Question for the Attornies...Particularly IP

I can't help answer your question but this is going to be interesting! I hope someone answers you.

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I don't know what kind of company would be clueless enough not to apply for a copyright in this situation, but absent one, they don't have much of a claim at all.

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Thanks for the info...

I think the key point in this case is the transaction. The company didn't buy "software" from the contractor, they bought programming services. The resultant code is specific to this application and has no commercial market, the functional design and specification was done by the company. The contractor is attempting to lock the customer in for any modifications or changes. (which in this case is really short-sighted since the client has about another large contract coming up)

As an example, say the company makes gizmos and needs a program to track the machine operator and the serial number. Nothing exists on the commercial market, so they call Bob's Nerds and request a programmer for 40 hours to assist them in writing an application to meet the requirement. Let's say a year later, the company adds 10 machines and needs to modify the code to add machine ID to the records. However, the Nerds password protected the source file, and claims the source is their property.

I realize the client was ignorant by not specifying terms and conditions. I would think this would be similar to a magazine contracting a free-lance writer to develop content for a piece they're doing. Would the writer hold the rights to the piece, or the magazine? (again, absent any specific agreement)

Have lawyers been involved yet?

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Well what is in the contract? Normally this is spelled out clearly.

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it was just a simple hourly services purchase order. I came in to "audit" the system and situation after a manager became suspicious of several high priced service calls.