Software Development agreements provide a framework for developing customized computer software for specific clients. Although the development life cycle is typically an interactive process, these are distinct phases common to all development efforts. Requirements for functionability must be sufficiently detailed to support coding and implementation. Testing is a third critical phase followed by delivery and acceptance. Ownership of the asset typically stays with the developer, although broad licensing rights responding to the needs of the customer are also routine. Cross licensing fee and royalty arrangements are common where the parties perceive the developed asset as having market value beyond the immediate relationship. Pricing is often on a time and material basis, although fixed estimates and payment cycles related to deliverables are not uncommon.
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