What Happens If You Break Copyright Law In NZ?

If you run a small business, you’re probably creating (and sharing) content every day - social posts, website copy, product photos, design files, proposals, training documents and more.

It’s easy to assume that because something is online, you can reuse it. Or that a quick tweak (“we changed a few words”) makes it safe. Unfortunately, that’s exactly how many businesses end up facing a copyright complaint.

In New Zealand, copyright is a serious legal right. If your business uses someone else’s work without permission, you could be asked to take it down, pay damages, hand over profits, cover legal costs - and in some cases, face criminal consequences.

Let’s walk through what copyright infringement is, what could happen if it occurs, and how you can build practical protections into your day-to-day business operations. This article is general information only and isn’t legal advice.

What Is Copyright Infringement (And Why It Catches Businesses Out)?

Copyright protects original works, and in New Zealand it’s mainly governed by the Copyright Act 1994. The key thing to know is that copyright is usually automatic - meaning the creator generally doesn’t need to “register” it for it to exist.

Copyright infringement happens when someone uses a copyright-protected work without permission (and without a legal exception applying). For businesses, infringement often isn’t malicious - it’s usually a result of rushed marketing, outsourcing, or unclear licensing.

What Kinds Of “Works” Are Protected?

Copyright can apply to a wide range of business-related content, including:

• Website copy, blogs and marketing content
• Photos (product photos, lifestyle imagery, headshots)
• Videos (including reels/short-form clips)
• Artwork and designs (logos, illustrations, packaging artwork)
• Music and sound recordings used in promotions or in-store
• Software, code, and digital assets
• Training materials, manuals, proposals and templates

“But We Found It On Google” Isn’t A Defence

This is the most common trap. A work being publicly accessible doesn’t mean it’s free to use, and it doesn’t mean the owner has given permission for commercial use.

For many businesses, the risk shows up in routine activities like:

• using images found online for ads or a website banner
• reposting someone’s content to promote your business
• copying a competitor’s wording because “it explains it perfectly”
• buying a “template” and assuming it includes proper rights
• outsourcing marketing and assuming the agency has cleared licences

Even where you’ve paid someone (like a designer or photographer), you should still check what rights you’ve actually received - because “I paid for it” doesn’t always equal “I own the copyright”.

What Could Happen If Your Business Infringes Copyright?

If your business is accused of copyright infringement, the impact can range from an annoying takedown request to a very expensive legal dispute. The outcome depends on what was used, how it was used, whether it was commercial, and how you respond once you’re on notice.

1) Takedown Demands And Business Disruption

Often the first step is a demand to remove the infringing material. This might come directly from the rights holder, their agent, or their lawyer.

Even if it’s “just” a takedown request, it can disrupt your business by forcing you to:

• remove or redesign marketing materials quickly
• pause ads or campaigns mid-flight
• reprint packaging, signage or menus (which can get expensive fast)
• pull products from sale if packaging/artwork is implicated

If you rely on your website for sales, being forced to remove key content can also hit revenue immediately.

2) Legal Claims For Damages (And Sometimes Profits)

A rights holder may seek financial compensation. Depending on the circumstances, remedies can include:

• damages (compensation for loss suffered)
• an account of profits (handing over profits attributable to the infringement)
• legal costs (the other party may seek costs if proceedings are filed and they succeed)

Even if you didn’t intend to infringe, the commercial use of someone else’s work can still create real exposure for your business.

3) Injunctions And Court Orders

In serious disputes, a rights holder can seek an injunction (a court order requiring you to stop the infringing activity). Injunctions can be particularly painful when they affect:

• your product launch timeline
• your ability to keep selling a product line
• your ability to use branding assets you’ve already built around

The court can also order “delivery up” (handing over infringing copies), which might apply to physical stock, printed marketing materials, or digital files.

