Guide: law
UGC usage rightsWhat your contract should cover
Paying for a UGC video does not automatically give you every right to it. This article explains how copyright and licenses work in the US, why the contract sets the scope and what you need on top for paid ads. It is not legal advice.
Short answer
Under US law the creator owns the copyright in a UGC video unless it is transferred in writing, so you may use the video only as your license allows. Put channels, organic or paid use, term, territory, whitelisting and raw footage in writing, and make sure every person on camera has signed a model release, because the right of publicity is governed by state law.
Copyright and license
The copyright in a video belongs to the person who created it, and you receive a license to use it.
A commissioned video can only be a "work made for hire" owned by you if it falls into one of the statutory categories, such as part of an audiovisual work, and both sides sign a written agreement saying so (U.S. Copyright Office, Circular 30). A transfer of copyright ownership, which includes an exclusive license, is valid only in a signed writing (17 U.S.C. § 204). Most UGC deals use a license instead: it names how, where and how long you may use the video, and the creator keeps the copyright.
Why the wording matters
What the license does not name, you should not assume you have.
If a contract only mentions "social media", it is unclear whether that covers paid ads, connected TV or your website. Disputes over scope are expensive, and courts look at the contract first. Name each use you plan, and add the ones you might want later as priced options.
Organic and paid usage
The most important distinction in UGC rights is between organic use and paid ads.
| Organic usage | Paid usage | |
|---|---|---|
| What it means | posts on your own channels, website and store | paid ads on Meta, TikTok, YouTube and other networks |
| Typical term | often unlimited | 3, 6 or 12 months, or perpetual |
| Market add-on | usually in the base price | inBeat: 20 to 50 % of the base fee, 30 to 50 % for 12 months, 100 to 150 % perpetual; many platforms include it |
| At FNLY Social | unlimited in every package | 12 months included in every package; unlimited paid usage +$75 per video |
Market figures from inBeat, DesignRevision and Trend, as of October 2026.
What the contract should say
A UGC contract should settle the scope of rights in eight clear points.
| Type of license | exclusive or non-exclusive; an exclusive license must be signed in writing |
| Channels | for example Instagram, TikTok, YouTube, website, store, Amazon, email |
| Usage type | organic, paid ads or both |
| Term | start and end date, for paid ads separately from organic use |
| Territory | United States, North America or worldwide |
| Edits | whether you may shorten, re-cut, caption or combine the video with other footage |
| Whitelisting and raw footage | whether ads from the creator's account and delivery of unedited clips are included |
| Model release | a signed release for each person on camera that covers the same media and term |
Whitelisting, Spark Ads and raw footage
Whitelisting and Spark Ads need their own agreement, because they use the creator's name and account.
With whitelisting you run ads from the creator's profile, and with Spark Ads on TikTok you boost a creator's existing post with their authorization. The market charges 20 to 30 % of the base rate per month (inBeat) or $200 to $1,000 a month (Darkroom); FNLY Social charges $150 per creator per month. Raw footage, meaning the unedited clips, is often not included. At FNLY Social it costs 30 % extra, a raw-only single video costs $99, and the Monthly plan includes it.
Model releases and the right of publicity
Everyone recognizable on camera should sign a written model release before their likeness is used in advertising.
In the US, the right to control commercial use of one's name and likeness is state law and differs from state to state. New York, for example, makes it a misdemeanor to use a living person's name, portrait, picture or voice for advertising without prior written consent (Civil Rights Law § 50). A release should name purpose, media and term and match the license you buy. If you extend usage later, extend the releases too.
Note
This article gives a general overview of US law and is not legal advice. For contracts in your specific case, please talk to a US attorney.
Updated:
Sources
- U.S. Copyright Office: Circular 30, Works Made for Hire
- U.S. Copyright Office: 17 U.S.C. Chapter 2, including § 204
- New York Civil Rights Law § 50 (nysenate.gov)
- inBeat Agency: Performance Creative Pricing Guide 2026
- DesignRevision: UGC Creator Pricing in 2026
- Darkroom: Pricing and packaging for UGC
- Trend: Pricing
Rights and disclosure at FNLY Social
FAQ
Frequently asked questions
Do I own a UGC video once I have paid for it?
Usually not. Unless the copyright is transferred in a signed writing, the creator keeps it and you receive a license. The license decides which uses are allowed.
Do UGC videos include usage rights?
Every UGC deal should include a license, but the scope varies a lot. At FNLY Social every package includes unlimited organic use and 12 months of paid ads, set out in writing in your quote.
Can I run an organically licensed UGC video as an ad?
Not unless paid usage is part of your license. At FNLY Social 12 months of paid usage are already included, and unlimited paid usage costs $75 extra per video.
What happens when the paid usage term ends?
Unless agreed otherwise, you may no longer use the video in new or running ads. Organic posts can usually stay up if your organic license has no end date.
What is a model release?
A model release is a written consent from the person shown that their image and voice may be used for a stated purpose, in stated media and for a stated term. It protects you against right of publicity claims, which are governed by state law.
Do I need a separate agreement for whitelisting?
Yes, because ads run under the creator's name and profile. The agreement should name the platform, the campaign and the period. FNLY Social charges $150 per creator per month for whitelisting or Spark Ads.
How does FNLY Social handle rights?
Every quote states channels, organic and paid use and the term in writing. The copyright stays with the creator, and every person on camera signs a model release that covers the scope you buy. Details are on our usage rights and disclosure page.
UGC usage rights
Rights that match how you use the videos
Tell us where and for how long the videos will run. We name the package that fits, with rights set out in writing.