As a client, do you automatically own the copyright?

You commission a logo, have a website built or a visual identity developed, and you pay for it. It may therefore seem logical that the rights belong to you as well. Legally, however, that is often not the case. Many business owners assume that, as the client, they automatically own the copyright once they have paid for a logo, website or visual identity. But commissioning the work and paying the invoice does not automatically give you the copyright. 

In practice, this can cause difficulties. For example, if you want to alter your logo, engage another designer, register the logo as a trade mark, grant third parties rights to use it, or sell your company together with all of its intellectual property rights. You may then discover that the creator of the original design still owns the copyright. And that can significantly obstruct your plans.

Why do you, as the client, often not own the copyright?

The basic rule is simple: a client does not automatically own the copyright in work created on commission. In principle, the copyright belongs to the creator of the work. This may be the designer, agency or freelancer who created it. That also applies if you commissioned the work and paid for it. 

This comes as a surprise to many business owners. In practice, people often think: I paid for it, so it belongs to me. But legally, that is not automatically the case. Payment usually covers the work performed; it does not mean that the copyright is automatically assigned.

What is the best approach: assign the copyright or agree rights of use (a licence)?

That depends on what you want. Do you want your company to be free to deal with a logo, website or design as it sees fit? If so, it is often advisable to arrange for the copyright to be properly assigned. This records that the rights pass from the creator to you. 

Sometimes the parties agree a licence rather than an assignment. In that case, the creator retains the copyright, but you are given permission to use the work. This can be a good solution, but only if the arrangements are clear. Are you allowed to alter the design? Can you use it within a group of companies? Can you authorise third parties to use it? If these points are not clearly documented, disputes can quickly arise later.

Does this apply only to logos?

The same issue arises with websites, brochures, illustrations, texts and other creative commissions. In those cases too, as the client, you do not automatically own all the rights in the work. 

Copyright in a website is a particular area in which people often wrongly assume that payment is enough. However, payment does not automatically mean that you are free to alter everything or have another party take over the work. Without proper arrangements, the creator may still have rights that restrict what you can do.

Avoid problems later on

Anyone who commissions a logo, website or other creative work will want to be free to deal with it later. Yet problems regularly arise in practice because little or nothing about copyright was agreed in advance. Difficulties then emerge when you want to grow, restyle or reposition your business, or make arrangements with another party in relation to the design. 

By making clear arrangements in good time about an assignment or rights of use, you can avoid becoming unnecessarily dependent on a designer, agency or developer later on. Would you like to know whether this has been properly arranged in your situation? I would be happy to take a look with you. You are always welcome to get in touch.