Who Owns the Code? A Plain-English Guide to Intellectual Property in App Development

Article summary:

• Software code is intellectual property: In the U.S., source code is protected by copyright law, meaning the person who writes the code is its legal owner by default. In practical terms, if you don’t have the right agreements in place, you might not actually own the app code you paid to develop.
• Contracts determine code ownership: Always use clear contracts with developers to explicitly transfer intellectual property (IP) rights to your business. For example, a proper development contract should state that all code and assets will be your property once the project is complete. Without an IP clause or “work-for-hire” agreement, an external developer or agency could legally retain ownership of your app’s code.
• Beware of third-party code and licenses: Modern apps often incorporate open-source libraries (which can make up 70–90% of a software codebase) or proprietary components. You cannot exclusively own those pre-made components—your rights come from licenses. It’s critical to manage open-source licenses and clarify usage rights for any external code to avoid IP disputes.

Intellectual property in software is a serious business concern. A recent survey found that over 60% of companies had been involved in digital copyright disputes (with software being a major area of contention) in the past five years.

Who really owns the code of your app? It’s a simple question that catches many businesses off-guard. Imagine you’ve spent significant time and money to have a mobile app developed. You assume, quite naturally, that you own everything — the idea, the design, and of course the source code. But without the proper agreements, the law might say otherwise. In fact, by default the author of the code (the developer) holds the copyright, not necessarily the paying client. This means that if you haven’t sorted out intellectual property ownership up front, you might not have full rights to your own app’s code. Scary, right?

This guide will walk you through, in plain English, the essentials of intellectual property (IP) in app development — with a focus on code ownership. Whether you’re a startup founder or a business executive contracting out development, it’s critical to understand who owns what, before any code gets written. We’ll cover how copyright works for software, why an employee vs. contractor distinction matters, what to put in your contracts, and how open-source or third-party code can complicate ownership. We’ll also touch on patents, trade secrets, and best practices to protect your investment. By the end, you should have a clear roadmap to ensure that when you pay to build an app, you own the code – and avoid unpleasant surprises or legal battles down the line.

Code Is Intellectual Property (IP)

In the world of app development, source code isn’t just a bunch of technical instructions – it’s considered intellectual property. In the United States (and most countries), software code is protected by copyright law just like a book or a piece of music. This means the moment a developer writes code, that code is automatically copyrighted with the developer as the author/owner (unless agreed otherwise). As one legal expert succinctly puts it, under copyright the creator of a work (e.g. the coder) is the default owner of that work. In other words, an app’s code belongs to its author by default, not necessarily the person who commissioned or paid for it.

It’s important to distinguish between an idea and the expression of that idea in code. You can’t copyright or own a general idea or concept for an app – ideas themselves aren’t property. What is protectable is the implementation: the actual code written, the specific graphics or text, the unique content created for the app. For example, you might have an idea for the next Uber, but you don’t own that idea exclusively. However, the actual source code your team writes for your specific ride-sharing app is subject to IP protection (copyright).

Copyright is the primary form of IP protection for software. It gives the owner exclusive rights to reproduce, distribute, and modify the code. If someone else copies your app’s code without permission, that’s copyright infringement, just as plagiarizing a book would be. (This also means as a business, you must be careful not to copy code from others without permission!) Copyright arises automatically – there’s no need to register to have rights, though registration can strengthen enforcement. For most businesses, this is the key IP concern: making sure you hold the copyright to the code of the app you’re investing in.

It’s worth noting that other forms of IP can also apply in app development: patents, trademarks, and trade secrets. Patents apply to inventions and novel processes – in software, this could be a unique algorithm or a novel technical solution (think of Amazon’s famous “One-Click Checkout” patent). Patenting software is complex (and expensive), and not every app will have patentable features, but it’s something to consider if your app involves a truly innovative technical approach. 

Trademarks protect brand names, logos, and slogans – for an app business, this means your app’s name and branding can be trademarked to prevent others from using confusingly similar names. Trade secrets cover confidential business information – in software, your source code or certain algorithms can be treated as trade secrets if you keep them truly secret (for example, a proprietary server-side algorithm that isn’t visible in the app code released to users). A classic example is Google’s search ranking algorithm, which is kept under wraps as a trade secret rather than being patented.

