How to Protect IP When Working with Contractors

One of the most common IP disasters is discovering that a contractor, not your company, actually owns the code or design they built for you.

Under default rules, the creator of a work often owns it, even if you paid for it. Without a proper agreement, you may have paid for something you do not actually own.

What the contract must say

• Work is made for hire and IP is assigned to you
• All deliverables transfer ownership on payment
• Contractors cooperate with future registrations
• Confidentiality covers everything they see

Common gaps to close

• Verbal agreements with no written terms
• Ambiguity about who owns what
• No confidentiality or non-disclosure clause
• Missing assignment of future IP

Get a signed IP assignment from every contractor before they start, and you remove the single biggest ownership risk in outsourcing.

After the project ends

Confirm the assignment covers everything the contractor produced, including drafts, and keep the signed agreement safe.

• Collect all deliverables
• Archive the signed contract
• Confirm no lingering rights