Work for hire: Overview, definition and example
What is work for hire?
Work for hire refers to a legal arrangement where the person or company that hires someone to create something owns the rights to that work, rather than the person who actually created it. This usually applies to specific types of creative or intellectual work, like writing, designing, or coding, and is often outlined in a contract.
Why is work for hire important?
Work for hire is important because it clarifies who owns the rights to work created during a project. Without it, the person who created the work—like a freelancer or employee—might retain the rights. By using a work-for-hire agreement, businesses ensure they own the output they’re paying for, reducing disputes over intellectual property.
Understanding work for hire through an example
Imagine a company hires a graphic designer to create a logo. If the work-for-hire clause is included in their agreement, the company automatically owns the logo as soon as it’s completed and paid for. The designer has no legal claim to the logo, even though they created it.
Now consider another scenario without a work-for-hire clause. If a marketing firm hires a freelance writer to develop ad copy, the writer may retain ownership of the content unless there’s a separate agreement transferring those rights to the firm. This could lead to complications if the firm wants exclusive use of the content.
An example of a work-for-hire clause
Here’s how a work-for-hire clause might appear in a contract:
“All work created by the Contractor under this Agreement shall be considered ‘work for hire’ and shall be the sole property of the Company. The Contractor agrees to assign any rights, including copyright, to the Company.”
Conclusion
Work for hire ensures that businesses own the rights to the work they commission, providing clarity and preventing disputes over intellectual property. Including a work-for-hire clause in agreements is essential for protecting ownership and ensuring creative assets are exclusively yours.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.