Learn how the HR department can minimise the risk of legal liability for copyright infringement by employees. Discover the key steps for preventing copyright violations, including developing clear policies, providing training, implementing software asset management procedures, and conducting regular audits. Protect your company’s reputation and avoid costly legal disputes.
Introduction
We have recently seen a case where a company was held liable for copyright infringement because one of its employees had installed unlicensed software on a company computer. This case serves as a reminder that companies are responsible for ensuring that their employees comply with copyright laws and that using unlicensed software can result in severe legal consequences.
The Facts of the Case
The case involved a small company that had hired a graphic designer to create some marketing materials. The graphic designer used Adobe software to create the materials, but he did not have a valid license to use the software. The graphic designer installed the software on a company computer without the company’s knowledge or permission and used it to create the materials.
The software vendor discovered the unauthorised use of its software and sued the company for copyright infringement. The company argued that it had no knowledge of the unauthorised use of the software and that it had not benefited from it. However, the court found that the company had a duty to prevent copyright infringement by its employees and that it had failed to fulfill that duty.
The Legal Basis for Liability
Copyright law gives the owner of a copyright the exclusive right to reproduce, distribute, and display the copyrighted work. Using a copyrighted work without permission or a valid license is a violation of the owner’s rights and can result in legal liability for the user.
In this case, the company was held liable for the copyright infringement committed by its employee because the employee was acting within the scope of his employment when he installed the unlicensed software and used it to create the marketing materials. The court found that the company had a duty to prevent copyright infringement by its employees and that it had failed to fulfill that duty by not having adequate policies and procedures in place to prevent the use of unlicensed software.
Preventing Copyright Infringement
Companies can take several steps to prevent copyright infringement by their employees, including:
- Ensuring that all employees are aware of copyright laws and the company’s policies regarding the use of copyrighted materials;
- Implementing software asset management procedures to ensure that all software used by the company is properly licensed;
- Conducting regular audits to verify compliance with copyright laws and the company’s policies;
- Including copyright compliance provisions in employment contracts and non-disclosure agreements;
- Providing training to employees on the proper use of copyrighted materials.
What should the HR department do?
The HR department of a company has an important role to play in preventing copyright infringement by employees. HR can take the following steps to minimize the risk of legal liability for copyright infringement:
- Develop and communicate a clear policy on the use of copyrighted materials, including software. The policy should explain the company’s expectations for employees’ behavior and the consequences of violating the policy.
- Include provisions regarding copyright compliance in employment contracts and non-disclosure agreements. This can help to make employees aware of the importance of compliance and underscore the company’s expectations.
- Provide training to employees on the proper use of copyrighted materials. This training should cover the importance of compliance, the risks associated with non-compliance, and how to recognize and report potential violations.
- Implement software asset management procedures to ensure that all software used by the company is properly licensed. This can help to prevent employees from using unlicensed software and to demonstrate to software vendors that the company is committed to compliance.
- Conduct regular audits to verify compliance with copyright laws and the company’s policies. These audits can help to identify potential issues before they escalate into legal disputes and to demonstrate to stakeholders that the company takes copyright compliance seriously.
By taking these steps, the HR department can help to minimise the risk of legal liability for copyright infringement and to protect the company’s reputation in the marketplace.
Conclusion
This case serves as a reminder that companies are responsible for ensuring that their employees comply with copyright laws and that using unlicensed software can result in severe legal consequences. Companies should take proactive steps to prevent copyright infringement by their employees, including implementing policies and procedures, conducting audits, and providing training. By doing so, companies can avoid costly legal disputes and protect their reputation in the marketplace.
