Does your company employ one or more staff members engaged in creative and innovative activities? Or does your company engage suppliers? The results of such work may be subject to intellectual property (IP) rights, such as copyright. To make the most of these results, it is important that your company is the owner.
There are two types of contract: employment contracts and contracts for services. This distinction is important in determining who is entitled to the IP rights. In principle, the IP rights vest by operation of law – that is, automatically – in the employer, but not in a client.
The client must ensure that the IP rights are transferred to it. Where such a transfer is not possible, the employee will have to grant a licence for their use.
It is advisable to include an IP clause in employment contracts as well. This helps to prevent unnecessary disputes.