1 00:00:00,049 --> 00:00:00,339 Erin Austin: Hello, 2 00:00:00,389 --> 00:00:01,199 everyone. 3 00:00:01,269 --> 00:00:03,219 Welcome to this month's 4 00:00:03,219 --> 00:00:04,269 LinkedIn live. 5 00:00:04,484 --> 00:00:06,462 I do these every last 6 00:00:06,462 --> 00:00:07,542 Wednesday of the month, 7 00:00:07,748 --> 00:00:08,685 whether there are four 8 00:00:08,685 --> 00:00:10,475 Wednesdays or five Wednesdays 9 00:00:10,535 --> 00:00:12,084 like this month, I was 10 00:00:12,084 --> 00:00:13,454 shocked by how much time I 11 00:00:13,464 --> 00:00:14,891 had to prepare for today's 12 00:00:14,891 --> 00:00:15,661 LinkedIn live. 13 00:00:15,885 --> 00:00:17,417 And we talk about different 14 00:00:17,427 --> 00:00:18,997 topics of interest to 15 00:00:19,067 --> 00:00:21,305 experts in the areas of. 16 00:00:21,635 --> 00:00:22,825 Contracts and intellectual 17 00:00:22,835 --> 00:00:24,735 property and copyrights in 18 00:00:24,745 --> 00:00:25,605 particular. 19 00:00:25,825 --> 00:00:27,211 And so I do these are 20 00:00:27,211 --> 00:00:28,961 recorded and you can 21 00:00:29,169 --> 00:00:31,091 find them on my profile. 22 00:00:31,284 --> 00:00:33,941 at Aaron Austin and also on 23 00:00:33,961 --> 00:00:35,561 my website thing beyond. 24 00:00:35,561 --> 00:00:35,661 I. 25 00:00:35,661 --> 00:00:36,151 P. 26 00:00:36,611 --> 00:00:38,251 do sometimes release these 27 00:00:38,261 --> 00:00:39,751 as podcast episodes. 28 00:00:39,751 --> 00:00:42,534 My podcast is hourly to exit. 29 00:00:42,719 --> 00:00:43,579 and it depends on 30 00:00:43,579 --> 00:00:45,069 how clean this recording is. 31 00:00:45,129 --> 00:00:46,572 We'll see if this 1 gets 32 00:00:46,572 --> 00:00:48,032 on, or if I rerecord it 33 00:00:48,059 --> 00:00:48,599 afterwards. 34 00:00:48,936 --> 00:00:50,554 So, please do check out 35 00:00:50,554 --> 00:00:51,804 those resources as well. 36 00:00:51,963 --> 00:00:53,064 If you are listening to 37 00:00:53,064 --> 00:00:54,938 this and audio only there 38 00:00:55,008 --> 00:00:56,711 are, PowerPoint presentation 39 00:00:56,931 --> 00:00:58,134 that has slides. 40 00:00:58,364 --> 00:00:59,314 I will be talking you 41 00:00:59,314 --> 00:01:00,351 through it, but you're 42 00:01:00,371 --> 00:01:01,838 interested, then go find 43 00:01:01,838 --> 00:01:02,388 the video. 44 00:01:02,388 --> 00:01:04,624 So you can also see the 45 00:01:04,664 --> 00:01:06,170 resources for those of 46 00:01:06,170 --> 00:01:07,800 you who are here live. 47 00:01:08,133 --> 00:01:09,633 I'm happy to take your 48 00:01:09,723 --> 00:01:10,453 questions. 49 00:01:10,630 --> 00:01:11,983 I'll talk for a bit and 50 00:01:11,983 --> 00:01:13,670 then open the floor to your 51 00:01:13,670 --> 00:01:15,280 questions and you can post 52 00:01:15,280 --> 00:01:16,560 them in the comments at any 53 00:01:16,560 --> 00:01:17,673 time, as well. 54 00:01:17,886 --> 00:01:19,990 And so let's get to today's 55 00:01:19,990 --> 00:01:22,423 topic, which is spotting the 56 00:01:22,423 --> 00:01:24,880 hidden license and our client 57 00:01:24,880 --> 00:01:25,440 agreements. 58 00:01:25,826 --> 00:01:26,813 So what we're going to 59 00:01:26,813 --> 00:01:28,860 talk about is particularly 60 00:01:29,020 --> 00:01:31,660 how we protect or fail to 61 00:01:31,660 --> 00:01:32,990 protect our intellectual 62 00:01:32,990 --> 00:01:34,386 property with our clients. 63 00:01:34,386 --> 00:01:35,126 And in particular, 64 00:01:35,126 --> 00:01:36,266 with our client agreements. 65 00:01:36,573 --> 00:01:37,523 So we protect our 66 00:01:37,523 --> 00:01:38,553 intellectual property 67 00:01:38,553 --> 00:01:40,153 in 2 ways. 68 00:01:40,451 --> 00:01:41,165 There is the intellectual 69 00:01:41,165 --> 00:01:42,645 property law, which is 70 00:01:42,645 --> 00:01:43,715 the default in the U. 71 00:01:43,715 --> 00:01:43,995 S. 72 00:01:44,301 --> 00:01:45,831 and which applies when 73 00:01:45,831 --> 00:01:46,991 you don't have any contracts 74 00:01:46,991 --> 00:01:47,631 at all. 75 00:01:47,778 --> 00:01:48,691 And so I actually don't 76 00:01:48,691 --> 00:01:49,551 have a slide about what 77 00:01:49,551 --> 00:01:50,281 happens when you don't 78 00:01:50,281 --> 00:01:51,321 have contracts at all. 79 00:01:51,331 --> 00:01:52,398 So, if you have questions 80 00:01:52,398 --> 00:01:53,658 about that, then ask me 81 00:01:53,658 --> 00:01:54,741 about that when we get to the 82 00:01:54,741 --> 00:01:56,565 Q and a, and then the other 83 00:01:56,565 --> 00:01:58,005 way is with our contracts. 84 00:01:58,005 --> 00:01:59,355 So we can change the 85 00:01:59,355 --> 00:02:01,188 default through the use of 86 00:02:01,188 --> 00:02:01,708 contracts. 