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Work Bearing The Characteristics Of Its Author And The Signs of Work

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Work Bearing The Characteristics Of Its Author And The Signs of Work

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Jun 2024
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Work Bearing The Characteristics Of Its Author And The Signs of Work The Law on Intellectual and Artis...

Work Bearing The Characteristics Of Its Author And The Signs of Work

The Law on Intellectual and Artistic Works ("LIAW"), which has been amended many times since its entry into force in 1952, still causes uncertainty and confusion in practice. The recent decision of the Court of Cassation[1] has been a very guiding and clarifying decision in terms of examining the signs of the work, which are controversial in practice, and the amendments made to LIAW, especially with regard to cinematographic works, and the issue of the works bearing the characteristics of the owner.

The lawsuit subject to the decision was filed by the screenwriter of the 1977 film "Selvi Boylum, Al Yazmalım", where the plaintiff filed the court action based on violation of his rights arising from the copyright on the screenplay and unfair competition due to the use of the slogan "Sevgi Emektir“ (“Love is Labor") in the screenplay of the film, which was inspired by the work named "Red Scarf" and created as an independent adaptation, in the commercial of the defendant without any permission or approval from the plaintiff. The defendant based his defense on the fact that the screenplay of the film "Selvi Boylum, Al Yazmalım" was not entirely original since it was inspired by Aytmatov's story "Selvi Boylum" and that all rights on the film belonged to the producer since the film was made before 1995, and that the rights to use the work were duly purchased from the persons holding the financial rights.

  • The Court of First Instance ruled that since the movie subject to the lawsuit was made before 1995, the first version of Article 8 of the LIAW[2] will be taken into consideration and accordingly, the producer who produced the movie will be deemed as the author, and the plaintiff will not have a financial right in the works in question, since the script and the movie were created before 12.06.1995. In addition, the Court considered that the screenplay was adapted from Aytmatov's novel and that the only part where the plaintiff could claim a right on the screenplay was the plaintiff's contribution to the screenplay in terms of characteristics. In this context, the Court decided to reject the plaintiff’s claims for damages on the grounds that the defendant obtained written permission from the producer company, which is the author, to use the images of the film in the commercial, and that the financial rights were transferred to the defendant in accordance with the law as per the document in the file relating to the transfer of the rights.
  • The Regional Court of Appeal ruled in the same direction and stated that the first version of Article 8 of the LIAW should be taken into consideration in accordance with the explicit provision of Additional Article 2 of the LIAW[3] and argued that the plaintiff cannot claim a right arising from the LIAW as a screenwriter in terms of cinematographic works. However, although the Court stated in the expert reports that the phrase "Love is Labor" was identified with the film as it was the motto of the film and should be protected as a work, the Court stated that this phrase became impressive with the other elements in the scene and the talents of the performing artists and concluded that the expression did not bear the characteristics of the plaintiff and is used by everyone in the society. The Court rejected the appeal of the plaintiff’s attorney since the plaintiff could not make a claim based on the rights arising from the script in accordance with Additional Article 2 of the LIAW and the plaintiff did not have a copyright on the expression "Love is Labor" separate from the script, thus the Regional Court of Appeal ruled that the decision of the Court of First Instance to dismiss the case was appropriate since it was also determined that the plaintiff had transferred all his financial rights.

Within the scope of its decision, the Court of Cassation clarified the discussions regarding the plaintiff's right ownership as a screenwriter and although it accepted that the producer is the author of the cinematographic works created before the amendment made by the Law dated 1995, it emphasized that this provision is not applicable in the concrete case, since the owners of the screenplay works are considered as authors both before and after the amendment. In this context, the reasoning of both the Local Court and the Regional Court of Appeal that the plaintiff cannot assert his rights arising from the screenplay he wrote as an adaptation was found incorrect.

Subsequently, the Supreme Court held that although there is no dispute that a contract was concluded between the film producer and the screenwriter for the production of the relevant film and the use of the screenplay, considering that the term of protection of a film shot in 1978 is 20 years from the date of publicity under the FSEK, this contract cannot cover the later period and that the screenwriter transferred his financial rights to the producers for a maximum of 20 years. Which rights were covered by the agreement signed in 1978 regarding the production of the movie and the use of the screenplay was discussed as well. Pursuant to Article 52 of LIAW[4], the transfer of a financial right shall not be valid unless it is shown separately and in writing. Therefore, in the concrete case, it has been correctly determined that the signed agreement is valid only for the use of the screenplay in cinema screenings, and that the defendant has not obtained a written permission for the use of the screenplay in a commercial.

