Work For Hire Principle as an Avoidance of the Reversion of Copyright Ownership in Indonesia

14 Apr

General Overview

Copyright law is a critical aspect of intellectual property protection in Indonesia. Indonesia's copyright laws have undergone significant changes in recent years, and it is crucial for businesses operating in the film and music industries to understand the Work for Hire principles and its practical usage to avoid triggering auto reversion of copyright ownership. This article provides a clear introduction to copyright law in Indonesia, explains the concept of Work for Hire principles in Indonesian copyright law. We will discuss how Work for Hire is commonly used in practice to avoid triggering auto reversion of copyright ownership, offers recommendations and best practices for clients, and addresses common misconceptions or areas of confusion regarding copyright ownership.

Overview of Copyright Law in Indonesia

Indonesia's copyright law is governed by Law Number 28 of 2014 concerning Copyright (“Copyright Law”), which replaced the previous Copyright Law Number 19 of 2002. Copyright Law covers various types of works, including literature, music, dance, film, and software. Based on the Article 1 of Copyright Law, Copyright ownership in Indonesia is automatically granted to the creator of the work, and it provides the creator with exclusive rights to reproduce, distribute, and perform the work.

One of the critical aspects of copyright law in Indonesia is the Work for Hire principles, which allows employers to own the copyright of works created by employees in the course of their employment. Understanding these principles is essential for businesses operating in the film and software industries to avoid triggering auto reversion of copyright ownership.

Work for Hire Principles in Indonesian Copyright Law

Work for Hire is a concept which depicted in the Article 34 of Copyright Law, that allows employers to own the copyright of works created by their employees in the course of their employment. In Indonesian copyright law, this principle is known as "kerja sama" or "cooperation work." Under this principle, the employer is considered the author of the work and is entitled to all the exclusive rights granted by copyright law.

The types of works that can be considered Work for Hire in Indonesia include films, computer programs, translations, adaptations, and compilations. It is important to note that for a work to be considered Work for Hire, it must be created within the scope of the employee's employment and must be the result of the employer's direction or control.

Practical Usage of Work for Hire Principles

In the film and software industries in Indonesia, Work for Hire is commonly used to avoid triggering auto reversion of copyright ownership. Auto reversion occurs when the creator of a work retains copyright ownership after a specific period. In Indonesia, under Article 59 of Copyright Law, the creator of a work retains copyright ownership after 50 (fifty) years for individual works and 50 (fifty) years from the date of publication for collective works.

For businesses operating in the film and software industries, auto reversion can have significant implications. It could lead to the loss of valuable intellectual property rights, and it could also limit the ability of businesses to exploit their works commercially. To avoid auto reversion, businesses can use Work for Hire principles to ensure that they own the copyright of works created by their employees in the course of their employment.

Best Practices for Clients

To avoid triggering auto reversion of copyright ownership, clients in the film and software industries in Indonesia should clearly define Work for Hire in their agreements with employees. The agreement should clearly state that the employer owns the copyright of works created by employees in the course of their employment. It should also outline the scope of the employment and the direction or control exercised by the employer.

Clients should also ensure that they have proper documentation of their ownership of copyright in works created by their employees. This documentation should include employment contracts, work orders, and any other relevant agreements.

Misconceptions or Areas of Confusion

One of the common misconceptions regarding copyright ownership in Indonesia is that the creator of a work always retains ownership. As outlined in Indonesian Copyright Law, this is not always the case, and employers can own the copyright of works created by their employees under the Work for Hire principles.

Disclaimer:
This client update is the property of ARMA Law and intended for providing general information and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. ARMA Law has no intention to provide a specific legal advice with regard to this client update.

Authors

Authors