What Does “Derivative Work” Mean in a Contract?
A new work based on or derived from one or more existing works, such as translations, adaptations, or modifications.
Detailed Explanation
Derivative works are protected by copyright but require permission from the original copyright holder to create. Examples include movie adaptations of books, translations, and software modifications.
In tech contracts, derivative work definitions matter for licensing. If you create modifications to licensed software, who owns those modifications? The answer depends on how 'derivative work' is defined.
Example in a Contract
“Client shall own all derivative works created by modifying the deliverables, provided such derivative works shall be subject to the licenses granted herein regarding any Contractor pre-existing IP incorporated therein.”
Why It Matters
Understanding derivative works is crucial for IP-heavy contracts. If you build on someone else's work, you may need permission. If others build on your work, you may retain rights in the underlying content.
Related Terms
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