87 00:02:02,103 --> 00:02:02,895 You know that I like to 88 00:02:02,895 --> 00:02:04,485 talk about copyrights 89 00:02:04,505 --> 00:02:06,325 in particular because we 90 00:02:06,325 --> 00:02:07,905 are experts with corporate 91 00:02:07,905 --> 00:02:10,315 clients, the copyrighted 92 00:02:10,325 --> 00:02:11,885 works, the things like 93 00:02:11,925 --> 00:02:14,755 our trainings, our workshops, 94 00:02:15,365 --> 00:02:17,075 our PowerPoint presentations, 95 00:02:17,301 --> 00:02:18,718 our courses and books, 96 00:02:18,728 --> 00:02:20,108 those are all copyrighted 97 00:02:20,108 --> 00:02:20,388 works. 98 00:02:20,661 --> 00:02:22,718 The things that are the 99 00:02:22,831 --> 00:02:24,845 expression of our expertise. 100 00:02:25,051 --> 00:02:25,971 Those are things we 101 00:02:25,971 --> 00:02:27,281 protect with copyright. 102 00:02:27,625 --> 00:02:28,405 It's different than 103 00:02:28,425 --> 00:02:29,105 trademarks. 104 00:02:29,105 --> 00:02:29,735 I don't talk about 105 00:02:29,735 --> 00:02:30,798 trademarks because, 106 00:02:30,831 --> 00:02:32,611 that's not what provides value 107 00:02:32,611 --> 00:02:33,471 to our clients. 108 00:02:34,445 --> 00:02:35,325 stylized I. 109 00:02:35,325 --> 00:02:36,905 P logo on the corner there. 110 00:02:37,098 --> 00:02:38,088 I think it's kind of cute, 111 00:02:38,088 --> 00:02:39,148 but you get absolutely 112 00:02:39,148 --> 00:02:40,598 no value from that. 113 00:02:40,778 --> 00:02:42,225 You get the value from the 114 00:02:42,235 --> 00:02:42,785 stuff that I. 115 00:02:42,928 --> 00:02:44,403 Talk to you about and so 116 00:02:44,403 --> 00:02:46,280 we will focus on protecting 117 00:02:46,340 --> 00:02:48,850 our copyrighted works when we 118 00:02:48,970 --> 00:02:50,890 enter client agreements. 119 00:02:51,091 --> 00:02:52,097 And so intellectual 120 00:02:52,097 --> 00:02:53,107 property law, just 121 00:02:53,167 --> 00:02:55,208 briefly, under copyrights, 122 00:02:55,460 --> 00:02:56,791 the human, it always has 123 00:02:56,791 --> 00:02:58,135 to start with a human, the 124 00:02:58,135 --> 00:02:59,535 human being who creates 125 00:02:59,565 --> 00:03:01,555 something original and 126 00:03:01,555 --> 00:03:03,705 puts it in a tangible form. 127 00:03:03,765 --> 00:03:05,175 They write it down, they 128 00:03:05,175 --> 00:03:07,890 record it, photograph it. 129 00:03:08,123 --> 00:03:09,985 At the moment of creation, 130 00:03:10,045 --> 00:03:11,625 copyright protection 131 00:03:11,725 --> 00:03:15,172 attaches, and it is the human 132 00:03:15,330 --> 00:03:17,362 who creates it, who is also 133 00:03:17,362 --> 00:03:19,642 the owner, and so that is the 134 00:03:19,642 --> 00:03:21,402 default, but we can change 135 00:03:21,402 --> 00:03:23,542 that through contracts. 136 00:03:23,572 --> 00:03:24,352 And so we'll talk 137 00:03:24,362 --> 00:03:25,022 about that. 138 00:03:25,277 --> 00:03:26,707 in our client agreements 139 00:03:27,005 --> 00:03:27,840 there, we're going to talk 140 00:03:27,840 --> 00:03:29,045 about the provision 141 00:03:29,045 --> 00:03:30,820 specifically, In your client 142 00:03:30,820 --> 00:03:33,663 agreements that addresses the 143 00:03:33,683 --> 00:03:35,003 contractual provisions 144 00:03:35,013 --> 00:03:36,743 that change the default. 145 00:03:36,973 --> 00:03:39,261 And so some of the paragraph 146 00:03:39,261 --> 00:03:39,941 headings, you will 147 00:03:39,941 --> 00:03:41,481 find it under intellectual 148 00:03:41,481 --> 00:03:43,021 property is probably the 149 00:03:43,021 --> 00:03:44,571 number 1, probably 75 150 00:03:44,571 --> 00:03:45,641 percent of the paragraph 151 00:03:45,641 --> 00:03:46,878 headings will be intellectual 152 00:03:46,878 --> 00:03:47,688 property. 153 00:03:47,756 --> 00:03:48,796 but other ones might be 154 00:03:48,796 --> 00:03:50,846 deliverables or work product or 155 00:03:50,846 --> 00:03:51,906 just ownership. 156 00:03:52,146 --> 00:03:53,456 I went through, a couple 157 00:03:53,466 --> 00:03:55,743 dozen examples of client 158 00:03:55,743 --> 00:03:56,433 agreements that I've worked 159 00:03:56,433 --> 00:03:57,623 on just to see what they 160 00:03:57,633 --> 00:03:58,463 generally say. 161 00:03:58,633 --> 00:03:59,996 And so these are where you 162 00:03:59,996 --> 00:04:02,246 will look for the language 163 00:04:02,246 --> 00:04:03,696 regarding intellectual 164 00:04:03,696 --> 00:04:05,579 property rights in connection 165 00:04:05,619 --> 00:04:07,099 with the work that you do for 166 00:04:07,099 --> 00:04:07,589 your clients. 