Who Owns the Code When You Hire an App Developer?
Under US copyright law, the person who writes code owns it unless an exception applies. Code written by your employees within their job belongs to your company, but code from an independent contractor or agency generally belongs to them unless a written, signed agreement assigns the copyright to you. Paying the invoice is not enough. Get a clear IP assignment in the contract, plus access to the repositories and accounts. This is general information, not legal advice.
- Copyright starts with the author; for contractors, ownership transfers only through a signed written agreement.
- Custom software usually does not fit the statutory 'work made for hire' categories for commissioned work, so an assignment clause matters.
- Agencies often keep ownership of pre-existing tools and grant you a license to use them inside your app.
- Open-source components stay under their own licenses, which come with obligations you need to follow.
- Ownership on paper means little without access to the source repository, cloud accounts and app store listings.
The Default Rule in US Copyright Law
Software code is protected by copyright as a literary work, and copyright belongs to the author from the moment the code is written. The Copyright Act has an exception called work made for hire, where the employer or commissioning party is treated as the author. It applies in two situations:
- Employees: work prepared by an employee within the scope of their employment belongs to the employer automatically.
- Specially commissioned work: work by a non-employee counts as made for hire only if it falls into one of nine categories listed in the statute (such as a contribution to a collective work, part of an audiovisual work, a translation or a compilation) and both parties sign a written agreement saying so.
Custom app code commissioned from a freelancer or agency usually does not fit neatly into those nine categories. That is why careful contracts do not rely on a "work made for hire" label alone. They also include an assignment: a signed transfer of the copyright to you. Under the Copyright Act, a transfer of copyright ownership is not valid unless it is in writing and signed by the owner.
Independent contractor status is itself a legal question with several factors. If you are unsure whether a developer is an employee or a contractor, ask an attorney.
Contract Terms That Protect You
Ask an attorney to review the agreement, but expect to see these points addressed in plain terms:
- Assignment of rights. All rights in the custom work product (code, designs, documentation) are assigned to your company, often effective on payment.
- Pre-existing materials. The developer keeps ownership of tools, libraries and components they built before your project, and grants you a perpetual, royalty-free license to use, modify and maintain them as part of your app.
- Third-party and open-source components. A list of what is included and under which licenses.
- Subcontractors. Anyone the agency brings in must sign equivalent assignments, so the chain of ownership is complete.
- Delivery and access. Source code lives in a repository you control, with credentials and documentation handed over on request and at the end of the engagement.
- Confidentiality and data. Rules for handling your business and customer data, including return or deletion when the work ends.
Watch for clauses that make ownership conditional on terms you might dispute, or that license the whole app to you instead of assigning it. A license may be fine for some products, but you should know which one you are signing.
Open Source and Licensed Components
Almost every modern app uses open-source libraries. You do not own them, and nobody expects you to. You use them under their licenses. Permissive licenses such as MIT, BSD and Apache 2.0 mainly require keeping copyright and license notices. Copyleft licenses such as the GPL family can require you to release source code if you distribute software that incorporates them, which matters for some products. Ask your developer for a software bill of materials or a license report, especially before raising money or selling the business, when buyers and investors check this closely.
Ownership in Practice: Accounts and Access
Legal ownership does little good if you cannot get to the code. Set things up so your company holds the keys from day one:
- The source code repository (GitHub, GitLab, Bitbucket) is in your organization's account, with the developer added as a collaborator.
- The Apple Developer and Google Play accounts are enrolled under your business, not the developer's. Moving a published app between accounts is possible but adds work.
- Cloud hosting, domains, databases and third-party services (payments, email, maps) are billed to and owned by you.
- You have current documentation: how to build, deploy and configure the app.
When these are in place, changing developers is an inconvenience rather than a crisis. The comparison of agency, freelancer and in-house teams covers how ownership risk differs across hiring models.
Questions to Ask Before You Sign
- Will all custom code and designs be assigned to my company, and when?
- What pre-existing or proprietary components will you use, and what license do I get to them?
- Who else will work on the project, and have they signed IP assignments?
- Which accounts will be in my name from the start?
- What will you hand over if we stop working together?
A reputable firm will answer these without hesitation. For more on vetting firms, see how to choose an app development company.
Sources and Further Reading
We link to the primary documentation so you can verify the details yourself.
- Circular 30: Works Made for Hire, U.S. Copyright Office
- Copyright Law of the United States, Chapter 1 (Section 101 definitions), U.S. Copyright Office
- Copyright Law of the United States, Chapter 2 (Ownership and Transfer), U.S. Copyright Office
- Circular 61: Copyright Registration of Computer Programs, U.S. Copyright Office
- OSI Approved Licenses, Open Source Initiative
Related Questions
Is a work-for-hire clause enough to own my app's code?
Often not by itself. For non-employees, the statutory work made for hire rule only covers nine categories of commissioned work, and custom software usually is not clearly one of them. Contracts typically pair the work-for-hire language with an explicit assignment of copyright as a backup. Have an attorney confirm the wording.
Can a developer reuse my app's code for other clients?
If you own the custom code through an assignment, they generally cannot reuse it without your permission. They can usually reuse their own pre-existing tools and general know-how. Spell out what is yours, what is theirs and any confidentiality obligations in the contract.
Do I need to register my app's copyright?
Copyright exists without registration, but in the US registration is generally required before you can sue for infringement of a US work, and timely registration affects the remedies available. The Copyright Office explains how to register computer programs, including options for protecting trade secrets in the deposit.
What if my old developer will not hand over the code?
Review your contract for ownership and delivery terms, then make a written request. If accounts and repositories were in their name, this can become a legal dispute, so involve an attorney early. Going forward, keep repositories and store accounts in your company's name.