What Is a Work For Hire Agreement | The Ultimate Guide (Including 6 Key Essentials)
What is a work for hire agreement? I'm telling you all you need to know about the work for hire agreement and what you need in your contract when hiring a creative.
Are you hiring an independent contractor who is a creative, like a photographer, graphic designer, content creator, copywriter or illustrator? Then, you need a work for hire agreement.
You are hiring a creative contractor or freelancer to create something for you, and if you're anything like me, you want to know exactly what you need to get or keep the rights to that work so it's completely yours. As a lawyer myself who drafts work for hire agreements for entrepreneurs hiring contractors like you, I am giving you the ultimate guide to what is a work for hire agreement.
You will learn about what is a work for hire agreement with work for hire agreement examples and a clear overview of what needs to be in a work for hire clause covering work for hire copyright.
After learning all about what is a work for hire agreement and the essentials you must have in your contractor agreement, you will know how to get or keep the rights to the work that the contractor created for you!
This post is all about what is a work for hire agreement and everything you need to protect your rights to the work the creative made for you.
What Is a Work For Hire Agreement
Outsourcing and collaboration with contractors and freelancers have become increasingly popular over the years. When it comes to outsourcing creative work to contractors, such as content creation for social media, developing software, or graphic design, companies but also solopreneurs often hire contractors or external agencies for their specific expertise. When hiring a contractor for that kind of creative work, you must understand and implement work-for-hire agreements to establish clear ownership of the intellectual property that your contractor creates and to protect your intellectual property rights. So, what is a work for hire agreement? And why is it essential for you?
Work for hire copyright
A work for hire agreement, also called a "work made for hire" agreement, or a WFH agreement, in short, is actually just a contractor agreement.
Like any other contractor agreement, it is a legal contract outlining the relationship between the hiring party and the contractor. It includes the contractor's scope of work, the timelines, the fees and costs, terms of termination, allocation of liabilities, etc.
However, in the case of a work for hire agreement, the emphasis is put on the ownership of intellectual property as, in the case of "work-for-hire", you are hiring someone that is not only working for you as any other contractor but that work, the contractor is creating something for you. That person is the creator of the work. In a work for hire agreement, specifically, you, as the client, and the contractor, agree that whatever the contractor creates in the work done for you, you become the sole owner of the creation.
This type of contract specifies that the hiring party (or client) is considered the legal author and copyright owner of the work produced by the contractor.
Why is it essential that you have a contract that specifically states that you, not the contractor, become the owner of the work? You hired that person to create the work for you, so you should automatically be the owner of that work, right?! Wrong! Under traditional copyright law, the creator of the work automatically becomes the owner of that work, regardless of whether they are creating that work for themselves or others. Only in the case of an employee creating work for the employer in its capacity as an employee does the employer become the owner of that work. Even then, that's not always the case, but that is another subject. When hiring a contractor or freelancer, copyright law grants automatic ownership to the contractor or freelancer.
That is why you must ensure you have a written agreement stating that the copyright (and all other intellectual property rights) to that work will become yours.
Work for hire examples
Some examples of cases in which you are hiring a contractor or freelancer and need a work for hire agreement are the following:
Software Development
When you hire a software developer to create a software application for you or your business, you want to ensure that you retain ownership of all parts of the software developed. A work for hire agreement is essential to receive the ownership of the end product but also all the previous versions of the software, including prototypes and any associated intellectual property. That way, you will protect your investment every step of the way (instead of just assigning the intellectual property rights of the end product at the very end. The proper work for hire clause will also protect you in case the software developer does not finish the application.
Graphic design
You could also hire a freelance graphic designer to create either a new logo or other design elements of your brand or your website. You want to have full ownership of that artwork.
Just like in the case of a software developer, you want to have ownership of the end design that you ultimately choose, but also the previous drafts, say your logo. By using a work for hire copyright agreement template, you are ensured of having full ownership of your brand graphics.
