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UK copyright laws: Agree ownership from the outset to avoid future disputes

David Ashplant - 02 September 2009
Make sure you own what you have paid for, advises UK lawyer


Businessmen and women make the very rational assumption that what they pay for, and often a great deal of money for, they will own.  Unfortunately copyright law does not follow this logical view whether it be for websites, logos, brochures or software.

“If you get an external source rather than an employee to design your website, logo, produce your brochure, take photos for you, or maybe write software for you, they will be copyright works.  The copyright will belong to the designer or developer not you, unless you agree otherwise in writing.  This important point is often overlooked and as you would expect your designer's small print is unlikely to deal with the point,” advises David Ashplant, Partner in the Corporate Team at Lester Aldridge LLP.

The matter can raise problems later if not properly dealt at the time; for example, when you want to sell your business or authorise someone else to use your "property" or get someone else to develop or change what you already have.  The original designer can stop you unless you have his agreement which will normally come at a price.  The courts will imply that you have a licence to use what you have paid for but probably not one to change the work done or allow someone else to do so.

You therefore need to get ownership transferred to you at the time you are talking to the designer when you have the negotiating leverage to make him do so.

Where any software is involved also make sure you get the source code or at least see that it is put into escrow, this is the deposit of the source code of software with a neutral third party. The software source code is released to the licensee if the licensor files for bankruptcy or otherwise fails to maintain and update the software as promised in the software license agreement.  Without access to the source code it will be difficult for someone else to maintain the software or enhance it for you."

For further information, on this release, please contact, Rebecca Ashling-Yates, Lester Aldridge LLP

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