file-based assets
Definition
File-based assets are digital files that a business owns or licenses and that have real monetary value, such as software, photos, videos, documents, databases, or design files. Courts and contracts treat these files as property just like physical equipment, meaning they can be bought, sold, licensed, or stolen. When your business creates or purchases these files, you have legal rights over how they are used and shared.
Example
If your graphic designer creates a logo for your company and saves it as a digital file, that file is a file-based asset that belongs to your business and that you can protect from unauthorized copying or use.
Watch Out
Make sure your contracts clearly state who owns any file-based assets created by freelancers or contractors, because without that language, the creator may legally own the files even if you paid for the work.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.