When you hire a freelancer, it’s essential to be clear about intellectual property (IP) rights. In the UK, the law assumes freelancers own their work unless the contract says otherwise. Setting out these details helps avoid misunderstandings and ensures everyone knows what they can and can’t do with the work.
The term “work for hire” is often used in contracts influenced by U.S. copyright law. It means that the hiring business, not the freelancer, owns the IP rights to the work created. This concept is especially common in industries like film, media, and tech, where contracts frequently follow U.S. templates.
However, in the UK and many other jurisdictions, the “work for hire” principle doesn’t apply. Instead:
In the UK: Freelancers retain ownership of their work unless the contract clearly states otherwise.
In the EU: Similar to the UK, creators’ rights are prioritised, and ownership only transfers if it’s explicitly agreed.
In the U.S.: “Work for hire” is standard if outlined in the contract, meaning the business owns the rights from the outset.
For businesses working internationally, it’s critical to adapt contracts to match local laws. A “work for hire” clause in a U.S. contract might not be enforceable in the UK unless additional terms are included.
Key Tips for Handling International Contracts
Check Jurisdiction: Always confirm which country’s laws apply to the contract.
Adapt Clauses: If using a U.S. template, revise it to reflect UK rules by explicitly outlining ownership and usage terms.
Be Specific About Rights: Clearly state whether the freelancer retains any rights or if ownership transfers fully to the business.
Intellectual property refers to the legal rights that protect things people create, like designs, written work, or inventions. It’s important to note that IP protects the rights to a creation, not the creation itself. For example, the script for a film is protected by copyright, but an idea or general concept for the film won’t be.
Not everything freelancers create is protected. Ideas, rough concepts, and unrecorded thoughts usually aren’t covered by IP law. Contracts need to be clear about what is protected to avoid confusion.
An IP clause is a part of a contract that explains who owns the rights to the freelancer’s work, how the work can be used, and whether the freelancer will be credited. Key points to include are:
Who owns the rights? Does the freelancer keep ownership, or does your business take over the rights?
How can the work be used? Are there limits on when or how the work can be used?
Will the freelancer be credited? Make it clear if and how they’ll be acknowledged for their work.
In the UK, the idea of “work made for hire” (used in U.S. law) doesn’t apply. Here, freelancers automatically own the rights to their work unless the contract clearly states otherwise. If you’re using contract templates influenced by U.S. law, be sure to adapt them to meet UK rules.
Your Business Owns the IP: You take full ownership of the work once the freelancer is paid.
Example: You hire someone to create a promotional video, and once paid, you own all rights to the video.
The Freelancer Keeps Ownership: The freelancer owns the work but gives you permission to use it in specific ways.
Example: An illustrator lets you use their artwork for a year, but they still own the rights.
Shared Ownership: You and the freelancer share the rights to the work.
Example: A writer and a production company co-own a script and split any profits.
PACT Contracts:
In the UK, some industries use detailed contract templates like those from PACT (Producers Alliance for Cinema and Television) that spell out ownership, usage, and credit rules.
PACT (Producers Alliance for Cinema and Television) Contracts
In the UK, the film and television industry often relies on contract templates from PACT. These templates are specifically designed to cover common industry needs, including IP rights, usage, and credits. For example:
IP Ownership Clauses:
PACT contracts often assume that the producer will own all intellectual property created during the project. Freelancers must explicitly assign their rights to the producer, ensuring the business has full control over the work.
Example: A freelance screenwriter assigns all rights to a script to the production company upon receiving payment, while retaining the right to be credited as the writer.
Usage Restrictions:
PACT contracts typically outline how the work can be used, whether for a specific project or across multiple platforms.
Example: A freelance composer grants a production company the right to use their music in a TV show but limits its use for promotional purposes outside of the show.
Credit Clauses:
Credits are a significant part of PACT contracts, ensuring that freelancers are appropriately recognised for their contributions.
Example: A cinematographer is credited in all published materials related to the film they worked on.
While PACT contracts are widely used in media, other industries may include variations, such as:
Advertising: Freelancers may retain ownership of their work but license it to agencies for limited use in campaigns.
Tech: Developers often assign IP rights for software to the hiring business, especially if it’s part of a larger product.
These industry-specific clauses highlight the importance of adapting IP terms to suit the nature of the work. Whether using a PACT template or another framework, it’s essential to:
Clearly define ownership and usage rights.
Ensure credits reflect the freelancer’s contribution.
Align the contract with applicable laws in the relevant jurisdiction.
For businesses, clear IP clauses help you:
Avoid misunderstandings about ownership.
Ensure you can use the work as needed.
Set fair terms for crediting the freelancer.
A good IP clause should cover:
Ownership: Does your business or the freelancer own the work?
Usage: Can you use the work forever, or are there limits?
Payment: Does the payment include transferring the rights?
Credits: Will the freelancer be credited for their work?
Portfolio Rights: Can the freelancer show the work in their portfolio?
“The freelancer assigns all rights to the work created for this project to the business once full payment is made. The freelancer may include the work in their portfolio and will be credited as the creator unless agreed otherwise.”
Be Clear About Ownership: Say exactly who owns what to avoid disputes.
Pay Fairly: If you want full ownership, ensure the fee reflects this.
Give Credit: Acknowledge the freelancer’s work to build trust.
Follow UK Law: Don’t use “work made for hire” language—adapt contracts to fit UK rules.
By being clear in your contracts, you can protect your business and build strong relationships with freelancers.
A reminder that this information is not legal advice but we’re here to point you in the right direction if needed.