Work for Hire
The concept of “work for hire” outlines the specific rules governing legal ownership when a creative work is produced by someone you've commissioned.
To fully understand your rights, it's essential to know what work for hire is and its implications for work for hire copyright laws. Below, we'll go over these definitions and their practical applications.
What Is Work for Hire?
Generally speaking, any work you create should belong to you. But what is work for hire, and why is it different?
Work for hire is the legal term for a creative piece that can be copyrighted. The work can include stories, songs, paintings, sculptures, poems, essays, graphic designs, or computer programs and games.
In the U.S., the term "work for hire" stands for "a work made for hire" and applies to a piece of work created as part of a person's job or by someone working as an independent contractor. Under a work-for-hire agreement, the employer becomes the owner of the work and holds the copyright and all publishing rights.
If you are the employer, you want the contract to state that the product belongs to you. As a creator, you should secure fair compensation for your work before signing away your rights.
Key Aspects of Work for Hire
The work-for-hire copyright law allows the copyright transfer from a creator to the client.
Some factors must apply for work to belong to someone other than the author. The law may consider whether the creator is an employee, how long you have been employed, and if you signed a contract, among other factors.
Below are the common aspects of work made for hire.
Written agreements
Under the United States Copyright Act (U.S. Code Title 17), written agreements determine who owns the end product.
The work-for-hire copyright belongs to whoever the contract designates.
Below is an example of such a clause in a work-for-hire copyright transfer agreement:
"I agree that any work, materials, content, or deliverables created, prepared, or developed under this Agreement shall be considered a 'work made for hire' as defined by the U.S. Copyright Act, and the Company shall be deemed its author and exclusive owner."
Third-party ownership
Another significant aspect of work for hire is that ownership transfers to a third party. This idea goes contrary to other scenarios, where the person working on a creative piece owns the product.
This aspect of work made for hire allows companies to hire out work to skilled creators and acquire legal ownership of the product.
An example is when your company hires a designer to create your company's logo. Without the ability to retain copyrights, the creator would resell the work, which would be detrimental to the business.
Independent contractors
Businesses that hire independent contractors, such as freelance web developers, can acquire ownership rights.
Independent contractors who wish to retain rights to their creative work should get a written copyright agreement that protects those rights.
Length of employment
The company typically owns a creative piece of work made by a company employee. If there is an ownership dispute, the courts will ask the following questions:
- Is the work of the kind that the employee was hired to create?
- Did the creation of the piece happen predominantly during approved work hours?
- Was the work done at least in part to serve the company?
In some cases, work done by long-term employees will typically count as work for hire. It doesn't matter if the creator signed a specific contract.
Limited categories
Some creations qualify as work for hire if they fall within specific categories.
Unless the contract specifically states otherwise, work created by an independent contractor is considered work for hire if it can fall into one of these nine categories:
- Contributions to collective works such as magazines, anthologies, or encyclopedias.
- Part of a film or audiovisual piece
- Supplementary work to another work, such as a foreword, afterword, chart, table, index, bibliography, appendix, or pictorial illustration.
- Compilations of preexisting material
- Instructional works prepared for use in an instructional activity
- Translations
- A test
- Answer materials for tests
- Atlases
Work for Hire Examples
The following are examples of work for hire.
- A logo you create for a company during your employment as the company's in-house graphic designer
- A publishing company hires a freelance writer for an article in their magazine
- The music you receive payment for making, which is used as a movie soundtrack by a movie company
- The work you produce as an independent contractor for a client
The copyrights to work performed under a work-for-hire agreement belong to the company from the moment the creation process begins. Even if the work is never completed, the company owns the rights to whatever has been finished.
Types of Work-for-Hire Agreements
Work for hire is more common in some industries than others. Some professionals rely on work-for-hire contracts to determine who owns the work. Below are some examples of such contracts.
- Musician work-for-hire agreement
- Independent contractor work for hire agreement
- Music producer work-for-hire agreement
- Graphic designer work for hire agreement
- Visual artist work for hire agreement
- Software developers working under made-for-hire contracts
- Freelance writers contracts
- Consultants with a work-for-hire contract
Without a signed legal agreement in place, a client who purchases a creative work may not legally own the piece.
For example, independent contractors in California face a legal loophole. California law states that any individual under contract for any creative work that both the contractor and employer agree to is automatically considered work for hire.
Helpful Resources:
Outside GC - Common Misconceptions about “Work for Hire”
Owen, Wickersham & Erickson, P.C. - What is Work Made For Hire?
