Question Clearly sourced

Expert knowledge for digital decisions

Who owns the source code after the project?

Short answer

This is a matter for negotiation and should be included in the contract – not in a verbal promise. Three common models exist: full transfer of rights, a simple usage right, or a mixed model where your proprietary code belongs to you and reusable components remain with the service provider.

The Three Common Models

Full Transfer of Rights

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 typically also the most expensive, because the service provider may not reuse anything.

Simple Usage Right

You may use the software but may not transfer it or allow third parties to further develop it. More affordable, but binds you to a provider.

Mixed Model (most common in practice)

Everything that reflects your business logic goes to you. General components that the service provider inherently uses in every project remain with them – you receive a permanent usage right to them.

What to Pay Attention To

  • Third-party libraries. No service provider can transfer you rights to open-source components that they themselves only license. Request a list of the licenses used.
  • Access over promises. Repository access from day one is more valuable than a handover clause at project completion.
  • Operational knowledge. The code alone is of little use without documentation of the environment, dependencies, and access data.

At Ouhud

What You Should Request Regardless of the Model

  • Read access to the repository from the start of the project
  • A list of used open-source components with their licenses
  • Operational documentation as a deliverable
  • Access data for domain and hosting registered under your company

These four points are more effective than any wording in the contract: they ensure that a change remains practically possible.

Key facts

Critical
Written agreement in the contract, not verbal
Often Overlooked
Licenses of open-source components

Sources

All external claims are backed by traceable sources.
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