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July 1, 2025 | BusinessEntertainment

Who Owns the Work? Navigating IP Disputes Between PR Firms and Clients

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Author(s)
Jari Wilson

Associate Attorney

Introduction: IP Is the Heart of PR and Creative Work

In the world of public relations (PR) and creative services, intellectual property (IP) is not just an output—it is the core value of the services provided. From campaign strategies to visual assets and written content, the work that PR and creative agencies produce is built on original ideas and execution. But while the work may be creative, the business around it must be grounded in legal clarity. Too often, agencies and clients enter into working relationships without a mutual understanding of who owns what. When IP ownership is left vague or undefined, disputes can arise, sometimes years after the work is completed. These disputes can be expensive, damaging, and entirely avoidable with the right legal framework in place. For firms representing either side of the agency-client relationship, ensuring contractual clarity around IP rights is essential.

What Qualifies as IP in PR and Creative Work?

Intellectual property in the PR and creative space can take many forms. Copyrighted material includes marketing copy, press releases, pitches, client biographies, talking points, whitepapers, social media content, logos, and videos. Trademarks may include taglines or brand identifiers developed during a rebranding campaign. Trade secrets might consist of proprietary strategy documents, curated media contact lists, or internal analytics tools. Additionally, in celebrity endorsements or influencer marketing, the right of publicity may come into play, governing how a person’s name, image, or likeness can be used commercially. These are not abstract legal concepts; they represent the value and differentiation that agencies provide. Clients often assume they automatically own the final product, while agencies may assume the right to reuse it or showcase it in portfolios. Without explicit contractual terms, both sides could face legal liability.

Ownership Models: Work-for-Hire vs. Licensing

Two common models determine IP ownership in agency work: work-for-hire and licensing. Under a work-for-hire arrangement, the client owns all rights to the work once it is created, typically upon payment. This model is common in brand development or proprietary campaigns intended for the client to have exclusive use of the content and campaign elements. However, work-for-hire is not automatic. Courts generally require clear, written contracts stating that the work is being created under a work-for-hire agreement. Otherwise, default copyright law favors the creator.
Licensing, on the other hand, allows the agency to retain ownership of the work while granting the client limited rights to use the copyrighted work. This model works well for non-exclusive assets such as templates, software tools, or general marketing content. Licensing agreements must specify the scope of use, including where, how long, and in what context the client may use the materials. Both models are legally valid, but choosing the right one and putting it in writing is crucial.

The Risk of Unclear or Missing IP Clauses

When contracts fail to address IP ownership clearly, problems inevitably arise. A PR agency might discover that a client is reusing content in a way that was not initially agreed upon. A client might see their custom pitch deck repurposed for a competitor. In some cases, without a proper assignment agreement, an independent contractor may claim rights to a campaign component they developed. These scenarios are not uncommon, and in the absence of a clear agreement, the Copyright Act defaults to favoring the creator. That means agencies often retain ownership, even if clients believe they paid for full rights. Without defined terms, confusion and conflict are almost guaranteed.

Disputes and Enforcement

When IP conflicts arise, resolution often begins with a direct discussion between the parties. If that fails, a formal notice of breach may be warranted, followed by mediation, arbitration, or litigation, depending on the terms of the agreement. It’s also important to assess the long-term business relationship—sometimes, transferring limited rights or renegotiating terms may serve both sides better than aggressive legal action. Still, for agencies especially, it is critical not to release final deliverables to a client without signed contracts and full payment in place.

Conclusion: Protect the Work That Drives Your Business

In the PR and creative industries, intellectual property is the most valuable product. IP is how agencies build their reputation and what clients retain these agencies for. But, without well-drafted contracts that define IP ownership, even the best work can lead to misunderstandings and legal risk. Whether you are an agency, a freelancer, or a client, the key is to define ownership early, communicate expectations clearly, and treat your contracts not just as legal documents but as guides for a healthy and collaborative business relationship.

If you have questions about IP rights or need help drafting or reviewing your contracts, contact us today to protect your work and your business.

Contributions to this blog by Emily O’Neill.

 

Photo by Getty Images for Unsplash
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