A derivative work is a work based upon one or more pre-existing copyrighted works, that recasts, transforms, or adapts the preexisting work. Only a copyright owner has the right to create a derivative work based on their copyrighted work, or to authorize others to do so.
If a copyright owner authorizes another person to create a derivative work, the copyright owner retains a partial copyright in that derivative work with respect to all of the elements that the derivative creator drew from the underlying work that was used in the derivative.
Examples of a derivative work include: remixes of an already existing song, artwork incorporating cartoon characters, movies based off of books, and action figures incorporating a character from a comic book.
If an unauthorized third party prepares a derivative work, the copyright owner of the underlying work can sue for infringement.
Distributing a derivative work, such as a remix of an already existing song, requires the permission of the copyright owner!
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