In a previous article we wrote about a recent Court of Appeal decision relating to the status of intellectual property rights under the Property (Relationships) Act 1976 (‘Act’). The case, Alalääkkölä v Palmer [2024] NZCA 24, involved artworks created by Ms Alalääkkölä during her relationship with Mr Palmer.

The Court of Appeal found that copyright in the artworks was “property” for the purposes of the Act, and that it should be classified as relationship property, but that the copyright should remain in Ms Alalääkkölä’s exclusive legal ownership with Mr Palmer being entitled to a compensatory adjustment from other relationship property.

The Supreme Court has recently granted leave to Ms Alalääkkölä to appeal the Court of Appeal’s decision. The approved questions to be considered by the Supreme Court are whether the copyrights are in fact property for the purposes of the Act and whether they are relationship property.

It will be interesting to see what the Supreme Court ultimately decides. In the meantime, the best way for artists and other creators to retain copyright and other intellectual property rights as their separate property is via a relationship property agreement. 

Daniel McLaughlin, a Special Counsel in our Private Wealth team, and Nadia Ormiston, a Senior Associate in our Intellectual Property team, wrote this Alert.