167 00:04:08,083 --> 00:04:09,793 before we get into a 168 00:04:09,793 --> 00:04:11,903 real example that we will. 169 00:04:13,219 --> 00:04:14,866 want to just talk about the 170 00:04:14,956 --> 00:04:17,336 concepts that we will find 171 00:04:17,531 --> 00:04:19,069 in a client agreement 172 00:04:19,159 --> 00:04:20,049 in that intellectual 173 00:04:20,049 --> 00:04:21,519 property provision. 174 00:04:21,601 --> 00:04:24,116 And so these are, the types 175 00:04:24,366 --> 00:04:25,889 of ownership. 176 00:04:26,099 --> 00:04:28,604 Or permissions that we have 177 00:04:28,799 --> 00:04:30,928 in copyrights under 178 00:04:31,036 --> 00:04:32,094 intellectual property law. 179 00:04:32,404 --> 00:04:34,224 So the highest level, and 180 00:04:34,224 --> 00:04:35,074 I'm going to use that term 181 00:04:35,074 --> 00:04:36,274 highest level and you'll 182 00:04:36,274 --> 00:04:37,144 see why in a minute. 183 00:04:37,354 --> 00:04:38,141 well, actually, the highest 184 00:04:38,141 --> 00:04:39,291 level isn't even on this 185 00:04:39,291 --> 00:04:40,754 slide because when we just 186 00:04:40,764 --> 00:04:42,024 do work for ourselves. 187 00:04:42,298 --> 00:04:45,468 So I sit down and I write. 188 00:04:45,598 --> 00:04:48,434 A post as Aaron Austin, 189 00:04:48,454 --> 00:04:49,794 and I am the human being 190 00:04:49,794 --> 00:04:50,644 who created it. 191 00:04:50,724 --> 00:04:52,074 So I am both the author 192 00:04:52,261 --> 00:04:54,014 and I'm also the owner. 193 00:04:54,014 --> 00:04:55,084 So I'm the creator and 194 00:04:55,084 --> 00:04:55,624 the owner. 195 00:04:55,624 --> 00:04:58,464 There's, just 1 human or entity 196 00:04:58,474 --> 00:04:59,844 involved in the creation 197 00:05:00,058 --> 00:05:01,698 of that copyrighted 198 00:05:01,698 --> 00:05:02,058 work. 199 00:05:02,231 --> 00:05:04,261 But when we are doing work with 200 00:05:04,281 --> 00:05:05,041 3rd parties, when we're 201 00:05:05,041 --> 00:05:06,211 doing client work, there's 202 00:05:06,251 --> 00:05:06,671 obviously. 203 00:05:06,991 --> 00:05:08,001 2 parties involved, 204 00:05:08,011 --> 00:05:09,381 there's, you and I as 205 00:05:09,381 --> 00:05:10,581 consultants and then there 206 00:05:10,581 --> 00:05:11,321 is our client. 207 00:05:11,531 --> 00:05:13,971 And so the top level 208 00:05:14,121 --> 00:05:16,194 of ownership is the work 209 00:05:16,194 --> 00:05:17,064 for hire. 210 00:05:17,241 --> 00:05:18,861 the, work for hire means 211 00:05:19,118 --> 00:05:19,424 there is. 212 00:05:19,774 --> 00:05:21,194 The human being who created 213 00:05:21,194 --> 00:05:22,754 it, but there's somebody 214 00:05:22,814 --> 00:05:24,714 else who is the owner. 215 00:05:24,754 --> 00:05:26,344 There's a 2nd entity who's 216 00:05:26,344 --> 00:05:26,864 the owner. 217 00:05:27,078 --> 00:05:28,988 So the, classic example is 218 00:05:28,998 --> 00:05:30,328 the employee employer 219 00:05:30,328 --> 00:05:31,718 relationship, you whether 220 00:05:31,718 --> 00:05:32,648 or not there's an agreement 221 00:05:32,648 --> 00:05:34,084 in place if I create 222 00:05:34,104 --> 00:05:35,604 something as an employee, 223 00:05:35,634 --> 00:05:37,288 and I create it in the course 224 00:05:37,288 --> 00:05:39,138 of my scope of duties. 225 00:05:39,394 --> 00:05:40,524 So I am. 226 00:05:40,656 --> 00:05:41,644 the head of H. 227 00:05:41,644 --> 00:05:41,974 R. 228 00:05:42,135 --> 00:05:44,598 and I write the employment 229 00:05:44,688 --> 00:05:46,305 guide, the employee, 230 00:05:46,408 --> 00:05:48,007 handbook I created that in 231 00:05:48,007 --> 00:05:49,237 the course of my employment. 232 00:05:49,424 --> 00:05:50,367 I am the human being who 233 00:05:50,367 --> 00:05:52,973 created it, but the author 234 00:05:53,134 --> 00:05:55,083 for copyright purposes is 235 00:05:55,083 --> 00:05:57,217 my employer and also. 236 00:05:57,422 --> 00:05:59,222 The owner, so if we were to 237 00:05:59,222 --> 00:06:00,432 look that up at the copyright 238 00:06:00,432 --> 00:06:01,812 office, there's only 1 entity 239 00:06:01,812 --> 00:06:03,112 listed their employer. 240 00:06:03,205 --> 00:06:04,435 I don't appear anywhere 241 00:06:04,435 --> 00:06:04,815 on there. 242 00:06:04,815 --> 00:06:05,905 I don't even exist for the 243 00:06:05,905 --> 00:06:07,552 purposes of the creation 244 00:06:07,612 --> 00:06:09,855 of that asset when it's not 245 00:06:09,865 --> 00:06:10,825 an employee and it's 246 00:06:10,825 --> 00:06:12,175 contractual relationship 247 00:06:12,175 --> 00:06:12,445 like. 248 00:06:12,650 --> 00:06:13,450 What we have with our 249 00:06:13,450 --> 00:06:14,990 clients, then the work for 250 00:06:14,990 --> 00:06:16,960 hire concept also exist. 