Asked in Copyright, Intellectual Property and Gaming

Q: Am I responsible for copyright infringement if i have writen permission from someone but they lied about owning it?

I would like to know If i put my game in a kickstarter and a reward tier says i can put a backers character in the videogame and but they sign a waiver to say that they own the rights to their character and give me permission to use it and that if its not theirs they will be held responsible and have to cover any damages in fines and fees etc. would i be held responsible for copyright infringement, would i be able to get away free by removing the character, would they be responsible for the character, could the law suit move from me to them????

2 Lawyer Answers
Bao Tran
PREMIUM
Answered

A: Legal Responsibility for Copyright Infringement with Written Permission

If you receive written permission from someone to use a character they claim to own, but it turns out they lied about owning the rights, you could still face legal issues. Here’s a detailed analysis:

Copyright Infringement Liability

Primary Liability: As the creator and distributor of the game, you would be primarily responsible for any copyright infringement. Even if you have a waiver or written permission from the backer, this does not absolve you from liability if the character is not actually owned by them.

Good Faith Defense: While having a waiver may demonstrate that you acted in good faith, it does not provide a complete defense against copyright infringement claims. The copyright holder could still pursue legal action against you.

Shifting Responsibility

Indemnification Clauses: Including an indemnification clause in your waiver can help shift some of the financial responsibility to the backer who provided the false information. This clause would state that the backer agrees to cover any damages, fines, and legal fees if it turns out they did not own the rights to the character.

Enforcement Challenges: Even with an indemnification clause, enforcing it can be challenging. You would need to pursue legal action against the backer to recover any damages or costs, which can be time-consuming and expensive.

Removing Infringing Content

Mitigation: If you discover that a character infringes on someone else’s copyright, promptly removing the character from your game can help mitigate damages. However, this action does not necessarily eliminate liability for past infringement.

Cease and Desist: If you receive a cease and desist letter from the actual copyright holder, complying with their demands (such as removing the character) can help reduce the risk of further legal action.

Legal Recourse

Due Diligence: To minimize risk, conduct due diligence before including any user-submitted characters in your game. Verify ownership to the extent possible, especially if the character is based on well-known intellectual property.

Legal Consultation: Consulting with an intellectual property attorney can provide guidance on how to structure your waivers and agreements to better protect yourself from liability.

Conclusion

While a waiver and indemnification clause can help shift some responsibility to the backer who provided false information, you would still be primarily liable for any copyright infringement. Removing the infringing character promptly can help mitigate damages, but it does not eliminate liability for past infringement. Conducting due diligence and consulting with an IP attorney are essential steps to protect yourself legally.

James L. Arrasmith
PREMIUM
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Answered

A: If you include a backer's character in your game based on their signed waiver claiming ownership, you might still face legal issues if they lied about owning the rights. The waiver can help protect you, but it doesn't completely absolve you of responsibility. Infringement liability could still fall on you because you are the one using the content in your game.

If a copyright owner discovers their character is used without permission, they could pursue legal action against you. You could potentially mitigate the situation by quickly removing the character from the game, but this might not completely free you from liability. The original creator might still claim damages for the time the character was used.

The waiver you have can be used to shift some responsibility to the backer who lied, potentially making them liable for any damages. However, this doesn't guarantee that you won't be involved in legal proceedings. It's important to have legal safeguards and consider consulting with an attorney to better protect yourself in such situations.

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