However, when it comes to “Who owns the code?” specifically, copyright is the star of the show. Copyright ownership of the code determines who can use it, license it, or sell it. So let’s dig into how ownership works in different scenarios.

Employees vs. Contractors: Who Owns the Code by Default?

If your company has software developers on payroll (full-time employees), any code they create as part of their job will generally be owned by the company. U.S. copyright law includes the “work made for hire” doctrine, which says that works created by an employee within the scope of their employment are considered authored by the employer. In plain terms, if your employee writes code for your app, your company is automatically the owner of that code. This is why many businesses choose to develop in-house when possible – it sidesteps a lot of ownership ambiguity because the law is clear in this case.

However, things get more complicated when you’re working with independent contractors or external developers – which is extremely common. In fact, about 43% of U.S. companies outsource programming or development jobs in some capacity. Hiring outside talent (freelancers or an app development agency) can be a great strategy to get your app built, but you need to know the default IP rules here are not in your favor unless you take action.

For independent contractors, the default rule is essentially the opposite of the employee scenario: the contractor (developer) owns the copyright by default, even if you paid for the work. Unless you have a contract that says otherwise, a freelance developer or agency could legally claim ownership of the code they wrote for you. This surprises many business owners. You might think “I paid for it, so I own it,” but IP law doesn’t work like buying a physical object. Paying an invoice to a developer doesn’t automatically transfer the copyright of the code to you. As a Canadian tech law blog bluntly noted, “Unless there is a contract assigning ownership, contractors retain IP rights in the code they create — even if it was written specifically for the client.” The same principle holds true in the U.S. context.

What about labeling the contract work as “work-for-hire”? Be careful here – simply calling something “work for hire” doesn’t necessarily make it so. U.S. law only allows certain types of works to be considered “work made for hire” when created by a contractor, and software code is not one of the categories on that list. (Those categories are things like commissioned illustrations, contributions to a collective work, etc.) So, if your developer is truly an independent contractor (not your employee), the code they produce isn’t automatically owned by you under work-for-hire unless very specific conditions are met. In fact, one legal alert warns that trying to rely on a work-for-hire clause with a contractor is a “fallacy” that can trap the unwary – the safe route is to have an explicit assignment of copyright from the contractor to your company.

Bottom line: By default, employees’ code = yours, contractors’ code = theirs. Since most businesses will use contractors or third-party developers at some point (especially startups or non-tech companies that don’t have in-house coders), it’s crucial to override that default through a contract. We’ll talk about how in the next section.

Why Your Development Contract Matters

Given the above, it should be clear that a written development contract is your best friend when it comes to owning your app’s code. This contract (whether it’s a freelancer agreement, an agency’s master service agreement, etc.) needs to include terms that transfer ownership of the code and other IP to you, the client. If you only remember one thing from this guide, remember this: If you hire someone to build your app, make sure your contract explicitly states that you will own all intellectual property (the source code, designs, graphics, etc.) resulting from the project.

As an example, one of Dogtown Media’s own guides for clients emphasizes that you should ensure “your contract specifies that all code, designs, and materials produced for the project will be your property once payment is made.” This means once the project is completed and you’ve paid for the work, you hold the rights to everything that was created. Why is this so important? Because it legally guarantees you the freedom to use, modify, or even bring in another developer to work on the app later without running into ownership disputes. Imagine if you want to update your app or switch development vendors – if you don’t actually own the code, that transition could be messy or impossible without the original developer’s permission.

Let’s break down a few key elements your contracts should cover:

IP Assignment Clause

This is a clause that says the developer assigns all rights, title, and interest in the work to you. It might also be worded as a “work made for hire” clause followed by an assignment (to cover all bases). Essentially, the developer agrees that the client (your company) will be the owner of the code from the outset, or that they transfer any rights to you. Without this, as we learned, the default is the opposite for contractors. The contract should be signed before or at the start of the project (don’t wait until after the code is written).

Scope of Work and Deliverables

Be clear on what’s being created and delivered. This isn’t directly about IP ownership, but it prevents confusion about what code, documentation, or assets you should expect to receive and own at the end. For instance, are you getting the full source code repository? (You should!) If the developer is using any of their own proprietary components or pre-written libraries, the contract should specify how those are handled (do you get a license to use them in your app? Are they open-source?).

