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Derivative work
Derivative work
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A work can be the source to many different types of derivative works that differ in type from the original. In this illustration, a comic book is the source to merchandise, a video game, a magazine and a film.
Marcel Duchamp's 1919 piece L.H.O.O.Q., a derivative work based on the Mona Lisa

In copyright law, a derivative work is an expressive creation that includes major copyrightable elements of a first, previously created original work (the underlying work). The derivative work becomes a second, separate work independent from the first. The transformation, modification or adaptation of the work must be substantial and bear its author's personality sufficiently to be original and thus protected by copyright. Translations, cinematic adaptations and musical arrangements are common types of derivative works.

Most countries' legal systems seek to protect both original and derivative works.[1] They grant authors the right to impede or otherwise control their integrity and the author's commercial interests. Derivative works and their authors benefit in turn from the full protection of copyright without prejudicing the rights of the original work's author.

Definition

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Berne

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The Berne Convention for the Protection of Literary and Artistic Works, an international copyright treaty, stipulates that derivative works shall be protected although it does not use the term, namely that "Translations, adaptations, arrangements of music and other alterations of a literary or artistic work shall be protected as original works without prejudice to the copyright in the original work".[2][better source needed]

United States

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In U.S. law, this derivative work of a chest radiograph (which is in the Public Domain) is copyrightable because of the additional graphics. Yet the chest radiograph component of the work is still in the Public Domain.

An extensive definition of the term is given by the United States Copyright Act in 17 U.S.C. § 101:

A "derivative work" is a work based upon one or more preexisting works, such as a translation, musical arrangement, dramatization, fictionalization, motion picture version, sound recording, art reproduction, abridgment, condensation, or any other form in which a work may be recast, transformed, or adapted. A work consisting of editorial revisions, annotations, elaborations, or other modifications which, as a whole, represent an original work of authorship, is a "derivative work".

17 U.S.C. § 103(b) provides:

The copyright in a compilation or derivative work extends only to the material contributed by the author of such work, as distinguished from the preexisting material employed in the work, and does not imply any exclusive right in the preexisting material. The copyright in such work is independent of, and does not affect or enlarge the scope, duration, ownership, or subsistence of, any copyright protection in the preexisting material.

17 U.S.C. § 106 provides:

Subject to sections 107 through 122, the owner of copyright under this title has the exclusive rights to do and to authorize any of the following:

(1) to reproduce the copyrighted work in copies...;

(2) to prepare derivative works based upon the copyrighted work;

(3) to distribute copies...of the copyrighted work to the public by sale or other transfer of ownership, or by rental, lease, or lending....

US Copyright Office Circular 14: Derivative Works notes that:

A typical example of a derivative work received for registration in the Copyright Office is one that is primarily a new work but incorporates some previously published material. This previously published material makes the work a derivative work under the copyright law. To be copyrightable, a derivative work must be different enough from the original to be regarded as a "new work" or must contain a substantial amount of new material. Making minor changes or additions of little substance to a preexisting work will not qualify the work as a new version for copyright purposes. The new material must be original and copyrightable in itself. Titles, short phrases, and format, for example, are not copyrightable.

The statutory definition is incomplete and the concept of derivative work must be understood with reference to explanatory case law. Three major copyright law issues arise concerning derivative works: (1) what acts are sufficient to cause a copyright-protected derivative work to come into existence; (2) what acts constitute copyright infringement of a copyright in a copyright-protected work; and (3) in what circumstances is a person otherwise liable for infringement of copyright in a copyright-protected derivative work excused from liability by an affirmative defense, such as first sale or fair use?

European Union

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French law prefers the term "œuvre composite" ("composite work") although the term '"œuvre dérivée" is sometimes used. It is defined in article L 113-2, paragraph 2 of the Intellectual Property Code as "new works into which pre-existing work [is incorporated], without the collaboration of its author".[3] The Court of Cassation has interpreted this statute as requiring two distinct inputs at different points in time.[4]

The Court of Justice of the European Union in 2010 decided on a matter of derivative works in Systran v. European Commission (Case T‑19/07[5]). However, it was overturned in 2013[6] based on the conclusion that the case did not fall within the General Court's jurisdiction, after concluding that the dispute had been of a contractual nature, instead of a non-contractual one.

Canada

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Though Canadian copyright law does not explicitly define "derivative work", the Copyright Act of Canada does provide the following generally agreed-upon[7][8] examples of what constitutes a derivative work in section 3:

"copyright"...includes the sole right

(a) to produce, reproduce, perform or publish any translation of the work,

(b) in the case of a dramatic work, to convert it into a novel or other non-dramatic work,

(c) in the case of a novel or other non-dramatic work, or of an artistic work, to convert it into a dramatic work, by way of performance in public or otherwise,

(d) in the case of a literary, dramatic or musical work, to make any sound recording, cinematograph film or other contrivance by means of which the work may be mechanically reproduced or performed,

(e) in the case of any literary, dramatic, musical or artistic work, to reproduce, adapt and publicly present the work as a cinematographic work

In Théberge v. Galerie d'Art du Petit Champlain Inc., [2002] 2 S.C.R. 336, 2002 SCC 34, the Supreme Court of Canada clarified the statutory recognition of derivative works extended only to circumstances where there was production and multiplication, i.e. reproduction. Where there is no derivation, reproduction, or production of a new and original work which incorporates the artist's work, there is no violation of the Copyright Act.

Significance, history and social context

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Derivative works represent the majority of the human cultural, scientific and technological heritage, as exemplified by the proverb about "standing on the shoulders of giants."[9] The number of derivative works has been adversely impacted by the introduction of the copyright law, which made them illegal in numerous circumstances, and positively by the spread of the copyleft ethos in the late 20th and early 21st century.[10][11][12]: 62 

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Originality requirement

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For copyright protection to attach to a later, allegedly derivative work, it must display some originality of its own. It cannot be a rote, uncreative variation on the earlier, underlying work. The latter work must contain sufficient new expression, over and above that embodied in the earlier work for the latter work to satisfy copyright law's requirement of originality.[citation needed]

Although serious emphasis on originality, at least so designated, began with the Supreme Court's 1991 decision in Feist v. Rural, some pre-Feist lower court decisions addressed this requirement in relation to derivative works. In Durham Industries, Inc. v. Tomy Corp.[13] and earlier in L. Batlin & Son, Inc. v. Snyder.[14] the Second Circuit held that a derivative work must be original relative to the underlying work on which it is based. Otherwise, it cannot enjoy copyright protection and copying it will not infringe any copyright of the derivative work itself (although copying it may infringe the copyright, if any, of the underlying work on which the derivative work was based).

The Batlin case rested on the copyrightability of an "Uncle Sam" toy bank, first copyrighted in 1886. These toys have Uncle Sam's extended arm and outstretched hand adapted to receive a coin; when the user presses a lever, Uncle Sam appears to put the coin into a carpet bag. One maker of these banks, Jeffrey Snyder, had filed a copyright on such a bank in 1975, planning to import them for the American Bicentennial. Shortly thereafter, another company, L. Batlin & Sons, Inc., also began making a very similar toy bank which was based on Snyder's version (and not, incidentally, on the 19th century original). When the latter attempted to import the toy banks, the US Customs service notified them that they appeared to be infringing on Snyder's copyright, and would not allow the toy banks to be imported. Batlin then got an injunction against Snyder to deny the recording of his copyright and allowing them to import their banks. On appeal to the Second Circuit Court, Snyder took great pains to demonstrate how his banks varied in size and shape from the 19th century original, arguing that his banks, though similar to the older work, differed in a number of significant ways and warranted protection under a new copyright. However, his appeal was denied and the injunction against Snyder's copyright upheld (six members of the court voted to deny, the other three filing a dissenting opinion). Much of this decision focused on the fact that nearly all of the alterations in Snyder's version were made solely to allow the object to be more easily manufactured in plastic rather than metal, and therefore were functional, not artistic or creative.[15][16] "To extend copyrightability to minuscule variations would simply put a weapon for harassment in the hands of mischievous copiers intent on appropriating and monopolizing public domain work." The issue was not whether or not Batlin's bank was a copy of Snyder's— it undoubtedly was— but whether or not Snyder could claim copyright protection, which the court decided he could not.

In the subsequent Durham case, the court applied the same principle in a suit between two different Disney toy licensees in which one licensee claimed that the other had pirated his Mickey Mouse, Donald Duck and Pluto. Durham conceded that in making these toys it used Tomy's Disney figures as models. That was not determinative. The court said that "the only aspects of Tomy's Disney figures entitled to copyright protection are the non-trivial, original features, if any, contributed by the author or creator of these derivative works." But Tomy's toys reflected "no independent creation, no distinguishable variation from preexisting works, nothing recognizably the author's own contribution that sets Tomy's figures apart from the prototypical Mickey, Donald, and Pluto, authored by Disney and subsequently represented by Disney or its licensees in a seemingly limitless variety of forms and media." Because the court considered that "it is clear that the originality requirement imposed by the Constitution and the Copyright Act has particular significance in the case of derivative works based on copyrighted preexisting works," it denied relief and dismissed the claim. Thus the law is clear that a derivative work is protectable only to the extent that it embodies original expression. Its non-original aspects are not copyright-protectable (what is loosely called "uncopyrightable").[citation needed]

In both of these cases, the defendants were held not to be liable for copyright infringement, even though they presumably copied a considerable amount from the plaintiff's work. They were not liable because the plaintiff did not enjoy copyright protection. The plaintiffs' works lacked enough originality to acquire copyright protection of their own. They were too close to the original works on which they were based.

