Orest Hlado

IT law · Lviv

Developer agreements and transfer of rights to code

You paid for the code. But if the contract has no transfer of property rights, legally it may still belong to the developer. This surfaces at the worst moment: in due diligence before an investment or when selling the product.

DEVELOPER AGREEMENT
from €150
  • Subject and stages of work
  • Transfer of property rights to the code
  • Acceptance certificates and procedure
  • NDA included

English or bilingual version with no extra charge for the language, if the scope is standard.

TIMELINE
3–7 days
LANGUAGES
Ukrainian, English
FORMAT
Remotely
CONSULTATION
from UAH 2,000

Who owns the code you paid for

By default, rights to software code arise with whoever wrote it. For them to pass to the client, this has to be stated expressly in the contract and confirmed with acceptance certificates. “But we paid” is not an argument in court.

With developers working as sole proprietors there's another risk. If the contract looks like employment, with set hours, subordination and a fixed “salary”, the tax office may reclassify the relationship as employment. The contract has to describe a service and a result, not a working day.

What the agreement includes

  • Subject and specification: what exactly the developer does.
  • Stages, deadlines and acceptance of work by certificate.
  • Transfer of exclusive property rights to the code, design and documentation from payment or acceptance.
  • Confidentiality and a ban on using your code in other projects.
  • Liability for missed deadlines and the termination procedure.
  • Governing law, language and dispute resolution, if the other party is from another country.

Typical mistakes in developer agreements

MistakeConsequence
No clause on transfer of rightsThe code legally belongs to the developer
The contract looks like employmentRisk of reassessed social contributions and income tax
No acceptance certificatesHard to prove the work was accepted and the rights transferred
No NDAThe developer may reuse the solution for a competitor
No governing law or court specifiedA dispute with a foreigner becomes expensive and slow

A developer from another country

If the contractor is abroad, we choose the governing law, the language, the currency and how disputes are resolved. For a Ukrainian client it's also a cross-border contract with currency rules. I drafted one like this for work between Poland and Ukraine; the case is below.

Open source and third-party libraries

Developers almost always use third-party libraries. Some licences allow anything; some require you to open your own code. The contract should require the developer to disclose such components and not to use “viral” licences without your consent.

How it works

i
A call
Who the developer is, what they do, how you pay.
ii
Draft
I draft the agreement and explain the key clauses.
iii
Edits
We agree it with the developer.
iv
Signing
Agreement, NDA and an acceptance certificate template.
your signature here

Your part: a project description and the payment terms. The rest of the arrows are mine.

LEGAL BASIS

Civil Code of Ukraine: Chapter 63 (services agreement), Articles 1107–1109 (agreements on intellectual property rights); Law of Ukraine “On Copyright and Related Rights” (computer programs as copyright works); Tax Code of Ukraine (risks of reclassification as employment).

Frequently asked questions about developer agreements

How much does a developer agreement cost?

From €150. The price depends on the complexity of the project and the language of the agreement.

Can I use a template from the internet?

You can, but a template doesn't know your project. Most often it has no proper transfer of rights, or it has clauses from another country's law.

When do the rights to the code transfer?

When the contract says so: on payment, on signing the acceptance certificate, or on creation of the code. What matters is that it's written down.

Do I need a separate NDA?

Confidentiality terms can be included in the agreement. A separate NDA is handy when you're still only discussing the project.

Do you draft agreements in English?

Yes, in English or bilingual.

DONE
CASE No. 036
Software development agreement: Poland to Ukraine

The client needed to formalise work with developers from another country. I drafted a software development services agreement with a transfer of rights. The agreement is ready for signing.

Read the case →

Discussing a project before signing the agreement? Start with an NDA. If the product is already live, check your Terms of Service and Privacy Policy.

Tell me about the project and the developer