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In this segment, Sky Morton discusses copyright transfers under U.S. law, referring to the "baloney theory" where copyright can be divided into infinite pieces. When exclusive rights of copyright are transferred, it means an interest in the copyright is given to another party. For example, granting someone exclusive rights to exploit a video in a specific location for a limited time represents a transfer of interest. This differs from a non-exclusive license. All exclusive transfers must be in writing and signed by the original copyright owner. Owning copyright means retaining all rights not granted to others.