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Copyright in custom code: Who owns commissioned software?
Authors:McIntyre  T J
Abstract:Legal context: When software is commissioned, it is important that the partiesagree what rights are being acquired and what rights retained.Copyright is the most important such right, but moral rightsand database rights must also be considered. When there is noexplicit agreement on these rights, the courts are often facedwith claims that there is an implied term that they should vestin the client (or be waived in the case of moral rights). Thisarticle examines the issues that arise in such cases. Key points: The article outlines the development of case law dealing withimplied terms as to ownership of commissioned works. It explainshow the courts have applied older principles to the new areaof commissioned software, and how those principles have evolvedto make it more difficult for a client to establish an impliedterm in their favour. The article examines in particular issuesarising from code reuse, the disclosure of source code, andthe application of database rights and moral rights to software.It also considers case law where clients have claimed to bejoint authors of software by virtue of their involvement inits design and testing. Practical significance: There are an increasing number of cases where software is commissionedon an informal basis and disputes later arise as to the ownershipof that software. This article provides a framework for consideringsuch disputes.
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