1. 1 WIPO - CEDA Sub-regional Symposium on Intellectual Property (IP) For SMEs Suriname - July 18 and 19, 2005 St. Lucia - July 22 and 23, 2005 Jamaica - July 25 and 26, 2005 Dominican Republic - July 28 and 29, 2005

2. 2 The Business of Copyright in a Creative Economy Donna Ghelfi Program Officer Small and Medium-sized Enterprises Division World Intellectual Property Organization

3. 3 This presentation 1. Creativity in a Creative Economy 2.Why is Copyright Relevant to your Business? 3.How can you generate income from your creations protected by copyright? 4. Merchandising 5. Conclusions

4. 4 Owners of copyright have great power to define how their works are used. Important to consider a range of possibilities to commercialize your works. How to make money from your ideas It is possible to simultaneously grant various licenses for one single work: To different users For specific manners of exploitation For limited period of time For specific purpose In limited territory

5. 5 Creativity in an Creative Economy

6. 6 Creativity is the ability to generate something new. It means the production by one or more people of ideas and inventions that are personal, original and meaningful.

7. 7

8. 8 Managing creativity involves knowing, first, when to exploit the non-rivalrous nature of ideas and, second, when to assert intellectual property rights and make ones ideas-as-products rivalrous. These two decision points are the crux of the management process. John Howkins* * Source: The Creative Economy - How People Make Money from Ideas by John Howkins, (pg. 122)

9. 9 What are the Creative Industries? Is there a category confusion? Creative Industries -- largely characterised by nature of labour inputs: creative individuals Adverstising Architecture Design Interactive Software Film and TV Music Publishing Performing arts Copyright Industries -- defined by nature of asset and industry output Commercial art Creative arts Film and video Music Publishing Recorded media Data processing Software Content Industries -- defined by industry production Pre-recorded music Music retailing Broadcasting & Film Software Multimedia services Cultural Industries -- defined by public policy function and funding Museums & galleries Visual arts & crafts Arts education Broadcasting & film Music Performing arts Literature Libraries Digital content -- defined by combination of technology and focus of industry production Commercial art Film & video Photography Electronic games Recorded media Sound recording Information storage & retrieval Source: Cutler & Co/CIRAC, 2003, (see papers by Stuart Cunningham)-- www.creativeindustries.qut.com

10. 10

11. 11 Source:Adapted from paper by Stuart Cunningham, Policy Instruments to realise the economic potential of the cultural industries, CIRAC, Queensland, Australia Why the Creative Industries are Important? Industry cluster is economically significant Important as intermediate inputs Cultural and social force for creating civil society Creative industries Is a high growth sector Fuels creative capital and creative workers Economic multipliers

12. 12

13. 13

14. 14

15. 15 … But creativity is not just the domain of the arts, but that also of the sciences …. Both arts and science are attempting to imagine (to visualize) and describe (to represent) the nature and meaning of reality. The difference comes in why they choose to do so, how they present their imagining to the world, and how they protect its economic value. Put simply, the creativity is the same; the creative products are different. John Howkins

16. 16Source: Europe in the Creative Age Richard Florida and Irene Tinagli, February 2004

17. 17

18. 18 What is Copyright Grants authors, composers, and other creators legal protection for their literary and artistic creations (works); Gives bundle of exclusive rights, which allow owners to control the use of their original works in number of ways and to be remunerated; Also provides moral rights which protect the authors reputation and integrity.

19. 19 A Bundle of Exclusive Rights Economic Rights – Reproduce or make copies; – Distribute to public; – Sell, rent *, lease *, lend, license; – Display or perform to public; – Adapt and Translate (Derivative works); Moral rights** – Right of paternity: of acknowledgement; – Right of integrity: to object against mutilation and/or distortion of work; ** Moral rights cannot be transferred; but may be waived. * Generally applies only to certain types of works: i.e. Cinematographic works; musical works, or computer programs. Assignment or License

20. 20 LiteraryFilms Dramatic Music Sound Recording Artistic Copyright Works

21. 21 Important note: Copyright protects the expression of your idea and not the idea itself The Idea The Work

22. 22 What are Related Rights? There are three kinds of related rights: Rights of performers Actors Musicians Singers Dancers … or generally people who perform in their performances; Rights of producers of sound recordings (also called phonograms) in their recordings (cassette recordings, compact discs, etc.); Rights of broadcasting organizations in their radio and television programs and in Internet broadcasts such as podcasts.

23. 23 song Example, in the case of a song Barry White by Barry White … Copyright … Copyright protects the music of the composer and the words of the writer, and... Related rights … Related rights would apply to.. Can't Get Enough/Just Another Way to Say... (1973/75,IMS Records) the performances of the musicians and singers who perform the song; the sound recording of the producer in which the song is included; the broadcast program of the organization that produces the program containing the song.

24. 24 Copyright Term of protection: Generally speaking: Life of author plus, at least, 50 years. Copyright subsists worldwide: Berne Convention There is no necessity for registration.

