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Copyright: Who Owns the Code?
Rob Taylor, Owner, TConsult, Inc. www.enginesforwebsites.com
Friday, January 04, 2008
Website copyright is often misunderstood not only by clients but by developers as well. Naturally one would assume that if they paid for something then they must own it. Sometimes they do and sometimes they do not. Often, development is done without contracts that cover copyright. Worse, clients and even developers are not aware of copyright law. This can lead to an ugly situation should the relationship go awry. Who owns the code and what can and cannot be done with it should the client desire or need another developer?

It is always nice to think you can do business with a smile and a handshake but sometimes the smile becomes a frown and the hand becomes a fist. Then the client wants to find another developer and copyright ownership becomes a thorn. Worse, copyright ownership last for a person's lifetime plus seventy years so a person can enforce their copyright at any time whether they were aware of their rights or not at the time.

We hope to take some of the mystery out of copyright and convince both developers and clients why it should be covered up front in a contract before development begins. If you are not aware of copyright law as it pertains to computer programs then we are glad you found us. You may learn some very important things and also realize that you have copyright issues right now that you were not aware of.

The Really Simple Basic Law
Copyright law differs for works created by employees as opposed to works created by independent contractors. By default, the person who created the work is the owner of the work unless that person is an employee. If you are an employer and you employ developers, meaning you give them a place to work and building the software is inside of their job description, then the employer owns the code. However, the law is different for contractors. If you have hired a contractor to write software for you then the contractor will be the owner of the code even if you thought of the idea and engineered it.

Lets say you come up with a killer idea for a Website. You hire a contractor to build the software for you. No one else has it and it is a brand new idea. You put hours in to planning it and you spend a fortune having it built. What do you have? By default, a license to use the software and nothing more. You do not own the code. Despite the fact it was your idea, it makes no difference. The person who actually created the work, the developer, owns the code.

That can be a little hard to swallow for some and we will dive in to why that is and solutions for getting around copyright snags when working with independent contractors.

Copyright is Prima Facie
Copyright law is Prima Facie law. This basically means black and white. Who owns the code? It should be black and white as to who owns the code and it usually is. However, who owns the code in conjunction with what can or cannot be done with the code is often not black and white because both developers and clients do not know their rights and do not take proper measures up-front to determine what happens with the code if X, Y, or Z happens at a later date. So copyright is, in fact, prima facie since determining the owner of the code should be very easy. But ownership, use, and what might or might not constitute infringement is not so prima facie.

Diving In
Before we begin, let us make it clear what the copyright section on OutsideTheCode.com pertains to:
  1. We are not attorneys. Situations may vary and it is always best to seek legal advice to get a legal professional's opinion on your current situation. We do not recommend in any manner that you take action based on what you read here. As always, seek legal advice first.
  2. We are speaking of copyright for custom Websites that are brand new ideas that are commissioned to be built.
  3. We are talking about Website development done by independent contractors and not employees.
  4. Copyright law underwent many changes on March 1, 1989. Since the Internet did not exist then we are talking about copyright law after that date. Older works are much different. Visit the United States Copyright Office for more information about works prior to March 1, 1989.
Now, lets start to dive in to copyright for Websites as it pertains to Websites and independent contractors.
  1. The Copyright Process - How To and Misconceptions
  2. Why Does the Developer Own the Code?
  3. The Importance of Contracts
  4. Ownership vs. The License Agreement
  5. What Constitutes Infringement and What are the Penalties?
  6. Does the Copyright Symbol © Mean Anything?
  7. Questions - What Happens If?
  8. Copyright and Contract - Summing It All Up



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