IT regulation
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Software licenses and other intellectual property licenses are subject to ordinary Danish contract law. Further, software is protected by the regulation of intellectual property right. Thus, the intellectual property right to software is protected by copyright law. The source code to a computer programme is not in itself patentable.
A distinction is made between the transfer of a license - i.e. a limited right to use the particular programme where the licensee only receives limited rights and the programme can be used only in accordance with the license terms supplemented by the Danish Copyright Act - and transfer of the copyright itself to the programme.
To what extent does the freedom of contract apply in relation to IP contracts?
In accordance with the principle of freedom of contract, there are no form requirements to software licenses and the license agreements may generally be negotiated freely between the parties. Under the Danish copyright law, copyrights can be transferred in their entirety, which is not the case in some European jurisdictions.
Does Danish law allow for reverse engineering?
A licensee is granted a limited right of reverse engineering, allowing the licensee to create interoperability between the licensed software and the licensee’s existing software and IT-system by the Copyright Act. This provision is mandatory, and accordingly license agreements which specifically prohibit reverse engineering may be set aside by a Danish court. License agreements therefore generally contain provisions limiting the right to reverse engineering with respect to mandatory legislative provisions.
What should you be aware of when considering outsourcing?
It is important to obtain written permission from all relevant rights holders - i.e. licensors – and that the licensees ensure that their license agreements with suppliers explicitly allow outsourcing.
Businesses within the financial sector are subject to special regulation influencing the terms and conditions for outsourcing.
The above does not constitute legal counselling and Moalem Weitemeyer Bendtsen does not warrant the accuracy of the information. With the above text, Moalem Weitemeyer Bendtsen has not assumed responsibility of any kind as a consequence of a reader’s use of the above as a basis of decisions of considerations.