Usage Rights: What They Are and Why They Matter

If a person – natural or legal – is permitted to use another person’s property or rights, then that person has been granted the right to use them. This is also referred to as usufruct. Ownership does not pass to the person using the property, but remains with the original owner or creator of the work. The extent to which the user may use the property and the consideration for which the user is entitled to use the property is regulated by a contract.

Use rights are used for objects and things, but also apply to intangible assets. You may have already encountered usage rights in your everyday life in the following situations, among others:

• Using a song to create a video or presentation
• Reprinting images or designs
• Renting an apartment, property, or other use of land
• Renting movable property, such as a sound system

A very common right of use for many people is connected to their rented apartment. When a tenant signs a rental agreement, they are granted the rights to use the apartment. The landlord is still the owner of the apartment or property. They simply grant it to the tenant for use – the price, conditions, and duration are specified in the rental agreement.

A special case is the right of residence. This often occurs when the owner wants to sell or donate their property, but retains a (often lifelong) right of residence. If a property is to be offered for sale, this usually reduces the attractiveness of the property.

The right of residence is often used in a family situation. For example, it is common for parents to retain the right of residence when they gift the family home to their children. This usually applies for life; the parents may continue to live there, but are no longer the legal owners.

The situation is different again with usufruct rights. Let’s assume the same situation: The parents gift the house to their children. Ownership also passes to the children, but the parents retain the right to receive the rental income.

The duration of a right of use should always be specified in the appropriate contract. In exceptional cases, it may be possible to terminate the contract before its expiration. In a rental agreement, for example, the owner can revoke the right of use early in certain situations. However, tenants are protected to a certain extent, which is why serious reasons must exist.

This could include arrears in payment, an insult, or a physical altercation between the landlord and tenant. Even if the apartment is in an unacceptable condition and its value could therefore decrease, early revocation of the right of use is possible.

Since rights of use can affect a wide variety of material and non-material things, the relevant laws can be found in various legal texts. The main applicable laws are the Swiss Code of Obligations (OR), the Swiss Civil Code (ZGB), and the Copyright Act (URG). Which law applies in an individual case depends primarily on the nature of the matter or the law. Among other things, the following paragraphs relating to rights of use can be found in the various legal texts:

• Rent Articles 253 et seq. OR
• Lease Articles 275 et seq. OR
• Condominium Articles 712 et seq. ZGB
• The entire Copyright Act (URG)

Usage rights can take many different forms. Their extent and precise conditions are stipulated in the contract (e.g., rental agreement, license agreement). Depending on the specific property, usage rights can be divided into contractual or real usage rights.

The distinction is often unclear. Usually, one can base oneself on the fact that real usage rights are somewhat more established than contractual ones. Examples of real usage rights include the right of residence or building rights.

Furthermore, usage rights can be divided into the following two categories:

• Simple usage right: Here, the owner retains even more rights. If it concerns a work of art, for example, the author may also use it or grant a license to others. Use is not reserved exclusively to one contracting party.
• Exclusive usage right: In this case, only the beneficiary is the sole person permitted to use the work in the manner granted in the contract. In the area of ​​house rentals, there may be an exclusive right of use for a tenant for certain structures, for example if a parking space is reserved only for her as the tenant.

One usage right that is an important part of our everyday lives is copyright. It protects authors and creators of literary and artistic works. It ensures that these works cannot be used, reproduced, and published by just anyone. These usually concern works of art, music, literature, or architecture.

Copyrights can either be held by a single artist or by a group of artists. If usage rights are to be granted to another party, the group of authors must decide collectively (see Article 7 of the Copyright Act).

Even if usage rights are granted temporarily or permanently, copyright always remains with the person who created the work. Article 2 of the Copyright Act precisely defines which works are generally protected by copyright. These include, among others, the following:

• Books and texts of any kind
• Photos, images, and all types of videos and films
• Music
• Artworks (drawings, paintings, sculptures, including scientific drawings and plans)
• Architectural artworks, architecture
• Choreographic works
• Unfinished works, sketches, and drafts

In principle, a person does not have to sell usage rights for their work. This is their intellectual property, which they can do whatever they wish with. Most artists and creators of such works choose to grant usage rights for financial reasons. This ultimately generates their income.

The details regarding the transfer of usage rights are determined in a license agreement. This contains all important information and general terms and conditions that protect both parties. The following points, among others, should be clarified there:

• Within what scope are the usage rights granted?
• What costs are due for the use of the works? (Amount, when, and how are they to be paid)
• For what period can the contractual partner exercise the usage rights?
• What geographical restrictions are there? (Can the works be used internationally?)
• On which media may the works be used? (e.g., can mugs with a print of the painting on them be sold?)
• Can the work be modified? (e.g., prints in different colors, remixes of a music track)

Authors and artists should carefully consider in advance how, where, and for how long they want their works published. The beneficiary may want to reproduce, modify, print, and publish them – usually to make a profit.

Please note: Copyright infringement is not a trivial offense! Authors can take legal action if they use their intellectual property without the appropriate rights. According to Article 62 of the Copyright Act, authors may claim damages and demand satisfaction or the return of profits.