9 Must-Haves for All Work for Hire Agreements (When Hiring a Creative)
Are you having a creative create something for you or your business, like logos, other graphic designs, photos, videos or music? Then you need to know about these essentials all work for hire agreements have.
Are you hiring a creative, like a photographer, musician, graphic designer, content creator, or copywriter, as an independent contractor to create something for your business? For these projects, you need work for hire agreements.
Hiring a professional creator can take your business to the next level, but if you're anything like me, you want to ensure you become and remain the sole owner of the creative work. As a lawyer myself who drafts work for hire agreements for entrepreneurs like you hiring creators, I am giving you the ultimate guide to the key terms you need to safeguard your ownership rights.
You will learn all about the key terms all work for hire agreements must have, including the specifics on the work for hire clause and work for hire examples, so you know exactly what you need in your work for hire copyright agreement template.
After learning all about the crucial terms for work for hire agreements, you will have sole and full ownership of all the creative work created for you and be fully protected!
This post is all about the essential terms all work for hire agreements must have to protect your rights to the work creatives make for you.
Work For Hire Agreements
Work for hire meaning
You may not know what the "work-for-hire" actually means. So, before I get into what you need in your work for hire agreements, let me explain the work for hire meaning.
"Work-for-hire" is a legal doctrine that determines who owns the intellectual property created in the case of employment or a contract with a third party, whether it be a contractor, freelancer, or any other person or business.
Generally speaking, work for hire means that the employer or hiring party (the client) will be the owner of the work created by the employee or contractor instead of the employee or contractor who is the creator of that work.
Basically, there are two categories of work that are considered work for hire:
Works created under employment: When an employee creates something within the scope of his/her/their work or job, the main rule (there are always exceptions) is that the employer automatically becomes the owner of that work. For example, when a graphic designer employed by a company creates a logo for the company. That is not the case if the employee creates something outside the scope of their employment. For example, if the graphic designer were to draw a picture for a friend during the weekend.
Works created under contract (a.k.a., work for hire agreements): When the creator is not an employee but hired by someone as a third or an external party, and there is a written agreement, that has a specific work for hire clause or an intellectual property clause, then the hiring party or client becomes the owner of the work created by that creator. The agreement must, however, be in writing and clearly state that the hiring party/client becomes the owner of the work commissioned. Such agreements are called work for hire agreements.
The work for hire doctrine is a general concept, and there are always exceptions to the rule. Also, different countries have different rules on the work for hire meaning.
To learn more about what work for hire agreements are, read this blog post on What Is a Work For Hire Agreement | The Ultimate Guide (Including 6 Key Essentials).
Work for hire examples
So, now you know what the work for hire doctrine is, but the best way to understand the meaning behind a concept is through examples. What should we be thinking of when we are talking about the "work" or the "creation"? What is considered "creative work"? What is the true work for hire meaning?
Here are some work for hire examples for you:
Content creation: one thing every business needs is content, whether that be for the website or social media. Think of any type of content, like articles and blog posts for your website, Reels, TikToks, LinkedIn posts, and marketing materials for FaceBook ads. This is all considered "creative work". When you hire a contractor or freelancer or a whole agency to create content for you, you need work for hire agreements specifying that the content they create for you is considered work for hire, so you become the owner of that content.
Software development: When hiring a software developer to create software for your business, the software's code and design are considered "creative work" created by the software developer. You want to ensure that you are the owner of all components of that software and include a work for hire clause in your agreement stating that the software and all parts of it, including the code, are considered work for hire.
Graphic design: Most businesses need a logo and a website. You could either create those yourself on something like Canva or hire someone to create those for you. Logos and website designs are "creative works" for which you need work for hire agreements specifying that their work is considered work for hire, and any creations made under that agreement, including the drafts, will be owned by you.
Advertising campaigns: At some point in your business, you may hire a marketing company or creative agency to make social media or traditional advertisements, flyers, slogans, or other marketing and promotional materials for you. This is often not considered, but these ads, slogans, promotional texts, etc., are also "creative works" which should be on the basis of work for hire, so you become the owner of those works and in full control of your advertising (and the agency can be restricted from using those marketing materials for its other clients).
For more work for hire examples, read this blog post on What Is a Work For Hire Agreement | The Ultimate Guide (Including 6 Key Essentials).
Work for hire vs independent contractor
Now, when you hire an independent contractor or freelancer to do work for you, whether on a project basis or an hourly, freelance basis, you would call the contract with such contractor or freelancer a contractor agreement or freelance agreement. This wording may be a bit confusing. You may wonder what is a work for hire vs independent contractor.
