The Derivative Right, Or Why Copyright Law Protects Foxes Better Than Hedgehogs, 15 Vanderbilt Journal of Entertainment and Technology Law

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The Derivative Right, Or Why Copyright Law Protects Foxes Better Than Hedgehogs, 15 Vanderbilt Journal of Entertainment and Technology Law Vanderbilt University Law School Scholarship@Vanderbilt Law Vanderbilt Law School Faculty Publications Faculty Scholarship 2013 The eD rivative Right, or Why Copyright Law Protects Foxes Better than Hedgehogs Daniel J. Gervais Follow this and additional works at: https://scholarship.law.vanderbilt.edu/faculty-publications Part of the Entertainment, Arts, and Sports Law Commons, and the Intellectual Property Law Commons Recommended Citation Daniel J. Gervais, The Derivative Right, or Why Copyright Law Protects Foxes Better than Hedgehogs, 15 Vanderbilt Journal of Entertainment and Technology Law. 820 (2013) Available at: https://scholarship.law.vanderbilt.edu/faculty-publications/833 This Article is brought to you for free and open access by the Faculty Scholarship at Scholarship@Vanderbilt Law. It has been accepted for inclusion in Vanderbilt Law School Faculty Publications by an authorized administrator of Scholarship@Vanderbilt Law. For more information, please contact [email protected]. R Retrieved from DiscoverArchive, Vanderbilt University’s Institutional Repository This work was originally published as Daniel Gervais, The derivative right, or why copyright law protects foxes better than hedgehogs, in 15 Vanderbilt Journal of Entertainment and Technologgy Law 820 2013. The Derivative Right, or Why Copyright Law Protects Foxes Better than Hedgehogs Daniel Gervais, Ph.D.* ABSTRACT The derivative right is at the very core of copyright theory. What can and cannot be reused to create a new work impacts freedom of expression but also impacts the value of the markets for works and their various “derivatives.” The derivative right includes forms of derivation and adaptation, such as making a movie from a novel or translating a book. It also covers what this Article refers to as penumbral derivatives, which the US Copyright Act captures using the phrase “based upon” with respect to preexisting works. This leads to indeterminacy about the scope of the derivative right, which may have chilling effects on nonprofessional Internet users who may not have the time, desire, or resources to consider or negotiate copyright rights. This Article acknowledges that derivation often includes reproduction of all or part of a preexisting work. How is the derivative right different from the right of reproduction? That is the main question tackled in this Article. Using the Berne Convention negotiating history, as well as US, British, French, and German jurisprudence, this Article suggests that the derivative right has a different normative target than the right of reproduction, in spite of their considerable overlap. The Article enunciates six mobilizing principles, which it then proceeds to * Ph.D. Professor of Law, Vanderbilt University Law School. Director, Vanderbilt Intellectual Property Program. The Author is extremely grateful to Professors Abraham Drassinower, Jane C. Ginsburg, Paul Goldstein, Tyler Ochoa, Pamela Samuelson, and William Patry for their comments on earlier versions of this Article. All errors and omissions are the Author’s. I also wish to thank Adriane Porcin (Visiting Scholar, Vanderbilt University Law School), and Kathryn Baker, Lauren Gregory, and Colleen Mallea (three J.D. candidates, Vanderbilt University Law School) for their useful assistance in preparing this Article, and the excellent work done by the VANDERBILT JOURNAL OF ENTERTAINMENT & TECHNOLOGY LAW, in particular the Editor-in-Chief, Shane D. Valenzi, and the Executive Editor, Michael F. Dearington. The title refers to Hoffman LJ’s quip that “Copyright law protects foxes better than hedgehogs” in Designer Guild Ltd. v. Russell Williams (Textiles) Ltd., [2000] UKHL 58, [2001] 1 W.L.R. 2416 (appeal taken from Eng.). It is explained later in the Article. 785 786 VANDERBILT J. OF ENT. AND TECH. LAW [Vol. 15:4:785 demonstrate. The Article also argues and demonstrates in particular that there is a hard line that divides fundamental changes that are noninfringing under a proper derivative right analysis (in most cases because the idea, not the expression, is appropriated), and those that are noninfringing as transformative fair uses. Finally, the Article strikes a note of caution specific to appropriation art. TABLE OF CONTENTS I. THE DERIVATIVE RIGHT IN CONTEXT ................................. 792 A. Emergence of the Derivative Right in the US Copyright Act ............................................................................... 792 B. Contextualizing the Derivative Right in Copyright Policy ........................................................................... 