Paying For Software Development? Make Sure You Own It!

In a digital society dominated by the saying, "there's an app for that," copyright protection is essential. Paying to have a work created does not automatically vest ownership of the copyright in the paying party. When making the decision to hire an individual to develop software either as an employee or independent contractor, companies must address ownership before work commences. In general, the individual who creates the work will own the copyright; however there is one exception: works made for hire. According to the U.S. Copyright Act, if a work is made for hire, then the employer or hiring party is considered the author and the owner of the copyright. However, to fall under this exception to the general rule of copyright law, the contracting parties must memorialize their understanding in a written agreement and such agreement must define the relationship between the contracting parties (e.g., employment or independent contractor) and the parties' IP ownership