Third-Party Materials 

The contract should require the developer to disclose any third-party code or libraries used (open-source or commercial). This ties into ownership because if the developer includes something they didn’t write, you can’t own that outright (we’ll discuss this more in the next section). You want to avoid unknowingly infringing someone else’s IP or being surprised by license requirements later. A good contract might say that any third-party components will be only those with permissible licenses, or that the developer will help ensure you have the necessary licenses.

NDA (Non-Disclosure Agreement)

While an NDA doesn’t transfer code ownership, it’s a related piece of the IP puzzle. NDAs protect your ideas and business information during discussions. It’s wise to have developers sign an NDA before you share the full details of your app concept or any sensitive data. This ensures they can’t legally take your idea or info and tell others or use it elsewhere. Most reputable developers are used to signing NDAs. Keep in mind, an NDA protects confidential information (your trade secrets, plans, user data, etc.), whereas the IP assignment protects the actual code and deliverables. You’ll likely want both in place for a comprehensive IP protection strategy.

Moral Rights Waiver

This is more of an issue in some jurisdictions than the U.S., but it doesn’t hurt to have. “Moral rights” refer to things like the developer’s right to be credited or to object to certain modifications of their work. In the U.S., moral rights for software are very limited, but contracts sometimes explicitly have the developer waive any such rights, just to prevent any future claims (common in international contexts or if the dev is outside the U.S.).

A clear contract is what changes the question from “Who owns the code?” to “You do – as agreed in writing.” It is far cheaper and easier to get ownership sorted out upfront with a contract than to try to resolve it later via lawsuits. If you skip this, you might end up in the unfortunate scenario of having a completed app that you paid for but legally cannot modify or commercialize without the developer’s permission – essentially being held hostage to someone else’s IP rights. 

Indeed, many businesses have learned this the hard way. It’s “not uncommon for businesses to overlook this and face complications later regarding who owns the finished product” as one app development prep guide notes. Don’t be that business; iron out IP in the contract.

One more tip: ensure the contract covers all contributors. If you hire an agency, typically the agency contract covers all their employees/contractors. But if you end up hiring multiple freelancers (say a developer and a designer), make sure each one signs an agreement. If you ever accept code contributions from a third party (even an open-source volunteer), you’d want an IP agreement or at least have them contribute under clear license terms. It’s best practice to have a paper trail that every piece of code in your app is accounted for in terms of IP rights.

Using Open-Source or Third-Party Code

No app is built in a vacuum. These days, virtually all software projects include some amount of third-party code – whether it’s open-source libraries, frameworks, SDKs, or even code snippets. A 2022 Linux Foundation study estimated that free and open-source software (FOSS) components constitute 70% to 90% of the code in modern applications. That’s not a typo – the vast majority of a typical app’s codebase might not be written from scratch, but assembled from existing open-source components. This is a great thing for development speed and cost (no need to reinvent the wheel for common functionalities), but it introduces a twist to the “Who owns the code?” question: you can’t own open-source code that you didn’t create.

So how does this work? Open-source software is released under licenses (like MIT, Apache, GPL, etc.) that give you permission to use, modify, and sometimes redistribute the code. You don’t “own” it (the original authors do), but you have the right to use it under certain conditions. For example, an open-source encryption library might be included in your app. You can use it, but you typically need to abide by the license (perhaps by crediting the authors or sharing any modifications, depending on the license terms). As long as you follow the license, you’re in the clear; if you violate it, you could lose the license and be infringing copyright.

Why does this matter for code ownership? When you proudly say “we own our app’s code 100%,” that’s only true for the original code written by you or your developers. It does not cover the pre-existing open-source components – those remain under their original licenses. And that’s fine! Owning 100% of a codebase in the sense of having written every single line from scratch is increasingly rare (and often unnecessary). The key is to ensure you have the rights to use all the parts of your codebase. 

This is why earlier we mentioned your contract should require the developer to disclose third-party code and ensure it’s properly licensed. If your developer used an open-source library that had a restrictive license (for instance, “copyleft” licenses like the GPL require that if you distribute software that includes that code, you must open-source your entire app’s code in return), that could be a big deal for your business model. It’s not that you wouldn’t own your proprietary portions, but you might be forced to share them publicly. Many businesses avoid strong copyleft licensed code in proprietary apps for this reason, or they comply by open-sourcing their app (which not everyone wants to do commercially).

