Which warranty states that there has been no prior authorization, production, or copyright anywhere in the world?

• A. No Encumbrances
• B. No Infringement or Defamation
• C. No Prior Exploitation
• D. Original Work

Answer: (C)

No Prior Exploitation is the warranty that covers the idea that there has been no prior authorization, production, or exploitation of the work anywhere in the world. In entertainment deals, this warranty protects the licensee by affirming that the rights being granted aren’t already spoken for through previous licenses, productions, or other uses that could undermine the granted rights or create conflicting obligations in different markets. The global scope is key—parties want assurance that there isn’t an undisclosed prior deal in any country or medium that could cut into exclusivity, create competing copyrights, or affect royalties and upside.

If this warranty were false, the licensee could face challenges like competing rights, reduced control, or unexpected liability for prior uses. That risk is precisely what the warranty is designed to allocate away from the licensee and onto the licensor.

The other options don’t fit as well. No Encumbrances deals with liens or security interests that burden the rights. No Infringement or Defamation addresses whether the work itself infringes others’ rights or harms reputations. Original Work asserts originality but doesn’t speak to prior exploitation or prior licenses worldwide.