251 00:06:17,140 --> 00:06:18,087 You do have to have the 252 00:06:18,087 --> 00:06:19,407 magic words work for hire. 253 00:06:19,407 --> 00:06:19,987 We'll look at that in 254 00:06:19,987 --> 00:06:20,497 a second. 255 00:06:20,703 --> 00:06:22,793 , and then when we have that 256 00:06:22,793 --> 00:06:24,543 it's in writing and it's signed 257 00:06:24,543 --> 00:06:25,683 and it's work for hire. 258 00:06:25,870 --> 00:06:26,878 The human being, the 259 00:06:26,878 --> 00:06:28,928 consultant is creating it, 260 00:06:29,133 --> 00:06:32,085 but the, client is the owner. 261 00:06:32,115 --> 00:06:32,895 And again, there's 262 00:06:32,935 --> 00:06:34,415 only, they immediately 263 00:06:34,445 --> 00:06:35,905 own it as if they created 264 00:06:35,905 --> 00:06:36,445 themselves. 265 00:06:36,545 --> 00:06:37,748 There's no separation 266 00:06:37,778 --> 00:06:40,052 there versus assignment. 267 00:06:40,222 --> 00:06:41,632 When there is an assignment, 268 00:06:41,692 --> 00:06:43,755 I have the creator. 269 00:06:43,912 --> 00:06:45,178 And that is the human, of 270 00:06:45,178 --> 00:06:47,595 course, and then I have 271 00:06:47,605 --> 00:06:49,538 the person who's going 272 00:06:49,538 --> 00:06:50,288 to own it. 273 00:06:50,498 --> 00:06:51,698 So, if we were to look 274 00:06:51,698 --> 00:06:53,258 at that in the copyright 275 00:06:53,258 --> 00:06:55,098 office, there would be the, 276 00:06:55,248 --> 00:06:57,252 author, the human, and then 277 00:06:57,272 --> 00:06:58,852 the owner would be the separate 278 00:06:58,882 --> 00:06:59,992 entity, the client. 279 00:07:00,182 --> 00:07:01,332 So, there is actually a 280 00:07:01,342 --> 00:07:04,025 transfer of rights from 281 00:07:04,055 --> 00:07:06,135 the creator to the owner, 282 00:07:06,245 --> 00:07:07,355 and that's the assignment. 283 00:07:07,533 --> 00:07:08,548 And then license is 284 00:07:08,548 --> 00:07:10,380 the last level where The 285 00:07:10,380 --> 00:07:11,780 creator and the owner is 286 00:07:11,780 --> 00:07:13,337 the same, but they're giving 287 00:07:13,337 --> 00:07:15,217 permission to the 3rd party 288 00:07:15,257 --> 00:07:18,413 to use, some or all of my 289 00:07:18,413 --> 00:07:19,703 rights that I have in 290 00:07:19,703 --> 00:07:20,343 that work. 291 00:07:20,547 --> 00:07:22,767 these are the 3 kind 292 00:07:22,767 --> 00:07:24,053 of concepts that we will 293 00:07:24,130 --> 00:07:25,353 find in. 294 00:07:25,520 --> 00:07:27,240 A client agreement, so 295 00:07:27,240 --> 00:07:29,363 let's look at a sample this 296 00:07:29,363 --> 00:07:31,523 is going to be a very typical 297 00:07:31,533 --> 00:07:32,363 provision. 298 00:07:32,597 --> 00:07:34,250 it will have this 1st 299 00:07:34,260 --> 00:07:34,890 section. 300 00:07:35,183 --> 00:07:35,653 not going to read the 301 00:07:35,673 --> 00:07:36,383 whole thing to you, but 302 00:07:36,383 --> 00:07:37,810 I'm going to point out, the 303 00:07:37,810 --> 00:07:40,183 key provisions that we are 304 00:07:40,183 --> 00:07:41,033 looking for. 305 00:07:41,200 --> 00:07:43,130 So, in this 1st paragraph, 306 00:07:43,314 --> 00:07:45,190 it is talking about the 307 00:07:45,190 --> 00:07:47,003 rights that contract or 308 00:07:47,003 --> 00:07:48,053 use the term contractor 309 00:07:48,053 --> 00:07:48,843 instead of consultant 310 00:07:48,843 --> 00:07:49,843 here is. 311 00:07:50,081 --> 00:07:52,037 Providing to the client, 312 00:07:52,290 --> 00:07:53,997 so this refers to the 313 00:07:53,997 --> 00:07:55,177 deliverables that the 314 00:07:55,177 --> 00:07:57,393 contractor is agreeing 315 00:07:57,403 --> 00:07:58,963 that all the deliverables 316 00:07:59,043 --> 00:08:00,793 are owned by the client 317 00:08:00,962 --> 00:08:02,127 and that the contractor has 318 00:08:02,157 --> 00:08:04,640 no rights in it and that it is 319 00:08:04,770 --> 00:08:07,250 a work for hire for the client. 320 00:08:07,270 --> 00:08:08,957 So that is that 1st level, as 321 00:08:08,957 --> 00:08:10,247 soon as it's created by the 322 00:08:10,247 --> 00:08:12,915 contractor, It is as if the 323 00:08:12,915 --> 00:08:14,505 client created it and they 324 00:08:14,515 --> 00:08:15,615 immediately own it and 325 00:08:15,615 --> 00:08:16,655 immediately have all the 326 00:08:16,655 --> 00:08:18,688 rights under copyright law 327 00:08:18,748 --> 00:08:19,748 in that work. 328 00:08:19,943 --> 00:08:21,852 However, the bucket of 329 00:08:21,872 --> 00:08:24,285 things that can fall under 330 00:08:24,427 --> 00:08:25,895 work for hire when it is 331 00:08:25,895 --> 00:08:27,215 a contractor relationship 332 00:08:27,225 --> 00:08:28,298 versus an employment 333 00:08:28,298 --> 00:08:29,848 relationship is actually 334 00:08:29,848 --> 00:08:31,828 defined, like, not everything 335 00:08:31,828 --> 00:08:33,818 we do qualifies as a work 336 00:08:33,818 --> 00:08:35,645 for hire when contractual 337 00:08:35,645 --> 00:08:37,045 relationship as opposed to 338 00:08:37,045 --> 00:08:38,035 an employment relationship. 