Who owns the software code my developer writes?

A common disaster for startups is discovering—just before a sale or investment—that they don’t own their core product.

The Default Rule

Under the Copyright Act 1968 (Cth):

• Employees: Employers generally own the copyright created by employees in the course of their duties.¹
• Contractors: Independent contractors own the copyright in works they create, even if you paid them to do it. You likely only have a “license” to use it.

The Solution: Assignment Deeds

You must have a Software Development Agreement or IP Assignment Deed signed by every contractor. It must explicitly state: “The Contractor assigns all present and future Intellectual Property rights in the Deliverables to the Client.”

What About Open Source?

Be careful. If your developer includes “Copyleft” (e.g., GPL) open-source libraries in your code, you might be legally forced to release your entire source code to the public.

Related Topics

• IP Protection
• Privacy Policies
• Technology Practice Area

Contract Review

Bell & Senior specializes in technology contracts. We ensure you own what you pay for.

Hiring devs? Contact us for a contract review. Call (07) 5532 8777.