Have you ever had a spark of inspiration at work, an idea you had to sketch out before it slipped away? Or wrestled with a problem all day, only to finally crack the solution just as you’re drifting off to sleep at home? And then comes the unsettling question: “Is this mine… or does it belong to the company?”
It’s one of the most common questions we get. And since nobody likes accidentally signing away their million-ringgit idea, let’s clear up the confusion today.
The Golden Rule: “Course of Employment”
Under Section 26 of the Copyright Act 1987, the rule for Malaysian employees is straightforward:
If you are an employee and you create something as part of your job duties, your employer owns the copyright.
The law views your salary as the payment for your creative output. So, if you are hired as a graphic designer and you design a logo for your company, the company owns that logo, not you.
However, there is a distinction, “Course of Employment”. Let’s look at a few examples to simplify things down
1. The “Side Hustle” at Work
You are a Software Engineer. During office hours, you use the company’s computer and software to code a mobile game for your own personal portfolio.
The company likely owns it. Because even though the app is for “personal use,” you created it during the time the company pays you for, using the tools they provided, doing the exact skill (coding) they hired you to do. Most employment contracts also have clauses claiming “all IP created during working hours.” At best, it’s a legal grey area; at worst, the company owns your game.
2. The “Overachiever” at Home
You are a Software Engineer. You are stuck on a difficult bug at work, so you go home and use your personal laptop and personal Wi-Fi to write a script that solves the company’s problem.
The company likely owns it. Because even though you used your own gear and your own free time, the nature of the work was to fulfil your job duties. You were hired to solve that problem. Therefore, the solution belongs to the employer.
3. The “Misplaced Talent”
You are a Software Engineer (hired strictly to code). However, during work hours, you use the company’s expensive design software to create a cool artistic logo or graphic design.
You likely own it. Because this falls outside your “Scope of Employment”. You were hired to write code, not to design graphics. Since creating art isn’t in your job description, the copyright technically belongs to you—even though you used the boss’s tools! But, while you may own the art, you can still get fired for wasting company resources.
The Secret Weapon: Moral Rights (Section 25)
Most people think “Copyright” is just about money—who gets paid when a copy is sold. But under Malaysian law (Section 25 of the Copyright Act 1987), copyright is actually split into two parts:
- Economic Rights: The right to make money (sell it, copy it, rent it).
- Moral Rights: The right to protect your reputation.
Even if your employer owns the Economic Rights (because they paid you), you, the human creator, usually keep the Moral Rights. These rights are personal to you and don’t automatically transfer just because the ownership did.
They come in two flavours:
- The Right of Paternity (The “Credit” Right)
This is your right to claim authorship. Even if the company owns the article you wrote, you have the right to say, “I wrote that.”
So, if a magazine publishes your photo, you can demand they include a credit line: “Photo by [Your Name].” They can’t just pretend it appeared out of thin air.
- The Right of Integrity (The “Respect” Right)
This is the big one. You have the legal right to stop anyone from distorting, mutilating, or modifying your work in a way that damages your honour or reputation.
Let’s say you are a serious architect and you design a beautiful, minimalist building for a client. The client owns the plans. However, if they decide to paint the building neon pink and add clown statues that make you look like a joke in the industry, you can potentially sue them for violating your Moral Rights.
The Bottom Line is you might have sold the work, but unless you specifically signed a contract giving up (waiving) these Moral Rights, they stay with you forever.
If you are about to sign a contract or hire a freelancer, and you aren’t 100% sure who will own the final product, let’s talk.
A five-minute review now can save you a five-month legal headache later. Contact us at Quality Oracle to answer your questions.
