Forums: Discussions for entrepreneurs and small business.

I think this pretty much sums it up as I understand the concept.  Pulled from here.

Having been in IT industry for several years, we have always written code at different clients and once the code is deployed into their production boxes, it is compltely owned by the client.  Legally we are not allowed to even make a copy of the code and take it home.  Well, developers usually have a copy and that is a different story.  I think it is completely fair to own the product you get custom developed. 

cheers

P

It`s not really about what`s fair, it`s about what you and your developer have agreed on...hopefully in a contract.

Legally, hiring a contractor to write a piece of software does not give you any kind of exclusive rights.

If you want to own the rights, that`s fine. Just expect to pay more. And be clear about what you want. Exclusive right to use? to resell?

Also, you have to be realistic about which rights you can own. Any developer who does contract work will have his standard tool set of libraries and frameworks that he uses over and over. You can`t buy exclusive rights to these, because the developer doesn`t own them.


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Check out my blog: Upstarter.net: the simple habits of successful entrepreneurs

And my startup: ChatSpring Live Chat Software for Sales and Customer Service

As a software contractor, I have to agree with Easterner here. Generally,
when you write software for someone on a contract basis, they get the
rights to the software. That is stated in the contract. That doesn`t stop them
from using snippets (fair use) or recreating it from scratch, unless it is
patented.

Oftentimes there is a no compete clause in the contracts as well that will
limit the contractor`s ability to recreate the same feature for a competitor
for a period of time, never indefinitely.

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John Ahrens, President
John Ahrens, LLC

This definitely depends on the contract you have with the programmer.  If this is what you want write the contract up for that.  However the programmer knows that this will be a very valuable script will probably be likely to charge you alot more.  For example if I create an add on for a blogging software and start selling it to different bloggers I can sell it for cheap and make money off of continuing sales so there is opportunity for me to make alot.  However if I am making a custom script for one and only one person the potential for income is limited and I will increase my asking price.

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My Business - Creadiv Design
What`s My IP - The Ip House

In my previous life a a programmer and consult.  I was programs for the clients who never saw a program before.  Thata being said the program was theirs.  It was in the contract that the rights of the program were to my client not to me.  Make sure you have a contract that spells out what role the constant has and does not have.