Who owns the code when an app developer builds it for you?

In the UK, whoever writes the code owns the copyright in it, unless they write it as someone’s employee. Then their employer owns it. If a freelancer or agency builds your app, they own the code by default. You only own it if your contract assigns the copyright to you, in writing and signed by them.

Most founders find this out when they try to leave their developer. By then, fixing it costs far more than a two-page contract would have. Ownership is also about what your app is built on, not just what the contract says.

Here’s how it works, what to put in the contract and what to check at handover. This is general information, not legal advice, so get a solicitor to review any contract that matters to your business.

Who owns the code by default under UK law?

UK copyright law treats software as writing. The Copyright, Designs and Patents Act 1988 counts a computer program as a literary work. That means it’s protected the moment it’s written, with no registration needed.

The Act then says the author is the first owner of the copyright. There’s one big exception. When an employee writes the code in the course of their job, the employer owns it, unless an agreement says otherwise.

Code written with AI tools is a grey area. The Act has a rule for computer-generated works, but the rules are under review. Make sure your assignment covers AI-assisted work too.

Here’s the trap. Freelancers, contractors and agencies aren’t your employees. The government’s guidance on ownership of copyright works says contractors usually keep the copyright unless a contract says otherwise. It adds that the person commissioning the work may only get an implied licence to use it for its intended purpose.

So, by default, you can probably use the app you paid for. You might not be able to change it, sell it or hand it to a new developer without permission.

Does this mean my developer now owns my app?

It might. And the next question founders ask us is worse: do I now need them for my product to survive?

“Imagine building your kitchen… and someone came back to you and said, yeah, that’s fine. You don’t actually own your kitchen, though.”

Nobody would accept that from a builder. With software, it happens all the time, because nobody checks. Use isn’t the same as control, and without ownership you can hit three problems:

• Switching developers. A new team can usually fix errors, but may have no right to build new features on code someone else owns.
• Raising money. Investors check that the company owns its core product. Gaps in the chain of ownership slow deals down or stop them.
• Selling the company. A buyer’s lawyers will ask the same question, with more at stake.

Fixing ownership later means asking the original developer to sign an assignment. That’s easy if you parted on good terms. It’s expensive, or impossible, if you didn’t.

White label, proprietary platform or code you own?

A contract can only assign what the developer actually wrote for you. If your app runs on someone else’s platform, there may be little to assign. There are three common set-ups.

The queue row is the one that bites. Unless you’re the vendor’s biggest customer, your requests wait behind everyone else’s. We’ve seen a mobile network go through this on a white-label platform. The vendor quoted two weeks and a design sign-off process to change a logo. On code you own, that’s a five-minute job.

“It’s like building a house on someone else’s land.”

There’s an honest exception. If your business follows a proven model, like a takeaway that needs a Just Eat-style ordering app, white label can be fine. You aren’t competing on the software. The same goes for low-code tools, where you build by configuring rather than programming. If the product is what makes you different, own it.

What being locked in looks like

A health-tech founder came to us after a year and a half with an agency. The product was built on the agency’s proprietary platform. There were no custom designs and no access to the code. Every conversation came back to scope and budget. Rebuilding was the only way forward.

Lock-in also shows up in smaller bills. One warehouse platform quoted a hefty fee just to expose three fields of data it already held. When you don’t control the system, access costs whatever the owner says.

Founders in this position tell us they feel trapped, and that they’re constantly told nothing can be done. Something usually can, but avoiding the trap is far cheaper than escaping it.

What’s the difference between an assignment and a licence?

An assignment transfers ownership. A licence gives you permission to use something someone else still owns. They’re very different things to have.

The law sets one firm rule. An assignment of copyright isn’t effective unless it’s in writing and signed by or for the person assigning it. A verbal promise that “it’s all yours” doesn’t transfer legal ownership. You may end up in court arguing about it.

The Act also lets a signed agreement assign copyright in work that doesn’t exist yet. That’s why a good contract assigns future code as it’s written, rather than relying on a separate signature at the end.

What should an IP assignment clause cover?

