So who owns the code?
If you are to be contracted to write code for another company or entity there are a few things you need to consider. Basically, the Author (person who wrote the code) owns the copyright the moment he/she actually writes the program. This ownership changes under three conditions
1. When the author is an employee
2. When the author “assigns” the copyright over to the client
3. When the work is defined as a “Work made for hire”
1. If you are an employee then the scope of employment comes into the picture. A lot of facts need to be looked at as to what role was the author employed to do and whether the work performed lies within that scope or was done otherwise. Needless to say, the employer is the owner in this case and there is very little that the author can do if a case is to be filed over ownership of the code.
2. Assignment is basically legalese for giving away copyright to the client. Under the Indian Copyright Act., the time period if not mentioned is set to five years after which the copyright becomes that of the author. Also, the copyright is transferred only in India if the territorial extent is not mentioned so the author can still re-sell or license the code outside India while the agreement is in effect.
3. If the work is defined as Work Made for Hire then the company that hired becomes the owner of the copyright of the code. If the code is derivative of some other project the hiree authored previously then that original software can be used by the hiree to create a similar software which the hirer would have no rights over unless a software patent regarding the current expression of the work was filed. Also, if the hirer has paid the hiree in full then and only then does the hirer own the copyright. If the work was not completed nor was the payment transferred the ownership is retained by the author.
An agreement is a must!
Whatever be the case, with all the amount of legal surfing we’ve done, the outcome of any legal battle comes down to the interpretation of the clauses present in the agreement signed between both parties. Moreover, the issue becomes much more complicated if the two parties are from two different countries.
Before writing even a single line of code, sign an agreement
If you hire a consultant through an online platform then they come into the picture as well and often help in the resolution of the conflict before it can go to court but nevertheless, do not underestimate the importance of a well written agreement over the assignment of copyright.
Here are a few references to help you out: Who owns software created by contractors?
http://dgit.in/1veupM2
Beware copyright pitfalls!
http://dgit.in/1veuwr8
If you don’t know who owns your code, it is probably not you
http://dgit.in/1vEDjzZ
A brief guide to software ownership for coders
http://dgit.in/YU8FrB
