Expert knowledge for digital decisions
Who Owns the Source Code After the Project?
Short answer
The Three Common Models
Full Rights Transfer
You receive exclusive usage rights to the created code and can have it further developed by anyone you choose. This is the strongest position and usually the most expensive, as the service provider cannot reuse anything.
Simple Usage Right
You may use the software, but cannot distribute it or have it further developed by third parties. This is cheaper but ties you to one provider.
Mixed Form (most common in practice)
Everything that represents your business logic goes to you. General components that the service provider uses in every project remain with them – you receive a permanent usage right to them.
What You Should Pay Attention To
- Third-Party Libraries. No service provider can transfer rights to open-source components that they only use under license. Request a list of the licenses used.
- Access Instead of Promises. Access to a repository from day one is worth more than a handover clause at the end of the project.
- Operational Knowledge. The code alone is of little use without documentation of the environment, dependencies, and access data.
At Ouhud
What You Should Demand Regardless of the Model
- Read access to the repository from the start of the project
- A list of the open-source components used with their licenses
- Operational documentation as a deliverable
- Access data for domain and hosting registered to your company
These four points are more powerful than any wording in the contract: they ensure that a change remains practically possible.
Key facts
- Decisive
- Written regulation in the contract, not verbal
- Often Overlooked
- Licenses of open-source components