Licensing and Copyright Contracts

Licensing in Germany · Urhebervertragsrecht

Licensing in Germany works differently from many common law jurisdictions. Copyright itself cannot be assigned, licences are interpreted narrowly according to their purpose, and authors and performers have mandatory claims to fair remuneration. As German copyright lawyers we draft, review and negotiate licence agreements so that they are effective under German copyright law and fit into international deal structures.

Key principles of German copyright contract law

• No assignment of copyright. During the author’s lifetime copyright cannot be transferred (Section 29 UrhG). The author grants rights of use, exclusive or non-exclusive, limited or unlimited in territory, time and content (Section 31).
• Purpose-of-transfer rule. If the types of use are not expressly specified, the licence extends only to the uses required by the purpose of the contract (Section 31(5)). Generic “all rights” clauses often fall short.
• Unknown types of use. Rights for types of use not yet known at the time of contracting require written form; the author may revoke the grant under certain conditions and is entitled to separate remuneration (Sections 31a, 32c).
• Equitable remuneration. Authors and performers are entitled to equitable remuneration (Section 32) and to additional remuneration if their fee turns out to be conspicuously disproportionate to the exploiter’s proceeds (Section 32a). Joint remuneration rules agreed by associations serve as a benchmark.
• Information and accounting. Since 2021, contractual partners must inform authors annually about the scope of use and the proceeds (Sections 32d, 32e).
• Reversion of rights. Exclusive rights may revert in case of non-use (Section 41); after ten years authors of lump-sum buy-outs may exploit the work elsewhere in certain cases (Section 40a).
• Mandatory application. Many of these rules apply even if the contract is governed by foreign law, where German exploitation is concerned (Section 32b).

Agreements we draft and negotiate

We also handle content and data licences, agency and creative services agreements, merchandising, employment and freelance contracts with IP clauses, and licences for training data used for AI.

Licensing in Germany for foreign companies

International companies often use contract templates designed for US or UK law. In Germany such templates can fail at decisive points: a “work made for hire” clause does not make the client the author, a waiver of moral rights is only effective within narrow limits, and a flat buy-out does not exclude later claims for additional remuneration. We adapt your templates to German copyright law, draft bilingual contracts where helpful and advise on choice of law, jurisdiction and arbitration clauses. More on cross-border structures: International.

Collecting societies

Some rights in Germany are administered collectively by GEMA (music authors and publishers), GVL (performers and producers), VG Wort (text), VG Bild-Kunst (visual art, photography, film) and other societies. Licence agreements need to take these mandates into account. We advise rights holders and users on membership, tariffs and disputes under the Collecting Societies Act (VGG).

Frequently asked questions

Deutsche Fassung: Urhebervertragsrecht