Guide · Buying software

Who owns the source code once you have paid for it?

Under Danish copyright law, whoever writes the code holds the rights by default, even when you have paid for it. Without a clear agreement you typically only get the right of use needed for the purpose. So the contract should state that code, design and data transfer to you, and the domain, hosting and app store accounts should be in your name. Here is the difference between ownership and licence, an overview of accounts and an exit checklist.

11 min read · Updated 1 October 2026

A managing director wants to change supplier after four years. The website and booking system work, but development is too slow. When she asks for the code, she is told it runs on the vendor’s platform, that the domain is registered in their name and that the app sits in their Apple account. None of it is illegal. It simply was not written anywhere that it should be otherwise. This kind of thing is almost always discovered at the moment you want to leave.

The answer to who owns the code depends on three things: what the law says by default, what the contract says, and whose name the accounts are in. This guide covers all three, so you can get it written in before you sign, and have a checklist ready if you ever want to switch.

Who owns the source code under Danish law?

Software is protected by Danish copyright law as a work. The starting point is that copyright belongs to whoever created the work. When a software company writes code for you, the rights sit with the software company until they are transferred. If the code is written by the company’s employees, the law has a special rule that rights to computer programs pass to the employer. That rule helps the software company, and it stops there: it does not move the rights on to you as the client.

When an agreement says nothing precise about rights, the transfer is typically interpreted narrowly. You get what was necessary for the purpose you and the vendor had in mind. That usually means you may use the website or system, but it is far from certain that you may modify the code, hand it to another vendor or build a new product on it. That uncertainty is what a good contract removes.

What is the difference between ownership, right of use and licence?

The most common models. The right one depends on whether the solution is built specifically for you or is a shared platform.

ModelWhat you getCan you change vendor?Typical for
Full transferAll rights to the specific code and designYes, freelySolutions built from scratch for you
Transfer plus licenceOwnership of the specific parts, a perpetual licence to the vendor’s general componentsYes, if the licence travels with youAgencies with their own building blocks
Exclusive licenceSole right to use the solution; the vendor owns itDepends on the termsSpecial agreements and licensing models
Platform on subscriptionAccess while you pay; data can typically be exportedData can move; the functionality staysSaaS, website builders, closed CMS
Open-source componentsRight of use under the licence, such as MIT or Apache 2.0Yes, the licence follows the codeNearly all modern software

No model is wrong in itself. A platform on subscription can be exactly right for a standard need, and we cover the trade-off in own system vs SaaS subscriptions. The point is that you should know which model you are buying, and the price should reflect it. If you pay for a system built for you, you should own it too.

What about open source and ready-made components?

Modern software is built on thousands of open-source packages. React, Next.js and TypeScript are themselves open source. You do not own React, and you do not need to: licences such as MIT and Apache 2.0 grant broad rights to use, modify and redistribute the code. What you should own is the code written for you. Some licences, such as the GPL, require derivative code to be shared under the same licence if it is distributed. Ask the vendor for a list of the main licences.

Who should own the domain, the hosting and the other accounts?

In practice the accounts matter as much as the code. If you own the code but the domain, server and app sit on the vendor’s accounts, you still cannot move without their help. The rule is simple: everything that identifies your business or holds your data is created in your name, and the vendor is given access as a user.

The accounts that should be in your name. The vendor is given access as a user or administrator.

AccountWhy it should be yours
Domain (for .dk, registered via Punktum dk)Your address on the web and your email. It is the hardest to get back.
DNSControls where domain and email point. Without access you cannot move.
Code repository (e.g. GitHub)The complete code with history. Your copy if anything goes wrong.
Hosting and cloudWhere the solution and database run, and who pays the bill.
Apple Developer and Google Play ConsoleThe app, reviews and users are tied to the account.
Google Analytics and Search ConsoleYears of traffic and ranking history that cannot be recreated.
Payments, e.g. Stripe or MobilePayThe money goes to you, and the agreement is between you and the provider.
Third-party APIs and email sendingKeys and subscriptions must be transferable without interruption.

Do you also own your data?

Yes, and it should be in the agreement. When the vendor hosts and runs the solution, you are typically the data controller under GDPR and the vendor is the data processor. That requires a data processing agreement describing what the vendor may do with the data, where it is stored and what happens at termination. Also write in that data is handed over in a common format such as CSV, JSON or a database dump, within a fixed deadline. EU hosting makes the transfer rules simpler to comply with. Read more in GDPR for websites and apps.

What should the contract say about code ownership?

  • That all rights to code, design and documentation developed specifically for you transfer to you, and when (for example on payment of each milestone).
  • That you have the right to modify, develop further and let other vendors work in the code.
  • That the vendor grants a perpetual, royalty-free licence to general components included in the solution.
  • That subcontractors and freelancers have transferred their rights, so they can be passed on to you.
  • That domain, hosting, repository and app store accounts are in your name.
  • That the data belongs to you and is handed over in a common format at termination.
  • A list of third-party licences that need renewing, and who pays for them.
  • What is handed over on termination, in which format and within which deadline.

