The Critical IP Mistake Businesses Make with Independent Contractors
And how to avoid it before it costs you your brand.
If your business growth strategy includes hiring independent contractors — or even getting informal help from a friend — for things like design, development, copywriting, or marketing… this is essential reading.
Here’s why:
By default, independent contractors own the work they create — not you.
Under U.S. copyright law (and in many other jurisdictions), the creator of a work automatically owns the intellectual property (IP) — even if you’ve paid them, and even if they’re “just helping you out.”
Unless you have a clear, written agreement assigning those rights to your business, you do not legally own what they create.
That includes:
Logos
Website designs
Written content
Software and code
Branding assets
Marketing campaigns
Many entrepreneurs and even established businesses assume that payment equals ownership. Legally, it doesn’t. Copyright law protects the creator — unless they’ve formally agreed otherwise.
Real-world implications:
Without a written IP assignment, the contractor can:
Demand additional compensation down the road
Restrict your use of the materials
Prevent you from reusing or licensing the work
Or even reclaim control of brand-defining assets like your website or logo
This can lead to costly rework, lost time, reputational damage, or even legal action — particularly damaging for small businesses, consultants, and early-stage startups.
The solution: A clear Independent Contractor Agreement
To protect your business, you need a written agreement that:
Assigns all intellectual property rights to your business
Sets clear expectations for deliverables, timelines, and payment
Clarifies ownership and legal responsibility from the start
This is not just best practice — it's essential risk management for any service-based or digital business that relies on external collaborators.
Take action before it becomes an issue.
If you’re working with freelancers or independent contractors — even for one-off projects — make sure you have the right legal protections in place.
To make this easy, I’ve created a lawyer-drafted, customizable Independent Contractor Agreement you can start using immediately. It’s written with entrepreneurs and small business owners in mind.
🔗 Get the Independent Contractor Agreement Template
You’ve worked hard to build your business. Make sure you legally own what you’ve invested in.
