Intellectual property (IP)
The ownership rights to creative and technical work - designs, code, copy, brand assets. Agency contracts must say who owns what, and when.
For example, a contract states that IP in the delivered work transfers to the client on final payment, while the agency keeps its pre-existing tools and the right to show the work in its portfolio. Ownership is explicit, not assumed.
Why it matters to your firm: IP is one of the most consequential things an agency contract decides - get it wrong and you can lose the right to your own methods, or hand over assets before being paid. Tying IP transfer to final payment also gives you real leverage on collection.
- Transferring IP before final payment clears.
- Being silent on pre-existing and background IP.
- Handing over editable source files by default when you need not.