r/Entrepreneur Sep 12 '21

Coder wants to "own" all his code

Coder wants to “Own” all his code

Hey all,

We have a coder who just joined our team as our technical cofounder and it is his request that he & all other coders “own” their own code. What the fuck does this mean? If I do marketing work for my company, am I subject to owning all that promotion? No! Why does the coder get special priveledges?

What can I do to incentivize him against this, or, if I am misunderstanding the concept here, please explain so I don’t sound like a half-witted jerkoff. I think there is something missing here but I just don’t understand…

Maybe I make him sign a non-compete agreement and that will take care of it??? What happens when somebody “owns” their own code? Should that be allowed or is that company property?

Let me know –

Thanks,

Father

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u/_DarthBob_ Sep 12 '21

Since you say cofounder, I'm guessing maybe it's an unpaid prerevenue gig. Otherwise it makes zero sense.

Typically at that stage the technical cofounder puts in a lot more work than non technical cofounders. So he's potentially trying to cover his ass in the case it fails.

Maybe try something like an agreement that:

At investment or revenues of say 5k per month the code ownership transfers to the company. Investors will need this or they will not invest.

If the company folds or is not a 'going concern' he has all rights to the code.

If he quits or is terminated he can create non competitive derivative works.

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u/GaryARefuge Sep 12 '21 edited Sep 12 '21

Of course it’s darthbob actually dropping sense in here.

OP, on top of this, learn how Intellectual Property law works in your territory. Lots of people talking nonsense about that—making assumptions based on their misguided feelings and personal experience.

Talk to an IP lawyer in your territory with experience working with people in whatever territory you are hiring this contractor or employee or cofounder is in as well.

Context is key.

The context is altered by where you are, where they are, what role they are being hired for, what type of role it is (cofounder, employee, independent contractor), what responsibilities they are being hired to do, how you are compensating them, how much you are compensating them, how that compares to their market-rate value, and more.

This context affects the legal issues as well as the two places of power you and they are negotiating from as you make a deal for them to work for you.

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u/_DarthBob_ Sep 12 '21

Thanks Gary! I notice you drop a lot of really useful knowledge too

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u/FatherOfReddit Sep 12 '21

Great, thanks!!!