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Software Development Agreements

Is Source Code delivery mandatory?

Yes, if you want full control over the software and the ability to update it with another developer in the future.

What is a standard warranty period?

It depends on the agreement. Industry standard is 3 to 12 months for fixing bugs free of charge after delivery.

Who owns the design?

Without a written assignment clause, the design remains with the designer. Explicit transfer of rights is necessary.

What if the developer disappears?

If the contract ensures regular code uploads to your repository (e.g., GitHub), you can continue work with a new team.

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Software Development Agreements form the legal foundation for any IT project, whether it's a mobile app, web platform, or corporate system. This agreement regulates the relationship between the client and the developer (or development company), clearly defining the technical assignment, performance milestones, remuneration, and, most importantly, the transfer of intellectual property rights. Amid the IT sector boom in Georgia, we often see situations where parties rely on verbal agreements or brief invoices, leading to serious problems later.

Legal.ge offers professional drafting and auditing of Software Development Agreements. Our goal is to protect your investment and ensure that the created product remains fully under your ownership, while the provider receives guaranteed payment for the work performed.

What does a Development Agreement cover?

A well-drafted contract should cover the following critical issues:

  • Technical Specifications (Specs): Detailed description of product functionality as an annex to rule out disputes over "what was supposed to be done."
  • Milestones & Acceptance: Breaking the project into stages (e.g., design, beta, release) and testing procedures for each (User Acceptance Testing - UAT).
  • IP Rights Transfer: Using the "Work for Hire" principle to ensure exclusive rights to code, design, and documentation transfer to the client.
  • Warranty and Support: The developer's obligation to fix bugs free of charge for a certain period after project delivery.
  • Source Code Delivery: Obligation to deliver the source code along with the compiled program.
  • Confidentiality: Protecting the client's trade secrets and ideas.

Common Real-World Scenarios

Risks we mitigate with contracts:

  • Failure to Transfer Rights: The client paid, but the developer claims ownership of the code and demands additional licensing fees.
  • Missed Deadlines: A 3-month project drags on for a year. The contract must specify penalties for delays.
  • Poor Quality Code: The software works, but the code is so poorly written (Spaghetti code) that it cannot be updated.
  • Third-Party Components: The developer used Open Source libraries that restrict the commercial use of the software.

Legal Framework: Work Contract and IP

Software creation is regulated by the Civil Code of Georgia provisions on work contracts and the Law on Copyright and Related Rights. The law establishes that computer programs are protected as literary works. To transfer economic rights, a written agreement explicitly stating the assignment of rights is required.

Step-by-Step Service Process

  1. Negotiation: Understanding project specifics (Waterfall vs Agile).
  2. Structuring: Defining payment models (Fixed vs Hourly) and milestones.
  3. Drafting: Preparing the agreement with IP protection mechanisms.
  4. Signing: Confirmation of terms by parties.

Why choose a specialist on Legal.ge?

Software development is an expensive and risky process. Agreements made without a lawyer often end in lost money and time. Experts at Legal.ge ensure your contract is technically sound and legally robust.

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