Who Owns the Intellectual Property of My App?

In Short

• App developers typically own the copyright to the app’s code unless specified otherwise.
• To ensure full ownership of your app, include a Development Agreement or IP Assignment Agreement with your developer.
• App users do not own the software they download; they only have usage rights outlined in an End User Licence Agreement (EULA).

Tips for Businesses
When hiring a developer to build your app, make sure to clarify ownership rights upfront. If you want full control over the app’s intellectual property, include a clear IP transfer clause in your contract. This will prevent any future legal issues regarding the use or modification of your app.

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Table of Contents

• User’s Rights
• App Developers
• Key Takeaways
• Frequently Asked Questions

When you create an app, determining intellectual property ownership can be challenging. Copyright automatically protects original ideas expressed in material form, benefiting the author or creator without formal registration. However, if you hire a developer, they may be considered the app’s creator. This article explores how to protect your app idea and establish copyright ownership.

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User’s Rights

App users do not own the software they download. Developers typically use an End User Licence Agreement (EULA) to grant usage rights under specific terms, such as prohibiting app modifications. While Apple and Google’s app stores previously enforced standard EULAs, they now allow developers to use custom agreements for better software protection.

App Developers

By default, app developers own the copyright to the app’s coding, as they constructed and wrote the code. To ensure lawful use, you must take appropriate steps based on your intended app usage. When engaging a developer for customised software, like a construction business data management app, clearly define the rights you will receive upon completion. Specifically, determine and agree from the outset whether you will have full ownership or just a licence to use the software.

Ownership vs. Licensing 

Full ownership transfers all intellectual property generated during app development to you upon completion. This is typically outlined in a Development Agreement’s intellectual property clause or a separate IP Assignment Agreement. Full ownership allows unrestricted use, including rebuilding or modifying the app without notifying the original developer.

A licence agreement, however, may not protect your ideas for software modifications. Remember, copyright only covers the material expression of an idea, not the idea itself. When developers transform your concept into live code, they retain ownership unless agreed otherwise.

Key Takeaways

Even if you come up with the idea for your app, you may not have copyright over the final product if you do not take the right precautions. If you hire a developer to create the coding for your app, they will likely own the copyright. As such, when engaging a developer to build an app for you, you and your developer need to have a development agreement that will transfer the intellectual property to you when the app is complete. 

If you have any questions or need to develop a Development Agreement or IP Assignment Agreement, our experienced IP lawyers can assist as part of our LegalVision membership. You will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. Call us today on 1300 544 755 or visit our membership page. 

Frequently Asked Questions