Weak wording

  • “The client is granted a right to use the solution”
  • “The vendor handles domain and hosting”
  • “Source code may be provided by agreement”
  • “Data is exported in the vendor’s format”

Strong wording

  • “Rights to the developed code transfer to the client on payment”
  • “Domain and hosting are registered in the client’s name”
  • “The client has continuous access to the repository”
  • “Data is handed over as CSV or a database dump within 10 working days”
Small differences in wording make big differences when you want to switch.

Use the points above when you read proposals. If they are missing, it is one of the red flags we cover in red flags in a software quote. And ask the questions in the very first meeting; we have a list in questions to ask a web agency.

How do you change vendor? The exit checklist

  1. List every system, account, subscription and integration.
  2. Confirm that you have administrator access to the domain and DNS.
  3. Get access to the repository and check that the latest code is actually there.
  4. Get documentation: setup, environment variables, databases and how the solution is deployed.
  5. Get a complete data export and a database backup.
  6. Transfer or confirm ownership of hosting and cloud accounts.
  7. Transfer apps to your own Apple and Google accounts if they sit with the vendor.
  8. Take over API keys and third-party subscriptions such as payments and email.
  9. Have the new vendor build and run the solution from the handed-over code before you terminate the old one.
  10. Change passwords and remove the old vendor’s access once the move is confirmed.

Point nine is the most important. Code that nobody else can build and run is, in practice, impossible to move, whatever the contract says. So have the new vendor confirm they can set the solution up from scratch while the old vendor is still available for questions.

What does unclear ownership cost?

Picture a typical sequence of events. A company has paid DKK 220,000 for a booking system over two years. The vendor closes, and the code sits on their server with no client access. The alternative is to rebuild, which for a comparable system typically costs DKK 150,000–250,000 and takes several months while the old solution runs on borrowed time. With repository and data access, the same move would typically have taken weeks. That difference is why ownership belongs in the software project budget as a risk.

How do we handle ownership at Ceptiv?

We build everything from scratch in React, Next.js, TypeScript and React Native, widely used open-source technologies that many developers can work in. The client owns both code and data. The plan can be cancelled with 30 days’ notice, and cancelling within the first 15 months carries a one-off fee stated in the proposal from the start. When you leave, you take the code with you. We describe how that works in practice under custom software vs off-the-shelf.

If you have a system today where ownership is unclear, we can help map it and move it; see legacy system modernisation. If you are starting something new, get a proposal where the terms for code, data and accounts are written from page one.

Questions about code ownership

Do we automatically own the code once we have paid the invoice?
Generally, no. Under Danish law the creator of a work holds the copyright, and software is protected as a work. Payment alone typically only transfers the rights needed for the purpose you and the vendor had when the agreement was made. If you want to modify, develop and move the code to another vendor, it has to be in the contract. If the amount is large or the agreement complex, have a lawyer read along.
May the vendor reuse our code for other clients?
It depends on the agreement. Many vendors have general components, tools and integrations they use across clients, and that is part of why they can deliver faster and cheaper. The reasonable arrangement is that you own what is specific to your business and receive a perpetual, free licence to the general parts. If the logic contains trade secrets, add a confidentiality clause that protects exactly those.
What is source code escrow?
With escrow, a copy of the source code is deposited with an independent third party, who releases it to you if the vendor goes bankrupt or breaches the agreement. It is most relevant when you use the vendor’s platform under licence and do not own the code yourself. Escrow carries an annual fee and requires the deposit to be kept up to date. If you own the code and have repository access from the start, you typically do not need escrow, because you already hold a copy.
Who owns the design and the Figma files?
Design is also protected by copyright, and the same rules apply: without an agreement the designer holds the rights and you get a right of use for the purpose. So write in that design files, logos, icons and illustrations made for you transfer to you, and that the source files are handed over. Note that stock photos, fonts and icon packs have their own licences, which typically cannot be transferred. Ask for a list of them, so you know what needs renewing.
Who owns the code if a freelancer wrote it?
The freelancer, unless agreed otherwise. Danish copyright law has a special rule that rights to computer programs an employee creates as part of their job pass to the employer. That rule covers employees only. If you hire a freelancer directly, or your vendor uses subcontractors, the rights must be transferred in writing all the way along the chain so they can actually end up with you. Ask the vendor to confirm it.
What happens to our app in the App Store if we change vendor?
If the app sits on your own developer account with Apple and Google, nothing happens: the new vendor gets access and you carry on. If it sits on the vendor’s account, the app has to be transferred. Both Apple and Google have a procedure for moving apps between accounts, but it has conditions and requires the old vendor to cooperate. It is easiest to create your own accounts from the start; Apple costs USD 99 a year and Google Play USD 25 one-off.

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Dennis Nielsen

Dennis Nielsen

Head of Operations, Ceptiv

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