How to protect your intellectual property when working with contractors in NSW

Many NSW businesses rely on independent contractors to design, build, or create key parts of their operations. But without proper legal protections, you may not actually own the intellectual property (IP) they produce. Here’s how to safeguard your business.

Understand who owns IP by default

Under Australian law, contractors usually own the intellectual property they create—even if you paid them to do the work. Unless your contract specifically transfers ownership, you could end up without rights to use what you’ve commissioned.

Use clear contracts

Every contractor agreement should state who owns the IP. Ideally, the contract should include an “IP assignment clause” that transfers ownership of any created material to your business once payment is made.

Confidentiality and non-disclosure agreements

When contractors have access to sensitive business information, confidentiality agreements (NDAs) are essential. These ensure your trade secrets and confidential materials cannot be shared or reused without consent.

Moral rights considerations

Creators retain certain “moral rights” over their work, including the right to be credited. Your agreements should either respect these rights or obtain consent from the contractor to waive them.

Ongoing monitoring and enforcement

Even with contracts in place, you need to monitor how contractors use your materials. Promptly address any unauthorised use of your IP, and consider registering trademarks or patents where appropriate.

Call 1800 000 566 to discuss protecting your intellectual property. You can also book a free consultation using our online calendar, or fill in the form below.