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Visual Artists Ireland – Get Together 2012
 Copyright Law – The Living and the Dead
        (AKA a discussion of the law of copyright,
              commercial exploitation rights and
                          estate planning issues)

                               Pearse Ryan, Arthur Cox
                                         15 June 2012
INTRODUCTION

•   The internet and increased commercial activities of
    museums/galleries mean that copyright has increased in
    importance in the art world.
•   Artists resale rights (droit de suite), a subdivision of copyright,
    implemented across EU/EEA by EU Regulation and harmonised
    across EU/EEA – this brings into copyright scope those who deal
    in/buy/sell certain works of art.
•   Artists increasingly aware of their legal rights (copyright) -
    increase in arguments over (mis)appropriation of artists works.
•   The law of cultural property is a small but established legal
    discipline.



                                                                          1
DISCUSSION OVERVIEW

1.   Copyright
       •   Classes of works protected by copyright (ie the subject matter of
           copyright)
       •   Criteria for protection (ie that they be original)
       •   The identity of the author
       •   The need for fixation/permanence of the work
       •   Qualifying factors for protection
       •   The duration of protection
       •   The identity of first owner of the copyright
       •   The scope of copyright monopoly (i.e. economic rights)
       •   Other rights analogous to copyright
       •   Moral rights
2.   Estate Planning


                                                                               2
COPYRIGHT

Classes of works protected by copyright

• Copyright is a statutory right
• Largely a negative right – the right to prevent others
  from doing unauthorised acts
• As a statutory right there are statutory classes to which
  copyright applies (i.e. there are rules)
• Relevant classes
     • Original literary works
     • Original artistic works

                                                              3
COPYRIGHT

Classes of works protected by copyright – contd.

•   What is an original artistic work?
          Graphic work
            o painting/drawing/diagram/map/chart/plan
            o engraving/etching/lithograph/woodcut/similar work
          Photograph, sculpture, collage
          Works of artistic craftsmanship
          Works of architecture (i.e. building or building model)
•   NOTE: copyright can also subsist in original literary works (written
    works), sound recordings/films/broadcasts and typographical
    arrangements of published editions (i.e. the image on the page)
•   One work can contain a number of different forms of copyright


                                                                           4
COPYRIGHT

Criteria for protection
•   Artistic work must be “original”
•   A low threshold test – effort/endeavour/sweat of the brow rather than
    original intellectual creation
•   So some degree of skill and labour required of artist but test/threshold
    is low
•   With artistic works the skill and labour must apply to what is visually
    significant
•   Thus, mere “slavish copying” even with effort does not confer originality
    and thus copyright but the test/threshold is low and the Courts
    reluctant to act as arbitrars of what does/does not involve originality
    and thus copyright
•   Originality – not original thought (idea) but original application
    (expression)
                                                                                5
COPYRIGHT

Identity of the Author

•   For artistic and literary works – author = creator of work
•   “author” is term used in statute to describe creator
•   Can be sole or joint authorship – collaboration
•   Issues around user-generated – content and online
    artistic collaborations – can challenge the concept of
    “author”



                                                                 6
COPYRIGHT

Need for Fixation/Permanence of Work

• For literary/dramatic/musical works copyright requires
  recording – in writing or otherwise
• No such test/threshold for artistic works
• But in practice courts will require evidence of the work
  AND copyright applies in expression not idea
• Case law on fixation include Hughie Green (TV show
  format (Opportunity Knocks) not recorded), works of
  kinetic art (“Sand Pictures”) where court held no
  copyright as sand not a static medium
                                                             7
COPYRIGHT

Qualifying Factors for Protection

•   Copyright law originally national – development of international
    treaties to confirm: (i) basis for national copyright protection;
    and (ii) harmonisation of enforcement
•   „National treatment‟ – allows artistic work protected by
    copyright in Berne Member State A (e.g. UK) to be enforced in
    B (e.g. Ireland)
•   Various tests including: (i) author is a national, resident or
    domiciled; or (ii) work was first “published” in State A
•   To evidence copyright advisable to add to works a copyright
    notice – © [name of copyright owner] [year of first publication]

