Skip to main content

Do you own the code? What to settle before you sign

You do not necessarily own the software you pay to have developed. Here is what to check in an agreement, and what it means in practice.

By Lars Henrik Netland

Produced with AI tools, edited and fact-checked by the author

Last updated: 29 May 2026

It is not always clear who owns the software you pay to have built. For many businesses this is something they never think about, right up until the day they want to change supplier, develop the solution further on their own, or simply understand what they are sitting on.

Different ownership models

There are essentially three ways ownership of software works:

You rent access. SaaS products and platform-based solutions such as Shopify, HubSpot or Notion. You pay to use the solution, but the code belongs to the supplier. Cancel the subscription and you lose access.

You own the solution, but not the code. Some suppliers build tailored solutions where they retain ownership of the source code. You can use the solution, but you depend on the supplier for all future development and maintenance. If you want to switch, you are in practice starting over.

You own the code. The supplier transfers full ownership of the source code on payment. You can take it to another developer, develop it further in-house, or do whatever you want with it from there.

What to look for in an agreement

Always ask explicitly: who owns the source code once the project has been delivered and paid for?

The agreement should contain a clear clause on the transfer of intellectual property rights. It should establish that you as the client have full ownership of the code produced, from the point the assignment is paid for. Without such a clause it is not a given that the rights belong to you, even though you have paid for the entire development.

What does it mean in practice?

If you own the code, you are never locked to one supplier. You can take it to another developer, use it as the basis for further development, or leave it in a version control system you have full access to.

If you do not own the code, you depend on the original supplier for every change. That can work perfectly well as long as the relationship is good, but it narrows your room for manoeuvre considerably.

How we do it at VargTech

You own the code. It is not an add-on or something we negotiate, but standard in every assignment. If you choose hosting and operations through us, you never have to deal with the technical side. If you want to take the code with you and run it yourself or with another supplier, it is handed over to you at an agreed time.

Related