Software Resale and Distribution Rights

Discussion in 'Legal Issues' started by twalters84, Oct 8, 2007.

  1. #1
    Hey there,

    I want to allow freelance programmers to upload software to my website and allow buyers to purchase the software. This software can either be at a fixed cost or be up for auction.

    My questions are about the legalities of this.

    1. What rights do the freelance programmer have to have to upload the software? Is it just resale and distrubution rights or do they need exclusive rights to the software?

    2. How do I know the freelance programmer has these rights. How would I verify that?

    3. If a freelance says that he / she has these rights, but lies about it, how do I protect myself? Would a statement that says I will not be held liable for the actions of the freelance programmer be enough to protect myself? If so, would putting this statement in the terms and conditions section of my website be enough?

    Any information you can provide me with will be greatly appreciated.

    Sincerely,
    Travis Walters
     
    twalters84, Oct 8, 2007 IP
  2. zebulon

    zebulon Well-Known Member

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    #2
    If the software is there's, it will be exclusively theirs. You will have to put in a term of agreement into the contract stating that you have the right to remove it from your network at will, as well, Distrubution via your site/services will include your site/services in the products description.

    Check with your local lawyer and the legal department at your datacenter to ensure you and the 3rd party(s) are in compliance with eachother as well as your states compliance laws (if applicable).

    From my understanding; you are offering these services(to allow resale on your network of 3rd party software). Write a contract and have it binded by a lawyer and have them sign the participation agreement you or your lawyer draft. Look into intangible/tangible ownership as well.

    I hope this helped a little. I am not a lawyer but I have taken many law classes in univ. The best advice anyone can tell you, is that of your lawyers. Shell out the money for the consultation.
     
    zebulon, Oct 9, 2007 IP
    twalters84 likes this.
  3. twalters84

    twalters84 Peon

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    #3
    Hey there,

    Thanks for the response.

    1. Are you sure it is not more involved than this?

    For instance, I have shared rights of the software I just created for my client. I have a signed agreement that states I am allowed to reuse it as long as it is not for another West Michigan Real Estate website.

    As a moderator, I would not allow myself to sell the software on my server, because somebody else could buy it and use it to create a west michigan real estate website. I feel that I would be in violation then.

    So maybe only accepting exclusive rights to the software would be best.

    2. I have a feel this will definately be more complicated than that. Programmers from all around the world will be able to upload software packages. I could have them sign something stating I will not be held responsible if you do not have the full rights to this software.

    However, with US law, could the buyer of the software or the true owner of the software sue me even with this statement?

    For instance, if there was a 3 car accident. Person A crashes into person B and person B crashes into person C. Person C could still sue person B right? And then person B would have to sue person A?

    Is this the same with reselling software even though I am the intermediary?

    Your statements did help a little. I do plan to see a lawyer. I want to be prepared though and have a great list of questions.

    If you can offer anymore advise, that would be great. Or anybody else for that matter :)

    Sincerely,
    Travis Walters
     
    twalters84, Oct 9, 2007 IP
  4. zebulon

    zebulon Well-Known Member

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    #4
    you need to ensure that you are practising due diligence in all sales. meaning; cut the strings which may connect you to a 3rd partys actions, therefore if you are ever in court you can legally and rightfully argue; you are not responsible.

    If the agreement states you can reuse/resell the software without limitation other then the West MI Realestate, then do so. Have the buyer understand that he/she is binded to the agreement and conditions of the sale, of not using the software for another "west michigan real estate" website. yet again due diligence. if they do turn around and contradict the agreement and/or conidtions of the sale, that you have both signed and/or undertook, the software developer may sue them, however, if they are pricks and sue you, what you do is add the buyer who broke the agreement/conditions to the civil suit, so any claims decided through the judge will come from the buyers pocket. (verbal ddiarrhea i know but im trying to put it in understandible terms at best, sorry)

    cover your bases - due diligence. make sure you have the paper work proving that you have had the buyer(s) sign in accordance with an undertaking that the software has some conditions on it.

    i answered this before...unlikely but if they are pricks, just add the buyers name to the civil suit.

    What your lawyer will tell you, is that you only have to make sure you are in accordance with the terms and conditions on the resale. As long as you "make" the effort to ensure that the new buyers of the software understand and undertake the conditions, you have successfully cut and removed the strings which could be used to attach you to the problematic situation. thus, you are no longer deemed responsible.
     
    zebulon, Oct 9, 2007 IP
  5. twalters84

    twalters84 Peon

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    #5
    Hey there,

    So it looks like I can get a few contracts togather, place them on my website, and have the coder and buyer sign them (or click the check boxes) when anybody sells or purchases software.

    Thanks for the help. Enjoy your better reputation, you earned it :)

    Sincerely,
    Travis Walters
     
    twalters84, Oct 9, 2007 IP