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socrateaser
socrateaser, Attorney
Category: Bankruptcy Law
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Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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If a company A contracts for software development with company

Resolved Question:

If a company A contracts for software development with company B, for software at the core of its business, and then company A goes bankrupt without full payment to company B, who owns the development software? What is the status of company B as a creditor?
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 7 years ago.

If the contract is silent about when the right to own the intellectual property transfers to company A, then the right transfers at the time of contract making, and company B's right is only to payment for services rendered. This means that company A would own the copyright in bankruptcy, and company B would be without recourse.

 

If the contract expressly states that ownership rights do not pass until payment is received, then that provision would control and B would retain the copyright.

 

Hope this helps.

 

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