Judgement Briefs

Intellectual Property Rights

Community for Creative Non-Violence v. Reid

490 U.S. 730 (1989)

Citation
490 U.S. 730 (1989)
Court
Supreme Court of the United States
Date
5 June 1989
Bench
Full Court; Marshall J. delivered the unanimous opinion

Facts

  • The Community for Creative Non-Violence (“CCNV”) planned a sculpture highlighting homelessness.
  • CCNV engaged sculptor James Earl Reid to create a work later titled Third World America.
  • CCNV supplied the general concept of a homeless family on a sidewalk and suggested some design details.
  • Reid created the sculpture in his own studio.
  • He used his own tools, controlled the production process and hired assistants.
  • CCNV paid an agreed price but did not provide employee benefits or withhold taxes.
  • The parties did not sign a written agreement declaring the sculpture a work made for hire.
  • After the work was completed, both claimed copyright ownership.
  • CCNV argued that Reid was its employee and that the sculpture was a work made for hire.
  • Reid claimed authorship as an independent contractor.

Issue

  • Whether Reid was an employee or an independent contractor for copyright purposes.
  • Whether the sculpture qualified as a commissioned work made for hire.
  • Who owned the initial copyright.

Rule

  • A work is made for hire where:
  • it is created by an employee within the scope of employment; or
  • it falls within one of the specified statutory categories of commissioned works and the parties sign a written agreement.
  • “Employee” is determined through common-law agency principles.
  • Relevant factors include:
  • control over the manner of work;
  • skill required;
  • source of tools;
  • location;
  • duration;
  • method of payment;
  • hiring of assistants;
  • employee benefits;
  • tax treatment;
  • regular business of the hiring party.
  • No single factor is conclusive.

Application

  • CCNV controlled the broad concept and made suggestions, but Reid retained control over artistic execution.
  • Sculpture required specialised artistic skill.
  • Reid worked in his own studio and supplied his own tools.
  • He hired and paid assistants.
  • The engagement concerned one project rather than an indefinite employment relationship.
  • Reid was paid a fixed amount rather than a regular salary.
  • CCNV did not provide benefits or treat him as an employee for tax purposes.
  • These factors strongly indicated independent-contractor status.
  • The Court rejected reliance solely on CCNV’s right to approve the final work.
  • A client commonly specifies desired results without becoming the employer of an independent professional.
  • Because Reid was not an employee, the first work-for-hire category did not apply.
  • A sculpture was not one of the statutory categories that could become a commissioned work for hire under the parties’ arrangement.
  • In any event, there was no signed written agreement.
  • Reid was therefore the statutory author and initial owner.
  • The Court noted that CCNV members may have made creative contributions capable of supporting joint authorship.
  • That separate issue had not been fully resolved and was remanded.
  • The decision created a uniform agency-based test rather than allowing different copyright definitions of “employee.”

Conclusion

  • The Supreme Court held that Reid was an independent contractor, not CCNV’s employee.
  • The sculpture was not a work made for hire.
  • Reid was its initial author, subject to possible joint-authorship claims on remand.
  • Use this case for: employee status in work-for-hire disputes is determined by common-law agency factors, not merely by the hiring party’s control over the project’s general concept.