" copied your work.

记住——你不能版权的想法。所以,because a work embodies ideas you developed, it does not mean that work infringes on your copyright.

The bottom line is: Copyright protection is a great way for startups to protect their intellectual property and creative works. Whether you are seeking copyright protection for source code or other programs and work that are susceptible to infringement, legallyprotecting your creative materialsprovides an added safeguard for your work and is worth considering.

Related:如何Proactively Protect Your Intellectual Property Online

Mital Makadia

Entrepreneur Leadership Network® Contributor

Partner at Grellas Shah LLP

Mital Makadia is a partner at Grellas Shah LLP and co-founder of startup dispute mediation service Solvd4. A TechCrunch-verified lawyer, she provides counsel on a variety of corporate and transactional matters, equity financings, M&A and commercial and intellectual property for her clients.

Related Topics

Thought Leaders

5 Books Every Entrepreneur Should Read Before Starting a Business

A selection of books that helped me found and scale a startup from a $10,000 line of credit to a billion-dollar business

Business News

KFC Has Been Dethroned as No. 2 Chicken Chain in the U.S. — Here's Who Took Its Spot

A viral chicken sandwich led to an increase in market share.

Business News

Drew Barrymore's Writers Are Not Returning Amid Controversy, Despite End of Strike

The new season is slated to return to air on October 16.

Business News

“我们睡不好了”:Airbnb主机解决s With 'Tenant From Hell' Who Refuses to Leave

An Airbnb guest rented a guesthouse for a long-term stay in 2021 but has since remained in the unit for over 540 days — without paying rent.

Business News

'This Is a Serious Problem': Mr. Beast Slams AI Deepfake Asking Fans to Donate Money to Win a New iPhone

The influencer's likeness was used without his permission in a fake contest advertisement encouraging fans to donate $2 to win an iPhone 15.

Business News

Judge Dismisses Lawsuit Accusing Wendy's and McDonald's of Size Exaggeration in Ads

The judge wondered if the plaintiff had even seen the advertisements in question.