Candy Company Faces Copyright Battle Over Marketing Assets

Dispute highlights importance of signed IP agreements to ensure ownership of marketing materials

Jan. 28, 2026 at 4:39am

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A candy company and a freelance graphic designer are locked in a legal battle over the rights to marketing materials the designer created for the company over a three-year period. Without a written contract in place, the company believed it had an implied license to continue using the assets, but the designer has now registered the copyrights and filed a lawsuit for infringement. A federal court has ruled that a jury will determine whether the company had permission to use the materials, underscoring the risks of relying on implied agreements rather than securing clear, written ownership rights.

Why it matters

This case highlights the importance for businesses to have signed intellectual property agreements in place when working with freelancers or outside contractors. 'We paid for it' is not the same as owning the copyright, and without a written agreement, companies risk facing costly legal battles over the rights to marketing assets they have commissioned and paid for.

The details

The candy company collaborated with an independent graphic designer from 2018 to 2021, paying approximately $230,000 for the designer's work. After their agreement ended, the company continued to update and reuse the campaign assets. The designer then registered the copyrights and filed a lawsuit for copyright infringement. The company counter-sued, asserting there was an implied license allowing them to use the material. However, a federal judge denied the company's motion to dismiss the case, ruling that a jury will decide whether the business had permission and the scope of that permission.

  • The company worked with the freelance graphic designer from 2018 to 2021.
  • After their agreement ended, the company continued to use the campaign assets.
  • The designer registered the copyrights and filed a lawsuit for copyright infringement in 2022.

The players

Candy Company

The business that collaborated with the freelance graphic designer to create marketing assets.

Freelance Graphic Designer

The independent contractor who created marketing materials for the candy company over a three-year period.

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What they’re saying

“Without a signed IP agreement, you risk facing litigation over whether you implicitly received permission to use the work you paid for. That's costly roulette.”

— William H. Honaker, Attorney (candyusa.com)

What’s next

The judge has ruled that a jury will determine whether the candy company had an implied license to continue using the designer's files. This decision will have significant implications for the outcome of the case.

The takeaway

This case underscores the importance for businesses to have clear, written agreements in place when working with freelancers or outside contractors to create marketing assets. Relying on implied permissions can lead to costly legal battles over ownership rights, as this candy company has learned.