How much is source code worth?

[ettienne]

I have a dilemma.
Back in 1998 I worked for a software company and wrote an application for a client. The software company has gone out of business and the source code cannot be located by the client. Actually all the source code was purchased by another software company, but they cannot find my application's source code.
The user (not my client at this stage) needs some updates done to bring the application up to date.
I have the source code and the user contacted me to update the application. I do not want to do any further work on the application since I do not want to get involved in the support issues.
So my options are to:
1. Give the source code to the user or software company
2. Sell the source code to the user or software company
3. Do neither
I am inclined to sell the source code for a reasonable fee, but what would a reasonable fee be?
The original project took 600 hours, I was the only person who worked on the project.

 

[CajunCenturion]

What rights to you have to even have the source code, much less sell or distribute it?

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[ettienne]

Every right, I am the designer and author of the software. I am in possession of the source code because I made backups of my work. I never signed any contracts or documents to release ownership or copyright of the source code, either to my previous employer (who no longer exists) or to the end user.
So where does that leave me from a legal point of view?

 

[MarcusStringer]

I don't sign anything over to my gardener either...but that doesn't mean he can come and take my garden because he created it. He got payed for the work he did, so that's that. If took plants home with him (made backups) then I would expect him to return them, because they don't belong to him.

Marcus

http://www.midlandtypesetters.com.au

 

[dgillz]

Cajun and Marcus are correct, you have no right to sell this. Marcus' analogy was almost perfect.

You have been paid for this work by an employer. The results of this belong to your employer. Even if the employer goes out of business, the right to this work will end up in a BK court, and will undoubtedly be sold or awarded to someone if valuable enough.

The skills you possess to create such a work, of course, are not owned by anyone other than yourself, and you are free to recreate the work using those skills.

I would run this by an attorney if you can.

Software Sales, Training, Implementation and Support for Macola, eSynergy, and Crystal Reports

http://www.gainfocus.biz

"What version of URGENT!!! are you using?

 

[dyarwood]

Personally I agree with CC and Marcus as well. You have no right to have a copy of the source code let alone sell it. If the company that went out of business had this source code was purchased by another company I would personally approach them with the view of giving them the source code and explaining that the client wanted changes and contacted you directly and you discovered you had a back up but as you don't own the code thought that I would be better that they have the code so they can support the application but that you are open to performing the changes at as a contractor. Surely that would make sure that there were no legal problems.

 

[CajunCenturion]

I would strongly suggest that you contact an attorney before making any moves. By default, ownership and copyright rests with the person or entity who paid to have the work done. If I pay an artist to paint a picture, then I own the painting because I paid for it. The artist created it, but doesn't own it.

Your employer paid you to create the software, therefore they own it. As dgillz said, the intellectual property is yours and always will be, but the actual source code and copyright belongs to your employer, or more likely in this case, the other software company that purchased the source code.

Please get professional legal advice.


--------------
Good Luck
To get the most from your Tek-Tips experience, please read
FAQ181-2886
As a circle of light increases so does the circumference of darkness around it. - Albert Einstein

 

[ettienne]

Points taken, thank you all.

 

[Welshbird]

I'm not sure that IP is yours either to be honest, although that would depend on your previous contract when the code was written.

My company own the IP for anything I write during office hours.

Fee

The question should be [red]Is it worth trying to do?[/red] not [blue] Can it be done?[/blue]

 

[ettienne]

I took some legal advice and decided to do nothing. I responded to the end user that I do not have the source code. I should not have the source code, therefore I do not.

 

[dgillz]

The technical knowledge to create a program to do what the program did is not IP. The actual source code is IP. The employer/former employer has no claim to your knowledge or skills, but they do have a claim to the IP (source code) that was developed under their watch.

I think you did the right thing.


Software Sales, Training, Implementation and Support for Macola, eSynergy, and Crystal Reports

http://www.gainfocus.biz

"What version of URGENT!!! are you using?