Whether you’re hiring a freelancer or a studio, check the contract covers each of these:

• Everything made for you. Code, designs, documentation, data models and content, including work made with AI tools, not just “the software”.
• The right owner. Usually your company, not you personally. Investors expect the company to hold its IP.
• When ownership passes. Some suppliers assign on creation and others on full payment. Both are common, but know which.
• Background IP. This is the developer’s pre-existing code and tools. You should get a permanent, irrevocable, royalty-free licence to use and change what’s built into your product. It must pass to a buyer or a new developer.
• Open-source components. Most apps use free, public code libraries. Ask for a list with each licence. Watch for “copyleft” licences like GPL or AGPL, which can force you to publish your own code.
• Subcontractors. If the developer uses other people, they must get an assignment from them too. Otherwise the chain breaks.
• Moral rights. Designers and writers have a right to be credited and to object to edits. These don’t cover code, so the contract should waive them for designs and content.
• Further assurance. The developer agrees to sign any further documents needed to complete the transfer.

You can’t own everything in your app, and you shouldn’t expect to. Third-party services like payment providers, maps and AI models stay theirs. What you need is ownership of what was written for you, and clear licences for the rest.

What if your current contract doesn’t mention IP?

Don’t panic, and don’t start with a threat. Most developers who haven’t assigned IP simply never thought about it. Ask them to sign a short confirmatory assignment covering everything they’ve written for you so far. Offer to cover their time to review it.

At the same time, move the repository, hosting and store accounts into your company’s name while relations are good. If the developer refuses to assign, take legal advice before you change suppliers. Your options depend on the exact wording of what you did sign.

What should you ask about IP before you sign?

Put these questions to any developer, in writing, before work starts:

• Will you assign all IP in the work to my company, and when?
• Is this built on your own platform or a white-label product, or written for me?
• What pre-existing code or tools of yours will be in the product, and on what terms?
• Will anyone else work on it, and will they assign their IP to you?
• Will the code live in my repository, and if not, when does it move?
• Can I see your standard contract before we agree scope?

A developer who hesitates over the first question is telling you how the relationship will end. Our help article on access to the code, CMS and analytics sets out what we give every client.

Why do your accounts matter as much as the contract?

Owning the copyright doesn’t help much if you can’t get hold of the code. The contract gives you rights. The accounts give you control. Each of these should end up in your company’s name, with the developer invited as a user. Some builders hold hosting and store accounts during the build and transfer them at launch. We’ll do either, depending on what you want.

A developer working inside your accounts can be removed in minutes. A developer holding your accounts after launch can hold your business hostage. Agree before work starts when each account moves to you.

Do you need source code escrow?

Source code escrow means an independent third party holds a copy of the code. They release it to you if the supplier goes bust or stops supporting the product. It’s a sensible protection for software you license and don’t own, such as a vendor’s platform your business runs on.

If you own the code and it already sits in your own repository, escrow adds little. Fix ownership and accounts first, and only pay for escrow where you can’t.

What should a handover include?

Whether you’re switching developers or the build is simply finished, use this checklist:

• Full source code in your repository, including every branch that matters.
• Admin access to hosting, databases, domains, app stores, CMS and analytics.
• A list of every third-party service, with who pays and where the keys live.
• Documentation explaining how to run, test and deploy the product.
• Any design files, in a format you can open.
• A signed IP assignment, if the contract didn’t already cover it.
• Removal of the old team’s access once everything is confirmed.

If a stalled project is why you’re reading this, our guide to what to do when your agency has stalled goes through the next steps.

When isn’t this worth worrying about?

If you’re using off-the-shelf software, you won’t own the code, and that’s fine. Nobody expects to own Shopify. What matters there is that you can export your data and content.

If you’re building a throwaway prototype to test an idea, keep the legal work light. Still get a short assignment in writing. It costs very little, and throwaway prototypes have a habit of becoming the product.

For everything else, a two-page assignment now is far cheaper than chasing a signature during due diligence. Due diligence is the checking investors and buyers do before they commit money.

How do we handle ownership?

With LaunchPad, you own the code and IP. You get full access to the source code, so another team can pick it up. The details are in our help article, do I own the code and IP?. If you’re still weighing up who to hire, compare the options in agency vs freelancer vs fractional CTO.

Sea Turtles Jamaica, a conservation non-profit, ran turtle tracking on a complex paper system. We replaced it with an app for recording turtle movements, nest locations and individual turtles, plus a ticketing platform for hatchling releases. One goal was making the system easy for new volunteers to pick up. Software only stays useful if people beyond the original builders can run it. Read the Sea Turtles Jamaica story.

If you want a build where the code and IP are yours, see what each tier includes on our pricing page. Then talk to us, and bring your contract questions.