Work for Hire and IP Assignment: Who Owns What You Create?
A work for hire or IP assignment clause says the client owns what you make. Check when ownership moves, what is included, and whether you can still show the work in your portfolio. A good default for a freelancer: ownership moves after full payment.
Work for hire, assignment and license in plain words
- Work for hire (or work made for hire): the client is treated as the author from the start. Whether this can apply depends on local law and the kind of work.
- IP assignment: you create the work and then sign your rights over to the client.
- License: you keep ownership and give the client permission to use the work, often with limits on time, place or use.
1. When does ownership move?
Bad"All work product is the sole property of Client from creation."
Better"Ownership transfers to Client on receipt of full payment."
If ownership moves on creation, the client owns the work even while your last invoice is unpaid.
2. What is covered?
"All work product" can sweep in your tools, templates and old code.
Better"Excludes Contractor's pre-existing materials and general know-how, which Client may use as part of the deliverables under a non-exclusive license."
3. What happens to drafts?
Ask that rejected concepts and drafts stay with you. Otherwise ideas the client turned down can end up belonging to the client.
4. Can you show the work?
Many contracts say nothing about this. If your portfolio matters, put it in writing:
Better"Contractor may show the work in a portfolio after public release."
5. Credit and moral rights
If a name credit matters to you, write it down. Some contracts also ask you to waive moral rights, such as the right to be named as the author; read that line before you agree to it.
6. Third-party material
Fonts, stock images and open-source code come with their own licenses. Agree who pays for them and who checks the terms.
What wording should I ask for instead?
Example"Upon full payment, Contractor assigns to Client all rights in the final deliverables. Contractor keeps all rights in pre-existing materials and tools and grants Client a license to use them as part of the deliverables."
The client gets the rights it pays for, and your tools stay yours. If a client pushes back on "after payment", ask what they need in the meantime and offer a limited license for that period.
When should I ask a lawyer?
When the work is the core of your business, includes software, or the contract uses words such as "perpetual", "worldwide" and "irrevocable" next to a low fee. Also when the same contract has a non-compete; see Should I sign a non-compete agreement?.
If a client has not paid and still uses the work, see Client not paying or ghosting you?. The full list of freelance terms is in Freelance contract red flags.
Can an app flag ownership terms?
SignArmor reads a contract and lists clauses worth a second look in plain English, with a Safety Score from 0 to 100 and a summary, in about a minute. Freelance and client agreements are one of the 14 types it recognizes. The iPhone and iPad app opens a PDF, DOCX or image file from Files, and the web app works with PDF and TXT files.
It does not decide who owns something under your local law, and it is not a lawyer. Before anything goes to the AI provider, SignArmor masks phone numbers, email addresses, account numbers, IDs, names and addresses in the text it extracted on your device. The file itself is not uploaded. Your first analysis is free and short (the score, the summary and the top red flag). If you buy later, the same report opens in full without a new analysis.
FAQ
Does work for hire mean I lose all rights?
If the term applies, the client is treated as the author of that work from the start. Whether it can apply to a contractor depends on local law and the kind of work.
What is the difference between an assignment and a license?
An assignment moves ownership to the client. A license lets the client use the work while you stay the owner.
Can I still use my own earlier work?
Usually yes, unless the contract claims it. Ask for a clause that excludes pre-existing materials so it is clear.
When should ownership transfer to the client?
A common freelance request is on full payment. Until then, the client can get a limited license to use the work.