Lawful works requirement

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Copyright ownership in a derivative work attaches only if the derivative work is lawful, because of a license or other "authorization." The U.S. Copyright Office says in its circular on derivative works:

In any case where a copyrighted work is used without the permission of the copyright owner, copyright protection will not extend to any part of the work in which such material has been used unlawfully.[17][18]

The courts have so far addressed little attention to the issue of lawful (i.e., not unlawful) use without authorization, as in fair-use cases such as the Pretty Woman case. Recently, however, in Keeling v. Hars,[19] the Second Circuit held that, if the creator of an unauthorized work stays within the bounds of fair use and adds sufficient original content, the original contributions in such an unauthorized derivative work are protectable under the Copyright Act. In that case, the plaintiff created a parody stage adaptation of a motion picture, without authorization.

Liability of derivative-work

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This issue sometimes arises in the context of the defendant purchasing a copy of a picture or some other work from the copyright owner or a licensee and then reselling it in different context. For example, pictures from greeting cards might be affixed to tiles or one kind of textile product might be turned into another that can be sold at a higher price. In Lee v. A.R.T. Co., (the Annie Lee case), the defendant affixed the copyright owner's copyright-protected note cards and small lithographs to tiles and then resold them.[20] The original art was not changed or reproduced, only bonded to ceramic and sold. The court held that this act was not original and creative enough to rise to the level of creating a derivative work, but effectively similar to any other form of display or art frame.[21]

Distribution rights differ from reproduction rights. While the first-sale doctrine entitles the copyright holder to begin the distribution chain of a copyrighted work - by selling note cards, for instance, or giving them away - it does not permit the copyright holder to control what is done with the item after it is distributed. Unless there is a separate contract between the parties, the person who owns the object has the right to give it away or resell it themself. In the case of Lee v. A.R.T., since bonding the cards to ceramic did not create a derivative work, A.R.T. Co. was legally within their rights to resell the cards in such a fashion.[citation needed]

When the defendant's modification of the plaintiff's work is de minimis, too insubstantial to "count", there is no infringing preparation of a derivative work. So long as there is no derivative work, there is no infringement—since no conduct that the Copyright Act forbids has occurred.

Fixation requirement

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In a House Report,[22] Congress said:

The exclusive right to prepare derivative works, specified separately in clause (2) of section 106, overlaps the exclusive right of reproduction to some extent. It is broader than that right, however, in the sense that reproduction requires fixation in copies or phonorecords, whereas the preparation of a derivative work, such as a ballet, pantomime, or improvised performance, may be an infringement even though nothing is ever fixed in tangible form.

The 9th Circuit, however, has resisted this expansive view of liability for derivative works by imposing its own quasi-fixation requirement. In Micro Star v. FormGen Inc.[23] Judge Kozinski wrote:

To narrow the statute to a manageable level, we have developed certain criteria a work must satisfy in order to qualify as a derivative work. One of these is that a derivative work must exist in a "concrete or permanent form,"....The requirement that a derivative work must assume a concrete or permanent form was recognized without much discussion in Galoob.

The fair use defense in derivative work cases

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Even if a work is found to be an unauthorized derivative work, an alleged infringer can escape liability via the defense of fair use. For example, in Campbell v. Acuff-Rose Music, Inc., the Supreme Court found that although a parody of the song "Oh, Pretty Woman" by 2 Live Crew was an unauthorized derivative work, fair use was still available as a complete defense. This case marked the Supreme Court's pointing to transformativeness as a major clue to application of the fair use defense to derivative works.[citation needed]

The defense of fair use has become very important in computer- and Internet-related works. Two 1992 Ninth Circuit decisions are illustrative.

In Lewis Galoob Toys, Inc. v. Nintendo of America, Inc.,[24] the appellate court held that it was a fair use for owners of copies of video games, such as Super Mario Bros., to use Galoob's product the Game Genie to customize the difficulty or other characteristics of the game by granting a character more strength, speed, or endurance. Nintendo strongly opposed Galoob's product, allegedly because it interfered with the maintenance of the "Nintendo Culture," which Nintendo claimed was important to its marketing program.[25] The court held, among other things, that the fair use defense shielded Galoob's conduct. The court said that "a party who distributes a copyrighted work cannot dictate how that work is to be enjoyed. Consumers may use ... a Game Genie to enhance a Nintendo Game cartridge's audiovisual display in such a way as to make the experience more enjoyable."

In Sega Enterprises, Ltd. v. Accolade, Inc.,[26] the court excused Accolade from copyright infringement liability on fair use grounds. Nintendo and Sega produced video game consoles. Each stored the games in plastic cartridges that provided game data to the consoles. By way of analogy, the Sega hardware console's "platform" differed from Nintendo's, as a Macintosh platform differs from that of a PC. Hence, a video game cartridge that works on one system does not work on the other. Sega and Nintendo sought to "license" access to their hardware platforms, and each company developed software "locks" to keep out cartridges that did not have the proper "key." Accolade sought a license from Sega for its key, but negotiations broke down over price. Accolade then decided to reverse engineer Sega's lock and key system. To do so, it had to download (copy) all of the computer code from Sega's product and disassemble it (translate it from machine code into human-readable assembly). Accolade succeeded and began to market new video games that it independently wrote, which were capable of being operated in Sega consoles. This led to copyright infringement litigation, in which Sega alleged that the downloading was improper copying (reproduction) of Sega's code. The court held that Sega was trying to use the copyright in its computer code to maintain a monopoly over the sale of video games, to which it was not legally entitled. Accolade downloaded the computer code only to ascertain how the lock worked, so that it could make a key that would permit its games to work in Sega consoles. The court held that such a use was fair use: "We conclude that where disassembly is the only way to gain access to the ideas and functional elements embodied in a copyrighted computer program and where there is a legitimate reason for seeking such access, disassembly is a fair use of the copyrighted work, as a matter of law."[27] However, since the passage of the anti-circumvention statutes contained in the DMCA, further court cases involving the fair-use defense of such activities have yet[citation needed] to be actually litigated.

Transformativeness

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A crucial factor in current legal analysis of derivative works is transformativeness, largely as a result of the Supreme Court's 1994 decision in Campbell v. Acuff-Rose Music, Inc. The Court's opinion emphasized the importance of transformativeness in its fair use analysis of the parody of "Oh, Pretty Woman" involved in the Campbell case. In parody, as the Court explained, the transformativeness is the new insight that readers, listeners, or viewers gain from the parodic treatment of the original work. As the Court pointed out, the words of the parody "derisively demonstrat[e] how bland and banal the Orbison [Pretty Woman] song" is.

The modern emphasis of transformativeness in fair use analysis stems from a 1990 article by Judge Pierre N. Leval in the Harvard Law Review, "Toward a Fair Use Standard",[28] which the Court quoted and cited extensively in its Campbell opinion. In his article, Leval explained the social importance of transformative use of another's work and what justifies such a taking:

I believe the answer to the question of justification turns primarily on whether, and to what extent, the challenged use is transformative. The use must be productive and must employ the quoted matter in a different manner or for a different purpose from the original. ...[If] the secondary use adds value to the original--if the quoted matter is used as raw material, transformed in the creation of new information, new aesthetics, new insights and understandings--this is the very type of activity that the fair use doctrine intends to protect for the enrichment of society.

Transformative uses may include criticizing the quoted work, exposing the character of the original author, proving a fact, or summarizing an idea argued in the original in order to defend or rebut it. They also may include parody, symbolism, aesthetic declarations, and innumerable other uses.

The concept, as Leval and the Campbell Court described it, developed in relation to fair use of traditional works: literary works, musical works, and pictorial works. But recently courts have extended this rationale to Internet and computer-related works. In such cases, as illustrated by Kelly v. Arriba Soft Corporation[29] and Perfect 10, Inc. v. Amazon.com, Inc.,[30] the courts find a use (such as that of thumbnails in an image search engine, for indexing purposes) transformative because it provides an added benefit to the public, which was not previously available and might remain unavailable without the derivative or secondary use. The Ninth Circuit Court explained this in the Perfect 10 case:

Google's use of thumbnails is highly transformative. In Kelly we concluded that Arriba's use of thumbnails was transformative because "Arriba's use of the images served a different function than Kelly's use — improving access to information on the Internet versus artistic expression." Although an image may have been created originally to serve an entertainment, aesthetic, or informative function, a search engine transforms the image into a pointer directing a user to a source of information. Just as a "parody has an obvious claim to transformative value" because "it can provide social benefit, by shedding light on an earlier work, and, in the process, creating a new one," a search engine provides social benefit by incorporating an original work into a new work, namely, an electronic reference tool. Indeed, a search engine may be more transformative than a parody because a search engine provides an entirely new use for the original work, while a parody typically has the same entertainment purpose as the original work.

