Derivative Work
Is a new creation that makes use of existing works. Derivative works include novel and useful improvements on inventions.
E.g. Music recordings or videos that include samples of other songs or videos are derivative works.
Another example: an innovative interpretation of an existing work, such as an innovative cover of a song, or a modern-day interpretation of classical literature, or a parody of an existing performance art.
Derivative Work
A derivative works is any creation that includes elements from one or more pre-existing works, each of which might have its own IP protection. The existing works might be used as is or might be adapted.
The new content in a derivative work is, on its own, intellectual property and is entitled to its own copyright protection.
Thus, their own patent protects improved inventions where the improvements are sufficiently novel, and non-obvious. Similarly, copyright protects derivative works of expressive works. However, in all cases, the creator of a derivative work is still subject to the copyrights and patents of the works that are used.
Derivative vs. Collective Work
The main difference is that a collective work uses all of the existing works “as is”, whereas in a derivative work, some of the existing works might be modified or adapted in some way.