Full question:
I am currently a 45% owner of a small, closely-held LLC. I have one partner who owns the other 55%. We produce and publish Scripture study materials domestically and abroad. At present we are considering dissolution due to differences in how the organization should move forward. My question concerns the graphic artwork that I have produced over the course of our partnership. I designed and created the logo, book covers, banners, posters, illustrations, etc... Now neither of us took a salary or any compensation for work/services. The only compensation has been in the way of owner draws against our estimated profit for the year. So upon dissolution, does the LLC own the work, do I own the work personally, or what?
- Category: Copyrights
- Date:
- State: Tennessee
Answer:
A copyright is a type of intellectual property that protects the authors of such things as books, magazine articles, plays, movies, songs, dances, and photographs. It is granted by the U.S. Patent and Trademark Office. Paintings are "visual art" specifically protected by Visual Artists Rights Act. The author of a work of visual art has the right to prevent any modification of that work which would be prejudicial to the artist’s honor or reputation.
A "work of visual art" has been defined as including a painting, drawing, print, or sculpture, existing in a single copy, in a limited edition of 200 copies or fewer that are signed and consecutively numbered by the author, or, in the case of a sculpture, in multiple cast, carved, or fabricated sculptures of 200 or fewer that are consecutively numbered by the author and bear the signature or other identifying mark of the author.
A work of visual art does not include any work made for hire. However, by statute, only certain specific categories of specially ordered or commissioned works created by an independent contractor are deemed "works made for hire." The following works are categorized as "works for hire" if specially ordered or commissioned, provided that the parties also expressly agree in a written instrument signed by them that the work will be considered a work made for hire: a contribution to a collective work; part of a motion picture or other audiovisual work; a translation; a supplementary work; a compilation; an instructional text; a test; answer material for a test; or an atlas.
Copyright protection begins from the time the work is created in fixed form. The copyright in the work of authorship immediately becomes the property of the author who created
the work. Only the author or those deriving their rights through the author can rightfully claim copyright.
In the case of works made for hire, the employer and not the employee is considered to be the author. Section 101 of the copyright law defines a “work made for hire” as:
1. a work prepared by an employee within the scope of his or her employment; or
2. a work specially ordered or commissioned for use as:
• a contribution to a collective work
• a part of a motion picture or other audiovisual work
• a translation
• a supplementary work
• a compilation
• an instructional text
• a test
• answer material for a test
• an atlas
If the parties expressly agree in a written instrument signed by them that the work shall be considered a work made for hire."
The authors of a joint work are co-owners of the copyright in the work, unless there is an agreement to the contrary. Copyright in each separate contribution to a periodical
or other collective work is distinct from copyright in the collective work as a whole and vests initially with the author of the contribution.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
