SOFTWARE DEVELOPMENT AND INTELLECTUAL PROPERTY RIGHTS

SOFTWARE DEVELOPMENT AND INTELLECTUAL PROPERTY RIGHTS

1. Development Processes

   • typical software
     • gathering and analysis, design, construction, testing, debugging, and deployment
   • The construction stage
     • The source code is subsequently translated or “compiled” into machine-readable object code
   • the intellectual assets
     • can be classified into five types of properties: preparatory materials, databases, derivatives, other works, and software programs
   • Types of IP Rights in SDO
     • 1. Right to use the developed software and source code for a specific purpose after the contract ends,
     • 2. Right to redeploy the residual knowledge asset such as information relating to ideas, concepts and techniques
     • 3. Right to sell the developed software to third parties in certain geographical regions and industries.

2. Intellectual Property Rights Allocation

   • Ownership
     • Assets Ownership of servers, customer data, and URL
     • Service output Ownership of service outputs (e.g., design, process plan and technology)
     • Core technology Ownership of copyright, patent, or trade mark of core technology in the development
   • IP Usage Rights
     • Right to sell Right to manufacture and sell final product
     • Redeployment right Redeployment right of know-how and residual information
     • Right to use developed technology and embedded technologies on expiration
   • Control Rights
     • Source code escrow Vendors shall deposit a copy of source code to the escrow agent
     • Financial right Vendors have right to receive royalty payments from client
     • Non-compete restriction Restricting vendors from competing with clients after the end of contracts