27.1.1 In most projects, the Contractor will need to use some type of Intellectual Property ("IP") in order to deliver the Service. The Contractor may use IP developed by a third party or by itself. Such IP may have a general application or may be specifically developed for the relevant Project. If the Contractor uses IP developed by and belonging to a third party, the Contractor will need a licence to use such IP.515
27.1.2 The Contract must require the parties not to breach any terms of any licence to use IP and not to infringe the Intellectual Property Rights ("IPR") of any owner of IP used. The Contract must set out what happens if any breach or infringement of IPR occurs.
27.1.3 The Authority does not need to own the IPR, though the Authority may inherit free, or have an option to purchase IPR which is the core to the continuity of the Service (e.g. specially written software). Irrespective of who "owns" the IP, however, the Contract must ensure that the Authority is able to use any IP required to provide the Service if it takes over the Service or employs/procures a third party to perform the Service (e.g. on expiry or early termination of the Contract).
27.1.4 Where IP and IPR are of central importance to the Contract (e.g. in certain defence projects, most notably equipment projects) further refinements and developments of the issues outlined in this Section may be appropriate.516
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515 If the Authority owns IPR that will be required by the Contractor in order to carry out the Project, the Authority should consider how it intends to allow the Contractor to use such IPR during the term of the Contract.
516 See also the ICT Model Services Agreement and Guidance published for OGC on the PUK Website www.partnershipsuk.org.uk.