Learn about copyrights with Gully Boy
Case breakdown: Movie Gully Boy
The scene that you just saw shows Sky (played by Kalki) who is a music programmer. She intends to produce a track along with Murad and Sher. She wants to collaborate with both of them wherein they can write and perform the song. While she can produce and program the track. She mentions they can have equal copyright.
In this blog, Learning Perspectives will explore the meaning of copyright.
What is Copyright?
Copyright is the legal right of the owner. Original producers of the content have the right to copy. Hence, when an individual owns the copyright and if someone wants to use their content (intellectual property rights) then they have to purchase before using them.
When original work is created, copyrights help the creator to protect it from unauthorized use. It helps the author safeguard their rights.
Copyright exists throughout India in the following classes of works:
- Original literary, dramatic, musical, and artistic works;
- Cinematograph films; and
- Sound recordings.
In the case of literary work,
copyright means the exclusive right
- To reproduce the work
- To issue copies of the work to the public
- To perform the work in public
- To communicate the work to the public.
- To make cinematograph film or sound recording in respect of the work
- To make any translation of the work
- To make any adaptation of the work.
Treatment of Copyrights in Accounts
Copyrights, patents, and trademarks in accounts are considered intangible assets. Intangible assets are those assets that cannot be touched. For example, Marvel, and DC. These Companies have a high value of intangible assets on their balance sheet. These comprise copyrights of various characters such as Batman, Wonder woman, Spiderman, etc.
Tangible assets are expensed through depreciation while Intangible assets are expensed through amortization. Amortization is generally done on the straight-line method and there is no salvage value associated with it. So for example, if a company has a copyright of the Batman character for $10,000 and the company thinks that they can sell this character for the next 10 years. It would amortize the copyright as 10,000/10= $1,000. The journal entry would look like this:
Amortization expense dr. $1,000
To Copyright $1,000