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Software Co Development Agreement Template for Germany

This document is a comprehensive legal agreement governed by German law that establishes the framework for two or more parties to collaboratively develop software. It covers essential aspects including intellectual property rights, development methodologies, resource allocation, and commercialization rights. The agreement incorporates specific provisions required under German civil law and addresses compliance with German and EU regulations, particularly regarding data protection (GDPR), intellectual property rights (Urheberrechtsgesetz), and trade secrets protection (Geschäftsgeheimnisgesetz). It provides detailed terms for project governance, technical specifications, acceptance criteria, and risk allocation between the parties.

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What is a Software Co Development Agreement?

The Software Co-Development Agreement is essential for organizations engaging in joint software development projects under German jurisdiction. It is particularly relevant when two or more entities wish to combine their technical expertise, resources, and intellectual property to develop software products or solutions. The agreement addresses critical aspects required under German law, including detailed provisions for intellectual property rights allocation, data protection compliance, and project governance structures. It's designed to protect all parties' interests while ensuring clear guidelines for collaboration, development methodologies, and commercialization rights. This document is crucial for establishing legally sound partnerships in software development projects, particularly given Germany's specific requirements regarding copyright law (Urheberrecht) and contract law (BGB).

What sections should be included in a Software Co Development Agreement?

1. Parties: Identification of contracting parties with full legal names, registration details, and addresses

2. Background: Context of the agreement, including the parties' expertise and purpose of collaboration

3. Definitions: Defined terms including Software, Background IP, Foreground IP, Confidential Information, Acceptance Criteria

4. Scope of Co-Development: Detailed description of the software to be developed and each party's responsibilities

5. Project Management: Governance structure, steering committee, project managers, reporting requirements

6. Development Methodology: Development approach, sprints, milestones, acceptance testing procedures

7. Intellectual Property Rights: Ownership and licensing of pre-existing and newly developed IP

8. Contributions and Resources: Each party's contributions, including personnel, equipment, and facilities

9. Payment Terms: Cost sharing, payment schedules, expenses, and invoicing procedures

10. Confidentiality: Protection of confidential information and trade secrets

11. Warranties and Representations: Warranties regarding capabilities, IP rights, and compliance with laws

12. Liability and Indemnification: Limitation of liability, indemnification obligations, and insurance requirements

13. Term and Termination: Duration, termination rights, and consequences of termination

14. General Provisions: Standard clauses including governing law, jurisdiction, entire agreement, amendments

What sections are optional to include in a Software Co Development Agreement?

1. Data Protection: Required if personal data processing is involved, addressing GDPR compliance

2. Open Source Software: Include if open source components will be used, addressing licensing obligations

3. Non-Competition: Optional restrictions on competing activities during and after the collaboration

4. Escrow Arrangements: Optional source code escrow provisions for critical software

5. Marketing and Publicity: Optional terms for joint marketing or public announcements

6. Training and Documentation: Include if knowledge transfer or training is part of the scope

7. Maintenance and Support: Include if post-development support is part of the agreement

8. Third-Party Components: Required if third-party software or services will be incorporated

What schedules should be included in a Software Co Development Agreement?

1. Technical Specification: Detailed technical requirements and functionality specifications

2. Project Plan: Timeline, milestones, deliverables, and resource allocation

3. Acceptance Criteria: Detailed criteria for accepting deliverables and testing procedures

4. Commercial Terms: Detailed payment terms, rates, and cost allocation

5. Background IP Schedule: List of pre-existing IP brought by each party

6. Key Personnel: List of key team members and their roles

7. Service Levels: Performance metrics and service level requirements

8. Data Processing Agreement: Required GDPR compliance terms if personal data is processed

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Germany

Publisher

Genie AI

Cost

Free to use

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