The Right of Reversion means that the rights are returned to the artist. These are listed under claims like “Turnaround “, “Termination of Rights” or “Reversion.” This is not an automatic right.
When a person licenses an Intellectual Property there should be a term outlining the time frame. However, if a person signs a Quit Claim Agreement, they may have no right of Turn Around.
An assignment is a complete transfer of property and will terminate all rights of Reversion or Turn Around unless explicitly stated. This statement on the Assignment is called the “Reservation.” Any obligations by the grantee to the grantor must be deifined.
To activate the Right of Reversion, you must understand when the Agreement terminates and the circumstances. For this you will likely require an attorney. Usually the Right of Reversion might occur under the following circumstances.
- The contract ends
- All the financial obligations have been met
- The company goes out of business and this specific reason is included in the agreement.
- The company fails to perform.
The word performance must be clearly defined because developing Intellectual Property takes years to the lack of completion does not mean the lack of performance. You cannot sign an Assignment of Copyright and Quit Claim and decided to take it back later.
In many cases such as film making and production of Intellectual Property, producers and companies will not allow any clauses of Turn Around or Rights of Reversion. Assignments are much cleaner for the grantee. With the big leagues, you do not make the rules. If you are inexperienced, you should seek help.
Make sure you have a good attorney and that the opportunity is genuine.