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Written agreements can avoid disputes and protect IP ownership rights. Engagement of an independent contractor or freelance worker that will include creation of intellectual property should include a contract drafted by an attorney whose practice focuses on IP, copyrights and contract law.
What the service is and how much the contractor will be paid. If the client/customer will cover expenses or provide resources. When the contract will end. If either party will be penalized for things such as late payments or unfinished work.
If that worker is directly related to the process and creation of a new, patentable idea for the business, then the employer owns any intellectual property created by that employee. This is viewed as the employee simply doing his or her job: They're creating a better process or product for the business.
Under the law, the general rule is that the copyright in and to the work product of an individual employee or independent contractor is owned by that individual unless an exception applies. The Work for Hire doctrine is an exception to such rule.
Since an independent contractor (unlike an employee) owns the copyright rights to the product he or she creates under the contract, he or she must transfer or assign those rights in writing to the other party to comply with federal copyright law.
Ten Tips for Making Solid Business Agreements and ContractsGet it in writing.Keep it simple.Deal with the right person.Identify each party correctly.Spell out all of the details.Specify payment obligations.Agree on circumstances that terminate the contract.Agree on a way to resolve disputes.More items...
How do I create an Independent Contractor Agreement?State the location.Describe the type of service required.Provide the contractor's and client's details.Outline compensation details.State the agreement's terms.Include any additional clauses.State the signing details.
However, the general rule is that, in the absence of a written agreement, copyright in works created by an independent contractor is owned by the independent contractor. The default rule for patent ownership, absent a written agreement, is that inventors own the rights in their inventions.
When the worker is an independent contractor, by contrast, intellectual property created by the contractor or consultant will not automatically be owned by the employer. This is true even if the idea, invention, or expression is made within the scope of the contractor's engagement or on the worksite of the employer.
Here are some steps you may use to guide you when you write an employment contract:Title the employment contract.Identify the parties.List the term and conditions.Outline the job responsibilities.Include compensation details.Use specific contract terms.Consult with an employment lawyer.Employment.More items...?