Exploitation and usage rights in copyright law

Copyright law distinguishes between exploitation rights and rights of use. An overview of what you need to know about this.

Updated on August 20, 2026: The following have been added: the principle of transfer of purpose, the author’s remuneration claims—including the annual obligation to provide information introduced in 2021—the right to alternative exploitation after ten years, and the legal status of employees and independent contractors.

The author has a number of exclusive rights, which are governed by copyright law in Sections 12–27 of the German Copyright Act (UrhG). These include, on the one hand, the so-called moral rights of the author, which are governed by Sections 12–14 of the UrhG. On the other hand, the author alone is entitled to the (economic) exploitation rights to his or her work. In order for third parties to use a work, they must generally acquire a right of use from the author. This is done through so-called licenses.

The fact that both moral rights and exploitation rights are usually non-transferable serves to protect the author. It is intended to ensure that the author receives remuneration for the use of their work. Rights are only transferred to the author’s legal successor in the event of death.

What copyright exploitation rights are there?

Section 15 of the Copyright Act distinguishes between so-called tangible and intangible exploitation rights. However, this is mainly for historical reasons and is not relevant in practice.

The physical exploitation rights are e.g:

  • the reproduction right, § 16 UrhG
  • the distribution right, § 17 UrhG
  • and the exhibition right, § 18 UrhG

The non-physical exploitation rights are summarized under the collective term “right of communication to the public”. This includes significantly more rights, e.g:

  • the right of presentation, performance and performance rights, § 19 UrhG
  • the right to make available to the public, § 19a UrhG
  • the broadcasting right, § 20 UrhG
  • the right of reproduction by means of image or sound carriers, § 21 UrhG
  • and the right of reproduction of radio broadcasts and of making available to the public, Section 22 UrhG

However, this enumeration of the law is to be regarded as exemplary. This is because Section 15 assigns all exploitation rights to the author, including those that are not explicitly listed. In particular, this also includes the so-called innominate cases, i.e. previously completely unknown exploitation rights. This is intended to take account of rapid technological progress and ensure that the author can (economically) participate in all uses of his work.

How are rights of use transferred under copyright law?

For most authors, the transfer of rights of use for the commercial exploitation of the work is part of everyday practice. This is because hardly any authors can or want to fully exploit their exploitation rights themselves. Rights of use are transferred by means of so-called licenses. The basis is therefore a licensing agreement. The Copyright Act also contains some special provisions on the granting of rights, which can be found in Sections 31 – 44 UrhG.

In § 31 para. 1 UrhG contains the principle that and how a right of use can be granted:

“The author may grant another person the right to use the work in any or all ways (right of use). The right of use may be granted as a simple or exclusive right and may be limited in terms of territory, time or content.”

§ Section 31a also stipulates that an author can also grant rights in advance for as yet unknown types of use (the innominate cases mentioned above). However, such licenses are subject to special requirements, such as the written form that is usually required.

What restrictions are possible for the transfer of copyright usage rights?

It follows from Section 31(1) of the German Copyright Act (UrhG) that the author may license the rights of use not only collectively, but also individually and in various limited ways. In this regard, a distinction must be made between various cases and possibilities:

  • Simple and exclusive right
  • spatial restriction
  • Time limit
  • Content restriction

The difference between a non-exclusive right of use and an exclusive right of use is clarified in § 31, paragraphs 2 and 3, of the German Copyright Act (UrhG): A person granted a non-exclusive right of use may not exclude others from similar uses. By contrast, anyone who holds an exclusive right of use may typically exercise that right alone and may also transfer this right of use to others (sublicense it). In doing so, it may—but is not required to—be agreed that the author is not excluded from using the work and may continue to use it himself or herself.

The Principle of Transfer of Purpose: In Case of Doubt, the Right Remains with the Author

The most important rule in practice is set forth in Section 31(5) of the German Copyright Act (UrhG): If the types of use are not expressly specified individually in the contract, the scope of the rights is determined by the purpose that both parties intended to achieve through the contract. In case of doubt, the right therefore remains with the author. Thus, someone who commissions a photo for a brochure does not automatically acquire the right to use it later on posters, on social media, or in a campaign abroad.

