What is a “work for hire?”
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Mary Martin
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Mary Martin has been a legal writer and editor for over 20 years, responsible for ensuring that content is straightforward, correct, and helpful for the consumer. In addition, she worked on writing monthly newsletter columns for media, lawyers, and consumers. Ms. Martin also has experience with internal staff and HR operations. Mary was employed for almost 30 years by the nationwide legal publi...
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UPDATED: Jul 18, 2023
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UPDATED: Jul 18, 2023
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
The default copyright scenario is that a creator owns his or her work. For another party to own the work, it must be set forth in writing. Under this default, therefore, contractors own their work. If a written agreement with a contractor sets forth that the work is a “work for hire,” then the person paying for the work in most cases will own the work. Under federal copyright law, a work for hire is specifically defined as “a work prepared by an employee within the scope of his or her employment, or a work specially ordered or commissioned for use as a:
- Contribution to a collective work,
- Part of a motion picture or other audiovisual work
- Translation
- Supplementary work
- Compilation
- Instructional text
- Test
- Answer material for a test
- Atlas
If the parties expressly agree in a written instrument signed by them that the work shall be considered a work made for hire.” The definition means that anytime a writer or artist is hired by contract to create a work for someone else, it is work for hire. If you are employed to create a work for hire it means that you will not own the copyright to your work. Instead, the company that hired you is paying an agreed upon compensation for the work. The entire copyright privileges, including the right to reproduce and change as needed, belong exclusively to the company that hired you.
If you are negotiating a work for hire with anther company, it is imperative that you make certain that the agreement clearly defines copyright ownership. Also, be sure and negotiate an agreeable price for your work, as you will most likely be disqualified from collecting any royalties or other profits from the sale and use of your work. Finally, clearly define in the contract whether the owner will be permitted to further sell, contract, license, or distribute your work to other organizations and people. This is especially important to consider if you are creating a product such as an interface program that could have multiple applications.
There can be complex situations regarding contractors, employees and employers, joint contributions to works, and works for hire. You should consult an attorney to be sure that you have the right language in any contract to achieve your desired goal.
Case Studies: Understanding “Work for Hire”
Case Study 1: The Web Design Contractor
A web design contractor is hired by a company to create a new website. The contract between the contractor and the company explicitly states that the work produced will be considered a “work for hire.”
As a result, the company retains full ownership of the website, including all copyright privileges. The contractor receives an agreed-upon compensation but is not entitled to any royalties or profits from the website’s sale or use.
Case Study 2: The Software Developer
A software developer is approached by a startup to create a specialized interface program. The contract negotiations involve discussions about copyright ownership and further distribution rights. The developer successfully negotiates the terms, ensuring that the startup will have exclusive ownership of the software.
However, the contract permits the developer to retain the right to reuse certain elements of the code for other projects, provided it does not compete with the startup’s product.
Case Study 3: The Content Writer
A content writer enters into a work-for-hire agreement with a publishing company to produce articles for their website. The contract clearly states that the company will own all rights to the content, and the writer will not have any claim to the copyright.
Although the writer receives a fair payment for the work, they understand that they cannot reproduce or repurpose the articles for personal or commercial use.
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Mary Martin
Published Legal Expert
Mary Martin has been a legal writer and editor for over 20 years, responsible for ensuring that content is straightforward, correct, and helpful for the consumer. In addition, she worked on writing monthly newsletter columns for media, lawyers, and consumers. Ms. Martin also has experience with internal staff and HR operations. Mary was employed for almost 30 years by the nationwide legal publi...
Published Legal Expert
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.