Saturday Brain Storming Thought (93)26/12/2020


Copyright refers to the legal right of the owner of intellectual property

Copyright means right to copy

This means that the original creators of products and anyone they give authorization to are the only ones with exclusive right to reproduce the work

Copyright with example

Copyright is a legal means of protecting an author’s work

It is a type of intellectual property that provides exclusive publication, distribution and usage rights for the author

Many different types of contents can be protected by copyright

1) music

2) books

3) manuscripts

4) fims

5) fashion designs

6) training manuals

7) software

8) literary work

9) performance

10) paintings etc

Types of works protected by copyright in India under section 13, chapter III of the copyright act 1957

1) literary works

2) dramatic works

3) musical works

4) artistic works

5) cinematograph films

6) sound recording

Type of work not protected in copyright in India

1) ideas, methods or systems

2) commonly known information

3) names, titles, short phrases or expressions

4) choreographic works

5) Fashion

Elements required for copyright

1) fixation

2) originality

3) expression

Avoiding copyright infringement

If you ultimately agree with an article that has been written, take the main idea and right your own article in your own words

Don’t copy a blog post, change a few words, and pass it off as your own content

Benefits of copyright valuation

The value of copyright can be a significant factor in determining reasonable royalty rates for licensing agreements

The value of the copyrights can be an important factor in determining damages in cases of copyright infringement

They are of value when selling a business

Copyright valuation approaches

1) Income approach uses estimates of future estimated economic benefits or cash flows and discounts them, for the associated time and risks involved, to a present value

Each type of copyright has key sensitivities to consider such as duration of the copyright and the expected lifetime of its creator

What drives the value of the copyright ie new releases, buying the copyright valuation

2) Market approach uses market based indicators of value

For copyright this can be transactions involving selling, buying, franchising or licensing copyright and related IP rights, which are often in practice bundled together

3) Cost approach – the historic cost of creating a copyright and the estimated cost and time that would be required to create equivalent or replacement copyright

Copyright royalties and relief from royalty method

For copyright an important analysis for a valuation is the assessment of reasonable royalties that would be payable under a licence / license agreements

Intangible business assesses in the contest of the licensing strategy being employed and analysing complex elements including the inclusion of other commercial rights and obligations

The relief from royalty method has the advantage that it is based on the income approach

The fundamental premise of commercial value, and also uses components which can be benchmarked or compared under the market approach, with license / license agreements

It is therefore a rounded and commercial method

Advantages of copyrights

1) prevention of monetary loss

2) legal protection

3) pre-emptive measure

4) the incentive to create

5) protecting reputations

6) prestige

violation of copyright registration is commonly known as “piracy” in india

Disadvantages of copyrights

1) limited dissemination

2) limited protection

3) limited duration

4) costly

Registrar of copyright

1) part 1 – literary works other than computer programs

2) part 2 – musical works

3) part 3 – artistic works

4) part 4 – cinematography films

5) part 5 – sound recording

6) part 6 – computer programs, tables and compilations

Procedure of copyright registration

1) application in the format of FORM IV has to have to be sent to the registrar along with the requisite fees

2) separate application has to be made for separate works

3) every application has to be signed by the applicant as well as an advocate in whose favor a vakalatnama or a POA has been executed

4) the registrar will issue a dairy no and then there is a mandatory waiting time for a period of 30 days for any objections to be received

5) if no objections received within 30 days, the scrutinizer will check the application for any discrepancy is there, the registration will be done and an extract will be sent to the registrar for the entry in Register of Copyright

6) if any objection is received, the examiner will send a letter to both the parties about the objections and will give them both a hearing

7) after the hearing, if the objections are resolved the scrutinizer will scrutinize the application and approve or reject the application as the case may be

the entire copyright filing is done online, and hence it can be done from anywhere in the country

The copyright head office is in Delhi

Registration will take 12 months after receiving a diary number

Documents required for copyright registration

1) name, address and nationality of the applicant

2) name, address and nationality of the author of the work

3) nature of the applicants interest in the copyright – whether the applicant is the author of the work or the representative of the author

4) copies of original work

5) ID proof of the owner and incorporation certificate if it is for business

Nature of copyright registration work

1) class and description of the work

2) title of the works

3) language of the work

4) date of publication

Indication of copyright

The Symball © (the letter C in a circle), or the word copyright or the abbreviation “Copr”

The year of first publication of the work and the name of the owner of copyright in the work

Copyright period

General rule is that copyright lasts for 60 years

In the case of original literary, dramatic, musical and artistic works the 60 year period is counted from the year following the death of the author

Rights of copyright owner

1) right of reproduction

2) right of adaptation

3) right of communication to the public

4) right of public performance

5) right of paternity and integrity

6) right of distribution

Sale or transfer of copyright registration

A copyright registration can be sold, transferred, gifted and franchised with due consent from the owner of work

Income approach method for copyright valuation

1) Incremental income analysis

The estimation of the difference between

a) the amount of income that the owner/operator would generate with the use of the subject copyright

b) the amount of income the same owner/operator would generate without the use of the subject copyright

2) Profit split income analysis

The estimation of the total income that the owner/operator would generate from the use of the copyright where the total income estimate is allowed to (or split between)

a) The copyright and

b) all of the other tangible and intangible assets that contribute to the generation of the owner/operator total income estimate

3) Residual (or excess) income analysis

The estimation of the residual owner/operator income with the ownership/operation of the copyright

This residual income analysis is accomplished by first estimating the total owner/operator income

The analyst then identifies and values all the owner/operator tangible and intangible assets

A fair rate of return, which represents a capital charge or an economic rent, is then assigned to each category of the tangible and intangible assets

The analyst would then subtract the capital charge on contributory assets from the total owner/operator income estimate

Finally, the residual or excess income is assigned to the copyright

Compiled by

Avinash Kulkarni

Chartered Engineer
Govt Regd Valuer
IBBI Regd Valuer

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