Non-compete clauses for freelancers


Recently I got into a Reddit discussion that included a question about a non-compete clause for a freelance writer. Such clauses have legitimate uses, but broadly written ones can be nasty. They can damage a writer’s ability to earn an income. I’m not an expert in this area, so I’ve gone looking for reliable material.

PublishLawyer.com has an informative article, primarily addressing fiction writers. It quotes a “typical provision”:

During the term of this Agreement, Author has not prepared or published, and shall not prepare or publish, or participate in the preparation or publication of any work that directly competes with the sales of the Work.

The article says this is about the same as the normal legal obligation when granting exclusive rights to a work. The author can’t sell anything to another party that would “damage the sales” of the work. The problem is that “directly compete” and “damage the sales” are so stretchable. If you’re an expert in a field, you should be able to write more than one piece on a subject, and you should be free to pitch them to different publishers. If you sign a broadly worded non-compete, you could throw that freedom away.

Here’s an article from the Science Fiction Writers of America (SFWA) Contracts Committee warning writers about such clauses.

The non-compete language in these contracts often overreaches and limits authors’ career options in unacceptable ways. … Several contracts that we have seen include overlapping restrictions that could keep the author from publishing another book for more than a year.

It may be possible to get a non-compete clause removed. Some publishers blindly accept boilerplate contracts with absurd clauses from their lawyers but will negotiate. If you can’t get it removed, it may be better to walk away from the deal rather than restrict your ability to sell your future work.

As an independent software contractor with many years of experience, I’ve done both. One contract wanted to lay claim to any ideas I came up with until the contract ended; that’s common for employee contracts but completely unacceptable for an independent contractor. I got the requirement removed.

Another client packed many ridiculous clauses into the contract, including a stipulation that I’d fix all bugs for free. This was a contract for hourly work, not for delivery of a product. I said that those clauses were ridiculous and I wouldn’t sign without having them removed. The client immediately withdrew from negotiations without even offering a compromise. I’m sure I saved myself from a nasty situation there.

There are legitimate cases for non-compete clauses. If they’re limited in scope or you get paid a worthwhile bonus for the restriction, you can consider them. But when you see one, read the whole contract extra carefully and decide if you can live with its requirements.