You just finished an incredible project for a client—maybe it’s a stunning logo design, a well-researched article, or an innovative software feature. But before you celebrate, ask yourself: Who actually owns the work you just created?
Many freelancers and small business owners assume that because they did the work, they own it. Unfortunately, that’s not always the case.
Client-commissioned projects fall into a legal gray area when it comes to intellectual property (IP) rights. Without the right agreements in place, you could lose control over your own creations, miss out on future profits, or even face legal disputes.
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The Default Rule: Who Owns Commissioned Work?
Many business owners are surprised to learn that ownership of commissioned work isn’t automatic. It depends on the type of agreement you have with the client.
Copyright Law: The Creator Owns the Work (Usually)
Under U.S. copyright law, the person who creates a piece of work automatically owns the rights to it—unless they have signed a contract stating otherwise.
This applies to:
- Graphic designers creating logos or branding materials.
- Writers crafting articles, books, or ad copy.
- Photographers taking professional headshots or event photos.
- Developers coding software or apps.
Even if the client paid for the work, you typically retain ownership unless you’ve legally transferred the rights.
The Exception: “Work for Hire” Agreements
There’s one major exception to this rule: Work for hire.
If a contract explicitly states that a project is a “work for hire,” then the client owns all rights to the work from the beginning. This means:
- You have no claim to the work once it’s delivered.
- You can’t resell, modify, or showcase the work without permission.
- The client can trademark, copyright, or profit from it however they choose.
Work-for-hire agreements are common in agency settings, corporate contracts, and ghostwriting arrangements, so always read the fine print.
The Risks of Giving Up Ownership
Many independent business owners sign away their rights without realizing it. Here’s why that can be dangerous:
You Lose Future Earning Potential
Imagine you create an incredible illustration for a company’s marketing campaign. You charge them $500 and transfer full ownership.
Years later, that same artwork appears on billboards, T-shirts, and global advertising campaigns. The company has made millions using your work, while you only ever earned that one-time payment.
Had you retained some rights, you could have licensed your work, earned royalties, or negotiated higher fees.
You May Not Be Allowed to Use Your Own Work
If you sign away full ownership, you might not even be able to showcase your work in your portfolio.
Some contracts forbid you from publicly displaying the project, which makes it harder to attract new clients and grow your reputation.
Legal Disputes Can Arise
If you and the client never clearly defined ownership, things can get messy.
Common disputes include:
- A client modifying your work in a way that harms your reputation.
- Another company accidentally using your work without knowing you weren’t the legal owner.
- A former client claiming they own all of your work, including unrelated projects.
Without a clear contract, it’s difficult to enforce your rights.
How to Protect Your Work and Your Business
Fortunately, there are ways to retain control over your work while still satisfying your clients.
Use Contracts That Define Ownership Clearly
Every project should include a contract that explicitly states who owns the work.
Your contract should address:
- Who retains copyright and ownership after delivery.
- Whether the client gets exclusive or non-exclusive rights.
- Whether you can display the work in your portfolio.
- If any licensing fees or royalties apply for future use.
It’s far easier to negotiate these terms before the project starts rather than after a dispute arises.
Offer Licensing Instead of Full Ownership
Rather than giving up all rights, offer your clients a license to use your work under specific conditions.
Common licensing agreements include:
- Non-exclusive license – You retain ownership and can sell or reuse the work.
- Exclusive license – The client has sole rights to use the work, but you still own it.
- Time-limited license – The client can use the work for a set period before renewing.
This approach ensures you’re fairly compensated while protecting your long-term interests.
Keep Business and Personal Finances Separate
If you’re dealing with large contracts, high-value intellectual property, or licensing deals, it’s a good idea to keep your business finances legally separate from your personal assets.
Some business owners choose to form an LLC (Limited Liability Company) to help create a clear distinction between personal and business assets—which can be especially useful if ownership disputes arise.
When to Walk Away From a Bad Client Contract
Not every project is worth taking—especially if the contract completely strips you of ownership with no additional compensation.
Warning Signs of a Bad Deal
If a client insists on:
- Full ownership without offering higher pay.
- A contract that forbids you from displaying your own work.
- A vague agreement that doesn’t specify ownership terms.
It may be best to negotiate better terms—or walk away.
Know Your Rights Before You Sign
Commissioned projects are a great way to grow your business—but only if you understand who truly owns the work.
To protect yourself:
- Use contracts that clearly define ownership rights.
- Consider licensing agreements instead of full ownership transfers.
- Think long-term about how your work could be used in the future.
- Structure your business properly to safeguard your intellectual property.
By taking these steps, you’ll ensure that your creativity stays yours—and your business remains secure.
