Do You Automatically Own Work Created by Freelancers?

Freelancing has enabled companies and clients to connect with some of the world's top talent. Let's say you have hired the services of a freelancer to design a logo for your brand. He delivered the final version. You loved their work. You make the final payment. You start using the logo on your website, business cards, and packaging.

The question is: Do you own the logo?

Let us get into the technicalities. Paying a freelancer does not mean you own the logo they created. The amount of payment made to the freelancer is not a factor. Under copyright law, as a general rule, the person who makes something owns it. This includes logos, websites, artwork, or source code of software. Until and unless you have a written contract that says you, as a client, will own the work (logo in this case), the freelancer owns the work and not you. Businesses that rely on freelancers (designers, writers, and developers) assume that once they pay the freelancer, they own the final work. Unfortunately, this is not how the law works. And you must not assume anything.

Why Freelancers Aren’t Treated Like Employees

When an employee creates something for their employer, the employer owns the work. Work done by an employee is considered "work made for hire."  Let us be clear that freelancers are not employees. They are independent contractors. This means that their work does not automatically belong to the person or business who pays them. How will you ensure that you own the work created by a freelancer?

You Can Own the Work—But Only with a Written Contract

The answer is pretty simple. It is a yes; however, it must be documented in writing. If you want to own what a freelancer creates for your business entirely, you must enter into a contract with the freelancer to that effect.

👉 Use an Independent Contractor Agreement that transfers ownership of work created by freelancers to your business.

The contract must set out that all rights in the work are assigned to you by the freelancer. Without this, you are only paying for limited use. You do not have full ownership of the work. Let's examine what can go wrong if you fail to secure ownership of the work.

What Happens If You Don’t Secure Ownership?

Imagine you hired the services of a freelancer. The freelancer developed software for your business. You want to sell your business, including the software. The buyers are very diligent. The buyer may ask if you own the source code of the software. You may think that you own it. Unfortunately, you entered into a contract with a freelancer regarding ownership of the source code. People who buy or invest in businesses want proof that you own everything, significant assets like software. You will lose a deal. Here is another problematic scenario. You hired a freelancer, and he used someone else's material to design a logo for you. If you fail to include this in a contract, ensuring the logo is his original work and that you do not own it, you will likely encounter a significant problem. You may even end up facing a legal battle. These are the risks no business wants. And what if the freelancer disappears or refuses to provide you with specific files? They may withhold high-resolution versions of artwork. Or forget to send extra code components. If you don't control the work, you're depending entirely on them. That's not innovative business.

Avoid Risk: Make Sure the Contract Covers Everything

So, how do you avoid these problems?

Writing every little detail in the contract is the only solution. Remember, the devil is in the details. You must not rely on a few emails or WhatsApp messages. You must negotiate a contract and agree that the work is "made for hire" and that the freelancer is assigning all rights to your business. This may sound technical. However, this is the only way to ensure transfer of ownership of the work from freelancer to you. However, you must be clear in the language you use in the contract. You must not just mention the final work. You must ensure that the contract for transfer of ownership from freelancer to you includes every single part of the project, including unused drafts, layers of design, and everything that went into the final work.

👉 Our freelancer agreement checklist outlines the key terms and files you should request (including drafts, source files, and layered artwork).

Already Hired a Freelancer Without a Contract? Do This

👉 You can still protect your business using a standalone IP Assignment Agreement, which transfers rights even after the work is done.

Here is another problematic situation for you. If you have already worked with a freelancer and did not enter into a contract regarding the transfer of ownership of the work from the freelancer to you, there is good news: you are not out of options. All you have to do is ask the freelancer to sign a document known as an "IP assignment." It is a simple document (contract) that states they relinquish their rights to the work to you. The sooner you do this, the better.

Licensing vs Ownership: Know the Difference

Sometimes, freelancers may be unwilling to relinquish ownership rights. Instead, they may offer you a license. Licensure means that you are allowed to use the work, but the freelancer still owns it. This should not be an issue if the work is small or not a significant component of your business. However, it is an issue if it is your logo or main product design. It is necessary to own such a work outright. In the event you decide to go the license route, make sure the license is broad to cover situations you may contemplate. The license must permit you to use the work forever and in any way you wish.

Keep the Records — You’ll Need Them Later

It's important to remember that licensing is never as secure as owning the work outright. Once you have signed a contract, you need to maintain organized records. Keep contracts and intellectual property assignments secure, as this will be valuable during audits, acquisitions, or mergers. Proper documentation can significantly benefit your business. When drafting and negotiating a contract with a freelancer, ensure that it includes clear terms specifying that the freelancer is creating a "work made for hire."

If They Won’t Transfer Ownership, Walk Away

What should you do if a freelancer refuses to sign a contract that transfers ownership of their work? This situation prompts you to reassess your options. Many freelancers prefer to retain full ownership of their creations, which may not align with the needs of your business. It is crucial to find a freelancer who understands the importance of transferring intellectual property rights. Do not assume that you own the work simply because you paid for it; if a freelancer created it, they likely retain ownership. These considerations underscore the importance of having a contract in place to safeguard your business against potential future issues.

Please don’t leave it to chance. Our legal center guides you through the contracts that protect your ownership and ensure you receive what you paid for.

👉 Browse the full guide to Hiring Agreements here »