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What is a copyright license agreement? It is the agreement in which the creator or rights holder of a copyrighted work grants another party permission to use that work, in exchange for remuneration and within agreed limits, without the copyright itself being transferred. The work can be a text, a photograph, an illustration, a piece of music, a video, or software. Pursuant to Article 1 of the Copyright Act, the creator has the exclusive right to make his work public and to reproduce it. With a license, he relinquishes part of that authority for specific forms of use, while remaining the rights holder. The license regulates which forms of exploitation, which territory, and which duration apply.
The short answer
- A copyright license agreement grants the right to use a work without the transfer of the copyright.
- It works for text, photos, illustrations, music, video, and software.
- You specify the forms of exploitation: what use is permitted, in which medium, in which area, and for how long.
- A license differs from a transfer; a transfer requires a deed pursuant to Article 2 of the Copyright Act.
- You cannot completely license away moral rights under Article 25 of the Copyright Act, such as attribution.
What exactly is a copyright license agreement?
Copyright arises automatically as soon as someone creates a work that has a unique, original character and bears the personal stamp of the creator. Registration is not required. The creator is the only one who may determine whether and how their work is used. If someone else wishes to publish, sell, modify, or distribute the work, permission is required. A license is precisely that permission, laid down in agreements. The creator retains the copyright and grants the user a defined right of use.
Whoever is the creator is not always the originator. If an employee creates a work in the course of their employment, the employer is considered the creator and rights holder pursuant to Article 7 of the Copyright Act. In the case of assignments to self-employed individuals, however, the copyright rests with the creator, unless it has been transferred in writing. Before granting a license, it is therefore important to establish who actually holds the rights.
License or transfer: the difference
In a transfer, the creator assigns the copyright and loses control. Pursuant to Article 2 of the Copyright Act, such a transfer requires a deed, i.e., a signed document, and it covers only the powers stated in the deed or which necessarily derive from it. With a license, the creator retains the right and merely relinquishes the right of use. This makes a license more flexible: you can license the same work to multiple users and set different conditions for each user. For most creators, a license is therefore more attractive than selling the right.
Forms of operation, area and duration
The core of a copyright license is the description of the forms of exploitation. You determine exactly which use is permitted:
- Form of exploitation. May the work be used in print, online, in advertising, in a product, or in a broadcast? Specify each form separately.
- Exclusivity. Exclusive to a single user, or non-exclusive so that the creator can license to more parties.
- Territory. The Netherlands, the Benelux, the EU or worldwide.
- Duration. A fixed term, one-time use, or for the duration of the copyright, which extends until seventy years after the death of the creator.
Everything not included in the license remains with the creator. A user who wishes to use the work in another medium or area requires permission to do so again.
Moral rights that you cannot license away
In addition to exploitation rights, the creator has personality rights, also known as moral rights, under Article 25 of the Copyright Act. These cannot simply be contracted away. The creator retains the right to have their name mentioned and the right to object to alterations to the work. The creator can waive some of these rights, such as the right to attribution, but they cannot waive the right to object to distortion, mutilation, or alteration that harms their honor or reputation. Therefore, a license stating that the user may freely adapt the work and omit the name does not go as far as it seems: the mandatory part of Article 25 remains in effect.
Special cases: film and the maker as a natural person
A separate rule applies to audiovisual works. In the case of a film work, the creators are presumed, pursuant to Article 45d of the Copyright Act, to have transferred their exploitation rights to the producer, unless otherwise agreed in writing, with a right to fair remuneration. Anyone licensing video takes this into account. If the creator is a natural person who exploits their work, copyright contract law also applies. Article 25c of the Copyright Act entitles the creator to fair remuneration, Article 25e allows for dissolution if the user does not sufficiently exploit the work, and unreasonably burdensome clauses are voidable. These rules protect the individual creator against an excessively biased contract.
A practical example
A photographer takes product photos for a webshop and does not wish to sell them, but rather license them. She grants a non-exclusive license for use on the webshop and associated social media channels, within the Netherlands, for two years, for a fixed fee per photo series. The license excludes use in printed advertising and sale to third parties, and stipulates that the photographer must be credited as the creator in the event of editorial use. Consequently, the webshop may not simply use the photos in a printed brochure or on packaging; a new agreement is required for that. In this way, the photographer retains control and a second revenue opportunity.
Honest recommendation
You don't always need a lawyer. For a simple, non-exclusive license to a single work, with limited use and a fixed fee, you can often get quite far with a tried-and-tested template that you fill out carefully. Be sure to specify the forms of exploitation and the attribution.
Have a copyright license agreement drafted as soon as exclusivity, multiple media, adaptation rights, or a royalty come into play. The pitfalls lie in an overly broad description of use, accidentally giving away rights you might need yourself later, and provisions that conflict with the mandatory moral rights under Section 25 of the Copyright Act. A lawyer knowledgeable in copyright law ensures that the license is correct and that you do not give away more than intended.
If you want to know exactly what should be included, read drafting a copyright license agreement. If you are considering outsourcing, check out having a copyright license agreement drafted. Need an agreement immediately? View our copyright license agreement.
Frequently Asked Questions
It is the agreement in which the creator or rights holder of a work grants another party permission to use that work, in exchange for payment and within agreed limits. The copyright does not transfer; the creator remains the rights holder, and the user acquires only a defined right of use.
With a transfer, you transfer the copyright and lose control; a transfer requires a deed pursuant to Article 2 of the Copyright Act. With a license, you retain the right and only relinquish use, allowing you to license the same work to multiple parties.
The specific forms of use you permit, such as use in print, online, in advertising, in a product, or in a broadcast. You list them separately, together with exclusivity, territory, and duration. Anything not stated in the license remains with the creator.
Not entirely. The creator retains moral rights pursuant to Article 25 of the Copyright Act. He may waive some, such as the right to attribution, but he cannot waive the right to object to distortion or infringement that harms his honor or reputation.
The creator, unless otherwise arranged. If an employee creates the work in the course of their employment, the employer is considered the creator pursuant to Article 7 of the Copyright Act. In the case of assignments to self-employed persons, the copyright rests with the creator, unless it has been transferred in writing.
Yes. If the creator is a natural person who exploits their work, copyright contract law grants the right to fair remuneration pursuant to Article 25c and to dissolution in the event of insufficient exploitation pursuant to Article 25e of the Copyright Act. Unreasonably burdensome clauses are voidable.
For a simple non-exclusive license on a single work, you can often use a good template. Consult a lawyer regarding exclusivity, multiple media, adaptation rights, or royalties, as these are where the pitfalls lie regarding overuse and compelling moral rights.
