Page History

General Policy: GCM is a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code, and as such, may only expend its resources for the advancement of the religious, charitable, and educational purposes for which GCM is organized. Therefore, GCM may not legally allow its resources to be used for the personal benefit of any individual, including GCM employees. Thus, GCM has developed this Creative Works (CW) Policy to provide creative works ownership guidelines for:

1. Materials or works that a GCM employee may create while employed with GCM ("GCM Works")

...

2. Materials or works that a GCM employee may create outside the scope of his or her employment duties ("Independent Works")

...

2. Materials or works that a GCM employee may create from an existing GCM Work ("Derivative Works")

...

It is GCM's sincere desire (in recognition of the distributed nature of GCM's ministry and to support the advancement of the Gospel of Jesus Christ), to encourage GCM employees to develop CW. This policy is intended to offer guidance to GCM employees contemplating the production of CW to ensure that both they and GCM understand their rights and responsibilities with respect to such property. Questions regarding the interpretation of this CW policy can be directed to the GCM Director of Organizational Affairs.

2.10.a GCM Owned Creative Works: Produced Within the Scope of Employment

2.10.a.1 Employee Activities

In general, GCM employees are employed to conduct the following types of activities in assigned local churches and/or ministries:

• • church leadership and pastoral care
  • personal evangelism and discipleship
  • leading and/or coaching small groups
  • performing logistical and financial administration
  • conducting worship services, conferences, seminars, small group meetings and other programs and events
  • leading retreats, missions trips, and related activities
  • publicly preaching and teaching the Word of God
  • administrative and/or executive functions related to ministry support operations

...

2.10.a.2 Types of Creative Works

As part of their normal duties, GCM employees may produce certain types of Creative Works which may include, but are not limited to:

• • sermons, teachings, lectures, or other oral presentations
  • songs, music or musical productions, dramatic shows and presentations, seminars, workshops, or other live event presentations
  • notes or study materials to be used in conjunction with such presentations
  • books, newsletters, magazines, Bible or book studies, and other types of literary works
  • audio and/or video recordings and productions, still images or photographic presentations, live event staging, lighting, sound and multimedia production, and other recorded or produced materials
  • computer and/or electronic hardware, software or digital media

2.10.a.3 For GCM Works

When the CW is produced by an employee within the scope of his or her employment, GCM legally owns the copyrights and all other legal rights and interests in the CW. This is legal standard under U.S. copyright law that GCM must adhere to as an employer. Such GCM Works would include:

• • Works created in the normal course of an individual's employment with GCM
  • Works created with the assistance of GCM staff, facilities, or other ministry resources
  • Works created primarily for use in the ministry of GCM

...

GCM Works developed or prepared by employees within the scope of their normal employment will be considered a "work made for hire" under United States copyright law (17U.S.C. §101 et seq.) and legally will be considered the property of GCM₁

2.10.a.4 GCM's rights

Include, but are not limited to the following standard rights to:

• • copy
  • distribute
  • display
  • create derivative works
  • perform
  • sell and license

...

…the CW for (an in) all media now known or later developed.

...

The GCM Executive Director, or his designated representative, will be the contact for all permission and licensing requests, and legally is required to oversee the dissemination of all GCM Works, and establish procedures to protect all published and unpublished Works from unauthorized use or distribution.

2.10.b Employee Owned Creative Works: Produced Outside Scope of Employment

...

2.10.b.1 Independent Works

A GCM employee is entitled to own the copyright of an Independent Work (even if such materials have a spiritual or Christian nature). They just need to meet the following requirements:

• Independent Work has been presented in advance and approved in concept by the GCM Executive Director or his designated representative.
• Independent Work is created on the employee's personal time, with no support or resources, financial or otherwise, from GCM.
• Independent Work is not created or developed for a specific GCM job assignment, is not based on a GCM job assignment, or is not otherwise created or developed specifically for the GCM ministry in any way.
• Independent Work is not advertised or promoted using GCM resources during the term of the GCM employee's employment.
• Independent Work does not reference the employee as an employee of GCM (unless previously approved by the GCM Executive Director or his designated representative).
• Examples of uses of GCM support or resources include, but are not limited to: the use of GCM facilities, funds, work-time, equipment, or supplies
• The use of "on-the-job" time, personnel, or GCM staff,
• Any use of GCM funds, property, or underlying materials

The employee will be considered to have not relied upon GCM resources if the Independent Work is created, edited, developed and published solely on the employee's personal time (after hours, during vacation, or during approved unpaid leave), and using only their resources, without the assistance of any GCM staff, facilities, or other GCM resources.

