Legal Question in Technology Law in Illinois

Under Section 101 of the U.S. Copyright Act, "a work prepared by an employee within the scope of his or her employment," is defined as a Work Made For Hire. If a work is "made for hire," the employer, and not the employee, is considered the author. Examples of works for hire created in an employment relationship include the following a software program created within the scope of his or her duties by a staff programmer or webmaster. For more information, see http://www.copyright.gov/circs/circ09.pdf

It is a little more complex than simply "its a work for hire", and that does not help you know how to solve this dilemma for your prospective clients. The clients may actually own the files, depending on their agreements with the web design company. If the clients own them, they could authorize your use of them. At any rate, the clients should demand, from the company going out of business, the permission to freely reproduce the files to mitigate the damage from the company closing, and the company presumably has no need for them if they are going out of business. There are additional options with which a copyright attorney could help. While the prior advice is certainly correct as between you and your former employer, that should not be the end of the matter. Get the right attorney and they will solve this for you.