For the custom-made software, a customer would like to be a designer to their demands. To keep away from being available to competition, these customers make it a condition to own the sources. They do these since the business is critical and they can keep that software going. Should it happen that the customer wants to quit for any good or bad reason, for instance in cases of death, then they are at liberty to look for another SW company to continue with the maintenance and development of the software.
When handling source codes, it is important to keep in mind the following.
It is perfectly reasonable for you to either refuse to sign a contract that requires source code delivery or to claim on payments for source code delivery. A contract is a two-way document. Do not allow the other part to dictate what is required just because they feel like they are the "giant companies" and have a tendency of "doing this all the time". First, decide what you are willing to deliver and how the compensation will be done. Afterward, take their contract to an attorney and work out what needs to change. Later, begin the negotiations.
When you wish to work with the source codes and contracting is required, do not just sign it because according to you, the company is more experienced and you are just starting up. This could lead you to some terms and conditions that only favor the company at your expense. Otherwise, that is a perfect way to be ripped off.
Some clients may need it so that they have the option of using another developer in their next transactions later. Others may want it just because they are full of negativity and are afraid that you might be involved in an accident, leaving them with binaries that they cannot improve afterward. In this second case, check a Software Code Escrow Service. These services contain d the source code in case you go bankrupt or you are unable to maintain the software. This will satisfy both of you. Your desire to keep your code proprietary to service other customers, and their desire not to be left with a set of binaries that can not be maintained if anything bad happens.
For the software developers and all digital agencies, the source codes are the stock in trade. It is simply what you do for a living and what you are paid for. The ownership of copyright governs developers, who can recycle their projects on later projects without necessarily having to develop any code which does the same thing. The entire libraries delivered as part of a solution may end up being owned by the customer.
Olivia Herbert and Leigh Ellis of Drukker Solicitors observe that when and how ownership of source code is decided and the relevant events which lead to deciding who retains it. A Software is a literary work for the intents of copyright law. It generates graphic works and other artistic works. In most cases, legal rights can protect a software, but even with the regularity of patented software nowadays, it is an exception instead of the rule in other industries.
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