A chain of titles is an official record of ownership of a property or intellectual property, often established in reverse order. A title report is built by searching county clerk or deed register files and is required for ownership transfer or title insurance. Easements and non-ownership interests can also be shown in a chain of titles. Establishing a chain of titles for intellectual property involves copyright verification and proof of error and omissions insurance.
A chain of titles is legally defined as the official record of ownership of a property. Mostly, the term is used to refer to real estate records in which the “chain” is established in reverse order starting with the current owner and ending with the original owner. A chain of titles can also represent a history of the transfer of ownership to intellectual property to demonstrate ownership rights to a copyrighted film, piece of music, or other material.
In terms of real estate, a securities company builds its title report by searching county clerk or deed register files. This document is required to prove that the current owner has the exclusive right to sell the property to another party and is reviewed whenever ownership of the property is transferred or changed. Also known as an extract of title, this record is also required to obtain title insurance to protect against financial loss or liability due to errors in the title report or in the event that the property is ineligible for transfer due to a lien . The language used in securities reports to describe these events typically includes the phrases “transports” and “impediments.”
A chain of titles can also be used to show existing or equitable non-ownership interests in specific rights to a property, such as hunting, farming or lumber rights. Other rights outside tenure or ownership include easements, which grant another party the lawful use of property for a specific purpose. Examples of common easements described in title reports include access and development rights to a utility company for the purpose of maintaining service lines and making related structural improvements. In other cases, a neighboring property may be granted an easement in a title due to both properties sharing a common entry or exit path, such as a driveway.
Establishing a chain of titles in intellectual property usually involves many more components to clearly display and validate current ownership. For example, claiming ownership of a literary work or musical composition typically requires copyright verification. In the case of films and movies, participating actors are asked to sign a release to allow for commercial distribution of their images. Likewise, other contributors, such as choreographers and animation artists, release publicity rights to their work. Unlike a real estate title report covered by title insurance, however, an intellectual property chain is secured by proof of error and omissions insurance.
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