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Question from consultant about IP clause in a contract I am going to sign.

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Dolan W.
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Customer:
Asked on Nov 20, 2024

Question from consultant about IP clause in a contract I am going to sign.

I will be consulting from a design and marketing perspective from a client and they have sent me a consulting agreement that has some pretty serious looking IP language in it. I just want to understand it better before signing since I'm a creative and will be creating content for them.

Lawyer Dolan W.
5.0 (482)
Lawyer:
Answered on Nov 20, 2024

Hello ****! Thanks so much for coming to contractscounsel.com. I just had a few questions: 1. Does the contract limit or restrict your ability to showcase the work in your own portfolio or use it for self-promotion? If it does, is this something that could impact your business? 2. Does the contract specify who will retain ownership of any content or designs you create? Are they claiming ownership of all deliverables, or do you retain rights to certain types of content?

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Customer:
Asked on Nov 20, 2024

1) I am not exactly sure what it limits, but it seems to read that the client owns all of the work I do and I am not allowed to us it. Does that mean I cannot showcase is? Is it normal for the client to 'own' the work I make? 2) Yes - it says the 'Company' will own it which I think is them. I am referred to as the 'Consultant' I think. I'd like to retain rights to my work and like to showcase it on my website since I have a portfolio of client work. I'm just not sure if I will be able to do this with the current language. If not, is it something I can try to negotiate?

Lawyer Dolan W.
5.0 (482)
Lawyer:
Answered on Nov 20, 2024

Hello! 1. It is abnormal for them to "own" your work considering the work belongs to you. Did you ever have your work copyrighted at all? 2. Are you an employee or an independent contractor of that company?

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Customer:
Asked on Nov 20, 2024

I've never had my work copyrighted. What is the process to do that? The potential client gave me a 'Consulting Agreement' and I am referred to as a 'Consultant' in the agreement - not an 'Independent Contractor'. But it does have an 'Independent Contractor Status' clause, which makes me think the two are interchangeable. I will NOT be a full-time employee and won't receive any beneifts from the company.

Would it be helpful to show you the IP section?

Lawyer Dolan W.
5.0 (482)
Lawyer:
Answered on Nov 20, 2024

Hello! 1. So registering your copyright is relatively easy. My recommendation is to use this link - https://www.copyright.gov/registration/. You would not need a lawyer to do this. You can do this on your own and save some money. 2. Also, yes, it is helpful to show the IP section. I can review that section without an additional charge.

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Customer:
Asked on Nov 20, 2024

Here is the section. Let me know what you think! 3. Intellectual Property/Ownership of Work Product. Consultant agrees that any and all Work Product (as defined below) will be the sole and exclusive property of Client. Consultant hereby irrevocably assigns to Client all right, title and interest worldwide in and to any deliverables specified in a Project Assignment (“Deliverables”), and to any ideas, concepts, processes, discoveries, developments, formulae, information, materials, improvements, designs, artwork, content, software programs, other copyrightable works, and any other work product created, conceived or developed by Consultant (whether alone or jointly with others) for Client during or before the term of this Agreement, including all copyrights, patents, trademarks, trade secrets, and other intellectual property rights therein (the “Work Product”). Consultant retains no rights to use the Work Product and agrees not to challenge the validity of Client’s ownership of the Work Product. Consultant agrees to execute, at Client’s request and expense, all documents and other instruments necessary or desirable to confirm such assignment, including without limitation, the copyright assignment set forth as Exhibit B (“Assignment of Copyright”) and the patent assignment set forth as Exhibit C (“Assignment of Patent Application”). Consultant hereby irrevocably appoints Client as Consultant’s attorney-in-fact for the purpose of executing such documents on Consultant’s behalf, which appointment is coupled with an interest. Consultant will deliver any Deliverables in accordance with the applicable Project Assignment and disclose promptly in writing to Client all other Work Product.

Lawyer Dolan W.
5.0 (482)
Lawyer:
Answered on Nov 20, 2024

Thank you! So there are three ways that you're protected here specifically, but there are some specific things I want you to consider: 1. Scope of "Work Product" and "Project Assignment": The clause says the IP handover applies to "Deliverables specified in a Project Assignment" and "Work Product created for the Client." That means not everything you create is automatically theirs—only the stuff tied to the project. You could clarify or negotiate this to make sure your pre-existing ideas stay yours. 2. Client Covers the Paperwork Costs: The client is on the hook for paying for any paperwork or processes needed to transfer the IP, like copyright or patent filings. At least you won’t get stuck with those extra costs. 3. Negotiate Portfolio or Limited Use Rights: Even though the clause says the client owns everything and you can’t use it, this is something you can try to tweak. It’s pretty standard to ask for a license to showcase your work in your portfolio or use it for marketing or education purposes. It won’t affect their ownership, and it gives you something to show future clients.

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Lawyer Dolan W.
5.0 (482)
Lawyer:
Answered on Nov 20, 2024

Let me know if you have any other questions!

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Dolan W.
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10 Yrs Experience
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