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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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yeah there are so many good cuisines in ithaca
renard99
22:31
@lilypadfrog: that’s a pity I’da be liking them all
texaslawhopefully
22:31
Only food I’m going to miss for sure if I leave Texas is texmex
22:31
waspy hasnt had thai food in ithaca yet. ithaca thai is so good
^^^^ truuuuuu
22:32
there are two major thai places and they have very similar names bc a divorced husband and wife own them lol
22:32
personally i think taste of thai is better than taste of thai express but thats just me
i had pho tho and it was really good and huge portions
texaslawhopefully
22:32
Glad they have good Thai food, I love Thai food! Can’t wait to visit :)
22:33
when tex goes to ithaca i want to come
Dkk
22:34
Crying Tiger, best Thai dish.
damn im so hungry all i had today was a curry tonkatsu and buldak
and it was a lil baby noodle cup
vvv hungry
22:36
curry tonkatsu so yummeh
22:36
whats even open rn? pizza?
CTB is it i think
22:37
is collegetown pizza not open
22:37
i used to get a slice from there or wings over at like 1am after my shift at the restaurant
Dkk
22:48
Ross Ulbricht free. God Bless Trump. Huge win.
JeremyFragrance
22:54
agreed
texaslawhopefully
22:55
This is an interesting read: https://thedispatch.com/article/birthright-citizenship-trump-implications/
Dkk
23:01
I mean, idk how it's possible to end birth right citizenship without amending the constitution because to me the 14th amendment is pretty clear about it.
ross ulbricht tried to hire a hitman to kill 5 people
i am not that sympathetic to him
Dkk
23:04
@KnowledgeableRitzyWasp: That might have been an FBI agent. It was most likely him and he was most likely doing it to retrieve stolen funds that corrupt FBI agents stole, but yeah moral gray area but me personally, cool with hitmen. It's not like it is uncommon to hire hitmen. I don't think the action itself is necessarily wrong but the intent behind it can be.
Dkk
23:05
Like, Boeing whistblowers being killed by hitmen = wrong but a guy hiring hitmen to retrieve stolen funds = good to me.
texaslawhopefully
23:05
@Dkk: Yeah, for sure. My guess is it'll go to SCOTUS and it'll be 8-1 or 7-2, saying that EO was unconstitutional.
Dkk
23:06
Indeed. I need a count for how many exectuive orders he has signed and how many already have pending lawsuits.
i've been away for a while what were the most recent waves? any this week?
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