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ARTICLE · 14 SEPTEMBER 2021

What Software Developers (And Their Clients) Should Know Before Signing A Software Development Agreement

Ensure that both developers and clients understand the crucial aspects of intellectual property rights allocation in software agreements to prevent disputes and protect business interests.

CanadaIntellectual Property

Navigating Intellectual Property in Software Development Agreements: Avoid Costly Mistakes with the Right Legal Framework

Ensure that both developers and clients understand the crucial aspects of intellectual property rights allocation in software agreements to prevent disputes and protect business interests.

When a software developer is retained by a client to develop new software, careful attention should be given to the allocation of intellectual property rights in the soon to be created software. Generally speaking, there are two ways that the intellectual property rights in the software can be dealt with. The first option is to license the intellectual property rights to the client and the second option is to assign (i.e. transfer ownership of) the intellectual property rights to the client. In practice, however, a properly drafted software development agreement within the context of business law will likely contain a combination of these two options. A

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