339 00:08:38,282 --> 00:08:39,450 So there is a bucket of 340 00:08:39,450 --> 00:08:40,850 things that it applies to. 341 00:08:40,998 --> 00:08:42,368 if it doesn't, for some 342 00:08:42,368 --> 00:08:43,418 reason, fall into one of 343 00:08:43,558 --> 00:08:45,368 those specific buckets, a 344 00:08:45,368 --> 00:08:47,195 work for hire eligible work 345 00:08:47,195 --> 00:08:49,818 product, then the assignment 346 00:08:49,818 --> 00:08:50,908 comes in because then 347 00:08:50,938 --> 00:08:51,948 the client, okay, if it 348 00:08:51,998 --> 00:08:53,498 doesn't qualify as a work for 349 00:08:53,498 --> 00:08:54,578 hire, I still want to make 350 00:08:54,578 --> 00:08:55,518 sure I get all the rights. 351 00:08:55,768 --> 00:08:56,728 So if it's not a work 352 00:08:56,728 --> 00:08:57,258 for hire. 353 00:08:57,473 --> 00:08:59,086 Contractor assigns 100 354 00:08:59,086 --> 00:09:00,700 percent of the rights in that 355 00:09:00,700 --> 00:09:02,480 deliverable to client. 356 00:09:02,633 --> 00:09:05,113 So here, again, the client ends 357 00:09:05,113 --> 00:09:07,456 up with all of the rights, but 358 00:09:07,456 --> 00:09:09,306 it is through an assignment 359 00:09:09,356 --> 00:09:10,886 as opposed through as if 360 00:09:10,886 --> 00:09:12,206 they created it themselves. 361 00:09:12,206 --> 00:09:13,456 But still they get all the 362 00:09:13,611 --> 00:09:15,773 copyrights with the client, and 363 00:09:15,773 --> 00:09:17,803 the contractor retains no 364 00:09:17,813 --> 00:09:18,843 copyright interest 365 00:09:19,008 --> 00:09:19,956 in that deliverable. 366 00:09:20,245 --> 00:09:21,243 And then the second, 367 00:09:21,480 --> 00:09:23,861 paragraph refers to those 368 00:09:24,075 --> 00:09:26,245 elements that the contractor 369 00:09:26,255 --> 00:09:27,235 brings to the table. 370 00:09:27,255 --> 00:09:28,025 I mean, there's a reason 371 00:09:28,025 --> 00:09:29,241 they're coming to you instead 372 00:09:29,241 --> 00:09:30,511 of somebody else, because, 373 00:09:30,727 --> 00:09:31,764 you have a system, you 374 00:09:31,764 --> 00:09:33,234 have a model, or you have, 375 00:09:33,420 --> 00:09:34,510 , some research or data or 376 00:09:34,510 --> 00:09:35,360 something that you're bringing 377 00:09:35,360 --> 00:09:37,302 to the table, and you want to 378 00:09:37,312 --> 00:09:38,772 make sure that you continue 379 00:09:38,772 --> 00:09:39,772 to own those. 380 00:09:39,840 --> 00:09:41,541 Materials, so we want to make 381 00:09:41,541 --> 00:09:43,947 sure that we are carving 382 00:09:43,947 --> 00:09:46,241 out from, that work for 383 00:09:46,241 --> 00:09:48,981 hire and that assignment your 384 00:09:49,011 --> 00:09:50,601 pre existing materials. 385 00:09:51,316 --> 00:09:52,566 paragraph says you retain 386 00:09:52,566 --> 00:09:53,796 ownership in those things. 387 00:09:54,022 --> 00:09:55,738 But where is the license? 388 00:09:56,125 --> 00:09:57,415 So, the, last part of that 389 00:09:57,415 --> 00:10:00,105 sentence is the license 390 00:10:00,135 --> 00:10:01,475 that you are granting to 391 00:10:01,475 --> 00:10:03,618 your client to use your, 392 00:10:03,702 --> 00:10:04,273 materials. 393 00:10:04,472 --> 00:10:05,487 Obviously, they have to 394 00:10:05,487 --> 00:10:06,707 have a license to use it. 395 00:10:06,707 --> 00:10:09,020 Let's say you do A strategic 396 00:10:09,020 --> 00:10:10,650 analysis, and as part of 397 00:10:10,650 --> 00:10:11,570 that analysis, you're 398 00:10:11,570 --> 00:10:12,660 using some preexisting 399 00:10:12,670 --> 00:10:13,820 research that you have. 400 00:10:14,015 --> 00:10:15,183 You're using some models 401 00:10:15,183 --> 00:10:15,893 and templates that you 402 00:10:15,893 --> 00:10:17,633 have and you package that 403 00:10:17,633 --> 00:10:19,203 together for the deliverable 404 00:10:19,375 --> 00:10:20,992 and you present that strategic 405 00:10:20,992 --> 00:10:22,932 analysis to your client and 406 00:10:22,932 --> 00:10:24,402 so they have to have the right 407 00:10:24,432 --> 00:10:26,110 to use, the things that you 408 00:10:26,110 --> 00:10:27,150 incorporated in that 409 00:10:27,150 --> 00:10:27,870 deliverable. 410 00:10:28,019 --> 00:10:30,773 The issue is how broad is 411 00:10:30,823 --> 00:10:31,863 that license? 