The concept of “work for hire” outlines the specific rules governing legal ownership when a creative work is produced by someone you've commissioned.
To fully understand your rights, it's essential to know what work for hire is and its implications for work for hire copyright laws. Below, we'll go over these definitions and their practical applications.
What Is Work for Hire?
Generally speaking, any work you create should belong to you. But what is work for hire, and why is it different?
Work for hire is the legal term for a creative piece that can be copyrighted. The work can include stories, songs, paintings, sculptures, poems, essays, graphic designs, or computer programs and games.
In the U.S., the term "work for hire" stands for "a work made for hire" and applies to a piece of work created as part of a person's job or by someone working as an independent contractor. Under a work-for-hire agreement, the employer becomes the owner of the work and holds the copyright and all publishing rights.
If you are the employer, you want the contract to state that the product belongs to you. As a creator, you should secure fair compensation for your work before signing away your rights.
Key Aspects of Work for Hire
The work-for-hire copyright law allows the copyright transfer from a creator to the client.
Some factors must apply for work to belong to someone other than the author. The law may consider whether the creator is an employee, how long you have been employed, and if you signed a contract, among other factors.
Below are the common aspects of work made for hire.
Written agreements
Under the United States Copyright Act (U.S. Code Title 17), written agreements determine who owns the end product.
The work-for-hire copyright belongs to whoever the contract designates.
Below is an example of such a clause in a work-for-hire copyright transfer agreement:
"I agree that any work, materials, content, or deliverables created, prepared, or developed under this Agreement shall be considered a 'work made for hire' as defined by the U.S. Copyright Act, and the Company shall be deemed its author and exclusive owner."
Third-party ownership
Another significant aspect of work for hire is that ownership transfers to a third party. This idea goes contrary to other scenarios, where the person working on a creative piece owns the product.
This aspect of work made for hire allows companies to hire out work to skilled creators and acquire legal ownership of the product.
An example is when your company hires a designer to create your company's logo. Without the ability to retain copyrights, the creator would resell the work, which would be detrimental to the business.
Independent contractors
Businesses that hire independent contractors, such as freelance web developers, can acquire ownership rights.
Independent contractors who wish to retain rights to their creative work should get a written copyright agreement that protects those rights.
Length of employment
The company typically owns a creative piece of work made by a company employee. If there is an ownership dispute, the courts will ask the following questions:
- Is the work of the kind that the employee was hired to create?
- Did the creation of the piece happen predominantly during approved work hours?
- Was the work done at least in part to serve the company?
In some cases, work done by long-term employees will typically count as work for hire. It doesn't matter if the creator signed a specific contract.
Limited categories
Some creations qualify as work for hire if they fall within specific categories.
Unless the contract specifically states otherwise, work created by an independent contractor is considered work for hire if it can fall into one of these nine categories:
- Contributions to collective works such as magazines, anthologies, or encyclopedias.
- Part of a film or audiovisual piece
- Supplementary work to another work, such as a foreword, afterword, chart, table, index, bibliography, appendix, or pictorial illustration.
- Compilations of preexisting material
- Instructional works prepared for use in an instructional activity
- Translations
- A test
- Answer materials for tests
- Atlases
Work for Hire Examples
The following are examples of work for hire.
- A logo you create for a company during your employment as the company's in-house graphic designer
- A publishing company hires a freelance writer for an article in their magazine
- The music you receive payment for making, which is used as a movie soundtrack by a movie company
- The work you produce as an independent contractor for a client
The copyrights to work performed under a work-for-hire agreement belong to the company from the moment the creation process begins. Even if the work is never completed, the company owns the rights to whatever has been finished.
Types of Work-for-Hire Agreements
Work for hire is more common in some industries than others. Some professionals rely on work-for-hire contracts to determine who owns the work. Below are some examples of such contracts.
- Musician work-for-hire agreement
- Independent contractor work for hire agreement
- Music producer work-for-hire agreement
- Graphic designer work for hire agreement
- Visual artist work for hire agreement
- Software developers working under made-for-hire contracts
- Freelance writers contracts
- Consultants with a work-for-hire contract
Without a signed legal agreement in place, a client who purchases a creative work may not legally own the piece.
For example, independent contractors in California face a legal loophole. California law states that any individual under contract for any creative work that both the contractor and employer agree to is automatically considered work for hire.
Helpful Resources:
Outside GC - Common Misconceptions about “Work for Hire”
Owen, Wickersham & Erickson, P.C. - What is Work Made For Hire?