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In this segment, Sky Morton discusses copyright transfers under U.S. law, referring to it as the "baloney theory of copyright," which suggests copyright can be divided into infinite parts. When transferring exclusive rights, such as granting the right to exploit a video in a specific location for a limited time, an interest in the copyright is transferred. This differs from a non-exclusive grant, which is considered a license. Exclusive grants must be in writing and signed by the original copyright owner. Ownership of copyright entails retaining all rights not transferred to others.