412 00:10:32,112 --> 00:10:32,993 This is. 413 00:10:33,162 --> 00:10:34,350 Very standard language 414 00:10:34,350 --> 00:10:35,973 that you will see from 415 00:10:35,973 --> 00:10:36,303 the client. 416 00:10:36,313 --> 00:10:38,123 Now, first of all, this one 417 00:10:38,193 --> 00:10:40,150 is fairer than a lot of client 418 00:10:40,150 --> 00:10:40,770 agreements, because a 419 00:10:40,770 --> 00:10:42,130 lot of client drafted 420 00:10:42,130 --> 00:10:43,140 agreements won't even have 421 00:10:43,140 --> 00:10:43,600 this second. 422 00:10:43,776 --> 00:10:44,770 Paragraph in it, it will 423 00:10:44,770 --> 00:10:46,017 just be 100 percent of the 424 00:10:46,017 --> 00:10:46,637 deliverables. 425 00:10:46,777 --> 00:10:47,747 I own it because I'm 426 00:10:47,757 --> 00:10:49,010 the client, probably 427 00:10:49,010 --> 00:10:50,410 at least 40 percent will 428 00:10:50,420 --> 00:10:51,500 also have this 2nd 429 00:10:51,500 --> 00:10:53,387 paragraph that acknowledges 430 00:10:53,387 --> 00:10:54,077 that you're bringing your 431 00:10:54,077 --> 00:10:55,317 own materials to the table 432 00:10:55,456 --> 00:10:56,513 and that they simply get a 433 00:10:56,513 --> 00:10:57,393 license to it. 434 00:10:57,562 --> 00:10:58,563 But let's look at this 435 00:10:58,583 --> 00:10:59,163 license. 436 00:10:59,622 --> 00:11:00,682 in the middle of the 2nd 437 00:11:00,682 --> 00:11:02,392 paragraph, it says contractor 438 00:11:02,392 --> 00:11:03,802 hereby grants a client 439 00:11:04,006 --> 00:11:05,962 a limited worldwide 440 00:11:05,972 --> 00:11:07,692 perpetual irrevocable 441 00:11:07,862 --> 00:11:09,676 royalty free, fully paid up 442 00:11:09,686 --> 00:11:11,026 transferable right and 443 00:11:11,026 --> 00:11:12,959 license to use, execute, 444 00:11:12,999 --> 00:11:14,549 reproduce sub license, 445 00:11:14,549 --> 00:11:15,849 display, perform, 446 00:11:16,032 --> 00:11:17,389 distribute, maintain, 447 00:11:17,562 --> 00:11:18,329 create derivative 448 00:11:18,329 --> 00:11:20,039 works and make modifications 449 00:11:20,069 --> 00:11:21,429 and improvements to 450 00:11:21,599 --> 00:11:23,372 the contractor materials. 451 00:11:23,556 --> 00:11:24,776 This is very. 452 00:11:24,946 --> 00:11:27,086 Common starter language, you 453 00:11:27,086 --> 00:11:28,116 know, standard language that 454 00:11:28,116 --> 00:11:29,156 you'll get from your client. 455 00:11:29,322 --> 00:11:31,299 And so what is wrong 456 00:11:31,299 --> 00:11:31,969 with this? 457 00:11:32,189 --> 00:11:33,359 you know, we didn't start 458 00:11:33,369 --> 00:11:34,869 from the basics of what the 459 00:11:34,869 --> 00:11:36,439 bundle of copyrights 460 00:11:36,569 --> 00:11:37,879 that you get as a copyright 461 00:11:37,879 --> 00:11:38,896 owner, but I'll tell 462 00:11:38,896 --> 00:11:39,956 you what they are because 463 00:11:39,956 --> 00:11:41,296 they're all right here in 464 00:11:41,296 --> 00:11:42,086 this license. 465 00:11:42,399 --> 00:11:43,876 the exclusive rights you get 466 00:11:43,876 --> 00:11:45,306 as a copyright owner is that 467 00:11:45,306 --> 00:11:46,636 you get the exclusive right 468 00:11:46,746 --> 00:11:48,782 to reproduce, sub license, 469 00:11:48,782 --> 00:11:49,742 display, perform, 470 00:11:49,742 --> 00:11:50,502 distribute, create 471 00:11:50,512 --> 00:11:51,442 derivatives, and make 472 00:11:51,442 --> 00:11:51,942 improvements. 473 00:11:52,142 --> 00:11:53,356 Those are your exclusive 474 00:11:53,356 --> 00:11:54,616 rights as a copyright 475 00:11:54,616 --> 00:11:54,976 owner. 476 00:11:55,156 --> 00:11:56,386 And so when you have a 477 00:11:56,386 --> 00:11:58,682 license is this broad, even 478 00:11:58,682 --> 00:11:59,832 though you have a retaining 479 00:11:59,882 --> 00:12:02,279 ownership of that work, you 480 00:12:02,289 --> 00:12:04,059 have granted a license to your 481 00:12:04,059 --> 00:12:05,839 client that is so broad 482 00:12:05,999 --> 00:12:06,879 that they can do anything. 483 00:12:07,076 --> 00:12:08,939 Everything that you can do as 484 00:12:08,939 --> 00:12:10,736 a copyright owner without 485 00:12:10,836 --> 00:12:12,879 coming back to you so they can 486 00:12:12,889 --> 00:12:13,859 sub license it. 487 00:12:14,051 --> 00:12:15,319 They can create derivatives. 488 00:12:15,329 --> 00:12:16,632 They can reproduce it 489 00:12:16,632 --> 00:12:17,902 and distribute it without 490 00:12:18,022 --> 00:12:19,322 paying you another dime 491 00:12:19,504 --> 00:12:20,932 because you have granted 492 00:12:20,932 --> 00:12:22,806 them that broad of a license. 