4) Reputational Damage And Platform Consequences

Copyright disputes aren’t just legal - they’re commercial. A claim can:

• hurt trust with customers (especially if it looks like you “copied” someone)
• create conflict with collaborators, distributors or retailers
• lead to social media account restrictions if platforms receive repeated complaints

If you operate online, it’s also common for platforms and service providers to act quickly when they receive complaints.

5) Criminal Penalties (In The Worst Cases)

Most small business issues are dealt with as civil disputes. However, the Copyright Act also includes offences that can apply in limited circumstances - typically where infringement is knowing and involves dealing with infringing copies on a commercial scale (for example, selling pirated copies, or importing/distributing infringing material).

Criminal consequences can include significant fines and, in some cases, imprisonment. Whether criminal liability is realistically in play depends heavily on the facts, so if you’re anywhere near a higher-risk scenario (like reselling digital products, distributing content at scale, or importing branded material), it’s worth getting specific legal advice early.

Common Copyright Infringement Scenarios For NZ Small Businesses

Copyright infringement isn’t limited to “creative” businesses. It can show up in almost any industry - retail, hospitality, trades, professional services, tech, e-commerce and health.

Using Photos Without The Right Licence

This includes:

• using images found on search engines
• using supplier/manufacturer images without permission (or outside the supplier’s allowed scope)
• using photographer images outside what you paid for (e.g. using “event photos” for paid ads)

If you film or photograph customers, staff, or members of the public, you’ll also want to think about permissions from the people in the content (that’s a separate issue to copyright). A Photography/Video Consent Form can help set expectations and reduce disputes.

Copying Website Copy, Product Descriptions, Or Blog Content

It’s tempting to use a competitor’s description as a base and “rewrite it later”. But copying and lightly editing text can still be infringement, and it can also create risks under the Fair Trading Act 1986 if it misleads customers about what you do or what you sell.

Posting Content On Social Media That Includes Protected Audio/Video

Short-form content is a huge growth channel for small businesses - but it’s also where people get caught out.

Copyright issues can pop up when you:

• use music without the right permissions in promotional videos
• repost a creator’s video as your own marketing
• use “before and after” images from another business

Software And Digital Tools Used Outside Licence Terms

Software infringement isn’t just “pirated software”. It can also include using software beyond what your licence allows (for example, installing a single-user licence across a team, or reselling a digital product you don’t have rights to).

If you create or distribute software, or you’re licensing software to customers, having a clear Software Licence Agreement can help set who owns what and what users are allowed to do.

Assuming Contractors Automatically Transfer IP To You

If you hire a designer, photographer, videographer, developer, or copywriter, the default legal position may be that they own copyright (unless your contract says otherwise).

That means you could be in a situation where you’ve paid for work, built your branding around it, and later find out you don’t have the rights you thought you had.

For some businesses, the solution is to use a tailored IP assignment or licensing arrangement - for example, a Copyright Licence Agreement to clearly document how you’re allowed to use the work.

How To Reduce Your Risk Of Copyright Infringement

The goal isn’t to make your business afraid to create content - it’s to build simple systems so you can market confidently, knowing you’re not accidentally stepping on someone else’s rights.

1) Keep A “Content Paper Trail”

For every key asset (images, logos, videos, copy, templates), keep records of:

• who created it
• when it was created
• what you paid for
• what licence terms apply (if any)
• emails/messages granting permission (where relevant)

This makes it much easier to respond quickly if someone alleges copyright infringement.

2) Use Proper Licences (And Actually Read Them)

If you use stock assets, fonts, music, or templates, check:

• whether commercial use is permitted
• whether the licence covers paid ads (not just organic social)
• whether you can modify the work
• whether the licence is transferable (important if you sell your business)
• whether there are attribution requirements

If you’re not sure whether the licence really covers your use case, it’s worth getting it checked before you build a whole campaign around it.

