Chapter 3. For Freelancers: A Survival Guide to Contracts

Freelancers might look free, but in reality, they face the most dangerous contracts in the legal blind spot. For freelancers who aren’t protected by labor standards acts, a contract is their ==“Only Shield.”==

1. Who Owns the Copyright? : Intellectual Property Rights

The most painful toxic clause is when the client takes ‘all rights’ to what you’ve created.

• Toxic Pattern: “All intellectual property rights, including copyright and the right to create derivative works, for the outcomes of this project shall be vested in the ‘Client’.”
• Solutions:
  1. Licensing: You keep ownership, but grant the client permission to use it for that specific purpose.
  2. Scope Limitation: “To be used only for Project A; any other use requires separate agreement.”
• Caution: If you give up the ‘right to create derivative works’, you cannot claim any rights even if the client makes merchandise or videos based on your work.

2. “Just a Few More Fixes”: The Pit of Infinite Revisions

This hell begins when the end of the project is not clearly defined.

3. “Pay You Later”: Payment Delays and Non-payment

Clauses that block the freelancer’s lifeline: payment.

• Toxic Pattern: “Payment to be made within 60 days of final inspection completion.” (In reality, this leads to infinite inspection delays.)
• Defense Logic:
  • Deposit: Always get a 30-50% upfront payment.
  • Late Interest: Specify late interest of 6-15% per annum.
  • Acceleration Clause: “The entire balance becomes due immediately if any part is not paid on time.”

4. Trends in the Global Freelance Market

Key Checklist

• Make sure to distinguish between ‘Copyright Transfer’ and ‘Licensing’.
• It is beneficial to retain the ‘Right to Create Derivative Works’.
• Clearly state additional costs for requests that exceed the revision limit or scope.
• Keep records of all instructions via chat, email, etc.