...In conducting our case-specific analysis of fair use in light of the purposes of copyright, we must weigh Google's superseding and commercial uses of thumbnail images against Google's significant transformative use, as well as the extent to which Google's search engine promotes the purposes of copyright and serves the interests of the public. Although the district court acknowledged the "truism that search engines such as Google Image Search provide great value to the public," the district court did not expressly consider whether this value outweighed the significance of Google's superseding use or the commercial nature of Google's use. The Supreme Court, however, has directed us to be mindful of the extent to which a use promotes the purposes of copyright and serves the interests of the public.

...We conclude that the significantly transformative nature of Google's search engine, particularly in light of its public benefit, outweighs Google's superseding and commercial uses of the thumbnails in this case. ... We are also mindful of the Supreme Court's direction that "the more transformative the new work, the less will be the significance of other factors, like commercialism, that may weigh against a finding of fair use."

The Ninth Circuit's treatment of transformativeness and fair use in the Arriba Soft and Perfect 10 cases illustrates different data points on the copyright infringement spectrum, at least with respect to transformativeness and fair use. Arriba Soft was a relatively polar case. The harm to Kelly, the copyright owner, was negligible; it was hardly more than hurt feelings, because as the Ninth Circuit said in its opinion – "Arriba's creation and use of the thumbnails [the derivative work] does not harm the market for or value of Kelly' s images." On the other hand, the court found that Arriba's use benefited the public: "Arriba's use of the images serves a different function than Kelly's use — improving access to information on the internet versus artistic expression." The balance thus tilted strongly in Arriba's favor. The foregoing analysis in this case thus made the Ninth Circuit to be the first court to make the equation highly beneficial to public = transformative, and as the Supreme Court explained in Campbell, the more transformative a derivative use the more likely the use is to be a fair use.

The Campbell Court recognized that the balance may not always be one-sided, as it was in Campbell itself and in Arriba Soft. In the Perfect 10 case the interests were more evenly balanced, for the first time in a derivative work case involving new information technology. Both Google and Perfect 10 had legitimate interests at stake and support for their respective positions. Thus, there was a finding that "Google's wide-ranging use of thumbnails is highly transformative: their creation and display is designed to, and does, display visual search results quickly and efficiently to users of Google Image Search." But Google's use had some commercial aspects and was claimed to impair P10's commercial interests. Yet, on balance the Ninth Circuit found that the transformativeness outweighed the other fair use factors because "Google has provided a significant benefit to the public" in facilitating image searches by means of thumbnail images. This opinion provided a second instance of the "beneficial=transformative" equation described in the preceding paragraph (from the Arriba Soft case).

Screenshot of Half.com pop-up ad over Amazon's Web page c. 2008

The use of pop-up advertising, in which third-party advertisements pop up on a competitor's Web page and change its appearance to allegedly create a derivative work,[31] may present transformativeness issues. The proponents of such pop-ups (the defendants in infringement litigation) argue that they provide the public with additional information about making buying decisions (particularly in the form of price comparisons), but the opponents (the plaintiffs in these cases) argue that the defendants' conduct adversely affects the Web page proprietor's interest in the "integrity" of its Web page and its investment interest in creating and maintaining the page.[32]

An example of promotional advertising for a pop-up company, illustrating various pop-up techniques for changing the appearance of another firm's Web page is shown in this Flash Archived 19 June 2009 at the Wayback Machine.[33]

Little attention has been paid to the balancing of the interests at stake in derivative work copyright disputes where conflicting interests are present. In the Perfect 10 and Castle Rock cases, however, the courts appeared to have recognized that some conflict existed, but they finessed the balancing task by finding one side or the other's interest negligible, so that no serious work had to be done in gauging the balance. although several courts have found no copyright infringement for one reason or another. In an analogous area of copyright law, a solution reached was to permit the use challenged as infringement, but to require payment of a reasonable royalty.[34]

Examples of derivative works under U.S. law

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Graphic from the United States Copyright Office, 1959, giving examples of derivative works

The most famous derivative work in the world has been said to be L.H.O.O.Q.,[35] also known as the Mona Lisa With a Moustache. Generations of U.S. copyright law professors — since at least the 1950s — have used it as a paradigmatic example. Marcel Duchamp created the work by adding, among other things, a moustache, goatee, and the caption L.H.O.O.Q. (letters which phonetically resemble the phrase in French "She is hot in the ass") to Leonardo's iconic work. These few seemingly insubstantial additions were highly transformative because they incensed contemporary French bourgeoisie[36] by mocking their cult of "Jocondisme,"[37] at that time said to be "practically a secular religion of the French bourgeoisie and an important part of their self image." Duchamp's defacement of their icon was considered "a major stroke of épater le bourgeois." Thus it has been said that the "transformation of a cult icon into an object of ridicule by adding a small quantum of additional material can readily be deemed preparation of a derivative work."[38] A parodic derivative work based on Duchamp's parodic derivative work is shown at this location Archived 2 August 2020 at the Wayback Machine.

The mockery of "Oh, Pretty Woman," discussed in Campbell v. Acuff-Rose Music, Inc., is a similar example of transforming a work by showing it in a harsh new light or criticizing its underlying assumptions. Because of the parody's transformativeness, the Supreme Court found the derivative work a fair use.[citation needed]

Trivia books based on TV shows, such as Seinfeld, are considered derivative works, for purposes of infringement liability, at least if they incorporate a substantial amount of copyright-protected content from the TV episodes.[39] In Castle Rock the court found that any transformative purpose possessed in the derivative work was "slight to non-existent." Accordingly, the court held that defendants had prepared an infringing derivative work.

A 2007 lawsuit, CBS Operations v. Reel Funds International, ruled that television series that have some episodes lapse into the public domain can be classified as derivative works and subject to indirect copyright accordingly. The lawsuit centered around 16 episodes of The Andy Griffith Show from the show's third season that had lapsed into the public domain in 1989; CBS successfully argued that because all of the episodes from the show's first two seasons were still under valid copyright, that CBS still held copyright on the characters used in those episodes and could block a public domain distributor from selling DVDs with those episodes.[40][41]

The musical West Side Story, is a derivative work based on Shakespeare's Romeo and Juliet, because it uses numerous expressive elements from the earlier work.[42] However, Shakespeare's drama Romeo and Juliet is also a derivative work that draws heavily from Pyramus and Thisbe and other sources. Nevertheless, no legal rule prevents a derivative work from being based on a work that is itself a derivative work based on a still earlier work — at least, so long as the last work borrows expressive elements from the second work that are original with the second work rather than taken from the earliest work. The key is whether the copied elements are original and expressive (not merely conventional or mise en scène); if that is so, the second or derivative work is independently subject to copyright protection, and if that is not, the second work (if unauthorized) may infringe the first, but it is not independently copyrightable.[43]

Pop-up advertising provides derivative works that can be transformative,[44] in that they provide the public with new functionality not previously offered — they may provide comparative price information, for example.[45] Yet, pop-ups may also impair interests of the proprietors of Web pages subjected to them. For example, the Half.com pop-up ad shown above left informs the public as to price competition between Half.com and Amazon.com. But the derivative-work version of Amazon's web page partially covers up Amazon's advertising (at least temporarily) and adversely affects Amazon's investment interest in the preparation and maintenance of its web page. This may present a more difficult case of balancing interests than that which the court faced in Arriba Soft or Perfect 10.

The gif animation parody of Duchamp's work Archived 2 August 2020 at the Wayback Machine referred to above in this section, and pop-up advertising are examples of derivative works that became possible only with the advent of recent technology. The last sentence of section 101's definition of derivative work (at the beginning of section 1.1 of this Article) defines annotations as derivative works. Annotations of other works have long existed, but new technology permits the creation of new forms of annotation. An illustration of such a new-technology annotation is provided in this example of an annotation of Chaucer's Prologue Archived 1 February 2009 at the Wayback Machine to the Canterbury Tales, in which a small pop-up window provides the definition of a difficult word when the cursor is moused over the word.[46]

The Internet Archive had created an archive of scans of books which it had physical copies of, which it initially lent out digitally in a controlled manner. However, during the COVID-19 pandemic, the Internet Archive expanded the availability of the archives with an initiative it called the National Emergency Library, during which they removed the waitlists on the books that limited the number of people who could use them at the same time. Four major publishers filed suit against the Archive, and the court ruled in the publishers' favor in March 2023, declaring that the unrestricted access to the National Emergency Library infringed their copyrights. According to the court, the book scans were derivative works and the expansive National Emergency Library concept was unsupported by fair use, so it required permission from the book publishers that the Internet Archive did not receive.[47]

See also

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References

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Bibliography

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Revisions and contributorsEdit on WikipediaRead on Wikipedia
from Grokipedia
A derivative work is a copyrighted creation based upon one or more preexisting works, incorporating substantial elements of the original material while adding new authorship, such as through recasting, transformation, or adaptation. Under copyright , examples include translations, musical arrangements, dramatizations, fictionalizations, motion picture versions, sound recordings, art reproductions, abridgments, and condensations. The term originates from statutory definitions aimed at protecting the exclusive right of copyright owners to control adaptations of their works, thereby preventing unauthorized exploitation while enabling licensed expansions of creative content. The protection afforded to a derivative work covers only the novel contributions made by its creator, leaving the underlying preexisting elements under the original holder's control. Preparation of a derivative work typically requires permission or a from the owner of the preexisting work's , as unauthorized creation or distribution can constitute infringement. This framework incentivizes innovation by granting owners monopoly over transformative uses, though exceptions like may permit certain derivatives, such as parodies or critiques, without consent if they meet statutory criteria for purpose, nature, amount, and market effect. Derivative works play a central role in by facilitating cultural and commercial evolution—evident in adaptations of novels, sequels to stories, and remixed media—while posing challenges in distinguishing infringing copies from protected transformations. Courts evaluate whether a work recasts or adapts the original sufficiently to qualify as , often requiring evidence of in protected expression. Internationally, similar concepts appear in treaties like the , though enforcement varies, underscoring the balance between preserving originality and promoting creativity essential to fields like , , and .