2.10.c Ownership of Derivative Works

GCM recognizes that new works created from existing GCM-owned Works (known as "Derivative Works",), may be beneficial to GCM and its mission. GCM also recognizes that there may be cases where its resources may not be best utilized in the creation or production of such Derivative Works. Even in that instance, however, GCM might still desire such a Derivative Work to be available to the public.

...

For anyone interested in creating a Derivative Work, GCM will follow these requirements: 

• If an employee wants to create a Derivative Work derived from an existing GCM-owned Work (for his or her personal benefit and not as part of his or her GCM job responsibilities), the GCM employee needs to simply request permission and negotiate ownership rights with the GCM Executive Director, or his designated representative. This needs to be done before creating a Derivative Work.
• If GCM agrees that such a Derivative Work should be created for GCM, it may decide to assign a GCM employee to create the Derivative Work. In that case, the Derivative Work created will be deemed a "work made for hire" and GCM will need to legally own the copyright in the Work.
• If GCM determines it does not want to create such a Derivative Work, but would still like to see that Derivative Work created and distributed for the public, it may negotiate with the GCM employee to provide a license to that employee to create such Derivative Work.
• Ownership rights, credits, royalty interests, and all incidents of copyright ownership, as well as licensing rights for GCM, will then be determined on a case-by-case basis by the GCM Executive Director, or his designated representative, in consultation with legal counsel.

2.10.d Notification and Determining the Creative Work Status

Given the nature of the employment responsibilities of GCM employees, it is expected that employees may routinely create GCM Works in the scope of their normal employment. Employees need to contact the GCM Executive Director, or his designated representative, for guidance in determining the ownership rights with respect to the CW that they are contemplating creating. This advance contact will help to determine if the Work will be classified as an Independent Work, GCM Work, or a Derivative Work. It is GCM's desire to ensure that there is clarity with respect to the ownership rights of such CW and that requirements of any reasonable compensation have been met, if applicable.

2.10.d.1 Employee Notification

Written Notification
Employees are required to notify the GCM Executive Director in writing, or his designated representative, in the following situations:

...

• • If the employee desires to create an Independent Work - CW that he or she believes would belong to the individual and not to GCM (because it would not be developed within the scope of their GCM employment)
  • If the employee desires to develop a GCM Work (within the scope of his or her employment) that the employee believes has or may have value for distribution outside of the employee's local church or ministry setting (such as a book or worship recording)
  • If the employee desires to create a Derivative Work from an existing GCM Work.

...

2.10.d.2 Approval by the Executive Director

Written Approval
The Executive Director is required to give written approvals in the following situations:

• • Independent Works - approval of the Work in concept and a confirmed understanding the entire CW will be created and developed on the employee's personal time.
  • GCM Works - to be developed and distributed outside the employee's local church or ministry-approval of the Work and the right to review the content to insure that it is not contradictory to the GCM Statement of Faith.
  • Derivative Works - permission to create the CW, approval of the CW, negotiated ownership rights.

...

2.10.g Treatment of Royalties and Income from Creative Works

• Independent Works - All royalties and income obtained from the CW belong solely to the employee.
• GCM Works - All royalties and income obtained from a GCM Work legally belong to GCM.
• Derivative Works - Unless negotiated otherwise with the Executive Director, all royalties and income obtained from a Derivative Work that was derived from an existing GCM work legally belongs to GCM.

2.10.h Treatment of Royalties and Income Received by GCM

2.10.h.1 GCM Royalty Income/MTD Account

Any royalty income belonging to and received by GCM, that is directly related to CW developed by a field missionary, will be directed as incometo the applicable GCM MTD account for which that field missionary is responsible (less any administrative assessments or other financial considerations and overhead as noted in any negotiated CW agreement).

If the field missionary leaves GCM employment and there is no subsequent transfer** of CW ownership or right to use the CW, GCM has the option to re-direct the royalty income to another GCM ministry fund.
(**If the field missionary leaves GCM employment and there will be a subsequent transfer of CW ownership or right to use the CW, please refer to the Treatment of Creative Works if Employee Leaves GCM section below).

