Collaborative IP rights HK: Who owns the intellectual property created when working with another company to develop a mobile app?
Ownership of intellectual property (IP) created during a joint development project depends on the agreement between the parties. Without a clear contract, IP rights are typically shared or governed by default legal rules.
Understanding IP Rights in Collaborative Mobile App Development
In Hong Kong, the default position is that each party owns the IP they create unless they agree otherwise. When two or more companies collaborate on developing a mobile app, the following factors are important:
- Contribution: Who contributed what?
- Ownership: Is the IP jointly owned or assigned?
- Usage rights: How can each party use the IP?
How to Clarify IP Ownership in a Collaboration: SME IP protection Hong Kong
To avoid disputes, consider these steps:
- Draft a Collaboration Agreement:
- Clearly specify each party’s rights and obligations.
- Define ownership of existing IP and jointly developed IP.
- Include clauses on licensing, licensing fees, and future use.
- Use a Joint Ownership Agreement:
- If both parties will own the IP jointly, agree on how to manage, exploit, and protect it.
- Establish procedures for licensing or transferring rights in the future.
- Assign or Licence IP:
- One party can assign the IP rights to the other through a formal agreement.
- Or, they can licence the use of the IP without transferring ownership.
Why Is Proper Agreement Important?
Clear contractual arrangements ensure:
- You retain control over the app and related IP.
- You can commercialise or licence the app without legal conflicts.
- You prevent future disputes over ownership or usage rights.
For more insights on drafting collaboration and licensing agreements, see our guide on Effective IP Contracts in Hong Kong.
Final Advice
Always document your IP rights clearly when working with another company. A well-drafted agreement is key to protecting your interests and ensuring smooth collaboration.
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