Who owns a translation memory: the agency or the client?

The short answer: it depends on the contract, and the client usually has to consent

Ownership of a translation memory (TM) is set mostly by the localization contract, not by a default rule that favors the agency or the client. Most TMs also hold client content, so a language service provider (LSP) should not license one to an AI buyer without written client consent.

A TM is a database of aligned source and target segments, usually stored in a CAT tool such as a TMX export. AI buyers may value paired, human-reviewed sentences from a specific industry, but that depends on the buyer and the data. The ownership question decides whether a localization company can ever offer that material for licensing.

This page is for partners who meet LSPs, localization teams and translation freelancers. It explains the usual contract positions so you can judge whether an introduction makes sense. This is general information, not legal, tax or financial advice. Confirm with your own counsel before acting.

What does copyright law say about translations and who owns them?

Copyright starts with the author unless a signed writing says otherwise. Under 17 U.S.C. section 201, copyright vests initially in the author, and for a work made for hire the employer or the person for whom the work was prepared is the author. Ownership can be transferred, but a transfer must be in a signed writing.

The definition in 17 U.S.C. section 101 matters here. A specially commissioned work counts as made for hire only if it falls into listed categories, and a translation is one of them, but only when the parties sign a written agreement saying so. The Copyright Office circular on works made for hire explains the two routes: employee work within the scope of employment, or a commissioned work in a listed category with a signed work-for-hire agreement.

Three points follow for TMs:

• A translated document and a TM are different things. The document is a creative work for one client. The TM is a database built from many segments and may be built from many documents.
• Whether a TM, as a compilation, is protected, and by whom, is a question for counsel. Do not assume either answer.
• Where the contract is silent, the outcome is uncertain, which is itself a reason for buyers to want clean written rights.

What do translation contracts usually say about the TM?

Contracts fall into a handful of patterns. The table shows the common ones and what each means for licensing. Positions are typical, not universal; read the actual paper.

Which TMs are likely to be licensable?

A TM is a candidate only when rights, content and reach all line up. Use the 3C screen: Contract, Content, Consent.

• Contract: does the master services agreement or statement of work assign or reserve the TM, and does it forbid secondary use?
• Content: is the material free of personal data, trade secrets and confidential client text, or can it be cleanly redacted?
• Consent: has each affected client agreed in writing, or can the company obtain that consent?
• Subcontractors: do freelancer and vendor agreements pass rights up to the LSP?
• Provenance: is the TM human-translated, rather than raw machine output, so it is a record of real work?

If the LSP fails Contract or Consent for most of its TMs, the practical route may be a narrow subset, such as the company's own marketing and internal documents, rather than client work.

How should a company handle client consent?

Consent is the gating step, and it runs through the company, not the partner. A sensible sequence:

1. The LSP sorts its TMs by client and reads the relevant clauses on ownership, confidentiality and secondary use.
2. It marks TMs with a clear own-content basis and sets aside the rest.
3. For client-owned TMs, it asks the client for written permission, naming the purpose and the exclusivity involved.
4. Counsel reviews the consents before any inventory is shared with a data buyer.
5. SourceX, which handles sourcing, rights review, delivery and payment, works only from what the company has confirmed it can license.

Nothing is binding until the company agrees price and terms and signs. De-identification and redaction requirements are agreed with the company before any work begins.

What to say when an LSP owner asks about their TM

Keep the conversation on rights, not on data.

A partner never asks for or sees TM files, glossaries or client documents. The company fit checker gives the company a preliminary, non-binding screen with no contact details required.

How does this compare with other professional-services records?

Ownership questions recur across firms that make work product for clients. The same logic of contract first, client consent second appears in who owns the code a software agency writes, who owns architectural drawings, whether a penetration testing firm can license its reports and who owns property management records. If you work with several service firms in a buy-and-build, the buy-and-build sectors guide shows where licensing fits across add-ons.

How rewards work for a partner

Partners earn 25% of the eligible platform fees SourceX actually collects from the referred company's licensing deals, capped at $100,000 cumulative per referred company. Rewards become payable only after the buyer pays and SourceX receives its fee; an introduction, meeting or signed agreement alone does not trigger payment, and no reward is guaranteed. The reward is a share of SourceX's fee and is never deducted from what the company receives. Licensed professionals should check their own rules on referral fees and disclosure, and the program terms set the details.

When not to make the introduction

• The company is under the baseline of 50+ full-time employees at peak (contractors excluded).
• Its TMs belong to clients who have not agreed, or the contracts forbid secondary use.
• The TMs are mostly raw machine output, or contain consumer personal data or protected health information with no licensing basis.
• The owner will not consider an exclusive license for an agreed term.
• Nobody can export the files from the CAT or translation management system.

Next step

If a localization company you know has years of human-translated work and clear rights, register as a partner and introduce the owner, or have the company apply directly at sourcex.si/apply. The who qualifies page lists the full baseline.