International Standards under

The for the Protection of Literary and Artistic Works, administered by the (WIPO) and first adopted on September 9, 1886, with subsequent revisions including the Paris Act of 1971, establishes minimum standards for the international protection of s among its contracting parties. As of October 2023, it has 182 contracting parties, covering over 95% of global trade in creative works. Article 2(3) specifically addresses derivative works, stating: "Translations, adaptations, arrangements of music and other alterations of a literary or artistic work shall be protected as original works without prejudice to the in the original work." This mandates that member states treat such derivatives—encompassing modifications that recast the original expression into a new form—as independently copyrightable, provided they meet the Convention's in the added elements. The "without prejudice" limitation ensures that protection for the does not erode or transfer rights from the preexisting work, requiring explicit authorization from the original copyright holder for any use of protected material in the derivative. Consequently, while the creator of the gains exclusive rights over novel contributions (such as creative choices in ), exploitation of the remains subordinate to the original author's moral and economic rights, including under Articles 8 (right of ) and 9 (right of public performance). Berne's framework leaves the precise scope of "adaptations" or "other alterations" to national legislation, allowing variations in application (e.g., whether dramatizations or abridgments qualify), but prohibits member states from denying protection to categories explicitly listed, such as translations and musical arrangements. Protection applies automatically upon creation, without formalities like registration, and aligns with the minimum term of the author's life plus 50 years for originals and derivatives alike (Article 7). Article 2(5) extends this to compilations or collections involving derivatives, safeguarding original selection or arrangement therein. These standards promote cross-border reciprocity while preserving incentives for both original and transformative creation, though enforcement relies on domestic implementation, which may exceed Berne minima under Article 20. The Copyright Act of 1976, codified in Title 17 of the U.S. Code, defines a derivative work in 17 U.S.C. § 101 as "a work based upon one or more preexisting works, such as a , musical , , fictionalization, motion picture version, sound recording, art , abridgment, condensation, or any other form in which a work may be recast, transformed, or adapted," further including works consisting of editorial revisions, annotations, elaborations, or other modifications that, as a whole, represent an original work of authorship. This definition emphasizes transformation or adaptation of preexisting material rather than mere , requiring the new work to incorporate and modify the original in a manner that adds expressive content. Under 17 U.S.C. § 106(2), the owner of a holds the to prepare derivative works based upon the copyrighted work and to authorize others to do so, making unauthorized creation, distribution, or public performance of such works an infringement unless exceptions like under § 107 apply. This right protects against transformative uses that could compete with or dilute the original market, as established in cases interpreting the Act, but does not extend to ideas, procedures, or uncopyrightable elements within the preexisting work. Section 103(a) specifies that derivative works qualify as copyrightable subject matter under § 102 only if they employ preexisting material lawfully, meaning the use must stem from permission, status, or defenses such as , and protection does not cover unlawfully incorporated elements. Subsection 103(b) limits the copyright in a derivative work to the original material contributed by its author—such as new expressions, arrangements, or selections—distinct from the preexisting work, preserving the original holder's rights without prejudice. For registration with the U.S. Copyright Office, applicants must identify preexisting material and demonstrate the new authorship's , which requires minimal but not novelty or independent economic value. These provisions balance incentivizing new creativity with safeguarding original authors' control, reflecting congressional intent in the 1976 Act to address evolving media like films and recordings while adhering to constitutional limits on copyright's scope. Unauthorized derivatives infringe even if the new contributions are highly original, underscoring that lawful access to the base work is a prerequisite for protection.

European Union Harmonization

The 's approach to derivative works in copyright law emphasizes partial harmonization through directives that implement international obligations under the while preserving some national flexibility, particularly for adaptation rights. Directive 2001/29/EC on the harmonization of certain aspects of copyright and related rights in the information society (InfoSoc Directive) establishes a uniform right under Article 2, granting authors the exclusive authorization to prohibit any form of , including partial or indirect reproductions that could encompass transformative uses akin to derivatives. This provision, transposed into national laws by December 2002, aims to ensure across the internal market by standardizing protection against unauthorized alterations or reproductions that alter the expression of the original work. Unlike the explicit derivative work provisions in the United States Copyright Act, EU law does not fully harmonize a standalone adaptation right; member states retain competence to define the scope of adaptations for literary and artistic works, often subsuming them within the broader right. The Berne Convention's Article 12, requiring exclusive rights to authorize s, is implemented variably, with some states treating adaptations as a subset of reproduction (e.g., translations or arrangements) without separate enumeration, leading to divergences in enforcement. For instance, the right's inclusion of "any means and in any form" has been interpreted by the Court of Justice of the (CJEU) to cover transformative reproductions, as in the Infopaq case (C-5/08, 2009), where even brief extractions required originality assessment for the derivative elements. CJEU jurisprudence has driven de facto harmonization by emphasizing the author's "own intellectual creation" as the threshold for protecting derivative works' new contributions, independent of the underlying work. In cases like v World Programming (C-406/10, 2012), the Court clarified that interfaces or functional elements in software derivatives (under Directive 2009/24/EC) are not protected if lacking , prioritizing functional over broad derivative claims. Recent opinions, such as Spielmann's in 2025, affirm that derivative works can qualify for protection based on reconstructive efforts or original modifications, provided they meet the harmonized standard, without extending monopoly to the preexisting material. Remaining variations persist in exceptions and moral rights; for example, while InfoSoc Article 5 permits limited exceptions (e.g., for parody or quotation) that may apply to derivatives, implementation differs, with some states allowing broader transformative uses under national doctrines absent in others. The 2019 Directive on Copyright in the Digital Single Market (2019/790) further adapts exceptions for text and data mining (Article 3-4), potentially facilitating certain derivative analyses, but does not resolve adaptation right disparities. Overall, EU harmonization prioritizes rightholder control over the original while enabling protection for demonstrably original derivative elements, with CJEU rulings mitigating fragmentation through uniform interpretation principles.

Variations in Other Jurisdictions

In the , the addresses derivative works primarily through the exclusive right of under section 21, which applies to literary, dramatic, and musical works. This includes conversions to nondramatic forms, translations into any language or dialect, and arrangements or transcriptions yielding works of a different nature, such as musical variations. The adaptation right requires authorization from the original holder, while the derivative work itself qualifies for protection under section 1 to the extent its new elements meet the originality threshold of skill, labor, or judgment invested. Unlike the broader U.S. derivative work category, law delimits adaptations more narrowly, excluding certain transformative uses unless they fall under permitted exceptions like for criticism or research. Canada's Copyright Act enumerates derivative works without a comprehensive definition, specifying in section 3(1) rights to produce adaptations such as translations, dramatizations, cinematic versions of literary works, and musical arrangements or transcriptions. Creation of these requires permission from the underlying work's owner, with copyright subsisting in the derivative only for original contributions demonstrating skill and judgment, as affirmed in case law like CCH Canadian Ltd. v. Law Society of (2004). A key variation from U.S. law lies in Canada's exceptions under section 29, which are exhaustive and purpose-limited (e.g., research, private study, news reporting), contrasting with the open-ended doctrine and potentially restricting unauthorized transformative derivatives more stringently. In , the Act 1968 grants owners under section 31 the to make adaptations, defined in section 10 as transformations including dramatic works from nondramatic ones, translations, abridgements, and alterations of artistic works. works receive for novel expressive elements, provided they involve independent intellectual effort, though Australian courts apply a "substantial part" test for infringement akin to the U.S. but informed by local precedents like IceTV Pty Limited v Australia Pty Limited (2009), which emphasized qualitative rather than quantitative copying. exceptions mirror Canada's categorical approach, limiting defenses for derivatives to enumerated purposes such as parody or judicial proceedings, without the flexibility of fair use. Japan's Copyright Act, revised as of 2020, defines derivative works in Article 2(1)(xi) as those produced through , musical arrangement, transformation, or other alterations of existing works, with Article 27 vesting the to create them in the original holder. Protection extends to the derivative's original portions, requiring a modicum of creativity, but Japan's strong under Articles 18-20 prohibit unauthorized distortions that harm the author's honor or reputation, imposing stricter limits on modifications than in jurisdictions. Enforcement data from the indicates over 1,000 disputes annually, with derivatives often litigated under transformation clauses. In , the Law (amended 2020) under Article 10(5)(ii) confers the adaptation right, covering derivatives like translations, musical arrangements, and audiovisual adaptations, while Article 3 protects works demonstrating originality via intellectual creation. Courts, as in the 2018 Beijing XY Interactive v. Daily case, demand substantial creative input for derivative protection, but lax enforcement and lower originality bars compared to Western standards enable more permissive derivative markets, particularly in , with over 500,000 copyright registrations processed in 2023 by the National Copyright Administration.