                                                                        8
COPYRIGHT

Duration of Copyright Protection

• Life of author + 70 years from end of year of authors
  death
• This term extended from life + 50 years by 1996 EU
  Regulation – extended term of certain copyrights




                                                          9
COPYRIGHT

Identity of First Owner of Copyright

•   Excluding creation in course of employment, copyright will vest in author (aka the
    artist)
•   If work commissioned, similarly copyright vests in author unless written
    assignment of copyright
•   But area more complex than that – in certain circumstances the commissioner
    may claim ownership in equity
•   Authors may allow a copyright and collecting society (e.g. IVARO in Ireland and
    Design and Artists Copyright Society (DACS) in UK) to administer and protect their
    copyrights on their behalf
•   IVARO not owner by assignment of copyright but is authorised to act on behalf of
    author in express areas
•   Overall: copyright is a statutory right, primarily focused on expression (not idea)
    with limited originality threshold - overall an economic right


                                                                                          10
COPYRIGHT

Economic Rights summarised:

•   Right to copy work (including for artistic woks making 2
    dimensional copy of 3 dimensional work and vice-versa)
•   Copying = reproducing work in material form and including by
    electronic means and including transient/temporary copies
•   Right to issue copies to public
•   Right to communicate work to public (e.g by broadcasting/on-
    demand access and including uploading to website available for
    access via internet)



                                                                     11
COPYRIGHT

Scope of Copyright Protection (i.e. economic rights)

• Overall: copyright infringed in work by person who,
  without consent of copyright owner, does or authorises
  another to do, any of the acts restricted by copyright
• e.g. loan to museum who take photograph of work and
  commercially exploit reproduction or allow others to do
  so, without consent/licence of artist/artists representative
  body (e.g. IVARO) other copyright holder (by
  assignment)


                                                                 12
COPYRIGHT
Other rights analogous to copyright and moral rights

•   Industrial Designs – designs reproduced by a manufacturing process and
    “industrially” applied to a product – relationship with “pure” or “fine” art (e.g.
    paintings, drawings and sculpture):
        •   Applied to/incorporated in utilitarian object (e.g. wallpaper, fabrics etc)
        •   Everyday object itself displaying some „artistic‟ element in shape or appearance e.g.
            furniture and consumer products
        •   Overall copyright/industrial design relationship is complex
•   Publication rights – addition to scope of copyright – unpublished works
    (literary/artistic/other) in which copyright expired – applies with EEA related test
        •   25 year right from year of first publication
        •   Publishing is broad term (exhibiting/photography)
•   Rental and lending rights – typically N/A to original version of artistic works
    rented/lent for exhibition
•   Droit de Suite – right of artists/estate to share in resale price of work


                                                                                                    13
COPYRIGHT
Moral Rights

•   Continental law influence – emphasis on cultural value of authorship rather than
    economic rights
•   The personality of author as expressed in work protected as proprietary right
    (alongside exploitation rights)
•   Thus, to mistreat the work is to mistreat the author
•   Recent concept in Ireland/UK law
•   Right inalienable to author – can be waived (in writing) but cannot be assigned
•   Rights:
        •   To be identified as author (right of paternity/to attribution)
        •   To object to certain types of derogatory treatment of work (right of integrity)
        •   To object to fake attribution of authorship
•   Complex to enforce – require prior assertion (e.g. see book liner details) – tell the
    world – name suffices for most artistic works
•   Term of rights question and commenced with CRRA

