Freelance IP Clause Red Flags: Don't Give Away Your Work for Free

The IP clause is where most freelance relationships either work or blow up. The issue is always the same: who owns what, and when does ownership transfer.
Tie IP Transfer to Payment
Your contract should say: "All right, title, and interest in deliverables shall transfer to Client upon receipt of full payment for the corresponding milestone." Without it, the client can own your work while your invoice sits unpaid. I learned this freelancing for a startup that ran out of money mid-project — my work was live on their site, my invoice was 60 days overdue, my contract said IP transferred "upon creation." Zero leverage.
Reserve a Portfolio License
Add: "Contractor retains a non-exclusive right to display deliverables in portfolios and case studies." Most clients are fine with this. Some push back on confidentiality grounds — negotiate, but it's worth asking.
Beware Pre-existing IP Grabs
Some contracts claim all IP you've "ever created or will create." Limit assignment to deliverables produced under this specific engagement.
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Decode My LeaseFrequently asked questions
What if the client wants exclusive rights?
Exclusive doesn't mean work-for-hire. You can grant an exclusive license while retaining ownership, preserving portfolio rights.