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“Fee Agreement”

Decision of the Supreme Court of Austria (Oberster Gerichtshof) 10 December 2020 – Case No. 4 Ob 165/20y

  • Decision • Copyright Law
  • Austria
  • Published:
IIC - International Review of Intellectual Property and Competition Law Aims and scope Submit manuscript
  1. 1.

    The submission of a fee offer upon request is a declaratory behavior to be understood, according to the objective understanding of an honest recipient of the declaration, as meaning a wish to conclude a fee agreement for the transfer of the rights of exploitation.

  2. 2.

    The offering party is thus entitled to assume that the recipient will consider the offer and, if need be, negotiate the conditions – i.e. the recipient has a “duty to speak”.

  3. 3.

    Consent can, however, be implied resulting from the recipient’s declaratory behavior (here: retrieval and usage of commissioned photos).

  4. 4.

    Implied consent can substitute the merely voluntary written form for such agreements.

  5. 5.

    In the interest of the security of legal transactions, the person who signs a document without reading it must, as a rule, accept its contents as representing his or her declaration. This applies particularly to an entrepreneur, who should be expected to read written communications. This principle also applies generally to a clearly implied declaration of intent by a contracting party which refers to an unread document of the other contracting party in unambiguous terms.

  6. 6.

    Claims for reasonable remuneration or double remuneration under intellectual property laws have a basis in unjust enrichment law. The amount of the remuneration is based on the reasonable remuneration for a licence to use a work from the perspective of honest parties (here: based on the value of the use of commissioned photographs).

  7. 7.

    The calculation basis for such is the gross income achieved through the actual use of commissioned photographs, of which the author is entitled to a reasonable percentage share, which can be assessed according to Sec. 273 of the Austrian Code of Civil Procedure. To this extent, an accounting claim is justified.

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Translated from the German by Proverb oHG.

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Copyright Act, Secs. 15, 18a, 81, 86, 87; Code of Civil Procedure, Sec. 273. “Fee Agreement”. IIC 53, 122–130 (2022). https://doi.org/10.1007/s40319-021-01147-6

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  • DOI: https://doi.org/10.1007/s40319-021-01147-6

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