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In this segment, Sky Morton discusses copyright transfers under U.S. law, using the "baloney theory of copyright" to illustrate how copyright can be divided into various exclusive rights. When a copyright owner transfers exclusive rights (e.g., to exploit a video in a specific location for a limited time), they are essentially conveying an interest in the copyright. This exclusive transfer must be documented in writing and signed by the copyright owner. In contrast, a non-exclusive grant of rights constitutes a license. The owner of a copyright retains all rights not explicitly transferred.