Who owns the custom software you paid for?
Who owns custom software source code: what Croatian copyright law presumes, what the contract must cover, and the three questions to ask before you sign.
After a custom software project ends, one question rarely gets asked in time: whose system is it, really? Proposals settle it in three words - “you own it” - and almost never explain what those words cover. Ownership on paper and control in practice are two different things.
What the law presumes
Under Croatia’s Copyright and Related Rights Act, for a work created to order the client is presumed to acquire exclusive economic rights of exploitation, in the content and scope needed to carry out its business activity, unless the contract says otherwise.
That is more than most buyers expect. But a right to use is not the same as source code in your hands, the author’s moral rights stay with the author, and a contract can override the presumption. The contract is what actually decides.
Six things “you own it” has to include
- The repository with full commit history, on your company’s account - not an archive emailed at the end.
- A written transfer of rights, expressly including the right to modify, so someone else may keep developing the code.
- Hosting, domain and platform accounts in your company’s name; contractors get access that can be revoked.
- A list of open-source components and their licences. Nobody owns those, which is entirely normal - but you need to know what is inside.
- Runbook documentation: how the system is deployed, where the keys live, how a new version ships.
- An agreed handover window and contents if the relationship ends.
The same list carries maintenance after launch - without access there is no fix.
When ownership is the wrong question
If you are buying an off-the-shelf product or SaaS, the code will never be yours, and that is fine. Ask a different question instead: can you export your own data in an open format, at any time, without going through the vendor. Custom software vs SaaS works through that decision.
The same applies to a small customisation of someone else’s tool. Insist on ownership where you are building what is core to your business.
Three questions before you sign
- Whose account hosts the repository during the build, and whose after handover?
- Are rights transferred or licensed - and may a third party modify the code?
- How long does handover take, and what exactly do we receive?
A calm, specific answer is a good sign. Discomfort around these questions tells you more than any reference will. The rest of the criteria are in how to choose a development agency.
Note: this article is informational and is not legal advice. Rights and obligations depend on your contract - have the terms reviewed by a lawyer before signing.
Frequently Asked Questions
Does “you own it” mean we get the source code? Not necessarily. It is a claim about rights, not about delivery. Ask for source code and repository handover explicitly in the contract.
Can we hire another company after handover? Yes, if the transfer includes the right to modify and you hold the code, documentation and access. Without those, switching partners is expensive.
Who owns the open-source components in our system? Neither of us - they are used under their own licences. Ask for a licence inventory at handover.
Does ownership cost more? Only if you negotiate it afterwards. Agreed at the start, it does not change the build price.
What if the agency stops trading? That is exactly why the repository and infrastructure accounts should be in your name from day one.
Related Articles
- How to choose a development agency
- What is custom software development?
- Software maintenance and support cost
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