the negotiation, the client would become informed about the law. In this, section 13(2) is efficient in that it creates an incentive for more informed parties to share that information with less informed parties. As there is greater symmetry of information between the parties, transaction costs are less and bargaining is easier. However, if the photographer is the first owner of the copyright, he has no need to ask his client about purchase of the copyright and consequently it is unlikely that the client will learn about the copyright on the photographs. Exceptions to section 13(1): Section 13(3) Section 13(3) of the Copyright Act addresses the subject of work made in the course of employment. In summary, the provision states that if a given copyrightable work was made in the course of employment, the first owner of the copyright is not the author of the work but is instead the employer in question unless there was an agreement to the contrary. There are many exceptions to this general rule such as exceptions for freelancers, journalists, and academics. Section 13(3) and the Coase Theorem It is more efficient for the employer to have the copyright ownership of the work because the employer is probably better organized to put that work to the most productive use. Consequently, even if the default rule did not give the copyright ownership to the employer, the employment contract would probably provide that the employer has the copyright. Freelancer's exception The exclusion of the work authored by freelancers from the rule in section 13(3) is not so much an exception from the rule as an application of the rule, because freelancers are not deemed to be employees under contracts of service. Consequently, the effects of section 13(3), which apply only to works authored by employees under contracts of service, would not apply to freelancers and section 13(1) will apply normally instead. One legal issue in relation to this application of section 13(3) is to decide on the facts of each case whether a given relationship is an employer-employee relationship under a contract of service, or is rather a relationship between one business man and another, a relationship between a buyer and a freelance independent contractor. David Vaver suggests that this factual determination would be made "according to familiar principles of labour law to determine if she is in business on her own account or is carrying on