We paid for IT, so we own IT (or maybe not)

So you had software or a website developed by an external contractor. You didn’t bother with paperwork, but paid a small fortune and it performs great. Therefore. you must own the copyright in it, right? Wrong!

By Tony Catterall, senior partner and head of intellectual property, Taylors.
This is a common trap found even by the very large businesses. In fact, a recent survey found only 23% of businesses understood that copyright in IT programs that had been developed by external contractors remains with the contractor unless otherwise agreed. It is therefore the opposite position from when an employee develops a program as part of their job.

To give an example, Taylors acted for a developer of an IT program in the first reported case in this area of law regarding software development. The customer tried to claim ownership of copyright in unique coding which our client had developed for their internal use, because the customer had spotted an opportunity to sell on the program.

Now take a moment to consider the value of your IT infrastructure. In terms of its day-to-day use you hope it will add value on a future sale of the business. Then bear in mind that copyright can last for up to 70 years from the year in which the person who created it dies.

Against this backdrop, it is certainly worth making sure at the outset you have a written contract and it provides for you to get full intellectual property rights in what you pay for when having programming undertaken externally (don’t just accept the developer’s standard terms of business which will undoubtedly give them ownership).

Likewise, don’t forget to make sure any ‘snagging’ work is also covered. If you don’t also own rights for any patch supplied to rectify a critical fault with your sparkly new software, you could be in the same sticky situation.

Enjoyed this? Read more from Lancashire Business View

Latest news

1

Virgin Wines to relocate to new APTUS development Aptus

Virgin Wines to relocate to new APTUS development

19 Aug 2026

2

Book your place at LBV issue 130 launch event LBV130 Magazine Launch Social720No Text 6

Book your place at LBV issue 130 launch event

19 Aug 2026

3

Headline sponsors line up for LBV Built Environment Conference BEC26 WW Logo1080 1

Headline sponsors line up for LBV Built Environment Conference

18 Aug 2026

4

PNE sale moves forward after 'acceptable' offer Deepdalecomplete

PNE sale moves forward after 'acceptable' offer

18 Aug 2026

5

Brewer to buy city centre premises after 17 year journey from garage hobby Ryan Hayes Chain House Brewing

Brewer to buy city centre premises after 17 year journey from garage hobby

18 Aug 2026

Blackburn College (July-Aug 26)
Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV130 September/October Magazine Networking Event
LBV130 Magazine Launch Social720No Text 6 17 Sep 2026

LBV130 September/October Magazine Networking Event

The Beehive Blackburn, Shadsworth Business Park, BB1 2QS

08:30 - 10:30

Built Environment Conference 2026
BEC26 WW Logo720 24 Sep 2026

Built Environment Conference 2026

EG On The Move, Waterside Head Office, Blackburn, BB1 2FA

08:30 - 13:00

Sub36 Awards 2026
Sub36 WW Logo720 16 Oct 2026

Sub36 Awards 2026

Park Hall Hotel & Spa, Chorley, PR7 5LP

18:30 - 00:30

LBV131 November/December Magazine Networking Event
LBV131 Magazine Launch Social720No Text 19 Nov 2026

LBV131 November/December Magazine Networking Event

Lancashire

08:30 - 10:30

Lancashire Business Day 2026
LBD26 WW Logo720 27 Nov 2026

Lancashire Business Day 2026

Burnley Football Club, BB10 4BX

12:00 - 17:00

U35 Networking
Lancaster And Morecambe Logo 1 25 Aug 2026

U35 Networking

The Royal Hotel & Bar, Lancaster, LA1 1YD

17:30 - 19:00

Build Your Business To Sell It - Even If You Aren't Planning To Sell - FREE Workshop
LBV Website Events GraphicAction Coach 2 27 Aug 2026

Build Your Business To Sell It - Even If You Aren't Planning To Sell - FREE Workshop

The Wellsprings, Bolton, BL1 1SB

09:00 - 11:30

Preston Freelancer Meet-Up: August
LBV Website Events GraphicFreelancer Meet Up 27 Aug 2026

Preston Freelancer Meet-Up: August

Society1, Preston, PR1 3LT

10:00 - 12:00

Chamber Breakfast Networking – September
Lancaster And Morecambe Logo 1 03 Sep 2026

Chamber Breakfast Networking – September

Soul Bowl, Morecambe, LA4 4BU

08:00 - 10:00

Mediation in the workplace: a practical guide to resolving conflict
LBV Website Events GraphicMediation In The Workplace 08 Sep 2026

Mediation in the workplace: a practical guide to resolving conflict

Online, Preston, PR1 3JG

12:00 - 12:45

Preston Tech Connection Hot Takes
LBV Website Events GraphicHot Takes In Tech 09 Sep 2026

Preston Tech Connection Hot Takes

Society1, Preston, PR1 3LT

18:00 - 19:30

Stop Wasting Time. Start Making Money
Lancaster And Morecambe Logo 1 10 Sep 2026

Stop Wasting Time. Start Making Money

Lancaster & Morecambe College, Lancaster, LA1 2TZ

08:00 - 10:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV129 Online Graphic
Subscribe now

Weekly news bulletin