6 Common Copyright Mistakes Businesses Make

Are you a business owner or content creator asking yourself, “What are the most common copyright mistakes, and how can I avoid them?” If so, you’ve made it to the right place!

If you create something, it’s super important to know how to protect your work as well as how to avoid infringing on someone else’s copyrighted material. People who don’t take the time to understand copyright law tend to find themselves in trouble legally or within their industry, which could lead to a loss in reputation, profits, and more. 

Today, we are going to take a look at six common copyright mistakes that businesses often make. We’ll discuss each error in detail and provide practical tips to help you along the way.

Let’s dive in! 

Mistake 1: Assuming All Online Content is Free to Use

In our experience, one of the most common copyright mistakes businesses make is thinking that if something is available online, it’s free to use. The reality is this is rarely the case.

This misconception leads people to believe that images, articles, or videos they find through a simple Google search are up for grabs. 

Here’s the reality: Almost everything you find online is protected by copyright, even if there’s no visible copyright notice. This list includes images, articles, music, videos, and illustrations. 

Using these materials without permission can lead to fines and serious damage to your reputation. You don’t want to add this burden, especially if you’re building a new business from the ground up. 

So, let’s talk about how to avoid this mistake. Here’s a list of tips we suggest saving so you can make sure you’re using content responsibly,

• Always assume content is copyrighted unless proven otherwise.
• Look for Creative Commons licenses or explicitly stated permissions.
• Use royalty-free stock image websites for visuals.
• Create your own original content whenever possible.
• When in doubt, reach out to the content creator for permission.

It may seem inconvenient, but taking a few extra minutes to make sure you have the right to use content can save you from major headaches down the road. If you’re looking for a platform that can give you peace of mind, make sure to check out those subscription services, such as Envato and their commercial use license.

Damian Grabarczyk, an e-commerce entrepreneur and marketing leader at PetLab Co., says, “We recognized early on that using online content without proper permissions could lead to significant legal and reputational risks. To mitigate this, we developed a robust protocol where we create most of our content in-house, ensuring compliance with copyright laws. For additional content needs, we rely on reputable, royalty-free platforms and maintain a detailed content log to track every piece of material’s origin and usage rights. This proactive approach not only safeguards us from legal issues but also streamlines our marketing operations, allowing us to focus on creating valuable, ethical content for our audience.”

Mistake 2: Not Understanding “Fair Use”

Fair use is a concept that many business owners have heard of, but despite this, it’s still one of the most common copyright mistakes.

So, let’s define the term “fair use” so that we are all on the same page.

Fair use is essentially a law that allows limited use of copyrighted material, even if you don’t have permission from the copyright owner. It’s meant to balance the rights of the copyright owner with the public interest in using copyrighted works for purposes of commentary, criticism, news reporting, teaching, or research.

But here’s where businesses go wrong: they think any use they consider “fair” is automatically fair use under the law. Not true!

These four factors determine fair use: 

1. The purpose and character of the use (is it commercial or non-profit educational)
2. The nature of the copyrighted work
3. The amount and substantiality of the portion used
4. The effect of the use on the market for the original work

Misunderstanding fair use can get your business in trouble. Here are some common mistakes:

Myth: If I give credit to the original creator, it’s fair use.

Reality: Attribution doesn’t automatically make your use fair.

Myth: Using only a small portion of a work is always fair use.

Reality: Even using a small amount can be an infringement if it’s the “heart” of the work, such as a finished drawing or key takeaway in a video. 

Myth: If I’m not making money from it, it’s fair use.

Reality: Non-commercial use is just one factor; it doesn’t guarantee fair use. 

Real-World Example

Let’s look at the famous case of A&M Records, Inc. v. Napster, Inc.

Napster, launched in 1999, was a pioneering peer-to-peer file-sharing service that allowed users to share MP3 music files easily. It quickly became immensely popular, with millions of users sharing copyrighted music.

Napster argued that it was merely providing a place for people to share files and that it wasn’t directly infringing on copyrights. They also claimed protection under the “fair use” doctrine and the Audio Home Recording Act.

However, the court didn’t buy these arguments. In 2001, the Ninth Circuit Court of Appeals determined that Napster was liable for contributory infringement and vicarious infringement of copyright. The court found that Napster knew of the infringement and failed to prevent the exchange of copyrighted material.

Mistake 3: Failing to Register Copyrights

Put plainly, copyright registration is the process of officially recording your copyright with the U.S. Copyright Office. It’s a way to create a public record of your copyright claim. 

One mistake I’ve seen happen more often than I’d like to admit is people simply fail to register their copyright. The number one reason for this is they are under the assumption that if they create something original, their work is already covered. While this is technically true, failing to take this step can cause a ton of problems down the road. 

Here are some issues that you need to know about: 

• Limited Legal Protection – Without registration, you can’t sue for copyright infringement in federal court. This means you might be unable to take legal action if your work is used without permission.
• Missed Financial Opportunities – If you win an infringement lawsuit, you can only collect actual damages without registration. With registration, you can claim statutory damages and attorney’s fees, which can be much higher.
• There’s No Public Record – Registration creates a public record of your copyright, making it easier to prove ownership and deter potential infringers.
• No Presumption of Validity – Registered works are presumed valid in court, which will shift the burden of proof to the alleged infringer.

