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ARTICLE · 06 APRIL 2019

Software development: I paid for it, is it mine?

When development of software is subcontracted out, you have a legal right to use the software, but you will not own it.

AustraliaIntellectual Property

Ownership of computer software and applications: the difficulties under the Copyright Act.

If you or your business have contracted a third-party to either create or develop a piece of software for you, it may come as a surprise to know that you may not actually own that source coding - even if the work was undertaken based on your ideas, under your instruction and you paid for it!

This could be quite a scary proposition, and a wake up call for many business owners.

Under the Copyright Act 1968 (Cth), the expression of an idea, rather than the idea itself, is afforded automatic protection (unlike other forms of intellectual property). It therefore stands to reason that as the 'author' of the source code, the contractor that you engaged to write the code would be seen as the legal owner of the code - even if the inspiration for its development (and the funds put towards its production) came from you.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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