Assignment and Licensing of Copyrights under Copyright Act

Copyright law plays a crucial role in protecting creative works in India. Authors, composers, artists, filmmakers, software developers and other creators invest intellectual effort in producing original works. The law recognises this effort and grants certain exclusive rights. However, copyright is not meant to remain idle. It is meant to be commercially exploited, shared and used in a lawful manner.

Two important legal mechanisms enable such exploitation: assignment and licensing of copyright. Though these terms are often used together, they are legally different and have distinct consequences. A clear understanding of both concepts is essential for anyone dealing with intellectual property.

This article explains assignment and licensing of copyrights in a detailed yet simple manner, based on the provisions of the Copyright Act, 1957.

Understanding Copyright: The Foundation

Before discussing assignment and licensing, it is important to understand what copyright actually is.

Copyright is a bundle of exclusive rights given to the creator of an original work. Section 14 of the Act defines these rights. Depending on the nature of the work, copyright may include the right to:

• Reproduce the work
• Issue copies to the public
• Communicate the work to the public
• Adapt the work
• Translate the work
• Make cinematograph films or sound recordings

These rights are economic rights. They allow the owner to commercially benefit from the work. At the same time, the author also has moral rights under Section 57, which protect reputation and integrity.

Copyright is intangible property. Even though it cannot be physically seen or touched, it can be transferred, assigned, licensed, inherited and commercially exploited like any other property.

Assignment of Copyright

Assignment means transfer of ownership in copyright from one person to another. When copyright is assigned, the assignee steps into the shoes of the owner in respect of the rights assigned.

Section 18 of the Copyright Act provides that the owner of copyright in an existing work or the prospective owner of a future work may assign the copyright to any person.

Once a valid assignment is made, the assignee becomes the owner of the assigned rights. The assignor retains ownership only in respect of the rights not assigned.

Assignment Can Be Whole or Partial

Copyright is not a single right. It is a bundle of rights. Therefore, assignment may be:

• Entire copyright in the work
• Only specific rights (for example, only publishing rights or only film adaptation rights)
• Limited by territory (for example, rights only within India)
• Limited by duration (for example, rights for 10 years only)

This flexibility allows commercial arrangements in industries like publishing, film production, music, broadcasting and software.

For instance, a novelist may assign film adaptation rights to a production company while retaining book publishing rights.

Assignment of Future Works

The law permits assignment of future works as well. This means that copyright in a work that is not yet created may be assigned in advance.

However, such assignment becomes effective only when the work actually comes into existence.

The Supreme Court in Saregama India Ltd v. Suresh Jindal recognised that assignment of future copyright is valid, and once the work comes into existence, the assignee is treated as the owner for the purposes of the Act.

Essential Requirements for Valid Assignment

Section 19 of the Act lays down strict conditions for a valid assignment.

Assignment Must Be in Writing

Assignment must be:

• In writing
• Signed by the assignor or authorised agent

Oral agreements are not legally valid for copyright assignment.

This requirement ensures clarity and prevents disputes.

Identification of the Work

The agreement must clearly identify the work being assigned. It should mention:

• Title of the work
• Nature of the work
• Any relevant description

Uncertainty in identification may create legal complications.

Specification of Rights Assigned

The agreement must clearly specify:

• Which rights are being assigned
• Whether assignment is exclusive
• Any conditions or limitations

In Video Master v. Nishi Production, the Bombay High Court held that assignment of video rights did not automatically include satellite broadcasting rights. Each mode of communication constitutes a separate right. Therefore, rights must be specifically mentioned.

Duration of Assignment

The agreement must mention the duration.

If duration is not mentioned, the law presumes that assignment is for five years from the date of assignment.

Territorial Extent

The agreement must specify territorial extent.

If not specified, it is presumed to extend throughout India.

Royalty and Consideration

The agreement must mention the amount of royalty payable, if any, to the author or legal heirs.

Recent amendments ensure that authors of literary and musical works used in films or sound recordings cannot be deprived of their right to equal share in royalties.

