A Mumbai-based startup built its entire brand around a logo and website designed by a freelance agency. Three years after launch, the agency’s founder contacted them: he had left the agency, taken the design files, and was now offering the same design slightly modified to other clients. The startup’s lawyers reviewed the contracts signed with the agency. They found invoices, a project brief, email correspondence, and a final delivery confirmation. What they did not find was a copyright assignment deed. Under Indian law, the copyright had never left the designer.
This is not an edge case. It plays out across Indian businesses every week, across every creative industry software, graphic design, content writing, photography, architecture, product design, film production. The reason is consistently the same: businesses assume that commissioning and paying for creative work transfers copyright automatically. Under Indian law, it does not.
Copyright ownership in India is governed by the Copyright Act, 1957, and the rules are specific about who owns what across three distinct scenarios that Indian businesses, freelancers, and employees encounter constantly. Understanding these rules is the foundation of every copyright protection strategy.
The governing provision: First ownership of copyright in India is determined by Section 17 of the Copyright Act, 1957. The default rule is clear: the author the person who actually creates the work is the first owner of copyright in it. Everything else flows from exceptions to this default. Section 17 sets out which relationships create those exceptions and under what conditions.
Scenario One: The Business That Commissions a Freelancer
Does paying a freelancer transfer copyright to the business that hired them?
No. Under Indian copyright law, payment for creative work does not transfer copyright. Commissioning a freelancer a graphic designer, a software developer, a content writer, a photographer, a UI/UX designer does not automatically vest copyright in the business that paid for the work.
Section 17 of the Copyright Act, 1957 establishes the default: the author of a work is its first owner. For a freelancer engaged under a contract for services a project-based engagement, as opposed to an employment relationship the freelancer is the author and therefore the first copyright owner of everything they create, regardless of who commissioned it, who paid for it, or who it was made for.
The only way to transfer copyright from a freelancer to the commissioning business is through a valid written assignment that complies with Section 19 of the Copyright Act, 1957. That assignment must be in writing, signed by the freelancer (the assignor), identify the specific work being assigned, specify the rights being transferred, and state the territory, duration, and royalty position. An invoice, a WhatsApp conversation, a purchase order, or a general “all IP belongs to the client” clause in a service agreement does not satisfy Section 19’s requirements.
What is the landmark Indian case on commissioned work ownership?
Najma Heptulla v. Orient Longman Ltd. (Delhi HC)
This case is the foundational Indian judicial authority on copyright ownership in commissioned works. The Maulana Azad Memorial Trust commissioned a biography of Maulana Abul Kalam Azad. The author undertook the work, was paid for it, and delivered the manuscript. A dispute arose over who owned the copyright the Trust (the commissioner and funder) or the author.
The Delhi High Court held that copyright remained with the author. The Court confirmed the Indian legal position clearly: commissioning a work does not transfer copyright ownership to the commissioner. The payment of fees by the Trust for the creation of the biography did not divest the author of their statutory copyright. Without a valid written assignment, the author retained all rights.
The practical lesson: Every Indian business that commissions creative work a website, a logo, a product photograph, a software application, a marketing campaign, a corporate video must execute a Section 19-compliant assignment deed before the project begins, not after the invoice is paid. The assignment should identify the specific work, the rights being assigned, the territory, and the duration. A project fee paid without an accompanying assignment deed purchases the deliverable not the copyright in it.
The copyright registration connection: A copyright assignment deed can be submitted as part of a copyright registration application at copyright.gov.in. Registering the assignment creates a public record of ownership and significantly strengthens the commissioning business’s position in any subsequent dispute. See our companion guide on copyright assignment requirements: [INTERNAL LINK: Copyright Assignment and Licence in India Unimarks Legal Solutions]
Key Takeaway: Under Section 17 of the Copyright Act, 1957, a freelancer is the first copyright owner of their work regardless of who commissioned or paid for it. Transferring copyright requires a written Section 19-compliant assignment deed. Payment alone transfers nothing except possession of the deliverable. Copyright Registration Services Unimarks Legal Solutions
Scenario Two: The Employee Who Creates at Work
When does copyright in work created by an employee belong to the employer?
Section 17 of the Copyright Act, 1957 creates one significant exception to the author-as-first-owner default: where a work is made by the author in the course of their employment under a contract of service or apprenticeship, and the work was made in the course of that employment, the employer is the first owner of copyright in the work in the absence of any agreement to the contrary.
