What To Do When A Client Uses Your Work Without Paying

You delivered the designs, content, code or campaign files. Then the invoice sat unpaid - while the client kept using your work as if everything was fine.

It feels unfair because it is. But before you send an angry email or shut everything down, it helps to be clear on two things: the debt they owe you, and who has the right to use the work.

Those two issues often overlap. A strong response usually combines a payment demand with a clear position on copyright, licence rights and what happens if the client keeps using your work without paying.

The right move depends on your contract, your payment terms and how the work is being used, but there are practical steps you can take straight away.

What Should You Do First If A Client Hasn't Paid?

The first thing to do is pause, gather your records and check exactly what your contract says before you threaten legal action or cut off access.

Your position is much stronger when you can show a clear paper trail. Even if the client has been difficult, keep your own messages calm and factual. Assume every email may need to be read later by an adviser, mediator or decision-maker.

Keep A Record Of The Key Facts

Save copies of:

• The signed contract, proposal, written statement of work or email chain agreeing the job
• Your invoice, including the date issued, due date and payment details
• Any approval messages, feedback, sign-offs or evidence the work was delivered
• Screenshots showing the client is using the work, such as a live website, social media post, product page or advert
• Messages where the client accepts the work, raises complaints or promises payment
• Any files, version history or delivery records showing what you created and when

Then check the contract for these points:

• When payment was due
• Whether there were milestone payments or a final balance before delivery
• What happens to intellectual property if payment is late
• Whether the client gets a licence or full ownership
• Whether you can suspend services or withdraw access
• Any process for disputes, late fees or termination

If there's no agreed payment date and this is a business-to-business contract, the Late Payment of Commercial Debts (Interest) Act 1998 may help. In many B2B cases, payment is late 30 days after the customer receives the invoice or you deliver the goods or provide the services, whichever is later. If the contract includes an acceptance or verification procedure, that can affect the timing, so check the terms carefully.

Does The Client Own The Work If They Haven't Paid?

It depends on your agreement, but in the UK a client doesn't automatically own copyright just because they commissioned or received the work.

Under the Copyright, Designs and Patents Act 1988, copyright generally belongs to the person or business that created the work, unless there's an exception or a valid transfer. One major exception is employee-created work, where the employer usually owns copyright in work created in the course of employment.

For freelancers, agencies and studios, the key question is whether copyright was assigned to the client. A copyright assignment must usually be in writing and signed by or on behalf of the copyright owner.

This means your contract matters a lot. It might say:

• Copyright transfers only after full payment: This is often the safest position for creative and technical suppliers.
• The client gets a licence until payment is complete: The client may use the work in a limited way, but doesn't own it yet.
• The client owns the work from creation: This can weaken your leverage if they refuse to pay, although you may still have a debt claim.
• There's no IP clause: You may still own copyright, but the client may argue they have an implied licence to use the work for the purpose they paid you to create it for.

Unpaid design work, photography, copywriting, video, branding, software and website builds can all raise different IP issues. For example, a logo may involve copyright, trade mark strategy and brand guidelines. Software may involve code you wrote, third-party libraries, open source components, pre-existing tools you reuse across projects and software licence terms for the finished product.

If the contract is unclear, get advice before making firm statements about ownership. Overclaiming can make a commercial dispute harder to resolve.

Can You Stop Them Using The Work Until They Pay?

Yes, you may be able to stop them using the work if their right to use it was conditional on payment, but you need to be careful about how you do it.

If your contract says the client only receives ownership or a licence after full payment, you can usually write to them saying they don't currently have permission to use the work. You can then require them to pay, stop using the work, remove it from public channels, or negotiate a settlement.

That said, you should avoid sudden self-help steps that create extra risk for your business. For example, don't break into systems, delete files, take down a live website or disable business-critical tools unless your contract clearly allows it and you've had advice on the safest way to proceed.

This is especially important if you host a website, manage ad accounts or hold data for the client. If personal data is involved, the UK GDPR and Data Protection Act 2018 may affect what you can do with that data, how long you keep it and how you respond to access requests.

Safer Options Before You Pull The Plug

• Send a final reminder asking for payment by a clear date
• Stop doing new work until overdue invoices are paid
• Refuse to release editable files, source files or final assets until payment clears, if your contract supports this
• Send a formal demand letter that also deals with IP rights
• Offer a short payment plan in exchange for continued use
• Ask them to remove the work from their website, adverts, packaging or social media until payment is made

A measured approach protects your leverage without making the dispute bigger than it needs to be.

How Do You Recover An Unpaid Invoice In The UK?

You usually start by sending a clear payment reminder, then a formal demand letter if the invoice still isn't paid.

For many unpaid invoice disputes, the aim isn't to rush into a formal claim. It's to show the client you're organised, you know your rights and you're giving them a fair chance to fix the issue.

A Practical Debt Recovery Sequence

1. Send a polite reminder: Confirm the invoice number, amount, due date and payment details.
2. Ask if there's a genuine dispute: If they say the work is defective, ask them to identify the issue in writing.
3. Send a formal demand: Give a deadline, usually 7 to 14 days for a business client, depending on the situation.
4. Add late payment rights if they apply: For B2B debts, statutory interest may apply at 8% plus the Bank of England base rate.
5. Claim fixed compensation if available: Under the late payment rules, this is £40 for debts under £1,000, £70 for debts from £1,000 to £9,999.99 and £100 for debts of £10,000 or more.
6. Escalate if needed: If payment still doesn't come through, you may consider a letter before claim, mediation, a money claim or other recovery options.