Content Creation
Media companies often employ writers, photographers, or videographers on a project-by-project basis to generate content. In such cases, a work for hire agreement ensures the company has exclusive rights to the material, allowing them to distribute, modify, and monetize it as needed.
Work for hire clause
So, now you know what is a work for hire agreement and why you need it, you may wonder what needs to be included in a work for hire clause.
A work for hire clause is a provision in the work for hire agreement that defines the ownership of intellectual property rights in the work created by the contractor or freelancer. Usually, there is not one specific clause in which all elements are included. Certain elements may be included in other clauses. Also, the specific details of a work for hire clause may vary depending on the nature of the work, whether it be a software application, logo, social media content, video, presentation, illustration, or product. But, typically, the work for hire clause includes the following elements:
Definition of "Work for Hire": The work for hire clause or other section in your work for hire agreement should state what is a work for hire agreement. It should clearly state that the work the contractor creates will fall under the category of "work for hire".
Ownership of Intellectual Property: The work for hire clause should specify that you (the client or hiring party) will be the sole and exclusive owner of the creation and all rights contained in the creation, including copyrights, trademarks, publicity rights, and any other intellectual property rights.
Assignment of Rights: The work for hire clause must also explicitly state that the contractor or freelancer (the creator of the work) will assign or transfer all rights, title, and interest in the work to you. This ensures that you actually receive the ownership of all the work created.
Scope of Work: The work for hire clause should describe the specific work to which it applies. Also, specifically state that the drafts and any previous versions of the work are also assigned to you (automatically by way of the contract). This ensures that you have complete control every step of the way and full ownership of the work, even if it is not finished.
Consideration and Compensation: The work for hire clause should also state that the contractor receives no additional compensation for transferring and assigning intellectual property rights. The compensation for such transfer and assignment must be considered included in the fee you are paying the contractor.
Moral Rights Waiver: The work for hire clause should also include a waiver of the contractor's moral rights. Moral rights are personal rights that protect the creator's (in this case, the contractor's) reputation and integrity in relation to the creation. The waiver allows you to edit, modify, alter, amend and use the work in any way you want without needing the contractor's consent.
A more detailed explanation of each element in a work for hire clause and what other essential terms are included in a work for hire agreement will be provided in my next blog post.
Work for hire copyright agreement template
So, now you have learned everything about what is a work for hire agreement. I've also given you an overview of everything you need in your work for hire agreement. I can imagine that this list might be a bit overwhelming. If you are looking for a work for hire copyright agreement template, I sell templates in my contract shop for both clients hiring contractors and contractors themselves! My contractor agreement template for those hiring contractors includes all the essentials (and more) that clients need to ensure they receive and keep all the intellectual property rights they need.
My contractor agreements are easy to use, fully customizable to your (copyright) needs and can be used digitally, so hiring a contractor on a work for hire basis can be done quickly and smoothly.
You can get your work for hire copyright agreement template on this page of my contract shop!
Work for hire agreement template free
Maybe you are not able to purchase a work for hire copyright agreement template. If you prefer to grab a Work for hire agreement template free of charge online, you can use the overview I've given to ensure that your work for hire copyright agreement template includes all the essentials you need. Since it is a free version, it will probably not include everything on this list, so you can either have the missing terms added to your free template or buy one to ensure you have the rights and protections you need!
This post was all about what is a work for hire agreement and the essentials you need in your work for hire agreement.
Are you hiring a contractor on a work for hire basis? Then you need to get your work for hire copyright agreement template here!
Are you asking someone else for a license to their existing content? Then you need to read this blog post on What Is a Content License Agreement | The Ultimate Guide (Including 11 Key Essentials).
What about when you are asking a creator to create content for you to use yourself? Then you would need a content creator agreement. Learn everything you need to know about the content creator agreement in this blog post on the 7 Key Terms Every Content Creator Contract Must Have for Content Creators and Brands.