25. 25 © Permissions Any person or company wishing to use protected works for most purposes must normally obtain prior authorization from the copyright owner(s). Note: There are free uses or fair use or fair dealing / limitations and exceptions for particular purposes: ã personal use; ã quotations; ã parodies; ã criticism; ã use for teaching purposes; ã news reporting; ã scientific research; ã libraries; ã certain cases of reproduction.

26. 26 Why is Copyright Relevant to your Business?

27. 27 1. Control of Commercial Exploitation Copyright protection will enable your business to control the commercial exploitation of its valuable creations, such as... – computer programs – commercial databases – advertisements – technical drawings – instruction manuals – films – musical compositions – magazines – photographs – architectural works – catalogs – websites – video games – sound recordings – television and radio programs or any other creative works

28. 28 Copyright is a tradeable asset that may be owned, bought and sold the same as other types of property. It can be an important long-term value for your business if the work is of quality or is a commercial success. 2. Derive Income

29. 29 Copyright is crucial for the protection of works emerging out of new areas of technology, such as … Multimedia works that combine software technology with copyright protected content, and … all kinds of digitized works that may be commercialized via the Internet. 3. Protecting New Areas of Technology

30. 30 Most businesses use copyright materials owned by others. For example … You may use computer software or databases created by others. …You may use in your companys catalog or on your website photographs taken by others. Using other peoples creations requires, in most cases, prior permission from the copyright owner. 4. Using Works Owned by Others

31. 31 Companies that own copyright assets may find creditors more willing to extend a line of credit secured by a security interest in such assets. For example, a library of distribution rights to films. 5. Attract Financing

32. 32 6. Effective Marketing and Advertising Enticing marketing or advertising materials requires use of creative text, artwork, logos, etc., which are all protected by copyright. In the digital environment, companies are turning to the Internet and use copyright protected works on their websites to get noticed, build loyalty and ultimately boost sales. short movies, online music, interactive games, contests and other new marketing ploys

33. 33 7. Avoid Problems or Financial Loss By respecting the copyright of others, your business will be able to avoid being disrupted or incurring a loss for violating the copyright owned by others.

34. 34 8.Effective IP Management and Business Strategies Copyright protected works may be used as industrial designs or trademarks …. therefore effective protection and management of the underlying copyright may be a precondition for effective management of the resultant industrial design or trademark.

35. 35 In general, the objective of copyright is to compensate the creator for his creative efforts so that the process of creation becomes sustained over time. This helps drive the growth and development of an economy. By promoting creation, copyright also serves to benefit the public, enhance user access and increase consumer welfare. 9. Consumer Welfare

36. 36 How can you generate income from your creations protected by copyright?

37. 37 There are many ways to commercialize your original and/or creative works you may simply sell the original works that are protected by copyright, or make copies or reproductions and sell the copies; you may allow someone else to reproduce or use the works; this can be done by licensing your economic rights over the works; you may also sell (assign) your copyright over the works, either entirely or partly.

38. 38 Commercializeyourself 1. Commercialize your work yourself Exploit your works individually : Simply sell the products; Make copies of the products and sell them; Reproduce the works on t-shirts, posters, etc.; Exhibit the works in museums, craft exhibitions, fairs, etc.

39. 39 If you sell your work, do you lose your IPRs over it? The mere sale of a copy of a work protected by copyright -- does not automatically transfer copyright to the buyer. e.g. a painting or a manuscript.

40. 40 The property rights over a physical object (work) are completely independent from the IP rights of the creator. The buyer of a work acquires the physical object, but not the copyright, design rights, etc. over the work. IP rights in the work remain with the creator unless he expressly assigns it by written agreement to the buyer.

41. 41 Buyer cannot make copies and sell them … reproduction right. Buyer cannot print the painting on postcards and sell them … reproduction right. Buyer cannot exhibit the painting in art gallery or other public place …exclusive right to show the work in public. Buyer cannot alter the work in a way that is prejudicial to the honour or reputation of the author … moral right to object to derogatory treatment. Example Example : Artist sells his painting …

42. 42 You can transfer all or part of your exclusive rights to someone else… – Assignment – Irrevocable transfer of the owners entire interest in all or some part of the intellectual property – In writing + signed – May be partial (type of right / time) Buyer becomes the new owner of the transferred rights …. copyright, trademark, design, etc. Sell 2. Sell your IP Right(s)...

43. 43 Buyer can exhibit the painting, reproduce it on postcards, take a photograph of it, etc. Artist cannot reproduce it on postcards, etc. without explicit authorization from the copyright owner. BUT: Moral rights remain with the artist. »No derogatory treatment. »Right to be identified as author. Example Example: Artist sells copyright in his painting...

