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In this segment, Sky Morton discusses copyright transfers under U.S. law, referring to the "baloney theory of copyright," where copyright can be divided into numerous pieces. When an exclusive right is transferred, such as the right to exploit a video in a specific location for a limited time, a portion of the copyright is assigned to the recipient. This is distinct from a license, which is a non-exclusive grant of rights. Exclusive grants must be in writing and signed by the original copyright owner. Owning copyright means retaining all rights that have not been transferred. An example follows to illustrate these concepts.