Copyright owners beware! you may have granted a license without even knowing it

COPYRIGHTOWNERSBEWARE!YOUMAYHAVEGRANTEDALICENSE
WITHOUTEVENKNOWINGIT

NADIAPERRI*
ROBIC,LLP
LAWYERS,PATENTANDTRADE-MARKAGENTS

OnJuly12th2010,theFederalCourtofCanada(the”Court”)1dismissedanaction
broughtforthbyacopyrightowneragainsttheallegedinfringersofitscopyrightinlight
oftheformersinabilitytoadducetheevidencerequiredtoprovethatthelatterhad
engagedininfringingactivities.

UnderCanadianlaw,acopyrightownerwishingtobringsuitagainstanalleged
infringermustprovethatthe:
i.latterengagedinanactivityreservedforcopyrightownerspursuanttothe
CopyrightActR.C.S.1985,c.C-42;and
ii.formerdidnotconsenttotheallegedinfringingactivity.

Inthecaseathand,theCourtdetermined,basedontheevidencebroughtforthat
trial,thattheplaintiffhadauthorizedseveralofthedefendantstouseareport
authoredbytheplaintiff.Infact,theCourtopinedthattheplaintiffandseveralofthe
defendantshadcometoaverbalagreementpursuanttowhichtheformergrantedthe
lattertherighttouseitsreportforaspecificpurpose.

Moreover,theCourtconcluded,muchtotheplaintiff’sdismay,thattheplaintiffhadin
factgrantedseveralofthedefendantsanon-exclusivelicensetouseitsreport.

SuchaconclusionwasdrawnbytheCourtinlightofthefactthat:
i.theplaintiffhadneglectedtoputaconfidentialitynoticeonitsreport;
ii.theplaintifffailedtoplacerestrictions(writtenorotherwise)upontheuseofits
report;and
iii.therewerenocopyrightmarkingsontheplaintiff’sreport.

©CIPS,2011*LawyerwithROBIC,LLP,amultidisciplinaryfirmoflawyers,andpatentandtrade-markagents.Published
inthe2011-01-03issueofLESINSIGHTS.Publication062.054
1Nicholasv.EnvironmentalSystems(International)Limited2010FC741,Russell,J.

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TheCourtrendereditsdecisiondespitetheplaintiff’sattemptstoconvincetheCourt
thatthedefendants”understood”whattheywereandwerenotentitledtodowiththe
plaintiff’sreport.

AccordingtotheCourt,thelicensegrantedbytheplaintiffwasalicenseoperatingas
apermissiontodocertainthingsasopposedtoalicensegrantinganownership
interest.Onlythelattermusttobeinwritingtobevalid.UndertheCanadianCopyright
Act,licensesgrantinganinterestinacopyrightmustbeinwritingandsignedbythe
copyrightownerinordertobevalid.Accordingtothecourt,”permissiontodo”
licenses,permitlicenseestousecopyrightedworksforaspecificpurposeandcanbe
givenexplicitlyorcanbeimpliedandcanbeinwritingornot.

“Transferofownership”typelicensesaremorethanmerelicenses.Infact,itisclear
bytheirveryappellationthat”transferofownership”typelicensespermitlicenseesto
acquireaninterestintheintellectualpropertybeinglicensedbylicensorsasopposed
toamererighttouse.UndertheCanadianCopyrightAct,anexclusivelicenseisan
exampleofa”transferofownership”typelicense.

Amongtheotherdifferencesbetween”permissiontodo”licensesand”transferof
ownership”licenses,isthefactthat”permissiontodo”licensesdonotpermit
licenseestoinstitutelegalproceedingsagainstinfringersintheirownname.Sucha
rightishowevergrantedtolicenseesacquiringaninterestincopyrightedworksby
wayof”ownershipinterest”typelicenses.

Therearehoweversomesimilaritiesbetween”permissiontodo”licensesand
“transferofownership”licenses,themostnoteworthybeingthattheyprovide
licenseeswithaviabledefenceininfringementrelatedproceedings.

Whatthenisthemoralofthisstory?Afterall,everystoryhasamoral.Thecaseat
handisnodifferent.Essentially,copyrightownersneedtounderstandtheimportance
oftheiractions–orinthiscase,oftheirinaction,andhowtheiractionsorinactioncan
placetheminaprecarioussituation.

Copyrightownersmustensurethatthepartiestowhomtheywishtograntaccessto
theircopyrightedworksunderstandwhattheyareandarenotentitledtodowiththeir
works.Instructionsupontheuseofcopyrightedworksshouldbereducedtowriting
andexplainedinadocumentaccompanyingtheworksinordertoavoidthe
uncertaintiesof”implicitlicenses”whichoftenleadtodisagreementsconcerningthe
obligationsorrightsoftheparties.Letters,memorandumsofunderstandingand
contractsareallgreatexamplesofdocumentswhichshouldsystematicallybeused
bycopyrightownersinanefforttoensurethattheydonotfindthemselvesina
situationwheretheyhaveunintentionallygrantedalicense.Afterall,it’salwaysbetter
tobesafethansorry.

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vouédepuis1892àlaprotectionetàlavalorisationdelapropriétéintellectuelledans
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etaudit.ROBIC,agroupoflawyersandofpatentandtrademarkagentsdedicated
since1892totheprotectionandthevalorizationofallfieldsofintellectualproperty:
patents,industrialdesignsandutilitypatents;trademarks,certificationmarksand
indicationsoforigin;copyrightandentertainmentlaw,artistsandperformers,
neighbouringrights;computer,softwareandintegratedcircuits;biotechnologies,
pharmaceuticalsandplantbreeders;tradesecrets,know-how,competitionandanti-
trust;licensing,franchisingandtechnologytransfers;e-commerce,distributionand
businesslaw;marketing,publicityandlabelling;prosecutionlitigationandarbitration;
duediligence.
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