Part 1: FEATURES OF A SOFTWARE DEVELOPMENT AGREEMENT

Software development agreements have gained popularity with the introduction of computers into our homes and the growth of the IT sector. To put it simply, a software development agreement is an agreement between the developer and the customer that outlines the terms and conditions for the creation, upkeep, sale, and transfer of software to a customer so that the latter can incorporate it into the platform, good, service, or procedure. Therefore, it is crucial that the parties to the agreement discuss matters pertaining to source code, intellectual property rights, support, upkeep, and, of course, remuneration for the work completed.

Standard, but no less important, agreement clauses

If you have ever signed a legal agreement, you are aware that each agreement needs to define the parties and the subject matter of the agreement. In this instance, a software development agreement is concluded?regarding the creation of software (the agreement's subject matter) between the software developer and the customer (the agreement's parties). Nonetheless, the agreement's subject matter is frequently not restricted to software development. The parties may include terms for continued software support, help integrating the software into the platform, and conditions for further disposal of intellectual property rights to the software.

The following provisions should be clearly stipulated in the software development agreement:

1. Description of the services to be provided by the software developer and payment for their provision.?

Usually, the description of services and prices are described in a separate appendix to the agreement. It is in the interests of each party to describe all services clearly and in detail so that in the future you do not have to pay additional money (if you are the customer) or perform additional work (if you are the developer). Please note that software can be developed not only by individuals but also by legal entities. Therefore, agreements may specify which department will be responsible for what. For example, the design department will create the design, the development department will write the code, etc.

Also, to describe the future software in detail, an appendix is usually created, called a "technical task". In this appendix, the functions of the future software, types of work, budget, deadlines for execution, and other features desired by the parties are detailed. If you see that your technical task is larger than the agreement itself, don't rush to worry, as this practice exists and is quite common. This is because when customers order software development, they usually have their own vision of the software and the deadlines by which they want to get it. Try to imagine how many pages are needed to describe in detail the description of the software, its functions and specifications, features of software development and design, etc. The technical task acts as a kind of "guide" for the developers, which they should follow in their work. Thus, the technical task increases the chances of the customers seeing what they expect. By using the technical task, the developers will be able to protect themselves from additional work if the client comes up with another new feature. However, it is important to consider the possibility of the client doing so without incurring additional costs, as this possibility may be stipulated in the agreement but could also be restricted.

2. Intellectual property rights.?

Here are some questions you'll need to respond to: "Who will own the software?" and "What rights will the parties have in relation to the software in the future?" As a result, it's critical to point out precisely the?intellectual property rights to the software's source code, design, copyright, and trade secrets,?the precise time at which these rights are transferred from one party to another. If you are a customer who believes that expressing "all intellectual property rights to the software are transferred to the customer" will entirely safeguard you, then not everything is as simple as it seems. Certain rights of the author may be declared unalienable by the laws of a specific country.?

If you are a developer, consider if you want to retain intellectual property rights over the software you create. You might wish to be able to utilize the source code in the future for your own projects, for example. Thus, consider the implications and the things that are important to you and your company before signing any agreements. ?Subscribe to our profile TAXUS LAW & FINANCE to stay in touch with us and not to miss the second part of the article "FEATURES OF A SOFTWARE DEVELOPMENT AGREEMENT"