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CONTRACTS

What is an IP assignment clause and who owns the work?

SHORT ANSWER

It transfers ownership of created work — code, designs, writing, inventions — from the creator to the other party. Check what’s covered, when transfer happens, and whether it’s tied to payment.

IP assignment decides who owns what gets made. In employment and freelance contexts, these clauses typically assign everything you create within the engagement to the company or client. The traps: scope creep (clauses claiming inventions "related to" the business, made on your own time, or even before/after the engagement), transfer timing (assignment on creation vs. on payment — as a freelancer, never let ownership transfer before you’re paid in full), and missing carve-outs for your pre-existing work and tools, which you should license rather than assign. Employees should look for the state-law exception protecting inventions made entirely on your own time and resources.

What to do, in order

  1. Read exactly what work and inventions are being assigned.
  2. As a freelancer, tie ownership transfer to full payment.
  3. Carve out and license your pre-existing IP and tools.
  4. Watch overbroad scope: "related to," own-time inventions.
  5. List prior inventions on any disclosure schedule provided.

Common questions

Does my employer own things I build on my own time?

Often not — several states protect inventions made entirely on your own time without employer resources and unrelated to the business. Overbroad clauses may be unenforceable there.

What’s work made for hire?

A copyright doctrine where qualifying work is owned by the hiring party from creation. Contracts often pair it with an assignment as backup for anything that doesn’t qualify.

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Main AI explains documents and general legal rights in clear terms. It is not a law firm and does not provide legal advice. Laws vary by state and change over time — verify specifics for your jurisdiction, and consult a licensed professional for advice on your situation.