UGC contract template

Managing contracts is a critical aspect of any business – especially for legal, HR and commercial teams handling a high volume of low-complexity contracts. User-generated content (UGC) contracts are no exception. 

To streamline this process, it’s essential to understand what UGC contracts are, their purpose and how to manage them effectively. This article covers all you need to know about UGC contract templates and how Juro can help automate these contracts.

What is a UGC contract?

A UGC contract is a legal agreement between a company and a content creator (often a customer, user or influencer) that outlines the terms and conditions for the creation and use of user-generated content. This content may include photos, videos, reviews, blog posts and social media posts. The contract ensures that both parties understand their rights and obligations regarding the content's creation, usage and ownership.

What is the purpose of a UGC contract?

The primary purpose of a UGC contract is to protect the interests of both the company and the content creator. Here’s how it does that:

• Clarity: A well-drafted UGC contract provides clear expectations for both parties. It specifies the type of content to be created, the quality standards to be met and the deadlines for submission. This clarity helps prevent misunderstandings and makes sure that both parties know what is expected.
• Rights: UGC contracts define the ownership and usage rights of the content. This is crucial because it prevents disputes over how the content can be used and who owns it. For example, a company may want the exclusive right to use the content for marketing purposes, while the creator retains the right to showcase it in their portfolio.
• Compensation: The contract outlines the payment terms for the content creator. This includes the amount, payment method and schedule. Clear compensation terms ensure that the creator is fairly compensated for their work, which helps maintain a positive working relationship.
• Confidentiality: UGC contracts often include confidentiality clauses to protect sensitive information shared during the collaboration. This can include trade secrets, marketing strategies and other proprietary information. These clauses help safeguard the company’s interests and maintain trust between the parties.
• Liability: The contract includes indemnity and liability clauses to protect both parties. These clauses limit the liability of the company and the creator in case of contractual disputes or issues with the content. For instance, if the content infringes on someone else’s intellectual property, the contract can specify who is responsible for resolving the issue.

By having a UGC contract in place, companies can avoid misunderstandings and potential legal issues while ensuring that they have the necessary rights to use the content for marketing and promotional purposes.

Who manages UGC contracts?

Managing UGC contracts typically involves several stakeholders within a company.

Legal teams are responsible for drafting, reviewing and approving UGC contracts. They ensure that the contract meets legal standards, protects the company’s interests and complies with relevant laws and regulations. Legal teams also handle any disputes that arise from the contract.

HR teams may be involved if the content creators are employees or contractors. They make sure that the contracts comply with employment laws and company policies. HR teams also manage the onboarding process for new content creators and handle any related HR issues.

Marketing teams often manage the relationships with content creators. They ensure that the content meets the company’s branding and quality standards. Marketing teams also coordinate the content creation process, including setting deadlines and reviewing submissions.

Commercial teams handle the financial aspects of UGC contracts. They manage payments to content creators and budget for UGC campaigns. Commercial teams also track the performance of UGC campaigns and analyze their return on investment.

When are UGC contracts used?

UGC contracts are used in various scenarios, including –

Influencer collaborations

When partnering with influencers to create content for social media campaigns, UGC contracts ensure that both parties understand the terms of the collaboration. These business contracts specify the type of content to be created, the platforms where it will be posted and the compensation for the influencer.

Customer testimonials

Companies often use UGC contracts when obtaining customer reviews and testimonials for marketing purposes. These contracts ensure that the company has the right to use the testimonials in various marketing materials – such as websites, brochures and advertisements.

Content competitions

When running contests where users submit their content, UGC contracts outline the rules of the competition, the rights to the submitted content and any prizes or compensation for the winners. This makes sure that the process is fair and transparent for all participants.

Product reviews

UGC contracts are used when working with users to create reviews or unboxing videos. These contracts specify the type of review content to be created, the platforms where it will be shared and any compensation for the reviewer.

Social media campaigns

When encouraging users to share branded content on their social media profiles, UGC contracts ensure that the content meets the company’s standards and that the users are compensated fairly. These contracts also specify the usage rights for the content.

What should a UGC contract template include?

A comprehensive UGC contract template should include the following elements:

Company. Name, address and contact information of the company.

Content creator. Name, address and contact information of the content creator.

Content description. Detailed description of the content to be created, including format, length and quality standards.

Deadlines. Specific dates for content delivery and approval.

Ownership. Specifies who owns the content and any related intellectual property rights.

Usage rights. Defines how the company can use the content across various platforms and media.

Payment terms. Amount, method and schedule of payments to the content creator.

Royalties. Any royalties or bonuses for the content creator based on the performance of the content.

Confidentiality clause. Protects any sensitive information shared during the collaboration.

Indemnity clause. Specifies who is responsible for resolving any disputes or issues with the content.

Liability clause. Limits the liability of both parties.

Termination clause. Conditions under which the contract may be terminated by either party.

Dispute resolution clause. Methods for resolving any disputes that may arise, such as mediation or arbitration.

Including these elements ensures that the contract covers all necessary aspects and protects both the company and the content creator.

The manual approach to managing UGC contract templates

Managing UGC contracts manually can be time-consuming and error-prone. Here’s what it typically involves:

1. Drafting: Creating the contract from scratch or modifying an existing template. This requires significant time and legal expertise to ensure that the contract meets all legal standards and covers all necessary aspects.
2. Reviewing: Legal teams review the contract to ensure it meets legal standards and protects the company’s interests. This review process can take time, especially if multiple stakeholders need to provide input.
3. Approval: Multiple stakeholders – such as legal, HR, marketing, and commercial teams – may need to approve the contract. Coordinating this approval process can be challenging and lead to delays.
4. Signing: Collecting signatures from all parties, often via email or physical copies. This can be a cumbersome process, especially if the parties are in different locations.
5. Storing: Keeping track of signed contracts, usually in digital folders or physical files. Managing these storage systems can be challenging, especially if the volume of contracts is high.
6. Monitoring: Ensuring that all terms are met, including deadlines and payments. This requires ongoing monitoring and follow-up to ensure compliance with the contract terms.

This manual process can be inefficient and lead to bottlenecks, especially for teams handling a high volume of contracts.

Automate UGC contracts with Juro

Juro’s AI-native contract management platform can streamline the creation, execution, and management of user-generated content (UGC) contracts. Here’s how:

Automated templates

Juro empowers teams to generate, review, and approve UGC contracts without needing constant legal intervention. By enabling marketing and content teams to self-serve on standard UGC contracts from their familiar tools, legal departments can focus on more complex matters, increasing overall productivity.

Collaborative workflows

UGC contracts often require input and approval from multiple stakeholders, including legal, marketing and content creators. Juro’s collaborative workspace facilitates real-time collaboration, allowing all parties to work together seamlessly. This reduces bottlenecks and accelerates the contract lifecycle – from drafting to execution.

Secure contract storage

Juro provides a single, secure repository for all UGC contracts. This centralized storage offers comprehensive visibility into contract statuses, deadlines and obligations. It also simplifies retrieval and auditing, ensuring no contract is ever lost or overlooked.

Reporting and analytics

Juro’s platform includes powerful analytics tools that provide real-time insights into UGC contract performance and risk. By analysing contract data, businesses can make informed decisions, identify trends, and proactively address potential issues.

By leveraging these features, Juro helps businesses manage their UGC contracts more efficiently, reducing risks and improving overall operational effectiveness.

Juro's AI-native contract automation platform empowers all teams to create, agree, execute and manage contracts up to 10x faster than traditional tools. To find out more, hit the button below to book your personalized demo.