Not understanding intellectual property law can be a VERY EXPENSIVE TRAP!  David Middlebrook defines intellectual property as “ownership of nonphysical property rights in creative thought or works that have basically been recorded or reduced to written form.”  (Nonprofit Law for Religious Organizations; John Wiley & Sons, © 2008)

There are two types of intellectual property that a church needs to be aware of:

First, every church must be familiar with the intellectual property rights of creations by OTHERS.  Examples include sheet music, video clips, song lyrics displayed on the screen during worship, and software licenses.  The individuals and companies that created these things DESERVE TO BE PAID for their creations!  Not adhering to copyright/trademark laws can result in some extreme financial penalties.

Second, every church must be aware of the rules regarding their OWN creations.  This includes creations of church employees (including the senior pastor…) who create work in the course of their employment.  Examples include music, videos/movies, books and software. 

Not being attorneys we are reluctant to give much advice in this arena because intellectual property is more of a legal issue than tax and accounting. 

Our advice is usually very short – “Seek legal counsel to help you determine your church’s compliance with these rather confusing laws.”  (David Middlebrook’s Church Law Group would be a good place to get this help.)