Intellectual property assignment clause

A contract provision specifying when and how ownership of work product (designs, code, copy) transfers from the agency to the client — commonly upon final payment rather than upon delivery.

Example

A contract's IP assignment clause states that full ownership of the delivered website code transfers to the client only upon receipt of final payment, not upon project completion.

Why it matters for agencies

Tying IP transfer to final payment (rather than delivery) gives an agency real leverage on outstanding invoices, including disputed change-order amounts — a client withholding payment over a scope disagreement doesn't automatically get to use the work while the dispute is unresolved.