493 00:12:23,416 --> 00:12:24,516 So, what do we want to do? 494 00:12:24,687 --> 00:12:26,846 We want to make sure that we 495 00:12:26,896 --> 00:12:29,036 are limiting that license 496 00:12:29,471 --> 00:12:30,681 And so just, you know, 497 00:12:30,681 --> 00:12:32,011 I probably should do my, 498 00:12:32,121 --> 00:12:32,921 disclaimer here. 499 00:12:32,931 --> 00:12:34,767 Of course, this is information, 500 00:12:34,897 --> 00:12:35,487 legal advice. 501 00:12:35,487 --> 00:12:36,541 If you have specific 502 00:12:36,541 --> 00:12:37,521 questions about your 503 00:12:37,521 --> 00:12:38,584 agreements, talk to a 504 00:12:38,584 --> 00:12:39,667 lawyer, but, this is pretty 505 00:12:39,667 --> 00:12:41,034 good advice, information. 506 00:12:41,324 --> 00:12:42,204 so there are a couple of 507 00:12:42,214 --> 00:12:43,764 things that we want to do. 508 00:12:43,991 --> 00:12:45,401 First of all, we want to 509 00:12:45,481 --> 00:12:46,821 make sure that the grant of 510 00:12:46,821 --> 00:12:48,481 license is subject to 511 00:12:48,481 --> 00:12:49,924 them paying your fee. 512 00:12:50,147 --> 00:12:50,984 What's the difference? 513 00:12:51,281 --> 00:12:54,351 So if The grant of license is 514 00:12:54,401 --> 00:12:55,831 not subject to paying 515 00:12:55,861 --> 00:12:56,521 your fee. 516 00:12:56,871 --> 00:12:58,284 You have granted the 517 00:12:58,284 --> 00:12:59,734 license so they have the right 518 00:12:59,734 --> 00:13:00,754 to do whatever they want 519 00:13:00,754 --> 00:13:01,664 to with it. 520 00:13:01,901 --> 00:13:03,427 you can do all the things and 521 00:13:03,427 --> 00:13:04,677 if they haven't paid you, 522 00:13:04,821 --> 00:13:05,504 well, they've breached their 523 00:13:05,504 --> 00:13:06,674 contract and you have a 524 00:13:06,704 --> 00:13:07,914 contract claim against them. 525 00:13:07,954 --> 00:13:08,891 So, they're supposed 526 00:13:08,891 --> 00:13:09,521 to pay you. 527 00:13:09,707 --> 00:13:11,396 10, 000 and they don't 528 00:13:11,396 --> 00:13:11,966 pay it. 529 00:13:11,976 --> 00:13:12,676 Well, then you can sue 530 00:13:12,676 --> 00:13:13,946 them for the 10, 000. 531 00:13:14,641 --> 00:13:17,086 If the grant of the license 532 00:13:17,136 --> 00:13:19,216 is subject to payment of your 533 00:13:19,306 --> 00:13:21,096 fee and they haven't paid 534 00:13:21,106 --> 00:13:22,729 it, that means they don't 535 00:13:22,887 --> 00:13:25,196 have a license, which means if 536 00:13:25,196 --> 00:13:26,846 they use that deliverable 537 00:13:26,994 --> 00:13:28,262 without a license, 538 00:13:28,412 --> 00:13:29,162 what is that? 539 00:13:29,354 --> 00:13:30,404 That is a copyright 540 00:13:30,404 --> 00:13:30,994 infringement. 541 00:13:31,197 --> 00:13:32,927 And so then you not only have 542 00:13:32,957 --> 00:13:34,514 a, contract breach, you 543 00:13:34,544 --> 00:13:36,544 also have all the statutory 544 00:13:36,544 --> 00:13:37,934 damages that you get under 545 00:13:37,934 --> 00:13:39,014 intellectual property law, 546 00:13:39,234 --> 00:13:40,787 because they have infringed 547 00:13:40,787 --> 00:13:42,744 your copyright if they haven't 548 00:13:42,814 --> 00:13:44,624 paid your compensation. 549 00:13:44,834 --> 00:13:45,714 So we want to always 550 00:13:45,714 --> 00:13:46,274 have that. 551 00:13:46,497 --> 00:13:48,057 this should never be 552 00:13:48,237 --> 00:13:49,792 Controversial, when you're 553 00:13:49,792 --> 00:13:50,652 asking for this, 554 00:13:50,887 --> 00:13:52,117 Typically, they will not agree 555 00:13:52,117 --> 00:13:53,427 to it, with respect to the 556 00:13:53,457 --> 00:13:54,997 work for hire the assignment, 557 00:13:55,157 --> 00:13:56,251 you can try it, there should 558 00:13:56,251 --> 00:13:57,771 be no objection to it with 559 00:13:57,771 --> 00:13:59,781 respect to the license of your 560 00:13:59,964 --> 00:14:00,887 intellectual property, 561 00:14:01,144 --> 00:14:02,197 clarifying that it's not 562 00:14:02,197 --> 00:14:02,547 exclusive. 563 00:14:03,022 --> 00:14:03,942 Frankly, you know, if it 564 00:14:03,942 --> 00:14:05,112 doesn't say exclusive, it 565 00:14:05,112 --> 00:14:06,592 is by default non exclusive, 566 00:14:06,622 --> 00:14:07,664 but, let's be clear. 567 00:14:07,664 --> 00:14:08,914 So there's no misunderstanding. 568 00:14:08,914 --> 00:14:09,884 Nobody thinks they have 569 00:14:09,884 --> 00:14:10,964 an exclusive license. 570 00:14:11,206 --> 00:14:12,841 And then we've just cleaned 571 00:14:12,841 --> 00:14:14,754 up to make sure that 572 00:14:14,764 --> 00:14:16,054 the license that you 573 00:14:16,054 --> 00:14:17,224 have granted them in your 574 00:14:17,224 --> 00:14:18,524 preexisting material is 575 00:14:18,614 --> 00:14:20,694 only, for their use and their 576 00:14:20,694 --> 00:14:21,494 use alone. 