797 C. Known Quantities ......................................................... 801 II. PROPOSED PRINCIPLES ...................................................... 805 A. Definitional Principles ................................................. 805 B. Cautionary Principles................................................... 808 III. THE RIGHT TO MAKE DERIVATIVE WORKS FROM AN INTERNATIONAL PERSPECTIVE ........................................... 810 A. The Emergence of the Derivative Right Internationally 811 B. The Derivative Right in the Berne Convention .............. 816 C. Derivative Works in the Current Text of the Berne Convention ................................................................... 820 IV. THE DERIVATIVE RIGHT IN MAJOR EUROPEAN LEGAL SYSTEMS ........................................................................... 822 A. France .......................................................................... 822 B. Germany ....................................................................... 828 C. United Kingdom ........................................................... 831 D. European Lessons ......................................................... 834 V. PULLING IT ALL TOGETHER ............................................... 835 A. Speech Considerations .................................................. 836 B. Reproduction versus Derivation .................................... 839 C. Derivation as Art .......................................................... 848 VI. CONCLUSION ..................................................................... 854 The lumpish and rather capacious notion of “derivative work,” added to the US Copyright Act in 1976, is at the very heart of copyright theory and practice.1 Yet thirty-five years after its injection 1. See 17 U.S.C. § 101 (2006) (defining “derivative work”); § 103 (making “derivative works” copyrightable subject matter); § 106(2) (giving copyright owners the right “to prepare derivative works”). The Author will say more on the importance of the notion in the text preceding Part I. 2013] THE DERIVATIVE RIGHT 787 in the statute, serious doubts remain about its scope and purpose.2 If our understanding of this notion is nebulous, it is not because the derivative right does not matter—quite the opposite: The scope of the derivative right directly impacts the range of lawful reuses of a work or, viewed from across the fence, reuses that a copyright owner can prohibit.3 This includes several types of online uses and, most notably, user-generated content (UGC).4 As such, this Article builds on work previously published in the Vanderbilt Journal of Entertainment and Technology Law.5 Not surprising given the importance of the derivative right, a substantive debate on its purpose and scope has been ongoing in both courts and scholarly literature since at least the early 1980s.6 This debate has reached a new level of acuteness with remixes, mash-ups, and more generally the transition from a professional one-to-many entertainment infrastructure to a many-to-many—and in large measure amateur—environment in which financial incentives are often not a significant motivation for creation.7 Indeterminacy about the scope of the derivative right may have more perceptible chilling effects on nonprofessional Internet users because they may not have the time, desire, or resources to consider or negotiate copyright 2. After years of tergiversations, we are no closer to a workable understanding. As William Patry noted, “regrettably the understanding of derivative works is fast approaching incomprehensibility.” WILLIAM F. PATRY, PATRY ON COPYRIGHT § 3.46 (2012). Incomprehensible, perhaps, yet it is also fascinating both intellectually and as a matter of policy for user-generated content (UGC), appropriation art, and other new forms of cultural expression. 3. Under 17 U.S.C. § 106(2), a copyright owner can prohibit the making of derivative works, which the statute defines in part as works “based upon” the author’s work. 17 U.S.C. § 101. 4. See Daniel Gervais, The Tangled Web of UGC: Making Copyright Sense of User-Generated Content, 11 VAND. J. ENT. & TECH. L. 841, 842–43 (2009). 5. See id. 6. See, e.g., Zomba Enters., Inc. v. Panorama Records, Inc., 491 F.3d 574 (6th Cir. 2007) (holding unauthorized sound recordings of music for karaoke infringed); Mulcahy v. Cheetah Learning LLC, 386 F.3d 849 (8th Cir. 2004) (reversing summary judgment and remanding for analysis of derivative-work claim in case involving condensation of test materials); Castle Rock Entm’t, Inc. v. Carol Publ’g Grp., Inc., 150 F.3d 132 (2d Cir. 1998); Radji v. Khakbaz, 607 F. Supp. 1296 (D.D.C. 1985) (holding unauthorized translation of substantial excerpts from plaintiff’s book infringed the derivative right); see also PAUL GOLDSTEIN, GOLDSTEIN ON COPYRIGHT § 7.3 (3d ed. 2012); Naomi Abe Voegtli, Rethinking Derivative Rights, 63 BROOK. L. REV. 1213, 1267 (1997) (proposing
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