Finally, the Supreme Court analyzed the most controversial point in the dispute, which is the issue of originality, it has been stated that in order for the work to reflect the characteristics of the author, originality is not sought in each element or sentence of the work, it is sufficient that the impression created by the combination of these elements as a whole is original, and in terms of the concrete case, it has been accepted that the display of the phrase "Love is Labor" by presenting excerpts from the film evokes the elements of the scenario work as well as the cinematographic work.

As a result, it was not deemed correct by the Regional Court of Appeal to rescind the decision of the Local Court and to dismiss the case on different grounds, and the judgment was reversed in favor of the plaintiff since although there is no dispute that the plaintiff is the author of the work on the scenario, it is necessary to evaluate whether the phrase "Love is Labor" is a work or at least a "distinctive sign of the work" pursuant to Article 83/1[5] of LIAW and whether the unauthorized quotation made accordingly requires compensation protection pursuant to Article 68 of LIAW based on the rules of infringement or unfair competition.

Within the scope of the Supreme Court's decision summarized above, first of all, the negative consequences for the plaintiff of the judgment established by the Local Court and the Regional Court of Appeal on the wrong grounds due to the amendments made in the LIAW in terms of cinematographic works are sought to be corrected. As stated in the decision, both the Local Court and the Regional Court of Appeal made a mistake in terms of right ownership by trying to apply the decisions of the Court of Cassation[6], which were originally rendered with respect to performing artists who were not even protected as related right holders before the amendment dated 1995, to the case regarding the ownership of the work arising from a screenplay.

Moreover, the fact that the Supreme Court, taking into account the date of the contract between the parties, has stated that the transfer of financial rights is effective only for a validity period that can be foreseen at that date, has contributed to the case law that the indefinite transfer of financial rights is limited to the period of protection at the time of the transfer. In this context, it is recommended that the owners of cinematographic works who have not fully acquired the rights arising from the screenplay should re-contract with the screenplay owners in order to exercise their rights arising from cinematographic works within the scope of the extended periods.

Although the decision has made important points in terms of the element of originality, it has not reached a conclusion as to whether the phrase "Love is Labor" alone can be considered as a copyrightable work or a distinctive sign of a work that reflects the characteristic of its owner. Whether a short "motto" has the character of a work apart from the work of which it is a part, and to what extent the whole work contributes to this characteristic, is a question that can only be determined by a separate evaluation. Even in cases where such phrases or slogans may be accepted as signs of the work, it should be remembered that pursuant to Art. 83/2 LIAW, protection will not be granted to names and signs that are used by everyone and do not have a distinctive character. In conclusion, it is a matter of real curiosity what the final decision in this dispute will be.

[1] The decision of the 11th Civil Chamber of the Court of Cassation dated 24.05.2022 and numbered 2020/8509 E. 2022/3996 K.

[2] The author of a cinematographic work is the one who produced it.” LIAW Art. 8, 01.01.1952

[3] "The provisions of this Law pertaining to ownership of cinematographic works shall apply to cinematographic works the production of which has been commenced after 12.6.1995 when the Law No. 4110 entered into force." LIAW additional art. 2, Amended: 4630 - 21.2.2001

[4] "Contracts and disposals relating to financial rights shall be in writing and the rights constituting their subject matter shall be specified individually."

[5] "The title and distinctive signs of a work and the form of the reproduced copies of such work may not be used in another work or in the reproduced copies thereof in such a way as to cause confusion."

[6] 11 CC dated 17.09.2019 and 2018/409 E. - 2019/5485 D.

First published by Gün + Partners in Jun 25, 2024.

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Forecast methodology

The future outlook “forecast” is based on a set of statistical methods such as regression analysis, industry specific drivers as well as analyst evaluations, as well as analysis of the trends that influence economic outcomes and business decision making.
The Global Economic Model is covering the political environment, the macroeconomic environment, market opportunities, policy towards free enterprise and competition, policy towards foreign investment, foreign trade and exchange controls, taxes, financing, the labour market and infrastructure. We aim update our market forecast to include the latest market developments and trends.

Forecasts, Data modelling and indicator normalisation

Review of independent forecasts for the main macroeconomic variables by the following organizations provide a holistic overview of the range of alternative opinions:

  • Cambridge Econometrics (CE)

  • The Centre for Economic and Business Research (CEBR)

  • Experian Economics (EE)

  • Oxford Economics (OE)

As a result, the reported forecasts derive from different forecasters and may not represent the view of any one forecaster over the whole of the forecast period. These projections provide an indication of what is, in our view most likely to happen, not what it will definitely happen.

Short- and medium-term forecasts are based on a “demand-side” forecasting framework, under the assumption that supply adjusts to meet demand either directly through changes in output or through the depletion of inventories.
Long-term projections rely on a supply-side framework, in which output is determined by the availability of labour and capital equipment and the growth in productivity.
Long-term growth prospects, are impacted by factors including the workforce capabilities, the openness of the economy to trade, the legal framework, fiscal policy, the degree of government regulation.

