Legal Question in Business Law in Pennsylvania
Patents and Copywrite Law
My company is having a new computer system developed that is specific to the needs of our business. The company developing the software suggested that we patent the software. My concern is that they want to join with us to market the product to other similar businesses in the country.
My question is: can the developers sell or market this software without the consent of the officers of my company, (I beleive we are the owners of the software) and, if any, what would be the ramifications of doing this?
2 Answers from Attorneys
Re: Patents and Copywrite Law
Dear Sir,
You need to be extremely careful about how the development agreement is drafted with the 3rd party software developer. More specifically, you must be sure there is a 'work for hire' clause (pursuant to the US Copyright Act) in the agreement that states that all 'work for hire' is the exclusive property of your company. Something to the effect of "DEVELOPER SPECIFICALLY ACKNOWLEDGES THAT ALL SUCH WORK MADE FOR HIRE SHALL BE THE SOLE AND EXCLUSIVE PROPERTY OF COMPANY. In the event that for any reason the Works are not subject to the "works made for hire" provisions of the U.S. Copyright Act, then Developer agrees to assign, and does hereby assign, to Company all of Developer's rights, title and interest in and to the Works..."
I have extensive experience with these types of agreements having worked for many years at a custom software development firm handling all business and legal affairs.
Please feel free to contact me with any questions. I am more than happy to answer any questions for you.
Regards,
Joseph C. Guagliardo, Esq.
215.704.1767 (phone)
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Re: Patents and Copywrite Law
You are the owners of the software if you have a written agreement to that effect. If you patent the software you will be the sole owner and the software company can not sell the software without your company's permission. I suggest that might want to clarify the arrangement with your developer in writing to avoid future problems. Gerald Hershenson Esq. 215-579-9390
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