WORK FOR HIRE IN MEXICO

By: Ricardo Gomez Hernandez

A work for hire can be defined as a work that is not the product of the author's initiative nor derives from an idea of his own, but is developed by the latter as a result of a specific and remunerated commission requested by a third party ("client") 1. In other words, this type of work originates from the intellect of the person who commissions it, but is materialized by a different author.

This type of work becomes relevant because, based on the remunerated commission made by the client, the latter obtains the ownership of the rights of economic exploitation of the work, as well as the rights of disclosure, integrity and collection.2, which correspond to the category of moral rights. On the other hand, the author retains the right to be recognized as the creator of the work. This is based on the fact that, even when the concept and guidelines of the work are provided by the client, the ideas themselves are not subject to protection. 3 under the Mexican Federal Copyright Law, but are protected until they are embodied in a material support. 4.

Properly documenting the commission of a work is especially important for the parties. Pursuant to Article 83 bis of the Mexican Federal Copyright Law, in the event of any doubt as to the terms of the work for hire contract, the interpretation most favorable to the author 5, shall prevail; however , the damages are equally applicable to both parties.


For the client, the failure to clearly state the terms of the work for hire may result in the loss of the rights of economic exploitation of the work, which is why it must at least expressly include that:

(i) It will be entitled to the economic rights of the work;

(ii) It provided the characteristics of the work to the material author;

(iii) The commission was remunerated, and;

(iv) The powers of disclosure, integrity and collection shall correspond to him/her. It must also avoid clauses that may be interpreted as a different legal concept, such as the assignment of rights or license of use, since in these cases the material author retains the economic rights of the work.

For the author, it will be essential to verify if he/she is really facing the figure of work for hire before signing and accepting any contract. Among other issues, he/she must confirm:

a. If indeed the client provided him/her with an instruction with the characteristics of the work, and;

b. If the remuneration coincides with the nature of the work.

In the event that the work had already been created prior to the execution of the contract, or that it was created by the author's own creativity, it is very likely that the applicable figure would be that of a license, or an assignment of rights, which by operation of law is temporary and remunerated . 6.


6 Article 30, second paragraph of the Mexican Federal Copyright Law

5 Article 83 bis, second paragraph of the Mexican Federal Copyright Law


2 Article 83 of the Mexican Federal Copyright Law

3 Article 14, section I of the Mexican Federal Copyright Law

4 Article 5 of the Mexican Federal Copyright Law


1 Judicial precedent number 2016237 under the heading “DERECHO DE AUTOR. LOS ARTÍCULOS 80, PRIMER PÁRRAFO Y 83 DE LA LEY FEDERAL RELATIVA NO SON NORMAS ESPECIALES EXCLUYENTES, SINO CONVERGENTES, TRATÁNDOSE DE UNA OBRA POR ENCARGO DESARROLLADA EN COAUTORÍA, CUANDO EL COMITENTE PARTICIPE TAMBIÉN EN SU CREACIÓN Y SE TRATE DE UNA COLABORACIÓN PERFECTA”.

Restructuring

Müggenburg, Gorches and Peñalosa's restructuring practice includes representation of corporate debtors, hedge funds, in various industries, etc., in restructuring proceedings and bankruptcy equivalents (insolvency proceedings).

Mergers & Acquisitions

We provide services in acquisitions, sales, mergers, spin-offs, reorganizations and co-investments, representing national and foreign clients operating in various industrial and commercial sectors.

Corporate /Transactional

At Müggenburg, Gorches y Peñalosa we provide legal services in all aspects of corporate law practice. Our group of professionals in this area has years of experience providing services to both national and international clients, with the most diverse needs and the highest standards of demand and sophistication in the service. Among our clientele are leading companies in their sectors worldwide, such as automotive, cosmetics, hotels and tourism, food industry, aeronautical industry, computer programs and systems, suppliers of the oil industry, technology, among others.

We advise our clients on the constitution of Mexican companies (commercial and civil) and associations, attending to the needs derived from the industry and/or commerce segment in which they focus their activities and their medium and long-term plans, also providing services for compliance with the regulatory requirements that may apply, including those derived from direct foreign investment, economic competition and obtaining the necessary licenses and permits for its operation. Our services also extend to the provision of corporate services within the ordinary course of business of our clients, including advice on the preparation, review and negotiation of all types of civil and commercial contracts, and the custody, updating and maintenance of corporate books. . We also provide services related to the opening and management of branches in Mexico of foreign companies.

We represent national and foreign corporate and/or investment groups in the acquisition of, and/or merger with, Mexican business entities, and on other occasions we also represent acquired Mexican entities. In both cases, we provide legal audit services to foresee possible contingencies of the operation, locate areas of opportunity and help determine the value of the company to be acquired. Likewise, in representing the acquirer, we prepare the legal documentation of the operation (specifically contracts for the sale of shares and/or association, with all its annexes and accessory contracts), and we carry out their negotiation with the counterparty. Likewise, in these cases we participate directly in the processing and obtaining of any authorizations, permits, licenses and concession titles required for the operation of our clients, and we advise on notices and notifications to government entities, including notifications of resolutions and opinions of the Federal Economic Competition Commission.

We provide advisory services for corporate restructuring and reorganization, also including international corporate groups with a presence in Mexico. In these cases we have worked in coordination with groups of financial and accounting advisors both from Mexico and abroad, and we have coordinated legal audits of subsidiaries of entities acquired in several Latin American countries (Argentina, Brazil, Chile, Colombia and Peru, among others, with local legal advisers in each case).

We advise on operations of association in participation, "joint-ventures", preparation and negotiation of agreements between shareholders, merger and spin-off of legal entities, establishment of trusts of any type, constitution of guarantees on any type of property, repurchase of shares by of companies listed on the Mexican Stock Exchange, as well as in the structure of purchase option plans and other types of specialized corporate operations.

We also provide services for the development of mechanisms that allow the efficient and effective anticipation and management of potential conflicts between shareholders; in this regard, we have represented groups of shareholders of Mexican companies in the implementation of corporate actions to defend their interests against the rest of the shareholders and the Company itself on internal corporate control issues, generally in coordination with litigation areas in matters commercial and civil.

Depending on each particular project or operation, we rely on other specialty areas of the Firm, in order to provide comprehensive services, under the highest standards of quality and efficiency.

Mergers & Acquisitions

We provide services in acquisitions, sales, mergers, spin-offs, reorganizations and co-investments, representing national and foreign clients operating in various industrial and commercial sectors.

Restructuring (Corporate and Financial)

Müggenburg, Gorches and Peñalosa's restructuring practice includes representation of corporate debtors, hedge funds, in various industries, etc., in restructuring proceedings and bankruptcy equivalents (insolvency proceedings).