The good news is that many open-source licenses (MIT, Apache, BSD, etc.) are business-friendly and pose no ownership conflicts – you can use the code freely in your proprietary app without any need to give away your own source code. They might just require an acknowledgment in your app or documentation. 

It’s common for agencies like Dogtown Media (and any seasoned developer) to favor these permissive licenses when choosing libraries for a client project, specifically to avoid entangling the client’s IP. Always ask your development team what open-source frameworks or libraries they plan to use, and if any have unusual licenses. Most likely, you’ll hear frameworks like React Native, Angular, or libraries for networking, UI components, etc., which are usually MIT or Apache licensed (very permissive).

Aside from open source, you might also have commercial third-party components. For example, maybe your app uses a proprietary SDK from a company (for analytics, or a mapping service). These come with their own license agreements (often you get a binary, not the source code). You don’t own that code either – you’re essentially renting it via license. This is usually fine, but be mindful of the terms (some SDKs might limit usage or have fees at scale).

Additionally, a development agency might have its own reusable code – perhaps they have a proprietary library or pre-built modules to accelerate development. It’s not uncommon for agencies to reuse chunks of code across projects (why write the same user authentication module from scratch every time?). If they do, the contract should clarify whether that remains the agency’s property and what rights you have. 

Typically, an agency will grant you at least a license to use that code as part of your app forever, even if they retain ownership of that particular library. For instance, the contract might say you have a perpetual, royalty-free license to use and modify the agency’s pre-existing code included in the project, but you can’t resell it separately. This way, you effectively have control over your whole app, but the agency can still use their generic components for other projects. The key is transparency and documentation of these components up front, so no one is caught off guard.

To sum up: Using third-party code is standard practice, and it doesn’t diminish the value of your app, but you need to manage the IP licenses carefully. Keep an inventory of all third-party software in your app (your developers can provide this). Make sure all of it is either open-source with permissive licenses or properly licensed to your company. This will protect you if you ever get audited for license compliance or if you decide to sell your app/business and need to show clean IP ownership. Nothing would be worse than discovering too late that a critical piece of your app was copied without permission or under a license that puts your whole IP at risk.

Patents and Trade Secrets in App Development

Up to now, we’ve focused on copyright ownership of code, since that’s the most immediate concern for code ownership. But for completeness, let’s briefly address two other forms of intellectual property that sometimes come into play with apps: patents and trade secrets.

Software Patents

In the U.S., it is possible to patent certain software-related inventions. This typically applies to novel, non-obvious processes or methods implemented by your software (not just the code itself). For example, if your app uses a groundbreaking algorithm or a unique technique to do something, that might be patentable. The reality is that many apps are not strong candidates for patents because their functionality is not completely novel (and patents are costly to obtain and enforce). However, some are: think of a new encryption method, a novel user interface mechanism, or a specialized algorithm in a healthtech app that analyzes data in an innovative way. 

Patents give you a monopoly on that invention for ~20 years, which can be powerful – it could stop competitors from copying a key feature even if they write their own code. The downside is the process: you’ll need patent attorneys, and it can take years and tens of thousands of dollars to get a patent issued. Software patent law is tricky, as one Dogtown Media article notes, and not every app idea qualifies. It’s usually something to discuss with an IP attorney early if you think you have a big, patent-worthy idea (and do it before you publicly launch the app, as public disclosure can spoil patent eligibility in some countries).

One strategy some tech companies use is to file provisional patent applications during development to secure a filing date for their ideas, and then see if the app is successful enough to justify pursuing the full patent. For many startups, patents aren’t the first priority (speed to market often is), but businesses in areas like medical devices, fintech, or deep tech should at least consider it as part of their IP strategy. Keep in mind, patenting something doesn’t automatically give you code ownership issues – it’s more about protecting ideas so others can’t implement them, whereas copyright stops others from copying your specific code.

Trade Secrets

A trade secret is basically any information that has value to a business by virtue of not being generally known, as long as the business takes reasonable steps to keep it secret. In the context of software, your source code can be a trade secret – that’s why companies don’t share their source code publicly. However, once you distribute an app (especially if it’s not just server-side), some code might be decompilable or guessable, so calling it a secret can be iffy. More concretely, algorithms or data (like a matchmaking algorithm or a pricing strategy coded into a backend) can be trade secrets if only your company knows how they work. 

