Legal Question in Intellectual Property in New Jersey

software ownership

Hello,

My question is about some web-based code I developed while working at a company.

I developed this code for this company's client. Then, I got laid off. The company I worked for, or their client, never asked me to turn over the code or preserve it in any way.

After getting laid off, I re-wrote the code in order to stay sharp and prepare myself for job interview, etc.

Shortly after, I was approached by a new company who had inherited the account from the original company. They wanted me to make some improvements on the code, which I did.

Now, this new company wants me to hand over my re-written, improved upon code to them. There has never been any agreement between me and the new company that I would do so. And there's no agreement between the new company and the client that I know of.

So, my question is do I have any right to ask to be compensated for my code. I don't want to just hand it over. If I hadn't re-written it, it wouldn't even exist.

Thanks for your help.


Asked on 11/19/02, 11:18 am

3 Answers from Attorneys

Irving M. Weiner Weiner & Burt, P.C.

Re: software ownership

You have the right to ask to be compensated for your work.

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Answered on 11/19/02, 11:55 am
Ken Feldman Feldman Law Group

Re: software ownership

You can ask for anything. If they agree to pay you, great. But the real question behind what you asked is , what if they don't want to pay and they want thier code back?

Does the version you took exist unchanged? That's a Key question as far as the result goes. You own your work if it can be separated from what you took. You decide whether to let them have that. But, thier original code is thiers, and they are entitled to it. Moreover, in changing it you made an unauthorized deriviative work that you can't use commercialy without thier approval (and they can't use without your approval!). The only rub is that they have to be able to get back thier code as it was before you changed it. Can they? If they can then you can withold your work unless they pay you.

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Answered on 11/19/02, 1:21 pm
Bruce Burdick Burdick Law Firm

Re: software ownership

While you can ask to be compensated, and naturally that ends the issue if this new company agrees, the fact that you are asking suggests it is not going to be that simple.

You have some potential risk that the prior 2 responders did not identify. If you kept code written for a client of the original company, you have risk of being found to have misappropriated trade secrets. That would depend on the specifics and you will need a trade secret lawyer if you want reliable authoritative advice on your legal exposure as regards to the original code.

If you wrote the code as an employee, and your statements indicate you did, then you are not the author but rather the company is the author, in accordance with work for hire provisions of the copyright act. The company and its successor likely have the right to return of their original code.

One of the 2 prior responders is thus accurate in saying that if you can separate your modified code from the original code, you can probably keep your modified code and demand compensation for it. However, delivery by you of that modified code to anyone other than the copyright owner (probably new company) of the original code would likely pose legal risk for copyright infringement by sale of an unauthorized derivative work. The registration status of the original code may be of significance as regards liability.

You say the new company asked you to improve the code. The facts of that request probably will determine your rights and what you can legitimately ask for. Again, you should spend pay a good trade secret lawyer some money to advise you based on the specifics of your situation as to what was authorized, requested, and expected in your dealings with the new company.

At any rate, the legal situation may be uncertain for the new company as well as for you, so you will likely be in a position to get some compensation. So, consult a trade secret lawyer (patent and/or copyright lawyer)spend the money for good legal advice, and thus proceed with much more confidence in your approach.

If you need referral to a NJ intellectual property law attorney versed in copyright and trade secret laws, let me know.

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Answered on 11/20/02, 12:11 am


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