Direct contribution to GDP
The method for calculating the direct contribution of an industry to GDP, is to measure its ‘gross value added’ (GVA); that is, to calculate the difference between the industry’s total pre­tax revenue and its total bought­in costs (costs excluding wages and salaries).

Forecasts of GDP growth: GDP = CN+IN+GS+NEX

GDP growth estimates take into account:

  • Consumption, expressed as a function of income, wealth, prices and interest rates;

  • Investment as a function of the return on capital and changes in capacity utilization; Government spending as a function of intervention initiatives and state of the economy;

  • Net exports as a function of global economic conditions.

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Market Quantification
All relevant markets are quantified utilizing revenue figures for the forecast period. The Compound Annual Growth Rate (CAGR) within each segment is used to measure growth and to extrapolate data when figures are not publicly available.

Revenues

Our market segments reflect major categories and subcategories of the global market, followed by an analysis of statistical data covering national spending and international trade relations and patterns. Market values reflect revenues paid by the final customer / end user to vendors and service providers either directly or through distribution channels, excluding VAT. Local currencies are converted to USD using the yearly average exchange rates of local currencies to the USD for the respective year as provided by the IMF World Economic Outlook Database.

Industry Life Cycle Market Phase

Market phase is determined using factors in the Industry Life Cycle model. The adapted market phase definitions are as follows:

  • Nascent: New market need not yet determined; growth begins increasing toward end of cycle

  • Growth: Growth trajectory picks up; high growth rates

  • Mature: Typically fewer firms than growth phase, as dominant solutions continue to capture the majority of market share and market consolidation occurs, displaying lower growth rates that are typically on par with the general economy

  • Decline: Further market consolidation, rapidly declining growth rates

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The Global Economic Model
The Global Economic Model brings together macroeconomic and sectoral forecasts for quantifying the key relationships.

The model is a hybrid statistical model that uses macroeconomic variables and inter-industry linkages to forecast sectoral output. The model is used to forecast not just output, but prices, wages, employment and investment. The principal variables driving the industry model are the components of final demand, which directly or indirectly determine the demand facing each industry. However, other macroeconomic assumptions — in particular exchange rates, as well as world commodity prices — also enter into the equation, as well as other industry specific factors that have been or are expected to impact.

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Forecasts of GDP growth per capita based on these factors can then be combined with demographic projections to give forecasts for overall GDP growth.
Wherever possible, publicly available data from official sources are used for the latest available year. Qualitative indicators are normalised (on the basis of: Normalised x = (x - Min(x)) / (Max(x) - Min(x)) where Min(x) and Max(x) are, the lowest and highest values for any given indicator respectively) and then aggregated across categories to enable an overall comparison. The normalised value is then transformed into a positive number on a scale of 0 to 100. The weighting assigned to each indicator can be changed to reflect different assumptions about their relative importance.

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The principal explanatory variable in each industry’s output equation is the Total Demand variable, encompassing exogenous macroeconomic assumptions, consumer spending and investment, and intermediate demand for goods and services by sectors of the economy for use as inputs in the production of their own goods and services.

Elasticities
Elasticity measures the response of one economic variable to a change in another economic variable, whether the good or service is demanded as an input into a final product or whether it is the final product, and provides insight into the proportional impact of different economic actions and policy decisions.
Demand elasticities measure the change in the quantity demanded of a particular good or service as a result of changes to other economic variables, such as its own price, the price of competing or complementary goods and services, income levels, taxes.
Demand elasticities can be influenced by several factors. Each of these factors, along with the specific characteristics of the product, will interact to determine its overall responsiveness of demand to changes in prices and incomes.
The individual characteristics of a good or service will have an impact, but there are also a number of general factors that will typically affect the sensitivity of demand, such as the availability of substitutes, whereby the elasticity is typically higher the greater the number of available substitutes, as consumers can easily switch between different products.
The degree of necessity. Luxury products and habit forming ones, typically have a higher elasticity.
Proportion of the budget consumed by the item. Products that consume a large portion of the consumer’s budget tend to have greater elasticity.
Elasticities tend to be greater over the long run because consumers have more time to adjust their behaviour.
Finally, if the product or service is an input into a final product then the price elasticity will depend on the price elasticity of the final product, its cost share in the production costs, and the availability of substitutes for that good or service.

Prices
Prices are also forecast using an input-output framework. Input costs have two components; labour costs are driven by wages, while intermediate costs are computed as an input-output weighted aggregate of input sectors’ prices. Employment is a function of output and real sectoral wages, that are forecast as a function of whole economy growth in wages. Investment is forecast as a function of output and aggregate level business investment.

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