The famous example mentioned earlier is Google’s search algorithm: instead of patenting it (which would eventually disclose it and then expire, letting others use it), Google keeps it a closely guarded secret, with employees under strict NDAs and compartmentalization so no single person knows the whole formula. Trade secrets can technically last forever (Coca-Cola’s recipe is a trade secret over a century old). The flip side is that if the secret gets out (leaked or reverse-engineered), you lose protection — there’s no IP right to assert if it wasn’t kept secret.

For your app, the relevant takeaway is: protect your confidential information. Use NDAs with anyone who touches sensitive parts of your project. Restrict access to the source code repositories to trusted parties. If you have a unique technique or data set, don’t unnecessarily share it. This is more about security and policies than legal ownership per se, but it’s part of guarding the value of your IP. Also, note that if you do go the patent route for something, you can’t have it both ways — you either patent (which publishes the invention) or keep it secret. Some things you’ll patent, others you’ll keep as secrets.

Finally, a word on trademarks, just to avoid confusion: trademarks protect your app’s name, logo, or branding. They don’t cover code or functionality at all. But from a business perspective, trademarking your app name is usually smart so no one in the same space can copy your branding. This is separate from code ownership, but don’t neglect it — imagine building a great app called “CoolName” only to be forced to rebrand because someone else had a registered trademark. Do a quick trademark search and register if you plan to build a brand around the app. It’s relatively inexpensive and straightforward compared to patents.

Best Practices to Protect Your App’s Code IP

We’ve covered a lot of ground, so let’s distill this into actionable best practices. If you’re a business developing an app (whether through in-house teams or external developers), here’s how to ensure you end up owning what you think you own:

Use Strong Contracts

Always have a written development contract with freelancers or agencies. Include IP assignment clauses that clearly state you will own the code, designs, and other deliverables of the project. If you’re not sure how to word this, consult an IP attorney or use reputable contract templates — it’s worth the peace of mind. Remember that a simple clause can prevent huge headaches: e.g., “Developer agrees that all work product, including source code, produced under this agreement will be the sole property of Client, and Developer hereby assigns all rights in such work to Client.” Don’t start coding without this agreement in place.

Establish Work Policies for Employees

If you have employees writing code, make sure you have employment agreements or handbook policies stating that work done for the company is company property (work for hire) and that the employee will sign any needed papers to confirm that. This is usually standard, but it’s good to have it explicitly, especially if employees might contribute to patents or other IP. 

Also consider having a policy for side projects – e.g., clarifying if an employee creates something unrelated on their own time, the company won’t claim it (or will, if it competes – depends on your approach). Clarity here prevents disputes and keeps morale high, too.

Sign NDAs Before Sharing Ideas or Code

When talking to prospective developers, vendors, or even potential partners, use NDAs to protect your ideas and any non-public information. As Dogtown Media’s experts note, reputable developers are accustomed to signing NDAs early in discussions. An NDA typically isn’t much of a negotiation – it’s a straightforward way to ensure everyone knows what must be kept confidential. This helps protect trade secrets and sensitive info during the pre-development and development phases.

Inventory and License Check Third-Party Code

Know what components are going into your app. Keep a list of all open-source libraries and third-party services used. For each, ensure you comply with their licenses (your developer can help with this). For example, if an open-source library requires attribution, put it in your app’s acknowledgments. If a component has a copyleft license, make an informed decision on whether to include it (consult a lawyer if needed, as it might affect your distribution rights). Ignoring open-source licenses can lead to infringement claims – there have been cases where companies had to release their source code or pay damages due to GPL violations, for instance. Don’t let that be you.

Secure Your Code Repositories

Use private, secure source control (like GitHub or GitLab private repos) and limit access to those who need it. When the project is done, ensure you have a complete copy of the source code and all assets. It sounds obvious, but we’ve seen situations where a client didn’t get the source code at project end – essentially meaning they didn’t truly have control. Also, set up regular backups. Your code is an asset; losing it or having it stolen can be as devastating as losing any other critical asset.