Work for hire agreements are actually just contractor agreements.
Like all other contractor and freelance agreements, work for hire agreements are legal contracts outlining the relationship between the hiring party and the contractor or freelancer. These agreements include the contractor's scope of work, timelines, fees, cost reimbursements, termination grounds, confidentiality, allocation of liabilities, etc.
However, work for hire agreements have the extra element of a work for hire clause, which determines that the hiring party or client receives full ownership of the work the contractor/freelancer creates. This is not necessarily the case for all contractor or freelance agreements. In work for hire agreements, specifically, you, as the client, and the contractor, agree that whatever the contractor creates under the contract, you become the sole owner of that creation.
So, whenever you hire a creator to create something for you, you want a work for hire agreement.
Work for hire clause & essentail terms
So, now you know what work for hire agreements are; now we can get into detail about what the crucial terms are for your work for hire copyright agreement template. Here are the crucial elements of your work for hire agreement:
Scope of Work: This part is often not properly done, while it is the most crucial part of work for hire agreements. You need an explicit definition of the work the creator will deliver. However, often this is described very vaguely, ultimately creating confusion about what exactly is being delivered and, thus, who has ownership over what.
Ownership: While the most crucial part is defining the "work", the intellectual property provision is the fundamental part of work for hire agreements. The IP provision should specify that the client or hiring party will have all rights to, title to, and interest in the work created by the creator, not just the end product or result but also all the drafts. It should also extend to derivative works so everything is covered.
Explicit assignment: The IP provision must explicitly state that the creator will assign or transfer all rights to, title to, and interest in the work to the client. This ensures that you actually receive the ownership of all the work created.
Moral rights waiver: Your contract should also include a waiver of the creator's moral rights. Moral rights are personal rights that protect the creator's reputation and integrity concerning the creation. The waiver allows you to edit, modify, alter, amend and use the work without your contractor's consent.
Warranties: Since you are hiring a creative to create something for your business specifically, you want something that is completely original. You don't want the contractor to steal someone else's work for your business. Therefore, work for hire agreements should contain warranties stating that the work created by the contractor is original and does not infringe on any third party's (intellectual property) rights.
Compensation: The terms of compensation are essential for any contractor agreement. You must specify the compensation method (a flat fee, hourly rate, or milestone-based?). But specifically, in the case of work for hire agreements, you should state that the contractor receives no additional compensation for transferring and assigning intellectual property rights. The compensation provision should state that any costs of such transfer and assignment are considered included in the fee.
Confidentiality: When hiring a creator to create something for your business, you will likely share confidential information about yourself or your business with them. For example, that is especially true if they are carrying out marketing activities for your new products or services. Therefore, you need comprehensive confidentiality provisions to protect yourself. A confidentiality provision ensures that your contractor will maintain strict confidentiality and not disclose any information about you or your business processes to anyone. Also, ensure that the creator is obliged to either return or destroy any confidential information or documents at the end of the project.
Termination: Although we do not like to think about terminating a project for any reason, you need to have all protections in place if a project goes wrong. You need to have outlined all the circumstances under which you can terminate the agreement and the procedures you both need to follow. For example, when a project is terminated, your contractor should have the obligation to ensure the next person receives all the materials and information it needs to finish the project.
Allocation of damages: Not only do you want your contractor to warrant that the work is original, but your contractor should also be fully liable if it turns out that a third party's rights have been infringed (without the contractor's knowledge even). In that case, your contractor should indemnify you and hold you harmless for all legal claims, damages, or losses arising from the project. The contractor is ultimately the creator, so they should be responsible for such damages.
Work for hire copyright agreement template
So, now you know about all the essential terms for work for hire agreements. Perhaps you already have a work for hire copyright agreement template and just want to ensure it has all the essentials. However, if you are looking for a work for hire copyright agreement template, I sell work for hire agreements in my contract shop! If you hire a creator on a freelance or contractor basis, I sell a client-friendly work-for-hire agreement, ensuring you have all the rights you need. You can find my client-friendly contractor agreement on this page of my contract shop.
My contractor agreements are easy to use for anyone. It has all the guidance you need, whether you are experienced at contracting, or this is your first time hiring a contractor.
This post was all about the crucial terms all work for hire agreements must include for those hiring a creative contractor.
Are you hiring a creative contractor? Get your work for hire copyright agreement template on this page of my contract shop!
Want to learn about work for hire agreements? Then read this blog post on What Is a Work For Hire Agreement | The Ultimate Guide (Including 6 Key Essentials).
Asking a (UGC) creator to create content for you to use yourself? Then you need a content creator agreement. Learn more 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.
