Thinking Of Using A Contractor For Software Development? Define Any Division Of Intellectual Property In Writing

The U.S. Court of Appeals for the Ninth Circuit affirmed the district court's finding of an unlimited, non-exclusive and implied license to use, modify and retain the source code of programs developed by a contractor for a company, relying on the course of dealings between the parties. Asset Marketing Systems, Inc v. Kevin Gagnon, d/b/a/ Mister Computer, Case No. 07-55217 (9th. Cir., Sept. 9, 2008) (Smith, J.).

Asset Marketing Systems (AMS) is a field marketing organization offering sales and marketing support to insurance marketing entities. From May 1999 to September 2003, Kevin Gagnon was an at-will, independent contractor for AMS, hired to assist with its information technology needs.