Employee Brand Ambassador Programs: Intellectual Property and Advertising Risks

Alert

Employee ambassador programs can be powerful marketing tools, helping companies extend their reach through social media engagement. However, when employees become brand advocates, employers must address intellectual property ownership, advertising compliance, employment law considerations, and publicity rights before launching a campaign.

Many employers are leveraging social media for brand promotion and are asking their employees to post about their products and services on platforms like TikTok, Instagram, and YouTube. This strategy can be an effective way to raise brand awareness, but it invokes important questions:

  • Who owns the content?
  • Who has control over the employee’s name and image?
  • Who is responsible when something goes wrong?

Without clear agreements and policies before a social media campaign launch, an employer may find it owns less than it thought and is liable for more than it expected.

To manage that risk, employers should address these issues well before the employee hits “post.”

Employers may not automatically own employee-created content.

Content created within the scope of an employee’s job duties may belong to the company, but a video filmed on the employee’s own time and posted to a personal account may belong to the employee instead. Identifying content ownership in a written policy or assignment agreement helps protect the company’s interests.

Employee-generated content may create wage and hour exposure.

Creating social media content may qualify as part of the employee’s job activities. If you are filming content outside of work, but the company is directly involved, the employee may be entitled to assert a claim for unpaid wages. Employers should carefully evaluate their employment law obligations when implementing ambassador programs.

Plan for the employee’s departure.

If an employee-turned-influencer leaves the company, who retains ownership of the posts, accounts, and content featuring company products and trademarks and followers? What happens if a former employee objects to the continued use of videos recorded during their employment? Defining content licenses, account ownership, and takedown obligations early on in the employment relationship can help avoid future disputes. It can also be beneficial to designate whether content must be posted through company-managed social media accounts rather than personal accounts and what approval channels are necessary.

Rights to an employee's face and voice are separate.

Even when a company owns the content itself, state right of publicity laws may govern the use of an employee's name, image, voice, and likeness. As noted in a previous What’s the Tea in L&E? episode, employers should obtain appropriate releases that address advertising use and specify whether those rights survive the employee’s departure.

The use of certain music or other third-party content can create infringement risk.

Trending audio tracks can help drive engagement, but many are licensed only for personal use, not commercial promotion. An employee’s use of unlicensed music in branded content may result in copyright claims, content restrictions, or liability for the company. Consider providing approved audio sources for promotional content and guidelines around what third-party content an employee may incorporate into their posts.

Always disclose advertising relationships.

When employees promote products or services, the content should clearly disclose the relationship with the company. Failure to disclose advertising connections may lead to false advertising claims, regulatory scrutiny, or consumer class actions. The more control the employer exercises over content, the more responsibility it may bear for ensuring proper disclosures.

Agree on descriptive content in advance.

Establish expectations regarding descriptions, acknowledgments, disclosures, and other language before the content is created. For example, if employees receive free products for content creation purposes, the company may provide and require language such as: “Thanks to @Company for providing this product for use in making this video.”

Be wary of secondary or personal social media content.

 Employers should be aware of the full scope of social media content of the employees participating in branding campaigns. While employers generally cannot require employees  to provide social media login credentials, reviewing publicly available content is an important risk management step before launching joint promotions. The last thing any employer wants is to see that an employee who is approved to post company-related content on their personal page also has posts that are inconsistent with the employer’s mission.

Should your company use employee ambassadors on social media?

An employee ambassador program can be an effective marketing and retention tool, but it works best when the framework is established before the first post is published. A social media policy, content assignment and licensing provisions, likeness releases, brand-use guidelines, and a disclosure review process can help reduce risk and avoid disputes. These guardrails are easier to implement from the start than after an employee departs or liability concerns arise.

If you have questions about structuring an employee brand ambassador program or would like assistance with reviewing your social media, intellectual property, advertising, or content creation policies, please contact a member of the Woods Rogers Intellectual Property team.

Learn more about this topic on a recent What’s the Tea in L&E? episode with Leah Stiegler and Tim Bechen.

Frequently Asked Questions

Q: Does an employer automatically own content created by an employee?
A: Not always. Ownership often depends on whether the content was created within the employee’s job duties and whether written assignment provisions are in place.

Q: Must employees disclose their relationship with the company when promoting products online?
A: Generally, yes. Clear disclosure helps reduce the risk of advertising-related claims and compliance issues.

Q: Can a company continue using employee-created promotional content after the employee leaves?
A: It depends on the agreements governing content ownership, licenses, and publicity rights. Clear contractual provisions can help avoid disputes.

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