Music-industry contracts — publishing, recording and synchronization deals — rest on one and the same legal machinery: copyright is transferred by law, by will, or by contract. The Georgian copyright law regulates the grounds of that transfer, its form and the consequences of breach in general terms, and these provisions underlie every music deal. This page explains the machinery on the basis of articles thirty-five, thirty-six, forty-two and forty-four of the law.
The Grounds of Transfer
Under article thirty-five, copyright is transferred by law or by will through inheritance, or by contract. By law, the exclusive rights of use of a work pass to heirs within the term of validity of the copyright, unless the will provides otherwise. After a musician's death the property rights continue in this way, and a label or publisher may acquire them from the heirs by contract.
The personal rights of authorship, of the name and of the integrity of the work are not transferred by inheritance: heirs have the right to defend them, and this authority is not limited in time. An author may, during their lifetime, designate a person to defend those rights until the author's death. Where heirs do not exist or defend the personal rights improperly, their protection is pursued by the National Intellectual Property Center, Sakpatent. Unless the author determined otherwise, only the right to allow others to add an illustration, foreword, afterword, commentary or explanation to the work passes by inheritance.
Transfer of Property Rights by Contract
Article thirty-six is brief but decisive: an author or other holder of copyright may transfer all property rights, or a part of them, to a successor. This means that a musician may transfer either the whole bundle of property rights or only a component — for example, only the rights of reproduction and distribution, keeping the public-performance right. Which part is transferred is a matter of the contract's content.
The Fate of Personal Rights After the Author's Death
A musician's name and the integrity of the work do not disappear at death. Heirs have the right to defend the rights of authorship, of the name and of the integrity of the work, and this authority is not limited in time — they may exercise it whenever, for instance, a song is distorted or authorship is denied. The author may personally designate, during their lifetime, a person to defend those rights until the author's death. Where heirs do not exist or defend these rights improperly, protection is pursued by the National Intellectual Property Center, Sakpatent — so the protection of personal rights is secured even where the author has no family.
The Written Form
Article forty-two requires that a contract on the transfer of copyright, a contract on the creation of a work and a licence contract be concluded in writing. A single exception exists: a licence contract on the use of a work in periodical print editions may be concluded orally. Every significant transaction of the music industry — recording, publishing, synchronization — thus requires written form under this rule.
Consequences of Breach
Article forty-four provides that a party that has not performed or has improperly performed an obligation under a contract of transfer of property rights, creation of a work or a licence must compensate the other party for the damage caused, including lost profits. Where an honourarium goes unpaid or broadly transferred rights are violated, the musician may claim full compensation — including the revenue proper performance would have generated.
Frequently Asked Questions
Questions about music deals most often concern the grounds of transfer, the form and the consequences of breach.
How may copyright be transferred?
By law, by will through inheritance, or by contract; in the industry the principal route is the contract.
May only part of the property rights be transferred?
Yes — an author may transfer to a successor all property rights or a part of them; the part not covered by the contract remains with the author.
Is written form mandatory?
Yes, for transfer, creation and licence contracts; oral form is allowed only for the use of works in periodical print editions.
What happens if the honourarium is not paid?
The breaching party compensates the damage including lost profits — the revenues that proper performance would have brought.
A particular attention belongs to licence deals: the transfer-of-rights, work-creation and licence agreements must be concluded in writing, with a single exception — a licence agreement on the use of a work in periodical print publications may be concluded orally. In the music industry this means that publishing, recording and synchronisation deals must always be documented in writing. The transfer of property rights may be complete or partial: an author or other holder of copyright may transfer all property rights or a part of them to the successor.
What happens on breach of a contractual obligation?
A party that failed to perform or improperly performed an obligation under a transfer-of-rights, work-creation or licence agreement must compensate the other party for the damage caused, including lost income.
How We Help on Legal.ge
The Legal.ge team works with musicians, labels, publishers and producers: we prepare rights-transfer and licensing contracts, structure honourariums and safeguard the integrity of personal rights.
If you are concluding a music deal or have a dispute over rights, write to us on Legal.ge — we will assess the terms and defend you on a legal footing.