Works for hire: Overview, definition, and example
What is a work for hire?
A work for hire refers to a type of work or creation that is made by an employee as part of their job duties or is created under a contract where the employer or commissioning party retains full ownership of the work. Under U.S. copyright law, a work created by an employee within the scope of their employment automatically belongs to the employer, while works created by independent contractors are only considered works for hire if there is a written agreement specifying that the work will be treated as such. This legal concept is important for determining who owns the copyright to a work and the rights to reproduce, distribute, or license that work.
For example, if a graphic designer creates a logo for a company as part of their job, that logo is considered a work for hire, and the company holds the copyright to the logo, not the designer.
Why are works for hire important?
Works for hire are important because they clearly establish the ownership of intellectual property rights, particularly in business and creative industries. They allow employers or clients to ensure that any work created by employees or contractors is automatically assigned to them, preventing disputes over ownership and control of the work. This is particularly crucial in industries like publishing, technology, advertising, and entertainment, where intellectual property plays a key role in the business. Works for hire agreements help clarify who can profit from and make decisions regarding the work, whether through licensing, sale, or further development.
For businesses, works for hire ensure they have clear, undivided ownership over creative assets. For creators, understanding works for hire agreements helps ensure they know their rights regarding ownership, royalties, or usage of their work.
Understanding works for hire through an example
Imagine a software development company hires an independent contractor to create a custom software application for a client. The contract specifies that the application is a work for hire, meaning the company, not the contractor, owns the software and all associated intellectual property rights once the work is completed. Even though the contractor wrote the code, the company retains the copyright and can use, modify, or sell the software as they see fit.
In another example, a publishing company hires a freelance writer to write articles for its magazine. The contract specifies that the articles are considered works for hire. As a result, the publishing company owns the rights to the articles, including the right to republish, edit, or license them, while the writer does not retain any copyright or ownership of the work.
An example of a works for hire clause
Here’s how a works for hire clause might appear in a contract:
“The Parties agree that all works, including but not limited to designs, articles, software, and other creative works, produced by the Contractor under this Agreement shall be deemed ‘works for hire’ and shall be the sole and exclusive property of the Company. The Contractor hereby assigns all rights, title, and interest in the works to the Company, including any copyrights, trademarks, or patents associated with the work.”
Conclusion
The concept of works for hire is fundamental in determining the ownership of creative works, ensuring that the person or entity commissioning the work has full control over its use and intellectual property rights. This arrangement is particularly important for employers and businesses in industries that rely on intellectual property. For creators, understanding whether a work is considered a work for hire can help clarify their rights and obligations under a contract.
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.