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i have a question regarding software development contracts.

Take for instance two company, A and B whose primary business mainly involves the reconfiguring and resale of microcomputer system.

Company A and company B had a signed letter agreement which tasked company B to build a video editing system for company A. After the completion of the system, company B will have the rights to own one half interest in the software.

In such a situation, is it a normal contract or is it a software development contract.

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  • Do "software development contracts" have some special legal significance in this jurisdiction? And what jurisdiction is it, anyway?
    – cpast
    Feb 14, 2016 at 5:16
  • In what way is a "software development contract" different from a normal contract that happens to be about software development?
    – Dale M
    Feb 14, 2016 at 8:24

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Dale M is right. A SW Development Contract is just about the same thing as any other Development Contract - difference is that it's about SW development.So if Development Agreement is a "normal contract" a SW Development Agreement is also.

However, a Letter Agreement might not be considered as normal contract (or as binding as a "normal contract")- depends on its terms. It's normally used also as a "pre-agreement" where the Parties define the commonly agreed grounds of the business relationship. In your particular case, the Letter Agreement defines that the Software will be jointly owned by both A an B in equal shares - this is then the common overall understanding of the Parties, but more specific provisions would be in the Parties' benefit, e.g. does B also has licensing rights? will B be entitled to any compensation for each SW license granted by A as a result of its own (A) commercial efforts?

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