Never happy is a bit of an exaggeration. SYSV UNIX had all of these risks
and various legal departments went through them as they do regularly for more typical types of research.
That’s the “firming up” bit. You have a contract that deems the code “work for hire” even though the money flow is wonky. Legally the guy is like any 1099.
Who even owns the code the person is working on? Who is responsible when it goes wrong?