Historical Evolution

Early Concepts and Pre-Berne Developments

Prior to the in 1710, copyright-like protections in Europe consisted primarily of royal printing privileges and guild monopolies granted to specific printers for individual titles, focusing exclusively on verbatim reproduction and lacking any concept of or protection for adaptations, translations, or other transformative uses. These systems, originating in the with the advent of the , aimed to regulate the book trade rather than incentivize creativity, and unauthorized translations or abridgements were common without legal recourse, as privileges were tied to exact copies of granted works. The , enacted on April 10, 1710, marked the first statutory copyright framework in Britain, granting authors or proprietors the exclusive right to "print, reprint, or import" books for 14 years (renewable once), but it explicitly limited protection to direct copying and reprinting, omitting adaptations, abridgements, or translations. Early judicial interpretations began expanding this scope through ; in Burnet v. Chetwood (1721), the Court of King's Bench ruled that translating a dramatic work into another language constituted an infringement, as it replicated the original's substance and multiplied unauthorized copies, effectively treating certain translations as equivalents to reproduction under the statute. However, abridgements received more lenient treatment: Gyles v. Wilcox (1741) held that "fair abridgements" adding original commentary or value qualified as new works, not infringements, while mere colorable reductions were unlawful. This distinction persisted in Strahan v. Newbery (1774), where abridgements were deemed "meritorious" if they served public utility without evading the original's monopoly. In the United States, early federal copyright acts mirrored the Statute of Anne's reproductive focus; the Copyright Act of 1790 protected "books" via registration but did not address derivatives explicitly. The Copyright Act of 1831 introduced limited recognition of transformative rights, granting authors exclusive control over dramatizations of their novels, prohibiting unauthorized adaptations as a response to growing theatrical . By the Copyright Act of 1870, protection expanded to encompass "translations or other versions" of registered works, alongside photographs and paintings, reflecting a broadening acknowledgment of economic harm from adaptations, though still without international harmonization. Continental European developments paralleled but diverged from Anglo-American approaches; France's 1793 decree emphasized authors' perpetual property rights post-Revolution, with early cases like the 1796 Dictionary of the Académie française affirming publishers' (as assignees) control over modifications, treating them as protected adaptations. Spain's 1847 Literary Copyright Act explicitly prohibited unauthorized adaptations, influencing bilateral treaties such as the 1853 Franco-Spanish agreement. In Britain, musical adaptations gained traction via D'Almaine v. Boosey (1835), where courts considered market substitution as infringement criteria, shifting emphasis from literal copying to competitive impact. These piecemeal national expansions highlighted inconsistencies—translations often protected in dramatic contexts but not uniformly for literature—fueling pre-Berne calls for standardization amid rising cross-border trade in adapted works.

Berne Convention and 20th-Century Codification

The for the Protection of Literary and Artistic Works, signed on September 9, 1886, in Berne, , established the foundational international standard for protecting works by including translations, adaptations, musical arrangements, and other alterations of preexisting literary or artistic works as eligible for as original creations. Article 2(3) explicitly states that such derivatives "shall be protected as original works without prejudice to the in the [preexisting] work," ensuring that the derivative enjoys independent protection while preserving the original author's rights. This provision addressed the growing cross-border trade in adapted content, such as novel-to-stage dramatizations and multilingual translations, by requiring signatory nations to extend automatic protection without formalities like registration. Subsequent revisions in the codified and expanded these protections to harmonize national laws amid evolving media technologies. The 1908 Berlin revision strengthened enforcement mechanisms and clarified that member states must protect derivatives on par with originals, influencing early 20th-century domestic codifications in , such as Germany's 1910 copyright law updates that explicitly safeguarded adaptations. The 1928 and 1948 revisions further integrated derivative rights into the moral rights framework under Article 6bis, mandating recognition of the original author's paternity and even in authorized alterations, which prompted widespread legislative alignments in over 50 adhering countries by mid-century. These updates emphasized the exclusive authorial right to authorize derivatives, as reinforced in Article 2's scope, countering unilateral national exceptions that had previously fragmented protection. The 1967 and 1971 revisions represented the culmination of 20th-century codification efforts, incorporating developing nations' concerns while solidifying derivative works' status through Appendix provisions on compulsory licenses for translations in limited cases, applicable only after a three-year delay for originals published in less-accessible languages. This framework compelled Berne Union members—numbering 80 by 1971—to enact or amend statutes explicitly defining and protecting derivatives, such as the United Kingdom's 1956 Copyright Act, which mirrored Berne by granting protection to "adaptations" without undermining originals. By prioritizing empirical alignment with treaty text over divergent domestic traditions, these codifications fostered causal consistency in global enforcement, reducing disputes over unauthorized adaptations in emerging fields like cinematographic works.

Late 20th to Early 21st-Century Case Law Shifts

In 1994, the U.S. in Campbell v. Acuff-Rose Music, Inc. established the standard as a core element of analysis under 17 U.S.C. § 107, reshaping the evaluation of works potentially infringing the derivative right. The Court ruled 7-2 that 2 Live Crew's commercially released parody "," which copied the opening riff and chorus of Roy Orbison's 1964 hit while adding rap verses critiquing promiscuity, qualified as because it "reasonably could be perceived as commenting on the original or criticizing it, to some degree." By rejecting presumptive disfavor for commercial uses and emphasizing added "new expression, meaning, or message," the decision shifted doctrine away from pre-Campbell rigidity—where courts often deemed commercial copies presumptively unfair—toward case-specific weighing of transformativeness against market harm to authorized derivatives under § 106(2). This clarified that parodies and similar adaptations need not supplant the original's market if they alter its purpose, preserving the derivative right while enabling critical reuse. Early 21st-century appellate decisions built on Campbell by applying transformativeness expansively to visual and multimedia contexts, further delineating boundaries for derivative claims. In Blanch v. Koons (2006), the Second Circuit upheld artist ' fair use of cropped elements from Andrea Blanch's 1998 photograph "" in his painting Niagara, which incorporated the image amid bacon strips and other motifs to evoke "the social critique" of human-object interplay, distinct from the original's fashion magazine purpose. The court stressed that Koons added "significant expressive content" without reproducing the photo's "essence," favoring fair use despite minimal alteration to the borrowed legs and feet. Likewise, Bill Graham Archives v. Dorling Kindersley Ltd. (2006) deemed thumbnail reproductions of posters in a 2,600-page coffee-table transformative, as their small, altered format served biographical rather than , minimally impacting the originals' promotional value. These rulings evidenced a doctrinal trend prioritizing purpose differentiation over verbatim fidelity, enabling courts to deem certain derivative-like incorporations noninfringing if they supplied historical or artistic context. Circuit splits emerged, underscoring limits to transformativeness in protecting the derivative right against commercial exploitation. The Sixth Circuit in Bridgeport Music, Inc. v. Dimension Films (2004) rejected for even brief, digitally sampled sounds from sound recordings, holding that "any sampling... requires a " regardless of quantity or transformative claim, as intended broad control over audio derivatives post-1976 Act amendments. This bright-line approach contrasted with Second Circuit flexibility, prioritizing owner authorization for musical derivatives to prevent erosion of licensing markets. Such variances reflected cautious evolution, where Campbell's framework promoted creative liberty in commentary but restrained overbroad from nullifying § 106(2) incentives for original investment.

