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Simple English definitions for legal terms

instance and expense test

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A quick definition of instance and expense test:

The instance-and-expense test is a way for courts to decide who owns the rights to a product. If someone makes something while working for someone else, the owner of the company usually owns the rights to it. But if someone is hired to make something and uses their own resources, they might own the rights instead. The test looks at whether the company told the person what to make and paid for it, or if the person made it on their own and got paid later. If the company wins the test, they own the product unless there's a different agreement.

A more thorough explanation:

The instance-and-expense test is a legal standard used by courts to determine whether a product was a work made for hire. This means that the ownership rights of the work are determined by who paid for it and who had control over its creation. If a work is deemed made for hire, the hiring party owns the rights associated with the work, including intellectual property ownership.

The instance-and-expense test has two parts:

  • Instance: This refers to the extent to which the hiring party provided the reason for, participated in, or had the authority to supervise the creation of the work. If the hiring party provided the creative direction or had the authority to supervise the work, it is more likely to be deemed a work made for hire. If the creator created the work on their own initiative, it is less likely to be deemed a work made for hire.
  • Expense: This refers to the use of the hiring party's resources to create the work. If the hiring party paid for the work with a lump sum, it is more likely to be deemed a work made for hire. If the creator is compensated through royalties or a profit-sharing system, it is less likely to be deemed a work made for hire.

If the hiring party satisfies the instance and expense test, they will be deemed the owner of the work, unless there is evidence of an agreement to the contrary.

An example of the instance-and-expense test is a company hiring a graphic designer to create a logo. If the company provides the designer with specific instructions on what they want the logo to look like and has the authority to supervise the designer's work, this satisfies the instance prong of the test. If the company pays the designer a lump sum for the work, this satisfies the expense prong of the test. Therefore, the logo would be deemed a work made for hire, and the company would own the rights to the logo.

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JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
soyalmondoatmilk
8:38
good morning! hoping waves will come our wave today
8:42
GW wave today?
8:57
There’s someone I found on here with the username threeoutchange and if my understanding is correct that’s a reference to the debut album by a pretty cool 90s-00s Japanese band called Supercar. I geeked a little
8:57
It could just be a baseball reference I don’t get though lol
Dkk
9:00
@renard99: also, the same band that does a song in the anime Eureka 7 which I watched when I was like idk, 12
9:00
Yeah! They are pretty good. Three Out Change is an awesome J-rock record
Dkk
9:01
I will probably not listen to them more but fun fact. Really random to start the day. An omen that the waves will be very random today.
Dkk
9:03
Fuck, reading the wikipedia now. Literal last song they did before they broke up was Storywriter. Wow.
9:05
That one is a masterpiece
9:05
My favorite song by them is Recreation
glovediedthisishismom
9:05
snowing
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