Plan for Transfer or Handoff

If you end your relationship with a developer or agency, have a plan (in the contract) for transitioning the code. This could include a knowledge transfer session, documentation delivery, etc. Ensure the contract doesn’t have clauses that unfairly restrict your use of the code post-termination. Sometimes maintenance agreements have clauses that if you stop paying, you lose certain rights – avoid any language that could cloud your ownership. You want the freedom to take the code and go to another developer if needed without strings attached (assuming you’ve paid for the work already).

Consider IP Filings (Patents/Trademarks)

As discussed, if your app has a novel invention, talk to a patent attorney early. It might not always lead to a patent, but you should at least evaluate it if you think you have something unique – it could become a valuable asset or defensive protection down the road. For branding, file trademarks for your app name and logo in key markets. This doesn’t affect code ownership, but it’s part of a comprehensive IP strategy for your app business.

Educate and Involve Professionals

IP can be complex. Don’t hesitate to involve legal counsel for important contracts or decisions. Yes, it costs some money up front, but it’s trivial compared to the cost of an IP lawsuit or a lost product. If you have investors or stakeholders, they will be much more confident knowing your IP house is in order. We’ve seen deals and acquisitions fall apart in due diligence because a startup couldn’t prove it owned its software — for example, a missing contractor assignment from back in the early days can turn into a nightmare when a big investor or buyer asks “Can you show that you own this code?” and you can’t. So, get those ducks in a row early.

Foster a Trustworthy Relationship

This is more soft advice, but choose development partners (whether hires or agencies) that are professional and trustworthy. Reputable developers expect to sign contracts and NDAs clarifying IP – it’s part of doing business. If you encounter a developer who resists giving you ownership or says “just trust me, we don’t need to put it in writing,” consider that a red flag. Of course, developers should also protect themselves (ensuring they get paid, etc.), but IP ownership for the client is industry standard. 

At Dogtown Media, for instance, we understand our clients need to own the final product – it’s their business after all – so our contracts are very clear about IP ownership transferring to the client once the work is done and paid for. The only things we keep are our name on our own reusable tools and our portfolio bragging rights (with the client’s permission). The client gets the keys to their kingdom.

By following these best practices, you greatly reduce the risk of any nasty surprises regarding code ownership. You can confidently build and launch your app, secure in the knowledge that the underlying code – the engine of your digital product – truly belongs to your business.

Intellectual Property in App Development

In the fast-paced realm of app development, it’s easy to get caught up in features, timelines, and budgets and overlook the finer print of intellectual property. But code ownership is not a topic to take for granted. It can determine whether your investment in software becomes a lasting asset or a potential liability. The question of “Who owns the code?” boils down to understanding and leveraging intellectual property law in your favor: through clear agreements, smart use of third-party components, and strategic planning for patents or trade secrets when applicable.

The good news is that by reading this guide, you’re already ahead of the curve. Many business owners only learn about code ownership issues after a problem arises – for example, a fallout with a developer or an unexpected letter from an open-source foundation about a license violation. You now know that proactivity is key: get those contracts in place, use NDAs, document your code’s pedigree, and treat your app’s source code as a core asset worth safeguarding.

To answer the title question plainly: Who owns the code? – It should be you, the business that envisioned and paid for the app. And with the right approach, it will be. By taking the proper legal steps and mindful precautions we’ve outlined, you ensure that the brilliant app you’re building actually ends up fully in your control. That means you can enhance it, pivot it, sell it, or integrate it with other systems down the line without worrying about hidden IP strings attached.

Ultimately, understanding code ownership is about protecting your innovation and investment. Think of it as owning the deed to a house you’re building. You wouldn’t pour money into construction without making sure your name is on the title at the end of the day. Likewise, don’t pour money into development without securing the title to your code. With this plain-English guide (and perhaps a pinch of professional legal advice when needed), you have the roadmap to do exactly that.

Ready to build your app with confidence? Contact Dogtown Media to discuss your project and ensure proper IP protection from day one.

Happy developing – and may all your app’s code be truly yours!

FAQ

Q: If I hire a developer or development agency to build my app, do I automatically own the code?

A: No – not automatically. By default, the person or entity who writes the code owns the copyright. If the coder is your full-time employee, then yes, the code is typically considered “work made for hire” and your company owns it. But if you hire an independent contractor or agency, you do not automatically own the code unless the contract clearly transfers ownership to you. This is why it’s crucial to have an agreement that says the code and all IP rights are assigned to your company upon completion or payment. Without that in writing, the developer could legally claim ownership, meaning you might only have an implied license to use it. Always get it in writing that you own the code.