The good news is there are quite a few things you can do to make sure you’re protected. These are all strategies that we recommend: 

1. Register your most valuable works as soon as possible after creation.
2. Consider registering collections of works (like blog posts) to save on fees.
3. Keep records of your creative process to support your copyright claims. This can be digital or physical, preferably both.
4. Set reminders to register your latest creations. We suggest doing so at least once or twice a year, minimum.

It’s worth remembering that registration isn’t necessarily required for copyright protection, but it does provide significant benefits that can be crucial for your business.

Mistake 4: Improper Use of Music and Other Media

If you’re like 86% of business owners, you probably produce videos for marketing campaigns. Odds are, you also need some background music to make your video content more engaging.  It’s at this point you’re primed to make a copyright mistake – using music or other media without permission. 

Let’s dive into why improper use of music and other media can be a serious problem for your business.

First, it’s important to understand that most commercially available music, videos, and other media are protected by copyright. This means you can’t just use them freely in your content without permission or proper licensing.

There are places that have royalty-free music that you can use, and that’s perfectly fine. But if you try to put your favorite songs on top of a video gallery of your artwork, there’s a very good chance it will get taken down. 

So, how can you avoid this mistake?

1. Always obtain proper licenses for any music or media you use in your business content.
2. Use royalty-free music from legitimate sources designed for commercial use.
3. Consider hiring musicians to create original music for your business.
4. Be cautious with “free” music found online – make sure it’s truly free for commercial use.
5. Don’t assume that because other companies are using certain music, it’s okay for you to do so, too.

Real-World Example

Vanilla Ice’s hit “Ice Ice Baby” sampled the bass line from “Under Pressure” by Queen and David Bowie. Vanilla Ice claimed it was fair use, saying he added a single note to the riff. But a judge ruled that wasn’t enough to be fair use.

The case was settled out of court, with Vanilla Ice paying an undisclosed amount and giving songwriting credit to Queen and Bowie. This shows that even a small sample can be considered copyright infringement if not licensed properly.

Get fair use right for your business, especially if you create content or use others’ work in marketing. If in doubt, always ask or use content you know you can use.

Mistake 5: Ignoring Employee-Created Content Ownership

When it comes to content created by employees or contractors, many businesses make the mistake of assuming they automatically own the rights to that work. This isn’t always the case, and it’s a misconception that can lead to legal issues down the line.

The work-for-hire doctrine is a key concept here. Under this doctrine, an employer is considered the author and owner of work created by an employee within the scope of their employment. However, it’s not as straightforward with independent contractors.

Here’s what you need to know:

For employees: Work created within the scope of employment is generally owned by the employer. For example, 

For contractors: Unless there’s a written agreement stating the work is “work-for-hire,” the contractor usually retains ownership.

The last thing you need is to end up in a position where you’re battling against your former or current employees over copyright material. 

So, here’s some tips for avoiding this surprisingly common mistake: 

• Have clear, written agreements with all employees and contractors.
• Specify ownership of intellectual property in these agreements.
• For contractors, include “work-for-hire” language in contracts when appropriate.
• Consult with a lawyer to ensure your agreements are legally sound.

Remember, clarity in these agreements can prevent costly disputes and ensure your business retains ownership of crucial intellectual property.

Mistake 6: Failing to Attribute Properly

Proper attribution is essential when using someone else’s work, even when you have permission or the work is under a Creative Commons license. Many businesses overlook this step, which can lead to misunderstandings, legal issues, and damaged relationships with original creators.

Here’s why proper attribution is vital for your success: 

• Legal compliance: Even with permission, failing to attribute can violate the terms under which the work is shared.
• Respect: It shows respect for the creator’s hard work and intellectual property.
• Avoiding plagiarism: Proper attribution helps distinguish between your original content and the borrowed material.

To avoid this mistake, follow these steps:

1. Understand attribution requirements: Each type of license, especially Creative Commons, has specific attribution requirements.
2. Include all necessary information: This typically includes the creator’s name, the title of the work, the source, and the license type.
3. Use tools and resources: Utilize tools such as Creative Commons license chooser to help determine how to attribute correctly.
4. Double-check licenses and permissions: Ensure you comply with the specific requirements laid out by the owner or the license of the material you are using.

Conclusion

If your goal is to run an ethical, transparent business, you need to embrace copyright law and use it to your advantage. Along the way, you’ll want to follow our tips so you can avoid common copyright mistakes and protect your own intellectual property while respecting the rights of others.

So, take the time to assess your current practices and identify areas where you might be at risk. Remember, copyright law can be complex, and it’s always changing. When in doubt, don’t hesitate to seek legal advice from a professional who specializes in this field. They can give you the guidance you need to move forward.

By staying informed and proactive about copyright issues, you’ll save yourself from potential legal troubles and financial losses while building a business that’s focused on creating original content and crediting creators when necessary.