Software development contract collaboration agreement review

Law firm Veat recently reviewed a detailed collaboration contract for software development with the Korean Football Association at the request of game company A (hereinafter referred to as "the client").

Software development highly values the creativity and technical know-how of developers. Therefore, the source code of developed software includes intellectual property in various forms, such as ideas, algorithms, and designs. Review of development contracts is essential to protect the legal rights of these creations, and if there is no clear agreement between the parties to the development contract, the developer may face a situation where they cannot take any action even if their creation is used or copied without permission.

Law firm Veat reviewed a contract for the client to develop and operate new services based on the IP (Intellectual Property) provided by the Korean Football Association, focusing on 1) to whom the intellectual property rights of the service developed by the client belong, 2) how to handle the intellectual property rights of the service when the agreement terminates, and 3) how to distribute the service operating profits.

This review process plays an important role in preventing potential disputes that may arise during collaboration and protecting the rights and interests of both parties.

First, with respect to the assignment of intellectual property rights for the developed service, Law firm Veat considered it important to secure the client’s right to freely use intellectual property they already held, regardless of the joint venture project. In other words, the detailed clauses of the contract were specified to ensure that the client would not be prevented from using their existing technology or know-how as a result of the joint venture.

Second, with respect to the handling of the intellectual property rights of the developed service after the termination of the agreement, Law firm Veat ensured that the contract clearly stipulated the method for handling intellectual property rights upon termination, so that the rights and obligations of both parties would be clearly distinguished. It is important to clearly state this in the contract, as disputes are likely to arise if the intellectual property rights related to the developed software are not clearly resolved after the contract terminates.

Third, since this agreement involves the Korean Football Association providing IP and the company developing and operating the service, the distribution of service revenue must be fair and clear. Law firm Veat explored ways for both parties to maximize mutual benefit and clarified the ratio and method of revenue distribution in the contract to prevent future disputes over revenue distribution.

Law firm Veat reviewed this software development contract from the above perspectives, providing practical legal advice to the client through attorneys with a deep understanding of the software development process and experience in related cases. Law firm Veat will continue to quickly and accurately grasp the client’s requirements and derive optimal solutions, fulfilling its role as a reliable legal partner for startups and IT companies.

Law firm Veat provides various IT and intellectual property legal consultations, and is recognized for its expertise and achievements in the industry, having recorded 2nd place in the Bloomberg League Table for capital markets legal advisory performance.

The Law firm Veat IT Legal Advisory Team draws upon its experience advising numerous clients on the drafting and review of various IT-related contracts, software outsourcing contracts, development contracts, and copyright issues to guide clients towards the desired direction regarding copyright issues and to draft and review contracts from the client's perspective so that they can freely use software.

If you have inquiries regarding software development contracts, business alliances, or intellectual property issues, please contact Law firm Veat at any time.

Thank you.
Law firm Veat