LITERARY TRUSTS

Literary property trusts are trusts like any other. They are distinguishable because the only or main asset comprises literary property, such as novels, short stories, plays and screenplays. Literary property trusts may be created by deed or by will.

Trust Administration
One aspect of the work undertaken by this firm on behalf of literary property trusts is the day-to-day trust administration. This is vital to the smooth-running of any trust, and is similar to the work routinely carried out in respect of any other trust. This comprises managing all administrative and financial aspects of the trust, including trustee meetings, bank accounts, investment portfolios (if any), preparing trust accounts and VAT returns.

This work, including the preparation of trusts accounts for private and charitable trusts, is undertaken in-house by our specialist Trust Management Team within the Private Capital Department.

Intellectual Property Rights
The firm advises trustees on all aspects of rights management, please see our Intellectual Property Group

Approvals

When negotiating any agreement for the exploitation of rights, the trustees should include the right to approve all key stages of the creative process to ensure that the author is consulted on style issues and involved in the development of the project.

Trustees are often selected by the author for their particular expertise in, eg, publishing, or because of their familiarity with the author's works, which will enable them to monitor quality.

Protecting the Rights
This function extends to handling a trade mark registration programme, as well as building in rights of approval. Where appropriate, clients are advised to consider the use of trade mark watching services in conjunction with trade mark agents.

Planning for the Future
Some authors are fortunate enough to be successful during their lives, some afterwards, and some both. However, it is always wise to plan for the future.

The works of the late Sir Terence Rattigan continue to be popular many years after the playwright's death in 1977.

Another example is J R R Tolkien's, Lord of the Rings books. The first of the series, The Hobbit, was originally published in 1937, and The Fellowship of the Ring in 1954. The books have been republished by HarperCollins, and a major motion picture - a film version of The Fellowship of the Ring - was released in a blaze of publicity. It proved to be a major box office attraction.

Authors should, therefore, consider making suitable arrangements for the ownership of their literary rights, both during and after lifetime.

If no specific provision is made in a will, copyright will have to be dealt with by the personal representatives, along with the deceased person's other property. However, an author's general personal representatives may not have the necessary skills, knowledge (or indeed the inclination) to manage intellectual property rights. An author should consider whether it is appropriate to appoint separate literary executors to deal with literary rights independently from other assets.

Different trusts can be considered. A lifetime trust or discretionary trust, or a trust in favour of the author's children for tax planning purposes might be suitable. If the author wishes to give away income to charity a charitable trust might be appropriate.