Originality in New Contributions

The copyright protection afforded to a derivative work extends solely to the original contributions made by its , which must satisfy the fundamental requirement of under law. entails independent creation by the derivative —meaning the new material is not copied from another source—and a minimal degree of , surpassing mere mechanical reproduction or sweat-of-the-brow effort. This threshold, while low, excludes works dominated by factual compilation without creative selection, coordination, or arrangement, as established in the U.S. Supreme Court's ruling in Feist Publications, Inc. v. Rural Telephone Service Co., 499 U.S. 340 (1991), where the Court emphasized that demands "some minimal degree of " beyond industriousness alone. Although Feist addressed compilations, its standard governs the protectable elements in derivative works, ensuring that additions like editorial revisions, annotations, or elaborations qualify only if they reflect authorial choices rather than rote incorporation of the preexisting material. In practice, the new contributions in a derivative work—such as transformations, adaptations, or modifications—must demonstrably alter the original in a manner that introduces expressive novelty. For instance, a musical qualifies if it involves creative or structural changes, not just faithful transcription; similarly, a gains protection for newly authored elements, directorial interpretations, or visual stylings that evince independent creativity. Protection does not vest in the underlying preexisting work, which remains governed by its own ; thus, the derivative author's rights are layered atop, but subordinate to, the original owner's to prepare derivatives under 17 U.S.C. § 106(2). Jurisdictions adhering to the align with this principle, treating adaptations and translations as protectable "original works" provided they embody sufficient authorship, without impairing the source work's rights—a stipulation codified in Article 2(3) of the Convention, which has influenced harmonized standards since its 1886 inception and subsequent revisions. Assessing originality in derivatives often hinges on the quantum of new material relative to the whole, though no fixed governs; courts evaluate whether the additions as integrated the requisite spark of creativity. Mere trivial changes, such as minor edits or reproductions indistinguishable from the original, fail this test, as they lack the independent expression needed for authorship. In the U.S., the Copyright Office's reinforces this by requiring applicants to identify and disclaim preexisting elements during registration, underscoring that only the "copyrightable authorship" in novel components merits claim. This framework promotes innovation by safeguarding transformative efforts while preventing overreach into the or uncopyrightable facts embedded in the base work.

Lawful Basis of the Preexisting Work

The creation of a derivative work requires a lawful basis in the preexisting work to avoid infringement and ensure eligibility for protection in the new contributions. Where the preexisting work is protected by , the derivative author typically must obtain explicit permission, such as a or assignment of rights, from the owner to incorporate and exploit elements of it. Without such authorization, the act of adaptation constitutes unauthorized reproduction or preparation of a derivative, infringing the exclusive rights under frameworks like the Article 9, which reserves to authors the right to authorize adaptations. Exceptions, such as in the United States or quotation rights in some European jurisdictions, may provide a lawful basis in limited circumstances, but these are narrowly construed and do not confer blanket permission for commercial derivatives. In the United States, 17 U.S.C. § 103(a) explicitly conditions protection for works on lawful use of preexisting material: "protection for a work employing preexisting material in which subsists does not extend to any part of the work in which such material has been used unlawfully." This means that even original additions to an unlawfully incorporated preexisting work—for instance, editing a pirated copy—receive no shielding in the infringing portions, rendering the derivative vulnerable to claims and limiting enforceability. The U.S. Copyright Office reinforces this in its guidance, noting that registration of derivatives requires disclosure of preexisting material's status and that unlawful use undermines claims to new authorship. Courts have upheld this, as in cases where unauthorized translations or adaptations were deemed infringing despite novel elements, emphasizing that the derivative's viability hinges on cleared to the base work. For preexisting works in the , no lawful basis beyond general access is needed, as has expired or never subsisted, allowing unrestricted derivation—provided the public domain status is verified, such as under U.S. law where works published before 1929 generally qualify as of 2025. In contrast, jurisdictions like the harmonize under Directive 2001/29/EC, requiring member states to protect adaptations only where they do not conflict with the original's moral or economic rights, implicitly demanding lawful exploitation to prevent unauthorized derivations. Some countries, such as , explicitly mandate in Article 3 of the Copyright Law that derivatives from copyrighted works obtain permission to qualify for independent protection, avoiding scenarios where bootleg bases taint the new work. This lawful basis principle extends to ownership chains: if the derivative author owns the preexisting work outright, no further permission is required, but licensing agreements often specify scope, such as non-exclusive rights limiting further derivations. Failure to establish this foundation not only risks infringement liability but also complicates registration and enforcement, as evidenced by U.S. Copyright Office practices requiring evidence of rights clearance for complex derivatives like motion picture versions of novels. Across signatories, which encompass over 180 countries as of , the uniformity lies in prohibiting unauthorized derivatives while protecting licensed ones, though enforcement varies by national implementation.

Fixation and Tangible Medium

Copyright protection for derivative works, like original works, generally requires that the work be fixed in a tangible medium of expression, ensuring the expression is sufficiently stable and perceivable for more than a transitory duration. , under 17 U.S.C. § 101, a work is "fixed" when embodied in a copy or phonorecord by or under the authority of the , in a manner permitting , , or communication either directly or with aid, for a period exceeding transitory duration. This applies to the derivative work as a whole, but protection subsists only in the new authorship contributed, distinct from the preexisting material. The fixation requirement serves to distinguish protectable expression from unprotectable ideas, providing evidentiary stability for claims of infringement and enabling of the work's scope. For works, failure to fix the new contributions—such as unaltered mental recitations of a modified script—precludes in those additions, even if the underlying work is lawfully accessed. Examples include a fixed on or , where the screenplay's modifications and directorial choices gain protection upon recording, or a translated printed in form, with fixation capturing the linguistic alterations. Internationally, fixation is not uniformly mandated; while the implies protection for expressed works without formalities, common law jurisdictions like the enforce it strictly, whereas some civil law systems in the protect unfixed expressions if original, though most require tangible embodiment for practical enforcement. In EU member states without a fixation rule, derivative works like improvised performances may qualify for upon oral delivery if perceived by others, but registration or litigation often demands recorded evidence. This variance can complicate cross-border enforcement, as a -originated derivative fixed digitally may enjoy broader automatic than an EU counterpart reliant on national originality thresholds alone.

Application and Scope

Criteria for Identifying Derivative Works

A derivative work is statutorily defined under 17 U.S.C. § 101 as "a work based upon one or more preexisting works, such as a , musical , , fictionalization, motion picture version, sound recording, art reproduction, abridgment, condensation, or any other form in which a work may be recast, transformed, or adapted." This definition emphasizes a foundational relationship where the new creation derives its structure or content from the original, incorporating expressible elements subject to protection. Mere factual compilation or selection from sources does not qualify, as the work must recast or adapt copyrighted expression rather than independently recreate unprotected ideas or data. Courts identify derivative works by assessing whether the accused creation substantially depends on the preexisting work's protected elements, evaluating the degree of incorporation and modification. In cases like Micro Star v. FormGen Inc. (1998), the Ninth Circuit held that user-generated levels for a video game constituted derivatives because they extended the original's narrative and audiovisual elements, requiring analysis of how new material interacts with and builds upon the source. Key indicia include direct adaptation of plot, characters, or sequences in literary works; rearrangement of notes with new harmony in music; or visual alterations in images that retain core compositional features. Unlike reproduction rights, which protect against verbatim duplication, derivative status hinges on transformative processes that alter form without wholly supplanting the original's authorship. Additional criteria involve evaluating the scope of new authorship: while classification as derivative does not mandate in the additions for infringement purposes, protectability of the derivative itself requires "sufficient change" amounting to original expression in the modified elements. For instance, an abridgment that condenses text while preserving sequential narrative flow qualifies if it adapts rather than excerpts verbatim, but trivial edits like minor formatting changes do not elevate a copy to status. Judicial scrutiny often employs a two-part test: (1) factual dependence, confirmed by access to and copying of original expression; and (2) legal dependence, where the adaptation evinces creative recasting rather than independent invention. Unauthorized derivatives infringe the owner's exclusive right under 17 U.S.C. § 106(2), regardless of the creator's intent or commercial success. In practice, identification avoids overbroad application to incidental uses; for example, in software does not inherently render compatible code unless it copies proprietary algorithms or structures. Empirical analysis from U.S. Copyright Office registrations shows that over 10% of claims since 1978 involve disputed , underscoring the need for evidence of substantial expressive borrowing beyond functional necessity. This framework prioritizes causal linkage to the original, ensuring derivative status reflects genuine adaptation rather than coincidental similarity.

Illustrative Examples Across Media

In , translations of original texts exemplify derivative works, as they recast the preexisting content into another language while preserving core expressive elements. For instance, a French translation of an requires authorization from the original owner, as it incorporates substantial portions of the source material in adapted form. Abridgments or condensations, such as shortened editions of lengthy novels that omit sections but retain , similarly qualify, provided they add no independent sufficient to stand alone. Dramatizations, like converting a into a stage play script, transform into and action, yet derive protection only for new contributions atop the underlying plot and characters. In , reproductions or modifications of existing artworks serve as derivatives, such as altering a printed reproduction of a by adding new elements. 's 1919 piece L.H.O.O.Q., which appends a mustache and to a reproduction of Leonardo da Vinci's , recasts the original image through transformative defacement, though its status hinges on the underlying elements and any added originality. Collages incorporating excerpts from copyrighted photographs or illustrations, if fixed in a tangible medium, also fall under this category, demanding permission unless excused by defenses like . For film and audiovisual media, motion picture versions of literary works illustrate derivatives by adapting narrative, dialogue, and settings into visual sequences. The 2001 film The Lord of the Rings: The Fellowship of the Ring, directed by , derives from J.R.R. Tolkien's novel through screenplay fictionalization and dramatization, with copyright vesting in new audiovisual expressions while licensing the underlying text. Sequels or prequels expanding on established characters and worlds, such as franchise extensions, recast preexisting elements into new plots, requiring control over the original to avoid infringement. Transcribing the audio content of a copyrighted video into written text can also constitute a derivative work, as it adapts spoken expression into a recast form requiring permission from the copyright holder. In music, arrangements transform compositions by altering melodies, harmonies, or , such as orchestrating a piano piece for a full . A jazz rendition of a classical score, if it substantially recasts the original notes and structure, constitutes a derivative needing the composer's consent. Sound recordings of performances, when based on prior recordings through remixing or sampling, adapt preexisting audio tracks; for example, the 1989 track "Pretty Woman" by rearranged Roy Orbison's 1964 song, leading to litigation where courts assessed derivative status alongside claims. Software and provide examples through modified code or interfaces derived from base programs. Updating an open-source application by integrating modules recasts the original , with new attaching to alterations but subordinate to the preexisting work's terms. In video games, fan-made mods that alter graphics, levels, or mechanics from commercial titles, such as texture packs for , transform the underlying engine and assets, often prompting takedown notices absent permissive licensing. These cases underscore that fixation in digital formats does not alter derivative criteria, which focus on substantial use of protected expression.

