Warranties and indemnities

What a warranty is, and how it works

A warranty is a legally binding guarantee that a particular statement is true and can be relied on.

In relation to copyright, a warranty is a written guarantee that a person or organisation owns the copyright and so can legally allow use of a work.

It’s usually found in a contract or in the terms of a licence agreement, but can be generally implied.

If you want to license an artwork you can expect a warranty from the copyright owner stating they own the copyright, and so are legally entitled to grant a licence.

Collecting societies who license artworks, like us, often require a warranty from copyright owners before representing them.

Copyright warranty breaches

The copyright warranty is breached if the copyright is owned by someone else – not the person or organisation who has stated they are the copyright holder.

If this happens, the person who was given the warranty may be able to claim for losses that are a direct result of that warranty breach.

Losses covered

It’s not always clear which losses can be recovered under a warranty. Some licensees or collecting societies make it clear by asking for a wider contractual ‘indemnity’.

An indemnity is legal protection against loss. A licensing agreement indemnity would specify all the losses the other person or organisation will need to pay for, if the warranty is breached.

Limited liability

Collecting societies like DACS license multiple works, and rely on the warranties provided to them by copyright owners.

In some circumstances, they cap the costs they may be asked to pay as a result of a breach of warranty. This limits how much they have to pay out, and is known as a ‘limitation of liability’.

More information

Other intellectual property (IP) rights
Moral rights
The publication right
Earn through licensing your work
Request to license an artwork
Copyright infringement
Copyright and commission agreements