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ARTICLE · 11 SEPTEMBER 2026

How Can You Retain Intellectual Property When A Client Will Not Pay?

A service provider who has not assigned their intellectual property still owns it, regardless of what the invoice says. Under the Copyright Act 1968 (Cth), the creator owns copyright by default, and ownership moves only by written assignment. Paying a designer or developer does not transfer ownership on its own. That default gives service providers real leverage where a client refuses to pay. Retention and suspension clauses turn the default into a contractual right to withhold deliverables.

AustraliaIntellectual Property

Summary

  • Under the Copyright Act 1968 (Cth), the creator owns copyright by default, and paying for work does not transfer ownership on its own.
  • Ownership moves only by written assignment, so tying that assignment to cleared payment keeps the leverage until the money arrives.
  • Retention and suspension clauses give the contractual right to withhold deliverables, and without them stopping work can itself be a breach.
  • This guide explains intellectual property retention strategies for designers, developers, consultants and agencies in Australia.
  • LegalVision’s intellectual property lawyers advise service providers on drafting assignment and licensing clauses, negotiating a licence where a client cannot pay, and recovering unpaid invoices.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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