Legal Question in Technology Law in California

Re: Who has Title to Intangible Property?

I don't think the fact that the source of the funds was the state government or that the entity for which the software was developed is a non-profit is especially relevant. The general rule is that if X pays Y to make something for Z, the thing made doesn't belong to Y, it belongs either to X or Z, and to which of them it belongs depends upon their contract or, absent a contract, their intent at the time the money was advanced or promised. If this were asked as a copyright question, which it could be, I would raise the copyright-law principle of "work for hire" which produces the same result.

By the way, most State of California contracts are quite detailed and very well may have a provision stating whether intellectual property created under the contract belongs to the state or the recipient of the state funds. The same would be true of a state grant, which would have contract-like provisions.

The independent contractor-developer's contract with the nonprofit (or with the state?) might contain an express provision calling for a different result, but if the development contract is in conflict with a provision of the funding contract, the parties could be headed for litigation.

Re: Who has Title to Intangible Property?

Much depends on the content of the contract between the contractor and the client. Impossible to say without more facts.

Re: Who has Title to Intangible Property?

I agree with Mr. Whipple. The first thing to do is look to the contracts.