A collaboration contract with a brand: what an influencer must agree on
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Most collaborations in Lithuania are still agreed by message: “We'll send you the product, post it in Stories.” As long as everything goes well, that is enough. The problems start later: the brand runs your video in paid advertising, asks for a fourth revision or “forgets” to pay. Then it turns out that nobody agreed on any of that.
In this part of the guide – what a contract with a brand must cover, what the Law on Copyright and Related Rights says about the transfer of rights and why barter is a transaction too. This is general information, not legal advice: for a large contract it is worth hiring a lawyer.
In short
- Under the law, a contract on the transfer or licensing of an author's economic rights is concluded in writing.
- It must state which rights are transferred, in which territory, for how long and for what remuneration.
- If the modes of use are not specified, it is considered that only those necessary to achieve the purpose of the contract were agreed.
- Remuneration in the form of a product or service is also income that has to be accounted for.
Why a message is not enough
Your photo or video is a copyright work, and permission for a brand to use it is a grant of an author's economic rights. Article 42 of the Law on Copyright and Related Rights provides that a copyright agreement on the transfer of economic rights, a copyright licensing agreement and an agreement commissioning a work are concluded in writing.
There is a tax reason as well. Among the documents that substantiate advertising services, the State Tax Inspectorate (VMI) mentions a contract with the client that clearly defines the product being advertised, who performs the service, the amount of remuneration and the payment terms.
What must be agreed in the contract
| Term | What to write | What happens if it is missing |
|---|---|---|
| Content | How many posts, in what format and of what length, on which platforms | “One post” turns into three |
| Deadlines | When you submit the draft, when you publish, how long the post stays on the account | A dispute over a delay or a deleted post |
| Approval | Who approves, within how many days, how many revisions are included in the price | Endless revisions |
| Usage rights | Where, in what ways and for how long the client may use the content | Your face in an ad a year later |
| Exclusivity | Which competitors you do not advertise and for how long | You lose other orders for an unlimited time |
| Remuneration | The amount or the value of the product, the payment deadline, the invoicing procedure | Payment “when we have the budget” |
| Ad labelling | That the post will be labelled as advertising, and how | The client asks you not to add the label |
| Cancellation | What is paid if the client changes their mind after the work has been done | You worked for nothing |
Usage rights: the most important part of the contract
Article 40 of the law lists what a copyright agreement on the transfer or licensing of economic rights must contain. The mandatory terms include:
- the economic rights transferred or granted, that is, the modes of use of the work, and the type of licence – exclusive or non-exclusive;
- the territory of validity;
- the term of validity;
- the amount of the author's remuneration, the payment procedure and deadlines;
- the dispute resolution procedure and liability.
The same article provides what applies when the parties have left something out:
| What is missing from the contract | What is presumed under the law |
|---|---|
| The term | Either party may terminate the contract by giving the other party written notice one year in advance |
| The territory | The rights are transferred in the territory of the Republic of Lithuania |
| The modes of use | Only those modes that are necessary to achieve the purpose of the contract were agreed |
In practice this means: if you agreed on a post on your own account, that is not yet permission to use it in a television ad or on packaging. But you do not want to argue in court, so write it down clearly.
What is worth separating
- Reposting on the client's accounts – usually the smallest right.
- Paid advertising with your content. For such ads (“partnership ads”), Meta requires the creator's permission: the advertiser cannot run them without permission you have granted on the platform.
- Use beyond social media: on a website, in a newsletter, in print, in a shop.
- Duration: a month, three months, a year. “For an unlimited time” should be the exception and should be priced accordingly.
- Exclusive or non-exclusive licence. Exclusive means that nobody else, and sometimes not even you, may use that content any more.
The law also does not allow the transfer of rights to all of an author's future works, and moral rights, including the right of authorship, remain with the author even after the economic rights have been transferred.
Ad labelling in the contract
Article 8 of the Law on Advertising prohibits hidden advertising. Meta's rules separately require that content created for remuneration in money or gifts be published with the platform's paid partnership label, tagging the partner.
That is why the term “the post must not look like an ad” is not a matter for negotiation but a request to break the law and the platform's rules. Write into the contract that the content will be labelled, and how.
Barter is a contract too
When you receive a product or service for a post, VMI treats it as income in kind: it is taxed and declared in the same way as remuneration in money. So in the case of barter, too, it is worth having a written document that states:
- what you receive and what it is worth;
- what you create in return and when you publish it;
- whether the product stays with you or has to be returned;
- which rights to the content the client receives.
The ACS.lt article “Self-employment: certificate or business certificate” will help you sort out the form of activity and taxes.
Check before you sign
- Is it clear how many revisions are included in the price?
- Does it state where and for how long the client will use the content?
- Does the exclusivity have an end date and a clear set of competitors?
- Does it say when and how payment is made?
- Does it provide for what happens if the client cancels the order?
- Is there nowhere a request not to label the advertising?
Frequently asked questions
Is a contract necessary if I only receive a product?
A written agreement is needed then too: the product is income in kind, and the client receives the right to use your content.
Can a brand use my video in advertising?
Only if you agreed on it. If the modes of use are not specified in the contract, under the law it is considered that only those necessary to achieve the purpose of the contract were agreed.
How long are the rights valid if no term is specified?
In that case the law allows either party to terminate the contract by giving written notice one year in advance.
Can I transfer the rights to all my future content?
No. The law states that the rights to all of an author's future works cannot be transferred.
What should I do if the client asks me not to label the advertising?
Refuse. Hidden advertising is prohibited by the Law on Advertising, and Meta requires the paid partnership label.
Sources
- Lietuvos Respublikos autorių teisių ir gretutinių teisių įstatymas, 38–42 straipsniai
https://e-seimas.lrs.lt/portal/legalAct/lt/TAD/TAIS.81676/asr - Lietuvos Respublikos reklamos įstatymas, 8 straipsnis
https://e-seimas.lrs.lt/portal/legalAct/lt/TAD/TAIS.106104/asr - Valstybinė mokesčių inspekcija. Mokestinės prievolės, susijusios su influencerių (nuomonės formuotojų) veikla
https://www.vmi.lt/evmi/mokestines-prievoles-susijusios-su-influenceriu-nuomones-formuotoju-veikla - Meta. Branded Content Policies
https://www.facebook.com/business/help/221149188908254 - Meta. About partnership ad permissions
https://www.facebook.com/business/help/711659943695726
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