So you want to create a software product that serves as a core revenue stream for your business and you have no idea about software programming or the technical aspects to creating the product in question. You’re faced with 2 options;

a) Lookout for someone with the technical skills required to build the product and make him a co-founder in exchange for creation and ownership of the software or

b) Outsource the job

Now here’s the thing with option B; chances are that the programmer still has legal right of ownership and access to the source codes which are vital to how your product works. More so, He/She could make decisions with respect to the said codes which may not serve the interest of the company. For instance, He/She could decide to make the said code available to the public.

Too risky for business right?

How about negotiating for both development of the software and ownership of the said source codes with the developer/programmer whose services you’ve outsourced? This gives you and the company exclusive ownership rights to the entire aspects of the software in question.

And don’t forget to have your agreement in writing. This is very important. For emphasis on the consequence of not having a legal agreement drawn up before engaging the services of a developer, please read up what happened between MARK ZUCKERBERG and the WINKLEVOSS TWINS.

I’m sure you’ve gotten the drift? Now go the needful!

P.S; This article is for educational purposes and does not in any way constitute legal advice. Should you need legal service with respect to protecting the right to your source code, you may reach out to us HERE . We would be delighted to assist you.


Cynthia Tishion
Cynthia is a lawyer and currently serves as Head of Corporate / Commercial Services at LEX – PRAXIS. With her passion for business and entrepreneurship, she is actively engaged in creating awareness on the legal aspect of businesses through various platforms such as writing, public speaking engagements.

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