Flashcards Studio

VeraTech, a consumer electronics firm, hires Jade, a freelance motion-graphics artist, to produce a 90-second promotional video and a set of stills for a new product launch. The engagement is in writing and contains a clause stating: “All works created under this engagement are works made for hire under Section 172.2 of the Intellectual Property Code; VeraTech shall own worldwide rights, including derivative works.” Jade uses her own laptop and editing suite. After completion, VeraTech distributes the video nationwide. Six months later, Jade leaves and starts her own production outfit, offering a similar promotional package to a competitor. Answer the following:   (a)Who owns the copyright in the video and stills? Is the video a “work made for hire” under Sec. 172.2? (b)If VeraTech desires exclusive ownership of the video and all derivative works, is a separate written assignment of rights required under Sec. 175? Explain, applying the facts. (c)If Jade reproduces and distributes the video for a competitor without VeraTech’s consent, what remedies may VeraTech seek under Sec. 181?