Three conditions must all be satisfied for employer ownership to arise:
First, there must be a contract of service an employment relationship, not a freelance or project-based engagement. A contract for services (a freelance or consultancy arrangement) does not trigger Section 17’s employer-ownership exception.
Second, the work must have been made in the course of employment meaning it falls within the scope of the employee’s job function. A graphic designer employed to create marketing materials produces work in the course of their employment when they design a campaign for their employer’s client. The same designer writing a novel in their personal time is not doing so in the course of their employment that copyright belongs to them personally.
Third, the work must be created within the employment relationship not before it began (as prior-created work does not vest in the employer) and not under a separate personal creative project.
Where all three conditions are met, no separate assignment deed is required. Copyright vests in the employer from the moment of creation by operation of law under Section 17.
What is the landmark Indian case on employee copyright?
Indian Performing Right Society Ltd. v. Eastern India Motion Picture Association (SC, 1977)
This Supreme Court decision is the foundational authority on copyright ownership in works created within an employment relationship specifically in the film industry context, but with principles that apply across all employment relationships.
The case addressed whether IPRS which collects royalties on behalf of composers and lyricists had the right to collect royalties for public performance of film songs. The central question was who owned the copyright in music and lyrics composed for films: the composers engaged by film producers, or the producers themselves as employers.
The Supreme Court held that where a composer is employed under a contract of service by a film producer, and the musical work is created in the course of that employment, copyright vests in the producer as employer under Section 17. The composer, as an employee engaged specifically to produce music for the film, does not retain copyright in the resulting work unless there is an agreement to the contrary.
The decision is significant for establishing that Section 17’s employer-ownership rule applies fully in creative industries film, publishing, advertising, software, and others and that the employer-employee relationship, properly established, eliminates the need for copyright assignment arrangements.
The practical lesson for employers: Confirm in every employment agreement that the role involves creating works, and include a clause confirming that all works created in the course of employment belong to the company. While Section 17 operates by law, an explicit contractual statement removes ambiguity about scope particularly for employees who work across both company-directed projects and personal creative activities.
The practical lesson for employees: Work created in the course of your employment on company time, using company resources, within your job function belongs to your employer from the moment of creation. Work you create on personal time, using personal resources, outside the scope of your employment function belongs to you. The boundary between the two is sometimes unclear and worth clarifying in your employment contract.
Key Takeaway: Under Section 17 of the Copyright Act, 1957, work created by an employee in the course of employment under a contract of service belongs to the employer automatically no assignment required. The same provision does not apply to freelancers or independent contractors. The legal distinction between an employee (contract of service) and a freelancer (contract for services) is the most commercially significant copyright boundary in Indian business practice.
Scenario Three: Joint Authors and Jointly Created Works
When two or more people create a work together, who owns the copyright?
Section 2(z) of the Copyright Act, 1957 defines a “work of joint authorship” as a work produced by the collaboration of two or more authors in which the contribution of one author is not distinct from the contribution of the other author or authors.
Two requirements must both be satisfied for a work to qualify as a joint work:
Collaboration with shared intent the authors must have worked together with the common intention that their contributions would be merged into a single unified whole. Two authors independently creating separate portions of a book that are later compiled is not joint authorship it is collective authorship with distinct contributions.
Indistinguishable contributions the contributions of the joint authors must be inseparable and indistinct in the final work. Where each author’s contribution can be clearly identified and separated such as different chapters in a compiled volume the work may not qualify as a joint work under Section 2(z).
Ownership in joint works: Where a work qualifies as a joint work, all joint authors are co-owners of the copyright. Each co-owner has the right to exercise the copyright, but revenues generated must be shared among all co-owners in proportion to their respective contributions unless a joint authorship agreement specifies otherwise. No single co-owner can grant an exclusive licence to a third party without the consent of the other co-owners.
What are the practical risks of undocumented joint authorship?
The risks arise when the collaboration ends. Without a documented joint authorship agreement:
Who controls decisions about publication, licensing, and adaptation? Either co-owner can theoretically exercise the copyright including granting non-exclusive licences to third parties without the other’s consent, even if this conflicts with the other’s wishes.
How is revenue divided? In the absence of agreement, revenue sharing defaults to equal division regardless of the relative sizes of each author’s contribution which frequently generates disputes.
Can one co-owner sell their share? Yes a co-owner of copyright can assign their share to a third party, potentially introducing an unknown and unwanted partner into the creative relationship.
