Fair Compensation in Copyright Law – Your Rights Under Sections 32 and 32a of the German Copyright Act (UrhG)
You've created a piece of work.
Now make sure you get paid fairly.
Why this topic is important to you
You’ve created a piece of work. Maybe a photo, a design, a song, a video, or content for social media. You were paid for it—maybe €200, maybe €1,000, maybe even more. At the time, that often seems fine.
What many creatives underestimate, however, is that
the true economic value of a work often only becomes apparent later.
A photo is suddenly used in a major campaign.
A song is suddenly streamed millions of times.
A video goes viral.
A design becomes a brand.
And that’s exactly when the problem arises:
The originally agreed-upon compensation is no longer proportional to the actual use and economic success.
Copyright law recognizes this problem—and deliberately resolves it in favor of the creators.
Sections 32 and 32a of the Copyright Act ensure that you do not work for less than fair value on a permanent basis. In this regard, they even override the traditional principle of freedom of contract. This means that even if you have signed a contract, you can later request an adjustment.
This is not an exception—it is a central component of the system.
At the same time, this issue doesn’t just affect creatives. Companies, agencies, labels, and platforms must also grapple with it. Anyone who structures compensation models incorrectly runs the risk of facing significant retroactive claims years later.
What exactly does “reasonable compensation” mean?
The concept of “reasonable compensation” is the linchpin.
The law is deliberately vague:
Remuneration is reasonable if, at the time the contract is concluded, it corresponds to what is customarily paid in business transactions, taking all circumstances into account. This may sound abstract—but it is quite manageable in practice.
The following factors are particularly decisive:
Type of work
What kind of work was created?
Usage rights
What usage rights have been granted?
Useful life
How long can the work be used?
Geographical scope
To what extent is it used?
Economic Significance
What is the economic significance of the plant?
Industry standard
What is standard practice in the industry?
Courts often base their decisions on specific market comparisons. They examine what other creators have received in comparable situations.
It is important to note that this is not about “somewhat fair” compensation, but rather about an objectively reasonable share.
Why Your Consent Doesn't Matter
A key point that many people underestimate:
Your consent does not automatically make an unreasonable fee valid.
Copyright law deliberately protects you even from your own contractual decisions if they lead to a structural imbalance.
In concrete terms, this means:
You may have signed an agreement—and still be entitled to demand more later.
Your team for questions about fair compensation
Attorney
Juliette Sarvan de Castro
Attorney
Patrick Rehkatsch
"Experienced. Strategic. Assertive.
We solve your legal challenges."
Attorney
Juliette Sarvan de Castro
Attorney
Patrick Rehkatsch
"Experienced. Strategic. Assertive.
We solve your legal challenges."
Typical situations in which compensation is too low
In practice, similar patterns emerge time and again.
Buyout agreements
You receive a one-time payment and transfer comprehensive usage rights. At first glance, this seems simple and straightforward. In reality, however, it often means that you are completely cut off from any future financial success.
This is particularly problematic with digital content, because usage and reach often only develop over time.
Flat-rate payments without adjustment
A fixed amount is agreed upon—regardless of how intensively the work is used later on.
This can work for small projects, but becomes problematic as soon as usage expands.
"All Rights Reserved" clauses
Phrases such as “all known and unknown uses, without limitation in time or space” are widely used.
They are not automatically invalid—but they often result in the compensation no longer being appropriate.
Social Media and the Platform Economy
Especially on platforms like YouTube, TikTok, Instagram, and streaming services, content reaches an enormous audience—often based on content that was originally paid very little for.
Here, there is a particularly wide gap between usage and compensation.
A concrete example
A photographer sells a photo for €300.
The company then uses this photo in marketing campaigns across Europe for several years.
In such a case, one will regularly conclude that the original compensation was not adequate.
Section 32 of the German Copyright Act – Remuneration upon Conclusion of the Contract
Section 32 of the German Copyright Act (UrhG) applies from the very beginning. It applies if the remuneration was already unreasonable at the time the contract was concluded.
Scope of the claim
You can request:
- Amendment of the contract
- Payment of reasonable compensation
- Back pay for the difference
Evaluation criteria
In particular, courts examine:
- Market conformity
- Industry standards
- Scope of potential uses
- Economic significance
Practical significance
The claim under Section 32 of the German Copyright Act (UrhG) generally arises only once—namely, at the time the contract is concluded.
This means that if the compensation was too low at that time, you can adjust it retroactively.
Section 32a of the German Copyright Act – The "Bestseller Clause"
Section 32a of the German Copyright Act (UrhG) applies when the commercial success of a work develops only later.
It is therefore one of the most important protective mechanisms in copyright law.
Requirements
You are entitled to compensation if:
- Your compensation
- is conspicuously disproportionate
- to the income and benefits derived from the use
Special Features
- It does not matter whether the success was foreseeable
- The claim may also be directed against third parties
- The claim may arise on multiple occasions
Examples
- A song starts out with average ratings—and later goes viral.
- A movie becomes a cult classic years later.
- A social media video suddenly reaches millions of people.
Difference between Section 32 and Section 32a
§ 32 of the Copyright Act
- reviews the compensation upon signing the contract
- protects against initial underpayment
§ 32a of the Copyright Act
- reviews the compensation upon signing the contract
- protects against initial underpayment
Both regulations complement each other and together form a robust protection system.
Does this sound like you?
If you feel that your compensation was not adequate, you should have your situation reviewed.
This is how we enforce your rights
Structured process — often involving a multi-stage lawsuit.
Information
How was your work used?
Financial reporting
Disclosure of Revenue
Rating
Is there a breach of contract?
Enforcement
Negotiation → Mediation → Lawsuit
What our clients say
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