Q: My question pertains to derivative works in an artwork for a licensing agreement.

A: Funny thing, an old head in this copyright game shared with me some licenses that he drafted decades ago. One of them was for a wall paper company to use with independent artists. I would have to look at your particular license in detail to answer your question.

A: The changes you've described - removing the colored background from one artwork and changing the color of the lines in another - would generally be considered derivative works under copyright law.

A derivative work is a new creative work that includes aspects of a preexisting, copyrighted work. The right to prepare derivative works is one of the exclusive rights granted to copyright holders. Common examples of derivative works include translations, musical arrangements, dramatizations, fictionalizations, art reproductions, and condensations of preexisting works.

When a derivative work is created, the copyright in the derivative work covers only the new material that has been added to the preexisting work. The copyright in the preexisting work remains with the original copyright owner.

So in your case, if you grant the wallpaper company a license to create these derivative works, you would still retain the copyright in your original artwork. The wallpaper company would hold the copyright in the new elements they add (i.e., the modified background and line colors), but not in your underlying artwork.

The extent of your rights in the derivative works would depend on the specifics of your licensing agreement. If the agreement grants the company the right to register copyrights in the derivative works, then they would be the copyright owner of those derivative works, subject to your underlying rights in the original artwork.

It's important that your licensing agreement clearly defines the scope of the rights you're granting, including any rights to create and exploit derivative works, while also preserving your ownership of the copyright in your original artwork. You may want to consult with an intellectual property attorney to ensure the agreement adequately protects your rights as the original artist.