Key Takeaway: Works produced by two or more collaborating authors are jointly owned under Section 2(z) of the Copyright Act, 1957. Every significant creative collaboration co-authored books, jointly developed software, co-written songs, co-produced content should be governed by a documented joint authorship agreement specifying contribution acknowledgment, ownership proportions, exploitation rights, revenue sharing, and exit arrangements.
The Practical Matrix: Who Owns What Under Indian Copyright Law
The following framework summarises the Section 17 ownership position across the three scenarios:
Commissioned work from a freelancer: Copyright belongs to the freelancer as default. To transfer it to the commissioning business, a Section 19-compliant written assignment deed is mandatory. Payment alone does not transfer copyright.
Work created by an employee in the course of employment: Copyright belongs to the employer automatically under Section 17 no assignment deed required. The work must fall within the employee’s job function and be created during the employment relationship.
Work created collaboratively by two or more authors: Copyright belongs to all joint authors as co-owners under Section 2(z). A joint authorship agreement is essential to govern exploitation, revenue sharing, and exit arrangements even between trusted collaborators.
Six Steps Every Indian Business Should Take Now
- Audit every creative supplier relationship identify every freelancer, agency, contractor, or consultant your business uses for creative output. Confirm whether a valid written assignment deed exists for each relationship. Where it does not, execute one.
- Draft Section 19-compliant assignment deeds before projects begin not after completion and payment. The assignment must identify the specific work, specify the rights assigned, state the territory and duration, and address royalty position.
- Review employment agreements for clarity on scope ensure employment contracts explicitly state that works created in the course of employment belong to the company, and define the scope of “course of employment” clearly to include any creative work produced using company resources or on company time.
- Establish joint authorship agreements for every collaboration whenever two or more creators are working together on a project where contributions will be merged, document the agreement before work begins. Cover contribution acknowledgments, ownership proportions, exploitation rights, and what happens if the collaboration ends.
- Register copyright in your most valuable works while registration is not mandatory for subsistence of copyright in India, it creates a public record, provides prima facie evidence of ownership in disputes, and significantly strengthens your position against infringement claims. Registration is done at copyright.gov.in using Form XIV.
- Cross-refer to the companion guide on transferring copyright understanding who owns copyright by default (this guide) is step one. Understanding how to properly transfer it the Section 19 assignment requirements, the Section 19A reversion right, and what Section 57 moral rights mean for every assignment you sign is step two. [INTERNAL LINK: Copyright Assignment and Licence in India: What Sections 18, 19 and 19A Actually Require Unimarks Legal Solutions]
Conclusion: Ownership Is Never Assumed It Is Either Statutory or Documented
The startup that lost control of its brand because a designer retained copyright did not make a legal error it made an assumption. Indian copyright law does not share that assumption. Section 17 of the Copyright Act, 1957 vests copyright in the creator, and moving it requires either the specific employment relationship it describes, or a written assignment that satisfies every requirement of Section 19.
For Indian businesses working with freelancers, the message is simple: commission the assignment alongside the work, before the project begins. For employees, understanding whether your creative output belongs to you or your employer depends on whether you are working within the scope of your employment function. For collaborators, documenting the joint authorship arrangement before contributions become inseparable is the only way to prevent disputes after the relationship ends.
At Unimarks Legal Solutions, we advise businesses, content creators, agencies, software companies, and publishers on copyright ownership structuring, assignment deed drafting, joint authorship agreements, employment IP clauses, and copyright registration. If you are uncertain about who owns the creative work your business depends on, contact our team for an assessment.
Protect what you have paid to create → Copyright Registration and Advisory Unimarks Legal Solutions
About the Author
Advocate Suresh Kumar has a law practice specialising in Intellectual Property Rights, Commercial legal advisory, debt recovery, commercial litigation, and dispute resolution for domestic and international clients. He is enrolled with the Bar Council of Tamil Nadu and Puducherry and represents clients before all courts and forums in Chennai, Tamil Nadu. This article reflects his understanding of the current legal position and is intended solely for informational purposes.
Disclaimer
This article is published by Unimarks Legal for informational purposes only. It is not intended to constitute legal advice or to create an attorney-client relationship. The contents are based on Indian law as applicable at the time of writing and are subject to change. Readers should not act upon the information in this article without seeking independent legal counsel. Every legal situation is unique, and the application of law depends on specific facts and circumstances. Past results do not guarantee future outcomes. This publication is made in compliance with the Bar Council of India Rules, which prohibit advertising or solicitation by advocates. Any information received through this article should not be construed as legal advice.
For specific legal guidance on your matter, you may consult a qualified advocate in your jurisdiction.
