India IP Assignment Check for US Companies
Companies routinely build with Indian developers on contracts drafted for US law. Indian copyright and patent law impose formalities that a "work made for hire" clause does not meet.
Key developmentsUpdated Oct 2026 · 3 items
- Colorado AI Act amended and effective date delayed
SB 26-189 replaces "high-risk AI" with automated decision-making technology, drops impact assessments, voids indemnities for a party's own discriminatory acts, and takes effect 1 January 2027.
Source: Holland & Knight ↗ - DPDP Rules notified, phased over 12–18 months
Data Protection Board set up first; consent-manager and substantive data-fiduciary duties follow over 12 to 18 months.
Source: Mondaq ↗ - Income-tax Act, 2025 enacted, replacing the 1961 Act from 1 April 2026
Royalty and technical-service withholding now sits under new section numbers; update cross-border licence and services contracts that cite the 1961 Act.
Source: IBFD ↗
- Critical · Territory stated as worldwideIf territory is not specified it is presumed to extend only within India (s.19(6)). A US owner needs worldwide stated expressly.
- Critical · Duration stated (full term of copyright)If the period is not stated, the assignment is deemed to be for five years (s.19(5)). State the full term of copyright and any renewals.
- Critical · Foreign filing permission (s.39) built into the filing planAn Indian resident inventor needs written permission from the Controller before filing abroad, unless an Indian application was filed at least six weeks earlier with no secrecy direction. A first US filing without it breaches s.39.
- High · Clause excluding lapse for non-exercise of rightsRights not exercised within one year are deemed to lapse unless the deed says otherwise (s.19(4)). Add an express exclusion.
- Medium · Moral rights: non-assertion to the extent permittedMoral rights under s.57 survive assignment and cannot be fully waived. Add a covenant not to assert them to the extent the law permits.
- Medium · Stamp duty paid on the executed deedStamp the deed under the applicable state stamp law. An unstamped instrument is not admissible in evidence until duty and penalty are paid.
References are to the Copyright Act, 1957 and the Patents Act, 1970. Stamp duty depends on the state where the deed is executed. Use this to find gaps before review, not in place of it.
Desk reference · Ownership formalities, US vs India
| Point | United States | India |
|---|---|---|
| Copyright assignment | Signed writing (17 U.S.C. §204) | Writing signed by the assignor, identifying rights, duration and territory (s.19) |
| Silent on duration | No statutory default | Deemed five years (s.19(5)) |
| Silent on territory | No statutory default | Deemed India only (s.19(6)) |
| Contractor's work | Work made for hire only in listed categories, with a signed writing (§101) | No work-for-hire route for contractors; an assignment is needed |
| Employee's work | Employer is author for work within scope | Employer is first owner under a contract of service (s.17(c)) |
| Patent assignment | Writing; record within three months to protect against later purchasers (35 U.S.C. §261) | Writing, and registered with the Controller to be relied on (ss.68, 69) |
| Moral rights | Limited (VARA, visual art) | Survive assignment and cannot be fully waived (s.57) |
| Filing abroad first | Foreign filing licence (35 U.S.C. §184) | Controller's permission for residents (s.39) |
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Does a US work-made-for-hire clause give us copyright in code written by an Indian contractor?
No. Indian law has no work-for-hire route for independent contractors. You need a written assignment signed by the contractor under Section 19 of the Copyright Act, 1957. If it does not state territory, it covers India only, and if it does not state duration, it lasts five years.
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