An international software copyright should not, however, be confused with a patent. Copyrights provide creators with the ability to prevent others from directly copying the software code. A patent can actually limit the use of the software. Because of this, patents are a hotly debated topic when it comes to software.

The biggest thing to know about international software copyright is that your code is essentially protected the moment you create it. This is, unless you have some kind of contract through your employer that all code you create belongs to them.

The problem many companies face to enforce software copyright is that computers are not permanent fixtures in a company. Computers are disposable hardware. Because technology keeps evolving, software needs to be updated when new computers are purchased. Rather than purchasing new copies of software when the computers are replaced, companies are notorious for reusing old copies of the software. They are also famous for replacing 10 computers with the software installed with 40 new computers and installing the 10 copies of the software on all 40 computers. This is breaking software copyright.

There are no major differences between traditional policies for American copyright and international software copyright which make legal issues, troubles, and woes that much easier to deal with. By having a unified international front there are ramifications and legal actions that can be taken around the world without going through a great deal of international red tape. If you think dealing with the American government is bad, you should see how much fun it is to deal with the American government and another government for a legal action.

The agreement between nations for international software copyright is probably one of the soundest possible decisions that can be made as military secrets of all governments have some degree of software to keep them operating. While it isn’t quite as simplistic as stealing a computer program to unlock the defense secrets of a nation, having access to certain source codes could be problematic in the absolute best-case scenario. Keeping secrets isn’t the only thing that makes this agreement so valuable, it is however, one of the most vital.

Perhaps one of the greatest things to protect and honor software copyright is the peace of mind that is available to software developers in America and other technologically advanced countries. Their source code won’t be allowed to be stolen and used against them at a later date by someone in a developing nation with cheap labor and other overhead costs that American corporations simply cannot compete with. This could be devastating to the economies of technological societies if it were allowed to happen. The agreement for an international software copyright prevents that from being allowed to occur.

10. Failure to register a federal copyright for company-developed software

Your company has spent months, and maybe years developing the next-big-thing. You’re out there licensing it to customers, fighting off competitors, and trying to maximize your revenues. What would you do if a customer was misusing your software? What if a competitor was copying parts of it to use in its product? There are various ways to respond to these problems, but one of the easiest to way to strengthen your claims is to register a copyright for the software with the United States Copyright Office. Registration provides you with an enhanced ability to have a court prevent infringing use of your software, and a greater amount of damages that are recoverable. The best part is that registration is relatively easy and inexpensive.

9. Licensing technology too broadly

So you’ve landed that big deal with that big customer. You’ve carefully priced the deal based upon your expectations of how the customer is going to use your technology – by a specific group within the customer’s large organization. You’re hoping that the success of this deal will lead to a greater adoption of your technology within the rest of the company, and ultimately more revenue for you. Unfortunately, you later learn that this one group is sharing your technology throughout the rest of the company, with no additional license fees to you, and there’s nothing you can do about it. Why? By failing to carefully and narrowly draw up the license grant in your agreement, you’ve unwittingly granted the entire company the rights to use your technology, and you’ve left a pile of cash on the table.

8. Failure to provide detailed support and maintenance policies

Too often, once a company’s technology is ready to be licensed, determining how to support the technology becomes an afterthought. General and non-descriptive obligations like “providing telephone and email support” and “providing updates” are invitations for disagreements and missed expectations. When is phone support being offered? How quickly will you respond to problems? What is considered and update and what is a new product for which you would charge the customer separately? Many times, you need your customer to provide you with certain information about the problem before you can diagnose and fix it. Set the appropriate expectations in your support and maintenance policies and avoid these issues in the future.

7. Not contracting customers to recurring support fees

Customers want and expect that you will be there to support your product, assist with problems, and provide them updates when you add features or fix bugs. Customers also expect that you will regularly charge them for these services, so why do so many technology vendors sell a product to a customer and fail to structure regular and recurring support fees? In general, a technology vendor’s highest profit margins are realized through a support fee stream, and not in the upfront license charge.

6. Inadequate non-disclosure and non-compete agreements with employees and contractors

The technology business is one of the most competitive industries in the market. Why take a chance losing your competitive advantage by not ensuring that your intellectual property, customer lists, trade secrets, and other sensitive information are properly protected through appropriate agreements with your employees, contractors, and vendors? Finding and using some form agreement that you saw floating around on the Internet somewhere may actually make matters worse if you don’t fully understand the terms. Moreover, simple steps can be taken to ensure that anything developed by your employees is, and remains, your company’s property.

5. Giving away intellectual property ownership too liberally

Many technology companies develop customized technology for their customers, or make customized modifications to their existing technology on behalf of a particular customer. And most customers argue that if they’re paying for it, they want to own it. But giving away your company’s intellectual property in these instances can prevent you from reusing it for other customers – effectively shutting down a potential source of revenue in the future. And many times, your customers may not need to actually “own” the developments – a license right can often do the trick.

4. Using overly broad or subjective acceptance testing

It is not uncommon or unreasonable for customers to want to “kick the tires” of your technology before they pay for it. Problems arise when the customer has an unreasonable expectation of what the technology is supposed to achieve, and either want to withhold payment, or force you to provide extra services to meet that unreasonable expectation. This especially manifests itself when a customer includes acceptance testing language in a contract which is not tied to objective and realistic standards. Although it can be a laborious effort, taking the time to objectify these standards with the customer in the contract can save you significant time down the road, and get you paid faster.

3. Offering liberal source code escrow release conditions

For software developers, you know that your source code is the “crown jewels” of your business. It is the core of your technology, representing months or years of your blood, sweat, and tears. Yet many software companies are willing to give it away, for free, to their customers. How? By entering into a source code escrow agreement with a customer and allowing it to be released to them in situations where the code still holds value for you. Many customers will demand the source code be released to them if you stop supporting the software, but the intellectual property in the code may still be used in your other products or technology, effectively giving your customer the tools it needs to duplicate your technology. Creating very narrow and specific source code release conditions can minimize this impact.

2. Undervaluing technology

What is your technology worth? It’s a difficult question, and value can be measured and determined in many ways. Many new technology companies feel compelled to undercharge for their technology in an effort to break into the market. Although there is certainly some merit in that, I see vendors consistently undervaluing what their technology is worth, leaving significant revenue on the table. Understanding the impact and loss to the customer if they DON’T license your technology is the first key to pricing your product. Plus, under-pricing your product can create an impression that the technology is “cheap” – not a label that will build a positive reputation of your company in the long run.

1. Using a form license and/or services agreement that doesn’t fit your business model

Capturing exactly how you want to provide your product or services to your customer, allocating the risks, and creating each party’s obligations and rights, is not a simple or quick process. Replicating some other company’s form agreement not only exposes you to risks that you may not be aware of, but potentially violates the other company’s copyright in their agreement, and raises the risks outlined in the other points of this list. Having a customized agreement created for you that aligns with your business processes, mitigates your risks, and addresses the laws that apply in your jurisdiction for your industry is a key component in running a successful technology business.