44. 44 Artist can authorize someone else to exploit his/her IP rights, against payment …. – i.e. through the granting of a license. Authorized person (licensee) can only use the rights in the specific form and under the specific conditions allowed by the license … – i.e. only one reproduction, in specific magazine, in color, with a biography of the artist, etc. 3. Authorize 3. Authorize someone else to reproduce or use your work

45. 45 License Transfer of rights Artist (licensor) retains the IP rights –Artist can authorize several people to exploit the works simultaneously –Exclusive vs. non-exclusive licenses Licensee does not acquire any ownership of the IP rights Remember

46. 46 When should you consider licensing or selling your copyright over a work? The exclusive rights can be divided and subdivided and licensed or sold to others in just about any way you can imagine: by territory; time; market segment; media content; etc. This means you can grant different licenses, to different persons or companies, at the same time.

47. 47 Income: Can generate lucrative fees and royalties; New markets: Allows business to enter into new product categories or in new geographical areas in a relatively risk-free and cost-effective way; Marketing tool: Increases the business exposure and recognition. Why should a business consider licensing?

48. 48 Copyright… … in the artwork... Consider licensing if … you dont want to be involved in manufacturing; you dont have capacity to produce more items; you dont want to produce in your domestic or foreign market (in Dominican Rep. or abroad); you dont have capacity to distribute elsewhere; you want to benefit from the better reputation of a partner

49. 49 As a general rule, the key to getting most out of your copyright is: … to retain ownership: License your rights, rather than selling them; … to determine your licensees concerns: Talk licensees out of broad licenses, and talk licensees into exactly what they need. Generally, the more specific and restrictive the license, the more favorable to you; … to license, to re-license, and to re-license: When you grant a non-exclusive license to a client, your copyright is not diminished or consumed. Your copyright remains intact and full in force to be licensed again, and again, and again.

50. 50 Merchandising

51. 51 Merchandising is a form of marketing whereby IP rights (typically trademarks, industrial designs and copyright) are used upon corresponding goods. Generally done through licensing : No assignment of rights, only an authorization to use the work in a specific manner. What is Merchandising?

52. 52 What is Merchandising? … Strip cartoons, actors, pop stars, sports celebrities, famous paintings, buildings, statutes, and many other images appear on a whole range of products, … …. such as... Õ T–shirts, canned foods, Õ toys, soft drinks, Õ stationary items, childrens ready meals, Õ coffee mugs, dairy products, Õ posters, confectionery, Õ cereals, key chains, etc.

53. 53 Examples of Merchandising Paintings… Picasso Botero

54. 54 Panda from the WWF Fido Dido < Joanna Ferrone and Susan Rose Drawings and cartoons …

55. 55 Architectural works … Eiffel Tower, Paris Atomium, Brussels Taj Mahal, India

56. 56 Guerrillero Heroico < Alberto Korda (1960) Key rings, agendas, hats, socks, bed linen, kitchenware, etc. However, Alberto Korda received only very little financial remuneration for the use of his photograph Photographs …

57. 57 –For the artist: His work is promoted, and will gain recognition and value in the market Receives additional and continuing remuneration (+ heirs) Maintains ownership over his rights and controls the uses of his works –For the merchandisor: Can use the attractiveness of a work to promote the sale of his products Advantages of Merchandising

58. 58 Case Study: Mary Engelbreit Mary Engelbreit is known throughout the world for her colorful and intricate designs, and has become a pioneer for art licensing. Beginning: "drawing to order" for free-lance clients. Wanted to be a children's book illustrator. Went to New York "mild reception" from publishers Suggestion: illustrating greeting cards

59. 59 Several well-known card companies bought her designs, and sales were brisk.

60. 60 Other companies were anxious to merchandise Mary's distinctive artwork on a wide range of products including calendars, T-shirts, mugs, gift books, rubber stamps, ceramic figurines and more.

61. 61 1986: Mary Engelbreit greeting cards had blossomed into a million-dollar-a-year business. She decided to license her cards to Sunrise Publications to free up more time for her art and to grow her business in other areas. Mary Engelbreit Studios now has contracts with dozens of manufacturers who have produced more than 6,500 products in all. Mary takes extreme care in choosing only the best companies to work with and goes to great lengths to make certain that her artwork is reproduced as faithfully to her original work as possible.

62. 62 2001: Mary saw her original dream come true when she signed a contract to illustrate children's books for publishing giant HarperCollins. When Mary was young, people told her that being an artist was not a realistic way to make a living, but Mary Engelbreit was never one to be easily discouraged. I believed in myself, she says, and now I'm living my dream. Source: www.maryengelbreit.com

63. 63 Conclusion

64. 64 Owners of copyright have great power to define how their works are used. Important to consider a range of possibilities to commercialize your works. How to make money from your ideas It is possible to simultaneously grant various licenses for one single work: To different users For specific manners of exploitation For limited period of time For specific purpose In limited territory

65. 65 Protect your IP Protect your IP Choose the right protection Choose the right protection Beware of overlap provisions Beware of overlap provisions But Above All ….

66. 66 Thank You Donna Ghelfi Program Officer Small and Medium-sized Enterprises Division World Intellectual Property Organization