DERIVATIVE

derivative,adj. Copyright. Of, relating to, or constituting a work that is taken from, translated

from,  adapted  from,  or  in  some  way  further  developed  from  a  previous  work.  •  Copyright

protection includes the exclusive right in  derivative  works, such as a screenplay adapted  from a

book, or a variant musical arrangement. See derivative work under WORK(2). [Cases: Copyrights

and Intellectual Property    12(3).]

derivative,n.1.  A  financial  instrument  whose  value  depends  on  or  is  derived  from  the

performance of a secondary source such as an underlying bond, currency, or commodity. — Also

termed derivative instrument.

“Derivatives transactions may be based on the value of foreign currency, U.S. Treasury bonds,

stock  indexes,  or  interest  rates.  The  values  of  these  underlying  financial  instruments  are

determined  by  market  forces, such  as  movements  in  interest  rates. Within  the  broad  panoply of

derivatives  transactions  are  numerous  innovative  financial  instruments  whose  objectives  may

include a hedge against market risks, management of assets and liabilities, or lowering of funding

costs; derivatives may also be  used as speculation for profit.” Procter & Gamble Co.  v. Bankers

Trust Co., [1996–1997 Transfer Binder] Fed. Sec. L. Rep. (CCH) ¶ 99,229, at 95,238 (S.D. Ohio

1996).

2. See derivative work under WORK(2). [Blacks Law 8th]