What an Intellectual Property Audit Checks
An intellectual property audit and assessment means the systematic verification of the legal bases on which a given right rests: who holds the right, in what documentary form the right is transferred, how ownership is proven and for how long it lasts. Georgian legislation does not provide a separate, special statute on an "intellectual property audit" — the legal framework of the audit begins with the norms of the Georgian Law on Copyright and Neighbouring Rights. Below are the four blocks that constitute the foundation of every copyright audit.
This guide is intended both for individuals taking inventory of their creative assets and for companies verifying the chain of rights before a transaction.
Bases of Transfer and Inheritance
Under Article 35 of the Law, copyright is transferred by operation of law, by testament in the order of inheritance, or by contract. By operation of law, the exclusive rights of use of the work pass to the heirs within the term of copyright, unless the testament provides otherwise. The rights of authorship, of the name and of the inviolability of the work are not transferred by inheritance — the heirs have only the capacity to protect these personal rights, and that capacity is not limited in time. For an audit this defines a boundary: pecuniary and personal rights follow different regimes. The author may also designate a person to protect these rights, who performs the duty until the author's death; and where heirs do not exist or exercise protection inadequately, protection is carried out by the National Intellectual Property Centre Sakpatenti.
The Form of the Contract
Article 42 of the Law strictly defines the form: a contract on the transfer of copyrights, a contract on the creation of a work and a licence contract must be concluded in writing. There is a single exception: a licence contract on the use of a work in periodical print publications may be concluded orally. In audit practice this means that every non-written transfer, apart from a licence contract connected with a periodical publication, is recorded as a formal defect and must be cured before the transaction is closed.
Deposition — Proving Ownership
Article 9-1 of the Law regulates the deposition of works: the author or other holder of copyright has the right to deposit the original or a copy of the work with the National Intellectual Property Centre Sakpatenti. The person indicated in the certificate confirming deposition is considered the author of the work or the holder of copyright, unless a contrary justification exists. When depositing, the applicant must respect the copyright and other rights of other persons connected with the submitted work, and the applicant is responsible for the accuracy and reliability of the documentation submitted. If the work is submitted by the author's heir, successor or another holder, the application must be accompanied by a document confirming inheritance, succession or the holding of copyright; on deposition through a representative, a document confirming representation is attached. Information connected with the deposited work may become public at the request of the author or holder, and a fee is paid for deposition, determined by a decree of the Government of Georgia. In an audit, the deposition certificate is evidentiary proof of ownership, which may, however, be overridden by contrary justification.
Terms of Protection — the Quantitative Parameter of Valuation
Article 32 of the Law determines the terms of copyright, which are decisive in valuing an asset: for a work lawfully published or lawfully made public under a pseudonym or anonymously, the right lasts 70 years from the date that fact was lawfully established; for a work created in co-authorship — during the lifetime of each co-author and 70 years after the death of the last co-author; for works published in volumes, parts or episodes, the term is calculated for each such work; for an audiovisual work and a textual musical work — 70 years after the death of the last of the authors. The pecuniary copyright of the person who lawfully published a work not published before lasts 25 years from the date that fact was established. In an audit it is precisely the calculation of these terms that determines which asset still offers licensing or alienation potential and which has already passed into the public domain.
Frequently Asked Questions
Below we answer the questions most frequently asked on this topic.
Is there a separate statute on intellectual property audits?
No. The audit is built on the general norms of the copyright law — the bases of transfer, form, deposition and terms.
Does deposition automatically establish the right?
The person indicated in the deposition certificate is considered the author or holder unless a contrary justification exists — an evidentiary rule that can be overridden by contrary proof.
Must every contract be in written form?
Contracts on the transfer of copyright, on the creation of a work and licence contracts — yes; the exception is a licence for use in periodical print publications, which may be concluded orally.
For how long does copyright last?
The principal term is 70 years — after the death of the last author in co-authorship, or from lawful publication for pseudonymous or anonymous works; the first publisher's right lasts 25 years.
How We Help on Legal.ge
An intellectual property audit requires precise verification of the form of contracts, the chain of succession and the terms. On Legal.ge you can consult an advocate experienced in intellectual property who will carry out a legal assessment of your assets, identify defects and give you recommendations on consolidating your rights. Submit a request on the site and get qualified assistance.