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Source Code Ownership


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Posted by Terry Stroud on November 10, 2002 at 09:11:55:

I have a question about the Intellectual Property rights for software I developed. Here is the situation...

I have a client who approached me about writing some software to control some commercially available video hardware. I wrote a quote that had the cost of equipment and an estimate for my time (hourly rate). I thought it was understood that I lowballed the quote for my time because this project would give me the opportunity to develop and application that I could later resale to others. Other than the quote, there was and is no other contract or written agreement. Now that I have received strong interest in the product from others, the client now wants to claim ownership of source code.

Here are some facts of this case…

·I have my own business. The client in question pays my invoices as a 1099 vendor. Invoices are sent out per project.
·The client is not in a business that is remotely close to the business of selling software/hardware packages.
·I have not billed or been paid for the project in question yet.
·The client paid for the hardware (but not yet the modifications made to it) and a software module required to make the hardware useable.
·About 50% of the work was done at client site because the client owns equipment that the box must interface to.
·In order to make a commercially viable product, much more work must be done to the software and hardware. About 90 to 100% additional code must be added to create the final product. The final version would have features that would NEVER be required by the original client.
·The code is based upon a code standard I developed independently and have used for 6 years on my own. I consider this code standard a trade secret.
·The license for the development environment used belongs to me.



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