Custom software offers a slew of benefits but most notably for organizations looking to achieve big goals with big data. But how do you know if you actually own the software you’re paying to build? Several concerns have arisen for small and large businesses who are branching out into custom software territory. Who owns the source code? Are you getting true access to your software and owning it outright when it’s complete?
Source code licensing should be a prime concern if you need custom software. What happens when you pay for something but don’t own it? The project itself can be derailed, and your business may suffer because of the shady practices of a software developer.
In this article, we’ll explain what questions you should be asking software developers before signing a contract. Ownership is near and dear to our hearts. We care about our customers and their rights to their own software. You should, too.
If you hire a freelancer or software developer for your business, that code typically belongs to the developer. Freelancers and solo developers don’t have to answer to corporate requirements as far as ownership goes, but they often like to retain the rights to the source code as a sort of “signature” that the work is theirs.
If the developer(s) is working for a company, the business will usually own the source code. Source code falls under the category of intellectual property, because the developer or company has created something ‘from the mind’. You might have commissioned them to build your software for you, but they own the intellectual property.. There are certain caveats, such as open source code, but we’ll get there later in the article.
By drafting something called a“ Software Development Agreement”. This agreement’s purpose is to spell out the terms of the development process and the final product—including the rights to the intellectual property (source code).
Another factor that comes into play is open-source code. This is code that is created for use in the public domain. According to Medium:
“In general, open-source refers to any program whose source code is made available for use or modification as users or other developers see fit. Open-source software is usually developed as a public collaboration and made freely available.”
Developers will often utilize open-source code as a foundation to build on for custom software.
How Does This Affect Ownership?
This begs the question of whether or not open-source code in your development project affects your rights to the end product. There’s always the potential that you and/or your developer will need to obtain specific rights to use open-source code, but if you obtain the right permissions you can use open-source code in your product. It’s always a good idea to get legal advice if you’re unsure moving forward.
License of Copyright: A license of copyright can give the new owner of the software either exclusive rights to the software or non-exclusive rights, depending on the terms of the agreement. When you have exclusive rights to your software, only your company or organization can use it.
Assignment Of Copyright: This is the process of transferring copyrights from one entity to another. In the case of software development, it will be your development firm or freelancer transferring either exclusive or non-exclusive copyrights over to you.
When you draft a custom software licensing agreement with a developer, you want to be certain that you’re keeping your rights in mind by gaining ownership of the software you paid for. These details are usually worked out before the project begins. For a good relationship between developer and client, the agreement should be as detailed as possible and be understood by both parties.
Here what should always be covered in a licensing agreement.
A thorough software licensing agreement can save you legal trouble and confusion down the road. Remember, it’s always better to own your software outright.
During the negotiation phase of your project, all of the terms of the licensing agreement, including final ownership of the custom code and finished software, should be spelled out. The quicker you handle this portion of your process, the quicker the firm can get to work. It helps protect your interests and keep your developer bound to the terms of the contract. If you don’t understand the contract or need further assistance, don’t be afraid to seek legal counsel.
When you work with a company like RevStar, you don’t have to worry about endless red tape, excuses, and legal jargon. You own your software outright, because we work for you. Your custom-built software is designed to your specifications and then yours to own forever.