If I paid for the software, do I own it?

Not automatically. In South Africa ownership of commissioned software passes by a signed, written assignment. Check that your agreement has one.

What does FiftyKnots keep?

Its platform and the tools it builds with. If your product depends on one of its components, you get a licence to use it as part of your product.

Founder questions

Who owns the code when a venture studio or agency builds my product?

Whoever the written agreement says owns it. In South Africa, copyright in software made by an outside developer generally stays with the developer unless it is assigned to you in a signed, written agreement, so paying for a build does not by itself make you the owner. At FiftyKnots, you own 100% of your venture's code when you pay for the build in full.

Why paying is not the same as owning

Under the Copyright Act, the author of a computer program is the person who controlled its making. An employer owns what its employees make at work, but a business that commissions an outside developer does not automatically own the code. Ownership passes by a written assignment, signed by the developer.

This is general information, not legal advice. Have an attorney check any agreement you rely on.

What to check in any build agreement

A clause that assigns the code and other work to your company, and when it does so (for example, on payment).
What the developer keeps: its own tools, libraries and platform, and the licence you get to any of them your product depends on.
Third-party and open-source software in the product, and their licences.
Handover: source code, credentials and documents, and when you receive them.

How it works at FiftyKnots

Once a phase is paid for, what it produced for your venture is yours, to take anywhere.
When you pay for the build in full, you own 100% of your venture's code.
FiftyKnots keeps its platform and the tools it builds with, and licenses to you any of its components your product depends on.
In the rare build-for-equity case, the code passes to your company milestone by milestone as the work is accepted.

Questions founders ask

Who owns the code when a venture studio builds my product?: Whoever the written agreement says. Copyright in software made by an outside developer generally stays with the developer unless it is assigned to you in writing. At FiftyKnots, you own 100% of your venture's code when you pay for the build in full.
If I paid for the software, do I own it?: Not automatically. In South Africa ownership of commissioned software passes by a signed, written assignment. Check that your agreement has one.
What does FiftyKnots keep?: Its platform and the tools it builds with. If your product depends on one of its components, you get a licence to use it as part of your product.