Exercise Within One Year

If the assignee fails to exercise the assigned rights within one year from the date of assignment, the assignment is deemed to lapse unless otherwise agreed.

This prevents indefinite locking of rights without exploitation.

Licensing of Copyright

Licensing is different from assignment. In licensing:

• Ownership remains with the copyright owner
• Only permission is granted to use specific rights

Section 30 of the Act provides that the owner may grant any interest in copyright by licence in writing signed by the owner or authorised agent.

Unlike assignment, licensing does not transfer ownership.

Types of Licences

Licences may be classified into several types.

1. Voluntary Licence

This is granted by the copyright owner voluntarily.

A voluntary licence must:

• Be in writing
• Specify duration
• Specify territorial extent
• Specify royalty
• Specify rights licensed

Section 30A makes provisions of Section 19 applicable to licences with necessary modifications.

2. Exclusive Licence

Defined under Section 2(j), an exclusive licence grants rights to the licensee to the exclusion of all others, including the licensor.

The licensee can enforce copyright in his own name.

3. Non-Exclusive Licence

It merely grants permission to use the work. The licensor can grant similar licences to others.

This is common in software and publishing industries.

4. Sole Licence

Only the licensor and licensee may use the work. No third party is allowed.

5. Co-Exclusive Licence

Rights are granted to a limited group of licensees.

6. Implied Licence

Permission inferred from conduct. For example, submission of an article for publication may imply licence for publication.

Compulsory Licences

Compulsory licences are granted by statutory authority when the owner refuses to make the work available to the public without reasonable grounds.

Categories include:

• Works unreasonably withheld from public
• Orphan works
• Works for persons with disabilities
• Translation licences
• Reproduction of works unavailable in India

Compulsory licences balance public interest and private rights.

Statutory Licences

Statutory licences operate automatically when statutory conditions are met.

Two main categories:

• Cover version recording licences under Section 31C
• Broadcasting licences under Section 31D

Statutory licences fix royalty rates and limit owner autonomy.

Key Differences Between Assignment and Licensing

Nature of Transfer

The primary difference lies in the nature of transfer. Assignment involves transfer of ownership in the copyright or in certain specified rights forming part of the copyright. Once validly assigned, those rights no longer remain with the assignor. In contrast, a licence does not transfer ownership. It merely authorises the licensee to perform certain acts that would otherwise amount to infringement.

Legal Status of the Recipient

In the case of assignment, the assignee becomes the owner of the assigned rights for the purposes of the Copyright Act, 1957. The assignee can enforce those rights in his own name. However, in licensing, the licensee does not become the owner. The licensee is only permitted to use the work in the manner specified in the licence agreement.

Title in Copyright

Assignment transfers title in respect of the rights assigned. This means proprietary interest passes from the assignor to the assignee. In a licence arrangement, title never passes. The licensor continues to remain the copyright owner at all times.

Right to Further Transfer

An assignee, being the owner of the assigned rights, may further assign those rights to another person, unless the agreement restricts such transfer. A licensee, on the other hand, cannot transfer ownership because no ownership has been received. Sub-licensing is possible only if expressly permitted in the agreement.

Control and Reversion

In assignment, control over the assigned rights shifts to the assignee. The assignor retains control only over unassigned rights. In licensing, overall control remains with the licensor. Upon expiry or termination of licence, all rights continue to vest with the licensor without need for re-transfer.

Conclusion

Assignment and licensing are central mechanisms under the Copyright Act, 1957 for commercial exploitation of creative works.

Assignment results in transfer of ownership of specified rights. Licensing grants permission without transferring ownership. Both require written agreements specifying rights, duration, territorial extent and royalty.

Judicial decisions and statutory amendments have strengthened protection of authors while enabling industries to function efficiently.

Note: This article was originally written by  Muskaan Mathur [Student, Savitribai Phule, Pune University (SPPU)] on 8 January 2021. It was subsequently updated by the LawBhoomi team on 11 February 2026.