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When you pay someone to design you a logo or do some graphics for your site, do you sign any paperwork?

Scenario: you sponsor a competition on a design site for $100 to design you a logo for your new site.

5 years later your site is number 1 in it's niche, worth £10m and has a national advertising drive going on. (I wish!)

Could the original logo designer have any claims against you for the logo they designed and which you've built a brand on?

I know lots on here do bits of design for each other or use various sites but it all seems very laid back (pm me, send me £10 via paypal etc...). Do you get ensure contracts are drawn?
 
If you use 99designs or the like the creator passes copyright to you during transfer of the files so it's expressly transferred rather than left to chance. Copyright always remains with the creator unless expressly stated.
 
Cheers Scott. Looks like inflation has put the prices up a bit. Looks like competitions are around $500 +-
 
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