                                                                                              14
ARTISTS RESALE RIGHT
The Droit de Suite

•   Another continental concept – right of artists and estate to receive % of resale
    price
•   An economic right but with moral right conceptual underpinnings – is inalienable
    by artist (except by will/inheritance law)
•   Inalienable – artist can assign copyright to another but not the right to resale %
•   Applies to artistic works – fine art painting caught but not video work/electronic
    media work – no physical embodiment exists to be bought/sold
•   Small compensation for absence by nature of most art of reproduction revenue
    applicable to other copyright works (e.g. literary works)
•   Role of collection agencies (e.g. IVARO)
•   Right not in existence in USA/Switzerland – auction houses
•   NOTE: applies to resale of work and not work economic rights (i.e. copyright) –
    e.g. sale on of assigned reproduction rights


                                                                                         15
ESTATE PLANNING

Why make a Will?
• To direct who inherits property
      Spouse/civil partner
      Children
      Family/members/friends/charities
• To allow successors easier access to assets
      Financial institutions (bank, credit union etc.)
      Obtain grant of probate (production for 3rd parties
        and executors)
      Admin of estate

                                                             16
WHY MAKE A WILL?

Parties with Legal Rights - Spouses & Children
• Spouse:
     If children – surviving spouse entitled to 1/3 share
     If no children – surviving spouse entitled to ½ share
     Family Home – separate
• Children:
     No entitlement to any specific share
     But entitled to make application under S117 of
        Succession Act
• Separation and Divorce Question

                                                              17
THE WILL

Formalities
•   In writing
•   Signed by testator or party instructed
•   Minimum x 2 independent witnesses
•   Testator minimum 18 years or have been married
•   Testator must be of sound mind
Executors/Trustees
• Recommend minimum of 2
• Ex and trustees can be same or different parties

                                                     18
THE WILL

Adult Children

• Outright gifts – tax threshold at CGT

• Rights under S117 Succession Act 1965




                                          19
TAX
Capital Acquisitions Tax – Gifts/Inheritances
• CAT – 30%
• PA exemption per donor - €3,000

GROUP     RELATIONSHIP TO DONOR                    EXEMPT THRESHOLD 2012

A         son/daughter                                        €250,000

B         brother/sister/niece/nephew/grandchild              €33,208
C         relationship other than A or B                      €16,604

NOTE: above is a very simplified summary of complex areas and other exemptions may
be available depending on nature of property

                                                                                 20
TAX

Donations of Works

• Section 1003 of Taxes Consolidation Act 1997
• Donation of heritage item
• Claim credit of 80% of value against (certain) tax liability
• Taxes covered – income tax, corporation tax, capital
  gains tax, gift tax and inheritance tax
• Minimum open market value on item/collection of items
  of €150,000 and for collections minimum one item must
  have minimum value of €50,000

                                                                 21
22

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Copyright & Legacy Planning (Arthur Cox Representative)

