Question about certain rights of software/source code (master, resell, private label)

Discussion in 'Legal Issues' started by digitalpoint50, Aug 29, 2008.

  1. #1
    Hello, thanks for taking the time to read my thread. I recently downloaded some of these 'rights' on another web site. I was just wondering some things about....

    Private Label Rights
    Master Resell Rights
    Full Master Resale Rights
    Full Rights
    Full Resale Rights
    Full MASTER Resale & Rebranding Rights
    Non-Transferable Resale Rights
    Resell Rights
    FULL SOURCE CODE RIGHTS

    Are some of those the same but just different way of saying it? like the "Full Resale rights" compared to "Resell Rights"?

    If we had these certain rights do we need proof of anything.

    What do we need if something went wrong and orignal owner was trying to gain restitution from it.

    Thanks in advance I would be extremely greatful for any comments or tips or any feedback in general. Thanks again

    -chrisjones
     
    digitalpoint50, Aug 29, 2008 IP
  2. jigordon

    jigordon Peon

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    Chris:

    First, some background. Software is licensed as a result of the copyright laws in most countries. There are six specific rights granted to the creator of a work protected by copyright. They can be parsed and given/sold/licensed to anyone else in virtually any combination you can possibly imagine. They're severable as well, so you can give one but not the other five, and so on. None of them are exactly what you say you were granted.

    But what you really get when you typically license software is the right to 1 copy and the right to USE that 1 copy. The software license "grants" you these rights. So what you want is a very clear license that lists the specific things you can do with the software you have.

    In looking through the list of things you were provided, I would say that you've really got 3 main things:

    1. Right to Resell the "Master" (which I'm guessing is the object code).
    2. Right to private-label the software
    3. Right to use the source code.

    Many of the others are unnecessary redundancies. And I would say a few are not clear.

    So I would normally suggest that you have a written and signed contract that states that you have a "non-transferable right to private-label, copy and license" the object code for xyz product. You would then also want a "non-transferable right to modify (for the purposes of private-labeling) and recompile" the source code for xyz product.

    You then want a clear explanation of the cost of this license - whether it's a one-time fee, or based on your outbound licensing activity (it looks from your original post like you expected a one-time fee without any future royalty payments).

    But if you're also needing to USE the product, you'd need to add that right into the list. Oh, and what about updates/upgrades/modifications that are in excess of private-labeling. Do you want/need the ability to modify the source code in other ways? If so, you'll need to take out the "for the purposes" language.

    Oh, and how about support? Is the company/individual that provided you the source going to support the product once licensed?

    Lastly, please make sure you understand the distinction between sale and license. In all of the "rights" you listed, they appear to be about "sales" - but you can really only truly SELL a piece of intellectual property once unless you've retained a license to use and resell it yourself.

    In other words, this type of resale arrangement gets complicated in a hurry and I would look for a lawyer or contract negotiator to help you make sure that you're not going to get yourself into trouble.

    Good luck!

    ~Jeff
     
    jigordon, Aug 31, 2008 IP