Who Is the Registered Copyright Author When Hiring Freelancers That Have Their Own Business?

Question

If I hire John Smith for a NON-work-for-hire project to develop a cartoon logo for me (I specifically am using a non-work-for-hire example so that my question isn't clouded with all of the complexity of work-for-hire arrangements), and John Smith is a sole proprietor using a Doing Business As tradename, or John Smith is a single-member LLC, who is the author of the commissioned work when registering the copyright with the U.S. Copyright Office? Is it John Smith, the natural person, or is it the business with whom I've executed a signed independent contractor agreement?

Answer 1

John Smith or their employer

This isn’t you in either case.

On creation, the author of a work owns the copyright. Where the author is performing work for hire, their employer owns the copyright on creation. For a DBA, there is no other person than John Smith involved so they hold the copyright. For an LLC, this is a different natural person than John Smith and is employing him (even if he isn’t paid wages) on a work-for-hire basis so the LLC owns the copyright.

Since copyright in the US can only be transferred in writing and the contract you describe between you and the creator (whoever they are) doesn’t do that, you don’t own the copyright. If the contract is silent about licensing the work to you, it’s likely there is an implicit perpetual, royalty-free license allowing you to use the logo for the purposes contemplated by the contract. For example, if you a film producer making children’s television you can use the logo for that. If you later branch out and start making adult films, this is arguably outside the implicit licence - in countries other than the US such use would need the approval of the holder of the moral rights even if you owned the copyright.

Answer 2

John Smith, no one else

Sionce this isn't a work-for-hire situation, the client will not be the author of the work under US law. JS can transfer the copyright as part of the commission agreemnt, or in a later agreement, but the client will not be the "author". Since JS cannot be the employee of his own single-member LLC, the LLC is not the author either. JS may, if he chooses, transfer the copyright to the LCC, but the natural person will stay the author for legal purposes, and it is from the natural person's death date that the copyright term, will be calculated.

JS should be listed as the author in any copyright registration. If the copyright has been transferred, another person or entity can be listed as the current claimant.