Copyright ruled to be relationship property by Supreme Court…

The Supreme Court has recently decided that copyright can be considered relationship property for the purposes of an end of relationship division of property.

A separated couple disagreed over whether the copyright of artwork that the woman had produced during the relationship was relationship property.

The man initially went to the Family Court with the claim his ex-wife’s copyright over artwork that she produced should be deemed relationship property, and that he was therefore entitled to half of the value of it. The Court decided that the copyright was property, but stated that it was the woman’s separate property. 

The High Court and the Court of Appeal both disagreed with this decision, stating that if the copyright was created during the relationship it could be regarded as relationship property and that the man should therefore be entitled to half of its value. For more information on the Court of Appeal’s decision click here.

The woman appealed the case to the Supreme Court. The Court decided that copyright can form part of the relationship property pool as the copyright itself is property. This decision was made on the premise that copyright can be bought, sold, and transferred, like other intangible assets. 

The woman argued that because the skills that allowed her to create the artwork were acquired prior to the commencement of the relationship, the products of her skill were her separate property. The Court rejected this because the copyright itself was acquired during the relationship, not before it, and was therefore relationship property.

The Supreme Court directed the matter back to the Family Court, which will decide on appropriate valuations of the copyright and divide them between the parties. The woman will retain sole ownership of the copyrights and will pay the man 50% of the value decided upon by the Court.

What constitutes relationship property may seem relatively easy to define, but determining the correct division can be complex. If there is confusion around the division of relationship property, it pays to seek advice from a professional with experience in the area.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.

Please note that Rainey Collins is not contracted to provide Legal Aid, other than in the Treaty of Waitangi area.  We therefore are unable to take on any Civil or Family Legal Aid work. If you require Legal Aid in those areas, you can search the list of Legal Aid lawyers on the Ministry of Justice website.