In practice, this leads to a simple conclusion: The contract should specify every type of use that is actually required, including the territory, duration, and whether sublicensing and modification are permitted. A phrase such as “all rights” is of no help here, because that is precisely when the rule of interpretation applies.

What Remuneration the Author May Demand

Anyone who grants rights of use is entitled to reasonable compensation, § 32 UrhG. If the agreed compensation is unreasonable, the author may demand that the contract be amended; the contracting party may not invoke any deviating agreement. If it later turns out that the proceeds are conspicuously disproportionate to the compensation, the fairness adjustment provision of Section 32a of the German Copyright Act (UrhG)—colloquially known as the “bestseller clause”—also applies.

To make this assessable at all, the legislature tightened the obligation to provide information in 2021: The contracting party must provide the author with information at least once a year regarding the scope of use and the income and benefits derived therefrom, § 32d UrhG. This obligation exists automatically and does not need to be asserted; as of 2023, it also applies to contracts concluded before June 2021.

Back to the Author: Ten Years, Revocation, and Time Limits

An exclusive right of use does not bind the author indefinitely. If it was granted in exchange for a lump-sum payment, the author may exploit the work in other ways after ten years; the original owner’s right continues for the remainder of the term as a non-exclusive right of use, § 40a UrhG. In addition, there is the right of revocation due to non-exercise, § 41 UrhG: Anyone who acquires an exclusive right and does not exercise it, or exercises it only insufficiently, may lose it after a deadline has been set.

Both illustrate the fundamental principle of the law: Copyright itself is not transferable among living persons, § 29(1) UrhG. Only rights of use are granted, and these remain tied to the purpose, to appropriate compensation, and to actual exploitation.

Special Case: Employees and Independent Contractors

The author is always the person who created the work, not the company that paid for it. In the case of employees, Section 43 of the German Copyright Act (UrhG) grants the employer certain rights to the extent that these arise from the content or nature of the employment relationship, which regularly leads to disputes over the scope of these rights as soon as the work is to be used for purposes other than its original intent.

For independent contractors—such as agencies, photographers, developers, or copywriters—this default rule does not apply. Without an explicit grant of rights, the client receives only what is required for the purpose of the contract. Anyone who wishes to use the results on a permanent basis and beyond the original purpose therefore needs a written agreement—and it must be in place before the project begins, because the negotiating position deteriorates significantly afterward.

Frequently Asked Questions About Usage Rights

Can I sell my copyright?

No. Copyright is not transferable inter vivos, § 29(1) UrhG; it is transferred only upon death. Only rights of use may be granted—either non-exclusive or exclusive—and such rights may be limited in terms of territory, duration, and content.

What is the difference between a simple right of use and an exclusive right of use?

A simple right of use permits use but does not exclude anyone: The author may grant the same right to other persons. An exclusive right entitles the holder alone and may generally be sublicensed, § 31(2) and (3) of the German Copyright Act (UrhG).

The contract doesn’t mention anything about usage rights. What applies in that case?

In that case, the principle of purpose-limited transfer applies, pursuant to § 31(5) of the Copyright Act (UrhG): Only those rights necessary to fulfill the purpose of the contract are granted. In case of doubt, the rights remain with the author, and any use beyond that constitutes an infringement.

Does the rights holder have to tell me how much they earn from my work?

Yes. Since the 2021 reform, there has been a legal obligation to provide information at least once a year regarding the extent of use, as well as revenues and benefits, pursuant to Section 32d of the Copyright Act (UrhG). This obligation is established by law and, as of 2023, also applies to older contracts.

Can I terminate an exclusive right of use?

In the case of lump-sum compensation after ten years, Section 40a of the German Copyright Act (UrhG): Under this provision, the author may exploit the work in other ways, while the original right continues to exist as a simple right of use. Regardless of this, revocation due to non-exercise of the right may be considered, Section 41 of the German Copyright Act (UrhG).

Do the rights to work products automatically belong to the company?

For employees, this applies only to the extent provided for in the employment relationship, § 43 UrhG. This does not apply to independent contractors: In such cases, the contract alone governs, and in the absence of specific provisions, the grant of rights extends only as far as the purpose of the contract.

9625501e8ca94d98bcb512b497f2d4c8 Rights of Use and Copyright

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