Copyright and business

JUDr. Ondřej Preuss, Ph.D.
12. December 2023
8 minutes of reading
8 minutes of reading
Tradesmen and companies

When you run a business, you will encounter copyright in a variety of situations. The copyright work may be a product you produce directly, the result of work you do for a client, or your copyright work you pass on to your customers for further use. But you may also be using someone else’s copyrighted work on your website, and sometimes you may not even know that a particular photograph, text or other product is copyrighted and that you must always have the proper permission to use it.

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Quick overview

  • Copyright arises automatically when a work is created.

  • You may not use the work for business purposes (e.g. photographs from the Internet) without the author’s permission.

  • Use is possible under license or license agreement.

  • In case of unauthorised use, the author can claim damages or unjust enrichment.

  • Copyright is often dealt with for websites, marketing, photos, graphics or software.

If you need a license agreement or copyright check, our attorneys can prepare or check one online.

What is a copyright work

The Copyright Act defines the term copyright work in its provisions as a literary work, other artistic work and a scientific work. Important conceptual features of a work of authorship are that it is a “unique result of creative activity” and that it is expressed in an “objectively perceptible form”. A computer program, database or photograph that is original in the sense that it is the author’s own intellectual creation is also considered a work under the law. It is therefore no longer necessary that they be unique, but it is sufficient that they are an original creation.

A work that meets the statutory requirements is automatically protected by copyright law whenever it is expressed in an objectively perceptible form. It is therefore not necessary to mark copyright works with the label “copyright” in order to protect them, as is sometimes mistakenly assumed; this label is nowadays only informative in the Czech Republic (and in most other countries).

In practice, we often encounter entrepreneurs who use photographs from the Internet in the belief that they are freely available. Typically, these are images from Google Images or from a competitor’s website.

However, the author of the photograph may get in touch even after several years and demand that the images be withdrawn and payment of remuneration for unauthorised use. According to copyright law, the author has the exclusive right to use his work or grant permission to another person, so without a license, the photo cannot be used in business.

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Use of another author’s work

The use of someone else’s copyright work can occur, for example, when you create a website to present your goods and services as a business. For such a presentation you will often need photographs, either depicting specific goods or just adding to the overall look of the site. Here it is important to make sure that all photographs are used legally.

Of course, you can take your own photos of your goods, but if you want to use another author’s photos, you will always need their permission to do so. This is typically obtained if you buy the photographs from the photographer at a price he or she sets.

So if you get the photo from a photo agency or make a deal with a professional photographer, it’s all good. However, if you use photos on your website that you just downloaded from the internet somewhere, you may be unpleasantly surprised when you are contacted by the photographer asking for their immediate removal and financial compensation for their unauthorised use.

Another common problem is when a business pays a freelancer for a graphic or logo and believes that they automatically own it. However, in reality, paying for the work does not transfer the copyright.

The author can only use the work or grant another person permission to use it on the basis of a contract. In the absence of a licensing agreement, a dispute may arise as to whether the business can use the graphic at all, for example, on the web or in advertising.

If you’re not sure whether you can use someone else’s photograph, it’s worth getting a copyright check from a solicitor – often a short consultation is all it takes. Feel free to use our attorney consultation and send us your rights query.

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The need for the author’s consent also applies to all other possible uses of the copyright work. This may apply, for example, to the use of the copyright work or parts of it in an advertisement for your goods.

The Copyright Act protects not only the finished work, but also its individual development stages and parts, including the title and the names of the characters, as long as they meet the above criteria for a work of authorship.

So, if you decide that your goods or services would sell better if you associated them with a well-known movie character or used a popular tune in an advertising spot, you should also contact the authors of those works. Again, you need their permission to use the work if you don’t want to risk unpleasant problems in the future.

Licence and licence agreement

You can also enter into a licence agreement with the author of the work for the purpose of using it. This agreement can be either exclusive or non-exclusive. If you enter into an exclusive agreement with the author, you become the only one who can dispose of the work and the author may not provide the work to anyone else and may not dispose of it himself.

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Tip: An exclusive license agreement should always be in writing and preferably drafted by an experienced attorney. We can draft a customized license agreement for you or review an existing document to protect your copyrights. We will make sure that the copyright is set up and treated fairly, without any ambiguities or kinks. We can handle this online, nationwide and normally within 3 days.

On the other hand, a non-exclusive licence does not have to be in writing and the author can grant it to more than one person and can also dispose of the work himself.

