Quick answer
In UK law the creator of software generally owns the copyright unless it is assigned to you in writing. If you commission software, make sure your contract assigns ownership of the code and related IP to you, and that you receive the source code, credentials and documentation at handover.
The default rule that surprises people
In the UK, copyright in software generally belongs first to whoever created it. If an employee writes code as part of their job, the employer usually owns it. If you commission an outside agency or freelancer, the contractor typically owns the code unless the contract assigns it to you in writing. Many buyers assume payment transfers ownership. It does not, unless the agreement says so.
This is general information, not legal advice. For specifics, see the UK Intellectual Property Office and take advice on your contract.
What to insist on in the contract
- A clear assignment of copyright and related IP in the deliverables to you, effective on payment
- Delivery of the full source code, build scripts and documentation
- Ownership of your data and of accounts, domains and hosting credentials
- A list of third-party and open-source components and their licences
- No hidden lock-in: no proprietary runtime you cannot run without the supplier
Open source and third-party licences
Almost all modern software includes open-source libraries. That is normal and healthy, but each library has a licence with its own rules. A good supplier documents what is used and avoids licences that conflict with your plans, for example if you intend to sell the software as a product.
Handover checklist
At the end of a project you should be able to run, change and host the software without the supplier. Check you have the following.
- Source code repository access transferred to you
- Production and staging credentials, held by you
- Infrastructure configuration (for example infrastructure-as-code)
- Architecture and set-up documentation
- A walkthrough of deployment and backups
Three scenarios
- Employee writes the code: the employer normally owns it.
- Agency or freelancer writes it under a contract with an IP assignment: you own it.
- Agency or freelancer writes it with no assignment: they usually keep the copyright and you may only hold a licence.
If the relationship ends
Ownership is tested when you part ways. If you hold the repository, credentials and documentation, you can hire someone else the next day. If you do not, you may be dependent on the supplier or forced to rebuild. This is why handover is part of the plan from the start, not an afterthought at the end of the project.
How LOLCorp handles it
Our clients own all code and IP at the end of the project. There is no lock-in, so you can take the system in-house at any time or keep us on through a maintenance or managed plan. When you are comparing suppliers, make this one of your first questions, as in our checklist for choosing a development company. The wider context is in the complete guide to custom software development.
Hiring for a website? See how to hire a website developer.
When agreeing commercial terms, also read fixed price vs time and materials and follow the development process through to handover.
Frequently asked questions
If I pay for the software, don’t I own it?
Not automatically. Without a written assignment, the creator usually keeps the copyright and you may only have a licence to use the software.
What is source code escrow?
Escrow means a neutral third party holds the code so you can access it if the supplier fails. It matters most when you do not receive the code directly.
Can I change supplier later?
Yes, if you own the code, hold the credentials and have documentation. That is why handover matters.
Sources and further reading
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Get an instant quoteWritten by the LOLCorp engineering team from our experience delivering custom software for UK businesses. This is general guidance, not legal or financial advice.