The Copyright Ownership Boomerang: Automatic Reversionary Interests In Canada

In Canada, an author's assignment of their copyright ownership is not always a final disposition of rights. Section 14 of the Canadian Copyright Act (the "Act") provides an author's estate with a reversionary interest in the copyright in work assigned or exclusively licensed by the author during their lifetime. The interest is triggered automatically. It kicks in at the end of 25 years after the author's death, with few exceptions. Subject to minimal judicial interpretation, the reversionary interest in Canada is an oft overlooked provision that has the potential to cause much mischief.

Today, more and more businesses rely on acquired IP in works created in the mid-to-late 20^th century (e.g., comics, movies, books, etc.) to build and develop their brands and market share, particularly in the entertainment industry. As the original authors of those IP works age and pass, reversionary interests are poised to take on new significance for both rights holders