The dreaded work-for-hire contract

[thanson]

I'm relatively new to freelancing, and I'm definitely still in the process of growing my business. So far I've lost out on a couple of (small) jobs because I wouldn't sign a work-for-hire contract without an additional fee from the client to compensate me for giving up the copyright to my work. Both of these potential clients firmly demanded a work-for-hire contract and were surprised when I said I typically don't do work-for-hire--one of them even suggested my refusal to sign a work-for-hire contract without additional compensation would hurt my business, as he has never met a designer who wouldn't sign one!

Are work-for-hire contracts really that common among freelancers, or am I just meeting the wrong potential clients? I'm about to begin freelancing full-time, so I hate losing out on potential business, but I also feel this is a scenario where I should look out for my own rights. How have you handled clients that demanded work-for-hire contracts, and am I hurting my business and losing out on valuable opportunities by NOT sigining them?

[PrintDriver]

We actually hire freelancers on work-for-hire contracts. The thing is, they come to our facility, do the work using our tools and supplies, and the work is for an outside client of ours. Some design firms work this way too. A designer is hired on a project basis to work on a particular project for an outside client and all work belongs to that client-including what is done by the studio. Sometimes the designer does work on his own comp at home but always with the added support of the design firm behind him, from feeding him copy and images (no chasing clients) to collecting payment to pay him (no chasing billing).

I can't figure a person in freelance, working offsite on their own, with their own tools, working directly for a company rather than an outside client of that company, signing such a deal. But that's just my experience.

[budafist]

That sounds right PD. If you are working as if you are their employer, then go ahead an sign the work for hire, but if you are using all your own equipment and possibly your own staff at your own office, it should really be freelance prices and contract.

[PrintDriver]

She meant "If you are working as if you are their employee..."
:D

[budafist]

Thanks PD. I haven't slept in 2 days. I could even say that I haven't slept since Wednesday night and it's Saturday afternoon here.
But that would be cheating since I jumped the space-time continuum.

[thanson]

You guys are right--to clarify, I'm taking about being asked to sign a work-for-hire contract for freelance work I do using my own software, my own computer, in my own home. Glad to hear I'm not crazy for thinking this isn't an appropriate contract to sign, but I do worry that the loss of business will hurt me.

PS. Buda--get some rest! I wouldn't be able to type coherently at all!

[PrintDriver]

Ah, but are you doing work for this company, or for a client they in turn are giving up rights to?

Well, you could always tell them what you would cost as a work-for-hire without telling them that you are charging them extra for the rights you are giving up. :D

Just make sure your contract includes a clause that you do reserve the right to use the pieces created for them for self promotion purposes (saying it that way includes web use). Get it in writing. They may decline web use or put modifiers on it but at least be able to include it in an interview portfolio.

[thanson]

Not a bad idea, and in fact that's what my husband suggested... except I can never tell who's expecting me to do a work-for-hire and who's okay with signing my regular old freelance contract until I've already given them a proposal and a contract to view and sign. Then if I tell them that a work-for-hire will cost them extra, they get upset about paying extra for something that "should be theirs anyway."

Edited to add: It's work directly for the company, not for a client of theirs.

[PrintDriver]

Are you running into this a lot?
Any chance you can ask up front if the job is work for hire?

It's late Friday, actually early Saturday on a holiday weekend. Maybe on Tuesday some of the other freelancers will chime in. Jeff Fisher's opinion is the one I'd most like to hear as I'm looking at this from a slightly different window. I just can't imagine a Pro freelancer doing it though.

[PrintDriver]

Also, the work can get messy with all sorts of image rights issues... If you do this, make sure they sign and pay for all image sources so if they break the contract rules, the sources don't come looking for you.

[thanson]

No, I'm not really running into this a lot--I've only lost two potential clients because I wouldn't sign a work-for-hire contract at my normal freelance rate (I ask an extra 50% of the design fee to give up my copyright to the job, and it should be noted that these were both very small jobs--under $500). I've had plenty more happy clients who had no problem with my normal freelance contract, but as I mentioned, I'm about to start doing this full-time and I always hate to lose a potential client.

I got a little distracted over the long weekend myself, but I'd definitely love to hear more opinions on this issue!