Skip to content

Part 3: What does a creative agency agreement need to cover?

In a creative agency agreement, there is a very important section which needs to be covered in significant detail. This is the section dealing with intellectual property rights.

Following on from Part 1 and Part 2 in this series, in Part 3 we will cover what needs to be addressed in respect of intellectual property.

Client IP Material

Generally, all intellectual property of the client, which we will refer to as Client IP Material, provided by the client for the creative agency to provide its services will be retained by the client. To make this abundantly clear, the agreement should have a clause stating that nothing in the arrangement between the creative agency and the client will constitute a transfer or assignment of the intellectual property rights to the Client IP Material. The creative agency will simply have a licence to use the client’s intellectual property for the purpose of providing services for the duration of the agreement.

Created IP Material

Where the creative agency develops intellectual property for the client, which we will refer to as Created IP Material, the client will generally want ownership of such intellectual property.

A standard clause in a creative agency agreement will normally provide that the creative agency agrees to assign all right, title and interest in the Created IP Material, in any given campaign or project to the client. In addition, upon request by the client, it must execute all documents and perform all acts necessary to vest all intellectual property rights of the Created IP Material in the client.

Continue reading this article below the form
Loading form

Third Party IP Material

Sometimes in the provision of the services, the creative agency will use material that is owned by a third party, which we will refer to as Third Party IP Material.

Where the creative agency uses Third Party IP Material, it is important the client is adequately protected. If you are the client, you may wish to include a clause in the agreement stating that where the creative agency uses Third Party IP Material, the creative agency must notify you and obtain an assignment or a licence of all necessary rights as required in respect of the Third Party IP Material.

Conclusion

Intellectual property is a valuable asset and there are often disputes over the ownership of intellectual property that is in arrangements involving designs, creations and artworks. A detailed intellectual property rights clause can help both parties avoid lengthy disputes over ownership of intellectual property. If you are entering into a creative agency agreement, and you are unsure of your rights in respect of intellectual property, you should have the agreement reviewed by a contract lawyer before you sign. Once the agreement is signed, it can be very difficult to amend the terms, particularly if the terms are favourable to the other party.

Register for our free webinars

Demystifying M&A: What Every Business Owner Should Know

Online
Understand the essentials of mergers and acquisitions and protect your business value. Register for our free webinar.
Register Now

Social Media Compliance: Safeguard Your Brand and Avoid Common Pitfalls

Online
Avoid legal pitfalls in social media marketing and safeguard your brand. Register for our free webinar.
Register Now

Building a Strong Startup: Ask a Lawyer and Founder Your Tough Questions

Stone & Chalk Tech Central, Level 1 - 477 Pitt St Haymarket 2000
Join LegalVision and Bluebird at the Spark Festival to ask a lawyer and founder your startup questions. Register now.
Register Now

Construction Industry Update: What To Expect in 2026

Online
Stay ahead of major construction regulatory changes. Register for our free webinar.
Register Now
See more webinars >
Priscilla Ng

Priscilla Ng

Read all articles by Priscilla

About LegalVision

LegalVision is an innovative commercial law firm that provides businesses with affordable, unlimited and ongoing legal assistance through our membership. We operate in Australia, the United Kingdom and New Zealand.

Learn more

We’re an award-winning law firm

  • Award

    2025 Future of Legal Services Innovation Finalist - Legal Innovation Awards

  • Award

    2025 Employer of Choice - Australasian Lawyer

  • Award

    2024 Law Company of the Year Finalist - The Lawyer Awards

  • Award

    2024 Law Firm of the Year Finalist - Modern Law Private Client Awards

  • Award

    2022 Law Firm of the Year - Australasian Law Awards