You’ve worked hard to create something original for your business. Perhaps you wrote a book you’ve released to the public or published an article or video online to help drive sales. But one day, you’re browsing the web and see a website hosting your original work without your permission.
Your business has just become a victim of copyright infringement.
When somebody infringes on your copyright, they take your work without your permission and try to profit from it. As a business owner, you must protect your copyright to maintain full ownership of your original work and your rights to use that work in whatever way you see fit.
This article explains what copyright infringement is, its effects on your business, and the steps you can take to prevent infringement under intellectual property law.
What Is Copyright Infringement?
Copyright infringement is the legal term for when somebody acts in a way that violates the copyright of the owner of an original work. Copyright grants a creator the right to sell, distribute, copy, manipulate, and do anything they wish to with their work. If somebody other than the owner does any of these things with this type of intellectual property, they’ve infringed on the owner’s copyright and set themselves up for legal action against them.
For example, your business may create a short video related to one of your products or services. If somebody uses, sells, or uploads that video without your permission, they’ve committed copyright infringement.
Direct Copyright Infringement
Direct copyright infringement occurs when somebody takes your copyrighted work, copies or uses it, and then directly profits from that use. If we use our earlier video example and assume the offender posted your video on YouTube, the person who copied the video directly infringed on your copyright.
You can take action against them, such as issuing a copyright strike via the platform they shared the video on or by taking legal action by initiating a copyright infringement lawsuit.
Indirect Copyright Infringement
A party commits indirect copyright infringement if it plays an influencing or controlling role in a direct infringer’s ability to profit from your original work. Crucially, the indirect party must also benefit from the infringement.
In our video example, YouTube may be guilty of indirect copyright infringement because it offers the platform the direct infringer needs to publish your work. YouTube benefits from that publication because it can display ads on the video or potentially use it to attract visitors to the platform.
For another example, consider what may happen if somebody writes a guest blog post for a website. Instead of creating the content themselves, they copy one of your articles and give it to the website to publish with no attribution. If the website publishes that piece, it indirectly infringes on your copyright because it benefits from the ability to use that article to drive visitors and generate ad revenue.
What Effect Can Copyright Infringement Have On Your Business?
Copyright infringement can have several adverse effects that vary depending on whether your copyright is infringed upon or you are the one violating somebody else’s copyright.
If You Are the Copyright Owner
Assuming you’re the copyright owner, infringement can lead to various issues related to misrepresentation.
The offending party may pass themselves off as the owner of your copyrighted work, which could fool customers into thinking that anything the infringer does with that work represents your business. A malicious party could alter your work in ways you don’t want, leading to a negative perception of your business.
There’s also the issue of profit to consider. Copyright infringers generally profit from the original work they’ve copied. Returning to the video example, a direct infringer may benefit by putting ads on the video, thus allowing them to collect ad revenue. They may also benefit from the reputational boost your content provides them, meaning they may get customers that rightfully belong to you.
If You Are the Infringer
If you infringe on somebody else’s copyright, you face different issues.
The primary problem is that copyright infringement can carry financial penalties. A registered copyright owner can take legal action that could cost you between $750 and $30,000 for every example of direct infringement.
Moreover, this penalty can increase to $150,000 per infringement if the copyright owner shows that you willfully broke copyright law. For example, suppose the owner can show you violated their copyright with the express purpose of profiting from their work. In that case, you may receive a harsher financial penalty.
A secondary problem for copyright infringers is that the revelation of their infringement causes reputational damage. If you have copyright action against you, customers may negatively perceive your business and its practices, directly impacting your bottom line.
Take Steps To Prevent Copyright Infringement From Happening
As a business owner, you need to prevent copyright infringement on both ends of the spectrum. You must take action to prevent others from infringing on your company’s copyright to protect your intellectual property. You also have to ensure you don’t expose yourself to legal action by infringing others’ copyrights.
Preventing Others From Infringing on Your Copyright
You can take three key steps to prevent other parties from infringing on your company’s copyright:
- Use the copyright symbol.
- Register your copyright with the U.S. Copyright Office.
- Engage a copyright attorney.
Step #1: Use the Copyright Symbol
Often, people infringe on copyright without willfully intending to cause damage. You can avoid this problem by placing the © symbol on any original work your company creates. Accompany this with the name of the copyright owner and the first year the work was published. This symbol serves as a public notification that the work is protected.
Step #2: Register Your Copyright
Any original work of authorship you create in a tangible medium is automatically protected by copyright law. However, registration with the U.S. Copyright Office provides several key benefits:
- Every registered copyright goes into the U.S. Copyright Office’s database, allowing others to check its status.
- Copyright registration is required if you want to bring a lawsuit against an infringer.
- It serves as a marketing tool, showing customers you take intellectual property protection seriously.
Step #3: Engage a Copyright Attorney
You will typically need a copyright attorney to help navigate the legal issues, such as advising you on fair use and bringing legal action against an infringer, like sending a cease and desist letter. While costly, engaging an attorney for legal action or initial advice can be crucial.
How to Avoid Copyright Infringement as a Business
Ensuring you don’t infringe on anybody else’s copyright is just as important as protecting your own. These quick tips should help you avoid infringing on another party’s copyright.
Tip #1: Never Assume You Can Use a Piece of Content
Don’t ever assume you’re free to use a piece of content just because you can’t see a copyright notice attached. If you intend to use someone else’s work for any reason, always reach out to them and ask for permission. If you can’t get in touch with the copyright owner, don’t use the work.
Tip #2: Understand Fair Use Laws
You may be able to use another person’s original work under fair use laws. These laws typically apply when somebody uses a copyrighted work while adding something to it, such as quoting an article to offer a rebuttal (transformative use). If you intend to use copyrighted material without permission, ensure you’re covered by fair use. Consult a copyright attorney if you’re unsure.
Tip #3: Look for Public Domain Content
When in doubt, search for public domain content. Many creators offer images, music, and video clips on sites that provide business owners with free content. Alternatively, look for work covered by a Creative Commons license, which grants the public free access to use their work under certain conditions. The Creative Commons website contains a search portal named openverse that allows you to quickly find these materials.
Protect Your Business Against Copyright Infringement
Copyright infringement can damage your small business in many ways. Understanding what you should and shouldn’t do is critical if you want to protect your company, as is registering your copyrights.
Registering your copyrights gives you the proof needed to make legal issues far less costly and time-consuming. Trademark USP can help. Our copyright registration service takes all the hard work out of your hands so it’s easier to get these exclusive rights. To find out more, visit our website today.
Trademark USP is not a law firm and none of the information on this website constitutes or is intended to convey legal advice. General information about the law is not the same as advice about the application of the law in a particular factual or legal situation. Individual facts and circumstances as well as legal principles including but not limited to the ones referenced on this website can affect the outcome of any given situation.
If you want or have an interest in obtaining legal advice with respect to a specific situation or set of circumstances, you should consult with the lawyer of your choice.