Legal Question in Intellectual Property in California

Re: Team hired to develop software but layed off - who owns software?

If the authored software code is original, your team of three is presumptively vested with copyright ownership for the software program developed. However, it may be the case, depending on the nature of your "independent contractor" relationship, and the terms of your written contract with the hiring party that the software you provided vested title in the copyright to the hiring party under the work for hire doctrine. For instance, it may be the case that you three were de facto employees, determined under a factual analysis of certain factors, which would render the software program a "work for hire" belonging to the hiring party. Alternatively, your written contract with the hiring party may have created a "work for hire" relationship relative to the software depending on its stated terms.

You may want to review the Copyright Act at 17 U.S.C. section 101 ("A 'work made for hire' is") to get a better flavor of this issue.

Notwithstanding this reference, you really should consult a qualified intellectual property attorney to discuss your specific facts to determine your rights and obligations. I am available to discuss this matter with you if you like.