CG68250 - Intellectual Property Rights: copyright
Copyright is a property right which protects the economic
interests of authors in relation to works created by them. The
owner of copyright has the exclusive right to do certain acts in
respect of the work in question which would otherwise be
restricted. For example, if a person without the consent or licence
of the copyright owner, imports into the UK an article which he has
reason to believe is an infringing copy of the work and which he
uses for non-domestic or public purposes, he will infringe
copyright. Copyright infringement is generally actionable by the
owner of copyright, an exclusive licensee or, in certain cases, a
non-exclusive licensee, who has a claim for damages, injunctive
relief or an account of profits against the infringer.
Whilst copyright in relation to a particular work consists
of a bundle of rights it is treated as a single asset within the
meaning of TCGA92/S21(1).
Ideas are not the subject matter of copyright except in
relation to the form in which ideas are expressed. To be protected
by copyright under the Copyright Designs and Patents Act 1988 (CDPA
1988) that form of expression must, in the case of literary,
dramatic, musical and artistic works, be original. That is, it must
originate from the author, not be copied from another work and it
must involve some labour, skill or independent judgment.
Works created on or after 1 August 1989 are protected in law
by the CDPA 1988 whilst works created before that date are
protected by pre-existing legislation. The statutory provisions
prevent the unauthorised use of copyright works thus protecting the
economic interests of the author.
S1 CDPA 1988 provides that copyright subsists in the
following descriptions of work:
- original literary, dramatic, musical or artistic works,
- sound recordings, films, broadcasts or cable programmes, and
- the typographical arrangement of published editions.
Literary works include work expressed in writing or in print
which involves skill and labour and generally affords information,
instruction or pleasure. The Copyright (Computer Programs)
Regulations 1992 extended the rules covering literary works to
include computer programs.
A database may qualify for protection under the CDPA 1988 as
a literary work. In such situations it may be termed a copyright
database and the general rules relating to copyright apply. A
database may also be protected under the Copyright and Rights in
Databases Regulations 1997 (SI 1997/3032) by virtue of a database
right.
Dramatic works include works of dance or mime.
Musical works consist of music exclusive of the words or
actions to be sung or performed with the music.
Artistic works include graphic works, photographs,
sculpture, collages and a work of architecture. Graphic works
include any painting, drawing, diagram, map, chart or plan.
The author or person who created the work is the first owner
of copyright except where a literary, dramatic, musical or artistic
work created after 1 August 1989 or a film created after 1 December
1996 is made by an employee in the course of his employment, in
which case the employer is the original owner. However, copyright
is capable of assignment in part or in full provided that it is in
writing. It is also common for licences to be granted, for example,
the grant of film rights over a book.
Transactions involving copyright will generally fall to be
taxed as income receipts, see BIM50700+. Exceptionally, a
transaction may give rise to a chargeable gain or an allowable
loss, for example:
- Gifts of copyright by the author where the decision in Mason v Innes (44TC326) applies, see BIM50745.
- Disposals of copyright held as an investment by someone other than the author.
After establishing the facts you will need to consider whether copyright is a wasting asset within TCGA92/S44 (1), see CG76700+. The following table below sets out the basic provisions for new works. It should be noted that works created before 1 August 1989 are subject to transitional provisions and that the position may differ for some foreign works.
| Type of original work | Duration of Copyright |
| Literary, dramatic, musical or artistic works (including photographs) created on or after 1 January 1996 | 70 years from the end of
the calendar year in which the author or the last remaining author
of the work dies.
If authorship is unknown 70 years from the end of the calendar year in which the work was created or, if during that period the work was made available to the public, 70 years from the end of the calendar year in which it was first made available. |
| Sound recordings | 50 years from the end of the calendar year in which the sound recording was made or, if not released immediately, 50 years from the end of the calendar year in which it was released. |
| Films | 70 years from the death of the last to survive of the principal director, the author of the film screenplay, the author of the film dialogue and the composer of the music specifically created for and used in the film. |
| Broadcasts | 50 years from the end of
the calendar year in which the broadcast was made.
Copyright for repeat broadcasts expires at the same time as the original. |
| Typographical arrangement of published Editions | 25 years from the end of the calendar year in which the edition was first published. |
Guidance on obtaining valuations of intangible assets including copyright is given at CG68300.
