When you use independent contractors to produce something for your business, what ownership rights do you have? Just because you paid for the work to be done does not mean you or your business owns it.
This is true whether you’re paying for copywriting, website design, software development, or many other services where intellectual property is produced.
Missing Contract
Now if there’s no written contract, it’s a free-for-all where no one has an idea who owns what. And chances are both you and your contractor both think you each own what’s created.
Amateur Agreement
Even if there is a written agreement, amateur contracts rarely address this issue.
Or get it wrong.
Favors Contractor
Of course, if you’re dealing with an experienced professional, the agreement will likely provide that the contractor owns the intellectual property. And your business has a limited right to use it even though you paid for it.
Some sneaky agreements even state your business must quit using the intellectual property when the contract ends.
So you’re forced to either renew the contract or pay a small fortune to terminate it in order to keep using what you paid to have created.
Imagine paying a search engine marketing agency monthly on a one-year contract to redesign your website and create a bunch of content for the site and social media. Then find out you have to renew the contract for another year (pay monthly) or terminate the contract with a huge payout in order to keep using the site and content.
Protect Your Rights
How do avoid a disaster like this?
First, use contracts prepared by an experienced business lawyer that favors you when you retain contractors.
Second, if you have to use the contractor’s agreement (and that’s often negotiable), have your lawyer review the contract and make changes to protect you before even thinking about signing it.