If your client is an individual or sole trader rather than a limited company, different pre-action rules may apply before a court claim, including giving them more time and specific information. For example, the Debt Pre-Action Protocol can require a 30-day response period before you start a claim against an individual debtor.

If the client is a limited company, check the Companies House record to confirm the correct legal name and registered office. Many payment disputes become messier because the invoice was addressed to a trading name, the wrong company in a group, or a person who says they were acting for someone else.

How Do You Write A Demand Letter That Also Protects Your IP?

A good demand letter should deal with both issues clearly: the unpaid debt and the client's lack of permission to keep using your work if payment was a condition of use.

You don't need to make it aggressive. In fact, a calm, precise letter often works better because it gives the client a path to fix the problem.

Here is a useful outline you can adapt, although a lawyer should tailor it before you use it in a serious dispute:

1. Parties: State your business name, the client's correct legal name and the project name.
2. Background: Briefly set out what you were engaged to create and when you delivered it.
3. Invoice Details: List the invoice number, issue date, due date and amount outstanding.
4. Use Of The Work: Identify where and how the client is currently using the designs, content, software or other deliverables.
5. IP Position: Explain what the contract says about ownership, assignment or licence rights, especially any full-payment condition.
6. Demand For Payment: State the amount due, any late payment interest or compensation claimed, and the payment deadline.
7. Demand About Use: Ask the client to stop using the work unless they pay, or confirm the agreed basis on which they may continue using it.
8. Next Steps: Explain what you may do if they don't respond, such as suspending services, seeking recovery of the debt or taking advice on copyright infringement.
9. Reservation Of Rights: Make clear that you aren't giving up any rights by sending the letter.

Be careful with the phrase without prejudice. It's usually used for genuine settlement negotiations, not for a formal demand where you may later want to rely on the letter as evidence. If you're unsure, get advice before adding legal labels to your correspondence.

Also, don't exaggerate. If the contract says the client owns the work on creation, don't claim they have no right to use it. Your stronger argument may be the unpaid invoice rather than copyright infringement.

How Can You Settle The Dispute And Prevent It Happening Again?

You can often settle by agreeing payment terms and matching the client's usage rights to what they actually pay.

Settlement can be a sensible business decision, especially if the client is willing to pay most or all of the invoice quickly. The goal is to turn an uncertain dispute into a clear outcome: money in your account, your work protected and the client no longer sitting in a grey area.

Worked Example

Maya runs a small brand studio in Manchester. She agrees to create a logo, brand guide and website visuals for £3,600 plus VAT. The client pays a £1,200 deposit, but doesn't pay the final £2,400 invoice.

Two weeks later, Maya sees the logo on the client's website and Instagram. Her contract says copyright transfers only after full payment, and the client has no licence to use final assets until all invoices are paid.

Maya sends a formal demand asking for:

• The £2,400 balance
• £70 fixed late payment compensation because the unpaid debt is between £1,000 and £9,999.99
• Statutory interest at 8% plus the current Bank of England base rate, calculated to the payment date
• Removal of the logo within 48 hours if payment isn't made within 7 days

The client says cash flow is tight but they want to keep using the brand.

Maya agrees to a settlement: the client pays £2,400 within 5 business days, Maya waives the fixed compensation and interest, and copyright transfers only once cleared funds arrive. If the payment isn't made, the client must stop using the logo and brand files.

That outcome isn't perfect, but it gets Maya paid quickly and avoids a drawn-out fight.

Clauses To Add To Your Future Contracts

To reduce the chance of this happening again, your client agreement or business terms and conditions should cover:

• Deposits And Milestones: Require payment before key stages, not only at the end.
• No Transfer Until Full Payment: Make copyright assignment conditional on cleared funds.
• Limited Licence Before Payment: If the client needs to review or test work, use clear copyright licence terms to explain exactly what they can and can't do.
• Suspension Rights: Allow you to pause services if invoices are overdue.
• Late Payment Terms: Refer to interest, compensation and recovery costs where legally available.
• Acceptance Process: Set a clear timeframe for feedback so clients can't stay silent and later claim they never approved the work.
• Source Files And Admin Access: State when editable files, code repositories, passwords or final assets will be released.
• Change Requests: Make extra rounds, new features or scope changes chargeable.

Free templates can miss the detail that gives you leverage in a real dispute. Your documents work best when they match how you actually deliver work, invoice clients and hand over IP.

Key Takeaways

• If a client is using your work without paying, deal with both the unpaid invoice and the IP position.
• In the UK, copyright doesn't automatically transfer to a client just because they commissioned the work.
• Your contract should say whether ownership or licence rights depend on full payment.
• For B2B debts, late payment interest and fixed compensation may be available under UK late payment rules.
• A calm demand letter can ask for payment, require the client to stop using the work and open the door to settlement.
• The best protection is a tailored contract with clear payment milestones, IP clauses and suspension rights.

If you'd like help with your client contracts, unpaid invoice strategy, copyright ownership clauses or a demand letter to a client using your work, you can reach us at 08081347754 or team@sprintlaw.co.uk for a free, no-obligations chat.