How can I protect my intellectual property while outsourcing?

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Software development outsourcing is a profitable proposition for businesses, one that is attracting huge attention across industry sectors. PHP and .Net are the most popular and commonly outsourced web technologies. Software development outsourcing requires large amount of information sharing between the client and the vendor. Intellectual property (IP) encompasses trademarks, copyrights,

software data, technical know-how and other confidential information. The protection of IP is a major issue in software development outsourcing. There are many cases of unethical vendors misusing IP by either selling the source code developed for a client to the competitors or by making small changes to the source code and putting their own product in the market. Such incidents jeopardize the competitive advantage gained through outsourcing.

Organizations considering software development outsourcing should bear in mind following points to protect their intellectual property:

  • Share only the mandatory information: Rather than giving a complete access to your database, confidential information and server, it is best to show discretion. Client should regulate the vendor’s access to the information.
  • Confirm the information security policy with the vendor: Before you select a vendor, it is vital to enquire about their information security management policy. The information security management policy should document the rules and regulations followed by the vendor in its premises to protect the intellectual property of the clients. Usually two rules form part of all information security management policy – one, there will be a dedicated data server with audit controls to carry out all development activities and two, all the members of the development team working on a client project will sign a confidentiality agreement.
  • Spell out licensing and ownership of source code before the project begins: It is best to get the vendor to sign an agreement to transfer the full ownership and license for using the source code in part or as a whole. This should be done before the project begins.
  • Study the legal environment of the vendor’s country in terms of IP protection: It is necessary to study the legal system of the service provider’s country to understand laws related to IP enforcement and jurisdiction over contract disputes.

Narola InfoTech is fully committed to safeguarding intellectual property rights and business information of all its clients. In this regard, we have adopted stringent ethical rules and privacy policies across our office premises and applicable to all our employees. As a part of our ‘Hire a Developer’ program, we have undertaken following high-tech measures towards intellectual property protection of our clients:

  • Latest encryption and access sharing technologies are utilized.
  • Signing of intellectual property rights agreements with our clients.
  • Deletion of all traces of code information post project completion.
  • Storing all confidential information in a secure environment.
  • Clear authorship waiver agreement to ensure that the client is the only owner of the code.

Click Hire a Developer to get more details.

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