Intellectual property protection is crucial in the programming world. To safeguard your created code and software from unauthorized use, it’s essential to follow several important rules and practical tips. Below, we share some practical advice and suggestions on what should be included in contracts to ensure maximum protection for your intellectual property.
Practical tips and contract recommendations:
👉 Payment Terms: It is recommended to specify that the intellectual property rights to the created code and software will be transferred to the client only after full payment for the services.
👉 Usage Rights: It is important to clearly define what usage rights the client will acquire upon completion of the project. For example, whether the client will be able to modify the code or whether it will be used for internal purposes only. Define in the contract the usage rights the client will obtain after project completion and settlement.
👉 Confidentiality Clauses: Include confidentiality provisions ensuring that the client will not disclose any information provided by you to third parties. If necessary, establish penalties that would apply to the client in case of a breach of contract and unauthorized disclosure of confidential information. This is crucial to protect intellectual property from unauthorized use and sensitive information from being disclosed to third parties.
👉 Copyright Protection Notices: Apply copyright protection notices throughout the created code to indicate that the code is your intellectual property. This will help protect your work from unauthorized copying and use.
👉 Code Transfer: Until full payment is made, provide the client only with necessary parts of the code or demo versions. The final code with full functionality should be transferred only after full settlement.
👉 Code Versions and Documentation Storage: Store all code versions and documentation in a secure location. This will help provide your authority in the event of a dispute and defend your rights.
In cases where the ownership of the intellectual property created needs to be transferred to the client before full payment, one additional method of protecting intellectual property for the service provider may be the pledge of intellectual property rights.
The pledge agreement establishes a fixed obligation, with a clearly defined deadline by which the debtor must fulfill their obligation, such as the final deadline by which the client must settle for the services provided. Accordingly, if the debtor (the client who has not paid for the services) fails to fulfill the pledged obligation, you will have the right to satisfy your claim from the value of the pledged property before other creditors.
We understand that each project is unique, so we invite you to consult with Prevence’s lawyer, Gintarė Daukšė, regarding any intellectual property protection or IT law matters. 📧 gintare.daukse@prevence.legal.
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