WHAT IS AN ASSIGNMENT OF RIGHTS IN SOFTWARE?

An assignment of rights in software is an agreement to transfer all of the intellectual property rights along with documentation relating to the software. This documentation can include manuals, SOP’s as well as training manuals.

The party who assigns the rights can opt to receive a monetary payment or he or she can decide to receive equity in the company as compensation.

WHEN DO YOU NEED AN ASSIGNMENT OF RIGHTS IN SOFTWARE?

An Assignment of Rights in Software is needed if the company plans to distribute or rent the software to others. The assignment also gives the recipient of the assignment the rights to make adaptations and changes to the software.

• where a developer has been hired externally to develop a piece of software for the business

• where a developer has been hired externally to redevelop or modify a piece of existing software;

WHAT IS INCLUDED IN AN ASSIGNMENT OF RIGHTS IN SOFTWARE?

• An Assignment of Rights in Software should include the following:

• Names and identifying information of the parties.

• Name and exact specifications for the software

• A detailed confidentiality clause

• The amount and manner in which compensation will be paid for the assignment.

• The effective date of the assignment. The assignment also gives the recipient of the assignment the rights to make adaptations and changes to the software.