Defenses, Exceptions, and Limitations

Fair Use Analysis Framework

The fair use doctrine under United States copyright law serves as a flexible defense against claims of infringement, applicable to unauthorized derivative works when the use aligns with purposes such as criticism, comment, news reporting, teaching, scholarship, or research, as enumerated in 17 U.S.C. § 107. This statutory provision establishes a balancing test comprising four factors, which courts must consider holistically without any single factor being determinative, to assess whether the challenged use qualifies as fair. The analysis is inherently fact-specific, requiring evaluation of the totality of circumstances, and applies equally to derivative works, where the defense may permit alterations or adaptations that do not merely supersede the original but add new expression, meaning, or message. Empirical data from U.S. Copyright Office records indicate that fair use rulings have upheld derivative uses in contexts like parody and commentary, though commercial exploitation weighs against fair use absent strong justifications in other factors. The first factor examines the purpose and character of the use, including whether it is commercial or nonprofit educational, and emphasizes transformativeness—whether the new work adds something new with a further purpose or different character, altering the original with new expression, meaning, or message. Courts, as in (510 U.S. 569, 1994), have clarified that commercial nature does not presumptively preclude , particularly for parodic derivatives that critique or comment on the original rather than serve as market substitutes. For derivative works, this factor favors uses that transform the source material's expressive content, such as satirical adaptations, over mere reproductions or slight modifications lacking independent creative justification. The second factor assesses the nature of the copyrighted work, distinguishing between factual and creative content, with greater protection afforded to highly creative or unpublished works where is less likely. Published works receive less stringent scrutiny than unpublished ones, as dissemination implies consent to public engagement, but imaginative fiction or artistic expressions demand careful portioning to avoid undermining the author's incentive to create. In derivative contexts, this factor cautions against extensive borrowing from core creative elements, such as plot structures in literary adaptations, unless the use critiques those very elements. The third factor evaluates the amount and substantiality of the portion used in relation to the copyrighted work as a whole, both quantitatively and qualitatively, disfavoring uses that appropriate the "heart" of the original even if limited in scope. Wholesale copying rarely qualifies as fair, but necessity may justify taking substantial portions for purposes like , provided the amount is no more than required to achieve the transformative goal. For derivatives, courts scrutinize whether the borrowed elements form the essence of the original's value, as in cases involving musical samples or visual motifs, where even brief excerpts can tip against if they capture protected without sufficient alteration. The fourth factor considers the effect of the use upon the potential market for or value of the copyrighted work, probing whether the derivative supplants demand for the original or harms exploitable derivative markets controlled by the holder. This market-harm analysis focuses on reasonably foreseeable exploitation, not hypothetical lost licensing fees, and favors where the new work serves niche audiences unlikely to displace the original's sales. In derivative disputes, evidence of actual revenue diversion—such as competing merchandise—undermines the defense, whereas uses expanding overall market awareness without cannibalization support it, as upheld in precedents balancing against monopoly harms. Courts weigh this factor last, integrating it with the others to ensure promotes free expression without eroding economic incentives for creation.

Role of Transformativeness

Transformativeness evaluates whether a secondary work alters the original copyrighted material by adding new expression, meaning, or message, thereby serving a further purpose or different character. This principle, integral to the fair use doctrine in U.S. copyright law under 17 U.S.C. § 107, primarily informs the first statutory factor: the purpose and character of the use. Transformative uses are deemed more likely to qualify as fair, as they expand upon the original without merely supplanting it, thus promoting creativity and free expression while respecting the copyright holder's exclusive right to prepare derivative works. The U.S. Supreme Court established the modern framework for transformativeness in Campbell v. Acuff-Rose Music, Inc. (1994), holding that a parody of Roy Orbison's "Oh, Pretty Woman" by 2 Live Crew constituted fair use because it critiqued the original through hyperbolic and bawdy expression, creating a new work that shed light on the source material rather than serving as a market substitute. The Court emphasized that the degree of transformation influences the weight of the first factor, with highly transformative works requiring less justification under subsequent factors like the amount used or market effect. In derivative work disputes, transformativeness can defend against infringement claims by demonstrating that the new creation justifies unauthorized . For instance, courts have upheld appropriations in visual , such as Richard Prince's alterations of Patrick Cariou's photographs, as transformative when they injected new aesthetic and commentary elements, diverging from the originals' documentary purpose. However, the doctrine does not grant carte blanche; commercial exploitation weighs against if the transformation fails to sufficiently alter the purpose. The Supreme Court's decision in Andy Warhol Foundation for the Visual Arts, Inc. v. Goldsmith (2023) refined this role, ruling that Warhol's silkscreen adaptations of Lynn Goldsmith's 1981 photograph of Prince were not transformative for licensing purposes, as they retained a similar celebratory purpose and expressive core, potentially usurping the original's derivative market. This 7-2 opinion underscored that aesthetic changes alone do not render a use transformative; the inquiry must compare the specific purposes, preventing overbroad fair use from eroding authors' rights to control adaptations. Critics, including legal scholars, argue the standard remains subjective, fostering litigation uncertainty despite its intent to balance innovation with protection. Examples of transformative derivatives include parodies, scholarly critiques, and thumbnails, which add commentary, education, or technological utility, whereas mere stylistic tweaks or commercial mimics often fail the test. Empirical analyses of case outcomes reveal that transformativeness correlates strongly with findings in appellate decisions from 1990 to 2020, though its application varies by circuit, highlighting the doctrine's evolution through judge-made rather than statutory rigidity.

Other Jurisdictional Exceptions

In jurisdictions outside the , copyright laws generally protect the exclusive right to authorize adaptations or derivative works of pre-existing materials, but provide enumerated exceptions that may permit limited transformative uses without infringement, subject to fairness assessments and specific purposes. These exceptions, often termed "" in countries or mandatory/optional provisions in civil law systems, contrast with the broader, open-ended doctrine by requiring the use to align with predefined categories such as criticism, parody, or , while adhering to the Berne Convention's three-step test for limitations on exclusive rights. Unlike U.S. , which weighs multiple factors flexibly, these mechanisms prioritize enumerated purposes to balance creator rights with public interests like free expression, though courts assess "fairness" based on factors including the amount used, commercial nature, and effect on the market. In the , the , Designs and Patents Act 1988 (CDPA) establishes exceptions applicable to derivative uses. Section 30 permits for criticism or review of a work or , allowing or of sufficient portions to enable the , provided the source and authorship are acknowledged where practicable; this has supported transformative adaptations in cases involving literary or artistic works. Additionally, since October 1, 2014, Section 30A provides an exception for , , or , enabling the creation of works that evoke or mock the original without requiring fair dealing's purpose-specific limitation, as long as the use does not conflict with normal exploitation or harm the work's legitimate interests—a standard derived from EU harmonization. courts, in decisions like Hubbard v. Vosper (1972), have interpreted fairness narrowly, emphasizing that substantial copying for must genuinely transform or comment on the original to avoid infringement. Canada's Copyright Act employs a fair dealing framework that explicitly includes purposes enabling derivative works, expanded by amendments effective November 7, 2012, to encompass parody and satire alongside research, private study, criticism, review, education, and news reporting. The Supreme Court's ruling in CCH Canadian Ltd. v. Law Society of Upper Canada (2004) established a two-part test: first, the use must fit an enumerated purpose; second, it must be fair, evaluated via six non-exhaustive factors including purpose, character (e.g., transformative vs. commercial), amount copied, alternatives available, nature of the work, and market impact. This has permitted derivative parodies, such as satirical adaptations of songs or images, provided they do not reproduce the essence of the original excessively; for instance, courts have upheld uses where transformation adds new expressive content, distinguishing from mere substitution. Unlike explicit derivative work protections in U.S. law, Canada's approach integrates adaptation rights within reproduction and authorizes limited dealings without separate fixation requirements for the new elements. In the , the Information Society Directive (2001/29/EC) outlines optional exceptions under Article 5(3) that member states may implement for derivative uses, including quotations for criticism or review (Article 5(3)(d)) and , caricature, or (Article 5(3)(k)). The Court of Justice of the EU in Deckmyn v. Vandersteen (2014) clarified that exceptions require the derivative work to evoke the original while conveying a discriminatory or humorous message, with a fairness balance considering conflict with normal exploitation and the original author's rights, thus enabling transformative adaptations like satirical cartoons without blanket permission. exceptions permit limited excerpts in new works for analytical purposes, provided they are justified by the informative role and proportionate to the goal, as implemented variably across member states (e.g., Germany's Urheberrechtsgesetz §51 allows transformative quotations). The Directive on in the (/790) reinforced these by mandating exceptions for text and , which may involve derivative processing, but remains optional and purpose-bound, often narrower than due to civil law emphasis on . Australia's Copyright Act 1968 similarly limits exceptions to fair dealing for criticism, review, parody, or satire (added 2006), requiring dealings to be internally fair and not prejudicial to the original's market, with courts applying tests akin to Canada's but rejecting broader transformative defenses absent enumerated fit. These provisions collectively ensure exceptions for derivative works remain constrained, promoting innovation through specific allowances while safeguarding economic incentives, though empirical analyses indicate they permit fewer adaptive uses than U.S. fair use, particularly for commercial parodies.

