If you are a small business, it’s likely that you have already worked with or will soon work with a freelancer. From design logos to sales pitches or renovations, you may need to outsource important work to contractors who know how to do it professionally and quickly for a reasonable price. But when you hire outside help, you must know how to navigate the legal paperwork that comes with it–particularly copyright agreements.
Copyright agreements for small businesses are essential for you and any hired freelancers to protect what yours and theirs. Failing to address copyright ownership can lead to costly disputes, legal battles, and even the loss of intellectual property or other important parts of your business. We’re here to tell you about the basics so that you may build your business with confidence and hire the help you need to see your business thrive!
What does a copyright protect?
Copyright laws exist to protect a creator’s rights to their original work. For example, if a freelance artist who is working for you draws a doodle on a napkin while he is designing your logo, that doodle belongs only to him. He doesn’t have to apply to a court to reserve the rights to it–it is already his. He has exclusive rights to reproduce, publicly display, or sell the doodle as he sees fit.
A piece of work must meet three criteria for copyright law to apply to it: Fixation, creativity, and originality. Fixation means that it can’t just be an idea that is spoken aloud, but must also be “fixed” in a tangible way. Creativity helps the fixation process by literally bringing the idea into being via drawing, writing, pottery, basket-weaving, etc. And originality ensures that the created work is not a direct copy of someone else’s work that already exists.
It’s just as important to know what copyright law does not protect, so let’s take a look at some examples:
- Ideas or concepts: If an author has an idea for a plot and speaks that idea aloud to a buddy, his spoken word doesn’t copyright his idea. So, if the buddy proceeds to write a book based on that idea, he hasn’t technically done anything wrong (although he may have lost a friendship).
- Public domain: If copyright protection expires or a creator puts their work in the public domain, copyright law no longer applies.
- Facts: If somebody just copies basic information onto a piece of paper, they can’t copyright that. However, if they spend lots of time creating a beautiful infographic of design about that basic information, that creation is subject to copyright law.
- Short titles or phrases: Copyright does not usually protect short taglines or phrases. This legal issue falls under trademark law instead.
As you can see, copyright law can get a bit complicated if you don’t know the ins and outs of it. Legal help makes it easier for you to know what protection you need when you hire a freelancer. You also need to understand your usage rights–what you are and are not allowed to do with the finished project that the freelancer provides for you. And if you use your small business to create work for others, it is even more critical for you to know how to protect your hard work!
Copyright agreements for small businesses
As a small business owner, you know how important it is that items are correctly labeled, records are accurate, and money goes to the right place. Copyright agreements dictate the terms of ownership of any intellectual property, including Copyright Agreements. They can have clauses that indicate what each party is allowed to do with the finished product, such as who owns the copyright. This helps prevent ownership disputes and protects intellectual property because everyone involved knows who created what and who has the rights to use it.
Intellectual property disputes can be long, drawn-out legal battles that would distract you from building your business. Failing to put the details of the business relationship in writing with your contractor or freelancer can lead to devastating financial and legal problems down the road. That’s why having legal assistance as you create these agreements can save you time and hassle! Intellectual Property law is complex, so professional legal advice about intellectual property matters is key to protecting your small business.
Protecting intellectual property with freelancer agreements
Intellectual property is the sum of your knowledge, inventions, art, etc. that are involved in your small business. It’s essential to protect this property so that you can benefit from all that work. Copyright agreements keep your intellectual property safe, as well as protect the intellectual property of your freelancers or contractors.
What if you want to take on copyright ownership of your freelancer’s work? You and the freelancer can pursue a work-for-hire agreement and a copyright transfer agreement, wherein the creator of the work officially hands over copyright to you. That means you would now have all the copyright abilities as if you had created the work yourself. If you try to do more with the created work than you had the right to, while not having a copyright transfer agreement in place, you would be violating copyright law and could get involved in a huge legal mix-up.
Common copyright myths that could cost you money
We get it. As a small business owner, you already have a lot of paperwork to keep track of. Why add one more document to the stack? Hiring a freelancer without signing the necessary agreements can backfire in major ways. Check out these common myths that sometimes keep business owners from protecting themselves in a contractor arrangement:
Myth #1: “Freelancers automatically transfer ownership of their work to my business.”
Unless there is a written agreement that clearly states otherwise, the freelancer usually retains copyright to their work. This can injure your business if you expect to have full rights to the work, or if you violate copyright law without realizing it. Freelancers can demand payment or usage restrictions after you have already published the work. You can lose the right to use it and may have to negotiate retroactively, costing time and money that you don’t want to spend.
Myth #2: “Copyright only applies to artistic work.”
Copyright law applies to a wide range of created work, including visual art, written words, architecture, computer software, and other areas that you may not initially think of. Whatever you need to hire a freelancer for, it’s strongly advised that you sign a copyright agreement with them.
Myth #3: “If I give credit to the creator, I don’t violate copyright law.”
Simply speaking or writing, “created by…” when you publish a freelancer’s work does not take care of all the legal requirements of copyright law. You could still find yourself in a legal battle if you do not have a clear, concise copyright agreement laying out what you can and cannot do with the finished product.
How LegalShield can protect your business from copyright pitfalls
Since it’s evident that protecting your copyright is so vital to your success as a business owner, you want to make sure you have the best help for the job. LegalShield’s provider law firms are here to assist. Our experienced lawyers offer advice, review documents, and help draft important paperwork for your small business needs with the small business supplement. Contact your LegalShield law firm to set up consultations that will help you debunk myths and ensure that intellectual property is legally protected. Having the right legal safeguards in place is crucial to ensure that your creative assets are safe and secure.
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Pre-Paid Legal Services, Inc. (“PPLSI”) provides access to legal services offered by a network of provider law firms to PPLSI members through membership-based participation. Neither PPLSI nor its officers, employees or sales associates directly or indirectly provide legal services, representation, or advice. The information made available in this blog is meant to provide general information and is not intended to provide legal advice, render an opinion, or provide a recommendation as to a specific matter. The blog post is not a substitute for competent legal counsel from a licensed professional lawyer in the state or province where your legal issues exist, and you should seek legal counsel for your specific legal matter. Information contained in the blog may be provided by authors who could be a third-party paid contributor. All information by authors is accepted in good faith, however, PPLSI makes no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of such information.
