What 3 myths exist about intellectual property rights?

Intellectual property law is still sometimes seen by entrepreneurs as a complex area of law and many people have assumptions about their rights that are not always correct. This can lead to unwanted situations, such as a copyright on a logo that suddenly turns out to still belong to the designer. In this article I therefore debunk three common myths about intellectual property rights.

Myth 1: “If I paid someone to create something for me, then I own the copyrights.”

Many people assume that when they commission someone to create a work – such as a logo, photo or software – for them and pay for it that they automatically get the copyrights to that work. This is a myth. In the Netherlands, copyright in principle belongs to the person who creates the work. That is, the logo designer, photographer or software developer. The fact that you have commissioned and paid for the work does not change this.

There is an exception, however, called “client copyright. Was a work commissioned and created under the specific direction and supervision of you as the client? Then the copyright probably belongs to you. However, this requires a very close involvement of you as the client in the creation of the work. This close involvement is usually lacking, so that the contractor acquires the copyright anyway.

To avoid discussions afterwards, it is advisable to make agreements with the contractor about copyright (and any other intellectual property rights) in advance. Always take a look at the contractor’s general terms and conditions. These often state how the contractor handles copyrights.

Do you want the copyright to belong to yourself? Then clearly document this arrangement in a written agreement. Do this before the contractor starts working for you. Without such an agreement, you may have a right of use, but you are not the copyright owner. This allows the contractor to impose restrictions on the use of the work or to reuse the work itself for other projects.

Myth 2: “I have a name registered as a trade name with the Chamber of Commerce, so I have a trade name right.”

This is incorrect. Registering a trade name with the Chamber of Commerce (CoC) is an administrative act that in itself does not create a trade name right. In fact, trade name rights only arise through the actual use of the name in commerce to distinguish your business. Think of the use of the name in advertising, on websites or in business correspondence. Without such use, you cannot derive any rights from the name, regardless of registration with the Chamber of Commerce. Thus, it is essential to actively use the trade name in your business operations to enjoy protection.

Note that you must use the name to distinguish your business. For example, are you using the name only to distinguish a specific product? Then this is not trade name use. However, you may then be able to register this name as a trademark. Incidentally, this also applies to the trade name.

Does the registration of a trade name at the Chamber of Commerce play no role at all in its protection? It certainly does play a role. Registering your trade name with the Chamber of Commerce can help you (prevent) a dispute about the name. This is because by registering, you show others that and since when you have been using your trade name.

Myth 3: “Registering a trademark automatically protects all variations and uses of my mark.”

Another misconception is that registering a trademark provides complete protection against any use that somewhat resembles the mark. In reality, a trademark registration provides protection only for the specific use of the mark within the registered class(es) of products or services. For example, do you register your trademark only in the class of clothing? Then this usually does not mean that your trademark is also protected for use in, say, electronics. This is why two different companies have registered the trademark AJAX. One for soccer apparel, among other things, and the other for cleaning products, among other things.

Furthermore, protection usually only covers the specific appearance or – in the case of a word mark – the exact wording of the registered mark. Variants or similar names can in some cases be used by other companies, as long as they do not directly confuse or mislead consumers. Want to register a trademark. Then think carefully about what you want to register as a trademark and for what products or services you want that protection.

Contact

Do you need help making the right copyright agreements with your client? Are you unsure whether your name is protected with a trade name right or not? Are you having trouble registering your trademark? Or do you have any other questions as a result of this article? Please contact us by email, telephone or fill out the contact form for an initial consultation. We are happy to assist you.