Q: What does “work made for hire” mean, and is it relevant to app development contracts?

A: “Work made for hire” is a legal concept under U.S. copyright law where the hiring party (e.g. an employer) is considered the author of a work created by someone else (e.g. an employee). In the context of app development:

• If code is written by your employees as part of their job, it’s work made for hire – your company is automatically the author/owner of that code.
• If code is written by an independent contractor, it generally is not work made for hire by default, because software code doesn’t fall under the special categories of works that can be “made for hire” by contractors. You might see a contract call the work “work for hire,” but to truly transfer the rights you should also have an explicit assignment clause. In short, work-for-hire is mostly relevant for employees; for contractors, focus on having them assign the IP to you via the contract.

Q: Our app uses some open-source libraries – do we own that code, and can we commercialize our app freely?

A: You don’t own open-source code written by others, but you are allowed to use it under the terms of its open-source license. Owning it isn’t necessary as long as you comply with the license. You own the original code your team writes that ties everything together. Using open-source is extremely common – indeed, open-source components might be a huge portion of your app’s total code. To commercialize your app, you just need to follow the open-source licenses (which usually is straightforward: often just giving credit or not removing license notices). 

One thing to watch: if any library is under a copyleft license (e.g. GPL), then distributing your app might require you to open-source your code as well. This doesn’t mean you don’t own it, but it does impose sharing requirements. Many business apps avoid strong copyleft components to steer clear of this. If you’re unsure, have a developer or lawyer review your open-source usage. In summary, yes you can commercialize your app – just honor the licenses, and they grant you the rights you need.

Q: Can a developer re-use the code they wrote for my app in other projects, or could they make a clone of my app?

A: If you own the copyright (via contract assignment or employment), you have the exclusive rights to that code. The developer should not reuse significant portions of your proprietary code in other projects without your permission. In practice, developers might reuse generic know-how or even small snippets, but they can’t lift your proprietary codebase and use it elsewhere legally once they’ve assigned it to you. If the developer retained ownership (due to lack of a proper contract), they theoretically could reuse or sell the code, which is another reason you want the IP in your hands. 

Do note that ideas or techniques aren’t protected – so while the exact code is yours, a developer could build a similar app from scratch using the same idea (unless there’s a non-compete or they infringe a patent of yours). To prevent them from making a direct clone, ensure your contract has confidentiality provisions and ideally non-solicitation/non-compete clauses (though enforceability can vary). Reputable agencies won’t sell your code or idea to a competitor – their business relies on trust. But legally, ownership of the code via copyright is what stops unauthorized reuse. So, secure that, and you’re in a strong position.

Q: Should I patent my app or any part of its code?

A: It depends on the nature of your app and your business strategy. Most apps do not have patentable subject matter that is worth the effort – patents are typically for novel inventions or technical processes, not general app concepts. That said, if your app includes a unique algorithm or a technically innovative feature that provides competitive advantage, consulting a patent attorney is wise. For example, if you’ve developed a new type of data encryption, search algorithm, or an innovative user interaction technique, those might be patent-worthy. Keep in mind:

• Patents are expensive and take time (often 2-5 years to issue).
• You’d need to file before disclosing the invention publicly (in the US you have a 1-year grace period after disclosure, but many other countries require filing before any public reveal).
• Even if patented, you’ll have to enforce it against infringers, which can be costly.

So the decision often comes down to resources and how crucial that invention is to protect. Many app startups skip patents and rely on moving fast, trade secrets, and being first to market. Others in fields like fintech or healthcare may file patents because IP is a big part of their company’s value. In summary: it’s optional and case-by-case. Patents don’t affect owning your code (that’s separate – you’ll own your code regardless if you wrote it or had it assigned), but they affect who can copy your ideas. 

If IP is a big part of your competitive edge, consider it in consultation with an expert. Otherwise, focus on protecting your code via copyright (which is simpler) and executing your business. And yes, trademark your app name early on, since that’s relatively easy and can protect your brand – it won’t protect your code, but it will protect the name under which your code runs in the marketplace.