Sometimes disputes arise between people who have contributed jointly to the creation of a work. In the case of a jointly authored work, all the co-authors usually decide together on the use of the work. If they do not agree, the use of the work can be complicated and sometimes it is necessary to resolve the situation in court.

We can tailor a licence agreement for you.

What if this happens to you

You may also find yourself on the other side of the barricade if, for example, your photographed goods are used by a competitor on their website without guile. Or someone else starts offering your original concept for a service as their own.

In this case, the law gives you options to defend yourself.

  • As an author , you can seek to have these cases removed, for example by withdrawing the unauthorised reproduction or imitation of the work or device, product or component from trade or other use, or even by destroying it.
  • It is also important that you have the right to compensation for damages.

If it is not possible to determine the actual loss of profit, you can claim compensation as author or licensee for the amount of the remuneration that would have been customary for obtaining such a licence at the time of the unauthorised use of the work.

The amount of the unjust enrichment suffered by the person who has made unauthorised use of the work without obtaining permission from you is double the remuneration that would have been normal at the time of the unauthorised use of the work.

Businesses sometimes worry about whether they can use photographs of buildings or sculptures in their materials. However, the law contains an exception – if the work is permanently placed in a public place, it can be captured, for example by photography, and such a record can be used further.

The problem may arise more in a situation where someone creates three-dimensional copies of architectural works or otherwise interferes with the work itself.

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Tip: Learn how to protect your copyright.

These provisions of the Copyright Act can therefore be used to determine the amount you can claim from the other party in relation to the unauthorised use of your work.

Should the person concerned fail to respond to a request not to use your work in the future and refuse to pay the amount of compensation requested, you can take your claim to court.

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Protect your copyright

As we have already announced, copyright protection is automatic when a work is created, but we would still recommend that you register your work with a collective copyright manager. These are legal entities authorised by the Ministry of Culture to carry out collective copyright management.

Specifically, these organisations are:

  • OSA – for authors of music and lyrics and music publishers,
  • OOA-S – for authors of works of visual art, architecture, photographers, authors of computer program images and television/film editors
  • DILIA – for authors of literary and music drama works and publishers,
  • INTERGRAM – for performers, producers of audiovisual and audio recordings,
  • GESTOR – for cases where you are dealing with the resale of an original work of art,
  • OAZA – for sound engineers.

Summary

Copyright is governed by the Copyright Act, and protects any work that is the unique result of the creative activity of the author and is expressed in an objectively perceptible form, such as text, photography, music, graphics or a computer program. Copyright arises automatically when the work is created and no registration is required. The author has the exclusive right to decide how his or her work is used, and other persons may use the work generally only with the author’s consent or under licence. Without consent, the work may only be used in exceptional cases provided for by law, for example if the work is permanently placed in a public place and is captured by a photograph or other recording. If someone uses an author’s work without permission, the author can seek protection of his or her right, for example, by seeking an injunction against further use of the work, removal of unauthorised copies or compensation for damages.

Frequently Asked Questions

When does copyright arise?

Copyright arises automatically at the moment when the work is expressed in an objectively perceptible form. Thus, no registration or other formal steps are required.

Can someone use someone else's copyrighted work without the author's permission?

In general, the author has the exclusive right to use his work or to grant another person the right to use it by contract. Another person may use the work without the author’s consent only in cases expressly provided for by law.

How can an author allow another person to use his work?

The author may allow another person to use the work by means of a licence agreement, which grants the right to use the work to a certain extent. The granting of the licence does not extinguish the author’s right – the author must only tolerate the use of the work to the extent agreed in the contract.

How can the author defend himself against unauthorised use of the work?

If a copyright is infringed, the author may seek, for example, a declaration of authorship, removal of unauthorised copies of the work, an injunction against further interference or appropriate compensation.

When can a work be used without the author's consent?

The Copyright Act allows for certain exceptions to the need for the author’s consent. For example, it is possible to photograph or otherwise record a work that is permanently placed in a public place (e.g. a statue or a building) and to use the recording.

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Are you solving a similar problem?

License Agreement

Do you need to draw up a licence agreement or just review the existing one? That’s what we’re here for. We’ll ensure a fair copyright setup for you, whether you’re a licensor or a licensee. We act quickly, at upfront prices. You can only pay after the service has been provided.

I want to help

Author of the article

JUDr. Ondřej Preuss, Ph.D.

Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.

Education
  • Law, Ph.D, Pf UK in Prague
  • Law, L’université Nancy-II, Nancy
  • Law, Master’s degree (Mgr.), Pf UK in Prague
  • International Territorial Studies (Bc.), FSV UK in Prague

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