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The Copyright Contracts Act (ACR Act) strengthens the position of creators vis-à-vis the parties that exploit their work. The Act grants creators the right to, among other things, fair remuneration, additional compensation in the event of unexpected success, and the possibility to reclaim rights in the event of non-use. This affects your licensing and exploitation agreements.
When does the ACR Act apply?
The ACR Act applies when a creator—for example, an author, photographer, or designer—enters into an agreement with an exploiter who will use the work, such as a publisher or producer. The Act aims to prevent the generally weaker creator from receiving an unreasonable deal.
Right to fair compensation
The creator is entitled to fair remuneration for granting exploitation rights. If the agreed remuneration is not fair in relation to the revenue, the creator may request an adjustment. Therefore, remuneration that is too low or unilateral does not automatically hold up.
The bestseller determination
If the work proves to be unexpectedly much more successful than foreseen at the time the agreement was concluded, the creator may request additional, fair compensation (the bestseller clause). In this way, the creator shares in the unforeseen success after all.
Retrieve upon non-use (non usus)
If the exploiter fails to exploit the work or exploits it insufficiently, the creator may terminate the agreement subject to conditions and reclaim their rights. In this way, rights do not remain unused indefinitely with a party that does nothing with them.
Frequently Asked Questions
To whom does the Copyright Contracts Act apply?
For creators who enter into an agreement with an exploiter of their work, such as a publisher or producer.
What is the bestseller criterion?
The creator's right to additional fair remuneration if the work turns out to be unexpectedly much more successful than anticipated.
Can a creator reclaim their rights?
In the event of insufficient exploitation, the creator may dissolve the agreement subject to conditions (non usus) and regain the rights.
Want to properly arrange your license or exploitation agreement?
Our legal experts draft a license agreement that complies with the ACR Act. View our copyrightteam or schedule a free consultation.
