Legal Question in Technology Law in California

Do I have rights to software that I help create even though I have no contract?

I had an idea for software and shared this idea with a friend. We agreed to pursue this venture together as partners yet we never sat down and and spelled it out in a contract ( a mistake on my part). We penciled out the complete application functionality. He had no computer experience and was involved soley for his marketing abilities, so the concept and design was all mine. We brought in a programmer and offered a percentage of the company for him to develop the software. I have now been informed, as the application is complete and the marketing segment of the process is to begin, that my services are no longer needed and that I have no claim to the works as I did no actual programming and the concept was ''shared'' between my partner and I. My portion of the ''company'' has been claimed by my partner and he has ''given'' some of the ''company'' to a web designer (which was to be my duty) to finish the web site. Now, after investing my time and effort in this venture I am out in the cold and I am curious... Since we never had a written agreement, do I have any legal recourse in this matter? I may have proof of my involvement of the design process and witnesses to the fact. How should I proceed legally if it is an option?


Asked on 1/17/01, 1:36 am

3 Answers from Attorneys

Ken Koury Kenneth P. Koury, Esq.

Re: Do I have rights to software that I help create even though I have no contra

You can sue for breach of an oral contract.

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Answered on 2/12/01, 6:50 pm
Stephen Anderson Anderson & Associates - MYBRANDSONLINE

Re: Do I have rights to software that I help create even though I have no contra

Copyright law protects material which is "fixed in a tangible medium of expression."

This applies whether you put a little circle c notice on the material or not.

With that in mind, I would inquire as to whether you had recorded the idea in any way prior to showing it to your "friend". Did you write it down?

If so, what part of the idea, is or can be translated into software.

This question is very difficult to answer in the abstract. . . (what does the software do, how does your idea relate to the writing of software code?)

Secondly, to the extent that you may have hired or participated in the hiring and instruction of this software developer, you may have a claim that anything that he/she writes on your behalf is a "work for hire" - However to be a work for hire, there must exist a WRITTEN contract between you and/or your friend on the one hand - and the writer of the software program on the other.

By now you must know that "mere ideas" are not protectible. Notwithstanding, you may indeed have a claim for breach of an oral contract and/or a cause of action for fraud against your "friend"

A word of caution however, usually, oral contracts are not worth the paper the are written on.. . .

Good luck.

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Answered on 2/12/01, 7:55 pm
Paul McMeans Law Office of Paul E. McMeans

Re: Do I have rights to software that I help create even though I have no contra

California law provides that a contract may be in writing,

oral, or implied by the conduct of the parties. From the information

you provided, it would appear that your relationship

with your co-developers could be established either

as an oral contract or as a contract implied by the parties conduct.

A partnership or joint venture may be formed by such an oral or

implied contract. Under such a theory, you would be entitled

to share in the results of the operation of the partnership or joint venture,

and if the other parties were found to have taken the property of the

partnership or joint venture for themselves, excluding you from the

share in the project that you had been entitled to receive, you would be

entitled to a remedy. You need to consult with a lawyer engaged in business

litigation, preferably one with lots of experience and a high reputation in your

community for good work and for high ethics. It is possible that a properly constructed demand

letter with citation to controlling authorities will cause the other parties,

if they have experience and any real business savvy, to realize that

they are at risk for a major mess and that an arrangement can be achieved to your

satisfaction short of having to actually file a lawsuit. More likely, however, is

the need to commence a lawsuit, and prosecute it through to judgment. Good luck.

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Answered on 2/13/01, 12:46 pm


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