Tuesday, January 26, 2010

IPR Clause - Read with caution

In the case that we saw unfold between ICC and players, there are two points to note:

1) ICC and BCCI have just been the facilitators of Brand Image developed by players who have refused to sign the contract. They do schedule the matches and appoint coaches for grooming the players, but it’s the individual talent and performance that makes them the brand they are.

2) The players had their contract with competing sponsors of Champions trophy event prior to this clause relinquishing personal commercial rights being put by ICC. In such a case, players would be in breach of contract with competing sponsors if they sign the document with ICC clause. Considering losses that players would incur it didn’t make any sense for players to sign the agreement.

BCCI and ICC by virtue of their existence as Cricket Control bodies don’t own rights to a player’s off the field commercial rights. Thus, players have are totally justified in not signing the agreement and negotiating the same with board to ensure that it can be a win-win situation for both parties. ICC should compensate the players appropriately in case it wants them to forego their contractual obligations with competing sponsor. The same thing happens in the industry wherein in order to acquire an employee of competitor, the future employer is willing to pay-off for the bond/notice period that the employee holds with his present employer.

In an organizational environment we see that a company by contract only owns the right to work done by an individual, it doesn’t control the individual as a brand. Once an individual knows that he has the idea that can revolutionize the industry, he can either bargain with employer to be appropriately paid for the concept or may choose to leave the organization and pursue the concept alone or with other company on terms that he is comfortable with.

Most of the employment agreements contain ‘work-for-hire’ and IPR related clauses in language that is difficult to understand for candidates at time of joining. There is a need to educate the candidate on such practises and increase awareness so that candidate knows what he/she is getting into.

Thanks

Mukul Sachdeva (U109027)

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