HN Explorer

Ask HN: Can IP be shared on a custom software project?

2 points by jharrison ↗ HN
I'm embarking on a custom software project for an arts organization. The project is a CRM at the heart but ticketing (selling tickets) is a major component. There are not many players in the space and none that are starting from the CRM at the center, and working out.

Although neither organization, mine or the client, has the resources to market this as a product they are requesting some form of IP on the product. I'm trying to come up with a way that we both benefit, regardless of who owns the IP, in case we sell more than one.

I've already considered:

* Some form of exclusive distribution agreement * A commission arrangement * Forgetting about IP and just doing the job

I would love to hear what other suggestions you have for such a situation.

5 comments

[ 3.6 ms ] story [ 13.5 ms ] thread
noodle
i think the "right" answer kind of depends on their motivation for wanting IP. you know why they're asking for it?
jharrison
That's a great question. I guess I just assumed they didn't want to be left out if the project became a product and made some money. They're a non-profit and any additional revenue would be a huge benefit.
noodle
i think this is really the question to ask to them. splitting IP is a means, not an end.
jmount
In a lot of jurisdictions (California for instance) if you don't have any IP agreement then you are likely producing a "work for hire" that would mean the client owns everything (and you own nothing). So if you want to retain some ownership you will likely have to work out some (could be simple) IP agreement.
jacquesm
You can go several ways on this:

  - work for hire (you sign over your rights)

  - give them a license, a head start and a discount (you have the rights)

  - make it a co-development and give them a stake in the
    future proceeds (you create some vehicle that holds the
    rights)
The difference between those should be reflected in the price, and that's how you can control the situation to your advantage.

If I were in that boat I'd offer only two payment options, one that looks like they'll have to go and find a second mortgage on their building and another one that is very affordable indeed but gives you the right to sell the solution to others with the exception of their direct competitors in that locality, and only after some time has passed (say 3 months, 6 months or a year).

Having a minority partner in a project like that that has a different core business is a recipe for trouble.