  • 1. Visual Artists Ireland – Get Together 2012 Copyright Law – The Living and the Dead (AKA a discussion of the law of copyright, commercial exploitation rights and estate planning issues) Pearse Ryan, Arthur Cox 15 June 2012
  • 2. INTRODUCTION • The internet and increased commercial activities of museums/galleries mean that copyright has increased in importance in the art world. • Artists resale rights (droit de suite), a subdivision of copyright, implemented across EU/EEA by EU Regulation and harmonised across EU/EEA – this brings into copyright scope those who deal in/buy/sell certain works of art. • Artists increasingly aware of their legal rights (copyright) - increase in arguments over (mis)appropriation of artists works. • The law of cultural property is a small but established legal discipline. 1
  • 3. DISCUSSION OVERVIEW 1. Copyright • Classes of works protected by copyright (ie the subject matter of copyright) • Criteria for protection (ie that they be original) • The identity of the author • The need for fixation/permanence of the work • Qualifying factors for protection • The duration of protection • The identity of first owner of the copyright • The scope of copyright monopoly (i.e. economic rights) • Other rights analogous to copyright • Moral rights 2. Estate Planning 2
  • 4. COPYRIGHT Classes of works protected by copyright • Copyright is a statutory right • Largely a negative right – the right to prevent others from doing unauthorised acts • As a statutory right there are statutory classes to which copyright applies (i.e. there are rules) • Relevant classes • Original literary works • Original artistic works 3
  • 5. COPYRIGHT Classes of works protected by copyright – contd. • What is an original artistic work?  Graphic work o painting/drawing/diagram/map/chart/plan o engraving/etching/lithograph/woodcut/similar work  Photograph, sculpture, collage  Works of artistic craftsmanship  Works of architecture (i.e. building or building model) • NOTE: copyright can also subsist in original literary works (written works), sound recordings/films/broadcasts and typographical arrangements of published editions (i.e. the image on the page) • One work can contain a number of different forms of copyright 4
  • 6. COPYRIGHT Criteria for protection • Artistic work must be “original” • A low threshold test – effort/endeavour/sweat of the brow rather than original intellectual creation • So some degree of skill and labour required of artist but test/threshold is low • With artistic works the skill and labour must apply to what is visually significant • Thus, mere “slavish copying” even with effort does not confer originality and thus copyright but the test/threshold is low and the Courts reluctant to act as arbitrars of what does/does not involve originality and thus copyright • Originality – not original thought (idea) but original application (expression) 5
  • 7. COPYRIGHT Identity of the Author • For artistic and literary works – author = creator of work • “author” is term used in statute to describe creator • Can be sole or joint authorship – collaboration • Issues around user-generated – content and online artistic collaborations – can challenge the concept of “author” 6
  • 8. COPYRIGHT Need for Fixation/Permanence of Work • For literary/dramatic/musical works copyright requires recording – in writing or otherwise • No such test/threshold for artistic works • But in practice courts will require evidence of the work AND copyright applies in expression not idea • Case law on fixation include Hughie Green (TV show format (Opportunity Knocks) not recorded), works of kinetic art (“Sand Pictures”) where court held no copyright as sand not a static medium 7
  • 9. COPYRIGHT Qualifying Factors for Protection • Copyright law originally national – development of international treaties to confirm: (i) basis for national copyright protection; and (ii) harmonisation of enforcement • „National treatment‟ – allows artistic work protected by copyright in Berne Member State A (e.g. UK) to be enforced in B (e.g. Ireland) • Various tests including: (i) author is a national, resident or domiciled; or (ii) work was first “published” in State A • To evidence copyright advisable to add to works a copyright notice – © [name of copyright owner] [year of first publication] 8
  • 10. COPYRIGHT Duration of Copyright Protection • Life of author + 70 years from end of year of authors death • This term extended from life + 50 years by 1996 EU Regulation – extended term of certain copyrights 9
  • 11. COPYRIGHT Identity of First Owner of Copyright • Excluding creation in course of employment, copyright will vest in author (aka the artist) • If work commissioned, similarly copyright vests in author unless written assignment of copyright • But area more complex than that – in certain circumstances the commissioner may claim ownership in equity • Authors may allow a copyright and collecting society (e.g. IVARO in Ireland and Design and Artists Copyright Society (DACS) in UK) to administer and protect their copyrights on their behalf • IVARO not owner by assignment of copyright but is authorised to act on behalf of author in express areas • Overall: copyright is a statutory right, primarily focused on expression (not idea) with limited originality threshold - overall an economic right 10
