Don't fall into software trap (From The Wiltshire Gazette and Herald)

Don't fall into software trap

COMPUTER firms could be putting themselves at risk by failing to secure copyrights when creating new software.

The warning from Swindon-based Withy King solicitors follows surveys from the Patent Office, which found that 40 per cent of firms wrongly believed they owned the copyright to software that had been developed for their business, while a further 30 per cent did not know who had ownership rights.

Alex Pyatt, intellectual property specialist at Withy King said: "Unless you clarify in legal terms that you own the copyright to newly developed software, you may only be using it under licence, even if you paid for its development.

"This means that you have no ownership rights to the software which leaves developers free to sell the program to your competitors. It can also prove to be a fundamental problem when you come to sell your business as, if the software is perceived by a buyer as a significant asset, they will want evidence or warranties that it is owned by the company.

"It's now even more important that businesses clarify who owns bespoke software," added Mr Pyatt, "as new regulations are being introduced which will make it simpler for IT consultants to enforce their intellectual property rights."

A wide range of companies of all sizes commission software for numerous uses, including the creation of a new websites, database management systems or formulations of a new way of doing business. Alex, who has provided legal advice to companies on the complexities of protecting intellectual property and software ownership, stressed that the cost of legal work to secure copyright is minimal compared to the costs, which could be incurred during a later dispute over ownership.

He said: "If you are about to commission the creation of software or any other intellectual property, such as a new logo, particularly if it will be key in differentiating you from your competitors or you may consider selling or licensing it in future, you need to ensure you own the copyright.

"Set out who will own the intellectual property rights in a written agreement before your contractor commences work.

"If you are unable to find a contractor who will agree to assign ownership of the copyright in the software, you should at least get them to confirm in a binding agreement that they will not licence it to your competitors."

Anthony Osborne