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IP transfer · Web development

IP transfer in web development: what is normal

The client owns the custom code on full payment; the developer keeps pre-existing tools, and third-party/open-source licenses pass through as-is.

Typical range

Custom deliverable code transfers to the client on full payment. The developer retains ownership of pre-existing libraries, tools, and know-how, licensing them to the client for use. Third-party and open-source components keep their own licenses.

Off-market

"Client owns all code, tools, and libraries on creation," which claims the developer's reusable toolkit and open-source code the developer cannot actually assign, and transfers before payment.

One-line fix

"On full payment, Client owns the custom code built for this project. Developer retains pre-existing tools and grants a license to use them. Open-source and third-party components remain under their own licenses."

What we see

Web development has a layered IP reality that a blanket 'client owns everything' clause gets wrong. There is custom code written for this project (fairly the client's on payment), the developer's own reusable libraries and tooling (theirs, licensed to the client), and third-party or open-source code (under licenses no one in the contract can override).

The two things to fix in client-drafted dev contracts are timing and reach. Ownership should transfer on full payment, not 'on creation', so the developer keeps leverage until paid; and the transfer should cover the custom deliverable, not the developer's entire toolkit accumulated over years of other work.

A clause claiming ownership of everything, including open-source components, is not just overreaching, it is often impossible to honor, because the developer cannot assign rights they only license themselves. A clean split (custom code to the client, tools licensed, third-party as-is) is the professional norm.

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