Controversies and Modern Challenges

AI Training Data and Output Infringement Debates

The ingestion of copyrighted materials to train generative AI models has sparked intense legal debate over whether such processes infringe the exclusive rights to reproduction and preparation of derivative works under law, particularly Section 106 of the U.S. Copyright Act. Proponents of infringement argue that copying vast datasets of protected works into training corpora constitutes unauthorized reproduction, even if the data is processed into model weights that do not directly reproduce originals, as the intermediate copies enable the creation of a new work derivative of the inputs' expressive elements. This view posits that AI models effectively "" patterns from copyrighted sources, rendering the trained model a derivative work without permission, akin to unauthorized adaptations in traditional media. Critics of this position counter that training involves statistical abstraction rather than expressive copying, distinguishing it from derivative works that recast originals in a new form while retaining , and emphasize that human creativity analogously draws from protected materials without infringement. Court rulings have yielded mixed outcomes, with fair use defenses under 17 U.S.C. § 107 often pivotal. In Bartz v. (N.D. Cal., 2025), the court held that training the Claude AI model on copyrighted books was "highly transformative" , as the process extracted factual patterns for new expressive generation without supplanting the originals' markets, dismissing claims of derivative infringement due to lack of in outputs. Similarly, in Kadrey v. Meta (N.D. Cal., 2025), training Llama models on ingested works, including from unauthorized sources, qualified as because the transformative nature—converting text into predictive algorithms—did not harm plaintiffs' licensing markets and advanced innovative purposes. However, a federal court in a 2025 ruling (first major decision on point) rejected for AI training on legal databases, finding the defendant's systematic copying non-transformative and directly competitive, potentially establishing precedent against unlicensed ingestion in specialized domains. Debates extend to AI outputs, where infringement claims hinge on whether generated content qualifies as unauthorized derivatives substantially similar to training inputs. Plaintiffs in cases like v. (S.D.N.Y., filed 2023, ongoing as of 2025) allege that model outputs verbatim reproduce or closely mimic articles, constituting derivative works that exploit without compensation, though defendants invoke by arguing outputs as independent creations from learned probabilities rather than direct derivations. Empirical evidence from outputs shows rare exact reproductions but frequent stylistic echoes, raising causal questions about whether infringement occurs only upon or extends to probabilistic influences. The U.S. Office's May 2025 report acknowledges reproduction infringement in training but notes fair use's flexibility, cautioning that outputs resembling originals could independently infringe without shielding under training defenses. Over 25 such lawsuits pend nationwide as of April 2025, with outcomes turning on market harm analyses: training rarely substitutes originals, but outputs in creative fields may erode incentives if deemed infringing derivatives. These disputes underscore tensions between innovation and creator rights, with AI firms asserting broad fair use to sustain data-hungry models, while rights holders demand opt-outs or licensing to prevent de facto expropriation. Internationally, approaches diverge; Japan's 2024 guidelines permit training on copyrighted works absent market harm, contrasting U.S. case-by-case scrutiny. Empirical critiques highlight that unlicensed training scales to billions of works—e.g., Common Crawl datasets encompassing terabytes—potentially undermining causal incentives for original creation if fair use immunizes free-riding at mass levels. Courts' evolving fair use applications, informed by precedents like Google Books, prioritize transformativeness but remain wary of outputs enabling competitive substitutes.

Balancing Creator Rights with Innovation Incentives

The exclusive right to prepare derivative works, enshrined in frameworks like the , enables original creators to monetize adaptations such as sequels, remakes, or licensed merchandise, thereby providing economic incentives for initial investment in expressive works. This monopoly right compensates authors for fixed costs of creation while discouraging free-riding, as subsequent creators must negotiate licenses or risk infringement liability. However, it simultaneously raises barriers for innovators seeking to incorporate prior elements, potentially reducing the stock of buildable cultural inputs and to cumulative . Economic models frame this as a : stronger derivative controls enhance first-mover rewards but impose deadweight losses from foregone follow-on works, with optimal policy hinging on empirical calibration of term length and exceptions to maximize total output. Empirical analyses of copyright extensions, such as the 1998 Copyright Term Extension Act lengthening U.S. terms to life of author plus 70 years, reveal scant evidence of heightened creative incentives proportionate to the prolonged lockup of works from entry. Studies examining pre- and post-extension outputs find no significant uptick in new compositions or publications attributable to extended terms, yet document reduced availability for , including reprints and adaptations, during protected periods. For example, econometric reviews of European and U.S. data indicate that works entering the after shorter terms trigger measurable surges in derivative productions—like a 30-50% increase in publications for lapsed copyrights—implying that in-term exclusivity curtails by limiting access to foundational texts, films, and compositions. These findings challenge claims of perpetual incentives, as marginal extensions beyond 50-70 years yield negligible supply boosts while amplifying monopoly rents for legacy estates over active creators. Policy responses to this imbalance include doctrinal tools like , which permits non-substitutive derivative transformations (e.g., parodies or critical analyses) without eroding the original's market, as clarified in cases like Campbell v. Acuff-Rose Music (1994). Yet, 's fact-specific adjudication introduces uncertainty, potentially deterring risk-averse investments in borderline derivatives such as sampling in music or fan-derived media. Alternative mechanisms, including compulsory licensing schemes for certain derivatives (as in some mechanical reproduction rights under the U.S. Audio Home Recording Act of 1992), or reversion rights returning control to originators after a set period, aim to internalize externalities by sharing gains from successful adaptations while preserving incentives. Empirical critiques highlight that overreliance on expansive claims risks underprotecting originals, as evidenced by stalled negotiations in industries like hip-hop sampling where clearance costs exceed 20-50% of production budgets, underscoring the need for term limits calibrated to genres' amortization rates—shorter for high-turnover media like software derivatives, longer for capital-intensive ones like films. Jurisdictional variations, such as the EU's 70-year post-mortem term versus proposals for life-plus-50, further illustrate ongoing debates, with data favoring reforms that prioritize public access post-recoupment to sustain innovation cycles.

Empirical Critiques of Overbroad Fair Use Claims

Empirical analyses have challenged claims that expansive interpretations of substantially enhance economic output without undermining incentives for original creators, particularly in contexts involving derivative works that could supplant licensing markets. Studies examining international adoptions of U.S.-style broad doctrines, such as in and following expansions around 2005, found no corresponding acceleration in GDP growth relative to counterfactual projections; instead, per-capita GDP trajectories suggested stagnation or deceleration, implying that overreliance on may divert value from primary holders to secondary users without net innovation gains. Core industries purportedly dependent on , like software publishing, exhibit comparable or higher employment shares in fair use-limited regimes (e.g., Sweden's 0.22% vs. the UK's 0.03%), contradicting assertions that such doctrines are prerequisites for sector vitality and highlighting potential revenue leakage from creators via unlicensed derivatives. In derivative markets, overbroad fair use invocations risk eroding licensing revenues by treating potential commercial exploitations as non-harmful, even when they function as substitutes. Economic modeling indicates that fair use serves as a bargaining "threat point," enabling users to negotiate down licensing fees or bypass them entirely, thereby reducing creators' expected returns and disincentivizing investment in upstream works amenable to derivation. Experimental evidence from music sampling—a classic derivative use—demonstrates negative spillovers, where unauthorized reuse diminishes perceptions of the original work's quality and market value, amplifying harm beyond direct substitution. Recent applications to AI-generated derivatives underscore these effects, with unauthorized training on copyrighted inputs yielding outputs that compete directly with originals, depriving authors of streams from adaptations or related products. For instance, generative models replicating stylistic elements of novels or articles can fulfill consumer for similar content, eroding the original's commercial viability without compensatory mechanisms, as evidenced in ongoing litigation where plaintiffs document lost licensing opportunities. Such dynamics favor large-scale secondary exploiters over individual creators, potentially contracting the supply of high-value originals if boundaries expand unchecked, per causal analyses linking exception breadth to diminished upstream incentives.

References

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