2.10.i Treatment of Production Expenses for Creative Works

• Independent Works - All expenses related to producing CW obtained from an Independent Work are the sole responsibility of the employee and must be paid by the employee.
• GCM Works - Unless negotiated otherwise with the Executive Director, all expenses related to producing, publishing, distributing CW that is a GCM Work developed by a field missionary, will need to be paid from the applicable GCM MTD account for which that field missionary is responsible.
• Derivative Works - Unless negotiated otherwise with the Executive Director, all expenses related to producing, publishing, distributing CW that is a Derivative Work developed by a field missionary, will need to be paid from the applicable GCM MTD account for which that field staff missionary is responsible. (Here it is assumed that the Derivative Work was derived from an existing GCM work and belongs legally to GCM).

2.10.j Treatment of Creative Work if Employee Leaves GCM

If the employee leaves GCM employment, GCM may use one of several options (but is not limited to) for the treatment of any CW produced by the employee (that legally would be classified as a GCM Work), including the following:

...

After obtaining a fair market value of the rights for the CW, this now becomes the "Purchase Price". GCM will work with the employee/purchaser to arrange one of the following payment options for the assignment of the CW rights to the employee:

a. No cash payment. In this case, GCM adds the amount of the Purchase Price to the employee's compensation as additional compensation. GCM will then list the total compensation on the employee's GCM W-2.

b. Cash payment. In this case, the employee pays GCM the Purchase Price in a one-time cash payment.

Under either payment scenario above, the employee is responsible for all personal income and any other taxes due as a result of the purchase of the CW from GCM.

4. If during their ongoing GCM employment, the employee desires to personally own any CW he or she produced while still working for GCM (and GCM agrees), they could do so under the same options listed in section 3(a) and 3(b) above.

If the employee has already left GCM employment, the only payment option available to him or her is the cash payment - 3(b).

Expenses Incurred: For Sections 3 and 4 above, GCM will obtain a fair market value of the CW in consultation with legal counsel. Unless negotiated otherwise with the Executive Director, all expenses incurred related to valuing the CW, will need to be paid from the applicable GCM MTD account for which that field missionary is responsible.₇

2.10.k Employee Responsibility for Taxes for Independent Works

GCM employees are personally responsible for all tax obligations relating to income generated from their Independent Works. Employees are also responsible to ensure that no GCM resources, including work time, personnel assistance or GCM facilities or equipment, are used for the production of materials produced outside the scope of their employment with GCM. If, inadvertently, an employee utilizes any GCM funds or resources in the production of Independent Works, the employee needs to reimburse GCM in full for the total costs incurred, and/or costs associated with the services and equipment used. If no reimbursement is made to GCM, such costs may be considered taxable to the employee. In such instances, there may possibly be significant tax consequences to the employee for which he or she shall be responsible.

2.10.l Compliance with IRS Regulations and ECFA Standards

This policy shall be interpreted to fully comply with IRS regulations and ECFA Standards governing Creative Works, including ECFA Standard 7.9, Conflict of Interest on Royalties, which provides as follows: "An officer, director, or other principal of the organization must not receive royalties for any product that is used for fund-raising or promotional purposes by his/her own organization."

2.10.m Legal Items - Copyright Notice, Registration, and Agreements

All copyrightable GCM Works produced and/or prepared by GCM employees, independent contractors, and volunteers within the scope of their employment or their contractual or other duties are required to contain proper copyright notices indicating that GCM is the legal owner of the copyright. In instances where GCM determines that the copyright of the Derivative Work can be owned by a GCM employee (who is creating the Derivative Work outside the scope of his or her employment duties), the GCM employee is required to specifically indicate the copyright notice of the Derivative Work and all copyright registrations, that the Derivative Works relies on underlying material that is owned by GCM. From time to time, GCM may need to have its employees sign forms to assist GCM in registering its copyrights in the GCM Works or Derivative Works, and also may be required to assist GCM in establishing its copyright ownership. All employees agree that GCM can obtain full disclosure in writing of any and all GCM Works created by the employee at any time during the course of employment. GCM may request from its employees, any agreements it needs to implement this CW Policy, but the absence of such agreements does not affect GCM's rights under this policy.

₁GCM Work(s) developed or prepared by independent contractors or volunteers at GCM's request will be considered "works made for hire" under specific guidelines set forth under United States copyright law (17 U.S.C §101 et seq.) and cases, and/or assigned to GCM by contract or written agreement.