In the process of running a business, many directors not only take on a management role but also directly participate in creating intellectual products such as designs, software or media content. These works both demonstrate the personal capacity of the leader and are closely linked to the company’s operations. Therefore, questions have arisen about determining the subject holding ownership of works created by the director. To understand this issue, please follow the article of VCD below.
1. Concept of author, copyright owner?
According to Clause 2, Article 4 of the Law on Intellectual Property 2005 (amended and supplemented 2009, 2019), copyright is the right of an organization or individual to the work they create or own. In which, the subject of copyright includes literary, artistic, and scientific works; the subject of rights related to copyright includes performances, audio recordings, video recordings, broadcast programs, and encrypted satellite signals.
According to Clause 1, Article 13 of the current Intellectual Property Law, organizations and individuals whose works are protected by copyright include the person who directly creates the work and the copyright owner as stipulated in Articles 37 to 42 of this Law.
Thus, the author and the copyright owner are two groups of subjects protected by law. In which, the author is the person who directly creates a part or all of the literary, artistic, or scientific work and has personal rights to the work.
The copyright owner is an organization or individual holding one, some or all of the property rights specified in Article 20 of the Law on Intellectual Property, such as the right to copy, distribute, communicate or create derivative works. The owner can be the author himself, or an organization or individual who is assigned the right or invested in creating the work.
2. If the director creates a work, does the company or individual own the copyright?
In an organization, the director is the head of the enterprise, the highest leadership position and has the main responsibility for operating and managing the enterprise’s activities. They head departments and have the authority to make strategic decisions to achieve the company’s goals. The director position is usually a person with experience and excellent leadership capacity. According to the provisions of Clause 24, Article 4 of the Law on Enterprises 2020, the director is one of the enterprise managers.
First of all, if the director creates the work as an individual, that is, the work is formed from the director’s own ideas, time and effort, not within the company’s assigned tasks, nor using the company’s funds, equipment or human resources, then the director is both the author and the copyright owner. In this case, all personal rights and property rights to the work belong to the director personally. The company has no right to exploit, use or distribute the work, unless there is a written transfer or license agreement between the two parties.
On the contrary, in the case where the work is created in the process of performing work according to the company’s assigned tasks, or using the company’s resources such as working time, equipment, finance or support staff, then according to the provisions of Article 39 of the Law on Intellectual Property, the company will be the copyright owner, and the director will be recognized as the author. This means that the director still has moral rights (such as being named as the author, protecting the integrity of the work), but property rights including the right to copy, distribute, publish, rent, or make derivative works belong to the company. This provision is to ensure fairness for the organization that has assigned the task and invested resources in the creative process.
In addition, the law also allows the parties to agree on ownership. For example, the company can transfer ownership of the work to the director or vice versa, depending on the purpose and interests of each party. This agreement should be clearly expressed in writing to avoid disputes arising later when the work is commercially exploited.
Thus, determining the subject of copyright ownership in the case of a director creating a work cannot be based solely on the position or labor relationship, but must consider the context, conditions of creation, resources used and the agreement between the parties. Only when these factors are clearly identified can we accurately confirm the ownership of the director or the company, ensuring compliance with the provisions of the law and the legitimate rights of the parties involved.
Above is the article “ If the director creates a work, does the company or individual own the copyright?” that VCD sends to you. We hope this article is useful to you.
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