if I (as a freelancer) do work for someone for free (without contract), do I retain ownership of the copyright for the work I created? Here’s my specific situation. I did a website for a family member for free out of “family service”. I took their logo and created a custom web design and code for the entire site! I then hosted the site on my server for 2 years. They became frustrated with me “personally” and asked to no longer be associated with me and asked for their “website files”. I told them that those are my files and that if they want them they need to pay for them. Am I legally protected by making such claims?

All of the code and images belong to you. The domain belongs to them, unless you registered it in your name. Usually, unless you sign a "work for hire" contract, even if you are paid, you retain copyright over the code and images, although the client is granted a license to use the materials. Seeing that they never paid you, I can't imagine that they would have any legal way to dispute your copyright. You should ask a lawyer, but I imagine that it is your property, except for the domain.

if there is no such written agreement, then the all work belongs to you. yes you are leaglly protected, or rather they can not harm you legally

That is one of those situations that if you went to court it could probably go either way, whoever had the best lawyer. I would be the better person and just give it over.

Sadly it has nothing to do with 'being the better person', and nor is it a situation 'which could go either way', with copyright law firmly on the side of the creator.

The client's ownership of any website or graphic image created on their behalf is not implicit in any transaction unless such details are specified, either orally or in writing. Even if monies are exchanged it would only be assumed that the creator had been paid for their work, not released of their right to reuse it should they so wish.

You are well within your rights to retain ownership of your work, kb241.

If there are your files, your coding, I think you can keep them until they pay you.
If you became in trouble with them, just send them back their logo, and keep everything else.
That also depend on your country policies

This is what I think for the situation.

No contract, never been paid, never owned .. except for the logo, it is your work and your property..

You guys have been great. Thanks for giving me your feedback on this issue. To give you an update...the company got scared because of there was nothing in writing originally. So they backed off their stance and offered to purchase the website files. Thank you guys for your feedback!

I can't imagine a kind of situation that the company would harass you. lol. They didn't even pay you!

I do have an open source software but I cannot imagine people harassing me because of it.