We know that the author of a work automatically owns the copyright to that work by virtue of having fixed the work in a tangible medium. But what about the company who hires someone to create their website? And what if that person is an independent contractor, and not an employee of the company? How can a company ensure that it owns the rights to the website it hired somebody from outside the company to create?
Enter the Work for Hire form. The statute of the copyright law, as far as Work for Hire agreements go, is split into two parts. The first part says that a work created by an employee within the scope of his or her employment is owned by the employer, not the employee. Case in point: It’s Business Time, authored by me under the employment of Click Industries, is owned by Click Industries by virtue of my weekly paycheck. I’m going to run into legal trouble if I start a personal side business selling t-shirts with printed excerpts from the blog (not to mention the financial trouble I’ll run into when I find that no one’s buying).
The second part of the statute, which deals with independent contractors, gets a little trickier. The copyright law statute says that that the work needs to be “specially ordered or commissioned” and that there must be a written agreement (the Work for Hire agreement) signed by both parties. The tricky part here is that this doesn’t cover existing works, or a work that has already been started – but it doesn’t explicitly not cover these types of works either. The law can be hazy, and much of the outcome is determined by the courts on a case-by-case basis, but as an employer or someone who hires an independent contractor, protect yourself with a Work for Hire agreement right away.
This, along with other great tips on the scope of the Work for Hire agreement and using it correctly, has been addressed in a great article by attorney Lloyd J. Jassin, author of copylaw.com.