Copyright Dangers

Business owners need to be wary of the actions of their employees in relation to many things, such as treatment of other employees, internet use, and social media.  Businesses can now add copyright infringement to the list of issues which they need to properly regulate within their organisation.

A recent High Court judgment held a business liable for breach of copyright by an employee. Phonographic Performance Ltd brought an action against a music bar and nightclub owner for repeated copyright infringement. Music was played at the venue but it was not licensed to do so. The claimant, Phonographic Performance Ltd, held the public performance right in the recordings and they pursued an injunction to stop the music bar owner from continually infringing its copyright.

The Court considered that the nightclub owner was not just an employee and held the owner in breach of copyright.

Importantly, however, the Judge went on to state that even if the Court did accept that the owner was only an employee, this would be no defence to copyright infringement.

This case means that employers will be liable for the wrongs committed by their employees. Employers may also be liable for licence fees or damages for infringement of copyright.

Do your employees regularly produce content which may involve the use of the work of others? Do you know what steps your employees take to verify that any content used by them is authorised by the copyright holder? Do you have a policy in place to deal with such issues?

To discuss these issues, contact us.