  • 12. COPYRIGHT Economic Rights summarised: • Right to copy work (including for artistic woks making 2 dimensional copy of 3 dimensional work and vice-versa) • Copying = reproducing work in material form and including by electronic means and including transient/temporary copies • Right to issue copies to public • Right to communicate work to public (e.g by broadcasting/on- demand access and including uploading to website available for access via internet) 11
  • 13. COPYRIGHT Scope of Copyright Protection (i.e. economic rights) • Overall: copyright infringed in work by person who, without consent of copyright owner, does or authorises another to do, any of the acts restricted by copyright • e.g. loan to museum who take photograph of work and commercially exploit reproduction or allow others to do so, without consent/licence of artist/artists representative body (e.g. IVARO) other copyright holder (by assignment) 12
  • 14. COPYRIGHT Other rights analogous to copyright and moral rights • Industrial Designs – designs reproduced by a manufacturing process and “industrially” applied to a product – relationship with “pure” or “fine” art (e.g. paintings, drawings and sculpture): • Applied to/incorporated in utilitarian object (e.g. wallpaper, fabrics etc) • Everyday object itself displaying some „artistic‟ element in shape or appearance e.g. furniture and consumer products • Overall copyright/industrial design relationship is complex • Publication rights – addition to scope of copyright – unpublished works (literary/artistic/other) in which copyright expired – applies with EEA related test • 25 year right from year of first publication • Publishing is broad term (exhibiting/photography) • Rental and lending rights – typically N/A to original version of artistic works rented/lent for exhibition • Droit de Suite – right of artists/estate to share in resale price of work 13
  • 15. COPYRIGHT Moral Rights • Continental law influence – emphasis on cultural value of authorship rather than economic rights • The personality of author as expressed in work protected as proprietary right (alongside exploitation rights) • Thus, to mistreat the work is to mistreat the author • Recent concept in Ireland/UK law • Right inalienable to author – can be waived (in writing) but cannot be assigned • Rights: • To be identified as author (right of paternity/to attribution) • To object to certain types of derogatory treatment of work (right of integrity) • To object to fake attribution of authorship • Complex to enforce – require prior assertion (e.g. see book liner details) – tell the world – name suffices for most artistic works • Term of rights question and commenced with CRRA 14
  • 16. ARTISTS RESALE RIGHT The Droit de Suite • Another continental concept – right of artists and estate to receive % of resale price • An economic right but with moral right conceptual underpinnings – is inalienable by artist (except by will/inheritance law) • Inalienable – artist can assign copyright to another but not the right to resale % • Applies to artistic works – fine art painting caught but not video work/electronic media work – no physical embodiment exists to be bought/sold • Small compensation for absence by nature of most art of reproduction revenue applicable to other copyright works (e.g. literary works) • Role of collection agencies (e.g. IVARO) • Right not in existence in USA/Switzerland – auction houses • NOTE: applies to resale of work and not work economic rights (i.e. copyright) – e.g. sale on of assigned reproduction rights 15
  • 17. ESTATE PLANNING Why make a Will? • To direct who inherits property  Spouse/civil partner  Children  Family/members/friends/charities • To allow successors easier access to assets  Financial institutions (bank, credit union etc.)  Obtain grant of probate (production for 3rd parties and executors)  Admin of estate 16
  • 18. WHY MAKE A WILL? Parties with Legal Rights - Spouses & Children • Spouse:  If children – surviving spouse entitled to 1/3 share  If no children – surviving spouse entitled to ½ share  Family Home – separate • Children:  No entitlement to any specific share  But entitled to make application under S117 of Succession Act • Separation and Divorce Question 17
  • 19. THE WILL Formalities • In writing • Signed by testator or party instructed • Minimum x 2 independent witnesses • Testator minimum 18 years or have been married • Testator must be of sound mind Executors/Trustees • Recommend minimum of 2 • Ex and trustees can be same or different parties 18
  • 20. THE WILL Adult Children • Outright gifts – tax threshold at CGT • Rights under S117 Succession Act 1965 19
  • 21. TAX Capital Acquisitions Tax – Gifts/Inheritances • CAT – 30% • PA exemption per donor - €3,000 GROUP RELATIONSHIP TO DONOR EXEMPT THRESHOLD 2012 A son/daughter €250,000 B brother/sister/niece/nephew/grandchild €33,208 C relationship other than A or B €16,604 NOTE: above is a very simplified summary of complex areas and other exemptions may be available depending on nature of property 20
  • 22. TAX Donations of Works • Section 1003 of Taxes Consolidation Act 1997 • Donation of heritage item • Claim credit of 80% of value against (certain) tax liability • Taxes covered – income tax, corporation tax, capital gains tax, gift tax and inheritance tax • Minimum open market value on item/collection of items of €150,000 and for collections minimum one item must have minimum value of €50,000 21
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