3) Put The Right Clauses In Your Contractor And Agency Agreements

When you outsource marketing, design, or development, make sure your agreement addresses:

• who owns the final deliverables
• what “pre-existing” tools/assets the contractor is using (and whether you can keep using them)
• warranties that the work doesn’t infringe third-party rights
• what happens if a third party brings a claim

This is one of those areas where generic templates can leave gaps - and those gaps usually only show up once there’s a dispute.

4) Be Careful With User-Generated Content And Testimonials

If customers send you images or reviews and you repost them for marketing, you should check you have permission to use that content commercially (and in the way you’re using it).

This is a good place to set expectations in your site terms. Clear Website Terms And Conditions can help manage how users can interact with your platform and what rights you have to repost content (depending on your business model).

5) If You Collect Personal Information, Don’t Forget Privacy

Copyright and privacy are different issues, but they often overlap in real life - for example, where marketing content includes identifiable individuals.

If you collect customer data through your website, mailing list, bookings or enquiries, you’ll generally need a Privacy Policy to explain what you collect, how you use it, and who you share it with (under the Privacy Act 2020).

This won’t “solve” copyright issues, but it helps you build overall marketing compliance from day one.

6) Get Advice Before You Launch A High-Visibility Campaign

If you’re about to invest real money into a launch (ads, influencers, packaging, a new website), it’s smart to do a quick legal check of your key assets first. That’s often far cheaper than rebuilding things after a complaint lands.

If you need tailored help assessing risk, a Copyright Consult can give you clarity on what you can use, what permissions you need, and how to clean up risk areas before they become a bigger problem.

What To Do If You’ve Been Accused (Or You’ve Found Infringement)

Getting a copyright infringement email can feel stressful - especially if it threatens legal action or demands a quick payment. The key is to act promptly, but not react emotionally.

Step 1: Don’t Ignore It

Silence can make things worse. If infringement is ongoing and you’ve been put on notice, continuing to use the work may increase your exposure.

Step 2: Preserve Evidence And Figure Out What Happened

Before you change everything, capture the current state (screenshots, URLs, dates). Then work out:

• what content is being complained about
• where it came from (employee, contractor, agency, supplier)
• what permissions or licences you have (if any)
• how widely it’s been used (website, ads, packaging, print materials)

Step 3: Consider A Temporary Takedown While You Investigate

If the claim looks credible and you’re not sure about your rights, it may be sensible to temporarily remove the content while you investigate. This can also show you’re acting reasonably (which can help de-escalate the dispute).

Step 4: Get Legal Advice Before You Admit Liability Or Pay Anything

Some demand letters include settlement amounts or specific wording they want you to agree to.

Be careful here: a rushed response can accidentally admit liability, agree to unreasonable terms, or lock you into ongoing obligations that don’t suit your business.

If you need to respond formally, it’s worth having a lawyer review the claim, help you assess whether it’s valid, and draft a response that protects your position.

Step 5: If You’re The Rights Holder, Act Strategically

If someone has copied your work, you’ll usually want to act quickly, but commercially. Your options might include:

• sending a takedown request
• requesting attribution or licensing fees
• seeking undertakings to stop future use
• considering court action in serious cases

The “right” approach depends on what’s been copied, the damage to your business, and whether the other side is likely to cooperate.

Key Takeaways

• Copyright infringement can affect almost any NZ business, because copyright applies automatically to many everyday assets (images, copy, videos, designs and software).
• Breaking copyright law can lead to takedown demands, campaign disruption, damages claims, injunctions, and reputational damage - and in more serious cases, criminal offences may be relevant.
• Common risk areas include using online images without permission, copying website text, using music in marketing without rights, and assuming contractors automatically transfer IP to you.
• Practical risk reduction includes keeping clear records of where assets came from, using correct licences, and having contracts that clearly deal with ownership and permitted use.
• If you receive a claim, act quickly but carefully: preserve evidence, consider a temporary takedown, and get legal advice before admitting liability or paying settlement demands.

If you’d like help responding to a copyright complaint, putting the right licences in place, or tightening up your contracts and content process, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.