ip issue

Implied terms in software development contracts – the submarine in the code

The case of Peter Peter Pan’s Backpacker Adventure Travel Pty Ltd and Anor v Eye Jam Interactive[1](Pan), whilst not new, presents an interesting yet not unusual fact matrix which commonly occurs in relation to software development. There was a number of issues for the Court to resolve, primarily in regard to the ownership of the copyright in the code in the absence of a signed contract (IP Issue), and whether a term could be implied into an hourly rate contract (Implied Term) that had the effect of limiting the Respondents hourly rate claim where it was alleged that they had spent more time providing the services than was absolutely necessary.
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