The crowdfunding movement which has seen continuous progression these past years, is gradually affecting each and every area of culture.

 

Anne-Katel Martineau, Esq. specialised in Intellectual Property law and Information Technology law who participated in numerous crowdfunding projects is exclusively replying to Locita readers\' question.

 

Locita: Ms Martineau, crowdfunding is currently having the wind in its sails. Could you explain to us how it works?

 

A-K Martineau Esq.: Indeed, crowdfunding comes from the United States of America and is seeing great success in Europe. It\'s about calling upon non-professional people to finance intermediate platforms for artistic, entertaining (video-games) or humanitarian projects.

 

They can equally contribute to the spread of information. Hence, it has been possible to produce documentaries. In a return of few euros they invest towards a project, net surfers can enjoy a few advantages such as: the financed support book, CD, DVD..., a filming day, a meeting with the movie or documentary\'s team, participating in a theatrical show, a workshop day with the photographer... Moreover they can enjoy financial reward based on the net revenues they reached.

 

Crowdfunding therefore enables individuals, including artists, to advertize their projects to a wide range of people by taking advantage of Internet\'s numerous possibilities and therefore making a name for themselves or trying a new distribution channel.

 

Locita: What do you think of the legal conditions of crowdfunded platforms?

 

A-K Martineau Esq.: these legal conditions are not always well drafted. Nevertheless, we can clearly distinguish general conditions and specific conditions on most websites.

 

 

Terms and Conditions

 

Terms and conditions put up on Crowdfunding websites, are more or less similar. In reality they are the same as the platform which are accepted by any net surfers whenever they visit a website.

 

They must deal with at least two of these points:

 

On the one hand, the use of the platform should be done in respect of copyright and in compliance with the Intellectual Property Code. The net surfer must not infringe the general structure of the website by reproducing it and this involves any element of the platform (photographs, brands, logo).... On the other hand, private information can be collected though the platform, but each user has an access right, a right to correct his personal data and a right to object for legal reasons in compliance with the Law of 6th of January 1978 which was modified by the 6th of August 2004 Law.

 

Specific conditions

 

Specific conditions vary from one website to another depending on the complexity of the projects. There are generally two types of particular conditions :

 

Those which frame the relationship between the producer or the editor of the project and the "contributing" net surfer who will have to clearly accept these specific conditions when he is going to do his online payment.

 

Those which will link the project bearer, the artist who submits his project to the producer or the editor who is sometimes liable for the platform (which is not then a simple host especially when he collects a commission).

 

In addition to these terms and conditions and specific conditions, an assignment contract of rights between the artist, the producer and the co-editor must be concluded, in order to avoid any future litigation.

 

 

Locita: Do the net surfers who participate in the project by paying money become producers or editors?

 

A-K Martineau Esq.: As a rule, an editor or a producer is not only the one who finances the project, but he is also the person who has the technical and artistic role for the creation of the work by making decision aiming at guiding the project and ensuring a good ending. However, the financing net surfer only participates financially, it should be defined in the particular conditions.

 

Calling the net surfer co editor or co producer is judicially debatable but allows to distinguish him from the regular net surfer who hasn\'t made any payments or who has paid for a project who never came to an end due to insufficient fundraising. Given the high number of contributors, It would be too complex and basically impossible to make net surfers participate in the technical and artistic choices. None of the projects based on crowdfunding could therefore see the light.

 

Locita: What do you think of crowdfunding\'s future?

 

A-K Martineau Esq.: I think it is a financing method that will flourish. Some companies use it to test their product and net surfers enthusiasm before putting the product on the market.

 

As far as I know, there hasn\'t yet been any litigation due to platforms operating on crowdfundings however these are soon to come since some of them do not have an adequate legal framework.

 

For those who want to learn more and have a clearer view of this legal issue, Anne-Katel Martineau Esq. holds the InformationTechnology and Intellectual Property blog.

 

http://avocats.fr/space/anne-katel.martineau

 

Source : http://fr.locita.com/societe/le-financement-participatif-ou-crowdfunding-vu-par-lavocat-39004/