Tuesday, May 18, 2010

Website development contracts: The “handshake deal” can cost you.


Under U.S. copyright laws, the developer of a website owns the intellectual property and copyrightable elements of the website. The copyrightable elements of a website include the text, graphics, scripts, code, and the “look and feel.” Unless there is a contract to the contrary, the website developer’s client only obtains a non-exclusive license to utilize the intellectual property that it paid to develop. Even the copyright notice on the client’s website applies only to the contents that were developed by the client and not to the contents that were created by the developer.
This means that under the default scenario, your business’ website developer can create a very similar website for your competitors. Furthermore, at the end of your business’ relationship with the website developer, the website developer can also demand that you stop using its intellectual property and copyrightable contents. If you refuse, you may find yourself as the defendant in a copyright infringement lawsuit. Even worse, your website developer may refuse to facilitate your business’ transition to a new developer. If your business depends on its website, it may never recover from this website hijacking scheme commonly applied by some unscrupulous website developers.
You should be aware of the risks associated with the absence of a carefully drafted website development agreement and should consult with an Internet Attorney before hiring others to develop your website.

source:http://cyberlawyerblog.com/2007/07/22/website-development-contracts-the-handshake-deal-can-cost-you.aspx

2 comments:

  1. personally i believe that even though nowadays, internet contract rapidly is growing due to its benefical issues ,it has some risk and cost that we should be consider about that.doing so, You should be aware of the risks associated with the absence of a carefully drafted website development agreement and should consult with an Internet Attorney before hiring others to develop your website.

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  2. Oh! That was an interesting post, including constructive points about the current legal issues in raegard to website development contracts.
    I totally agree with Laya. The conncerns and attentions in utilizing the Intrenet for making the online contracts is an important issue. But my persoanl point is that, there's a need for revising the related statute in regard to this issue to make the "website development contracts" fair enough that would satisfy concerns and iterests of both developers and business owners, no matter it's done and agreed online or offline.

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