577 00:14:21,674 --> 00:14:22,707 They can't transfer it. 578 00:14:22,707 --> 00:14:24,047 They can't sub license it. 579 00:14:24,241 --> 00:14:24,877 They can't create 580 00:14:24,887 --> 00:14:27,137 derivatives and it is for their 581 00:14:27,147 --> 00:14:28,057 internal use. 582 00:14:28,477 --> 00:14:29,367 And, you know, I'm making 583 00:14:29,367 --> 00:14:30,557 the assumption that the 584 00:14:30,557 --> 00:14:31,347 deliverables for their 585 00:14:31,347 --> 00:14:32,354 internal use most of the 586 00:14:32,354 --> 00:14:33,414 things that we do for 587 00:14:33,414 --> 00:14:34,907 clients is, to help them 588 00:14:35,081 --> 00:14:36,757 inside their businesses it's 589 00:14:36,757 --> 00:14:37,387 not something that they're 590 00:14:37,387 --> 00:14:39,287 reselling and so make that 591 00:14:39,297 --> 00:14:41,207 very clear in the license 592 00:14:41,567 --> 00:14:42,607 so that if they want to 593 00:14:42,607 --> 00:14:43,847 do something else with it, 594 00:14:44,011 --> 00:14:45,054 they want to use it with, 595 00:14:45,141 --> 00:14:46,851 an affiliate, or they want 596 00:14:46,871 --> 00:14:48,704 to somehow incorporated 597 00:14:48,704 --> 00:14:49,484 in something that they're 598 00:14:49,484 --> 00:14:50,114 going to sell. 599 00:14:50,271 --> 00:14:51,361 You want to make sure that 600 00:14:51,361 --> 00:14:53,601 your fee is consistent with 601 00:14:53,681 --> 00:14:55,027 the breadth of the use 602 00:14:55,257 --> 00:14:56,517 that they're looking for. 603 00:14:56,744 --> 00:14:59,297 these are all very reasonable 604 00:14:59,307 --> 00:14:59,987 requests. 605 00:15:00,221 --> 00:15:01,961 people often ask me, I don't 606 00:15:01,961 --> 00:15:03,501 know if I'm allowed to ask 607 00:15:03,501 --> 00:15:04,261 for changes. 608 00:15:04,547 --> 00:15:05,854 You are allowed to ask 609 00:15:05,864 --> 00:15:06,564 for changes. 610 00:15:06,771 --> 00:15:07,687 =, they just need to be 611 00:15:07,727 --> 00:15:09,767 reasonable and to be very 612 00:15:09,767 --> 00:15:10,907 clear that you're simply 613 00:15:10,917 --> 00:15:12,301 trying to protect your 614 00:15:12,301 --> 00:15:13,554 intellectual property, but 615 00:15:13,554 --> 00:15:14,724 you do want to make sure that 616 00:15:14,724 --> 00:15:16,084 they have the rights to do 617 00:15:16,094 --> 00:15:19,141 what they need to do with your 618 00:15:19,211 --> 00:15:20,081 deliverables. 619 00:15:20,421 --> 00:15:22,311 And so, with that, that's 620 00:15:22,311 --> 00:15:23,021 what I wanted to talk to 621 00:15:23,021 --> 00:15:24,487 you guys about with that. 622 00:15:24,527 --> 00:15:27,251 I am happy to take your 623 00:15:27,281 --> 00:15:28,301 questions and you can 624 00:15:28,341 --> 00:15:29,281 pop them in the chat. 625 00:15:29,431 --> 00:15:30,501 and also, you can always 626 00:15:30,531 --> 00:15:32,001 find me if you have any follow 627 00:15:32,001 --> 00:15:33,714 up questions, on LinkedIn, 628 00:15:33,734 --> 00:15:35,124 please feel free to connect 629 00:15:35,124 --> 00:15:36,361 with me there and then the 630 00:15:36,361 --> 00:15:37,631 recording will also 631 00:15:37,631 --> 00:15:39,341 be available there as well. 632 00:15:39,521 --> 00:15:40,391 So I'll hang around for a 633 00:15:40,391 --> 00:15:41,191 minute to see if you have 634 00:15:41,191 --> 00:15:41,681 any questions. 635 00:15:42,104 --> 00:15:43,137 Otherwise, I thank you for 636 00:15:43,137 --> 00:15:43,767 joining me. 637 00:15:44,027 --> 00:15:44,667 All right, guys. 638 00:15:44,667 --> 00:15:46,637 Well, thank you again. 639 00:15:46,677 --> 00:15:48,834 And if anything comes up, you 640 00:15:48,844 --> 00:15:50,674 know where to find me and I 641 00:15:50,674 --> 00:15:51,614 look forward to next time. 642 00:15:51,614 --> 00:15:53,021 Don't forget, the last 643 00:15:53,051 --> 00:15:54,887 Wednesday of every month, at 644 00:15:54,887 --> 00:15:56,207 noon Eastern. 645 00:15:56,382 --> 00:15:58,334 And I do take requests. 646 00:15:58,394 --> 00:15:59,964 So if there's ever a topic 647 00:15:59,984 --> 00:16:01,464 that you want me to address, 648 00:16:01,737 --> 00:16:03,364 on a live, just shoot it 649 00:16:03,364 --> 00:16:04,957 over to me and I'd be happy 650 00:16:04,957 --> 00:16:05,467 to do that. 651 00:16:05,647 --> 00:16:06,129 Thanks. 652 00:16:06,417 --> 00:16:07,274 And then that's, where 653 00:16:07,274 --> 00:16:08,814 you can find me as well. 654 00:16:08,966 --> 00:16:10,084 I'm online. 655 00:16:10,326 --> 00:16:10,569 All right. 656 00:16:10,569 --> 00:16:11,369 Thanks guys. 657 00:16:11,582 --> 00:16:12,232 See you next month.