In a work-for-hire arrangement, the person or company paying for the work is considered the legal author and owner. The creator — session musician, producer, engineer — is paid a flat fee and retains no copyright, royalties, or ownership.
This is common for session musicians, jingle composers, and ghost producers. The trade-off is clear: guaranteed payment now versus potential royalties later.
Work-for-hire must be explicitly agreed upon in writing. Without a written agreement, copyright defaults to the creator. Always read contracts carefully and understand what rights you're giving up.