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What To Know Before Hiring A Freelancer: How To Protect Your Intellectual Property Rights
December 22, 2024
A man typing on a laptop.

Freelancers are a key part of the modern economy, able to fill in gaps in the workforce quickly and efficiently and engage in commerce anywhere from the corporate level to the startup level. The contractual nature of a freelancer provides high levels of flexibility for things like graphic design, copywriting, computer programming, and other projects.

However, hiring a freelancer may also come with certain complications or drawbacks if not handled appropriately. With freelancers creating intellectual property for you, it may not always be clear who owns the copyright. This can lead to infringement of intellectual property rights in extreme situations and may cause financial loss or even legal action.

Understanding the various nuances of intellectual property law may help show the proper way to go about hiring a freelancer. For more information, consider speaking with an experienced IP attorney from Sullivan & Carter, LLP by scheduling a consultation at (929) 724-7529.

Understanding Intellectual Property Rights

Familiarity with the definitions and jurisdictions of intellectual property rights can be a key tool in establishing ownership and drafting a contract for hiring a freelancer. In general, the freelancer who creates something has rights to its reproduction, except where specified clearly in a contract. Understanding these laws can help prevent confusion later on.

Copyright

According to the World Intellectual Property Organization, copyright is essentially the intellectual property rights of an individual to reproduce and use the content they have created. This can apply to writers, musicians, architects, engineers, or any other field of a generative nature. Copyright protects the rights of the individual to own what they have created.

Risks of Hiring a Freelancer

When a freelancer is hired by a company, the company would logically expect to own what is created for them. However, an unscrupulous freelancer may take advantage of an employer and maintain copyrights to their work, weakening the brand or exclusive edge provided by the service. In addition, an unaware freelancer may innocently cause complications if not informed of the intellectual property rights of their employer.

Confidentiality

One such complication that may arise when hiring a freelancer is the issue of confidentiality. Many companies and employers wish to keep ahold of the information and intellectual property they own. However, if contracts are not drafted appropriately, freelancers may be legally allowed to distribute and reproduce the intellectual property provided to their employer.

Unclear Ownership

In addition, it may be unclear as to the true ownership of the intellectual property. The employer may feel entitled to the property as they hired out the freelancer to acquire it, and yet the freelancer was the one who actually created the item. Understanding ownership and copyright may help dispel these disputes and show who truly retains rights to the intellectual property in question.

Licensing Complications

In addition to maintaining rights, an employer or company may wish to distribute, sell, or license out what was created by a freelancer. However, the employer may be infringing on a freelancer’s intellectual property rights if they do not legally own the object or piece in question. An employer may be unable to license or reproduce their property if the contract does not explicitly give them the right to license or sell the intellectual property provided by the freelancer.

For more information on intellectual property rights when hiring a freelancer, consider speaking with an experienced IP attorney from Sullivan & Carter, LLP.

How to Protect Intellectual Property Rights

Most importantly, protecting intellectual property rights will come down to the contract. Creating a formal contract for contractors to sign when hiring a freelancer can help alleviate conflict and avoid disputes. The contract will allow the employer to detail the working relationship between two parties, including copyright holder and disclosure. How to protect intellectual property rights often comes down to the details presented and agreed upon in the contract.

Non-Disclosure Agreements

One key contract that can help clarify intellectual property rights for freelancers is a non-disclosure agreement. This contract explicitly states that company information and other details of the work the freelancer is doing are strictly for the contractor and freelancer. This means that the freelancer is not allowed to share company information outside of the workplace, which can help employers keep a competitive edge.

Retained Rights

Another specification to include in a contract with a freelancer is the retention of rights. If the company or business has existing materials or content that are shared with the freelancer, there may be messy legal implications of who owns the finished product. This could jeopardize private intellectual property and may lead to legal complications. A clause in the contract stating that the company retains rights to any pre-existing material may help avoid this issue.

Assignment of Intellectual Property

By default, the rights to any created content belong to the creator, in this case, the freelancer. This could cause problems if the freelancer stops working for their current employer, yet retains intellectual property rights to their content. However, if the contract that the freelancer signed surrenders copyrights to the contract holder, then the employer may reproduce and use the created content for their benefit. This helps protect the work that the employer paid for without it being devalued by being given to competitors.

Frequently Asked Questions

Listed below are several frequently asked questions regarding hiring a freelancer.

What Do Copyrights Cover?

Copyrights refer to any original piece of work created by a person. This could extend to creative pursuits such as writing, music, or art, as well as things like software design, graphics, and computer code.

Are There Risks to Hiring Overseas Freelancers?

Yes, there may be risks associated with hiring a freelancer from overseas. IP theft, data breaches, and leaks may all be consequences of hiring global freelancers without proper background checks.

Contact a Chicago, Illinois IP Lawyer Today Before You Hire a Freelancer To Ensure Your Intellectual Property Rights Are Protected

Intellectual property is often a valuable asset to companies and businesses, which makes protecting intellectual property rights tantamount to thriving as a business. Therefore, being cautious and thorough when hiring a freelancer and providing a solid contract may be a step toward building a lasting legacy in the business landscape.

However, developing a thorough contract that protects a company’s intellectual property rights may be challenging. Creating such a document may call for a deeper understanding of intellectual property law. A skilled copyright lawyer from Sullivan & Carter, LLP may be able to assist in creating this document and building strong protections for a company’s IP rights. For more information, consider scheduling a consultation by calling the office at (929) 724-7529.

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