Who owns the Code?
- info2458601
- Apr 18
- 1 min read
Code Developed by Employees: Automatically Owned by the Company?
Under Turkish law, software created by an employee within the scope of their job is typically considered to be owned by the employer. However, this ownership should be explicitly stated in the employment agreement to avoid future disputes.
What to watch for:
Include a clear clause in employment contracts stating that all software and related IP developed during employment belongs to the company.
This applies only to employees — not freelancers or contractors.
Don't forget non-code assets like UI designs, database structures, and documentation — they should also be covered.
Freelancers and Third-Party Developers: The Risky Zone
When budgets are tight, startups often rely on freelancers or outsourced developers. However, unlike employees, freelancers retain ownership of the code they create unless there's a written agreement stating otherwise.
What to do:
Sign both a Service Agreement and an IP Assignment Agreement with all freelancers.
Clearly state that all code and related deliverables are transferred to the company.
Include warranty clauses confirming that the work is original and doesn't infringe on third-party rights.
Open Source Components: Freedom or Trap?
Using open-source libraries helps startups move faster, but license terms can be tricky. For example, GPL-licensedcode may require you to release your own software as open source — not ideal if you're planning to monetize your product.
Recommendations:
Always review the license type and its obligations before integrating open-source code.
Prefer more permissive licenses like MIT, BSD, or Apache.
Keep a detailed log of all third-party libraries used and have them reviewed legally if needed.
Due Diligence: IP Readiness for Investment
One of the first things investors ask during due diligence is: Who owns the IP? If someone who contributed to your codebase isn't covered by a contract, it could create legal uncertainty and even scare off potential investors.
Best practices:
Have signed IP transfer agreements with all past and present developers.
Keep clear records of who developed what and under what terms.
Use private repositories (e.g., GitHub) with access logs and role-based permissions.
Conclusion
IP ownership is one of the most overlooked yet crucial aspects of running a software startup. No matter how innovative your product is, if you don't legally own it, you can't sell it, license it, or raise funding based on it.
The key is to clarify ownership from day one, support it with proper legal documentation, and be mindful when using third-party or open-source tools.



